Sustainability has long been part of the company's DNA
Kiinteistö Oy Itätuuli is a rental housing company wholly owned by the City of Kemi and the largest operator in the area. Sustainability is not a new topic for Itätuuli. The company has a strong tradition of considering environmental matters, has participated in the Vihreä Kemi initiative, and sustainability is clearly present in the city's owner steering. CEO Jaana Tikanoja describes sustainable development as something close to Itätuuli's heart, as responsibility is not an add-on for them, but part of the company's identity.
In 2024, Itätuuli's revenue was €4.143 million and the company employed six people. Its core mission is to provide safe, affordable housing and to support residents in making responsible choices in everyday life.
Starting point: a difficult market and major decisions ahead
Jaana started as CEO in spring 2024 in an exceptionally challenging operating environment. In state-financed housing, the renovation backlog is growing, building stock is ageing, migration is reshaping demand, and many housing companies are being forced to consider even demolition or divestment solutions. This reality is visible in growth centres as well, but the pressure is especially acute in smaller regions facing population decline.
For Itätuuli, the challenge became concrete through a subsidiary portfolio known as Hepolan Helanusten talot. The entity includes five residential buildings and 28 apartments, and it transferred to Itätuuli in August. Occupancy was around 50%. The high level of vacancy weighed heavily on finances and forced the company to think carefully about where limited resources should be directed.
At the same time, Itätuuli did have sustainability data, but the full picture was missing. Not all properties had been brought under unified reporting, and sustainability needed to be tied to financial resilience. As Jaana puts it: "We had to build an economically sustainable structure."
What triggered reporting? Leadership wanted a tool for management
According to Jaana, typical triggers for sustainability reporting include owner expectations, financier requirements, or stakeholder pressure. All of these were present at Itätuuli, but the decisive push came from leadership's own recognition of the value.
Jaana emphasizes that if reporting remains something "outsourced" to the board or driven purely by external demands, it won't take root in everyday operations. Leadership is the key to making sustainability a practical management approach. Itätuuli wanted reporting to be a tool that helps prioritize actions, make difficult decisions based on data, and provide transparent visibility for owner steering.
The solution: A VSME sustainability report and emissions accounting with Selko Insights
Itätuuli produced its first sustainability report in line with the EU's VSME standard with support from Selko Insights. The objectives were clear: to create an organization-wide view of ESG topics, calculate Scope 1–3 emissions and identify major sources, build a foundation for annual monitoring and communication with owners and financiers, and connect sustainability directly to property and investment decisions.
The process was carried out step by step. First, the current state and data were mapped. Then emissions were calculated, the results were validated together with leadership, and finally a VSME-compliant report was produced. Alongside the report, Itätuuli made a climate commitment: the company will measure and report Scope 1–3 emissions annually and work to reduce Scope 1–2 emissions over time.
Results: a solid basis for decisions and clear prioritization
The first reporting cycle provided Itätuuli with a transparent overall picture. Once the largest emissions sources were visible, development could be targeted where impact is greatest. Itätuuli was able to focus its efforts especially on energy efficiency, the impact of procurement, and waste management practices.
Key benefits for Itätuuli
First, the company achieved a unified, transparent view for the owner. For the first time, Scope 1–3 emissions and ESG status were gathered under the same framework. This makes discussions around owner steering and financing easier and brings sustainability clearly into the core of strategy.
Second, reporting enabled better prioritization of emissions reductions and resource allocation. Under the pressure of vacancies and renovation backlog, knowing what to tackle first is essential. The report showed that the greatest impact lies in heating, purchases, and waste.
Third, sustainability became part of economic resilience. Jaana describes stepping into "unknown territory" and needing a financially sustainable structure. Reporting supported that need by bringing sustainability into the heart of decision-making rather than leaving it as a separate project.
Itätuuli's message to other housing companies
Itätuuli's main message to others in the real estate sector is simple: sustainability creates real value only when leadership uses it as a management tool. Owners, financiers, or stakeholders may demand reporting, but it is leadership's own experience of its usefulness that makes reporting truly impactful.
Next steps
Itätuuli will continue to develop its reporting annually, expand monitoring across its entire property portfolio, and strengthen the identification of climate risks. At the same time, sustainability actions will be integrated even more tightly into property strategy, energy-efficiency projects, and improving occupancy rates.