Governance Body & Framework

Governance 
GRI 102-19,20

Oerlikon is mindful of the interdependence of economic, social and environmental interests and seeks to convert this dynamic to a strength that serves its operational and societal objectives. This is a key component of ensuring that we consistently deliver long-term value creation in our daily business activities to the benefit of all stakeholders. 

Sustainability is thus an integral part of our corporate culture and behavior in business as anchored in Oerlikon’s Code of Conduct and the Success Model.

Each employee is responsible, on an individual level, for upholding the sustainability and HSE principles, and line management is responsible for ensuring alignment in business activities and processes within their area of responsibility.

To ensure a close link to the operational part of the business and a full commitment from management, Oerlikon’s sustainability organizational framework encompasses members of the strategic, operative and business levels. This framework reflects Oerlikon’s management model and enables the company to draw on the full complement of relevant resources, experience and knowledge.

Sustainability is endorsed and overseen by the highest governing body of the company – the Board of Directors (Board). The Board agenda covers sustainability topics throughout the year and dedicates significant time for the purpose of establishing the overall guidance for the company’s sustainability strategy.

The Board has mandated a dedicated CSO, who is a member of the Executive Committee and reports to the Group CEO, to monitor, align and execute the sustainability strategy. Led by the CSO, the SMT works closely with the divisions and Group functions in executing the sustainability strategy, rolling out programs and action plans and increasing dialogue and awareness with stakeholders.

The EC decides on the execution of the sustainability road map, based on the proposal provided by the SMT. It prioritizes the allocation of resources and defines the investment strategy to enable the execution of the road map. It also ensures that appropriate internal systems and controls are in place to identify and manage economic, social, governance and environmental risks, and that business is conducted in a responsible manner.

The CSO works with the other members of the EC to provide leadership and direction on the sustainability strategy. He establishes, monitors and manages the sustainability strategy and its implementation across the Oerlikon Group based on the road map, annual objectives and an action program approved by the Board. 

The CSO chairs and leads the SMT in managing and coordinating all sustainability actions and processes within Oerlikon, including:

• Working closely with the divisions and Group functions in executing the sustainability strategy, program and action plans. 
• Developing the road map for the roll out of sustainability initiatives and submitting proposals to the EC for final approval, within the strategic guidance defined by the Board.
• Developing and increasing stakeholder awareness (both internal and external) of the need and benefits of sustainable behavior and to initiate changes and improvements. 
• Identifying and assessing, together with line management, the significant social, ethical, governance and environmental risks that might have an impact on Oerlikon’s long-term business or impair Oerlikon’s objective to remain recognized as a responsible leader in its industry.
• Identifying and assessing, together with line management, the significant social, ethical and environmental risks that might have an impact on Oerlikon’s long-term business or impair Oerlikon’s objective to remain recognized as a responsible leader in its industry.
• Managing and coordinating stakeholder dialogues with regard to social, ethical and environmental matters.

The SMT meets as the program requires, at least once a month.