Sustainability for investors

Our goal is to be a thought leader in sustainability within our industry

Sustainability at Metso

Our services- and product-focused business model with project and systems capabilities supports our target for higher profitability and lower volatility. We work closely with our customers to solve their challenges, and we bring sustainable solutions to help them improve their performance. Our capability to provide our customers with leading technologies is the bedrock for sustainable growth. Finding ways to address sustainability challenges gives rise to new business opportunities and as we aim to help in solving global social and environmental challenges we will create value and well-being for all stakeholders.

Global environmental awareness creates opportunities for us to offer new intelligent solutions that improve our customers’ energy efficiency, reduce emissions and promote recycling. The biggest threats and opportunities related to the environment and climate change are transferred to Metso from our customers and are thus emphasized in our product, technology, and research & development (R&D). Improved reliability, safety and minimizing emissions are the key focus areas in Flow Control. In Minerals we work to improve efficiency through reduced energy consumption, improved utilization of raw materials and enhanced water conservation. We aim to develop our offering for existing operations and for new plants.

A sustainable way of operating throughout the value chain is a top priority for Metso. Through risk management, we can identify our potential sustainability threats and opportunities and plan our actions more carefully. Metso expects all of its suppliers and partners to operate in a sustainable way and also offers support in developing different areas in this field. By offering sustainable solutions for our customers and demanding them from ourselves and our partners we want to take part in creating a more sustainable future.

Metso is included in the following sustainability indices:

  • CDP Leadership level
  • RobecoSAM
  • FTSE4GOOD index
  • Ethibel Sustainability Index
  • OMX GES Sustainability Finland Index
  • Vigeo Rating
  • STOXX Global ESG Leaders Indices

Assurance

An independent third party, PricewaterhouseCoopers Oy, has provided assurance on the sustainability information disclosed in Metso’s Sustainability and Annual reports since 2010. In addition to the data revision, the assurance includes approximately three annual site visits and management interviews.

Read more about our sustainability performance from our 2018 Annual Report

Value creation at Metso

Value creation in Metso is assessed in both financial and non-financial terms. Increased stakeholder dialogue, identifying sales opportunities, and more effective and customer-centric operational processes support innovation, safety and a minimized environmental footprint, as well as build reputation and brand. In addition, value is created by improved internal processes, procurement efficiencies and decreased risk of misconduct.

Our sustainability agenda was updated in 2018. The agenda consists of Metso’s most material sustainability topics based on a thorough materiality analysis. This materiality analysis was developed in stakeholder meetings and interviews, internal discussions with various Metso functions and in a workshop with the Metso Executive Team.

Our sustainability agenda is divided into two focus areas: responsible and trusted partner, and sustainable productivity. Both of the focus areas consist of the most material topics, including actions and goals with respective KPIs. Goal-setting, particularly for the sustainable productivity category, will continue during 2019.

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We serve industries that face challenges like the depletion and degradation of ore grades, water and energy scarcity, dust, high-pressure flow-handling, and safe and efficient recycling processes. Mines, quarries and chemical plants supply raw materials for our daily lives and the world around us.

This is where Metso’s technology and expertise come in: our solutions cover rock and minerals processing, metal and waste recycling, and process industry flow control solutions. Helping our customers solve their global challenges gives rise to new business opportunities. We create value for all our stakeholders.

How we create value

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Sustainability governance

Sustainability is managed at the group level by the Sustainability team, which works towards an integrated sustainability model with the top management, the functional support teams and the business units to support Metso’s long-term success. The main role of the Sustainability team is to provide support and knowledge to transform the strategic business targets into sustainable business actions. The Board oversees the effectiveness and impact of Metso's sustainability governance.

International standards

In our sustainability management we comply with several international standards, such as quality management standard ISO 9001, environmental management standard ISO 14001 and health and safety management standard OHSAS 18001, and many of our business units have gained certification to these standards:

  • 28% of all our operations are covered by ISO 14001 certification,
  • 25% by OHSAS 18001 certification and
  • 66% by ISO 9001 certification.

Global list of Metso's externally certified units

Policies and processes

Commitment to follow certain global initiatives forms the basis for Metso’s operations. We have policies, processes, guidelines and instructions in place to guarantee compliance and to promote sustainability in our operations.

Most important policies:

  • Code of Conduct
  • Data Privacy Policy
  • Health, Safety and Environment Policy
  • Intellectual Property Policy
  • Brand Policy
  • Anti Corruption Policy
  • Enterprise Risk Management Policy
  • Misconduct Policy
  • Policy for Competition Law Compliance
  • Policy on Compliance with Sanctions, Export Controls and and Country Risks
  • Procurement Policy
  • Supplier Sustainability Criteria
  • Equal Opportunity Policy
  • Performance and Reward Policy

Risks related to Metso’s non-financial areas are mainly associated with compliance, brand and reputation, health, safety and environment (HSE), and climate change, as well as human and labor rights, especially in the supply chain.

Operating throughout the value chain in a sustainable way is a high priority for Metso, as environmental, social or governance misconduct can affect the company’s reputation and have long-term financial and other consequences. Non-financial risks can also create business interruption risks, lost working hours and other financial implications.

Metso’s Code of Conduct is the key corporate standard for all employees to be followed; in addition, we have other relevant policies, guidelines and processes in place to support risk management. As Metso’s operations are largely outsourced, there are risks related to the environment, human and labor rights, and corruption in the supply chain also. To mitigate supply chain risks, supplier audits are conducted annually by an external Metso partner and by internal procurement and quality assurance.

Health issues, discrimination and harassment are the most significant human and labor rights-related risks. Sick-leave absences can have cost impacts and compromise customer deliveries. Low employee engagement may lead to losing talent and competences. Metso mitigates these risks by e.g. having compulsory Code of Conduct training every second year for all employees that includes harassment and discrimination topics. In addition, these risks are mitigated by providing managers with tools in daily management activities and by active development of leadership. For example, in Finland the Metso early support model is in place to help ensure that employees can maintain their health.

Metso’s main health and safety risks occur both in its own operations as well as at customer sites. The most common risks in our own operations are related to lifting, working at heights, machinery, hot work and road travel. These risks are mitigated with the help of work instructions, training, risk observations, audits and the corrective actions that these generate. Metso uses lost-time incident frequency (LTIF) as the key indicator for safety both at its own premises and for the subcontractors working at Metso’s and customers’ sites. Another important safety focus is on making sure that products and services are safe to use and maintain and safety of services is, thus, considered in early phase of product and service development.

The biggest threats and opportunities related to the environment and climate change are present at customer sites. Flow Control’s key focus areas are improved reliability, safety and minimizing emissions. In Minerals, Metso works to improve efficiency through reduced energy consumption, reduced water consumption, improved utilization of raw materials, reduced emissions, and reduced noise and dust. Safety is an overall priority.

The Board oversees the appropriate governance of overall enterprise risk management. Internal control practices are aligned with Metso’s risk management process approved by the Board.

The following audits and assessments were conducted in 2018:

  • Critical Threat Scenarios 1 workshop
  • Metso Risk assessment workshops: Strategic risks (2 days’ workshop), financial risks (1 day workshop) and operational and hazard risks (2 days’ workshop)
  • Internal audits in 23 countries, 3 group function and global process audits, 38 specific case investigations
  • Risk engineering audits, 10 in total
  • Logistics audits, 13 in total
  • Health, safety and environment audits, 19 in total
  • Supplier sustainability audits, 99 in total

 

Downloads
Name
Business Overview 2018 Download
Corporate Governance Statement 2018 Download
GRI Supplement 2018 Download
Code of Conduct Download
Conflict Minerals statement Download