Sustainability Agenda 2020
Our Sustainability Agenda is built on the five most material topics to our stakeholders and Outotec’s business. We measure our performance with regard to 2020 targets set for each topic. We have defined our most significant impacts with regard to the UN Sustainable Development Goals (SDGs) integrated into our agenda.
Our Sustainability Agenda and goals for 2020 are unchanged, with the timeframe aligned with Outotec’s strategy 2020. Five of the nine most material topics remain as the building blocks of our Agenda: safety, our offering, business practices, supply chain, and our people. Our annual targets for the most material topics are linked to our 2020 goals. We continue to integrate the most relevant SDGs into our Sustainability Agenda and our annual targets, based on an internal evaluation and approved by the Executive Board.
We have analyzed Outotec’s impacts on SDGs in an internal workshop, with eleven SDGs identified as most relevant overall, and two SDGs where we have indirect impact. Our commitment and impact analysis of the SDGs was approved by the Executive Board.
Development work driven by 2020 goals
Safety is the most material topic in our materiality analysis. Zero accidents was set as the ultimate high-level target for our development work, though this very ambitious target is seldom achieved by any company. Outotec’s management believes that this level of commitment to a safe working environment is 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 the pollution and contamination of air, water and soil (SDG 3) and their ecological footprint. The baseline year for our long-term technology-related targets is 2012.
In line with the goals set by the UN General Assembly, we upgrade our customer’s operations to make them more sustainable (SDG 9), while also improving energy efficiency (SDG 7). Through our technologies, we support actions to combat climate change every day (SDG 13). We also increase the efficiency of water use by reducing the amounts of fresh water needed in our processes, and by increasingly recycling and safely re-using water, thus decreasing the amounts of wastewater (SDG 6). With our solutions for renewable energy, we help to make cities more sustainable by enhancing sustainable urbanization (SDG 11). In addition, we have identified an indirect impact of our partnerships with our customers, suppliers, and other business partners (SDG 17) towards two SDGs in connection with our business operations. We cooperate with universities on R&D (SDG 4), and drive technological upgrades and innovations that will improve resource efficiency in production (SDG 8).
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 implemented in accordance with our values. We have zero tolerance for corruption. We continuously train our own employees on anti-corruption topics and require compliance from our business partners (SDG 16). Outotec implements non-discriminatory company policies and practices globally (SDG 10).
Because the majority of Outotec’s manufacturing is outsourced, sustainability along our supply chain is highly important to us. In 2016, having reached the long-term goal for our supply chain, we defined a new long-term goal for our supply chain on supply chain development and auditing. By requiring sustainable practices along our supply chain, we also promote the wider adoption of sustainable management practices, thus enabling our clients to use natural resources efficiently (SDG 12).
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. As an enabling and engaging culture is a key differentiating factor for Outotec, we aim to achieve 10% improvement in the employee engagement index by 2020 in our employee survey. This target was approved by the Board of Directors in 2017.
With equal opportunities as one of our material topics, we aim to increase women’s opportunities for leadership to promote gender equality (SDG 5).
Long-term financial targets
In addition 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 September 2017:
- Sales growth faster than the market
- Annual average service sales growth over 10%
- Profitability (adjusted EBIT) 10% of sales by 2020
- Gearing at maximum 50%
|Targets for 2020||Related SDG|
Responsible business practices:
Sustainable supply chain:
|Development of our people:
Our annual targets are structured to support our 2020 goals and in the same way also reflect the SDGs.