Wärtsilä's objective is to create value for its various stakeholders. The focus is on profitability and raising shareholder value. Achieving this depends on our ability to satisfy the expectations of our other stakeholders as well. These include providing customers with high-quality and environmentally sound products, solutions and services, as well as on building long-term partnerships with suppliers, offering employees competitive compensation and working conditions, and contributing to the well-being of the local communities in which Wärtsilä operate. Good economic performance establishes a platform for the other aspects of sustainability – environmental and social responsibility.
Economic performance
| Direct economic value generated and distributed (GRI 201-1) | |||||||
| MEUR | 2017 | 2016 | 2015 | 2014 | 2013 | ||
| Customers | |||||||
| Net sales | 4 923 | 4 801 | 5 029 | 4 779 | 4 654 | ||
| Suppliers | |||||||
| Cost of goods, materials, and services purchased | 3 021 | 2 969 | 3 136 | 3 066 | 2 901 | ||
| Value added | 1 902 | 1 831 | 1 893 | 1 713 | 1 753 | ||
| Distribution of value added | |||||||
| Distributed to stakeholders | 1 656 | 1 593 | 1 555 | 1 475 | 1 443 | ||
| Employees | |||||||
| Wages and salaries | 1 000 | 939 | 935 | 906 | 903 | ||
| Public sector | |||||||
| Taxes and social dues | 336 | 343 | 349 | 313 | 314 | ||
| Creditors | |||||||
| Net financial items | -47 | -53 | -34 | -28 | -19 | ||
| Shareholder | |||||||
| Dividends | 272 | 256 | 237 | 227 | 207 | ||
| Communities | |||||||
| Donations given | 1 | 2 | 1 | 1 | 1 | ||
| For business development | 246 | 238 | 338 | 239 | 310 | ||
| 2017 | 2016 | 2015 | 2014 | 2013 | |||
| Customers | |||||||
| Net sales (MEUR) | 4 923 | 4 801 | 5 029 | 4 779 | 4 654 | ||
| Net sales by market area (MEUR) | |||||||
| Europe | 1 527 | 1 581 | 1 566 | 1 402 | 1 329 | ||
| Asia | 1 948 | 1 774 | 2 051 | 1 989 | 1 759 | ||
| Americas | 1 113 | 1 039 | 1 006 | 840 | 1 068 | ||
| Africa | 233 | 313 | 329 | 398 | 405 | ||
| Other | 102 | 94 | 78 | 150 | 93 | ||
| Suppliers | |||||||
| Cost of goods, materials, and services purchased (MEUR) | 3 021 | 2 969 | 3 136 | 3 066 | 2 901 | ||
| Employees | |||||||
| Salaries and wages (MEUR) | 1 000 | 939 | 935 | 906 | 903 | ||
| Salaries and wages by market area (MEUR) | |||||||
| Europe | 689 | 650 | 632 | 637 | 649 | ||
| Asia | 156 | 153 | 163 | 144 | 138 | ||
| Americas | 130 | 110 | 112 | 99 | 91 | ||
| Africa | 18 | 19 | 21 | 18 | 14 | ||
| Other | 7 | 7 | 8 | 8 | 10 | ||
| Net sales/employee (TEUR) | 276 | 262 | 271 | 265 | 248 | ||
| Public sector | |||||||
| Taxes and social dues (MEUR) | 336 | 343 | 349 | 313 | 314 | ||
| Taxes and social costs by market area (MEUR) | |||||||
| Europe | 235 | 246 | 246 | 220 | 232 | ||
| Asia | 45 | 45 | 50 | 42 | 34 | ||
| Americas | 42 | 47 | 44 | 37 | 39 | ||
| Africa | 13 | 5 | 6 | 12 | 8 | ||
| Other | 1 | 0 | 2 | 2 | 2 | ||
| Subsidies received (TEUR) | 9 891 | 8 343 | 9 669 | 11 486 | 6 331 | ||
| Net financial items (MEUR) | -47 | -53 | -34 | -28 | -19 | ||
| Community | |||||||
| Donations given, Board of Directors (TEUR) | 110 | 1 365 | 110 | 110 | 111 | ||
| Donations given, Wärtsilä companies (TEUR) | 673 | 533 | 511 | 608 | 609 | ||
| Financial implications and other risks and opportunities due to climate change (GRI 201-2) | |||||||
| Wärtsilä Italia S.p.A is the only subsidiary that falls into the scope of the EU Emission Trading Scheme (ETS) because of the heating plant of the factory. The EU ETS has not had any impact on the company's profitability. Wärtsilä's response to climate change is to develop and provide products, solutions, and services that enable our customers to reduce their greenhouse gas emissions. More information about Wärtsilä's solutions for climate change can be found on our website: www.wartsila.com. The potential business risks related to climate change and Wärtsilä's products are presented under the sustainability and climate change risks in the Risk Management chapter of the Governance review. | |||||||
| Defined benefit plan obligations and other retirement plans (GRI 201-3) | |||||||
| The pension cover is based on the legislation and agreements in force in each country. In Finland, most of the pension obligations are covered by the Employee Pensions system (TyEL). The largest defined benefit plans are used in Switzerland, Germany, the UK and Sweden. Most of these defined benefit pension plans are managed by pension funds, and their assets are not included in the Group's assets. Wärtsilä's subsidiaries make their payments to pension funds in accordance with the local legislation and practices in each country. Authorised actuaries in each country have performed the actuarial calculations required for the defined benefit plans. More information on the Group's pension obligations can be found in the Financial Review, Note 21. Pension obligations. | |||||||
| Financial assistance received from government (GRI 201-4) | |||||||
| Subsidies received (TEUR) | 2017 | 2016 | 2015 | 2014 | 2013 | ||
| 9 891 | 8 343 | 9 669 | 11 486 | 6 331 | |||
| The value of the subsidies received in 2017 was EUR 9 891 thousand and they were among others related to R&D projects. The most contributing countries in 2017 were China, Finland, Spain, and Norway. | |||||||
Market presence
| Ratios of standard entry level wage by gender compared to local minimum wage (GRI 202-1) | |||||||
| Wärtsilä applies and follows local employment legislation in all countries, and respects local collective labour agreements, which often define the minimum wage levels. In addition, entry level salaries are benchmarked against the market references by function and educational qualification. While laws and regulations determine the minimum level, the actual salaries often exceed these levels. A total compensation package for employees in each country is in line with the corporate rewarding guidelines, local market practices, and labour agreements. The base salary is set to meet market conditions, the demands of the job, and individual competence and performance. | |||||||
| Proportion of senior management hired from the local community (GRI 202-2) | |||||||
| Wärtsilä always publishes all open vacancies internally, thus ensuring an equal opportunity to apply for Wärtsilä positions. If there is no specific reason, such as a competence transfer need from other countries, to hire expatriates to the position, local residents are hired. This principle also applies to senior management positions. Senior management consists of global business and corporate management and local company management positions. Globally, 69% of Wärtsilä’s senior management is locally hired, in other words from the same country as the Wärtsilä subsidiary they work for. | |||||||
Note
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