Most significant topics
Outotec’s strategy is to serve customers with leading technologies, superior customer service and excellent execution.
In line with our mission - targeting the sustainable use of Earth’s natural resources - Outotec is committed to protecting the environment in all its activities. We strive to serve our customers using our wide range of leading minerals and metals processing technologies and life-cycle services. By 2020, we also aim to achieve superior customer service and excellent execution.
Our commitment to sustainability binds us to take a holistic view of our customers’ business. As countries start implementing the Paris climate agreement, we expect carbon emission controls to start playing an increasing role in addition to existing stringent restrictions on emissions of harmful substances to air or water.
Megatrends such as urbanization, resource efficiency and sustainability, coupled with digitalization bring opportunities for Outotec. While safety has long been a top priority for our industry, environmental performance and social license to operate are also increasingly at the forefront of our customers’ minds, not least because of tightening regulation. We also see many unused business opportunities and some threats in China, the country producing over half of the world’s metals and owning an increasing share of the world’s mining assets. Volatility and the cyclical nature of our business is expected to continue, which drives us to further grow our service business.
The key in our climate change strategy, made in 2016, is harnessing our technology for the transition to a low-carbon industry. We have complemented the estimated impacts of megatrends with the opportunities and risks defined in connection with our climate change strategy work. Read more in Financial performance [link].
Our short-term priority is to improve our profitability to achieve economic sustainability. We also work to grow our service business to enhance our ability to create value over the cycles.
To be able to reach our 2020 vision, we are working on five development areas:
To deliver the best customer experience we will develop our account management, sales, and leadership competencies and improve responsiveness.
Services bring us a steady revenue flow, long-term customer relationships, and sustained margins. We will increase local presence and focus on our existing customer relationships and installed base to maximize customers’ return on investment. We aim to increase productivity through digitalization.
We work to improve the cost competitiveness of our products by further differentiation through digitalization and improvements in energy and environmental performance. By redesigning products, by changing components without compromising on quality, and by searching for lower cost supply alternatives we aim to reduce sourcing costs.
We work to improve the quality of our project deliveries and bring flexibility to the cost base.
Engaged experts are key to our success. To improve employee engagement, we are working to create an environment for our people to develop, succeed and find joy in their work. Leadership development is one focus area in this work.
Most significant topics
Outotec conducted a new materiality assessment in 2018 engaging employees and other stakeholders in the discussion. As a result, three topics regarding Outotec operations were defined as having the most impact on the economy, environment and/or society, and three topics that are our foundation for sustainability.
In August-October 2018 our Sustainability Working Group carried out a new materiality assessment, viewing first the company strategy, stakeholder expectations, current sustainability trends, and relevant sustainability frameworks. Potential topics that reflect Outotec’s major economic, environmental and social impacts, or influence the decisions of stakeholders were first identified together with an external partner, based on previous materiality assessments run in 2011 and 2014.
Representatives of key stakeholder groups and Outotec people were interviewed, and there was an online survey at the company’s external website www.outotec.com and in internal channels so that anyone having an interest in the company could have a say about Outotec’s impacts and matters that affect his/her decisions regarding Outotec. We also asked for feedback and development ideas in the survey.
The Sustainability Working Group discussed and reviewed the results and Outotec’s key stakeholders in a workshop, prioritized the material topics and redefined the list of key stakeholders. Stakeholders were evaluated based on their significance to Outotec’s business and on Outotec’s impact on the stakeholder group. The Executive Board validated the results of the materiality assessment and our new materiality approach in October 2018.
Based on the materiality assessment, Sustainable technologies and innovations, Engaged experts, Responsible supply chain, Health and safety, Financial performance, as well as Ethics, compliance, and governance were defined as the most material topics for Outotec.
Health and safety, Financial performance as well as Ethics, compliance, and governance were considered as the foundation of our sustainability approach that the company must take good care of. Sustainable technologies and innovations, Engaged experts, and Responsible supply chain together with our own environmental performance create Outotec’s total impact on the Earth and climate change. All these topics are reviewed in this report.