Environmental & Social Information • Feb 21, 2019
Environmental & Social Information
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| CORPORATE RESPONSIBILITY AT KEMIRA 2 | |
|---|---|
| Corporate responsibility priorities 2 | |
| Performance 2018 3 |
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| Recognitions 2018 4 |
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| OUR MANAGEMENT APPROACH 5 | |
| Materiality 5 | |
| Governance 7 | |
| Integrated management system 8 | |
| Sustainable products and solutions 11 | |
| Responsible operations and supply chain 15 | |
| People and integrity 21 | |
| OUR PERFORMANCE INDICATORS 24 | |
| Economic 24 | |
| Environmental 28 | |
| Social 45 | |
| REPORTING PRACTICE 59 | |
| Assurance report 65 | |
| GRI content index67 |
Corporate responsibility is our contribution to sustainable development and it is at the core of what we do. Our corporate responsibility program aims to support the execution of our strategy and long-term value creation.
Our corporate responsibility priorities are based on the most material impact of our business model, on the increasing expectations of our customers, investors and other stakeholders, and on our commitment to the Kemira Code of Conduct and internationally defined sustainability principles.
Kemira measures progress in the priority areas through Group level KPIs and targets which are approved by the Management Board and reviewed by the Board of Directors.
We have three priority areas which cover the six most material topics and their impact.
Sustainable products and solutions
Product sustainability in end-use: Products improving our customers' sustainability, product design for use-phase resource efficiency
Product stewardship: Chemical safety management throughout the lifecycle of our products
Responsible operations and supply chain
operations to ensure safety of our people, and to protect our assets and environment. Key topics are Workplace safety and Climate change
Responsible management of our
Supplier management for risk and compliance management
People and integrity People: Engagement and competence development of our employees
Integrity: Responsible business practices in our own operations and with our business partners
Sustainable products and solutions
Share of revenue from products used for use-phase resource efficiency. At least 50% of Kemira's revenue generated through products improving customers' resource efficiency.
Responsible operations and supply chain
Achieve zero injuries on long term; TRIF* 2.0 by the end of 2020
Kemira Carbon Index ≤ 80 by the end of 2020 (2012 = 100).
Climate change
Työnumero 14
IN PROGRESS
% of direct key suppliers screened through sustainability assessments and audits (cumulative %). The target includes 5 sustainability audits for highest risk** suppliers every year, and cumulatively 25 by 2020.
* TRIF = Number of Total Recordable Injury Frequency per million hours, Kemira + contractor, year-to-date ** Suppliers with lowest sustainability assessment score
People and integrity
The index at or above the external industry norm. The participation rate in Voices@Kemira 75% or above.
Two leadership development activities per people manager position during 2016-2020, the cumulative target is 1,500 by 2020.
KPI to measure compliance with the Kemira Code of Conduct. The target is to maintain the Integrity Index level above the industry benchmark.
Kemira received a B score in CDP's 2018 rankings. This puts Kemira in the top quartile of the chemicals sector companies requested to disclose to CDP, reflecting the company's continued commitment to transparency, increasing energy efficiency and sourcing renewable energy for our operations. This 2018 result shows that Kemira is on the right track, balancing sustainability with profitability. The score aligns well with Kemira's focus on products that help customers do more with less – less raw materials, water and energy.
This most recent CDP disclosure round saw an increase of 11% in companies participating, taking the total to over 7,000 companies of which 97 were from the chemicals sector. This steady growth in CDP disclosure – now representing over 50% of global market capitalization – provides Kemira with a true benchmark of our performance.
Kemira has been awarded the Gold Recognition Level for the CSR (Corporate Social Responsibility) performance for the fourth consecutive year by EcoVadis, a collaborative platform providing sustainability ratings and performance improvement tools for global supply chains. With a score of 75/100 points, Kemira is among the top 5% of the performers evaluated by EcoVadis. The EcoVadis methodology framework assesses companies' policies and actions as well as their published reporting related to the environment, labor and human rights, ethics and sustainable procurement.
The EcoVadis methodology is based on the international sustainability standards of the Global Reporting Initiative, United Nations Global Compact (UNGC), and ISO 26000. Ecovadis reporting gives confidence to our customers and allows us to position Kemira across a broad range of sustainability themes: Environment, Fair labor & human rights, Ethics, and Sustainable procurement.
Our corporate responsibility work is guided by our commitments to the Code of Conduct and internationally defined sustainability principles, stakeholder expectations, and by strategy, corporate policies and integrated management system.
The Kemira Code of Conduct is the foundation for our business conduct at Kemira. Our values are embedded in our corporate culture and connect each of us around the world. Our Code sets a framework around our values and reflects our commitments towards our key stakeholders. We also expect our suppliers and other business partners to maintain the same high standards in their own operations, as defined in our Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA).
The United Nations Global Compact is signed by Kemira Oyj as our commitment to respect and promote human rights, implement decent work practices, reduce our environmental impact, and combat corruption.
Responsible Care® is a voluntary commitment by the global chemical industry to drive continuous improvement and achieve excellence in environmental, health and safety and security performance. Through Responsible Care, global chemical manufacturers commit to pursue an ethic of
safe chemicals management and performance excellence worldwide. This helps to enhance public confidence and trust in the industry's dedication to safely manage chemicals throughout their lifecycle while ensuring that chemistry can continue to contribute to a healthier environment, improved living standards and a better quality of life for all. Kemira is committed to operate according to the principles of Responsible Care®.
Our key stakeholders include our customers, shareholders, lenders, employees and suppliers. Other relevant stakeholder groups include the local communities where Kemira operates, regulatory bodies, trade associations, decisionmakers and opinion leaders.
• A significant share of our investors practice Socially Responsible Investing (SRI). Among the 20 largest institutional shareholders which own 58% (60%) of Kemira shares, 15 (16) investors have signed the Principles of Responsible Investment (PRI). These PRI signatories represent 19% (18%) of the ownership of Kemira shares.
Our approach to stakeholder engagement includes activities ranging from information sharing to active dialogue and collaboration on issues of mutual interest. We regularly review our stakeholders' expectations and potential concerns.
| LIST OF STAKE HOLDER GROUPS |
I D E N T I F Y I N G A N D S E L E CT I N G STAKEHOLDERS |
A P P R O A C H TO STA K E H O L D E R ENGAGEMENT |
KEY TOPICS AND CONCERNS RAISED |
K E M I R A' S R E S P O N S E |
|---|---|---|---|---|
| Customers | • Our customers are Kemira's main source of value creation • Our customers' expectations and needs drive our product portfolio and offerings |
• Direct customer contacts • Customer webinars (6), events (20), newsletters (22) • Customer satisfaction measure Net Promoter Score has risen to 33 (30 in 2017) and is currently on a "good" level. • Key drivers in customer satisfaction are the technical service, speed and proactivity, as well as our ability to offer new solutions |
• Sustainable product offerings and chemical safety • Capability to proactively understand customer needs and to offer new products and solutions • Business ethics • Our sustainability management and performance throughout the value chain |
• R&D portfolio management • Sustainability checks in New Product Development • Product lifecycle management for all aspects of product safety • Improve understanding of customer needs beyond current offerings • Sustainability performance data submitted on request |
| Shareholders and lenders |
• Share of our value creation through dividends and interest payments • Expectations for return on investment, good corporate governance practices and sustainability performance |
• Regular events like roadshows, conference calls and one-to-one meetings. In 2018, we had 20 (23) roadshow days, and 280 (331) institutions were met in 150 (200) meetings |
• Overall management approach to sustainability issues, including climate change impact mitigation • Potential business risks and opportunities related to sustainability of products, operations, ethics and compliance |
• Transparent and regular reporting and disclosure • Participation in CDP Climate Change program • Responding to rating company and investor questionnaires |
| Employees | • Share of our value creation through compensation and benefits • Employees' engagement, well-being and competencies influence our operational performance and value creation |
• Performance management and development process • Regular Town hall meetings globally • Co-operation with employee representatives eg. Kemira European Forum • Engagement surveys • Ethics and Compliance hotline |
• Understanding Kemira's strategy and future direction • New ways of working • Ways of developing competences for the future |
• Strategy refresh communication and action planning • Performance and development discussions • Leadership development • Systematic competence development |
| Suppliers | • Share of our value creation through payments for goods and services • Suppliers' sustainability performance may impact our operational efficiency and business risks |
• Working closely with core suppliers to help them meet our sustainability performance expectations, and take corrective actions if needed |
• Safety • Business ethics and compliance |
• Suppliers are asked to commit to Kemira Code of Conduct for Suppliers, Distributors and Agents • Supplier sustainability assessments and audits |
| Local communities | • Share of our value creation in the form of tax payments and employment. • The safety and environmental performance of our operations may impact the acceptance of our local presence |
• Dialogue and collaboration with local communities at major sites to ensure we understand and address their concerns • Collaboration with schools and universities |
• Exposure to safety and environmental risk • Employment opportunities |
• Environmental impact and process safety risk assessments • Regular and open dialogue with local communities, e.g. open door days |
| Regulatory bodies, trade associations, decision makers and opinion leaders |
• These stakeholders have the capability to influence or make political decisions on legislation with impact on our operations and business |
• Memberships in industrial trade associations • Subject-specific dialogue with regulatory bodies on national and EU level |
• Resource efficiency • Chemicals safety |
• Position paper on relevant topics such EU review on urban waste water treatment • Actively participating in dialogue on EU directive proposal on single-use plastic • Participation in CEFIC and its member organization Chemical Industry Federation in Finland |
The Management Board approves our corporate responsibility priorities, key performance indicators (KPIs) and targets. The Board of Directors is duly informed about these targets, and our related performance, and they also approve the sections of the Annual Report which cover sustainability information, i.e. Business overview, GRI disclosures and non-financial information statement in the Board Review. Climate-related risks and opportunities are part of the overall governance.
Responsibilities for individual corporate responsibility targets are shared between the members of the Management Board.
The Director, Corporate Responsibility, is responsible for ensuring that relevant management processes relating to material corporate responsibility topics are being developed and implemented as part of our integrated management system. The Corporate Responsibility Management Team has members from different functions and acts as a collaboration forum to ensure the implementation and follow-up of our corporate responsibility program as part of the daily business operations.
| C O R P O R AT E R E S P O N S I B I L I T Y PRIORITIES |
A C C O U N TA B I L I T Y O F M AT E R I A L TO P I C S O N T H E M A N A G E M E N T BOARD LEVEL |
RESPONSIBILITY BY POSITION |
|---|---|---|
| Sustainable products and solutions |
• Product sustainability |
• Chief Technology Officer |
| • Product stewardship |
• EVP, Operational Excellence |
|
| Responsible operations and supply chain |
• Workplace safety |
• EVP, Operational Excellence |
| • Climate change • Emissions from our own energy production, Scope 1 • Emissions based on purchased energy, Scope 2 |
• Segment Presidents • EVP, Operational Excellence |
|
| • Supplier management |
• EVP, Operational Excellence |
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| People and Integrity | • Leadership and employee engagement |
• EVP, Human Resources |
| • Responsible business practices and compliance with Code of Conduct |
• Group General Counsel |
Globally, we aim to bring together all of our operations under the Kemira Integrated Management System. The Kemira management system defines the way our organization is working through the set of policies, standards, procedures and processes. It also defines the requirements and accountabilities at each level of the organization.
Conformance to Integrated Management System and compliance to legal requirements are ensured by regularly monitoring the performance indicators and by conducting internal and external audits and management reviews. The management reviews are performed in all levels of the organization from the manufacturing to regional management and the Management Board.
Kemira has a principle that all operations under our Integrated Management System meet the international standards ISO 9001:2015 for Quality and ISO 14001:2015 for Environment and OHSAS 18001:2007 for Occupational Health and Safety. Our Energy Management System is certified to ISO 50001:2001.
Our Integrated Management System is externally audited through a three-year audit scheme. In 2018, we had 54 (60) internal and external management systems audits, including manufacturing sites, major office locations and R&D centers.
| EMEA | AMERICAS | APAC | Total %* | |
|---|---|---|---|---|
| ISO 9001 | 32 | 15 | 6 | 53 (85) |
| ISO 14001 | 31 | 14 | 6 | 51 (82) |
| OHSAS 18001** | 31 | 15 | 6 | 52 (84) |
*Number of sites included in the scope was 62 in 2018. Two manufacturing sites were taken into operation in late 2018, and will be part of scope in 2019.
**One site had its HSE management system certified under ISO 45001:2018, the new and updated version of the OHSAS 18001.
Our Code of Conduct and respective policies cover all areas of Kemira's operations and define the framework for our Integrated Management System. Kemira issues and maintains policies to document and communicate Kemira's expectations concerning important internal processes and activities. Our policies create a framework for consistent practices and enforce compliance in our daily operations. All Kemira policies can be found in the document management system, and there is training available if so required for effective implementation. The policy owner ensures that an adequate monitoring system is implemented to monitor the level of compliance with the policy.
| C O R P O R AT E | ||
|---|---|---|
| RESPONSIBILITY TOPICS | K E Y P O L I C I E S | POLICY OWNERS |
| Sustainable products and solutions |
Product stewardship policy | Head of Product Stewardship and regulatory affairs |
| Trade compliance policy | Head of Product Stewardship and regulatory affairs |
|
| Intellectual Property Rights policy | Chief Technology Officer | |
| Responsible operations and Supply chain |
EHSQ policy (including Energy policy) | Head of Environment, Health, Safety and Quality |
| Sourcing and procurement policy | EVP, Operational Excellence | |
| Logistics and transportation policy | Head of Global Supply Chain Management | |
| People and integrity | Recruitment policy | EVP, Human Resources |
| Global competition law compliance policy | Group General Counsel | |
| Gifts, entertainment and anti-bribery policy | Group General Counsel |
The management of corporate responsibility priorities contribute to Kemira's strategy implementation.
At Kemira, we use our chemistry to add sustainabilty into our customers' manufacturing processes and products. Through our chemistry, we play our part to enable the world to move towards more bio-based, recyclable and reusable materials.
Products and solutions addressing the sustainability requirements of our customers are a crucial part of Kemira's long-term strategy and core business. The use of our products and solutions benefits customers by improving the resource efficiency and quality of their products. Our business model is business-to-business, and we sell products that are used in industrial scale processes mainly as processing aids.
In 2018, we introduced a KPI to measure the share of revenue from products used to improve use-phase resource efficiency. This KPI provides a crucial linkage to our purpose and strategy.
Products included in the KPI are aimed at material, energy and water efficiency at the customer use phase and are linked to the following types of main applications:
The product categories falling into the scope of the KPI are mainly coagulants, polymers and process chemicals.
Kemira's New Product Development (NPD) process follows a stage-gate model. The process starts with idea generation, and continues with five stages and decision gates until commercialization and the final closing of the project. Successful projects must demonstrate both improved sustainability and business benefits at each decision gate to justify the project's continuation, and ultimately the product launch. Our sustainability evaluations examine the economic, environmental and social impact of any new product, both in Kemira's operations and in our customers' operations. The NPD process also aims to identify and evaluate more sustainable and bio-based alternatives for raw materials, in terms of sources, and use in whole life cycle and safety.
Kemira's Product Stewardship Policy defines the minimum requirements for our operations to ensure that our products can be safely used by our stakeholders, and that chemical risks and their impact are incorporated in decision-making relating to our business. Chemical hazard assessments are not only prepared for products but also for raw materials, process aids and intermediates; and are incorporated in change management process during their full lifecycle. Product stewardship is the key pillar in the Responsible Care program. Product Stewardship involves the proactive management of the health, safety and environmental aspects of a product throughout its lifecycle. Our customers have their own health, safety and environmental requirements for their input materials, and they typically follow several voluntary certifcation schemes, including eco-labeling schemes, which set further expectations on our product offerings. Public discussion and concerns relating to specific chemicals and their hazards also affect our approach to product stewardship and chemical management. Product stewardship provides a platform that helps us to identify risks at an early stage and manage those risks along the value chain to fulfll the expectations of different stakeholders.
The manufacturing and sale of chemicals are widely regulated around the world. Continuous follow-up of the regulatory development activities is the prerequisite for business compliance and plays a key role in ensuring product safety for customers, value chain and stakeholders.
All of our products, handled raw materials and intermediates need to comply with all applicable chemical regulatory requirements in the countries where we manufacture and / or sell chemicals. Assessments examining regulatory compliance, human health impact, safety issues and environmental protection aspects all form part of our Product Lifecycle Management process from conception and development to manufacturing and sales, and finally to product elimination. All data related to chemical products and substances including raw materials is managed in Enterprise Resource Planning system and is linked to Product Lifecycle Management tool / process.
We actively track our portfolio for priority substances that are subject to future regulatory restrictions or associated with particular concerns, and prepare management plans for these substances. Our priority substance management plan aims to define the specific risks associated with each substance, examine options for managing these specific risks, and formulate action plans for the preferred options. These options to mitigate risks may include e.g. substitution, phase-out or limiting exposure.
Kemira is committed to reducing, refining and replacing animal testing wherever possible. Kemira does not itself perform any animal experimentation in-house. All animal testing commissioned by Kemira is done to the highest of animal welfare standards following national and
international legislation on the protection of animals and only if specifically required by legislation or for product safety purposes.
When using palm oil derivatives, Kemira screens and relies on suppliers who have shown commitment to the Roundtable on Sustainable Palm Oil (RSPO) supply chain standard for sustainable palm oil. However, RSPO certified palm oil currently has limited availability and Kemira is also forced to use palm oil derivatives without certification.
Product stewardship management approach
Fulfill the customer specific needs
Base level for chemical industry to operate
Value from product stewardship
Compliance with application specific regulations
Industry sector specific requirements (for example, food contact materials, drinking water quality, off-shore chemicals, biocides)
Compliance with chemical product regulations
Product registrations
Product authorizations
Safety data sheets
Product labels
Compliance with regulations Voluntary initiatives
Proactive management of potential product risks and safety issues
Priority substance identification and management
Product safety issues throughout the life-cycle
Responsible Care initiative (ICCA) to continuously improve the EHS performance of our products and processes
Compliance to Eco-label schemes of our customers
MANAGEMENT APPROACH
High-performing Environmental, Health, Safety and Quality (EHSQ) management is fundamental to our business. Our daily EHSQ work is guided by regulations and statutory requirements, by our EHSQ policy, by respective standards and operating practices. Our operations are managed to also meet the expectations of our stakeholders in our operating environment. The way to reach these goals are based on proactive hazards management, implemention of identified improvement initiatives, and engaging with our employees and business partners to enforce preventive EHSQ behaviors in our operations.
All aspects of safety management are fundamental to our operations: process safety, chemical safety, workplace safety, transportation and loading / unloading safety. Incidents in our operations can have consequences for our people as well as to those third parties that are working for us at Kemira sites or at a location where Kemira is present.
Our long-term target for safety is "Zero harm for people" and to be in the "World Class" in workplace safety. We measure our safety performance with Total Recordable Injury Frequency (TRIF) covering Kemira employees and contractors. Our short term target is TRIF ≤ 2.0 by 2020.
In 2018, our safety performance was TRIF= 3.5 (3.9), a result that was an improvement over 2017.
We have now achieved a TRIF level from which further development is highly dependent on the safety behavior of people.
For more information, see GRI 403-2 on page 49.
Kemira is committed to climate protection and in 2014 introduced a target to reduce the carbon emissions generated directly and indirectly from our manufacturing. Our key performance indicator for climate change impact mitigation is expressed as the Kemira Carbon Index and the target is to reduce it by 20 percentage points by the end of 2020, compared to the baseline year of 2012.
The key measures to reduce our carbon emissions include:
such as the EU emission allowance system, there is greater volatility and price pressure on electricity. The electricity price risk is mitigated through strategic ownership of energy-generating companies, and by hedging a portion of our energy and electricity spend. In Finland, Kemira owns shares in the Finnish energy companies Pohjolan Voima Oyj (PVO) and Teollisuuden Voima Oyj (TVO), and the rest of the electricity is purchased from Spot-market. In other countries, energy is purchased from local suppliers, taking into account the favorability of the energy source.
K E M I R A C A R B O N I N D E X Based on Scope 1 and Scope 2
The Kemira Carbon Index measures our CO2 performance both on a consolidated basis and for individual manufacturing sites. It includes 14 large manufacturing sites covering approximately 90% of energy consumption (14 in 2017). The index covers the CO2 emissions of fuel consumption for direct energy production at our sites ("Scope 1" emissions), as well as emissions from purchased steam and electricity ("Scope 2"), but it excludes direct emissions from chemical processing and transportation (upstream/downstream). The index is independent of the impacts of any changes in production volumes, but may be affected by the product mix.
Our Sourcing function is globally responsible for strategic spend management, while our Supply chain management function provides supply chain related services on a regional level to our business segments.
• We have approximately 13,700 suppliers consisting of 1,700 Direct material suppliers and 12,000 Indirect suppliers. Despite the large number of suppliers, approximately 10% of all suppliers account for around 80% of the total spend. Geographically, approximately half of our suppliers reside in Europe.
Supplier management and Supplier risk and compliance management are cornerstones of our sustainable sourcing roadmap that ensure responsibility in our supply chain. Our Supplier Management focus is on improving economic performance, anticipating risk and initiating approaches with suppliers that are responsible and innovative. It is described in three main processes: Supplier Segmentation, Supplier Performance Evaluations (SPE) and Vendor Value Program.
performance. The majority of our strategic, critical and volume suppliers are part of regular supplier reviews.
• Our Vendor Value Program is aimed at developing capabilities that will enable us to identify, partner with, and manage those suppliers, along the various value chains associated with Kemira's product lines.
Our Supplier risk and compliance management defines
the requirements for suppliers to do business with Kemira, as well as provides tools and processes for mitigating the sustainablity risk with our suppliers (sustainability assessments and audits).
| ST R U CT U R E O F K E M I R A' S S U P P L I E R BAS E | DIRECT MATERIALS | INDIRECT GOODS AND SERVICES |
|---|---|---|
| Number of suppliers, approximately | 1,700 | 12,000 |
| EMEA | 800 (47%) | 6,700 (56%) |
| Americas | 600 (35%) | 3,800 (32%) |
| APAC | 300 (18%) | 1,500 (13%) |
| Number of suppliers that form 80% of the category spend |
~200 (~13%) | ~1,400 (~12%) |
process, to contracting where the commitment to our CoC-SDA is integrated in the contract templates. Finally, we have continuous monitoring in place for those contracts exceeding certain spend thresholds to make sure we are reasonably covered (GRI 308-1: Supplier Environmental assessment; GRI 414-1: Supplier social assessment).
management management Supplier segmentation and prioritization Supplier Performance Evaluations (SPE) Vendor Value Program / Awarding the best performing suppliers Low-risk – opportunity for value creation Med-risk – recommended corrective action High-risk – corrective action Code of Conduct for suppliers, distributors and agents (CoC-SDA) Requirement to do business with Kemira Sustainability assessments and ethical audits with external service providers
Supplier
Risk and compliance
In 2018, we conducted 3 Ethical audits (one follow-up and 2 new audits) with no business stopping results. Some of the common corrective actions were related to Management Systems (training, policy or documentation), Health and Safety (e.g. fire safety, building certificates ), Wages and Working hours (minimum wage, holiday pay, working hours) and Business Ethics (policy, training). Some of the completed improvement actions were related to Human Rights (e.g. Policy), Management Systems (licenses), Health and Safety (fire safety, emergency lights and exists) and Wages and Working hours (minimum wages and time records).
In 2018, as part of our Vendor Value Program, the second round of the Supplier Awards were given to the best performers based on excellence in operative performance, contractual commitment, and in value propositions.
Our values and the principles of our Code of Conduct are the foundation for creating a strong company culture and commitment to people. We aim to offer employees the right mix of opportunities and challenges in a global and diverse working environment. Our result-oriented and collaborative culture empowers employees to solve the challenges of tomorrow. Together, we can have a major impact on our future. Our offering to employees includes talent management, leadership development, performance management and competence development, reward and recognition, and safety and well-being.
Our Voices@Kemira 2018, biennial employee engagement survey, was conducted in April 2018. Employee Engagement was 71% vs. target 69%, 2%-p. above, and 4%-p. higher than in the previous survey in 2015. Strategy and Change was agreed to be the company wide area for action planning and extensive communications have been completed as part of the refreshed strategy communication. Integrity is high at 87% versus the external norm 77%, which is 10%-p. above the external norm. Employee engagement trends have improved from 58% in 2013 and 67% in 2015 to a record high of 71% in 2018. During 2019, we will roll out more agile methods of getting employee feedback and employee engagement action planning. This will impact how we use external benchmark in the future.
Our Talent Management process is well established, providing a structured way to identify and develop employees with potential for leadership positions globally. We continued to build a strong leadership bench to meet our business needs in relation to executing our strategy and driving our long-term growth. We rolled out a new program for identified non-executive leadership talents to fast-track their development and increase their exposure to senior leaders. We are working to ensure that strong development plans are in place for talents and for key position successors. Leadership development plans included on-the-job learning, learning from others, as well as formal training. Our leadership development target 2016–2020 is 1,500 activities, that is on average at least two leadership development activities per people manager. By the end of 2018, we were at 1,533 activities and ahead of the target.
Kemira's performance management process aligns our strategic targets with each employee's personal targets, performance evaluation, competencies and development plans. This process is now well-established within Kemira as part of our leadership culture, and it forms the backbone of our management system. Our employees are encouraged to take an active role in their own learning and development which includes keeping their competencies up to date in relation to their work and their career aspirations at Kemira. As planned in our corporate development project, we designed an agile competence development model for Sales, Marketing and Customer Service, as a systematic approach
to learning and development for customer-facing teams globally. This will be implemented further in 2019-2020. Digital competencies were developed by cross-functional teams and in the adoption of robotics process automation in Kemira.
Our management approach to integrity and responsible business practices is based on our corporate values and our Code of Conduct. These principles demonstrate our commitment to conduct our business in compliance with all applicable laws and regulations, and according to ethical standards.
Our Code of Conduct sets the minimum standards of expected behavior for our employees and business partners. Our internal policies and procedures provide more detailed guidance to steer our daily work and decision-making. Kemira's Code of Conduct was reviewed, updated and approved by the Board of Directors in 2017, followed by an extensive global training and communication campaign during 2017 and 2018. Every employee is expected to comply with Kemira's Code of Conduct. All people managers and leaders are responsible for implementing the Code within their teams. Since 2013, we have required all of our employees to regularly complete the Code of Conduct training, which is currently available in 21 languages. We also train selected employee groups on more specific compliance matters, such as anti-bribery, competition compliance and insider information.
We expect our business partners to follow our Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA) in their business activities. Both of these Code of Conduct
documents, as well as our corporate values can be found at www.kemira.com.
Our Ethics and Compliance Program aims to enhance compliance management at Kemira on a continuous basis. The program addresses all of the following measures taken to manage ethics and compliance risks:
We promote a culture that encourages our employees to speak freely. We actively encourage our employees to contact their managers, local HR, Legal or Ethics and Compliance function to express their concerns and ask questions.
All of our employees also have access to an externally hosted Ethics and Compliance hotline, which is a 24/7 service enabling them to report potential violations of our Code of Conduct or other ethical concerns. All employees can anonymously submit such reports in their own languages, by phone or through a web form, which can be accessed through Kemira's intranet, wherever such channels are not restricted by local legislation. Information about the availability of the Ethics and Compliance hotline is shared to all employees on Kemira's intranet. We provide regular training and communications to our employees on all of our available channels to report concerns and to assure the anonymity of the report. The hotline system and the process of handling the reports are managed by the Ethics and Compliance function.
The email address responsibility(at)kemira.com can be used by third parties to report cases of potential misconduct relating to Kemira or our business partners. This information is available on our website and in the Kemira Code of Conduct for Suppliers, Distributors and Agents.
All allegations of potential violations of our Code of Conduct made in good faith will receive a fair and comprehensive
investigation utilizing internal and / or external assistance. Any reporting of potential Code violations are treated as strictly confidential and anonymous to the fullest extent possible.
were extensively reviewed and documented, and a privacy impact assessment process was implemented. Privacy notices, data processing agreements and global privacy policy were created. A mandatory online training course on GDPR was assigned to over 300 Kemira employees who work in a role which involves processing of personal data, and general awareness-building was continued by providing easy-to-understand information packages on GDPR and privacy compliance to all Kemira employees.
• 11 concerns or allegations of potential Code of Conduct violations were reported via the Ethics and Compliance hotline, or via other channels, such as direct reporting to the Ethics and Compliance function, local HR or to the Internal Audit. A total of 5 cases were closed with merit.
| Total number of cases | 11 | 5 | 4 | 2 |
|---|---|---|---|---|
| Cases reported via other channels | 9 | 4 | 3 | 2 |
| Cases reported via hotline | 2 | 1 | 1 | 0 |
| IN 2018 | CASES | MERIT | WITHOUT MERIT | DEC 31, 2018 |
| C O D E O F C O N D U CT V I O L AT I O N S R E P O R T E D | N U M B E R O F | C LO S E D W I T H | C A S E S C LO S E D | C A S E S A S O F |
| C O N C E R N S O F A LL E G AT I O N S O F P OT E N T I A L | C A S E S | O P E N | ||
| CASES CLOSED WITH MERIT BY ISSUE CATEGORY | NUMBER OF CASES |
|---|---|
| Corruption and bribery | 0 |
| Anti-competitive behaviour | 0 |
| Employee relations and fair treatment | 3 |
| Harrassment | 0 |
| Transactions and company records | 2 |
| GRAND TOTAL | 5 |
Kemira generates economic value from expertise, products and sustainable solutions, enabling our customers to improve their water, energy and raw material efficiency. Kemira distributes the generated economic value to various stakeholders. This includes suppliers and service providers through payments for raw materials and services, employees through compensation and benefits, capital providers through dividends and interest payments, public sector through taxes, and society through local community projects, sponsorship and donations. Taxes have a significant impact on our businesses, financing and growth opportunities. Kemira's approach to tax is to support responsible business performance in a sustainable way. A separate tax footprint report is available at www.kemira.com > Company > Investors.
The economic value retained is reinvested in the company for capital investments, R&D and technology development. The economic value retained increased to EUR 123 million (118 in 2017).
| STAKEHOLDER | ECONOMIC VALUE, EUR MILLION | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| Direct economic value generated: Revenues | ||||||
| Customers | Income from customers on the basis of products and services sold, and financial income |
2,614 | 2,453 | 2,386 | 2,350 | 2,100 |
| Direct economic value distributed | ||||||
| Suppliers | Payments to suppliers of raw materials, goods and services |
2,001 | 1,831 | 1,701 | 1,709 | 1,684 |
| Employees | Employee wages and benefits | 352 | 362 | 364 | 356 | 283 |
| Investors & lenders | Dividends, interests paid and financial expenses | 114 | 117 | 114 | 113 | 112 |
| Government & Public sector |
Corporate income taxes | 24 | 25 | 23 | 12 | 33 |
| Economic value retained | 123 | 118 | 184 | 160 | -12 |
Community investments were EUR 0,1 million in 2018 through sponsoring and local community participation
by region %
Corporate income taxes (excluding deferred taxes) Customs duties Property taxes
EMEA LOCATION % by region %
EUR million
EMEA Americas APAC
In 2015, Americas was refunded the overpaid taxes of 2014.
Kemira conducted a global ethics and compliance risk assessment in 2016, covering key business operations and functions in all regions. Anti-corruption was one of the key focus areas in the assessment and the results of the assessments were utilized in Kemira's ethics and compliance and internal audit plans for 2017 and 2018. No significant risks related to corruption were identified through ethics and compliance risk assessment or internal audits in 2018.
Kemira's principles for anti-corruption are included in the Kemira Code of Conduct and in the Kemira Group Gifts, Entertainment and Anti-bribery Policy. Both documents are available to all employees on Kemira's intranet, and the Code of Conduct is also publicly available at www.kemira.com.
Kemira's Code of Conduct has been approved by the Board of Directors, and as part of our mandatory and regular Code of Conduct training our anti-corruption principles are communicated to all of our employee groups and regions on a regular basis. All members of Kemira's Board of Directors have been trained on our anti-corruption principles.
Kemira provides mandatory anti-bribery training to its white collar employees, who need to have a comprehensive understanding of Kemira's anti-corruption principles. The table below demonstrates the scope of the training, with a breakdown by employee category and regions.
We expect our suppliers and other business partners to conduct their business with integrity and commit to Kemira's Code of Conduct for Suppliers, Agents and Distributors (CoC-SDA) in their business activities with Kemira. The CoC-SDA states that Kemira expects its business partners to adhere to local legislation and avoid corruption in all its forms. We
aim to communicate the CoC-SDA to all of our suppliers, agents and distributors. All of our suppliers (engaged with a SAP Purchased Order) receive a written reference to Kemira's CoC-SDA as part of the Kemira general terms of purchase on the back the Purchase Order. Our anti-corruption policy has been communicated to all of them through the CoC-SDA.
| NUMBER OF EMPLOYEES | % OF EMPLOYEES | |||
|---|---|---|---|---|
| NUMBER OF PERMANENT | RECEIVED TRAINING ON | RECEIVED TRAINING ON | ||
| EMPLOYEES, NOT ABSENT | ANTI-CORRUPTION | ANTI-CORRUPTION | ||
| White collars | 875 | 842 | 96 | |
| Americas | Blue collars | 676 | 0 | 0 |
| White collars | 443 | 410 | 93 | |
| APAC | Blue collars | 329 | 0 | 0 |
| White collars | 1,577 | 1,506 | 95 | |
| EMEA | Blue collars | 931 | 0 | 0 |
| TOTAL | 4,831 | 2,758 | 57 |
| TOTAL NUMBER SUPPLIERS* THAT | PERCENTAGE OF SUPPLIERS* THAT | ||
|---|---|---|---|
| OUR ANTI-CORRUPTION PRINCIPLES | OUR ANTI-CORRUPTION PRINCIPLES | ||
| REGION | TOTAL NUMBER OF SUPPLIERS* | HAVE BEEN COMMUNICATED TO | HAVE BEEN COMMUNICATED TO |
| EMEA | 7,500 | 7,500 | 100% |
| Americas | 4,400 | 4,400 | 100% |
| APAC | 1,800 | 1,800 | 100% |
| TOTAL | 13,700 | 13,700 | 100% |
*The numbers include suppliers engaged with a SAP Purchase Order. In addition to SAP transactions, some small purchases are processed via the travel claim process.
There were no confirmed incidents of corruption or public legal cases regarding corruption in 2018.
In 2018, Kemira had the following pending or completed legal actions initiated under national or international laws designed for regulating anti-competitive behavior, anti-trust, or monopoly practices:
Kemira continued to defend itself against a legal action filed by CDC PROJECT 13 SA against Kemira Chemicals Oy (former Finnish Chemicals Oy) in Amsterdam, the Netherlands, related to an alleged historical infringement of competition law in the sodium chlorate business by Finnish Chemicals Oy between 1994 and 2000. Kemira acquired Finnish Chemicals in 2005.
In the United States, three class action lawsuits (only two active) and ten individual suits have been filed during 2015–2018, based on alleged violations of anti-trust laws relating to the sale of certain water treatment chemicals. In those lawsuits, Kemira has been named as a defendant among other defendants. The ten individual legal suits are opt-out suits, whereby the plaintiffs opted out of the direct liquid aluminate sulfate class actions. According to Kemira's assessment, all of these class actions and individual lawsuits against Kemira lack merit.
The renewable materials used include mainly starches, tall oil, and fatty acid derivatives.
The recycled input materials are industrial by-products and recycled materials from external partners. These materials include mainly inorganic materials such as scrap iron, ferrous sulphate and spent pickling liquor bath. Industrial by-products are mainly from smelters, as well as steel and metal manufacturing. Inorganic byproducts and recycled materials are mainly used in the production of inorganic coagulants, which are used in water treatment, and in which category recycled input material may account for up to 70–80% of all raw materials used. In 2018, approximately 21% (23% in 2017) of raw materials across all Kemira business segments were recycled input materials. In 2018 and 2017, the use of recycled input materials reduced due to the fire at a major supplier in Finland, causing significant drop in ferrous sulphate supplies.
| MATERIALS, million tonnes | GRI disclosure | 2018 | 2017* | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| TOTAL MATERIALS USED | 301-1 | 3,329 | 3,510 | 3,536 | 3,293 | 3,276 |
| Non-renewable materials | 301-1 | 3,268 | 3,448 | 3,458 | 3,220 | 3,217 |
| Renewable materials | 301-1 | 0,061 | 0,062 | 0,078 | 0,072 | 0,059 |
| Share of renewable materials, % | 301-1 | 1.8% | 1.8% | 2.2% | 2.2% | 1.8% |
| RECYCLED INPUT MATERIALS USED Industrial by-products and recycled material from external partners |
301-2 | 0,710 | 0,799 | 0,945 | 0,904 | 0,897 |
| Share of recycled materials, % | 301-2 | 21.3% | 22.8% | 26.7% | 27.5% | 27.4% |
*Data corrected due to more acccurate information available
Energy balance
E N E R GY C O N S U M P T I O N BY GEOGRAPHY IN 2018
$$
\text{Final}46\% \quad \text{USA} 28\% \quad \text{Center} 26\%
$$
Kemira 2018 GRI Disclosures | 29
OUR PERFORMANCE INDICATORS | Environmental
GRI 302-1: Energy consumption within the organization GRI 302-3: Energy intensity GRI 302-4: Reduction of energy consumption
Energy costs amount to approximately 10% of our total sourcing spend. By continually improving energy efficiency at manufacturing sites, we are consistently reducing our energy usage and equivalent costs.
In 2018, our operations in Finland accounted for 46% of our total energy consumption. The USA accounted for 28%, and other countries 26%.
Approximately 90% of our total energy consumption is used by 14 large manufacturing sites. A substantial portion of our energy management activities is focused on these most energy-intensive sites, which include seven sodium chlorate manufacturing plants in Finland, USA, Uruguay and Brazil.
Electricity is our most important energy source, accounting for 69% of the total energy input. Sodium chlorate plants purchase 90% of the electricity. Therefore, the management of volatile electricity prices play an important role in capacity utilization planning. The global high demand for pulp increased the need for sodium chlorates as pulp bleaching agents, and contributed to the maintaining of our high level of investments in chlorate production.
| ENERGY BALANCE, GWh | GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| TOTAL FUEL AND PURCHASED ENERGY INPUT | 4,971 | 4,901* | 4,731* | 4,144* | 4,124* | |
| Consumed fuel as energy source | 850 | 852* | 897 | 582* | 542 | |
| Non-renewable | 302-1a | 850 | 852* | 897 | 582* | 542 |
| Renewable | 302-1b | 0 | 0 | 0 | 0* | 0 |
| Purchased electricity | 302-1c | 3,446 | 3,322 | 3,135* | 2,935 | 2,828* |
| Non-renewable | 2,560 | 2,467 | 2,573* | 2,301 | 2,288* | |
| Renewable | 887 | 855 | 562* | 634 | 541* | |
| Purchased heat and steam | 302-1c | 675 | 727 | 699 | 627 | 754* |
| Non-renewable | 268 | 323 | 311 | 262 | 150* | |
| Renewable | 407 | 404 | 430 | 365 | 603* | |
| TOTAL FUEL AND PURCHASED ENERGY INPUT BY SOURCE |
302-1a, b | 4,971 | 4,901* | 4,731* | 4,144* | 4,124* |
| Non-renewable | 3,678 | 3,642* | 3,781* | 3,137* | 2,980* | |
| Renewable | 1,294 | 1,259 | 950* | 1,007* | 1,144* | |
| TOTAL ENERGY SOLD | 528 | 479* | 492* | 465* | 438* | |
| Heat1 sold off-site |
302-1d | 448 | 401 | 414 | 390 | 366 |
| Electricity sold off-site | 302-1d | 80 | 78** | 78** | 76** | 72** |
| TOTAL ENERGY CONSUMPTION2 | 302-1e | 4,443 | 4,421* | 4,239* | 3,679* | 3,686* |
| CHANGE IN TOTAL ENERGY CONSUMPTION3 | 302-4 | 22 | 183* | 560* | -7* | -400* |
| Production volume, 1,000 tonnes | 5,310 | 5,164*** | 5,028 | 4,845* | 4,587 | |
| ENERGY INTENSITY, GWh per 1,000 tonnes of production4 302-3 | 0.8 | 0.9* | 0.9 | 0.8 | 0.8 |
* Minor updates to data were provided by sites during 2018 data collection.
** Values were adjusted due to information obtained from one site that did not previously identify electricity sold off-site.
*** Value was adjusted due to one site that over-reported its production data.
During 2018, we continued upgrading our E3plus (Energy Efficiency Enhancement) program established in 2010. The E3plus program aims to reduce the overall specific energy consumption, measured as kWh per tonne of product, at each of our manufacturing sites.
The key focus areas of the E3plus program are:
During 2017-2018, we empowered our global energy management team (EMT), whose members represent the top management of our manufacturing sites, as well as our global energy sourcing management. The EMT coordinates, steers and supports energy management activities across all regions.
Kemira has joined the voluntary national Energy Efficiency Agreement in Finland ("Energiatehokkuussopimus"), which is a part of EU's response to the Paris Climate Agreement, for the period 2017-2025 (EU-level program). Until now, over 20 implemented energy savings projects have been reported to the National Energy Authority ("Energiavirasto").
Our energy efficiency measures and activities have a special focus on sites, which have the highest energy consumption. Site-specific energy efficiency targets are defined for the largest energy consuming sites, based on energy consumption baseline data, the findings of E3 Energy Reviews, and the availability of resources.
In 2018, we continued to focus on large-scale manufacturing processes, with investments made in more energy efficient equipment and production lines. The continuous modernization of the process equipment used in our most energy-intensive sodium chlorate plants, especially those in Joutseno (Finland), Äetsä (Finland), Fray Bentos (Uruguay) and Ortigueira (Brazil), has enabled us to achieve and sustain a desired energy efficiency level. Furthermore, Kemira Oyj's Energy Management System in Europe and the manufacturing sites in Helsingborg (Sweden), and Äetsä and Joutseno (Finland), San Giorgio (Italy) and Fredrikstad (Norway), have been certified to ISO 50001.
Energy savings were additionally achieved during 2018 through the implementation of 25 projects (23 in 2017) across Kemira's operations. The resulting energy savings totaled 19,175 MWh (16,296 MWh in 2017) with cost savings of EUR 0.6 million (EUR 0.6 million in 2017). The cumulative cost savings that were achieved through the implementation of 505 such initiatives completed globally since 2010, now total EUR 10.4 million.
Our Energy Efficiency Index enables us to monitor the trend of energy efficiency improvement on a consolidated basis.
The Kemira Energy Efficiency Index measures the ratio of energy use and production normalized to a 2012 benchmark for our 14 large manufacturing sites covering approximately 90% of energy consumption (14 in 2017). The index is not affected by changes in production volumes but may be affected by the product mix.
Greenhouse gas emissions
Emissions from fuels to produce energy in sites owned and controlled by Kemira
Emissions from purchased electricity, heat and steam consumed at Kemira's manufacturing sites
Emissions from purchased raw materials, fuel and energy related activities, upstream transportation, downstream transportation and distribution and other downstream activities
E M I S S I O N S BY G E O G R A P H Y I N 2 0 1 8
Scope 1 and Scope 2, market-based
$$
\text{Final} \textbf{41\%} \quad \text{USA} \textbf{41\%} \quad \text{Other} \quad \text{17\%}
$$
Kemira's GHG emissions are primarily carbon dioxide (CO2), and negligible emissions of methane (CH4) and nitrous oxide (N2O). Kemira estimates GHG emissions using factors in terms of CO2 equivalent (CO2eq.) and does not specifically estimate and report mass emissions of CH4 and N2O since CO2 comprises over 99% of CO2eq. emissions.
The majority of the electricity used at our Kemira manufacturing sites is obtained from external providers. Many Kemira facilities consume steam and heat generated on-site.
manufacturing sites are from the following sources:
Indirect (Scope 2) GHG emissions include, but are not limited to, the CO2 emissions from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by an organization. Furthermore, many sites purchase or acquire electricity, heating, cooling, and steam resources from either the local municipal authority or from a separate manufacturing facility located within the same industrial complex.
Other indirect (Scope 3) GHG emissions are a consequence of Kemira's business activities, but occur from sources not owned or controlled by our company.
Scope 1 emissions in 2018 were consistent with 2017 emissions despite an increase in production compared to 2017. Kemira maintained emissions at the 2017 levels through the use of less carbon-intensive fuels where possible.
Scope 2 emissions also remained consistent with 2017 levels due to continued improvements in energy efficiency and a higher share of purchased energy with lower GHG emissions levels (renewable sources) compared to 2017.
Scope 3 emissions in 2018 were consistent with previous year´s emissions within the level of accuracy associated with the calculation methodology. Purchased goods and services (including capital goods) cover 61% (50%), and transportation and distribution emissions (upstream and downstream) 18% (32%) of our Scope 3 emissions. Waste generated and transported by our plants increased to 5% (4%) of overall Scope 3 emissions.
The overall GHG emissions intensity is consistent with historical levels despite continued increases in production (3% increase in production compared to 2017, and a 16% increase in production compared to 2014).
GRI 305-1: Direct (Scope 1) GHG emissions GRI 305-2: Energy indirect (Scope 2) GHG emissions GRI 305-3: Other indirect (Scope 3) GHG emissions GRI 305-4: GHG emissions intensity GRI 305-5: Deduction of GHG emissions
| GREENHOUSE GAS (GHG) EMISSIONS, CO2 eq 1,000 tonnes |
GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| TOTAL GHG EMISSIONS1 | 2,633 | 2,872* | 2,684* | 2,665* | 2,517* | |
| Direct (Scope 1) GHG emissions2a | 305-1 | 158 | 153* | 162* | 169 | 144 |
| Change | 5 | -9 | -7 | 25 | 7 | |
| Biogenic Direct (Scope 1) GHG emissions2b | 305-1c | 0 | 0 | N/A | N/A | N/A |
| Change | 0 | N/A | N/A | N/A | N/A | |
| Energy indirect (Scope 2) emissions: market-based3a | 305-2 | 778 | 799* | 792* | 786* | 792* |
| Change | -21 | 8* | 6* | -6* | -109* | |
| Energy indirect (Scope 2) emissions: location-based3b | 1,044 | 1,048* | 999 | 994* | N/A | |
| Change | -4 | 49* | 5* | N/A | N/A | |
| Other indirect emissions: Scope3 | 305-3a | 1,697 | 1,920 | 1,730* | 1,710 | 1,581 |
| Change | -233 | 230* | 20* | 129* | -28* | |
| Other indirect emissions: Scope 3 Biogenic emissions4b | 305-3c | 0 | 0 | N/A | N/A | N/A |
| Change | 0 | N/A | N/A | N/A | N/A | |
| CHANGE IN TOTAL GHG EMISSIONS | 305-5 | -262 | 186* | 19* | 149* | -134* |
| Production volume, 1,000 tonnes | 5,310 | 5,164** | 5,028 | 4,845* | 4,587 | |
| GHG EMISSIONS INTENSITY, tCO2 per tonnes of production5 |
305-4 | 0,5 | 0.6** | 0.5 | 0.6 | 0.6* |
* Minor updates to data were provided by sites during 2018 data collection.
** Value was adjusted due to one site that over-reported its production data.
Scope1 + Scope 2 market-based + Scope 3.
2a. GHG emissions from sources that are owned or controlled by Kemira (Scope 1 of the WRI/WBCSD GHG Protocol). GHG emissions are calculated as CO2 eq which includes CO2 , CH4 , N2 O, HFCs, PFCs, SF6 , NF3 .
CO2 eq which includes CO2 , CH4 , N2 O, HFCs, PFCs, SF6 , NF3 . The sources for the emission factors used are the IEA, the UK government's Department for Environment, Food and Rural Affairs (DEFRA), Motiva Ltd. and energy utility companies.
3b. Location based Scope 2 emissions were calculated first time in 2015.
4a. GHG emissions from Kemira's value chain (Scope 3 of WRI/ WBCSD GHG Protocol). Minor changes have occurred for previous years as more updated data was available for this report.
4b. GRI Standard has introduced requirement of disclosure of biogenic emissions, which Kemira started to report in 2017.
During 2018 we have reviewed the assumptions for categories 1. Purchased goods and services; 4. Upstream transportation and distribution; and 9. Downstream transportation and distribution. Based on more accurate data on transportation and distribution, we were able to calculate the category 4 and 9 emissions more accurately.
| OTHER INDIRECT (SCOPE 3) GHG EMISSIONS BY CATEGORIES, CO2 eq 1,000 tonnes |
GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| TOTAL SCOPE 3 EMISSIONS | 305-3d | 1,697 | 1,920 | 1,730 | 1,710 | 1,580 |
| 1. Purchased goods and services | 1,040 | 960 | 840 | 870 | 760 | |
| 2. Capital goods* | * | * | * | * | * | |
| 3. Fuel and energy related activities | 240 | 240 | 230 | 230 | 240 | |
| 4. Upstream transportation and distribution | 110*** | 240 | 220 | 200 | 200 | |
| 5. Waste generated in operations | 80 | 80 | 40 | 20 | 20 | |
| 6. Business travel | 5** | 5 | 10 | 10 | 10 | |
| 7. Employee commuting | 10** | 10 | 10 | 10 | 10 | |
| 8. Upstream leased assets (leased offices) | 10** | 10 | 10 | 10 | 10 | |
| 9. Downstream transportation and distribution | 200*** | 370 | 370 | 350 | 330 | |
| 11. Use of sold products | * | 0 | 0 | 0 | 0 | |
| 12. End-of-life treatment of sold products | 2 | 2 | 2 | 0 | 0 |
* Emissions of Category 2: Capital goods are included in Category 1: Purchased goods and services.
** Categories 6-8 were not calculated in 2018 because making less than 2% in earlier years. 2018 was approximately at the same level as historical years.
*** The average distance for water transportation decreased in 2018 compared to 2017.
Scope 3 was restated in 2015 due to more accurate information available. Major changes occurred for years 2012–2014 as a more detailed calculation was carried out. Category 12 End-of-life treatment of sold products changed significantly. Category 12 covers all products sold. If a product is not known to have a new lifecycle, it is classified as waste. Category 11 emissions were estimated to be zero or close to zero, as Kemira does not sell combustible fuels, products that form GHG emissions during use, or products that contain GHG.
The calculation is based on the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and a supporting guidance document Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. Scope 3 emissions have been calculated since 2012. GHG emission are calculated as CO2 eq. The sources for the emission factors used include the guidance document for the Chemical Sector, the DEFRA, the IEA, Ecoinvent, CEFIC and ECTA. Data covers all of Kemira's production sites according to Kemira consolidation rules. The margin of error for Scope 3 calculations is +/- 20%.
NOTE: Category 10 Processing of sold products is not calculated because it cannot be reasonably tracked; Category 13 Downstream leased assets is not relevant to chemical sector; Category 14 Franchises is not relevant to chemical sector; Category 15 Investments: No information available."
Nitrogen oxides (NOx) emissions increased by approximately by 13% compared to 2017 and decreased by approximately 11% since 2014. Sulfur oxides (SOx) emissions has decreased by approximately 9% from 2017 and approximately 19% since 2014.
| RELEASES INTO AIR, tonnes | GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| Nitrogen oxides (NOx)1 | 305-7a.i | 182 | 161 | 160 | 194 | 206 |
| Sulfur oxides (SOx)2 | 305-7a.ii | 70 | 77 | 84 | 83 | 86 |
| Volatile organic compounds (VOC)3 | 305-7a.iv | 649 | 574* | 783 | 430 | 661 |
| Other air emissions4,5 | 305-7a.vii | 349 | 99 | 173 | 55* | 82* |
| Particulates (PM) | 305-7a.vi | 16 | 18 | 11 | 14 | 16 |
| Persistent organic pollutants (POP)5 | 305-7a.iii | 0 | 0 | N/A | N/A | N/A |
| Hazardous air pollutants (HAP)5 | 305-7a.v | 10 | 13 | N/A | N/A | N/A |
| Ozone-depleting substances6 | 305-6 | 0 | 0 | 0 | 0 | 0 |
* Minor updates to data were provided by sites during 2018 data collection. The figures presented are based on data collected directly from Kemira's sites.
GRI 303-1: Water withdrawal by source GRI 303-3: Water recycled and reused GRI 306-1: Water discharge by quality and destination
Through our EHSQ Policy, we strive to minimize water consumption and minimize the negative impact of water discharge activities on the quality of receiving water bodies. Kemira's manufacturing processes require water primarily for use as cooling water and process water. Cooling water is approximately 90% of the total water withdrawal.
Where possible, water is recycled and / or reused at our sites to reduce water consumption. We are continuously evaluating opportunities to decrease water consumption through process optimization projects, for example, in all of our upgrade and new production line projects.
Wastewater and cooling water discharges at the manufacturing sites are subject to regulatory and permitting requirements. Wastewater is treated in accordance with local legislation and regulations. Wastewater generated from Kemira's manufacturing processes are primarily treated in external wastewater treatment plants prior to discharge to a waterbody. Cooling water does not usually require treatment.
In 2018, there were no signifcant fines or non-conformities with regards to environmental laws or regulations or claims from external wastewater treatment plant authorities against Kemira.
Kemira conducted a water risk assessment for the first time in 2014, to define the potential impact both to our operations due to water scarcity, and to local water resources due to
our operations. The assessment was carried out at 54 sites globally using the Global Water Tool, developed by the World Business Council for Sustainable Development (WBCSD) to identify a site's location in extremely water scarce areas. The GEMI Local Water Tool was used to identify site-specific water risks. The 2014 results indicated that Kemira's operations pose a low risk to local water resources, while water scarcity may pose a potential business discontinuity risk to Kemira operations at one manufacturing site.
In 2017, Kemira conducted a second assessment, using the World Resources Institute's Aqueduct Water Risk Atlas, a global mapping tool to identify water risks. The mapping covered 63 manufacturing sites. The results indicated that our withdrawals do not significantly affect water sources for the following reasons:
The total water withdrawal increased by approximately 2% from 2017 and decreased by approximately 4% compared to 2014. The water withdrawal intensity (m3 per tonnes of production) decreased by approximately 1% from 2017 and by approximately 17% compared to 2014.
Chemical oxygen demand (COD) discharges decreased by approximately 10% from 2017. Biological oxygen demand (BOD) increased slightly from 2017 and Nitrogen (N) and Phosphorus (P) discharges remained at the same levels as in 2017. The discharge of suspended solids increased to five tonnes from four tonnes in 2017. The discharge of other (e.g., heavy metals, chlorides) pollutants increased by approximately 12% from 2017.
| OVERVIEW OF WATER FLOWS, million m3 | GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| WATER WITHDRAWAL BY SOURCES, TOTAL | 303-1 | 99.7 | 97.7 | 102 | 98 | 104 |
| Sources of process water | 10.2 | 8.1 | 8.5 | 8.4 | 7.5 | |
| Surface water | 2.3 | 3.9 | 4.2 | 4.2 | 3.7 | |
| Ground water | 1.2 | 1.0 | 1.1 | 1.3 | 1.1 | |
| Rainwater | 0.1 | 0.0 | 0.1 | 0.0 | 0.0 | |
| Waste water from another organization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Municipal water suppliers | 2.6 | 2.4 | 2.4 | 2.4 | 2.2 | |
| Other | 4.0 | 0.7 | 0.8 | 0.5 | 0.5 | |
| Sources of cooling water | 89.6 | 89.6 | 93.5 | 89.4 | 96.7 | |
| Surface water | 83.3 | 83.7 | 88.0 | 83.6 | 93.3 | |
| Ground water | 2.0 | 2.0 | 1.6 | 2.3 | 0.3 | |
| Rainwater | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Waste water from another organization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Municipal water suppliers | 0.2 | 0.2 | 0.1 | 0.2 | 0.2 | |
| Other | 4.0 | 3.7 | 3.7 | 3.3 | 2.9 | |
| WATER RECYCLED AND REUSED, TOTAL | 303-3a; 306-1a | 3.6** | 3.2** | 3.3** | 3.5** | 3.0** |
| Water recycled back in the same process | 0.1** | 0.2** | 0.1** | 0.4** | 0.1** | |
| Water recycled in a different process, but within the same facility | 3.3 | 3.0 | 3.1 | 3.1 | 0.0 | |
| Water reused in another facility | 306-1a.iii | 0.1 | 0.1 | 0.1 | 0.1 | 2.9 |
| Share of total water recycled and reused, %1 | 303-3b | 4% | 3% | 3% | 4% | 3% |
| WATER DICHARGES BY DESTINATION, TOTAL | 306-1a.i | 88.2*** | 88.2*** | 92.2*** | 86.0*** | 95.7*** |
| External treatment of wastewater3 | 1.8 | 1.6 | 1.5 | 1.5 | 1.6 | |
| Own treatment of wastewater3 | 0.6 | 0.6 | 0.5 | 0.5 | 0.5 | |
| Discharged with no treatment required (e.g. cooling water) | 85.9 | 86.0 | 90.2 | 83.9 | 93.5 | |
| Unspecified water losses2 | 7.9 | 6.3 | 6.6 | 8.3 | 5.5 | |
| Production volumes, 1,000 tonnes | 5,310 | 5,164 ^ | 5,028 | 4,845* | 4,587 | |
| WATER WITHDRAWAL INTENSITY, m3 per tonnes of production |
18.8 | 18.9* | 20.3 | 20.2 | 22.7 |
The calculations have been made according to GRI Standards. The figures presented are based on data collected from Kemira's sites.
Source of water used for purposes besides process and cooling are not included in the water balance since they comprise less than 1% of total water withdrawal.
*Minor updates to data were provided by sites during 2018 data collection.
** The definition for this category was redefined to exclude the water included in the product at certain sites
*** The values for this category were reclassified to this category for one site
^ Value was adjusted due to one site that over-reported its production data.
Water recycled and reused is calculated as a percentage of the total water withdrawal as specified in Disclosure 303-1.
Balance = Unspecified water losses such as water evaporated. Calculated as Water withdrawal minus Water reused and recycled minus Water discharged. Kemira aims to have a minimum 90% accuracy on the water balance. First reported in 2014 when data for discharge of cooling water became available.
Further description of volume by destination (e.g., river, sea) is not provided since the values are typically less than 3% of total.
| TOTAL WATER DISCHARGES BY QUALITY, tonnes | GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| Chemical Oxygen Demand (COD) | 306-1a.ii | 34 | 38 | 34 | 16 | 15 |
| Biological Oxygen Demand (BOD) | 306-1a.ii | 1 | 0 | 0 | 1 | 2 |
| Nitrogen (N) | 306-1a.ii | 3 | 3 | 3 | 2 | 2 |
| Phosphorus (P) | 306-1a.ii | 1 | 1 | 1 | 1 | 1 |
| Suspended solids | 306-1a.ii | 5 | 4 | 1 | 2 | 5 |
| Other (e.g., heavy metals, chlorides)1 | 306-1a.ii | 326 | 291 | 308 | 9 | 1 |
| Total Organic Carbon (TOC)2 | 306-1a.ii | 1 | 1 | N/A | N/A | N/A |
The calculations have been made according to GRI Standards. Data limited to wastewater discharges from own treatment. Kemira reports discharge quality data only from sites required by environmental laws and regulations or other requirements to monitor these parameters.
In 2016, these releases consisted of chlorides at some sites. The increase in tonnes in the "Other" category is related to primarily to one site experiencing a significant increase in discharge volume compared to 2015 and to the availability of more accurate analytical data.
First reported in 2017.
Through our EHSQ Policy, Kemira strives to minimize the amount of industrial and municipal waste generated through consistent material flow management processes and improvements to the efficiency of manufacturing processes. Waste in Kemira is disposed, recycled and / or reused in compliance with statutory requirements.
Ten manufacturing sites generate approximately 89% of the hazardous waste. In 2018, one site alone accounted for 57% of total hazardous waste generated, due to disposal of stormwater potentially impacted by acrylamide. Disposal of stormwater at the site as hazardous waste is in accordance with local legislation and regulations. The significant share of certain sites to generate hazardous waste has been recognized and analysis for different solutions to decrease the generation of hazardous waste is under process. The total amount of hazardous waste increased by approximately 10% from 2017 primarily due to increase in generation of stormwater at the site described above and also due to increased production and improved data collection and reporting.
Total amount of non-hazardous waste increased by approximately 19% from 2017. This is primarily due to an increase in generation of non-hazardous waste at one site (waste solution and sludge with a large share of water) that accounted for approximately 46% of total non-hazardous waste generated in Kemira, as well as improved data collection and reporting.
| WASTE, 1,000 tonnes | GRI disclosure | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|
| HAZARDOUS WASTES, total | 306-2a | 52.4 | 47.8 | 49.3* | 75.2* | 41.7 |
| Off-site landfill | 1.8 | 1.9 | 1.1 | 1.3 | 1.2 | |
| Off-site incineration | 1.3 | 6.4* | 5.1* | 2.6 | 2.2 | |
| Off-site recycling | 10.2 | 6.3 | 7.4* | 9.6 | 6.6 | |
| Off-site reuse | 0.0 | |||||
| Off-site deep well injection1,2 | 29.9 | 26.3 | 28.2 | 54.8 | 28.1 | |
| Off-site recovery, including energy recovery | 2.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other off-site treatment2 | 6.7 | 6.8 | 7.5 | 6.9 | 3.6 | |
| On-site incineration | 0.0 | 0.0* | 0.0* | 0.0 | 0.0* | |
| On-site landfill | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| NON-HAZARDOUS WASTES, total | 306-2b | 73.8 | 62.2 | 31.3* | 35.4 | 27.6* |
| Off-site landfill | 13.6 | 19.2 | 12.6* | 10.9* | 11.6 | |
| Off-site incineration | 0.4 | 1.4* | 1.6 | 1.3 | 1.2* | |
| Off-site recycling | 9.1 | 4.5 | 7.4* | 14.9 | 11.8 | |
| Off-site reuse | 6.7 | |||||
| Off-site recovery, including energy recovery | 1.1 | 0.0 | N/A | N/A | N/A | |
| Other off-site treatment | 42.4 | 36.6 | 9.7 | 8.2 | 3.1 | |
| Off-site composting1 | 0.5 | 0.5 | N/A | N/A | N/A | |
| On-site incineration | 0.0 | 0.0 | 0.0 | 0.0 | 0.0* | |
| On-site landfill | 0.0 | 0.0 | 0.0* | 0.0* | 0.0 | |
| TOTAL WASTE DISPOSAL | 126.2 | 110.0 | 80.6* | 110.6 | 69.4 |
*Minor updates to data were provided by sites during 2018 data collection
New disposal method reported starting in 2017.
Kemira has updated these values to account for the impact of the new disposal methods introduced in 2017. For example,
"Other off-site treatment" included deep well injection during 2013-2016. The values in this table will differ from previous reports.
A global Spill Prevention Standard was approved in March 2017. Kemira has internal KPIs with annual targets for Loss of Primary Containment (LOPC) and Environmental Incidents in 2018. Kemira follows an Incident Reporting Standard that defines incident types and establishes the minimum requirements for incident reporting and classification of all EHSQ incidents. This standard applies to all Kemira employees, contractors, temporary and supplemental staff at all Kemira and / or customer locations.
Kemira's definition of a Major Incident includes an environmental incident resulting in one or more of the following:
In 2018 there were nine Major Incidents according to Kemira's Incident Reporting Standard that involved environmental releases, compared to 12 in 2017.
• Transportation incidents (including related loading and unloading activities) accounted for two significant spills. One occured at our manufacturing site and one at a customers site. The total volume of the transportation incidents was approximately 3 tonnes.
• Manufacturing incidents accounted for seven significant spills. Six occured at our manufacturing sites and one at an offsite storage location. The total volume of the significant spills at manufacturing plants were approximately 18 tonnes.
The significant spills did not have a permanent or significant impact on the environment beyond the remediated material. These spills were not reported in Kemira's Financial Statements.
In 2018, approximately 52,000 tonnes of hazardous waste were transported by, or on behalf of Kemira, to external suppliers not owned by Kemira. Hazardous waste was not imported or treated by Kemira in 2018.
Our Fray Bentos, Uruguay site does not have a treatment or disposal option within the country for some of its hazardous wastes. Therefore, it must be shipped to the EU for disposal. In 2018, there were 34 tonnes of hazardous waste exported from the Fray Bentos facility. In addition, 2 tonnes of hazardous waste from the Oulu site, 0.5 tonnes each from the Europoort site and the Helsingborg site were exported to the UK to be disposed. In total, less than 1% of the hazardous waste generated in 2018 (less than 1% in 2017) by Kemira was shipped internationally.
Kemira's integrated EHSQ management system includes an Auditing Standard to verify conformance with Kemira policies and standards, ISO/OHSAS standards, and EHSQ legal compliance. Kemira regularly conducts EHSQ compliance audits at manufacturing sites, research and development laboratories, and offices. Audits are performed by Kemira's independent internal auditing team and external consultants. Kemira's robust integrated EHSQ management system requires all sites to report non-compliances to the group's Global EHSQ Team using our incident reporting program (Synergi Life).
The following summarizes the significant fines or noncompliances with environmental laws or regulations at Kemira manufacturing sites in 2018:
One inorganic coagulant facility in the United States was cited for failure to submit the required notifications to the local authority following two incidents at the facility. The local authority issued a monetary sanction of approximately EUR 16,000. However, Kemira was able to provide evidence that the required notifications were provided within the required time and the notice of violation and monetary sanction were rescinded.
One inorganic coagulant facility in Canada received a warning letter from the local authority for failure to submit a timely report regarding an air emissions release caused by a contractor working at the site. The site responded to the requests contained in the warning letter within the specified time period. No further action was taken by the local authority.
The procedures to monitor legal requirements vary in Kemira, depending on the countries of operation and site operations. In 2018, Kemira started to implement new, more effective online tools at some of the sites, to improve the Global EHSQ Team's ability to monitor the compliance status at the sites. Use of the effective online tools will be extended in 2019.
• Kemira maintained environmental protection costs at approximately 0.8% of revenue (0.9% 2017) despite an approximately 3% increase in production volume compared to 2017.
At the end of 2018, Kemira employed 4,915 people (4,732). The employee distribution by region shows that 52% (54%) of Kemira's total workforce were employed in EMEA, and 32% (32%) in the Americas. The number of employees have increased by 183 (compared to a decrease of 86 during 2017). The increase is mainly due to new sites and capacity expansions in manufacturing operations. Workers who are legally recognized as selfemployed, or individuals other than the ones in Kemira's payroll are not counted on these numbers.
Kemira is using external service providers (contractors) which work at Kemira locations. These services cover, for example cleaning, snow blowing, engineering & technology projects, and maintenance work. We do not record the number of people but follow the contractor hours as this information is included in the workplace safety indicator TRIF. In 2018, there was approximately 2.1 million hours which equals to about 1,100 FTE (Full Time Equivalents) when assuming 7.5 hours per day and 250 working days per year.
| 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|
| TOTAL NUMBER OF EMPLOYEES* | 4,915 | 4,732 | 4,818 | 4,685 | 4,248 |
| Females, % | 26% | 26% | 26% | 26% | 26% |
| Males, % | 74% | 74% | 74% | 74% | 74% |
| White collar, % | 60% | 62% | 61% | 62% | 58% |
| Blue collar; % | 40% | 38% | 39% | 38% | 42% |
* At year end
| 2018 | 2017 | 2016 | 2015 | 2014 | %,2018 | %,2017 | %,2016 | %,2015 | %,2014 | |
|---|---|---|---|---|---|---|---|---|---|---|
| TOTAL NUMBER OF EMPLOYEES |
4,915 | 4,732 | 4,818 | 4,685 | 4,248 | |||||
| Total permanent | 4,789 | 4,615 | 4,715 | 4,559 | 4,133 | 97.4 % | 97.5% | 97.9% | 97.3% | 97.3% |
| Total fixed-term | 126 | 117 | 103 | 126 | 115 | 2.6 % | 2.5% | 2.1% | 2.7% | 2.7% |
| FEMALES TOTAL | 1,255 | 1,223 | 1,259 | 1,220 | 1,110 | |||||
| Permanent | 1,205 | 1,175 | 1,227 | 1,171 | 1,064 | 96.0 % | 96.1% | 97.5% | 96.0% | 95.9% |
| Fixed term | 50 | 48 | 32 | 49 | 46 | 4.0 % | 3.9% | 2.5% | 4.0% | 4.1% |
| MALES TOTAL | 3,660 | 3,509 | 3,559 | 3,465 | 3,138 | |||||
| Permanent | 3,584 | 3,440 | 3,488 | 3,388 | 3,069 | 97.9 % | 98.0% | 98.0% | 97.8% | 97.8% |
| Fixed term | 76 | 69 | 71 | 77 | 69 | 2.1 % | 2.0% | 2.0% | 2.2% | 2.2% |
The percentage of employees covered by collective bargaining agreements by 'significant locations of operation' varies widely between regions. The coverage is the lowest in North America (USA 5%, Canada 15%), which is characteristic of the region, whereas in South America (Brazil, Uruguay) all employees are covered.
In the APAC region, collective bargaining agreements occur in the chemical industry only in a few countries, Indonesia, Korea and Thailand, where almost all employees are covered by collective bargaining agreements. In many European countries, all employees are covered by collective bargaining agreements, especially in Northern Europe (Finland, Sweden) and Southern Europe (Spain, France, Italy). In Central and Eastern Europe, the percentage varies (e.g. UK 32%, Germany 39%, Netherlands 61%), and in some countries there are no collective bargaining agreements.
The definition used for 'significant locations of operation' refers to countries where we have 10 or more employees. In Kemira's case, there are 26 countries with 10 or more employees and which altogether represents 98% of all employees.
| 2018 | 2017 | %, 2018 | %,2017 | |
|---|---|---|---|---|
| TOTAL NUMBER OF EMPLOYEES | 4,915 | 4,732 | ||
| Americas | 1,559 | 1,514 | 31.7% | 32.0% |
| Asia Pacific | 777 | 647 | 15.8% | 13.7% |
| EMEA | 2,579 | 2,571 | 52.5% | 54.3% |
| Permanent total | 4,789 | 4,615 | ||
| Americas | 1,559 | 1,514 | 32.6% | 32.8% |
| Asia Pacific | 777 | 647 | 16.2% | 14.0% |
| EMEA | 2,453 | 2,454 | 51.2% | 53.2% |
| Temporary total | 126 | 117 | ||
| Americas | - | 0.0% | 0.0% | |
| Asia Pacific | - | 0.0% | 0.0% | |
| EMEA | 126 | 117 | 100.0% | 100.0% |
| 2018 | 2017 | 2016 | 2015* | 2014* | %,2018 | %,2017 | %,2016 | %,2015 %,2014 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| TOTAL EMPLOYEES | 4,915 | 4,732 | 4,818 | 4,559 | 4,133 | |||||
| Total full-time | 4,842 | 4,660 | 4,747 | 4,481 | 4,099 | 98.5 % | 98.5% | 98.5% | 98.3% | 99.2% |
| Total part-time | 73 | 72 | 71 | 78 | 34 | 1.5 % | 1.5% | 1.5% | 1.7% | 0.8% |
| FEMALES TOTAL | 1,255 | 1,223 | 1,259 | 1,171 | 1,064 | |||||
| Full-time | 1,202 | 1,168 | 1208 | 1,106 | 1,037 | 95.8 % | 95.5% | 95.9% | 94.4% | 97.5% |
| Part-time | 53 | 55 | 51 | 65 | 27 | 4.2 % | 4.5% | 4.1% | 5.6% | 2.5% |
| MALES TOTAL | 3,660 | 3,509 | 3,559 | 3,388 | 3,069 | |||||
| Full-time | 3,640 | 3,492 | 3,539 | 3,375 | 3,062 | 99.5 % | 99.5% | 99.4% | 99.6% | 99.8% |
| Part-time | 20 | 17 | 20 | 13 | 7 | 0.5 % | 0.5% | 0.6% | 0.4% | 0.2% |
*2014-2015 numbers for permanent employees
The total number of new hires in 2018 was 804 (597), out of which 28% (31%) were female and 72% (69%) male. The new hires include summer trainee and other temporary positions. Kemira's new hiring reflects changes in diversity from the previous year. The total turnover rate was 10.1% in 2018 compared to 12% in 2017. The total turnover is based on permanent workforce.
The turnover rate in EMEA was 9.0% (11%), which was the lowest of the regions. The highest turnover rate was in Americas 12.3% (13.5%) and the APAC region had turnover of 9.3% (12.8%). The turnover rate was highest at the age group <30 years 16.2% (19.3%) and females 11.8% (15%), both rates lower than 2017.
| Number of new hires | % of total new hires | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2016 | 2015 | 2014 | %, 2018 | %, 2017 | %, 2016 | %, 2015 | %, 2014 | |
| TOTAL NEW HIRES | 804 | 597 | 695 | 673 | 710 | 100.0% | 100.0% | |||
| NEW HIRES BY AGE GROUP | ||||||||||
| <30 | 319 | 286 | 284 | 293 | 291 | 40 % | 48% | 41% | 43.5% | 41.0% |
| 30-50 | 420 | 260 | 358 | 312 | 348 | 52 % | 44% | 52% | 46.4% | 49.0% |
| >50 | 65 | 51 | 53 | 68 | 71 | 8 % | 9% | 8% | 10.1% | 10.0% |
| NEW HIRES BY GENDER | 804 | |||||||||
| Females | 222 | 188 | 218 | 208 | 236 | 28 % | 31% | 31% | 30.9% | 33.2% |
| Males | 582 | 409 | 477 | 465 | 474 | 72 % | 69% | 69% | 69.1% | 66.8% |
| NEW HIRES BY REGION | 804 | |||||||||
| APAC | 203 | 79 | 173 | 60 | 60 | 25 % | 13% | 25% | 8.9% | 8.5% |
| EMEA | 365 | 352 | 364 | 373 | 418 | 45 % | 59% | 52% | 55.4% | 58.9% |
| Americas | 236 | 166 | 158 | 240 | 232 | 29 % | 28% | 23% | 35.7% | 32.7% |
GRI 401-1 b. Total number and rate of employee turnover during the reporting period, by age group, gender and region
| Turnover Turnover, % |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2016 | 2015 | 2014 | %, 2018 | %, 2017 | %, 2016 | %, 2015 | %, 2014 | |
| TOTAL TURNOVER | 497 | 570 | 441 | 490 | 736 | 10.1 % | 12.0% | 9.2% | 10.5% | 17.3% |
| TURNOVER BY AGE GROUP | ||||||||||
| <30 | 96 | 109 | 72 | 78 | 96 | 16.2 % | 19.3% | 12.4% | 13.6% | 18.6% |
| 30-50 | 253 | 258 | 228 | 263 | 428 | 8.9 % | 9.9% | 8.2% | 9.8% | 17.6% |
| >50 | 148 | 203 | 141 | 149 | 212 | 10.0 % | 13.0% | 9.6% | 10.4% | 16.3% |
| TURNOVER BY GENDER | 497 | |||||||||
| Female | 148 | 193 | 136 | 144 | 242 | 11.8 % | 15.8% | 10.8% | 11.8% | 21.8% |
| Male | 349 | 377 | 305 | 346 | 494 | 9.5 % | 10.7% | 8.6% | 10.0% | 15.7% |
| TURNOVER BY REGION | 497 | |||||||||
| APAC | 72 | 83 | 53 | 56 | 44 | 9.3 % | 12.8% | 8.1% | 10.4% | 12.5% |
| EMEA | 233 | 282 | 214 | 225 | 464 | 9.0 % | 11.0% | 8.2% | 8.8% | 19.2% |
| Americas | 192 | 205 | 174 | 209 | 228 | 12.3 % | 13.5% | 11.2% | 13.2% | 15.4% |
The benefit programs at Kemira differ depending on regional and country specific practices, and the programs have been stable across recent years without major changes to the practices. In most countries, the same benefits are offered to full-time and part-time employees, and for temporary employees hired directly by Kemira, if the temporary contract exceeds a certain length.
Benefit practices are country specific and typically do not vary between locations and operations. Some exceptions apply, e.g. some countries offer additional insurance and / or retirement benefits for permanent full-time employees. In North America, the eligibility for benefits is dependent on hours worked, in the USA employees are eligible if they work a minimum of 20 hours per week.
As stated in our Code of Conduct, all sites are obliged to follow local legislation, regulations and other agreements regarding labor practices, including notice periods. Minimum notice periods are defined in laws or in collective agreements, and are followed in each country accordingly. The time period for the consultation process relating to operational changes varies by country and region, starting from 14 days for smaller changes to up to six months in some countries and for major changes, varying between one to two months in most countries.
Kemira reports the occupational safety performance indicator as Total Recordable Injuries (TRI) which includes permanent injuries and fatalities, lost time incidents, restricted work cases and medical treatment cases covering Kemira employees and contractors working at Kemira sites. TRI Frequency (TRIF) is measured as Total Recordable Injuries per million working hours.
Our health and safety performance in 2018 improved compared to 2017. TRIF fell in 2018 to a level consistent with 2016 performance.
Total number of TRIs was 44 (49) and TRIF ended up to 3.5 (3.9). The ratio of incidents for Kemira employees and for contractors working at Kemira sites remained at the 2017 level. Long-term trend remains positive and we continue to strive toward our 2020 goal of TRIF 2.0.
No fatalities have been associated with Kemira employees since 2005. In 2018 we had no permanent injuries and the overall injury severity decreased from 2017. The noticeable decline in severity and permanent injuries are responses to ongoing management commitment, progressive safety messaging and an overall improvement in safety culture.
To improve our health and safety culture, the Behavior Based Safety (BBS) Program has been one of our top priorities since 2016. The program focuses on employee safety engagement at all levels. In 2018, we continued to implement the program to cover all APAC, EMEA and SA manufacturing sites. Peer to peer communication, quality of observations and positive feedback had a renewed emphasis at established sites. The BBS program has generated numerous field observations of behaviors (both positive and negative) that are being used to prevent hazardous conditions and potential injuries.
We have continued to improve our internal communication of health and safety incidents, reviews and proactive campaigns during 2018.
In order to further increase safety awareness and to improve recognition and elimination of hazards in the work environment, a key performance indicator of Hazardous Conditions / Activities was continued in 2018. This is a
leading safety indicator reflecting environmental or behavior related hazards at the workplace. The number of reported Hazardous Conditions / Activities was 23,037 in 2018 which equals to 5 per Kemira employee, which surpassed Kemira's internal goal. This type of proactive identification of Hazardous Conditions / Activities not only allows us to
| TRI | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|
| TOTAL TRI | 44 | 48 | 46 | 77 | 61 |
| Kemira employees |
30 | 31 | 32 | 56 | 44 |
| Contractors working at Kemira site |
14 | 17 | 14 | 21 | 17 |
| REGIONAL TRI | |||||
| APAC | 4 | 1 | 2 | 1 | 0 |
| EMEA | 22 | 31 | 22 | 53 | 35 |
| Americas | 18 | 16 | 22 | 23 | 26 |
| TRI Frequency | 2018 | 2017 | 2016 | 2015 | 2014 |
| GLOBAL TRIF | 3.5 | 3.9 | 3.4 | 7.2 | 5.8 |
| Regional TRIF | |||||
| APAC | 2.0 | 0.6 | 0.9 | 0.6 | 0 |
| EMEA | 4.1 | 6.0 | 3.4 | 10.6 | 6.1 |
| Americas | 4.6 | 5.1 | 4.8 | 5.7 | 6.4 |
avoid incidents but also improves our operations and work methods.
The safety performance indicators of Hazardous Conditions / Activities and TRIF have been included as corporate bonus targets for every employee since 2017.
| LTI | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|
| TOTAL LTI | 25 | 27 | 20 | 30 | 24 |
| Kemira employees |
15 | ||||
| Contractors working at Kemira site |
10 | ||||
| REGIONAL LTI | |||||
| APAC | 0 | 1 | 2 | 1 | 0 |
| EMEA | 16 | 23 | 12 | 22 | 19 |
| Americas | 9 | 3 | 6 | 7 | 5 |
| LTI Frequency | 2018 | 2017 | 2016 | 2015 | 2014 |
| GLOBAL LTIF | 2.0 | 2.2 | 1.5 | 2.7 | 2.7 |
| REGIONAL LTIF | |||||
| APAC | 0 | 0.6 | 1 | 0.6 | 0 |
| EMEA | 3 | 4.6 | 2.1 | 5.4 | 4.4 |
| Americas | 2.3 | 1.0 | 0.8 | 2 | 1.8 |
Kemira aims to capture all training, education and employee development related hours in the learning management system (LMS) that is feasible, and have continued to advance in achieving this goal. So far, leadership development activities, regional and global competence development and vocational training programs and many local programs are recorded in the LMS. However, some remaining training and development activities are still recorded locally.
Training hours registered in the system for larger countries in 2018 are Finland 8,856 (7,847) hrs, UK 6,037 (4,482) hrs, Sweden 5,476 (5,719) hrs, USA 4,919 (4,973) hrs, Netherlands 3,833 (4,075) hrs, China 10,569 (6,770) hrs and Poland 6,186 (4,185) hrs. Globally registered average hours per employee for blue collar employees are lower than for white collar employees, indicating some difference in recording hours in the global system.
Kemira provides each employee with access to the relevant competence development programs and structured learning opportunities to support upgrading of employee skills through on-the-job learning programs (including generic and job-specific competence development), buddy / coaching / mentoring programs, and traditional methods like classroom and eLearning.
The scope includes:
These programs are available based on the position, skills/ competence level and career aspirations. With the exception of leadership development programs and other external cost based programs (pre-approval required), employees can typically enroll and complete the self-paced learning programs available through our LMS (Learning Management System). We had a strong leadership development portfolio offering and consistent participation in 2018.
Examples of other global and regional programs offered during 2018 are listed below:
Extensive EHSQ related programs including EHSQ hazardous Condition/Activity Training, Chemical handling, Communicating on chemical hazards, Crisis management, PPE, Manual handling, and Energy Management system
Innovation training
Kemira also provides transition assistance programs where relevant, with bigger changes to facilitate the continued employability and management of career endings resulting from retirements or termination of employment. These have included:
Our global perfomance and development discussion (PDD) process covers all permanent employees, both white collar and blue collar, who are not absent for an extended time period because of leave, for example. Temporary employees' inclusion in the PDD process is evaluated case-by-case, depending on the length of the contract.
| Performance and | Number of employees covered by PDD | PDD Coverage,% | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Development Discussion (PDD) |
2018 | 2017 | 2016 | 2015 | 2014 | %, 2018 | %, 2017 | %, 2016 | %, 2015 | %, 2014 |
| TOTAL PERMANENT EMPLOYEES NOT ABSENT* |
4,597 | 4,626 | 4,590 | 4,440 | 4,019 | |||||
| PDD'S BY GENDER | ||||||||||
| Employees covered in Global PDD process |
4,093 | 4,139 | 4,009 | 4,147 | 3,803 | 89% | 89% | 87% | 93% | 95% |
| Females covered in Global PDD process |
1,099 | 1,119 | 1,116 | 1,030 | 977 | 95% | 97% | 93% | 96% | 95% |
| Males covered in Global PDD process |
2,994 | 3,020 | 2,893 | 3,117 | 2,826 | 87% | 87% | 85% | 93% | 94% |
| PDD'S BY EMPLOYEE CATEGORY |
||||||||||
| White collars covered in Global PDD process |
2,731 | 2,778 | 2,702 | 2,730 | 2,317 | 97% | 98% | 98% | 97% | 98% |
| Blue collars covered in Global PDD process |
1,362 | 1,275 | 1,307 | 1,417 | 1,486 | 76% | 71% | 72% | 89% |
* All permanent employees, who are not absent for an extended time period, because of leave, for example, are covered by global performance and development discussion process.
During 2018, the share of females in the Board of Directors remained the same (50%). The percentage share of females (26%) in the total number of employees has remained constant over the years 2016 – 2018. The number of females in executive positions (Directors and above) has increased to 29% vs. 27% in 2017.
| Performance and | Total | % | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Development Discussion (PDD) |
2018 | 2017 | 2016 | 2015 | 2014 | %, 2018 | %, 2017 | %, 2016 | %, 2015 | %, 2014 |
| MANAGEMENT BOARD | ||||||||||
| Total | 8 | 8 | 10 | 10 | 9 | |||||
| Female | 1 | 1 | 2 | 2 | 2 | 13% | 20% | 20% | 22% | |
| Male | 7 | 7 | 8 | 8 | 7 | 88% | 80% | 80% | 78% | |
| By age group | ||||||||||
| <30 | 0 | 0 | 0 | 0 | 0% | 0% | 0% | 0% | ||
| 30-50 | 1 | 1 | 2 | 5 | 6 | 13% | 20% | 50% | 67% | |
| >50 | 7 | 7 | 8 | 5 | 3 | 88% | 80% | 50% | 33% | |
| BOARD OF DIRECTORS | ||||||||||
| Total | 6 | 6 | 7 | 6 | 6 | |||||
| Female | 3 | 3 | 3 | 2 | 2 | 50% | 43% | 33% | 33% | |
| Male | 3 | 3 | 4 | 4 | 4 | 50% | 57% | 67% | 67% | |
| By age group | ||||||||||
| <30 | 0 | 0 | 0 | 0 | 0% | 0% | 0% | 0% | ||
| 30-50 | 1 | 1 | 1 | 0 | 0 | 17% | 14% | 0% | 0% | |
| >50 | 5 | 5 | 6 | 6 | 6 | 83% | 86% | 100% | 100% | |
a. Percentage of individuals within the organization's governance bodies in each of the following diversity categories: i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).
As stated in our Code of Conduct, we respect the diversity, talent and abilities of others. We at Kemira define 'diversity' as all the unique characteristics that make up each of us: personality, lifestyle, work experience, ethnicity, religion, gender, sexual orientation, age, national origin, ability and other characteristics. We focus our efforts to attract, develop and retain a workforce that is diverse, and to ensure an inclusive work environment that embraces the strength of our differences. We do not discriminate or treat employees or job applicants unfairly in matters that involve recruiting, hiring, training, promoting, compensation or any other term or condition of employment.
| Total | % | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2016 | 2015 | 2014 | %, 2018 | %, 2017 | %, 2016 | %, 2015 | %, 2014 | |
| TOTAL EMPLOYEES | 4,915 | 4,732 | 4,818 | 4,685 | 4,248 | 100 % | 100% | 100% | 100% | 100% |
| <30 | 594 | 566 | 579 | 575 | 515 | 12 % | 12% | 12% | 12% | 12% |
| 30-50 | 2,848 | 2,607 | 2,772 | 2,672 | 2,435 | 58 % | 55% | 58% | 57% | 57% |
| >50 | 1,473 | 1,559 | 1,467 | 1,438 | 1,298 | 30 % | 33% | 30% | 31% | 31% |
| Female in total | 1,255 | 1,223 | 1,259 | 1,220 | 1,110 | 26 % | 26% | 26% | 26% | 26% |
| <30 | 179 | 190 | 179 | 188 | 172 | 14 % | 16% | 14% | 15% | 15% |
| 30-50 | 827 | 764 | 823 | 773 | 705 | 66 % | 62% | 65% | 63% | 64% |
| >50 | 249 | 269 | 257 | 259 | 233 | 20 % | 22% | 20% | 21% | 21% |
| Male in total | 3,660 | 3,509 | 3,559 | 3,465 | 3,138 | 74 % | 74% | 74% | 74% | 74% |
| <30 | 415 | 376 | 400 | 387 | 343 | 11 % | 11% | 11% | 11% | 11% |
| 30-50 | 2,021 | 1,843 | 1,949 | 1,899 | 1,730 | 55 % | 53% | 55% | 55% | 55% |
| >50 | 1,224 | 1,290 | 1,210 | 1,179 | 1,065 | 33 % | 37% | 34% | 34% | 34% |
b. Percentage of employees per employee category in each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).
Kemira operates a global job structure that is applied to all white collar employees. The job structure describes job families and the respective job roles with required qualifications and main responsibilities. The job structure links to job grades, which define the salary range and the incentive opportunity for a specific job role. The job grades and salary data information allows Kemira to evaluate, analyze and implement equal remuneration. Factors impacting salary increases includes employee performance and the position of an employee's salary within the salary range, as well as country-specific statutory increases and merit increase opportunities. Incentive payouts are based on measured achievement for pre-defined targets on the company, unit and individual levels.
During 2018, eleven incidents were reported to the Ethics & Compliance function alleging potential discrimination or harassment. Five of the cases were investigated and closed without merit. Four of the cases were closed with merit and the cases were remediated during 2018. Two cases were under investigation at the end of 2018.
| Disclosure 405-2a. Ratio of the basic salary and remuneration of women to men for each |
|---|
| employee category, by significant locations of operation. |
| Country | Women to men ratio 2018 |
Women to men ratio 2017 |
Women to men ratio 2016 |
White Collar Headcount 2018 |
|---|---|---|---|---|
| Austria | 87% | 95 % | n/a | 49 |
| Brazil | 85% | 79 % | n/a | 133 |
| Canada | 88% | 88 % | 88 % | 118 |
| China | 93% | 93 % | 94 % | 270 |
| Finland | 92% | 91 % | 91 % | 607 |
| Germany | 96% | 97 % | 98 % | 90 |
| Italy | 90% | 90 % | n/a | 76 |
| Netherlands | 89% | 93 % | 96 % | 79 |
| Poland | 97% | 92 % | 92 % | 316 |
| Spain | 84% | 83 % | n/a | 52 |
| Sweden | 97% | 96 % | 99 % | 134 |
| United Kingdom | 92% | 93 % | 96 % | 92 |
| United States | 92% | 89 % | 88 % | 593 |
| Total for largest countries | 92% | 90 % | n/a | 2,609 |
Kemira respects the freedom of association and collective bargaining as stated in our Code of Conduct, and through our signatory of the United Nations Global Compact. We expect our suppliers to respect these same principles and commit to the Kemira Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA). All of our Suppliers (engaged with a SAP Purchased Order) receive a written reference to CoC-SDA as part of the Kemira general terms of purchase on the back of the Purchase Order.
To increase Kemira employees' awareness of their rights regarding freedom of association and collective bargaining, we provide regular training on our Code of Conduct.
In 2018, Kemira did not identify any violations of freedom of association or collective bargaining in our own operations, and no evidence has been found to indicate that suppliers would be restricting their employees' opportunities to exercise freedom of association and collective bargaining based on sustainability assessments of our key suppliers, representing approximately 25% of our total spend since 2014.
For additional information, see the Integrity section for details of our Code of Conduct training and Ethics and Compliance hotline. Details of the numbers of employees covered by collective bargaining agreements are given under GRI 102-41.
The Human Rights Impact Assessment was conducted in 2014 to identify any risks of a human rights impact throughout our operations and value chain, and any potential gaps in our management approach to human rights as evaluated against the Operational Principles of the United Nations Guiding Principles of Business and Human Rights. The findings indicated a potential risk impact arising from our business with hazardous chemicals, upstream and downstream business relationships, and emerging market expansion. The Human Rights issues most relevant to Kemira relate to employment practices and the health and safety aspects of our products, workplace and operations.
During 2018, we have continued to integrate human rights aspects into our management system. The focus has been on increasing overall awareness and due diligence on human rights throughout the Kemira organization. All employees are provided regular and compulsory training on the Code of Conduct, including an awareness of human rights. The group of employees (white collar) who are responsible for ensuring that human rights are respected in our business relationships and in our own operations were provided the basic training on human rights in 2015 and since then all new hires must participate in this training as part of their induction program.
• A new global onboarding program was launched for new hires (white collars) which is automatically assigned to
them on the date of hire. The program includes online courses on Code of Conduct and Human Rights and Business.
By the end of 2018, 96% of the targeted employees had completed the basic training. Target group was 2,734 in the end of 2018.
The Kemira Code of Conduct, Kemira Group Sponsorship and Donation policy and the Kemira Group Gifts, Entertainment and Anti-bribery Policy, prohibit any financial support to politicians, political parties or political organizations. No financial or any in-kind political contributions paid by Kemira have come to Kemira's attention during 2018.
According to Kemira's product stewardship policy, we are acting:
Kemira complies with all laws and regulations relating to chemicals and trade. Kemira does not sell any banned products. We continuously screen substances that are covered by any regulatory restrictions, or subject to substitution requirements imposed by non-regulatory
stakeholders. We proactively work to mitigate health, safety, environmental and image-related risks (GRI 102-2: Activities, brands, products, and services).
We regularly review substances with threat-for-use restrictions or authorization at different phases of regulatory processes in all jurisdictions where Kemira operates. We have some substances listed in the EU REACH regulation list for Substances of Very High Concern (SVHC). At the end of 2018, 83% (19 out of 23) of the identifed 23 SHVC substances had a management plan approved by the Operational Excellence board.
We are not aware of any fine, penalty or warning for noncompliance with regulations and voluntary codes regarding our products or services in 2018.
Kemira's product portfolio consists of seven major product lines and approximately 2,000 different products. All of these products are duly documented and labeled according to legal requirements, including the identification of their hazardous components and information on their safe use. Kemira provides Safety Data Sheets (SDS) for all products, independent of the product safety classification, even if in most jurisdictions Safety Data Sheets are mandatory only for hazardous products. Our IT system for Product Lifecycle
Management enables us to prepare SDS's and labels in alignment with the latest regulatory data requirements and in the official languages of the countries where our products are manufactured, stored or sold. In EU member states, the information requirements are stated under REACH regulations with regard to substance properties, exposure, use and risk management measures, and the chemical safety assessment. Registered uses will also be communicated via the updated extended SDS's for downstream users. In addition to the information provided on product labels and Safety Data Sheets, more detailed information about products and their raw material ingredients can be provided on request.
In 2018, the Kemira Product Stewardship & Regulatory Affairs team responded to 6863 (7,720 in 2017) requests concerning product safety and/or regulatory. The response time for those requests is one of our internal key performance indicators (KPIs).
Our customer complaints management process handles complaints by recording the complaint, investigation, root cause and corrective action determination and implementation and communication with the customer. During the process complaints are classified with a complaint reason from a predefined list. The process and system in use are able to exclude those complaints that Kemira has met the agreed requirements with the customer. All complaints are actively monitored, evaluated and corrected as required by the quality management system in use at Kemira.
Non-compliance related to product and service information usually makes reference to insufficient information on the label.
During 2018, a total of 112 customer claims were recorded relating to labeling, of which 59 cases were in the EMEA region, 32 in the Americas, and 21 in the APAC region. Corrective actions planned for 15 cases were underway at year end.
Concerning regulations on product and service information and labelling, there were no reported incidents of noncompliance within Kemira's operations which would have resulted in any fine, penalty or warning.
We are not aware of any fine, penalty or warning for noncompliance with product related laws and / or regulations in 2018.
| TOPIC | PRODUCT AND SERVICE INFORMATION PROVIDED BY KEMIRA |
|---|---|
| The sourcing of components of the product or service |
Only if requested by customers |
| Content, particularly with regard to substances that might produce an environmental or social impact |
As required by law, always in Safety Data Sheets (SDS) and on the labels. Additional information about chemicals in our products for voluntary certification / compliance schemes such as eco-labeling is also provided to customers upon request and when applicable |
| Safe use of the product or service | Safe use of a product or service is communicated in the SDS's and on the labels. Registered uses will be communicated via the extended SDSs. Additional information about the use, dosage and application is provided to customers when applicable |
| Disposal of the product and environmental / social impact |
When legally required, disposal of a product and environmental / social impact are communicated in the SDS's and on the labels |
At the end of the year 2018, Kemira had 64 (63 in 2017) manufacturing sites of which 63 were included in the environmental reporting scope, and 62 in the auditing scope of our integrated management system. During the year, one site was closed in Spain (Torrelavega) and during the Q4 2018 two new sites were added (Long Thanh in Vietnam and Yanzhou Tao in China). Beyond that, there were no significant changes in the company structure, size or ownership.
When defining the relative importance of material topics for reporting purpose we have taken into account our economic, environmental and social impact, stakeholder expectations, our purpose and strategy, and our commitments to the Code of Conduct, United Nations Global Compact, and Responsible Care program. According to the GRI 101 Foundation standard, the principles for defining the report content were applied when assessing material topics and boundaries.
Economic impact: We generate revenue by selling chemical products for industrial uses in the pulp and paper, oil and gas, mining, and water treatment industries. We have a direct economic impact on suppliers and service providers through the payments we make for raw materials and services, to
employees through compensation and benefits, to capital providers through dividends and interest payments, to the public sector through taxes, and to society through local community projects, sponsorships and donations. Unethical business behavior could impact Kemira's reputation and thus financial position.
Environmental impact: We have a positive environmental impact through our products and solutions which enable our customers to improve their water, energy and raw material efficiency. Our main environmental risks relate to carbon emissions from our own manufacturing and in the value chain due to our purchasing activities, upstream and downstream transportation, and to potential incidents through accidental release of chemicals or process safety deficiencies.
Social impact: Our main social impact, and related risks, concerns safety in the workplace, safe use of our products along the value chain and any possible non-compliance with responsible business practices in our own operations or those of our business partners.
Identification: Material topics relevant to Kemira have been identified based on their relative magnitude of impact and respective concerns raised by our stakeholders. The most recent materiality assessment was made in 2016- 2017. Representatives of our key stakeholder groups were interviewed to identify their expectations towards Kemira, a benchmark study on material disclosure topics was carried out and major sustainability related development trends were analyzed.
Prioritization: The identifed topics were prioritized with reference to the relative importance to stakeholders, and to the relevance to Kemira's business and strategy, as well as the significance of specific topics related to the global chemical sector. Based on the prioritization, we have selected 20 GRI disclosure topics out of 33 topics as defined by the GRI (2016) standards. In addition to these GRI topics, we also disclose information and performance data on sustainable products and product stewardship, which is material for but not covered by the GRI standards.
Validation: Data compilation practices for the identified material topics were reviewed and defined. Group level KPI's and targets are defined for the most material topics which are reported as Corporate responsibility priorities.
Review: Group level KPI's and targets for corporate responsibility priorities are approved and annually reviewed by the Management Board and by the Board of Directors.
The economic, environmental and social impact of our business activities take place both directly through our own operations and indirectly through our upstream and downstream operations.
The prioritized material disclosure topics are shown in the table Material topics reflecting Kemira´s economic, environmental and social impact (p. 60). These material topics, the respective topic boundaries and data compilation practices are reported in the table 'Material topics and their boundaries'.
| INDIRECT IMPACT | DIRECT IMPACT | INDIRECT IMPACT | ||
|---|---|---|---|---|
| Production of input materials and energy |
Upstream services |
Kemira's own operations |
Downstream Use of services Kemira products |
|
| ECONOMIC IMPACT |
• Anti-corruption • Anti-competitive behavior |
• Anti-corruption • Anti-competitive behavior |
• Sustainable products and solutions (own topic) • Economic performance* • Anti-corruption • Anti-competitive behavior |
• Anti-corruption • Anti-competitive behavior |
| ENVIRONMENTAL IMPACT |
• Emissions (Scope 3) • Supplier performance for their environmental impacts |
• Emissions (Scope 2 & 3) • Supplier performance for their environmental impacts |
• Materials • Energy • Water • Emissions (Scope 1) • Effluents and waste • Environmental compliance |
• Emissions (Scope 3) • Emissions (Scope 3) • Supplier performance • Sustainable products and for their environmental solutions (own topic) impacts |
| SOCIAL IMPACT | • Supplier performance for their social impacts and ethical business behavior |
• Supplier performance for their social impacts and ethical business behavior |
• Employment, and Labor/Management relations • Occupational health and safety • Training and education • Diversity and equal opportunity • Non-discrimination • Freedom of association and collective bargaining • Human rights assessment • Public policy • Customer health and safety • Marketing & labeling • Socioeconomic compliance |
• Supplier performance for their social impacts and ethical business behavior |
| * Not material but reported because |
considered useful based on continuity
A few restatements of environmental data have been done due to correction or reclassification of data from some manufacturing sites (electricity sold off-site, water recycled, waste discharged) or review of assumptions of scope 3 calculations (raw materials, upstream and downstream transportations).
There were no signifcant changes in the reporting.
The reporting period is from 1 January to 31 December 2018.
Kemira's previous Annual Report including non-financial information (GRI disclosures) was published on 26 February 2018.
Kemira's Annual Report is published yearly, by calendar year. The Annual Report consists of Business overview, GRI disclosures, Corporate Governance statement and Financial statements.
The contact point for questions is Kemira Communications and Corporate Responsibility. Contact details are available at www.kemira.com.
The management of corporate responsibility is focused on three priority areas: Sustainable products and solutions, Responsible operations and supply chain, and People and integrity which cover also the 20 prioritized GRI disclosure topics and one additional topic not included in the GRI topicspecific standards.
Material topics covered by the management approach are explained in the table at this page, and the boundaries in the table Material topics and their boundaries (pages 63-64).
See Chapter 2 for detailed description.
See Chapter 2, Results and key activities for 2018 for detailed description.
| C O R P O R AT E R E S P O N S I B I L I T Y PRIORITIES |
M A N A G E M E N T A P P R O A C H (GRI 103-1) |
M AT E R I A L G R I D I S C LO S U R E TO P I C S C O V E R E D BY T H E MANAGEMENT APPROACH |
||
|---|---|---|---|---|
| Sustainable products and solutions |
Products improving our customers´ sustainability |
Sustainable products and solutions (Kemira´s own material topic, reported based on the GRI 103 Management approach); Materials |
||
| Chemical safety management throughout the products' lifecycle |
Customer health and safety; Marketing and labeling; Socioeconomic (product) compliance. |
|||
| Responsible operations and supply chain management |
Responsible management of our own operations, |
Energy; Water; Emissions; Effluents and waste; Environmental compliance; Occupational health and safety |
||
| Responsible performance and good governance throughout our supply chains |
Supplier environmental assessment; Supplier social assessment. |
|||
| People and Integrity | Engagement and competence development of our employees |
Diversity and Equal Opportunity; Non discrimination,Training and Education. |
||
| Responsible business practices in our own operations or with our business partners |
Anti-corruption; Anti-competitive behavior; Diversity and equal opportunity; non-discrimination; Freedom of association and collective bargaining; human rights assessment; Public policy. |
| GRI 102-47; GRI 103-1 MATERIAL TOPICS |
G R I 1 0 3 -1 TOPIC BOUNDARIES |
KEMIRA DATA COLLECTION PRACTICES |
|---|---|---|
| Sustainable products and solutions (own material topic) |
Kemira operations1) | Product applications are manually linked to product categories. Product sales data is extracted from Kemira's ERP system |
| Economic Standard Series | ||
| Economic performance* | Kemira operations1) | Data is extracted from Kemira's ERP system |
| Anti-corruption | Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
| Anti-competitive behavior | Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
| Environmental Standard Series | ||
| Materials | Kemira operations as covered by our ERP2) | Data is extracted from Kemira's ERP system. |
| Energy | Kemira manufacturing sites3) | Data is collected from each production site and consolidated on the Group level. |
| Water | Kemira manufacturing sites3) | Data is collected from each production site and consolidated on the Group level. |
| Emissions | Kemira manufacturing sites3) | Data is collected from each production site and consolidated on the Group level. Scope 3 emissions data is collected from Kemira's ERP system and the relevant organizational units. Default data and assumptions are as in the WBCSD Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. |
| Effluents and waste | Kemira manufacturing sites3) | Data is collected from each production site and consolidated on the Group level. |
| Environmental compliance | Kemira manufacturing sites3) | Data is collected from each production site and consolidated on the Group level. |
| Supplier environmental assessment |
Kemira suppliers | Harmony Contract Management Tool used to track suppliers' signing of Code of Conduct for SDA. |
| Social Standard Series | ||
|---|---|---|
| Employment* | Kemira operations1) | HR data management system. |
| Labor/Management relations* | Kemira operations1) | HR data management system. |
| Occupational health and safety | Kemira operations1) | Synergy data management system. Data covers also contractors working at Kemira sites. |
| Training and education | Kemira operations1) | HR data management system. |
| Diversity and equal opportunities | Kemira operations1) | HR data management system. |
| Non-discrimination | Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
| Freedom of association and collective bargaining |
Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
| Human rights assessment | Kemira operations1) | |
| Supplier social assessment | Kemira suppliers | Harmony Contract Management Tool used to track suppliers' signing of Code of Conduct for SDA. |
| Public policy | Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
| Customer health and safety | Kemira operations as covered by our ERP2) | Data is extracted from Kemira's ERP system and from R&D New Product Development process documentation, and from Kemira's legal archives. |
| Marketing and labelling | Kemira operations as covered by our ERP2) | Data is extracted from Kemira's ERP system and from PSRA4) documentation, and from Kemira's legal archives. |
| Socioeconomic compliance | Kemira operations1) | Data is collected from each region, from Kemira's legal archive, and through notifications from Kemira's Compliance and Ethics Hotline. |
*) Not material GRI topic but reported because considered useful based on continuity.
1) Kemira's operations = All operations covered by Kemira's consolidation rules
2) Kemira's operations covered by ERP = All operations covered by both Kemira's consolidation rules and the company's Enterprise Resource Planning (ERP)
3) Kemira's manufacturing sites = All manufacturing sites covered by Kemira's consolidation rules.
4) PSRA Product Safety and Regulatory Affairs
The corporate responsibility information presented in the sections GRI disclosures and Business overview are externally assured by an independent third party. Information on the organization's policy and current practice with regard to external assurance can be found in the Assurance statement.
We have been engaged by the management of Kemira Oyj (hereafter Kemira) to provide a limited assurance on Kemira's corporate responsibility information for the reporting period of January 1, 2018 to December 31, 2018. The information subject to the assurance engagement is the Kemira GRI Disclosures section in the Annual Report 2018 and corporate responsibility information disclosed in the Kemira Business Overview section on pages 6 and 15-18 in the Annual Report 2018 (hereaf-ter: Responsibility Information).
The management of Kemira is responsible for the preparation of the Responsibility Information in accordance with the Reporting criteria as set out in the GRI Disclosures section and the Sustainability Reporting Standards (Core) of the Global Reporting Initiative. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the Sustainability Information that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate criteria and making estimates that are reasonable in the circumstances.
Our responsibility is to express a limited assurance conclusion on the Responsibility Information based on our engagement. We conducted our assurance engagement in accordance with Interna-tional Standard on Assurance Engagements (ISAE) 3000 (Revised) to provide limited assurance on performance data and statements within the Responsibility Information.
This Standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance whether any matters come to our attention that cause us to believe that the Responsibility Information has not been prepared, in all material respects, in accord-ance with the Reporting criteria.
We did not perform any assurance procedures on the prospective information, such as targets, ex-pectations and ambitions, disclosed in the Responsibility Information. Consequently, we draw no conclusion on the prospective information. Our assurance report is made in accordance with the terms of our engagement with Kemira. We do not accept or assume responsibility to anyone other than Kemira for our work, for this assurance report, or for the conclusions we have reached.
There are inherent limitations on accuracy and completeness of the data related to the Responsibility Information that are to be taken into account when reading our assurance report. A limited assur-ance engagement involves performing procedures to obtain evidence about the Responsibility Infor-mation. The procedures performed depend on the practitioner's judgment, but their nature is differ-ent from, and their extent is less than, a reasonable assurance engagement. The procedures do not include detailed testing of source data or the operating effectiveness of processes and internal con-trols. Consequently, the procedures do not enable us to obtain the assurance necessary to become aware of all significant matters that might be identified in a reasonable assurance engagement.
Our procedures on this engagement included:
Conducting interviews with employees responsible for the collection and reporting of the Responsibility Information and reviewing of the processes and systems for data gathering, including the aggregation of the data for the Responsibility Information;
Performing analytical review procedures and testing data on a sample basis to assess the reasonability of the presented responsibility information;
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
We complied with Deloitte's independence policies which address and, in certain cases, exceed the requirements of the International Federation of Accountants Code of Ethics for Professional Account-ants in their role as independent assurance providers and in particular preclude us from taking finan-cial, commercial, governance and ownership positions which might affect, or be perceived to affect, our independence and impartiality and from any involvement in the preparation of the report. We have maintained our independence and objectivity throughout the year and there were no events or prohibited services provided which could impair our independence and objectivity.
Deloitte Oy applies International Standard on Quality Control 1 and accordingly maintains a compre-hensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. This engagement was conducted by a multidisciplinary team including assurance and sustainability expertise with professional qualifications. Our team is experienced in providing sustainability report-ing assurance.
On the basis of the procedures we have performed, nothing has come to our attention that causes us to believe that the information subject to the assurance engagement is not prepared, in all mate-rial respects, in accordance with the Sustainability Reporting Standards (Core) of the Global Report-ing Initiative or that the Responsibility Information is not reliable, in all material respects, with regard to the Reporting criteria.
Helsinki 7.2.2019 Deloitte Oy
Jukka Vattulainen Authorized Public Accountant Lasse Ingström Authorized Public Accountant
| GRI 102-55 |
Abbreviations | Reporting claims | ||
|---|---|---|---|---|
| BR = Business Report GRI = GRI report GS = Corporate Governance Statement FS = Financial Statements |
• The report is prepared in accordance with the GRI-standards (2016): core option • Communication on Progress (COP) of the United Nations Global Compact |
|||
| GRI STANDARD |
DISCLOS URE | PAGE NUMBER(S) |
UNITED NATION S GLOBAL COMPACT |
|
| GRI 101: Foundation 2016 General Disclosures |
||||
| Organizational profile | ||||
| 102-1 Name of the organization | Kemira Oyj | |||
| 102-2 Activities, brands, products, and services | BO 16-23 | |||
| 102-3 Location of headquarters | BO 2 | |||
| 102-4 Location of operations | BO 2 | |||
| 102-5 Ownership and legal form | BO 2 | |||
| 102-6 Markets served | BO 16-23 | |||
| 102-7 Scale of the organization | BO 2 | |||
| 102-8 Information on employees and other workers | BO 2, GRI 45-46 | |||
| 102-9 Supply chain | GRI 18-20 | Principle 8 | ||
| GRI 102: General Disclosures 2016 | 102-10 Significant changes to the organization and its supply chain | GRI 59 | ||
| 102-11 Precautionary Principle or approach | BO 13-15, GRI 12 |
102-12 External initiatives GRI 5-6 102-13 Membership of associations GRI 6 (CEFIC)
102-15 Key impacts, risks, and opportunities BO 7, 13-15, GRI 60
102-14 Statement from senior decision-maker BO 4-5 Commitment to Global Compact
102-16 Values, principles, standards, and norms of behavior BO 6-7. GRI 22-23 Principle 6, 8 102-17 Mechanisms for advice and concerns about ethics GRI 22-23 Principle 1, 6, 8
Strategy
Ethics and integrity
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| Governance | |||
| 102-18 Governance structure | GRI 7 | ||
| 102-19 Delegating authority | GRI 7 | ||
| Stakeholder engagement | |||
| 102-40 List of stakeholder groups | GRI 6 | ||
| 102-41 Collective bargaining agreements | GRI 46 | Principle 3 | |
| 102-42 Identifying and selecting stakeholders | GRI 6 | ||
| 102-43 Approach to stakeholder engagement | GRI 6 | ||
| 102-44 Key topics and concerns raised | GRI 6 | ||
| Reporting practice | |||
| 102-45 Entities included in the consolidated financial statements | FS NOTE 6.2 | ||
| GRI 102: General Disclosures 2016 | 102-46 Defining report content and topic Boundaries | GRI 59 | |
| 102-47 List of material topics | GRI 59-60 | ||
| 102-48 Restatements of information | GRI 61 | ||
| 102-49 Changes in reporting | GRI 61 | ||
| 102-50 Reporting period | GRI 61 | ||
| 102-51 Date of most recent report | GRI 61 | ||
| 102-52 Reporting cycle | GRI 61 | ||
| 102-53 Contact point for questions regarding the report | GRI 61 | ||
| 102-54 Claims of reporting in accordance with the GRI Standards | GRI 61 | ||
| 102-55 GRI content index | GRI 67 | ||
| 102-56 External assurance | GRI 65-66 | ||
| Material Topics | |||
| SUSTAINABLE PRODUCTS AND SOLUTIONS | Own material topic | ||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-14, 62 | |
| 103-3 Evaluation of the management approach | GRI 11-14, 62 | ||
| Own KPI | Product sustainability | GRI 11-12 |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| Material Topics GRI 200 Economic Standard Series |
|||
| ECONOMIC PERFORMANCE | Not material but reported | ||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 24-25 | |
| 103-3 Evaluation of the management approach | GRI 24-25 | ||
| 201-1 Direct economic value generated and distributed | GRI 24-25 | ||
| GRI 201: Economic Performance 2016 | 201-3 Defined benefit plan obligations and other retirement plans | FS NOTE 4.5 | |
| 201-4 Financial assistance received from government | FS NOTE 2.2 | ||
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
| ANTI-CORRUPTION | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 22-23 | |
| 103-3 Evaluation of the management approach | GRI 22-23 | ||
| 205-1 Operations assessed for risks related to corruption | GRI 26 | Principle 10 | |
| GRI 205: Anti-corruption 2016 | 205-2 Communication and training about anti-corruption policies and procedures | GRI 26 | Principle 10 |
| 205-3 Confirmed incidents of corruption and actions taken | GRI 27 | Principle 10 | |
| ANTI-COMPETITIVE BEHAVIOR | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 22-23 | |
| 103-3 Evaluation of the management approach | GRI 22-23 | ||
| GRI 206: Anti-competitive Behavior 2016 | 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices | GRI 27 | |
| GRI 300 Environmental Standards Series | |||
| MATERIALS | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 18-20 | ||
| 301-1 Materials used by weight or volume | GRI 28 | ||
| GRI 301: Materials 2016 | 301-2 Recycled input materials used | GRI 28 | Principle 7,8 |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| ENERGY | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10,30-31 | |
| 103-3 Evaluation of the management approach | GRI 5-10. 30-31 | ||
| 302-1 Energy consumption within the organization | GRI 30 | Principle 7,8 | |
| GRI 302: Energy 2016 | 302-3 Energy intensity | GRI 30 | Principle 8 |
| 302-4 Reduction of energy consumption | GRI 30 | Principle 8, 9 | |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
| WATER | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10,38 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 38 | ||
| 303-1 Water withdrawal by source | GRI 39 | Principle 7,8 | |
| GRI 303: Water 2016 | 303-3 Water recycled and reused | GRI 39 | Principle 8 |
| EMISSIONS | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 17 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 17 | ||
| 305-1 Direct (Scope 1) GHG emissions | GRI 34 | Principle 7,8 | |
| 305-2 Energy indirect (Scope 2) GHG emissions | GRI 34 | Principle 7,8 | |
| 305-3 Other indirect (Scope 3) GHG emissions | GRI 34-35 | Principle 7,8 | |
| GRI 305: Emissions 2016 | 305-4 GHG emissions intensity | GRI 34 | Principle 8 |
| 305-5 Reduction of GHG emissions | GRI 34 | Principle 8, 9 | |
| 305-6 Emissions of ozone-depleting substances (ODS) | GRI 36 | Principle 7,8 | |
| 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions | GRI 36 | Principle 7,8 | |
| EFFLUENTS AND WASTE | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 38, 41 |
reporting practice | gri content index
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| 306-1 Water discharge by quality and destination | GRI 39-40 | Principle 8 | |
| GRI 306: Effluents and Waste 2016 | 306-2 Waste by type and disposal method | GRI 41-42 | Principle 8 |
| 306-3 Significant spills | GRI 43 | Principle 8 | |
| 306-4 Transport of hazardous waste | GRI 43 | Principle 8 | |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
| ENVIRONMENTAL COMPLIANCE | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10 | |
| 103-3 Evaluation of the management approach | GRI 5-10 | ||
| GRI 307: Environmental Compliance 2016 | 307-1 Non-compliance with environmental laws and regulations | GRI 44 | Principle 8 |
| SUPPLIER ENVIRONMENTAL ASSESSMENT | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 18-21 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 18-21 | ||
| GRI 308: Supplier Environmental Assessment 2016 | 308-1 New suppliers that were screened using environmental criteria | GRI 18-21 | Principle 8 |
| GRI 400 Social Standards Series | |||
| EMPLOYMENT | Not material but reported | ||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 21 | |
| 103-3 Evaluation of the management approach | GRI 21-23 | ||
| GRI 401: Employment 2016 | 401-1 New employee hires and employee turnover | GRI 47-48 | Principle 6 |
| LABOR/MANAGEMENT RELATIONS | Not material but reported | ||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 21 | |
| 103-3 Evaluation of the management approach | GRI 21-23 | ||
| GRI 402: Labor/Management Relations 2016 | 402-1 Minimum notice periods regarding operational changes | GRI 48 | Principle 3 |
| OCCUPATIONAL HEALTH AND SAFETY | |||
| 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | ||
| GRI 103: Management Approach 2016 | 103-2 The management approach and its components | GRI 5-10, 15-16 | |
| 103-3 Evaluation of the management approach | GRI 5-10, 15-16 |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| GRI 403: Occupational Health and Safety 2016 | 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities |
GRI 49-50 | |
| TRAINING AND EDUCATION | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 21 | ||
| 103-3 Evaluation of the management approach | GRI 21 | ||
| GRI 404: Training and Education 2016 | 404-1 Average hours of training per year per employee | GRI 51 | Principle 6 |
| 404-2 Programs for upgrading employee skills and transition assistance programs | GRI 51 | ||
| 404-3 Percentage of employees receiving regular performance and career development reviews GRI 52 | Principle 6 | ||
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
| DIVERSITY AND EQUAL OPPORTUNITY | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 21 | ||
| 103-3 Evaluation of the management approach | GRI 21 | ||
| 405-1 Diversity of governance bodies and employees | GRI 53 | Principle 6 | |
| GRI 405: Diversity and Equal Opportunity 2016 | 405-2 Ratio of basic salary and remuneration of women to men | GRI 55 | Principle 6 |
| NON-DISCRIMINATION | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 21-22 | ||
| 103-3 Evaluation of the management approach | GRI 21-22 | ||
| GRI 406: Non-discrimination 2016 | 406-1 Incidents of discrimination and corrective actions taken | GRI 55 | Principle 6 |
| FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING |
|||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 21-22 | ||
| 103-3 Evaluation of the management approach | GRI 21-22 | ||
| GRI 407: Freedom of Association and Collective Bargaining 2016 |
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk |
GRI 21-22, 55 | |
| HUMAN RIGHTS ASSESSMENT | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 22 | ||
| 103-3 Evaluation of the management approach | GRI 56 |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
|---|---|---|---|
| GRI 412: Human Rights Assessment 2016 | 412-1 Operations that have been subject to human rights reviews or impact assessments | GRI 55 | Principle 1 |
| SUPPLIER SOCIAL ASSESSMENT | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 18-21 | ||
| 103-3 Evaluation of the management approach | GRI 18-21 | ||
| GRI 414: Supplier Social Assessment 2016 | 414-1 New suppliers that were screened using social criteria | GRI 18-21 | Principle 2 |
| GRI STANDARD | DISCLOSURE | PAGE NUMBER(S) | UNITED NATIONS GLOBAL COMPACT |
| PUBLIC POLICY | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10 | ||
| 103-3 Evaluation of the management approach | GRI 22-23 | ||
| GRI 415: Public Policy 2016 | 415-1 Political contributions | GRI 56 | Principle 10 |
| CUSTOMER HEALTH AND SAFETY | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 13-14 | ||
| 103-3 Evaluation of the management approach | GRI 13-14 | ||
| GRI 416: Customer Health and Safety 2016 | 416-1 Assessment of the health and safety impacts of product and service categories | GRI 57 | |
| 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services |
GRI 57 | ||
| MARKETING AND LABELING | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 13-14 | ||
| 103-3 Evaluation of the management approach | GRI 13-14 | ||
| GRI 417: Marketing and Labeling 2016 | 417-1 Requirements for product and service information and labeling | GRI 57 | |
| 417-2 Incidents of non-compliance concerning product and service information and labeling | GRI 57 | ||
| SOCIOECONOMIC COMPLIANCE | |||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | GRI 62-64 | |
| 103-2 The management approach and its components | GRI 5-10, 13-14 | ||
| 103-3 Evaluation of the management approach | GRI 13-14 | ||
| GRI 419: Socioeconomic Compliance 2016 | 419-1 Non-compliance with laws and regulations in the social and economic area | GRI 58 |
KEMIRA is a global chemicals company serving customers in water intensive industries. We provide best suited products and expertise to improve our customers' product quality, process and resource efficiency. Our focus is on pulp & paper, oil & gas and water treatment. In 2018, Kemira had annual revenue of around EUR 2.6 billion and 4,915 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
© 2019 Kemira Oyj. All rights reserved.
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