Your Sports Facilities. Their Programs. Your Responsibility. - Maryland 2016
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Transcript of AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
2 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
AMER SPORTS IN BRIEF 3BUSINESS AND STRATEGY 4MANAGING CORPORATE RESPONSIBILITY 9STAKEHOLDERS AND COMMUNITY ENGAGEMENT 14CONSUMERS AND PRODUCTS 18ENVIRONMENTAL FOOTPRINT 20PEOPLE 23SUPPLY CHAIN 28ECONOMIC IMPACTS 30ABOUT REPORTING 31GRI INDEX TABLE 32
CONTENTS
CONTACT TEA LINDFORS | MANAGER CORPORATE RESPONSIBILITY AND COMMUNICATIONS | P O BOX 1000 | 00511 HELSINKI | FINLAND | TEL +358 20 712 2538 | E-MAIL TEALINDFORSAMERSPORTSCOM
This is a digital version only Please take environmental concerns into consideration before printing this document
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 3
Amer Sports in brief
Amer Sports (wwwamersportscom) is a sporting goods company with internationally recognized brands including Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor
The companyrsquos technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities The Grouprsquos business is balanced by its broad portfolio of sports and products and a presence in all major markets Amer Sports shares are listed on the NASDAQ Helsinki stock exchange (AMEAS)
More information about the company at wwwamersportscomabout-us
Amer Sports in briefAmer Sports sells its products to trade customers (including sporting goods chains specialty retailers mass merchants fitness clubs and distributors) and directly to consumers through brand stores factory outlets and e-commerce In December 2014 the Amer Sports sales network covered 34 countries
In 2014 Amer Sports net sales totaled EUR 22287 million At the end of the year the companyrsquos market capitalization was EUR 18807 million and the Group employed 7630 people Currently the companyrsquos largest geographical markets in terms of sales are the USA Germany France Canada and Japan
AMER SPORTS BUSINESS SEGMENTS AND BUSINESS AREAS
Outdoorbull Footwear Salomonbull Apparel Salomon Arcrsquoteryx bull Winter Sports Equipment
Salomon Atomicbull Cycling Mavic bull Sports Instruments Suunto
Ball Sportsbull Individual Ball Sports Wilsonbull Team Sports Wilson DeMarini
Louisville Slugger
Fitnessbull Fitness Precor
MISSION Amer Sportsrsquo mission is to provide everyone from first-time participants to professional athletes with the worldrsquos best sports and fitness equipment footwear and apparel
VISION Amer Sports vision is to be the industryrsquos leading sports company fueled by authentic brands that inspire athletic achievement and enjoyment
VALUES Amer Sports values are
bull Determined to winbull Team spiritbull Fair playbull Innovation
Read more about Amer Sportsrsquo mission vision and values at wwwamersportscomabout-usour-businessmission-vision-and-values
4 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
Scope 3 - Indirect other Selected upstream scope 3 gross emissions business travel (eg flights trains) paper consumption waste generated inoperations (sent to landfill) water consumption and treatment and fuel and energy related activities (transmission and distribution)
FINANCIAL KEY FIGURES
KEY FIGURES
EUR million 2014 2013Net sales 22287 21365Gross profit 9790 9322Gross profit of net sales 439 436EBIT (excl non-recurring items NRI) 1683 1549EBIT excluding non-recurring items 76 73Non-recurring items -542 -EBIT total 1141 1549Net cash flow after investing activities 535 425Net debtEBITDA excluding non-recurring items 20 22
tCO2 2013 2014 2013Greenhouse gas emissions Scope 1 13420 12084Greenhouse gas emissions Scope 2 20307 20888Greenhouse gas emissions Scope 3 12345 13767
966 Audited factories (Asia EMEA and Americas)
Headcount 2014 2013Outdoor 4966 4742Ball Sports 1537 1549Fitness 932 874Headquarters and shared services 195 165
7630 7330
EMISSIONS
PERSONNEL BY BUSINESS SEGMENT
PERCENTAGE OF PURCHASING VOLUME AUDITED
Business and strategyThe Amer Sports strategy emphasizes faster growth in apparel and footwear excellence in consumer-centric product creation and brand marketing and the strengthening of commercial fundamentals through sales and distribution development The strategic cornerstones of Amer Sportsrsquo development are
bull Clear portfolio roles and business synergies integrated company bull Winning in go-to-marketbull Faster growth in softgoods bull Operational excellencebull Winning with consumers
Read more about Amer Sportsrsquo strategy at wwwamersportscomabout-usstrategy and about the progress in specific focus areas in Amer Sports Financial Review 2014 on pages 2-3
All financial figures are available in Financial Review 2014 and at wwwamersportscominvestors
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 5
Business and strategy
Amer Sportsrsquo technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
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Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
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Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
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Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
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Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
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Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
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Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
2 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
AMER SPORTS IN BRIEF 3BUSINESS AND STRATEGY 4MANAGING CORPORATE RESPONSIBILITY 9STAKEHOLDERS AND COMMUNITY ENGAGEMENT 14CONSUMERS AND PRODUCTS 18ENVIRONMENTAL FOOTPRINT 20PEOPLE 23SUPPLY CHAIN 28ECONOMIC IMPACTS 30ABOUT REPORTING 31GRI INDEX TABLE 32
CONTENTS
CONTACT TEA LINDFORS | MANAGER CORPORATE RESPONSIBILITY AND COMMUNICATIONS | P O BOX 1000 | 00511 HELSINKI | FINLAND | TEL +358 20 712 2538 | E-MAIL TEALINDFORSAMERSPORTSCOM
This is a digital version only Please take environmental concerns into consideration before printing this document
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 3
Amer Sports in brief
Amer Sports (wwwamersportscom) is a sporting goods company with internationally recognized brands including Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor
The companyrsquos technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities The Grouprsquos business is balanced by its broad portfolio of sports and products and a presence in all major markets Amer Sports shares are listed on the NASDAQ Helsinki stock exchange (AMEAS)
More information about the company at wwwamersportscomabout-us
Amer Sports in briefAmer Sports sells its products to trade customers (including sporting goods chains specialty retailers mass merchants fitness clubs and distributors) and directly to consumers through brand stores factory outlets and e-commerce In December 2014 the Amer Sports sales network covered 34 countries
In 2014 Amer Sports net sales totaled EUR 22287 million At the end of the year the companyrsquos market capitalization was EUR 18807 million and the Group employed 7630 people Currently the companyrsquos largest geographical markets in terms of sales are the USA Germany France Canada and Japan
AMER SPORTS BUSINESS SEGMENTS AND BUSINESS AREAS
Outdoorbull Footwear Salomonbull Apparel Salomon Arcrsquoteryx bull Winter Sports Equipment
Salomon Atomicbull Cycling Mavic bull Sports Instruments Suunto
Ball Sportsbull Individual Ball Sports Wilsonbull Team Sports Wilson DeMarini
Louisville Slugger
Fitnessbull Fitness Precor
MISSION Amer Sportsrsquo mission is to provide everyone from first-time participants to professional athletes with the worldrsquos best sports and fitness equipment footwear and apparel
VISION Amer Sports vision is to be the industryrsquos leading sports company fueled by authentic brands that inspire athletic achievement and enjoyment
VALUES Amer Sports values are
bull Determined to winbull Team spiritbull Fair playbull Innovation
Read more about Amer Sportsrsquo mission vision and values at wwwamersportscomabout-usour-businessmission-vision-and-values
4 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
Scope 3 - Indirect other Selected upstream scope 3 gross emissions business travel (eg flights trains) paper consumption waste generated inoperations (sent to landfill) water consumption and treatment and fuel and energy related activities (transmission and distribution)
FINANCIAL KEY FIGURES
KEY FIGURES
EUR million 2014 2013Net sales 22287 21365Gross profit 9790 9322Gross profit of net sales 439 436EBIT (excl non-recurring items NRI) 1683 1549EBIT excluding non-recurring items 76 73Non-recurring items -542 -EBIT total 1141 1549Net cash flow after investing activities 535 425Net debtEBITDA excluding non-recurring items 20 22
tCO2 2013 2014 2013Greenhouse gas emissions Scope 1 13420 12084Greenhouse gas emissions Scope 2 20307 20888Greenhouse gas emissions Scope 3 12345 13767
966 Audited factories (Asia EMEA and Americas)
Headcount 2014 2013Outdoor 4966 4742Ball Sports 1537 1549Fitness 932 874Headquarters and shared services 195 165
7630 7330
EMISSIONS
PERSONNEL BY BUSINESS SEGMENT
PERCENTAGE OF PURCHASING VOLUME AUDITED
Business and strategyThe Amer Sports strategy emphasizes faster growth in apparel and footwear excellence in consumer-centric product creation and brand marketing and the strengthening of commercial fundamentals through sales and distribution development The strategic cornerstones of Amer Sportsrsquo development are
bull Clear portfolio roles and business synergies integrated company bull Winning in go-to-marketbull Faster growth in softgoods bull Operational excellencebull Winning with consumers
Read more about Amer Sportsrsquo strategy at wwwamersportscomabout-usstrategy and about the progress in specific focus areas in Amer Sports Financial Review 2014 on pages 2-3
All financial figures are available in Financial Review 2014 and at wwwamersportscominvestors
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 5
Business and strategy
Amer Sportsrsquo technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 3
Amer Sports in brief
Amer Sports (wwwamersportscom) is a sporting goods company with internationally recognized brands including Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor
The companyrsquos technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities The Grouprsquos business is balanced by its broad portfolio of sports and products and a presence in all major markets Amer Sports shares are listed on the NASDAQ Helsinki stock exchange (AMEAS)
More information about the company at wwwamersportscomabout-us
Amer Sports in briefAmer Sports sells its products to trade customers (including sporting goods chains specialty retailers mass merchants fitness clubs and distributors) and directly to consumers through brand stores factory outlets and e-commerce In December 2014 the Amer Sports sales network covered 34 countries
In 2014 Amer Sports net sales totaled EUR 22287 million At the end of the year the companyrsquos market capitalization was EUR 18807 million and the Group employed 7630 people Currently the companyrsquos largest geographical markets in terms of sales are the USA Germany France Canada and Japan
AMER SPORTS BUSINESS SEGMENTS AND BUSINESS AREAS
Outdoorbull Footwear Salomonbull Apparel Salomon Arcrsquoteryx bull Winter Sports Equipment
Salomon Atomicbull Cycling Mavic bull Sports Instruments Suunto
Ball Sportsbull Individual Ball Sports Wilsonbull Team Sports Wilson DeMarini
Louisville Slugger
Fitnessbull Fitness Precor
MISSION Amer Sportsrsquo mission is to provide everyone from first-time participants to professional athletes with the worldrsquos best sports and fitness equipment footwear and apparel
VISION Amer Sports vision is to be the industryrsquos leading sports company fueled by authentic brands that inspire athletic achievement and enjoyment
VALUES Amer Sports values are
bull Determined to winbull Team spiritbull Fair playbull Innovation
Read more about Amer Sportsrsquo mission vision and values at wwwamersportscomabout-usour-businessmission-vision-and-values
4 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
Scope 3 - Indirect other Selected upstream scope 3 gross emissions business travel (eg flights trains) paper consumption waste generated inoperations (sent to landfill) water consumption and treatment and fuel and energy related activities (transmission and distribution)
FINANCIAL KEY FIGURES
KEY FIGURES
EUR million 2014 2013Net sales 22287 21365Gross profit 9790 9322Gross profit of net sales 439 436EBIT (excl non-recurring items NRI) 1683 1549EBIT excluding non-recurring items 76 73Non-recurring items -542 -EBIT total 1141 1549Net cash flow after investing activities 535 425Net debtEBITDA excluding non-recurring items 20 22
tCO2 2013 2014 2013Greenhouse gas emissions Scope 1 13420 12084Greenhouse gas emissions Scope 2 20307 20888Greenhouse gas emissions Scope 3 12345 13767
966 Audited factories (Asia EMEA and Americas)
Headcount 2014 2013Outdoor 4966 4742Ball Sports 1537 1549Fitness 932 874Headquarters and shared services 195 165
7630 7330
EMISSIONS
PERSONNEL BY BUSINESS SEGMENT
PERCENTAGE OF PURCHASING VOLUME AUDITED
Business and strategyThe Amer Sports strategy emphasizes faster growth in apparel and footwear excellence in consumer-centric product creation and brand marketing and the strengthening of commercial fundamentals through sales and distribution development The strategic cornerstones of Amer Sportsrsquo development are
bull Clear portfolio roles and business synergies integrated company bull Winning in go-to-marketbull Faster growth in softgoods bull Operational excellencebull Winning with consumers
Read more about Amer Sportsrsquo strategy at wwwamersportscomabout-usstrategy and about the progress in specific focus areas in Amer Sports Financial Review 2014 on pages 2-3
All financial figures are available in Financial Review 2014 and at wwwamersportscominvestors
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 5
Business and strategy
Amer Sportsrsquo technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
4 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
Scope 3 - Indirect other Selected upstream scope 3 gross emissions business travel (eg flights trains) paper consumption waste generated inoperations (sent to landfill) water consumption and treatment and fuel and energy related activities (transmission and distribution)
FINANCIAL KEY FIGURES
KEY FIGURES
EUR million 2014 2013Net sales 22287 21365Gross profit 9790 9322Gross profit of net sales 439 436EBIT (excl non-recurring items NRI) 1683 1549EBIT excluding non-recurring items 76 73Non-recurring items -542 -EBIT total 1141 1549Net cash flow after investing activities 535 425Net debtEBITDA excluding non-recurring items 20 22
tCO2 2013 2014 2013Greenhouse gas emissions Scope 1 13420 12084Greenhouse gas emissions Scope 2 20307 20888Greenhouse gas emissions Scope 3 12345 13767
966 Audited factories (Asia EMEA and Americas)
Headcount 2014 2013Outdoor 4966 4742Ball Sports 1537 1549Fitness 932 874Headquarters and shared services 195 165
7630 7330
EMISSIONS
PERSONNEL BY BUSINESS SEGMENT
PERCENTAGE OF PURCHASING VOLUME AUDITED
Business and strategyThe Amer Sports strategy emphasizes faster growth in apparel and footwear excellence in consumer-centric product creation and brand marketing and the strengthening of commercial fundamentals through sales and distribution development The strategic cornerstones of Amer Sportsrsquo development are
bull Clear portfolio roles and business synergies integrated company bull Winning in go-to-marketbull Faster growth in softgoods bull Operational excellencebull Winning with consumers
Read more about Amer Sportsrsquo strategy at wwwamersportscomabout-usstrategy and about the progress in specific focus areas in Amer Sports Financial Review 2014 on pages 2-3
All financial figures are available in Financial Review 2014 and at wwwamersportscominvestors
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 5
Business and strategy
Amer Sportsrsquo technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 5
Business and strategy
Amer Sportsrsquo technically advanced sports equipment footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
6 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Amer Sports sustainability and business
CEOrsquoS STATEMENT
At Amer Sports we are dedicated to sports fitness and an active outdoor life We promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standards Even more importantly we promote sustainability and we always seek to do the right thing
The demand from different stakeholders for sustainability reporting is increasing eg the European Parliament and the Council have reached an agreement on an amendment to the existing accounting legislation to improve the transparency of certain large companies on social environmental and diversity matters This report is our step toward increased transparency and we have collected highlights of our sustainability effort into this report including the guidelines policies and actions to which we are committed
As examples of our major initiatives at the end of 2014 Amer Sportsrsquo third-party audits represented 966 of our total purchases in Asia We also continued the development and implementation of our Restricted Substances list to control hazardous substances used in the production In addition Amer Sports is a bluesignreg system partner with the high commitment of our Apparel brands to use safe and responsible fabrics Amer Sports conducts an annual corporate-wide carbon footprint
assessment and participates in the Investor Carbon Disclosure Program (CDP) and in 2014 the company improved both its disclosure score and performance rating in the CDP
Going forward in line with our company spirit and values we continue to strive for ongoing improvement in the different areas of sustainability and our strategy remains based on what we call our Sustainable Growth Model Annual Growth Annual Profit Improvement and Investing for the Future
Heikki TakalaPresident amp CEO
ldquoWe promote sustainability and we always seek to do the right thingrdquo
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 7
Business and strategy
ldquoWe promote active lifestyles and well-being and comply with the laws regulations as well as safety and quality standardsrdquo
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
8 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Business and strategy
KEY INDUSTRY AND SUSTAINABILITY TRENDSAmer Sports follows industry trends and global megatrends such as demographic and social change as will be explained later as well as climate change and resource scarcity that may have impact on Amer Sports and its brand companies Sporting goods industry trends include changes in the demographic structure and the health and fitness and outdoor trends
Amer Sportsrsquo internationally recognized brands Salomon Wilson Atomic Arcrsquoteryx Mavic Suunto and Precor provide technically advanced sports equipment footwear apparel and accessories that enable users to improve their performance and increase the enjoyment of sports and outdoor activities With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend Amer Sportsrsquo products encourage people to exercise to stay healthy throughout their lives
Amer Sportsrsquo goal is to inspire people of all ages to discover the fun of exercise helping them stay healthy and active throughout their lives Amer Sports believes in the power of sports to help people stay motivated and achieve more in their lives even away from their athletic endeavors
One of the key question is how to help people maintain an active lifestyle and a passion for exercising as sports and exercise are one of the most effective ways to prevent diseases such as cardiovascular diseases and type two diabetes One current trend emphasizes both healthier lifestyles and seeking a balance between work and leisure In developed markets the average life expectancy is rising As people in developed markets enjoy a high standard of living they are more likely to stay active longer and invest in high-quality sporting goods In emerging markets Amer Sports sees growth
opportunities based on the fact that populations are growing and their average disposable income and standard of living are also expected to increase These all connect to demographic and social change as well as health and fitness trends
Outdoor pursuits are often family experiences enjoyed by participants of all ages regardless of gender Outdoor is the largest segment representing 60 of Amer Sportsrsquo net sales
In addition to global megatrends the outdoor apparel industry continues to address the broader trend of sustainability Materials quality and ethics have been a major focus Initiatives such as the Sustainable Apparel Coalition the Zero Discharge of Hazardous Chemicals and the Chemicals Management Working Group have all led major efforts to develop safer materials for use in apparel products The Amer Sports Apparel category is a member of the bluesignreg system partner network which is a solution for a sustainable textile production The past year has also seen the emergence of multiple standards for sourcing ethically produced traceable down To provide examples of how we are actively involved with surrounding communities please read more on pp 15-17
RISKS AND OPPORTUNITIES RELATED TO CORPORATE SUSTAINABILITY
Amer Sports has identified certain risks and uncertainties in its risk mapping process and those that are related to corporate responsibility are described below
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia which exposes it to the political economic and regulatory conditions in that area as well as to a variety of local business and labor practice issues Amer Sports implements its business strategy in a responsible manner Key elements in this effort include
bull DEMOGRAPHIC TREND
bull HEALTH AND FITNESS TREND
bull OUTDOOR-INSPIRED TREND
With the selection of products and initiatives to promote healthy and active living Amer Sports responds to the health and fitness trend
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 9
Managing corporate responsibility
bull Amer Sports is committed to the following policies that guide all of its actions and operations the Companyrsquos Code of Conduct the Ethical Policy for Suppliers and the Social Compliance Policy (See p 12)
bull The Ethical Policy is embedded into the supplier agreement that is signed by suppliers to confirm their compliance with the policy
bull Amer Sports has an extensive third party audit programbull Social compliance audits are conducted by
internationally recognized companies such as BV and UL Responsible Sourcing Inc
bull Amer Sports CSR team in Hong Kong is trained on SA8000 social and environmental system program which has equipped them with essential skills to work with suppliers
Since 2008 Amer Sports has conducted third party audits to help our sourcing partners comply with industry standards and Amer Sportsrsquo expectations The audit process is enforced by factory visits and pre-audit training sessions with factory management to assist them in meeting the company standards In Asia the number of audits conducted until the end of 2014 represented 97 of total purchases
Amer Sports can be affected by unusual or severe weather conditions and climate change is anticipated to increase the amount of unusual weather conditions For example the sales of winter sports equipment is affected by snow conditions and Amer Sports has increased its springsummer product ranges as well as its focus on footwear and apparel which will balance its product portfolio and thus also decrease its dependency on winter and weather conditions Amer Sports participates annually in the Carbon Disclosure Project (CDP) to gain a better understanding about its environmental impact from carbon emissions and achieve cost savings by reducing carbon emissions and also become more efficient ldquoOperational Excellencerdquo is one of the strategic cornerstones as the company focuses on improving its operational efficiency and has initiated several projects in this area In its own operations Amer Sports has a Lean program in place at every factory and distribution center to drive operational excellence (p 22) In Winter Sports Equipment Amer Sports strives for better operational efficiency and flexibility in production as well as a reduction in the complexity of raw materials
Read more at wwwamersportscominvestorsgovernancerisk-management
Managing corporate responsibilityIn this report Amer Sports provides an overview of the policies guidelines and processes that are common to all of its brands and companies All brands have some distinct characteristics that are opened up by providing some case examples Amer Sports sourcing and supply chain management serves all brands and the Asian Sourcing Office in Hong Kong is responsible for the social compliance of suppliers vendor qualification product industrialization contract management price negotiations procurement process optimization and export administration Environmental guidelines provide common instructions to all the brands and each brand is responsible for applying these guidelines in its own operations The Amer Sports Board of Directors has an annual review on corporate responsibility and regularly reviews the areas related to corporate responsibility in its meetings if needed
CORPORATE RESPONSIBILITY ORGANIZATION
Amer Sportsrsquo corporate responsibility has several group guidelines and policies that steer its actions Each brand subsidiary and category is responsible for their implementation as defined in the policies Amer Sportsrsquo sourcing and supply chain management are integrated and have a common organization that serves all brands Each Amer Sports business unit reports to its respective management team on matters of corporate responsibility and the Amer Sports Board of Directors reviews the areas related to corporate responsibility in its meetings
Amer Sports brand companies have Green Committees that are dedicated to the development of environmental issues and there is a company-wide network of corporate responsibility champions representing Amer Sportsrsquo main brands regions and categories
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
10 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
its material aspects that were identified as important to stakeholders and having the biggest impact on the company These include mapping stakeholder expectations on Amer Sports corporate responsibility to create a base for the indicators structure and content of the current responsibility report This was done by reviewing all the available material the company has received about stakeholdersrsquo expectations including queries and ratings analyzing relevant sector media sources and conducting an internal survey that was tailored to people working close to customers investor relations human resources and members of the corporate responsibility network In addition online workshops were arranged
The expectations concerning the implementation of Amer Sportsrsquo corporate responsibility principles in its business operations can be divided in social and environmental areas the key focus being on social issues and on supply chain management The key areas were
EXAMPLE IMPACTS IN THE AMER SPORTS VALUE CHAIN
bull Impacts from raw material supply bull Impacts on a local level (economic
environmental amp social)bull Raw material availability steel aluminum
rubber and oil-based materials
bull Location of production facilitiesbull Human rightsbull Labour bull Environmental aspects in productionbull Design amp Innovation
bull Impacts from transporting goodsbull Operational excellencebull Logistics optimization
PROCUREMENT RAW MATERIALS
PRODUCTION
LOGISTICS
bull Consumer trendsbull Promoting healthy lifestyle amp sportsbull Promoting outdoor activities gt indirect impacts
bull Impacts of product usagebull Customer trendsbull Safe usage of products
bull Product end-of-life impactsbull Impact mitigation (eg waste)
MARKETING amp SALES
CUSTOMERS PRODUCT USAGE
RECYCLING REUSE
Amer Sportsrsquo sustainability communication and development is organized under the Manager of Corporate Responsibility and Communications a part of the Amer Sports Financial organization reporting to the Director of Corporate Communications and Investor Relations The role of corporate responsibility communication includes the coordination management development and communication related to sustainability Furthermore it includes the coordination of the company-wide network of CR champions representing Amer Sportsrsquo main brands regions and categories
SUSTAINABILITY IMPACTS AND FOCUS AREASAmer Sports focus areas in Corporate Responsibility
Amer Sports focus areas in corporate responsibility have been identified in the materiality assessment conducted in 2013 Amer Sports has several initiatives to formulate
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 11
Managing corporate responsibility
ENVIRONMENTALbull Durability of productsbull Active environmental management of operationsbull Minimizing environmental impacts of products
SOCIALbull CR requirements for the suppliersbull Health and safety of products and product compliancebull Maintaining and developing employee competence
These key areas contained several aspects that relate to either the social or environmental area The product related aspects included the health and safety of products product compliance and performance beyond customer and consumer requirements The social aspects included responsible procurement practices promoting healthy living requirements for suppliers and monitoring as well as maintaining and developing employee competence Environmentally central aspects included responsible
materials minimizing the environmental impact of products active environmental management and minimizing waste energy consumption and emissions
CORPORATE RESPONSIBILITY STRATEGYThe trend of healthy living offers Amer Sports many opportunities and shared value with the surrounding society as sports and exercise is at the core of Amer Sportsrsquo business Sports can help people stay motivated and achieve more in their lives even beyond their athletic endeavors
Amer Sportsrsquo corporate responsibility aims to ensure social compliance in the supply chain reduce the environmental impacts of operations by using methods that are both responsible and economically sound ensure the quality and safety of products make products durable while improving efficiency and naturally with the actions related to these areas aims to respond to the expectations of the stakeholders The key elements and objectives of the corporate responsibility strategy are
MATERIALITY MATRIX
HEALTH AND SAFETY OF PRODUCTS AND PRODUCT COMPLIANCE
Environmental Social Minimizing energy consumption and emissions Minimizing waste
DURABILITY OF PRODUCTS
MINIMIZING ENVIRONMENTAL IMPACTS OF PRODUCTSCR
REQUIREMENTS FOR OUR SUPPLIERS
MAINTAINING AND DEVELOPING EMPLOYEE COMPETENCE
ACTIVE ENVIRONMENTAL MANAGEMENT OF OUR OPERATIONS
IMPACT ON THE COMPANY
IMP
OR
TAN
CE
FOR
STA
KEH
OLD
ERS
PROMOTING HEALTHY LIVING
Amer Sports aims to ensure social compliance in the supply chain and reduce the environmental impacts of operations by using methods that are both responsible and economically sound
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
12 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Managing corporate responsibility
bull Promoting an active lifestyle amp well-beingbull Compliance with legal and regulatory requirements
and safety quality and ethical standardsbull Minimizing waste bull Striving for continuous improvementbull Communicating about our actions in this area
POLICIES AND GUIDELINESAmer Sports has several group-wide policies and guidelines to steer its work These include the Code of Conduct Ethical Policy Social Compliance Policy Restricted Substances List (RSL) and Environmental Guidelines Read more at wwwamersportscomresponsibilityguidelines-and-policies
CODE OF CONDUCTThe Amer Sports Code of Conduct (CoC) defines the major principles of its business conduct based on Amer Sports values The content of the CoC focuses on the promises for consumers shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nationsrsquo Universal Declaration on Human Rights CoC aspects include product safety responsible marketing accurate and transparent information a healthy and safe workplace for employees
EDUCATED TO EMPLOYEES Amer Sports Code of Conduct was approved by the Board of Directors at the end of 2010 and launched and communicated to the employees in 2011 All employees were asked to conduct a Code of Conduct test utilizing a web-based e-learning tool 78 of all employees conducted the test by the end of 2012 During 2013 and 2014 the e-learning test was conducted by 376 new employees as part of their onboarding process The Code of Conduct is available in 13 languages In 2013 an additional competition compliance training was arranged for salespeople
Amer Sports has an internal whistleblower program to report misconduct allowing for anonymous reporting These reports are treated confidentially including a non-retaliation policy Reporting on breaches are handled by the Grouprsquos General Counsel
AMER SPORTS ETHICAL POLICY
Amer Sports Ethical Policy sets out the core values of the sourcing operations The company expects its suppliers to operate according to the principles in its Ethical Policy Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards including International Labour Organization (ILO) Standards and the United Nationsrsquo Universal Declaration on Human Rights
The Ethical Policy is available in 25 languages to ensure that supplier employees can familiarize themselves with the content of it in their local languages
The ethical standards contained in the policy are also used as a tool to assist the company in selecting and retaining its suppliers For instance the Amer Sports Ethical Policy prohibits use of child or forced labor allows workersrsquo freedom of association and the right to collective bargaining and forbids discrimination in employment and provides employees with a safe and healthy workplace The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors
and to be prepared to take immediate and thorough steps in cases where ethical performance is questioned
SOCIAL COMPLIANCE POLICY In addition to the Ethical Policy Amer Sports has a Social Compliance Policy which provides suppliers with detailed information on how Amer Sports implements the supplier monitoring program as well as requirements that include but are not limited to the following issues monitoring and documentation child labor forced labor migrant labor compensation and benefits working hours health and safety environmental and chemical safety safe disposal of broken needles discrimination disciplinary practices harassment and abuse freedom of association grievance procedure and sub-contracting policy
AMER SPORTS RESTRICTED SUBSTANCES LIST (RSL)The RSL list defines Amer Sports guidelines for controlling and monitoring hazardous substances in its products The purpose of these guidelines is to ensure that the materials components and finished products supplied to Amer Sports
commitment to reduce environmental impact legal compliance accurate records the avoidance of conflict of interest situations the refusal to engage in bribery and corruption and in violations of intellectual property or confidentiality obligations
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 13
Managing corporate responsibility
PRECOR ENVIRONMENTAL MANAGEMENT POLICYPrecor has an Environmental Management Policy statement that has established objectives to identify the environmental aspects and significant impacts of its business expanding its recycling program leveraging innovative repurposing programs and achieving a zero landfill status by 2017 as well as the reuse of steel and aluminum in the production of machined components
SUUNTO ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM Suunto received the ISO 14001 certificate in 2013 and it is committed to preserving the environment through the responsible design manufacturing and delivery of high quality sports watches instruments and services to outdoor and diving enthusiasts The principles prefer environmentally sustainable materials and suppliers efficiently reducing waste and recycling optimizing the supply chain and saving energy in all of its operations In 2014 Suunto held environmental training and the topics covered efficient recycling and saving energy
or for Amer Sportsrsquo business comply with local laws and regulations regarding toxicology the environment and product safety In addition its purpose is to ensure that suppliers do not intentionally use the substances listed in the RSL comply with best practices and industry standards and aim to improve the environmental impact of the materials that they supply Amer Sports RSL covers notably REACH CPSIA and RoHs legislation Amer Sports has developed specific RSL guidelines to the Footwear category and is in the process of developing guidelines for the Apparel category for controlling and monitoring of hazardous substances in our products
ENVIRONMENTAL GUIDELINESIn the Amer Sports Environmental guidelines the company commits to reducing the environmental impact of its products and operations through the use of methods that are both environmentally responsible and economically sound Amer Sports strives to continuously improve its performance and assess the environmental effects of its decisions It aims to promote and maintain environmentally responsible practices that are beneficial to customers consumers employees and the communities in which its companies operate As environmental initiatives are brand-led here are some examples of these implementations
INNOVATIVE WASTE MANAGEMENT IN ALTENMARKT The Amer Sports Winter Sports Equipment facility in Altenmarkt Austria received recognition for the efficient management of its environmental aspects including waste management awarded by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management (BMLFUW) and the Austrian Water and Waste Management Association (OumlWAV)) for the material recycling of production waste in 2014 For instance the facility receives all its thermal energy from the power plant nearby which is 100 based on biomass and separates wood chips from the other exhaust materials left over from the manufacturing process in order to make them recyclable or burnable for other power plants
PRECOR MANUFACTURING FACILITY HAS LEED GOLD STATUS Precorrsquos strength equipment manufacturing facility in North Carolina has LEED (Leadership in Energy and Environmental Design) (gold status) for Commercial Interiors It has been operational since early 2010 and it has a reduced energy usage of 40ndash50 percent compared to the previous facility The company worked together with the architects developers and contractors to ensure the highest possible energy conservation in the new facility
AMER SPORTS HQ AND AMER SPORTS FINLAND PREMISES APPLY FOR BREEAM CERTIFICATIONThe Amer Sports HQ and Amer Sports Finland sales company moved to new premises during 2014 The building has been renovated by preserving the old one and it respects environmental values in many ways The renovation work has been assessed against BREEAM (Building Research Establishment Environmental Assessment Method) certification and it it reaches the Very Good level taking into account several environmental aspects of the building such as landscape and ecology pollution materials energy waste water and transport
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
14 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
Stakeholder and community engagementAmer Sports key corporate responsibility stakeholders were identified when the first assessment for the materiality matrix was conducted in 2013 The key stakeholders are presented in the chart below Amer
Sports and its brand companies have received several enquiries related to corporate responsibility and these enquiries have been collected and assessed for further actions
STAKEHOLDER ENGAGEMENT
Stakeholder group
Engagement activities Identified issuesActions and responses resulting from engagement
Customers bull Customer enquiriesbull Daily operations and
contactsbull Feedback through daily
interactionsbull Customer interviews and
discussions
bull Customer survey results identified issues eg relating products group or brand related sustainability policy issues customer requirements and expectations
Amer Sports has renewed its Ethical Policy in 2013To ensure the product compliance Amer Sports has implemented its Restricted Substances List to its suppliers
Investors bull Roadshowsbull AGMbull Investor meetingsbull ESG assessment reports
bull Interest in the reportingbull Interest in the commitment to
multinational guidelines
Amer Sports started to prepare the sustainability reporting Amer Sports has explored the alternatives for the commitment to the guidelines
Personnel bull Employee representation (committees)
bull Employee surveysbull Informal forums and
meetingsbull Performance and
development discussionsbull Training sessions
bull Issues raised by employees through various channels eg regarding occupational well-being management and remuneration
Amer Sports has organized participation in special days involving personnel
Suppliers bull Daily contacts and meetings
bull Supplier guidance and policies
bull Auditsbull Membership in industry
organisations
bull Problems within the supply chain eg HR issues audit results streamlining of the supply chain supply chain collaboration needs
Amer Sports has arranged training on HR issues as well as LEAN production training for selected suppliers Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
Authorities bull Regular contacts with the relevant authorities
bull Development actions towards authorities
bull Eg breaches of laws and regulations possible findings from required audits and legislative development
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix
NGOrsquos bull Regular meetings with representatives
bull Common development projects
bull What issues concern NGOs eg usage of specific materials energy and water consumption and issues at production sites
Amer Sports started internal projects to prepare non-financial reporting eg identified its materiality matrix Amer Sports has renewed its Ethical Policy and implemented the Restricted Substances List
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 15
Stakeholder and community engagement
MEMBERSHIPS IN INDUSTRY COLLABORATIONAmer Sports and its brand companies participate in several industry-wide initiatives including
Amer Sports and its brands participate actively in the conversation and development within the industry Salomon and Arcrsquoteryx are members of the European Outdoor Group and participate in its Sustainability working group as well as its Sustainability Advisory Council
Amer Sports Winter and Outdoor located in Utah USA and Arcrsquoteryx are members of the Outdoor Industry Association (OIA) a trade association for companies in the outdoor recreation business that provides services for manufacturers distributors suppliers sales representatives and retailers in the outdoor industry Some of the key issues shared at the OIA are restricted substances used in apparel products and climate change The OIA works to raise industry standards and represent member interests in the legislativeregulatory process among other things
Outdoor Sports Valley
Salomon is one of the founding members of the Outdoor Sports Valley (OSV) a French Outdoor Industry Organization actively cooperating together with other outdoor brands in several environmental initiatives such as a common repair center for apparel In addition OSV also develops environmental actions in Annecy France for instance when organizing events Salomon focuses on several aspects to make these events more environmentally-friendly in order for them to be considered eco-events
The ldquoInnovation amp Sustainable Developmentrdquo committee of the OSV gathers the actions to encourage projects of innovation and sustainable development and fosters interaction Since 2012 OSV has been widening its network of scientific and technical structures in order to encourage innovation within the outdoor industry
MEMBERSHIPS TO IMPROVE WORKING CONDITIONSFair Labour Association
Wilson is a category licensee B member of the Fair Labour Association As Wilsonrsquos parent company Amer Sports is also monitored by FLA in its compliance system and an FLA representative reviews Amer Sports CSR monitoring system and how Amer Sports fulfills their criteria
International Labour Organization Better Work in Cambodia
Since 2013 Amer Sports has engaged with the International Labour Organizationrsquos (ILO) Better Work (BW) program in Cambodia Amer Sports is a buyer participant of the BWrsquos country program ndash Better Factory Cambodia (BFC) and can access the BWrsquos assessment and progress report at their online portal All assessments are conducted in compliance with equivalent national laws and international standards with guidance on interpretation from the relevant national Ministries and the ILO Amer Sports also participates in the buyersrsquo forums to engage with Better Work on social audit issues Better Work is a well-recognized non-governmental organization (NGO) in the industry with many international buyers engaged in the program
REDUCE CARBON EMISSIONS
A group-wide initiative reporting to Carbon Disclosure Project (CDP)
Amer Sports participates in environmental initiatives and is committed to reducing the environmental impact of its operations through the use of methods that are both responsible and economically sound Amer Sports has established an ongoing corporate-wide process to evaluate its annual carbon emissions and annually participates in the Carbon Disclosure Project (wwwcdpnet) by disclosing its carbon emissions concerning its own operations In 2014 Amer Sports scored 84 disclosure points and earned a C as a performance rate The annual global carbon footprint includes data on energy travel waste paper refrigerants and also water
Climate Alliance
Atomic is a member of the Climate Alliance a European network of local authorities committed to the protection of the worldrsquos climate As a sports brand with roots in winter sports Atomic values the work towards preserving glaciers and cold winters The Climate Alliancersquos European Secretariat its Brussels Office and national coordination offices support the member cities and municipalities
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
16 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Stakeholder and community engagement
in their endeavor to protect global climate They make recommendations provide aid and tools for local climate change policies (eg local climate plans individual themes and measures CO2 monitoring etc)
Sustainable Ogden
Amer Sports Winter and Outdoor is a member of the Mayorrsquos Sustainable Ogden Committee The major focus of the committee is to reduce carbon emissions and improve the air quality in Utahrsquos high adventure recreation capital
EAUNEIGEamp GLACE
sous lrsquoeacutegide de la fondation de France
Fondation Eau Neige amp Glace to preserve water
Salomon is a member of Fondation Eau Neige amp Glace The foundation was established in 2009 to improve the management of mountain water resources
Mountain Riders
Salomon is a member of Mountain Riders a French non-profit organization which aims to raise awareness on environmental issues and promote sustainable development in the mountains
European Outdoor Conservation Association (EOCA)
Salomon is a member of the European Outdoor Conservation Association a group of businesses in the European outdoor industry that have come together to raise funds to put directly into conservation projects worldwide - to give back to the great outdoors Read more at wwwoutdoorconservationeu
SUSTAINABILITY INDICES AND AWARDS
bull Amer Sports is included in the OMX GES Sustainability in Finland index and part of the Kempen SRI Universe
bull Amer Sports participates annually in the Dow Jones Sustainability Index assessment
bull Arcrsquoteryx received a recognition as one of Canadarsquos Greenest Employers due to its active participation in the annual Bike to Work Week and Commuter Challenge
bull Several recognitions for Precor - King County (Washington State) ldquoDistinguished
Business in the Greenrdquo Award King County Industrial Waste ldquoGold Compliancerdquo Award King County ldquoModel Metal Working Fluid Management Programrdquo designation
- Washington State Department of Ecology Metal Machining Sector ldquoBest Practicerdquo recognition Washington State Labor amp Industries Model Ergonomic program ldquoErgonomics-in-Actionrdquo award
SALOMON FOUNDATION Since 1999 the Salomon foundation has worked to facilitate the daily lives and social and professional reintegration of athletes and mountain workers who are physically disabled due an accident or illness It is the Salomon Foundationrsquos way of thanking mountain professionals and athletes for their contributions to improving sports equipment and facilitating sporting activities httpwwwfondation-salomonorg
COMMUTING WITH LESS CO2
Salomon cooperates with MouvrsquoEco an association consisting of five other companies located in the area of Annecy close to the Salomon and Mavic offices The aim is to encourage employee commuting with less CO2 when travelling between home and workplace MouvrsquoEco organizes three events every year and these events may include initiatives such as maintenance of bicycles exhibition of electrical vehicles and explaining their advantages promoting the use of public transport and car sharing
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 17
Stakeholder and community engagement
WILSON AND PERSONAL HEALTH INVESTMENT TODAY Personal Health Investment Today (PHIT) is a cause and campaign dedicated to increasing physical activity and fitness to improve the health of America PHIT American was launched in 2013 with the support of 100 companies and organizations working together toward this one goal Wilson has provided expertise and financial support to PHIT to help subsidize its school-based programs designed to increase the physical activities offer to children
PRECOR CARES PROGRAM FOR THE YMCA At Precor we believe that tomorrow will be even better because of what we do today Our fitness equipment - from the first Low Impact Treadmill which was introduced in 1989 to the first Elliptical Fitness CrosstrainerTM (EFXreg] introduced in 1995 to the first Adaptive Motion Trainerreg (AMTreg) which debuted in 2007 - has enabled thousands of individuals to pursue a healthier tomorrow
Precor aims to enable meaningful change in peoplersquos lives through physical fitness which aligns perfectly with the YMCArsquos commitment to strengthening communities through youth development healthy living and social responsibility That is why we support the YMCA through the Precor Cares program
Since 2012 Precor Cares has helped to advance the YMCArsquos mission of improving the health and wellness of communities across the United States In 2014 Precor raised over $150000 in grants that will be awarded to local YMCAs across the country to support the implementation of the YMCArsquos Healthy Eating and Physical Activity (HEPA) standards
PROMOTING SPORTS AND HEALTH
AMER SPORTS HQ AND LIIKE TO INCREASE SCHOOL ATTENDANCE THROUGH SPORTSAmer Sports cooperates with LiiKe ry a Finnish non-governmental organization to increase school attendance through sports
The goal of the cooperation is to develop primary education gender equality health school attendance and increased opportunities for secondary education in Tanzania through sports In 2014 Amer Sports and LiiKe continued their seventh year of developing sports and education in Tanzania Read more at wwwliikefien
SPORTS AFTER SCHOOL LESSONS Amer Sports participates in supporting a Finnish non-profit organization called WAU by donating uniforms for sports instructors WAU dedicates to arrange sports and exercise programs to school children making sure that all school children can afford enjoying sports and make it feasible at schools before or after lessons
WILSON AND THE BREAST CANCER RESEARCH FOUNDATIONWilson is the Official Sporting Goods Equipment and Apparel Sponsor of the Breast Cancer Research Foundationreg (BCRF) For more than 17 years Wilson and BCRF have worked together to raise awareness of breast cancer globally and raise funds to support cutting-edge research Wilson is specifically funding research on how nutrition and exercise affect breast cancer prevention and development
In 2004 Wilson developed the HOPE line as an extension of this partnership Over the years the HOPE line has grown to include men and womenrsquos products all of which feature the BCRF Pink Ribbon to continually grow consumer awareness
To date Wilson has donated nearly $3 million to fund BCRFrsquos global breast cancer research efforts and support their mission of finding a cureRead more examples at wwwamersportscom
responsibilitysocialcitizenship-and-community
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
18 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Consumers and products
Consumers and products Amer Sportsrsquo strategy emphasizes excellence in consumer-centric product creation Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers In line with Amer Sportsrsquo strategy the company wants to provide consumers with head-to-toe solutions ldquosurrounding the consumerrdquo
To ensure product compliance Amer Sports and all its brands are dedicated to the companyrsquos Restricted Substances List (RSL) policy which has been implemented throughout to the supply chain in 2013 Amer Sports RSL 01 contains the following environmentally relevant information and requirements for the suppliers
As a company Amer Sports implements its business strategy in an ethically socially and environmentally responsible manner and ensures that its products are innovative and safe Amer Sports chooses business partners who are committed to fair and sustainable business
APPAREL AND GEAR CATEGORYAmer Sports Apparel and Gear Category is involved in several industry initiatives focused on materials compliance and ethics First of all we actively participate on the steering committee of the Chemicals Management Working Group At the product level we continue to be a bluesignreg system partner and use this platform of inputs screening in our materials compliance program The apparel brands have also begun sourcing down that is certified certified according to ethical production standards primarily via the Responsible Down Standard managed by the Textile Exchange In addition the apparel brands have begun evaluating the Higg Index an industry sustainability metrics platform developed by the Sustainable Apparel Coalition using the index to assess internal practices and facilities and to benchmark against industry leaders
The bluesignreg system is a solution for sustainable textile production and it eliminates harmful substances right from the beginning of the manufacturing process and sets and controls standards for environmentally friendlier and safe production
Therefore Amer Sports requires that its business partners will make commitments on respecting and adhering to its policies and ensure that materials components and finished products supplied to Amer Sports or for its business are in full compliance with local laws and regulations regarding toxicology environment and product safety
In addition when sourcing the materials from animals Amer Sports does not accept any unnecessary pain suffering or injury caused to these animals whether wild or domesticated ie farmed Additionally Amer Sports does not source material from any endangered or threatened species Amer Sports will accept only leather or leather parts that originate solely from animals which have been used for meat production in its products wool or wool parts that originate solely from sheep which have not been subject to mulesing and down that has been plucked from birds that are already dead bred and slaughtered primarily for animal production
ARCrsquoTERYX AND PRODUCT DURABILITYLifecycle thinking guides our approach to designing the worldrsquos most durable outdoor gear Arcrsquoteryx strives to make the worldrsquos best performing longest lasting outdoor gear Durability is the cornerstone of our design philosophy Lifecycle thinking guides our approach to product durability We look at our operations as a system spanning the creation of the materials we source the production processes used in manufacturing the distribution steps in our supply chain stores and retail operations product use and care and end-of-life We seek to influence this cycle to reduce energy resource and material consumption while enhancing product quality Extending the useful life of the product effectively diminishes the impacts associated with production by spreading them over more years External Life Cycle Assessment (LCA) studies support this conclusion finding that product and transportation of a representative garment comprise approximately 65 of the environmental impact over the garmentrsquos useable life and that extending garment lifetime had a greater effect than seeking to reduce the impacts associated with the production sub-processes
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 19
Our stakeholder and community engagement
Through continuous research and development Amer Sports seeks to develop new and better sporting goods that appeal to both consumers and trade customers
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
20 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
SUUNTO AND CONSUMER ELECTRONICSWe emphasize the importance of creating durable products and solutions that provide authentic benefits for their users We strive to design products that will last for several years of outdoor use and extend the product lifetime by providing an extensive repair service even after the warranty period High quality repairability and minimized power consumption are important drivers for our product design In addition to product repairs we also support our customers via email phone and in social media to ensure that they get the full benefits of our solutions
FITNESS ndash TAKING CARE OF CUSTOMER SERVICEbull 97 of Precor service requests are dispatched
within 24 hoursbull 85 of service issues are resolved within 72 hoursbull Off-the-shelf part availability is 97bull Over 90 of our customers rated their service
experience as good better or excellentbull Our cardio and strength products have a historic
uptime of 96
FSC CERTIFIED WOODOne of the key raw materials of skis is wood and most of Amer Sports wood originates from Germany Austria and Switzerland All the key suppliers are FSC (Forest Stewardship Council) certified
QUALITY CONTROL
Quality specifications and quality assurance are of prime importance to Amer Sports production processes Products are subjected to quality control tests before production commences and also before they are sold to customers Quality control tests are also carried out during the production processes to ensure that the items meet the Grouprsquos quality requirements
In general quality control is handled by Amer Sportsrsquo own quality control personnel who carry out extensive testing and inspection procedures The Group also requires its third-party suppliers to arrange for specific tests to be performed at each manufacturing site In Asia the companyrsquos sourcing office subjects outsourced production to close supervision to ensure that all products and components meet the specifications and quality control standards of the respective brand Should items be returned or recalled the products involved are analyzed and investigated and Amer Sports liaises with third-party suppliers to ensure that related problems do not subsequently occur
In most countries in which Amer Sports operates the Group companies provide product warranties based on local legislation The scope and terms of each warranty varies in different geographic markets and product categories
Suunto has ISO 9001 certified Quality Management system
Environmental footprintTo guide its Group-wide actions Amer Sports has created environmental guidelines to outline the commitment to reduce the environmental impacts of operations through the use of methods that are both responsible and
economically sound In addition Amer Sports brands are responsible for their environmental actions based on the common environmental guidelines
Unit 2014 2013 Comments
Direct energy consumption
Non-renewable
Fuel oil kWh 1143310 1776005
Natural gas kWh 38300113 35089772
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 21
Environmental footprint
Intensity Ratios (Gross Emissions)
2009 2010 2011 2012 2013 2014
Emissions per eurom Revenue (tCO2eeurom)
2761 2542 2455 2261 2192 XX00
ENERGY AND CLIMATEAmer Sports annually assesses its corporate-wide carbon footprint measurement and participates in the Carbon Disclosure Program (wwwcdpnet) By participating in CDPrsquos Climate Change program companies worldwide can gain more understanding on their carbon emission
sources and estimate how to cut down emissions and improve efficiency Amer Sports has participated in the CDP since 2011 and has been able to achieve steady improvement both in disclosure score and performance rating In 2014 Amer Sports disclosure score was 84 and performance rating achieved a level C
Unit 2014 2013 Comments
Renewable
Wood biomass kWh 6029608 7836000
Indirect energy consumption
Electricity kWh 52145765 55181773
Heating kWh 2740262 3168357
Cooling kWh 0 0
Steam kWh 0 0
Total energy consumption within the organization
kWh 100359058 103051907
Total non-renewable energy kWh 85706639 78986900
Total renewable energy kWh 14717411 19524500
Reduction of energy consumption kWh na na
Emissions
Greenhouse gas emissions Scope 1 tCO2 13420 12084
Greenhouse gas emissions Scope 2 tCO2 20307 20888
Greenhouse gas emissions Scope 3 tCO2 12345 13767
The scope 3 includes categories of business travel purchased goods and services (paper and water) fuel- and energy- related activities and waste generated in operations
Waste
Recycling amp reuse t 5128 5094
Composting t 34 50
Incineration (mass burn) t 861 572
Landfill t 2086 2136
Hazardous waste t na na
Total amount of waste t 8109 7852
Waste recycled or reused 63 65
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
22 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Environmental footprint
Amer Sports has several carbon reduction initiatives and as a result of these efforts Amer Sportsrsquo carbon intensity has fallen every year since 2009 In practice this means that the operations have become more efficient
There are several ongoing actions and initiatives to reduce for instance energy travel and waste varying from day-to-day office practices to examples from manufacturing facilities The most common improvements in the office practices include recycling of waste reduction of the actual numbers of printers by using shared printers as well as printed papers including targets to achieve a paperless office as well as adopting lightning sensors and increased use of meeting services provided by Microsoft Lync used for the most of the teleconferences reducing necessity to travel As an example of actions for energy savings Wilsonrsquos Ohio manufacturing facility has installed new windows and siding
NEW HEATING SYSTEM ASSEMBLED IN BULGARIAIn the end of 2013 the Amer Sports Winter Sports Equipment facility in Bulgaria Chepelare replaced its old heating system burning oil and replaced it with a new heating system using natural gas As a result the annual energy consumption will fall by 30 with total of 1640 MW and at the same time carbon emissions will be reduced by approximately 190 tonnes
TRAVEL POLICYAmer Sportsrsquo Travel Policy applies to all employee levels in all business areas and entities The key elements of the global travel policy are to estimate the necessity of travel and consider alternative communication methods
MINIMIZING WASTEReducing waste is relevant for Amer Sportsrsquo business in order to achieve cost savings while reducing environmental impact This is supported by all of the lean activities in its operations as Amer Sports has a Lean program in place in every factory and distribution center Amer Sports and its brand companies have several initiatives to reduce waste
One of the objectives of the Precorrsquos Environmental management system is to achieve zero landfill status by 2017 As a part of this Precor has initiatives to reuse raw materials such as selling excess pieces of metal for recycling
The Amer Sports Winter Sports Equipment facility in Altenmarkt was awarded for its exemplary waste management by the Austrian Federal Ministry of Agriculture Forestry Environment and Water Management and the Austrian Water and Waste Management Association The award is given to companies that are particularly innovative in the area of environmental protection and ecology The criteria included material recycling of production waste in the ski industry and the Altenmarkt facility is able to shred 48 of the total waste for material recycling in chemical industry Amer Sports tracks the progress on the environmental area by the annual group-wide assessment and gathers feedback on all the initiatives concerning environment Waste generated in the operations has been reduced by 11 since 2012
In 2014 Wilsonrsquos Ohio manufacturing facility started to recycle its leather shavings and ship them to a recycling company for further use This saved 31500 lbs of leather that would have ended up in a landfill
Precor upgraded its powder coating application equipment and was able to reduce spray-to-waste volumes in 2014 Through training and increased recyling awareness Precor has improved its diversion rate (total diverted tonnagetotal tonnage) by 6 percentage points from 2013 to 2014
Precor evaluates its product packaging as an ongoing activity For instance in 2014 Precor implemented returnable packaging with two of the plastic suppliers and components on its commercial treadmills and uses returnable pallets for specific stamped sheet metal components Also there are returning plastic bags and cardboard to plastics vendors to reuse on plastic parts used on commercial bikes
OPTIMIZING DISTRIBUTION AND TRANSPORTATION Amer Sportsrsquo objective is to optimize the transportation routes and methods as well as loading containers more
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 23
People
PeopleAmer Sports people are located in all continents and regions On December 31 2014 Amer Sports employed people in 34 countries and had over 7500 employees
Amer Sports people are working with our sports brands
2014 2013Personnel
Personnel at year end 7630 7330Average personnel 7505 7370
Personnel by business segment (headcount)Winter and Outdoor 4966 65 4742 65Ball Sports 1537 20 1549 21Fitness 932 12 874 12Headquarters and shared services 195 3 165 2
Personnel by functionManufacturing and sourcing 2243 29 2219 30Sales and distribution 3184 42 2881 39Support functionsshared services 931 12 916 12RampD 680 9 691 9Marketing 592 8 623 8
Personnel by countryUSA 1735 23 1633 22France 1143 15 1144 16Canada 820 11 734 10Austria 706 9 706 10Bulgaria 555 7 573 8Finland 417 5 423 6Germany 393 5 370 5China 362 5 320 4Japan 220 3 189 3
in different areas of expertise We have a wide range of professionals in various disciplines like sales marketing research and development manufacturing supply chain sourcing and support functions
efficiently to achieve cost savings and carbon emission reductions The company also seeks ways to reduce packaging material usage and the carbon emissions of the distribution centers
Amer Sports also works towards the standardization of containers to maximize efficiency and uses centre of gravity analysis to identify the best location for distribution centres to reduce transportation These primarily have an effect on scope three (all indirect emissions that occur in the value chain of the reporting company) emissions which have been tracked on distribution and transportation since 2013
Amer Sports has five main regional distribution centers which support several brands Uumlberherrn in Germany Lyon in France Altenmarkt in Austria and Irvine in the UK serving the EMEA region and the Nashville facility in Tennessee serving the Americas
Amer Sportsrsquo logistics facilities also include factory-specific warehouses and regional or country-specific warehouses Products are transported from the distribution hubs to trade customers and to Amer Sportsrsquo own stores Third-party transportation companies are employed to transport the Grouprsquos products by truck rail plane and sea
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
24 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
People
2014 2013UK 170 2 185 3Russia 179 2 185 3Poland 161 2 138 2Mexico 100 1 83 1Swizerland 83 1 82 1Taiwan 79 1 77 1Australia 65 1 67 1Italy 68 1 66 1Czech 58 1 61 1Korea 61 1 57 1Spain 64 1 55 1Other countries 191 3 182 2
Personnel by regionEMEA 4141 54 4125 56Americas 2662 35 2455 33Asia Pacific 827 11 750 10
Hourly and salaried personnelHourly 29 28Salaried 71 72
Personnel by gender () Male 61 61Female 39 39
Age diversity by age group 18-25 years 9 926-35 years 29 2936-45 years 28 2846-55 years 23 23Over 55 years 10 10
Employees trained for Code of Conduct () 78 78
0
5
10
15
20
25
30
Over 56 years
46-55 years
36-45 years
26-35 years
18-25 years
AGE GROUP
Amer Sports age diversity 2014
9
2928
23
10
Amer Sports headcount development 2014ndash2011
0
1000
2000
3000
4000
5000
6000
7000
8000
EMEAAmericasAsia Pacific
2013
750
2 455
4125
2014
827
2 662
4141
2012
685
2 366
4 135
2011
564
2 312
4 185
Amer Sports age diversity 2014 Amer Sports headcount 2011-2014
Read more about People on httpwwwamersportscomcareers
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 25
People
PEOPLE VISION AND STRATEGY
Amer Sports People Vision highlights our passion and professionalism that enable great performance and business success We believe that proud and capable people perform in the right roles led by great leadersAmer Sports Human Resources proactively partners with our leaders to attract retain develop and motivate our employees and create a high performing working culture Amer Sports Human Resources enables business success drives global people processes and tools and supports capability building in the organization
1 Organizational and personal development
At Amer Sports we want to ensure the continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategy Capability building at Amer Sports is implemented by ongoing strategic reviews discussions and the exploration of options regarding organizational and individual development
2 Performance management
Performance management establishes the basis for our people management and at Amer Sports it is called Coaching for Success Its cornerstones include setting clear goals evaluating performance and fostering development planning with our people
3 Employee engagement
The Amer Sports employee engagement survey Pulse Meter strengthens organizational dialogue and gives direction to organizational and personal development It focuses on key issues and drives our engagement and satisfaction Survey questions are framed in terms of Amer Sports values and capabilities The survey results include benchmark data and offer important information on how Amer Sports compares to other similar global companies
EXAMPLES ON EMPLOYEE DEVELOPMENT Wilson has active organizational talent management and professional development programs For example bull The Company hosts guest speakers on honing key
business skills such as negotiating innovation creative thinking and collaboration
bull Wilson also holds lunch-and-learn activities for team members with functional area leaders and managers to share career experiences and best practices
bull The Company provides internal training sessions to increase team experience expertise and productivity including SAP Excel and Finance overviews
OCCUPATIONAL SAFETY AND HEALTHAmer Sports manufacturing facilities work to continuously improve the safety and working conditions for all employees Occupational Safety and Health Act (OSHA) standards are followed to ensure the workplace is free from any recognized hazards All near-miss incidents accidents and reported unsafe conditions are investigated Any root cause is identified and corrective and preventative actions are implemented to avoid any future occurrence
Precorrsquos industrial hygiene program focuses on monitoring the workplace to ensure that employees are not being overexposed to chemical biological or other environmental stressors such as heat light and noise During regular cell meetings production employees supervisors and manufacturing engineers combine their efforts to create more ergonomic tools and workstations Recent actions that have led to improved working conditions include replacing air tools and lowering air pressures to reduce noise at the source
ldquoAt Amer Sports we want to ensure continuous organizational and personal capability development by identifying strategic development needs based on our corporationrsquos vision and strategyrdquo
4 Resourcing
Strategic resource management plays a key role in our company Amer Sports resource management develops organizational designs roles and responsibilities according to Amer Sportsrsquo strategy and direction This creates opportunities for both organizational and personal growth and means that the human capital resources are utilized and allocated to meet the demands of a dynamic organization
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
26 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
WILSONWilson offers team members a variety of wellness program opportunities including free on-site health club membership at its Chicago headquarters office and participation in active lifestyle clubs such as the employee walking club The Company also provides free annual health screenings and flu shots on-site at all its major locations And for team members on the corporate medical plan Wilson offers additional programs through Blue Cross Blue Shield
PRECORPrecor offers its employees a wide range of wellness solutions including campus flu shots a trainer on campus gym facilities ldquoRock and Rollrdquo marathon sponsorship health coach through healthcare benefits with rewards discounted benefits for non-smokers a smoke-free campus and an employee purchase equipment program All employees have access to fitness equipment on-campus
ONE OF THE BEST EMPLOYERS Arcrsquoteryx was chosen as one of the best employers in Canada by the British Columbiarsquos Best Employers 2013 assessment The criteria included initiatives such as in-house training programs subsidies for professional accreditation maternity- and parental-leave top-ups (adoptive parents included) and extended health benefits coverage throughout leave
BIKE TO WORKArcrsquoteryx Precor and Suunto encourage people to bike to work using alternative commuting methods and involving exercise at the same time
RENOVATED OFFICE ENVIRONMENT TO IMPROVE WORKING CONDITIONS
Salomon Annecy Salomon has recently renovated its offices in Annecy with a new setup of an open space concept in order to provide better working conditions with noise reduction and better sized meeting rooms The new lighting system improves especially those areas in the office with a low level of natural light Employees have received ergonomic working stations and specific employees training program to better manage their daily working positions
New premises for Amer Sports HQAmer Sports HQ moved to new premises in spring 2014 The new home for the HQ is a unique old building that has been renovated to give us an opportunity to work at the modern environment inspiring creativity with its open space and ergonomic work stations utilizing modern central heating and cooling systems automated water tubs and lighting with sensors The location is well served by public transportation with the near location of metro bus and tram stops Amer Sports applies to achieve a BREEAM environmental certification of Very Good rating for the building the criteria of which has been taken into consideration in the reconstruction phase
YEARS FEMALE TOTAL MALE TOTAL Under 30 0 0
30-50 125 0Over 50 125 750Total 250 750
Executive Board Female total Male total Under 30 0 030-50 0 615Over 50 77 308
Total 77 923
COMPOSITION OF GOVERNANCE BODIES AND EMPLOYEE BREAKDOWN
Board of directors
EMPLOYEE WELL-BEING As a sports company with a focus on sports and healthy lifestyles Amer Sports encourages its employees to engage in an active lifestyle Some examples
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 27
Amer Sports sustainability and businessOur people
Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
28 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Supply chain
2014 2013Production ()
Sourcing 60 60By partially outsourced vendors 15 14Own production 25 26
Suppliers employees in audited factories Suppliers employees in audited factories 111700 110000Number of countries where suppliers employees in audited factories are located 17 16
Breakdown of supplier turnover by country risk1) ()High risk countries (of total supplier turnover) 96 96Low risk countries (of total supplier turnover) 4 4
1) Country risk level referring to BSCI definition
Suppliers covered by Supplier Code of Conduct () 92Purchase value from suppliers signed the supplier CoC 92 89
Audits Factories audited2) 132 105Audit visits by external third party 135 119Remediation visits by Amer Sports CR team 33 26
2) Some factories were visited more than once in 2014
Breakdown of audit findings ()Human Rights 1 2Wages amp Benefit 17 19Health amp Safety Environmental issues 82 79
Audited purchasing volume () 966 981
Supply chain Amer Sportsrsquo global operations encompass business functions from product development to product sourcing manufacturing and outbound logistics Reliable efficient and timely supply chain management and operations are important elements in the Grouprsquos strategy
The supply chain function is organized under a single global operations function which includes integrated and shared platforms of manufacturing supply chain and sourcing practices
Amer Sports value of production is divided as follows 25 is in China 33 elsewhere in Asia Pacific 26 in EMEA and 16 in the Americas Amer Sports itself manufactures approximately 25 of its products and approximately 15 is produced by partially outsourced vendors Approximately 60 of the production is outsourced
Read more about supply chain in the Financial Review 2014 on p 8 or at wwwamersportscomabout-usglobal-operations
MANUFACTURINGAmer Sports has 12 manufacturing sites The most important wholly-owned production facilities are located in Austria Bulgaria France Finland Canada and the United States In addition Amer Sports owns all of the manufacturing assets such as tools moulds IT etc except the building and labor force of six plants located in Eastern Europe
Amer Sports purchases the raw materials it requires from a number of sources The most common raw materials are steel rubber oil-based raw materials and components as well as wood These raw materials are used to manufacture
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 29
Supply chain
bull Amer Sports has an extensive third party audit program Amer Sportsrsquo sourcing Office in Hong Kong ensures that suppliers follow Amer Sportsrsquo standards for ethical operations Amer Sports conducts third party audits to help sourcing partners comply with industry standards regulations and Amer Sportsrsquo expectations in regards to health and safety as well as environment and social responsibility
bull Social compliance audits are conducted by internationally recognized companies such as Bureau Veritas and UL Responsible Sourcing Inc (previously named STR)
bull Amer Sports also holds training sessions with the audit firms to make sure that the auditors understand its audit standards The company reviews and analyzes the audit findings to identify capacity building training opportunities and organize different trainings to improve the factory managementrsquos capabilities The trainings can be related to health amp safety employee relationship management and country labor code interpretations
bull The Ethical Policy is embedded into the supplier agreement which is signed by suppliers in confirming to comply with the policy
bull Supplier CSR scores are part of both strategic vendor development plans and regular monthly performance review cycles
bull Amer Sports CSR team members in Hong Kong are trained on SA8000 social and environmental management system program which has equipped them with essential skills to work with suppliers on the CSR audit program and to uphold the companyrsquos Ethical Policy
bull Amer Sports cooperates with various NGOs Wilson one of Amer Sports subsidiaries is a category B affiliate of the Fair Labour Association (FLA) Amer Sports also engages with Better Work for the Better Factories Cambodia program for the audits in Cambodia and regularly attend the ILOrsquos Better Work workshops
plastic components for bindings ski boots and wristop computers and the metal parts used in fitness equipment binding components and ski edges apparel and bats
OUTSOURCINGApproximately 60 of Amer Sportsrsquo total production value is outsourced This includes the manufacturing of all racquet sports and golf products most team sport products and most of the apparel and footwear The manufacturing of products and components for a variety of winter sports equipment cycling sports instruments and fitness equipment has also been outsourced
Amer Sportsrsquo sourcing office in Hong Kong is responsible for vendor qualification and product industrialization contract management and price negotiations procurement process optimization and export administration By leveraging Amer Sportsrsquo scale the aim is to provide a competitive supply of goods with a minimized business risk ensuring product quality service levels and that subcontractors follow Amer Sports ethical standards Amer Sports requirements with regard to labor standards and human rights for the suppliers are defined in Amer Sports Ethical Policy (See p 12)
Amer Sports has approximately 200 external suppliers in Europe and Asia
SOCIAL COMPLIANCEAmer Sports is dedicated to improving the working conditions in its supplier companies in cooperation with them as defined in Amer Sports Ethical Policy (Read more at wwwamersportscomresponsibilityguidelines-and-policies) The company actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met The main features of Amer Sports Social Compliance approach are
bull Amer Sports is committed to the following policies that guide all its actions and operations Company Code of Conduct Ethical Policy (available in 25 languages) for suppliers and Social Compliance policy
Amer Sports actively monitors the performance of its sourcing partners and provides training to ensure that its standards are met
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
30 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
Economic impacts
Direct economic value generated and distributed 2014 2013EUR
million of value generated
EUR million
of value generated
Direct Economic Value Generated 22356 21442
Economic value distributed 19029 85 18248 85Suppliers 13710 61 13104 61Employees 4292 19 4162 19Public sector 180 1 275 2Investors and shareholders 847 4 707 3
Economic value retained 3327 15 3194 15
Taxes by area1) (EUR million) 2014 2013EMEA 85 143
Americas -04 33
Asia Pacific 100 99
In total 181 2751) Including income taxes
Financial assistance received from government (EUR million) 2014 2013approximately 2 approximately 2-25
Amer Sports financial targets arebull Growth Delivering organic currency-neutral annual
growth of 5 bull Profitability EBIT of at least 10 of net sales bull Cash flow Annual free cash flow equal to net profit
Economic impactsbull Balance sheet structure Year-end Net Debt EBITDA
ratio of 3 or less
Read more on the progress versus Amer Sports financial targets on Financial Review p 3
More information at wwwamersportscominvestorsreports-and-presentationsfinancial-reviews or wwwamersportscominvestors
bull Amer Sports provides direct feedback channels for supplier employees Amer Sports publishes its Ethical Policy on its website and identical content has also been published as a poster printed in local languages and placed on the wall of supplier establishments In cases of violation of standards defined in the Ethical Policy the poster provides an email address (asocsramersportscom) and feedback is handled by Amer Sports Asian
Sourcing Office in complete confidentiality This is also communicated in the companyrsquos Ethical Policy
bull Amer Sports partners with the suppliers Amer Sports engages with its suppliers to develop a long-term partnership This helps maintaining stable product quality securing capacity and creating a stable working environment for employees
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 31
About reporting
This first Amer Sports Corporate Responsibility Report aims to give an overview of the Grouprsquos sustainability actions and help us develop Amer Sportsrsquo sustainability work as well as communications
The sustainability report also prepares us for the external requirements for the non-financial disclosure defined by the European Parliament and the Council to improve the transparency concerning social environmental and diversity matters For this reporting we have identified the key areas of Amer Sports corporate responsibility which are explained on p 11
Amer Sports corporate responsibility report covers environmental social and economical areas Information focuses on the Group level but several case examples from the Amer Sports companies functions and categories have been included in this report All the major locations from 34 countries are included in the
About reportingenvironmental figures with the data availability of 85 - 95 The Grouprsquos consolidated financial information has been audited The data covers year 2014 and comparative data from 2013 is included Report is conducted using the GRI G4 guidelines as a reference containing standard disclosures from the GRI Sustainability Reporting guidelines The GRI 4 Index table is presented at the end of this report on pp 32-35 The reporting will be done annually
The environmental data has not been assured externally When calculating carbon emissions the principles used are the Defra Voluntary Reporting Guidelines and the IPCC Second Assessment Report (SAR - 100 year) as a reference While we are aware of the importance of the existence of this report we know this is a work in progress and requires continuous development We are first working to create qualitative objectives in the selected areas to then be able to link them to numerical targets
Material theme Material area Material Aspect IndicatorsEconomic impacts G4 Economic performance G4-EC1 G4-EC4
Environmental footprintActive environmental management of our operations
G4 Energy G4-EN3
Environmental footprintActive environmental management of our operations
G4 Emissions G4-EN15 - G4-EN18
Environmental footprintMinimizing environmental impacts of products
G4 Effluents and Waste G4-EN23
PeopleMaintaining and developing employee competence
G4 Training and Education G4-LA10
PeopleMaintaining and developing employee competence
G4 Diversity and Equal Opportunity
G4-LA12
Supply chainCR requirements for our suppliers
Amer Sports topic Responsible sourcing
Suppliers employees in audited factories Suppliers covered by Supplier Code of Conduct Audits Breakdown of audit findings
Consumers and productsHealth and safety of products and product compliance as well as durability
Amer Sports topic Health and safety of products and product compliance
Narrative description
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
32 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
GRI Index tableGeneral Standard Disclosures Page Comments Omissions
Strategy and Analysis
G4-1 CEO statement 6
Organizational Profile
G4-3 Name of the organization 32 Amer Sports Corporation
G4-4 Primary brands products and services 3
G4-5 Location of headquarters 32 Konepajankuja 6 PO Box 1000 00511 Helsinki Finland
G4-6 Number and names of countries with significant operations
3
G4-7 Nature of ownership and legal form 332 Amer Sports Corporation is a public company
G4-8 Markets served 3
G4-9 Scale of the organization 3 FR 7-8
G4-10 Employee information 23-24 Amer Sports reports the total number of employees by country and business segment and all personnel figures by age diversity and gender on wwwamersportscomcareers Amer Sports has significant seasonal variations in its number of employees
G4-11 Percentage of total employees covered by collective bargaining agreements
Amer Sports aims to report the standard disclosure in the near future
G4-12 Description of supply chain 28-29
G4-13 Significant changes during the reporting period regarding the organizations size structure ownership or its supply chain
32 No significant changes during the reporting period
Commitments to external initiatives
G4-14 Addressing the precautionary approach or principle
8-9 32 Amer Sports risk management process and environmental guidelines enable Amer Sports to avoid harm to the environment
G4-15 Economic environmental and social charters principles or other initiatives endorsed
15-17
G4-16 Memberships in associations 15-17
Identified Material Aspects and Boundaries
G4-17 Entities included in the consolidated financial statements
32 All group companies are included in the consolidated financial statements
G4-18 Process for defining the report content 10
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 33
GRI Index table
General Standard Disclosures Page Comments Omissions
G4-19 List of material aspects 31
G4-20 Aspect boundary within the organization Amer Sports aims to report the standard disclosure in the near future
G4-21 Aspect Boundary outside the organization Amer Sports aims to report the standard disclosure in the near future
G4-22 Restatements of information provided in previous reports
33 No restatements This is Amer Sports first Corporate Responsbility report
G4-23 Significant changes from previous reporting periods
33 No changes This is Amer Sports first Corporate Responsbility report
Stakeholder engagement
G4-24 List of stakeholder groups engaged by the organization
14
G4-25 Identification and selection of stakeholders
14
G4-26 Organizations approach to stakeholder engagement
14
G4-27 Key topics and concerns raised through stakeholder engagement
14-17
Report Profile
G4-28 Reporting period 31
G4-29 Date of the most recent previous report 31
G4-30 Reporting cycle 31
G4-31 Contact point for questions 2
GRI Content Index
G4-32 GRI Content Index 32-35
Assurance
G4-33 Organizations policy and current practice with regard to external assurance
33 The report has not been assured by a third party
Governance
G4-34 Governance structure of the organisation 3 FR 59-62
Ethics and Integrity
G4-56 Organizations values principles standards and norms of behavior
12-13
G4-DMA
Disclosures on management approach
Generic Generic DMA 9-12
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
34 | AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
Category EconomicAspect Economic Performance
G4-EC1 Direct economic value generated distributed and retained
30
G4-EC4 Financial assistance received from government
Amer Sports aims to report the information by country for the most significant countries
Category EnvironmentalAspect Energy
G4-EN3 Energy consumption within the organisation
21 No electricity heating cooling or steam sold Total energy consumption reported in kWh More detailed standards methodologies and assumptions to be included in the future reporting
Aspect Emissions
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
21 G4-EN15 ndash Direct GHG Emissions (Scope 1)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included Fuel combustion vehicle
fleet fugitiveprocess emissions
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
21 G4-EN16 ndash Energy indirect GHG emissions (Scope 2)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Sources included Purchased electricity
purchased heat steam and cooling
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)
21 G4-EN17 ndash Other indirect GHG emissions (Scope 3)bull Consolidation approach Operational controlbull Methodology followed ISO 14064-1 2006
(based on the GHG Protocol)bull Emission factors used Defra (2014)bull Does not include biogenic gases (these are
reported as ldquooutside of the scopesrdquo)bull Sources included bull Purchased goods and services (water paper)
fuel- and energy- related activities waste generated in operations (sent to landfill) business travel upstream transport and distribution
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM
AMER SPORTS CORPORATE RESPONSIBILITY REPORT 2014 | 35
GRI Index table
Specific Standard Disclosures
Page Comments Omissions
G4-EN18 Greenhouse gas (GHG) emissions intensity
21 G4-EN18 ndash GHG Emissions intensitybull GHG Gases included CO2 CH4 N2O HFCs
PFCs SF6 (does not include biogenic gases)bull Includes all sources of Scope 1 2 and 3
emissions (as detailed in G4-EN15-17)bull Intensity ratios calculated
- Emissions per eurom Revenue (tCO2eeurom) - Emissions per FTE (tCO2eFTE) - Emissions per m2 GIA (tCO2em2)
Aspect Effluents and Waste
G4-EN23 Total weight of waste by type and disposal method
21
Category SocialSub-category Labor Practices and Decent Work Aspect Training and Education
G4-LA10 Programs for skills management and lifelong learning
25
Aspect Diversity and Equal Opportunity
G4-LA12 Composition of governance bodies and breakdown of employees
26 Data on minority groups is not available
Amer Sports topic Responsible sourcing
Responsible sourcing
Breakdown of supplier turnover by country risk
28
Responsible sourcing
Suppliers covered by Supplier Code of Conduct
28
Responsible sourcing
Audits 28
Responsible sourcing
Audited purchasing volume
28
Responsible sourcing
Suppliers employees in audited factories
28
Responsible sourcing
Breakdown of audit findings
28
WWWAMERSPORTSCOM