Governance

Driving change

Sustainability leadership is an absolute necessity to accomplish the profound change that is needed to become and remain a sustainable business. We acknowledge the importance of the individual engagement that our co-workers show in their everyday work. Without their efforts and commitment, we would not see the pace forward that we do.

Only if the sustainability strategy is integrated in the business strategy and planning process, can we truly say that we apply sustainability leadership internally. And only if we have that leadership internally can we inspire progress beyond our own ranks.

Sustainability governance at Höganäs is based on internationally agreed principles and goals such as the Sustainable Development Goals and the ten principles of the UN Global Compact. Our vision and our management philosophy, More Höganäs, as well as our Code of Conduct, serve as guidance.

Our sustainability strategy points out the direction we must take and our governance structure enables our co-workers to align their decisions and plans with that direction, so that our goals can be reached.

Governance

The highest governing body

Corporate governance at Höganäs is based on applicable legislation and internal policies and procedures. The ultimate responsibility and decision-making authority for Höganäs’ sustainability performance and compliance with statutory and regulatory requirements lies with the Board.

A risk matrix, including sustainability risks, is prepared by the Group management each year and reviewed by the Audit Committee and the Board. Closer follow-up for specific risks is decided on a needs basis.

All board meetings include a review of Höganäs’ operations and performance, which includes sustainability performance. The Board received updates on Höganäs’ fulfilment of sustainability goals at board meetings five times during 2019. In addition, we report quarterly and annually to our owners according to a Sustainability Framework; a set of minimum sustainability related requirements.

Sustainability management

The General Counsel and Senior Vice President Sustainability, who is a member of the Group management team and reports to the CEO, is responsible for developing the sustainability strategy, whereas each Group management team member owns the implementation within their respective area.
A corporate sustainability team, consisting of sustainability specialists, works globally with programmes and projects ­targeting identified improvement areas. The corporate sustainability team serves as a support function to the organization in sustainability related matters and monitors progress to ensure it is made according to plan.

In 2019 a Sustainability Council chaired by SVP Sustainability was formed. The Council consists of six dedicated members of the Group management team representing different parts of the company such as product areas, R&D and regions. The purpose of the Council is to build direct links between sustainability targets and business development activities, to take decisions on business-related sustainability matters as well as to participate in preparing other sustainability related matters for decisions within the Group management team.

Höganäs’ internal governance and risk management instruments are the management system, which covers all operations. It is to a large extent certified and third-party audited.

Relevant policies, certifications and legal statements

Code of Conduct and other policies