Kesko's integrated data balance sheet has been published as part of the annual report for the third time and more comprehensively than before. The report describes how data is utilized in K Group's business responsibly and creating value. "Transparent and comprehensible communication about data and value creation based on it serves all stakeholders," says Riikka Joukio , Kesko's EVP, corporate responsibility and public relations . Functos has acted as a partner in the production of Kesko's data balance sheets.
PHOTO: Kesko image bank, Kesko Oyj
Customers, investors and authorities are quickly interested in how data is utilized in business responsibly and creating value. The EU's data strategy contributes to the development of a human-oriented and globally competitive fair data economy.
Kesko responds to expectations in its data balance sheet, which describes the collection, processing, use and protection of data in a transparent and comprehensible manner. Kesko's integrated data balance sheet has been published as part of the annual report for the third time and more comprehensively than before.
"Almost everything Kesko does has a digital dimension. Our goal is to continuously improve the customer experience, make the customer's everyday life easier and make our own operations more efficient. Data and technologies are largely intangible resources that must be utilized responsibly, people-oriented and with the aim of sustainable effects," says Minna Vakkilainen , Kesko's director responsible for analytics, data and the K-Plussa customer program.
The utilization of data and artificial intelligence at Kesko produces increasingly significant benefits for business, customers, merchants and partners.
"In addition to business and customer value, there are also threats and risks associated with data and its utilization, which Kesko actively manages. Strong data protection, cyber security and digital architecture are the basis for everything else," says Vakkilainen.
Stakeholders need information about the company's data
The integrated data balance sheet is a comprehensive reporting concept that serves the company's stakeholder and responsibility communication. At the same time, the process gives the organization itself the opportunity to internally visualize strategic goals and concrete benefits related to data.
"Transparent and understandable communication about data and value creation based on it serves all stakeholders, and is also in line with the spirit of a data economy that values individual rights. At the same time, it internally strengthens the understanding of those working in the K group about data-based sustainable value creation," says Riikka Joukio, Kesko's director of responsibility and social relations.
Kesko is the first company in the trade sector that has started publishing integrated data balance sheet. At the same time, Kesko is the first listed company that has seen the value of data in its investor communication.
"The report speaks the investor's language in the investor's terms. The report opens themes related to the value of data in an understandable way with examples. Instead of reporting that focuses on the risks and costs of data security, integrated data balance sheet also opens up the perspective of data value creation in a tangible way," says Hanna Jaakkola, Kesko's director of investor relations.
Not just a report, but a dynamic process
The data balance sheet is a voluntary report that supplements Kesko's regulated financial and responsibility reporting. It follows the recommendation of EFRAG (European Financial Reporting Advisory Group) to look for ways to improve investor information about intangible assets. Special perspectives include the share of data in the business model and the strategic opportunities and risks linked to data.
Collecting and utilizing data involves opportunities to improve current operations and create new business. At the same time, risks, compliance and responsibility issues must also be taken into account comprehensively.
"Currently, the regulation does not require a description of the business value or utilization of the use of data or artificial intelligence in financial or responsibility reporting. However, the forerunners are already on the move and get a strategic advantage from it," says Mikko Merisaari, the partner in charge of integrated financial statements from Functos.
Functos has acted as a partner in the production of Kesko's data balance sheet. Functos has developed a reporting model suitable for companies in different industries.
"Integrateddata balance sheet is not a new report among the old ones, but the preparation process itself produces a strategic vision and a competitive advantage for the company's management. At the same time, it strengthens the construction of a sustainable data culture and value creation models in the company and ecosystems. Investors are also interested in a more detailed picture of the company's data capabilities and the business value of data reserves", describes Mikko Merisaari.
Functos Oy
More information:
Mikko Merisaari, partner, Functos Oy, tel. 050 521 4055, mikko.merisaari@functos.fi Taneli Hassinen, partner, Functos Oy, tel. 040 504 3321, taneli.hassinen@functos.fi
Kesko's integrated data balance sheet:
Functos in brief:
Functos is a company of two experienced IR and communication professionals, Taneli Hassisen and Mikko Merisaari, which helps good companies and people to influence the world. Functos is an advisor and expert with a very broad understanding of business.
We specialize in financial and investor communication, ESG and sustainability communication, and Balanced Data Insight.