Financial responsibility

Luke is a financially responsible organization and a valued collaboration partner that delivers research-based value and solutions to its clients and society both locally and globally. Luke’s financial operations are governed by the State Budget Act and Decree, along with the related regulations and guidelines.

In 2024, Luke’s gross expenditure was €148 million, which was €3.2 million less than the previous year. Net expenditure amounted to €78.9 million, a decrease of €6.2 million compared to 2023. The state’s budgetary framework has required, and will continue to require, substantial fiscal adjustments in the coming years. Luke has made decisions, implemented measures, and prepared actions in line with its productivity programme during 2023–2024. The aim for 2025–2026 is to align operations with the 2027 budgetary funding level set in the framework decision.

The main strategy for fiscal adjustment is to enhance operational impact and thereby increase external funding. A key success in 2024 was the increase in external funding by €3 million (4%) compared to 2023, despite a reduction of 22 person-years in available workforce. Total revenue amounted to €69.4 million, and external funding covered 47% of total expenses (compared to 44% in 2023). Notable successes in increasing funding were achieved particularly through regional and EU funding sources.

We contribute our expertise to regional development, for example by supporting Finland’s carbon neutrality goals, developing bio- and circular economy solutions, and promoting climate change adaptation. Through regional funding, our knowledge can be transferred to benefit businesses, local solutions can be developed, and primary production can be renewed. The aim is to support sustainable growth in the regions and reduce disparities in development and well-being between them.

For instance, in the HIILIPOLKU project, we generated significant regional benefits for the Lake Puruvesi area—particularly for forest owners and other actors committed to the sustainable use of natural resources. In the Kiiminkijoki river basin, we contributed to the development of a land use roadmap aimed at improving the area's ecological status and promoting sustainable development in line with a vision extending to 2050.

The total funding for regional projects implemented by Luke in 2024 was approximately €11.2 million. In addition, 73 new regional projects were launched in 2024, with Luke being granted approximately €13.6 million for their implementation.

The most significant funding providers were the ELY Centres of Southwest Finland, Häme, and Eastern and Northern Finland, as well as the Regional Councils of Eastern and Northern Finland. The main sources of regional funding were the Just Transition Fund (JTF) and the European Agricultural Fund for Rural Development.

We participate annually in numerous international projects, both as coordinator and partner. In 2024, Luke achieved excellent results in securing EU funding, which increased both the amount of international funding and the number of coordinated projects.

In 2024, a total of 103 Horizon Europe applications were submitted. Of these, 25 projects were approved for funding, five of which are coordinated by Luke. The overall success rate for funding applications was 25%. In total, Luke was awarded approximately €18.7 million in new Horizon Europe funding. Altogether, Luke had 16 Horizon Europe projects either ongoing or in preparation during 2024 under its coordination.

At Luke, we specialize in providing tailored research and expert services that meet the specific needs of our clients. This type of research and expert service offering differs from our other work, as it operates under market-based funding. Our primary focus remains on maintaining excellence in research. While profitability is an important aspect of client work, it never overrides our ethical standards or compliance with relevant regulations.

We value building strong relationships with our clients. Our collaborative approach allows us to gain a deeper understanding of their needs and deliver customized solutions. To ensure we meet client expectations, we measure customer satisfaction annually. The survey evaluates their willingness to recommend us as a collaboration partner based on the projects we have delivered for them.

Luke’s procurement expenses amounted to €52.8 million in 2024. Of this, 43% was for service purchases, 25% for facility rents, 11% for material and supply purchases, 8% for travel expenses, 5% for investments, and 8% for other expenses. In 2024, five of Luke’s own framework agreements were tendered, generating cost savings both in procurement and in the procurement process itself.

In the purchase-to-pay process, we have implemented the Finnish Government’s general objectives for automating order and invoice processing. In 2024, Luke processed 14,550 purchase invoices, with an automation rate of 38.9%. The share of purchase order and contract-based invoices was 63.2%.

Luke’s premises expenses in 2024 totaled €16.3 million, representing 11% of total expenditures. During 2024, actions were prepared in line with decisions on restructuring Luke’s site network, aiming to achieve €1.2 million in savings in premises expenses in the coming years.

Office space efficiency was 8.1 m² per person in 2024, which is below the target set in the Government’s Premises Strategy (10 m²).