Sustainable development at Metso includes financial, environmental and social responsibility. This is reflected in our daily work e.g. through the overall management of Metso, including our business ethics and Code of Conduct, risk management, HR and occupational health and safety work, as well as environmental management.
In Metso’s Code of Conduct, important subjects, such as compliance with laws and regulations, human rights, equal opportunities and non-discrimination, safety, sponsorship and the protection of the environment, are explained in more detail and apply to all Metso employees. Metso’s sustainability work is based on policies, strategy, targets and objectives as well as performance indicators set at the Group level and implemented in our operating units globally.
Metso first began reporting on its corporate responsibility goals and principles in 2002 and has been evolving rapidly in this area ever since. Metso reports on sustainability matters annually and the reporting period is the financial year, i.e. January 1 to December 31. Metso’s Sustainability Results 2010 online publication serves as supplementary information to Metso’s Annual Report 2010.
The Metso’s Sustainability Results 2010 online publication is based on the core indicators of the Global Reporting Initiative’s (GRI) G3 Guidelines. The Global Reporting Initiative is a network-based organization that has pioneered the development of the world’s most widely used sustainability reporting framework, which is under continuous improvement and is applied worldwide. We have selected the indicators from the G3 Guidelines that are most relevant to Metso in terms of our operations, products and stakeholders. The essential focus areas of sustainability in terms of economic, social and environmental responsibility for 2010 are illustrated in the sections ‘Finance and operations,’ ‘People and well-being’ and ‘Environment and innovation'. These focus areas have been carefully analyzed and selected by management representatives together with our corporate responsibility team.
The sustainability performance data in this report and in our Annual Report 2010 has been externally assured by PricewaterhouseCoopers Oy. PricewaterhouseCoopers Oy has checked our reporting and has confirmed it to be Application Level B+ of the GRI G3 Guidelines. A comparison of this report's sustainability content against the G3 Guidelines and the UN Global Compact initiative is presented in the section containing the GRI and Global Compact Index.
Scope of this report and data collection
In this report, the comparable figures for 2009 are presented in parentheses. Wherever the data for 2009 has been restated or corrected, it is indicated with a separate note. The report includes the Parent Company and our most significant subsidiaries. The report does not cover our associated companies, joint ventures or companies that are our suppliers. The sustainability data is commonly presented at the Group or segment level. Any other division of the data reported is noted separately. The production units of Tamfelt Corporation (named Metso’s Fabrics business line as of May 2010), which was acquired in December 2009, have been included in Metso’s environmental reporting as of January 2010 and are presented in this report. The financial information of Metso Fabrics was consolidated into Metso’s balance sheet and its number of personnel has been included in Metso’s personnel figures as of December 2009.
Metso’s previous Sustainability Report was published in March 2010 as a separate report. Metso Sustainability Results 2010 is published as a supplementary publication and should be read together with the Annual Report. Additional sustainability information can be found on our website www.metso.com/sustainability.
Financial reporting
In our financial reporting, we follow International Financial Reporting Standards (IFRS). The IFRS Foundation is an independent, non-profit, private-sector organization working in the public interest. Its principal objectives are to develop a single set of globally accepted international financial reporting standards. Our financial reporting system data covers all Metso units, in accordance with IFRS. Each unit submits its financial report to the Group-wide reporting application, and the data is consolidated, validated and analyzed both at the reporting segment and corporate level. Figures describing economic responsibility excluding procurement data, are based on accounting and audited financial statements. Procurement data is unaudited. Purchases in the table describing the value added by stakeholder group have been derived from the reported numbers. To a certain extent, total purchases may include also other expense items.
Environmental reporting
The environmental data is collected according to the GRI G3 indicators and according to what we see as material to our business. In 2010 three GRI indicators were added to our environmental reporting and two existing indicators were further developed, with an emphasis on water consumption. The environmental data is collected from all our production facilities, which include 99 (91) of our units. Along with Metso’s energy-efficiency targets, the energy data is reported quarterly and all other environmental data annually. Data collection is carried out using a web-based reporting tool and the reported data is approved by the unit manager. At the corporate level, the data is consolidated, validated and analyzed. The data is used e.g. as an environmental risk management tool, for planning operational improvements and as a base for the Metso Energy Efficiency Program.
Reporting of environmental expenses and responsibilities is based on the Finnish Accounting Act. Data related to our research and development activities is collected from our research and development units every six months. This is accomplished through a reporting chain including management at the unit, business line, segment and corporate level. Our reporting segments are responsible for the accuracy of the figures, after which the data is consolidated at the corporate level.
Reporting personnel data
Metso HR management is responsible for collecting and reporting personnel data with the help of HR Services, our internal support function established in 2010. The data covers the entire Metso Group. The personnel and wages data published in the financial statements is obtained in conjunction with financial reporting and managed by Metso’s reporting specialists in a Group-wide database. In 2010 Metso began implementing a global HR information system that will allow access to more versatile and comparable HR data once the implementation is completed in 2012.
Metso’s Occupational Health and Safety (OHS) data is collected from all worldwide locations with more than 50 employees and covers 90 percent of Metso operations. Data is managed and reported by the OHS General Manager with the help of local managers with responsibility for OHS matters.
In 2010 Metso implemented a worldwide OHS data reporting system, OHS Monitor, which enables further improvement of OHS reporting. The OHS indicator ‘Lost time incident frequency’ has been calculated based on incidents resulting in one or more days of absence and the actual or estimated hours worked. The frequency is calculated per million hours worked. The sick-leave percentage is calculated based on the estimated or actual hours worked (depending on the unit and availability of information).
The personnel turnover rates are calculated as follows: the departure turnover rate includes employee departures for all reasons: layoff, retirement, expiry of temporary contract and voluntary, employee-initiated termination of employment. The voluntary turnover rate includes only the employment terminations that are voluntary and employee initiated.
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