GRI 2-9,10,11,12,13,16,17,18
We are meticulous in our approach to governance. Whether we are monitoring and quantifying compliance, managing risk or inviting and engaging in public discourse, our goal is to foster a company and a credo in support of the principle that innovation goes hand in hand with maintaining customers’ and society’s confidence and trust.
Under our Executive Chairman’s active direction (for an explanation of Oerlikon’s Executive Chair Model, see the Corporate Governance Report in Oerlikon’s Annual Report) and supported by our Board of Directors and its committees. Oerlikon holds itself to the highest standards of economic, environmental and societal performance, as well as compliance with laws, regulations and corporate policies that govern our operations and practices worldwide.
Furthermore, sustainability is endorsed and overseen by the Board of Directors. The Board’s agenda covers sustainability topics throughout the year and dedicates significant time for the purpose of establishing the overall guidance for the Oerlikon Group’s sustainability strategy. In this process, the Board will also delegate specific sustainability topics to its committees.
The Board has mandated a dedicated Chief Sustainability Officer (CSO), who is a member of the Executive Committee (EC) and reports to the Executive Chairman, to monitor, align and execute the sustainability strategy. Led by the CSO, the Sustainability Management Team (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 SMT consists of members who represent key sustainability areas – operational sustainability and environment (environment), health & safety (social), legal (governance and compliance), HR (social), communications and investor relations. The figure below provides an overview of how sustainability is embedded in Oerlikon’s Board and leadership structure.
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, the Success Model and Oerlikon’s Policy on Sustainability, Health, Safety and the Environment as published on www.oerlikon.com.
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.
Board members are selected and nominated in a fair and non-discriminating way toward minorities. Oerlikon strives to have a well-diversified Board, considering skills, experiences, geographic reach, tenure and gender. The Board refreshment process is described in more detail in the Corporate Governance Report in Oerlikon’s Annual Report.
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 the following:
- Working closely with the divisions and Group functions in executing the sustainability strategy, program and action plans.
- Developing the road map for the rollout 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.
- Managing and coordinating stakeholder dialogues with regard to social, ethical and environmental matters.
