Sustainability report

Savings to the society

Responsibility is reflected in the purpose of Hansel’s operations – generating savings for the government. The conclusion of a study conducted at the Helsinki School of Economics (Karjalainen et al. 2008)1 indicated that, compared to distributed procurement operations, use of a centralised operational model in procurement generates significant savings of approximately 20–25 per cent.

Based on the model presented in the study and the potential calculations of Hansel’s framework agreements, the savings achieved through central procurement were €247 million in 2014.

Through more efficient operations, Hansel has been able to lower the service fees charged from contract suppliers. Currently, the maximum service fee that can be charged is 1.5 per cent of the contract value while the average service fee in 2014 was 1.19 per cent.

Hansel’s operating model

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Hansel’s tax footprint

Hansel is now reporting its tax footprint in its CSR report for the first time. Tax footprint reporting is based on guidelines issued by the Prime Minister’s Office, the Ownership Steering Department, on 1 October 2014, providing instructions for the State’s majority-owned companies on how to report country-specific taxes.

Because Hansel has no operations abroad, all taxes are paid in Finland in accordance with current legislation. Operating under the CEO, the financial department is responsible for tax affairs at Hansel. Hansel has no specific tax strategy or tax planning.

The amount of value added tax to be paid from 2014 amounted to €1,626,449.41. The amount of corporate income tax amounted to €59,885.52. Tax withholding in 2014 amounted to €1,607,314.51.

No public grants were paid to Hansel in 2014.

1This research was conducted using Hansel’s central procurement figures for 2006. The research concluded that the savings achieved in 2006 already amounted to approximately €95 million. This study suggested that if all potential central procurement were conducted in a fully centralised manner, the savings could amount to 25.7%. As it was assumed that a 100% utilisation rate could not, realistically, be achieved, this figure was viewed as a theoretical maximum value for savings through central procurement. The study estimated a utilisation rate of 80% to be realistic.