Sustainability Agenda 2020

Our Sustainability Agenda is built on the five most material topics to our stakeholders and Outotec’s business. We measure our sustainability performance with regard to long-term targets set for each theme.

We have partially revised our Sustainability Agenda and long-term goals, as we reached our supply chain goals ahead of time. A new long-term target was approved by the Executive Board in February 2017. Five of the nine most material areas remain as the building blocks of our Sustainability Agenda: safety, our offering, business practices, supply chain, and our people. Our annual targets are linked to both our long-term goals and the nine most material topics. Based on an internal evaluation, we have also integrated the most relevant UN Sustainable Development Goals into our Sustainability Agenda, as well as our own annual targets.

We reached our supply chain goals ahead of time

Development work driven by long-term goals

Safety arose as the most material theme in our recent materiality analysis, partly as a result of deeper stakeholder dialogue, and partly because our top management saw a need to improve our safety performance and culture. Zero accidents was set as the ultimate high-level target for our development work, though this is a very ambitious target that is seldom achieved by any company. Outotec’s management believes that this level of commitment to a safe working environment is nevertheless a necessity in the challenging project circumstances in which our employees, customers and suppliers work.

Our technologies and R&D have a central role in our operations, since they represent the key means of improving the resource efficiency of our customers’ operations. For this reason, developing sustainable offering for our customers is also at the core of our sustainability work. Our second long-term goal relates to providing customers with even more sustainable technologies and services, to help them reduce their ecological footprint. The baseline year for our long-term technology-related targets is 2012.

In the area of responsible business practices, we aim to develop strong common values and a robust Code of Conduct, as well as a solid governance structure. An integral part of this goal is to ensure that our Code of Conduct is also be implemented in accordance with our values.

Because the majority of Outotec’s manufacturing is outsourced, sustainability along our supply chain is highly important to us. Global supply chain management has been a prioritized development area for Outotec since 2010. In 2015, we defined a new long-term goal for our supply chain, to have all our major suppliers committed to Outotec’s Supplier Policy by 2020. We reached this long-term goal already in 2016, and have now set a new long-term and annual target for supply chain development and auditing.

Outotec’s business is dependent on our people. We want to make Outotec the most desirable place to work in our industry, and to keep great talent with us. This means we need to offer opportunities for continuous professional growth through job and task rotation. The key motivation for many experts today is a sense of fulfillment.

As an enabling and engaging culture is a key differentiating factor for Outotec, we aim to achieve a five percent improvement in the employee engagement and performance enablement indices calculated on the basis of our employee surveys. The figures will be compared with results from the base year 2013, when our employee engagement index was 69 percent, and our performance enablement index was 67 percent.

We see engagement as a combination of perceptions that have a positive impact on behavior, such as satisfaction, commitment, pride, loyalty, a strong sense of personal responsibility, and a willingness to be an advocate for the organization.

Another key element is performance enablement, which focuses on customer service and quality, involvement, training and teamwork. Performance enablement is a good predictor of customer satisfaction and business performance in the form of sales growth, market share, productivity, and profitability. These parameters are measured at least every second year in our employee surveys.

Our annual targets are linked to our Sustainability Agenda. We have set annual targets for all nine identified material themes, including for the first time the theme Equal opportunities and diversity.

Long-term financial targets

In addition to the long-term goals related to our Sustainability Agenda, Outotec aims to achieve continuous profitable growth. Outotec’s Board of Directors set the following long-term financial targets for the company in June 2016:

  • Sales growing faster than the market
  • Annual average service sales growth 5-15%
  • Reach 10% adjusted EBIT margin by 2020
  • Gearing at maximum 50%

We have also integrated the most relevant UN Sustainable Development Goals into our Sustainability Agenda

 

  Long-term targets for 2020 Status Related SDG

 Safety   

Safety

Zero accidents

Goal 3

Sustainable offering   

   

EGS in order intake permanently over 90%

 Goal 9

Customers generate 20% less CO2 when using Outotec’s metals-related technologies compared to annual baselines

 Goal 13

50% reduction in fresh water intake per tonne of ore in non-ferrous metal concentrators compared to 2012

 Goal 6
 

Double the energy produced through our waste-to-energy solutions compared to 2013

 Goal 7

Responsible business practices 

Strong common values and Code of Conduct; solid governance structure

Goal 8
     

Sustainable supply chain   

Sustainable value chain

100% of our key suppliers audited regularly with supplier development actions drawn up according to audit findings

Goal 12
     

Development of our people   

5% improvement in employee engagement and performance enablement indices compared to 2013 

Goal 4
     

Financial performance

Continuous profitable growth