Vapos´s operating environment 

Vapo and its Group companies in Finland, Sweden and Estonia produce products and services in two main areas: the energy business and the Grow&Care business. The Grow&Care business comprises professional growing in greenhouse and tunnels, home
gardening and the creation of pleasant living environments through landscaping. Vapo’s professional growing products are developed under the Kekkilä Professional brand, which is widely known in the global market. Vapo also owns the Kekkilä Garden brand, which has a
strong tradition and a market-leading position in the gardening industry in Finland. In Sweden, the gardening and landscaping business is conducted under the Hasselfors Garden brand, which was established in the 17th century.

The company’s operating environment is currently in a strong state of flux. Climate change and the restrictions it brings for non-renewable fuels, urbanisation and the growing demand
for local food together with living environments becoming polluted and droughts pestering many countries present us with threats and opportunities at the same time. Simultaneously,
the digital transformation provides completely new opportunities for making operations more efficient.

Vapo has renewed its strategy and structure, and is now ready for change. Our goal is to decrease our dependency on energy peat in a controlled manner and, in its place, increase the share of peat-based growing media and bedding peat in our business. In addition, we will offer an increasingly diverse response to urban consumers’ need to make their surroundings greener. In the energy business, we will move further along in the value chain, which will
see the relative share of peat, pellets and wood chips sold as fuels decrease in favour
of tailored energy solutions and digital services based on our expertise. Under the new operating model, we will produce some of the services alone, but increasingly, we will produce them together with our customers and partners. Renewable fuels are already a significant part of our fuel selection, and their share will only increase.

We also have to reinvent peat, or develop completely new, refined products  ut of peat and other natural materials that will bring new turnover for us and added value for our customers.
The most significant megatrends that drive the renewal of our strategy and operations are climate change, urbanisation, the digital transformation and the well-being of people and the environment. Identifying the trends that affect our operations allows us to better anticipate and respond to future challenges and opportunities.