Goverenance and management in sustainability

Internal control and risk management activities are an integral part of the management’s overall duty to ensure that the company achieves its objectives, including sustainability targets. Through efficient and effective systems of internal control and risk management, deviations from objectives can be prevented or detected as early as possible.

Sustainability requirements are integrated into the management system through the policies, rules, procedures, key controls, and compliance monitoring of the implementation. The Board of Directors is responsible for monitoring and evaluating the efficiency of the Company’s internal control and risk management systems.

The primary governance principle is adherence to the Three Lines of Defence model, with a clear division of roles and responsibilities regarding internal control and risk management. A proper Three Lines of Defence governance ensures that the segregation of duties is defined and established between risk management and risk control.

The main features of the internal control and risk management systems are described in the Corporate Governance Statement.

Our top-level policies

Finnair has established and defined top-level policies to ensure the implementation of appropriate internal control and risk management structures across all relevant areas. This means that sustainability requirements are integrated into the management system. The top-level policies, that is, the Code of Conduct and the Internal Control and Risk Management Policy, are annually reviewed and confirmed by the Board of Directors.

Our commitment to sound corporate culture, which is based on transparency, honesty, integrity and ethical behaviour, is emphasised in both of these top-level policies. Finnair’s Code of Conduct outlines our commitment to ethical business principles in all our operations. We act in compliance with applicable local, national, and international laws, as well as our own policies. We expect our partners and suppliers, when working for Finnair, to adhere to the same principles as set out in Finnair’s Code of Conduct.

Specific policies to cover all areas in sustainability

In addition, we have defined and established specific and more detailed policies and rules on a number of important areas, such as aviation safety, occupational health and safety, anti-bribery and anti-corruption, fair competition, conflict of interest situations, whistleblower protection, environmental and energy efficiency, accessibility of Finnair’s products and services, trade sanctions, data governance, data privacy, information security, decision-making authorisations, procurement, business continuity management, business travel, disclosure, insider requirements, Board diversity etc. All company policies, rules, procedures, and key controls are part of the internal control and risk management frameworks.

Human rights

Finnair is committed to respecting all internationally recognised human rights as defined in the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. We conduct our business in accordance with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We are also committed to implementing the principles of the UN Global Compact. This is outlined in Finnair’s Policy Commitment to Human Rights and Modern Slavery and Human Trafficking Statement, both approved by the CEO.

The Policy Commitment describes Finnair’s continuous human rights due diligence process, which is integrated into the company’s internal control and risk management frameworks. This includes identifying, assessing and mitigating potential risks and impacts on human rights, as well as monitoring the effectiveness of related controls and risk mitigation activities.

Environment and energy sufficiency

Finnair’s commitment to protecting the natural environment and minimising energy use, emissions and waste is articulated in our Environmental and Energy Efficiency Policy. We manage our environmental sustainability efforts through Finnair’s Environmental Management System (EMS), which complies with the IATA Environmental Assessment Program (IEnvA) standard.

Supplier Code of Conduct

Finnair is committed to ensuring that its procurement practices are transparent, fair and responsible, upholding high standards of integrity. The Finnair Supplier Code of Conduct (SCoC) is an integral part of a purchase contract.

Finnair uses a Whistleblowing line called SpeakUp , through which our employees, partners and value chain workers can report concerns or violations related to ethical business conduct. We encourage you to report any observations of suspected fraud or misconduct, unethical behavior or violation of laws and regulations.

As a company looking forward to the future, it's crucial for us to participate in discussions and decision-making that impact our industry. To achieve our strategy, we aim to secure adequate traffic rights while adhering to ethical and sustainable practices. We maintain a fair and transparent approach to lobbying and refrain from pressuring or supporting political decision-makers. Our lobbying activities are audited regularly to ensure compliance with legal and ethical standards.

We engage in lobbying activities to maintain relationships with relevant policymakers and participate in advocacy organisations' operations and negotiations. When lobbying on civil aviation and industry regulation issues, we collaborate with various organisations and chambers of commerce. Finnair is an active member of aviation industry organisations such as A4E and IATA, the Confederation of Finnish Industries (EK), its sub-associations, and several chambers of commerce.

Transparent reporting is an essential part of our governance practices. Our Annual Report provides information about sustainability topics, among others.

Communication at Finnair is transparent, timely and honest. We comply with regulations applicable to listed and limited liability companies, as well as the Finnish Act on Cooperation within Undertakings and the State Ownership Steering Department's communication guidelines.

Read more about risks and opportunities in our Annual Report.