Corporate governance at Höganäs is based on applicable legislation and internal policies and procedures. Sustainability is an integral part of Höganäs strategy and the ultimate responsibility and decision-making authority for Höganäs’ sustainability performance and compliance with statutory and regulatory requirements lies with the Board.
The Board establishes each year its working plan, which integrates sustainability reporting and risk-management reporting. An extensive risk matrix, including sustainability risks and action plans, is prepared by the group management each year and reviewed by the Audit Committee and the Board. On a needs basis, tighter follow-up is decided upon for specific risks. The Board receives updates on Höganäs fulfillment of sustainability goals at board meetings and every board meeting also includes a review of Höganäs’ operations, including sustainability issues. In addition, the owners receive an annual and comprehensive compliance and progress summary on sustainability, according to a Sustainability Framework, a set of minimum requirements and development. They cover issues such as environmental protection, efficiency in operations, occupational health and safety, social contribution and ethics.
During the year the Board held in total seven meetings, of which five were physical meetings and took place at the sites in Höganäs and Halmstad. The management team members of all the Product Areas, Continents and Group Functions presented their goals, strategies and issues related to their respective area of responsibility. The Board addressed strategic issues related to the global trends, such as sustainability. The Board also addressed matters related to health and safety, environment and sustainability in investment decisions.
To further support decision making, there are four committees or councils covering areas such as remuneration principles and other terms of employment, financial reporting and policies, risk management, auditing, compliance, ethics, projects and investments.
The General Counsel and Senior Vice President Sustainability, a member of the management team and reporting to the CEO, is appointed to have the responsibility to drive and develop the sustainability strategy and performance.The management team is responsible for the implementation of the sustainability strategy, Mount Sustainability, and for the performance of the sustainability development within each area of responsibility.
A corporate sustainability function, consisting of sustainability specialists, works globally with improvement programmes and follows up on the implementation of decisions taken, driving and co-ordinating sustainability work at Group level. Corporate Sustainability also acts as an advisor concerning the sustainability strategy and ensures that relevant sustainability issues are brought to the attention of Group Management.
Sustainability management at Höganäs is based on our vision and the management philosophy, More Höganäs, the Code of Conduct, including the ten principles of UN Global Compact, Höganäs Mount Sustainability and subsequent policy documents.
The foundation for Höganäs’ internal governance instruments and risk management is the management system, which is to a large extent certified and third-party audited. The management system covers all operations. It is based on Group policies, directives and procedures including the Precautionary Principle (ie. whenever changes to the organization, operations or products are planned, a precautionary approach concerning environmental impact is applied). In the local management systems, these Group documents are further supplemented by additional processes and procedures.
Targets and action plans that include finance, quality, environment, energy and occupational health and safety are used to control the operations. Höganäs incident reporting procedure and the grievance and whistleblowing function further support the reporting of the occurrence of sustainability issues and the response and management of these issues.