What are the material issues the company has identified?

In its 2019 Sustainability Report Outotec identified a range of material issues, such as financial performance, health and safety, sustainable technologies and innovations, responsible supply chain. Among these, promoting ethical business practices stands out as a key material issue for Outotec.

Stakeholder engagement in accordance with the GRI Standards                                     

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Outotec engages with: 

Stakeholder Group	Method of engagement
Employees	·      Regular briefings and info sessions ·      Regular meetings with employee representatives ·      Global intranet, collaboration tools and social media ·      Performance development dialogues ·      Outotec Round-Table ·      Employee surveys ·      Compliance helpline and feedback channels ·      Young Professionals network
Customers	·      Regular meetings held by Outotec’s Account Management, and as part of Sell and Deliver processes ·      Customer satisfaction surveys ·      Joint R&D projects ·      Training, user meetings, workshops ·      Seminars, conferences, trade shows ·      Asset walks ·      Newsletters, website, social media
Suppliers and contractors	·      Contacts through Outotec’s Delivery process ·      Supplier Policy and Code of Conduct ·      Supplier assessments and audits ·      Joint continuous improvement of processes ·      Outotec Supplier Days ·      Training events and programmes
Investors, analysts and financiers	·      Quarterly briefings ·      CEO’s mid-quarter Q&A sessions ·      Audited/assured reporting ·      Capital Markets Day ·      Roadshows, one-on-one meetings, industry seminars ·      Annual General Meeting ·      Excursions to Outotec sites ·      Annual surveys
Academia and students	·      Joint programmes ·      Involvement in university courses ·      Seminars, lectures, visits ·      Thesis work ·      Internships ·      Networking
Authorities, regulators and governments	·      Memberships and chairmanships in EU’s and national working groups ·      Counselling on expert matters ·      Seminars on sustainable mining and metals processing
Potential future employees	·      Careers website and social media channels ·      Recruitment events ·      Student cooperation ·      Internships ·      Hosting visitor groups
Local communities	·      Joint social programmes with customers ·      Support for local initiatives ·      Volunteering programmes
Industry associations and NGOs	·      Active membership in industry associations ·      Employee volunteering work ·      Dialogue on circular economy and sustainable processing of minerals and metals
Media	·      Interviews with Outotec managers and experts ·      Quarterly media briefings ·      Audited/assured reporting ·      Success stories on the website ·      Active use of social media ·      Excursions to Outotec sites

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Outotec engaged with its stakeholders through an online survey on the company’s external website and also interviewed representatives of key stakeholder groups and Outotec employees.

What actions were taken by Outotec to promote ethical business practices?

In its 2019 Sustainability Report Outotec reports that it took the following actions for promoting ethical business practices:

• Implementing a Code of Conduct
• Outotec’s Code of Conduct sets out the principles of business conduct and gives guidance to its employees and external stakeholders on ethics, compliance with laws and regulations, solid governance and management of sustainability and risks. The Code is approved by the Board of Directors, and all employees and business partners are expected to follow it. Outotec’s target is that employees participate in e-learning on the Code of Conduct or attend the related classroom training on a regular basis. During 2018, 94% of Outotec’s permanent employees with daily access to a computer completed the Code of Conduct training. In 2019, updated Code of Conduct training material was distributed to all employees and contractors with daily access to a computer for self-study.

• Launching a Compliance Helpline
• Outotec’s Compliance Helpline on the company website is available for anyone to raise concerns related to corruption, human rights or any unethical behaviour. All concerns raised are treated confidentially, and there is a clear no-retaliation policy. More severe compliance cases may be submitted to Outotec’s Compliance Board, whose members are the Chief Compliance Officer, the General Counsel, the Chief Financial Officer and the Head of Human Resources. In 2019, there were in total 36 compliance cases investigated and received from all channels (website, intranet, email, verbal, etc.). Compliance investigations led to the termination of twelve employment contracts.

• Conducting risk assessments
• Outotec makes sure that all projects of a certain size or complexity are subject to a risk assessment, which includes various compliance and ethics queries and escalations for the identified risks. They may involve more detailed investigations internally or through a third party, and may result in Outotec declining to bid for certain projects. In addition, unknown and potential risk customers, suppliers or agents are regularly being assessed for compliance risks using an external tool with escalation paths. Environmental, social and economic sustainability related risks are covered in the project risk assessment tool, which is used to assess all new projects worth at least one million euros. Appropriate follow-up actions are defined based on these findings. In 2019, internal audits were conducted in the Middle East and Southeast Asia Pacific market areas and for agents used by Outotec. Outotec also conducted compliance due diligence checks relating to identified high-risk countries. Outotec has also assessed the human rights risks in its own operations, with the focus on service and manufacturing sites. No significant human rights risks were identified. Based on the assessment, working conditions guidelines regarding blue-collar workers were implemented during 2019, which were aligned with the UN Guiding Principles.

• Providing anti-corruption training
• Outotec trains its employees in connection with audit activities at its market area operations regarding anti-corruption policies and procedures for preventing misconduct and crimes. Virtual training, processes and guidelines on anti-corruption are also available to all employees. In 2019, an anti-corruption campaign regarding anti-corruption risks and required business conduct was made available for all employees and contractors.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 205-1 Operations assessed for risks related to corruption

2) Disclosure 205-2 Communication and training about anti-corruption policies and procedures

3) Disclosure 205-3 Confirmed incidents of corruption and actions taken

 

Disclosure 205-1 Operations assessed for risks related to corruption corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.5

Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.5

Disclosure 205-3 Confirmed incidents of corruption and actions taken corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.5

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

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References:

1) This case study is based on published information by Outotec, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Outotec: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Sustainability Report Outotec identified a range of material issues, such as financial performance, sustainable technologies and innovations, health and safety, ethics, compliance and governance. Among these, promoting social and environmental responsibility among its suppliers stands out as a key material issue for Outotec.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Outotec engages with:

Stakeholder Group	Method of engagement
Employees	·      Regular briefings and info sessions ·      Regular meetings with employee representatives ·      Global intranet, collaboration tools and social media ·      Performance development dialogues ·      Outotec Round-Table ·      Employee surveys ·      Compliance helpline and feedback channels ·      Young Professionals network
Customers	·      Regular meetings held by Outotec’s Account Management, and as part of Sell and Deliver processes ·      Customer satisfaction surveys ·      Joint R&D projects ·      Training, user meetings, workshops ·      Seminars, conferences, trade shows ·      Asset walks ·      Newsletters, website, social media
Suppliers and contractors	·      Contacts through Outotec’s Delivery process ·      Supplier Policy and Code of Conduct ·      Supplier assessments and audits ·      Joint continuous improvement of processes ·      Outotec Supplier Days ·      Training events and programmes
Investors, analysts and financiers	·      Quarterly briefings ·      CEO’s mid-quarter Q&A sessions ·      Audited/assured reporting ·      Capital Markets Day ·      Roadshows, one-on-one meetings, industry seminars ·      Annual General Meeting ·      Excursions to Outotec sites ·      Annual surveys
Academia and students	·      Joint programmes ·      Involvement in university courses ·      Seminars, lectures, visits ·      Thesis work ·      Internships ·      Networking
Authorities, regulators and governments	·      Memberships and chairmanships in EU’s and national working groups ·      Counselling on expert matters ·      Seminars on sustainable mining and metals processing
Potential future employees	·      Careers website and social media channels ·      Recruitment events ·      Student cooperation ·      Internships ·      Hosting visitor groups
Local communities	·      Joint social programmes with customers ·      Support for local initiatives ·      Volunteering programmes
Industry associations and NGOs	·      Active membership in industry associations ·      Employee volunteering work ·      Dialogue on circular economy and sustainable processing of minerals and metals
Media	·      Interviews with Outotec managers and experts ·      Quarterly media briefings ·      Audited/assured reporting ·      Success stories on the website ·      Active use of social media ·      Excursions to Outotec sites

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Outotec carried out a public web survey among all stakeholders about the topics that were most important and impacted stakeholders’ decision making regarding Outotec, also interviewing representatives of employees, customers, suppliers, investors and academia.

 

What actions were taken by Outotec to promote social and environmental responsibility among its suppliers?

In its 2019 Sustainability Report Outotec reports that it took the following actions for promoting social and environmental responsibility among its suppliers:

• Carrying out supplier environmental assessments
• In 2019, Outotec screened 99 suppliers, equalling 14% of all new suppliers, using environmental and social criteria. Additionally, Outotec audited 71 suppliers, equalling 33.6 % of all key suppliers, using environmental criteria. Screening is a spot check on certain topics, and Outotec selects the companies for environmental screening from the high and medium risk categories, based on information collected with a supplier self-assessment questionnaire. The questionnaire includes 12 questions related to environmental aspects, hazardous substances, and waste management. In case any risks are identified based on the received information a detailed environmental assessment is included in the audit, which is either performed by phone interview or site visit. Audit results and findings are reported as an official audit report in Outotec’s Supplier Data Management system. Audit findings are categorised into observations and deviations. In Outotec’s supplier audits, none of the audited suppliers were identified as having significant negative environmental impacts. Outotec evaluated suppliers’ approach to waste management and environmental controls and the audit teams reported that suppliers were making strong efforts to minimise their negative environmental impacts.

• Combatting child, forced and compulsory labour
• Outotec does not tolerate any child labour or forced or compulsory labour, as stated in its Code of Conduct and Supplier Policy. According to Outotec’s human rights self-assessment made in 2017, no notable risks related to the use of child labour, or forced or compulsory labour, were identified in Outotec’s own manufacturing units. The main sustainability-related risks in the supply chain, identified in Outotec’s internal workshop consisting of its global supply team, included bribery and kickbacks, occupational safety, protecting information and reporting misconduct. Child labour is, however, a recognised risk in any supply chain, and Outotec has taken steps to reduce the possibility that its approved suppliers utilise child or forced labour. Outotec identified three countries in its supply chain, namely China, India and Mexico, with potential risks regarding child labour or hazardous work. In 2019, 5.6% of Outotec’s suppliers were based in China, 1.7% in Mexico, and 1.1% in India. To mitigate these possible risks, Outotec’s dedicated supply personnel in each of its Market Area offices assesses suppliers according to Outotec’s approval process and makes observations during audits and other visits.

• Carrying out supplier social assessments
• As the majority of Outotec’s manufacturing is sourced from external suppliers, there are potentially more human rights-related risks in the supply chain than in Outotec’s own operations. Outotec has categorised its suppliers into three risk categories. Country risk is one criterion in determining the scope of the supplier assessment. To mitigate social sustainability related risks, suppliers are required to commit to Outotec’s Supplier Policy, which reflects the principles of the company’s Code of Conduct. In 2019, Outotec audited 33.6% of its key suppliers on quality, health and safety and human rights-related issues. The long-term target is to audit all key suppliers with these criteria regularly, with supplier development actions drawn up according to audit findings. In supplier selection, Outotec screened 123 suppliers, in a combination of field and desk assessment. This included reviewing human rights and labour practices criteria. Screening is a spot check on certain topics, and Outotec selects the companies from the high and medium risk categories based on information collected with a supplier self-assessment questionnaire. The questions relate to social programme accreditation, respect for human rights of employees, prohibition of child labour, health surveillance, incident management and occupational safety. All the screened companies qualified as new suppliers, as none of the companies were identified as having significant potential negative human rights or social impacts. Suppliers that Outotec does not normally screen are for example, one-time indirect suppliers, such as consultants. Some of these non-screened suppliers have, however, signed Outotec’s Supplier Policy. In Outotec’s supplier audits, four suppliers, equalling 5% of the audited suppliers, were identified as having potentially negative health and safety impacts. However, none of those were considered significant and improvement measures were agreed with these suppliers. Audit findings were related to missing health and safety practices and equipment, and wrong storage of chemicals causing a potential risk for employees. No relationships were rejected because of health and safety findings in Outotec’s supplier audits and there were no incidents filed through formal grievance mechanisms related to Outotec’s suppliers’ human rights impacts, impacts on society or labour practices.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor

4) Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

5) Disclosure 414-1 New suppliers that were screened using social criteria

6) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Abolition of child labor
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Abolition of child labor

Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Elimination of forced or compulsory labor

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

 

 

 

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References:

1) This case study is based on published information by Outotec, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Outotec: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.