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How sustainability contributes to business growth

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How sustainability contributes to business growth

  1. 1. Sustainability – Contributing to business growth 8.11.2016 Women in Tech 2016
  2. 2. Valmet key figures 2016 © Valmet2 Net sales by areaNet sales by business lineOrders received EUR 2,878 million Net sales EUR 2,928 million EBITA1 EUR 182 million EBITA1 margin 6.2% Employees 12,306 39% 8% 31% 23% Services Automation Pulp and Energy Paper 21% 11% 45% 10% 13% North America South America EMEA China Asia-Pacific 1) Before non-recurring items (NRI) Stable business = Services and Automation business lines Capital business = Pulp and Energy, and Paper business lines
  3. 3. Laura Puustjärvi Head of Sustainability Ÿ Leading Valmet´s corporate sustainability work since 2013 Ÿ Main achievements include a successful change management to integrate sustainability in company´s business strategy, in the minds of top management and into function-level annual targets and actions in procurement, sales, HR, strategy, R&D and legal Ÿ Annual key statistics: – 500 people trained – 53 supplier sustainability audits – 110 days on the road – Continuous dialogue with Valmet´s management, investors, customers and suppliers Ÿ Sustainability Manager at Metso since 2011 Ÿ Sustainability Specialist at Finnair since 2007 I believe in achieving extraordinary results through collaboration and make working rewarding
  4. 4. Explore sustainability at Valmet
  5. 5. 360° approach to sustainability as part of Valmet´s strategy 22.9.20165 Resource efficient and clean world Converting renewable resources into sustainable results We develop sustainable supply chain practices Supply chain Health, safety and environment We protect the safety of our people and partners and minimize our environmental impactOur people We are a responsible employer and promote diversity Our solutions We develop and provide solutions that support sustainability Corporate citizenship We are trusted partner and respected corporate citizen Our Mission 360° Digitalization and new technologies Aware, urban and global customer
  6. 6. Sustainability at Valmet 1 November, 2016 © Valmet | Author / Title6 Sustainability is part of our everyday operations and founded on our operating principles Ÿ Code of Conduct and related policies Ÿ Valmet’s values Ÿ Compliance with UN Global Compact and selected globally acknowledged principles Ÿ ISO 9001, ISO 14001 and OHSAS 18001 management systems Guiding principles Sustainability360º agenda Comprehensive reporting Ÿ Sustainable supply chain Ÿ Health, safety and environment Ÿ People and performance Ÿ Sustainable solutions Ÿ Corporate citizenship Ÿ Annual sustainability reporting according to global standards (GRI) and assurance by a third party Ÿ Reporting to third party sustainability rankings and indices
  7. 7. Sustainable Supply Chain policy Sustainability risk assessment Supplier self- assessments Sustainability audits We have established a global supplier sustainability management process 20167 All suppliers are required to sign Valmet’s Sustainable Supply Chain policy All suppliers are evaluated through a five-level sustainability risk assessment Weak result in risk assessment lead to supplier self- assessment Weak result in self assessment lead to audit. We aim to audit all high risk suppliers in the long term. 91 audits executed with 3rd party in 2015-2016 Required from all suppliers Required based on supplier risk assessment Results: Sustainable supply chain © Valmet
  8. 8. Sustainable supply chain statistic 2015-2016 1 November, 2016 © Valmet | Author / Title8 450 Valmetees received training 91 supplier sustainability audits 700 corrective actions 430 self- assessments sent 100% of suppliers assessed on sustainability risk 11 000 policies sent to suppliers globally
  9. 9. 0 2 4 6 8 10 12 14 16 18 AxisTitle Axis Title LTIF TRIF 22.9.20169 We have continuously improved our safety performance LTIF = LT1 + LT4 (per million work hours, Valmet personnel) TRIF = LT1 + LT4 + MT+RW (per million work hours, Valmet personnel) Minimum safety standards (First 8) Global incident reporting system HSE in all agendas Minimum safety standards (Next 5) Leadership HSE walks HSE notification and alerts Global HSE audits Quarterly follow-up of units of concern Global HSE policy Monthly HSE reporting Common Site HSE routines Target by end of 2018: LTIF < 2 TRIF < 5 Incident frequency development: rolling 12 month, per million work hours Results: Health, safety and environment TRIF ; 7,6 LTIF ; 2,8
  10. 10. We have steadily progressed towards our 2020 targets 2016 © Valmet10 Results: Health, safety and environment Energy CO2 emissions Water Waste Energy -7,6% CO2 emissions -12% Water -20,7% Non-hazardous waste +22,6% New foundry acquired in Sweden in 2013 Achieved emission reductions in 2013‒2015 Hazardous waste -18,1%
  11. 11. Our personnel’s engagement has developed positively 2016 © Valmet11 • 81% of employees responded to the engagement survey in 2015 • Personnel engagement increased by 9 percentage points • Whole staff is acquainted with Valmet's Code of Conduct and has completed the online training • We launched a global training portfolio with 6 new training programs Participation in personnel engagement survey 56% 65% 2014 2015 Personnel engagement index Results: Our people 68 % 81 % 2014 2015
  12. 12. We improve products and services and bring new innovations to market 2016 © Valmet12 Our R&D focus areas: • Advanced and competitive technologies and services • Raw material, water and energy efficiency • Promotion of renewable materials Results: Sustainable solutions OptiConcept M board and paper machine Advantage NTT tissue machine Valmet DNA distributed control system Valmet IQ online quality management solution High-power recovery boiler Examples of success concepts and products:
  13. 13. We engage with local communities 2016 © Valmet13 Ÿ Valmet has participates in social and environmental programs through two local non-profit organizations since 2011 Ÿ One of the main targets is to develop basic education in the state of Maranhão Brazil NepalChina Africa Ÿ New water filters for the Keng Zhen Central Primary School Ÿ The target was to ensure the availability of fresh water for cooking and drinking at the school Ÿ Monetary support for catastrophe victims in Nepal, which was hit by a severe earthquake in April Ÿ The donation was targeted at first aid and rebuilding work Ÿ A donation for Save the Children as part of our Seasonal Donation Ÿ The donation was used to help drought victims in Africa Results: Corporate citizenship
  14. 14. How to ensure leadership in sustainability?
  15. 15. 1. Have close connection to the top management .
  16. 16. Sustainable supply chain We enhance our supply chain management and the transparency of our value chain. 2. Have a strategy and stick to it
  17. 17. 3. Make change management plan
  18. 18. 4. Plant seeds early
  19. 19. 5. Empower people

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