Höganäs & Sustainability
Our path ahead
In 2018 we noticed a more co-ordinated movement within our organisation. During 2019 and the years to come, we will continue to embed sustainability into our business and daily work. We will also continue our efforts to improve the monitoring of our sustainability performance and clarify our targets accordingly. We will foster the attitude that no job or contribution is too insignificant, too difficult or too unknown, so as not to take personal ownership. With joint efforts, we will work to achieve our sustainability goals.
A great and meaningful place to work
In the coming years, we will focus on how we can seamlessly meet, lead, develop and reward our people around the globe. We will establish common diversity principles and a global diversity forum with the aim of placing more emphasis on equal rights, diversity development and discrimination. The implementation of global principles for employment standards is also part of our work to ensure fair working conditions, freedom of association as well as fair living wages and benefits at all sites. We will continue to strengthen our value-based culture by consistently applying our management philosophy when structuring our ways of working. To assure continuous learning and to develop leadership capabilities through structured feedback, coaching and training based on our identified leadership principles is another important priority.
Building communities and responsible partnerships
The main focus during the next year will be on the roll-out of our updated Code of Conduct to all co-workers, including the preparation and introduction of targeted training programmes. Anti-corruption and ethical business behaviour, as well as values and principles that encompass human rights, will be important elements of these trainings. To enhance the governance further, and support the reorganisation that took place during 2018, we will implement global key principles to define clear responsibilities and mandates. We will also continue the work of integrating sustainability risks into our risk management process.
Our engagement in the supply chain will continue with more efforts to implement our updated Supplier Code of Conduct and to complete the assessments of our prioritized suppliers within established timeframes. The establishment of the global supplier and material assessment process for direct materials will be completed next year. The process includes routines for both communication of our Supplier Code of Conduct, regular sustainability risk evaluations, and audits in case of elevated risks or non-compliances. Subsequently, our efforts will be expanded to suppliers of non-direct materials, starting with the introduction of our Supplier Code of Conduct to this group.
Sustainable offerings and long-term profitability
During 2019 our work with life cycle assessments will continue both internally and within the European Powder Metallurgy Association (EPMA). We will also finalise the qualitative sustainability analysis of our product portfolio. The results from this study will be used to clarify our products’ sustainability goals for upcoming product and technology developments. We will also further update our ways of working with investment projects and ensure the Sustainability Life Cycle Assessment comes into the investment process early on.
Future proof business
Our commitment to Zero Accidents will be supported by activities such as promoting a Zero Accidents culture, continuous risk reduction, and global sharing of best practice. Our target is to certify our health and safety management systems with ISO 45001 by 2022. From January 2019, operations will be strengthened with a new co-worker role that will co-ordinate and drive the global safety agenda towards a zero accidents culture.
The on-going implementation of LEAN and 5S (Sort, Set in order, Shine, Standardize and Sustain, with an extra S for Safety) is our tool to identify, improve and maintain local best practices, including ways of working to avoid risks. Our goal for 2019 is to reach a lost time injury frequency (LTIFR) of less than 3 per million hours worked for our co-workers. To eliminate exposure to dust and hazardous substances, we have set ambitious reduction targets for two indicator elements (cobalt and nickel) to be reached by 2020 in all workplaces. Intensified efforts to clarify our co-workers roles and responsibilities with clear prioritization, goals and development plans will also support a safe and healthy workplace.
As part of our vision of Zero Waste, we aim to put more than 85 percent of our side-stream materials to use by 2020, and more than 95 percent by 2026.
Climate neutral operations
Climate neutral operations is our most ambitious vision and also one of the most challenging. A long term Climate Roadmap that aims to decouple earnings from climate impact emissions is underway and will be presented early 2019. The Climate Roadmap will guide the strategy and business planning, as well as form the basis for action plans in the years to come. The areas covered in this work are among others the upstream scope 3 CO2 emissions, efficient sourcing of raw materials and transports, supply of fuels and energy and internal energy efficiency.
To get closer to our vision, the necessary co-operation with industry partners, academia and society’s various actors will continue in the years to come. One such joint activity, is the pilot-scale plant for renewable energy gas, which is currently under start-up for testing at our site in Höganäs, Sweden. If successful, the plant will be integrated permanently into our operations and replace about 50 gigawatt hours of non-renewable energy per year from 2020.
We know where we are and where we want to be in most areas. Now we are in the middle of finding the best possible route to reach identified goals and to clarify parts of the map that are still not completely discovered. As each path of our Mount Sustainability becomes more defined every year, our sustainability work will become more targeted and lead to more positive results.
Senior Vice President Sustainability, Höganäs Group