| Competition legislation |
Infringements damage the company, its reputation and brand. Customers and the company risk being affected financially, and the community may be charged with additional costs. |
Trelleborg’s Code of Conduct and related training for all employees contains specific sections dealing with competition issues. The Group has a specific program regarding competition law issues and a general whistle-blower policy that can be used by all employees in respect of suspected improprieties. A thorough review and examination of distribution and agency agreements has been carried out in 2009 and 2010, and a new policy has been introduced. Procedures for approval of membership in organizations are in place. Since 2006, more than 70 training seminars in competition legislation have been held for the Group’s managers and selected functions, of which many have taken place in 2010. These courses, which also address combating corruption, will continue in 2011. In 2010, as part of the settlement with the United States Department of the Navy, Trelleborg has implemented the Trelleborg Corporation Enhanced Compliance and Training Program to further strengthen knowledge of competition knowledge among Group employees in the US. |
Customers, Suppliers, Employees, Community, Authorities |
Target indicators and results in 2010, Competition, Competition investigations |
| Corruption |
Infringements damage the company, its reputation and brand. Customers and the company risk being affected financially, and the community may be charged with additional costs. |
Zero tolerance. Work on implementing the Code of Conduct continued by focusing more intensely on certain specific sections and by maintaining a high standard in the continuous implementation activities. Procedures for “Acceptance Letters” issued by the Group’s President, whereby employees sign a letter each year to confirm that they will adhere to the Group’s steering instruments, were introduced. |
Customers, Community, Employees |
Target indicators and results in 2010, Anticorruption, Code of Conduct |
| Values and Code of Conduct |
Infringements damage the company, its reputation and brand. Customers and the company risk being affected financially and the community may be charged with additional costs. Clear and positive values and a Code of Conduct provide competitiveness and reduce risks. |
Communication, training and monitoring of the Group’s values and Code of Conduct. Mandatory for all employees. E-learning program and “Acceptance Letters” from President. Internal auditors have commenced training to be able to conduct Internal Code of Conduct audits. The second phase of the training program ends in March 2011. |
Employees, Customers, Suppliers, Community, Shareholders, Authorities |
Target indicators and results in 2010, Core values, Code of Conduct, Training and development |
| Assessment of suppliers |
Significant CR-related risks that Trelleborg can influence by imposing requirements in connection with procurement. |
Trelleborg’s objective is to work only with suppliers who support our quality requirements and business principles. Evaluation of suppliers is primarily through joint Group self-evaluations. Unsatisfactory answers are investigated. Underperforming suppliers are given a deadline for remedial measures. An inventory of the Group’s large suppliers, from an environmental and social responsibility perspective, has been ongoing since 2009. A new dimension will be added in 2011 in the form of an evaluation of overall risks, such as credit risks and the risk for production disruptions arising from natural disasters. In 2011, self-evaluations will become mandatory for every local purchasing unit through integration of the units in Trelleborg’s obligatory “Procure-to-Pay” process. |
Suppliers, Shareholders, Community |
Target indicators and results in 2010, Suppliers |
| Products and applications |
In environments with an increased level of risk, products and applications may potentially entail risks for the company. |
When developing new products, consideration is given to legal and customer requirements, product liability, and environmental health and safety aspects. In the Trelleborg Engineered Systems and Trelleborg Sealing Solutions business areas, a comprehensive and systemic identification and evaluation of risks in the production portfolio has taken place. Various criteria were assessed, including the product’s vulnerability, the size of contracts and launching of new products and technologies. In the business units for offshore oil/gas, ship fenders and aviation, a risk management process – Contract Risk Pack – has been in place since 2009. This highlights the risks associated with the product, the application and the manufacturing process, and links them to the contractual risks. In 2011, these processes will be implemented in other business units in the Group. In line with this, auditors from the company’s insurance company have carried out risk analyses in several units with a focus on product-related risks. This will also continue during 2011. |
Community, Customers, Suppliers |
Products, Sustainable solutions |
| Products and applications |
Market opportunities: Increased interest in cleantech provides new opportunities for products in the areas of “sealing, damping, protecting.” Trelleborg’s products and applications often entail protection for people and the environment. |
Through Trelleborg’s primary task – to seal, damp and protect in demanding industrial environments – the operation’s products and solutions contribute to the company’s own development and community development in the environmental and work environment areas. |
Community, Customers, Suppliers |
Sustainable solutions |
| Legal adequacy and quality of supplier agreements |
Ensuring the legal suitability and quality of the Group’s agreements |
Several processes were initiated to better ensure the legal suitability and quality of the Group’s agreements. The initiative is supported by the Group Legal Department but is being implemented on-site in the business units. Examples include the production of standard forms, the use of checklists for risk assessments and policies governing liability caps and signing procedures for agreements. The risk management process, Contract Risk Pack, is used to ensure the suitability of a contract with continued implementation during 2011. During the year, the structure in relation to contract reviews has been further strengthened with the implementation of an overall review process, which ensures that a large amount of contracts are reviewed in line with central guidelines. The guidelines, the “Eleven Commandments” relate to fundamental and prioritized contractual issues. |
Suppliers, Shareholders |
Risk management |
| Exposure to natural disasters |
Natural disasters threaten plants and can entail production stoppages. |
The action program produced as a result of the analysis conducted in 2010 has largely been implemented. The action program has been designed to reduce risks, by increasing plant protection, raising the awareness of local management and creating and improving procedures for being prepared in the event of a natural disaster. Examples of implemented actions are preparedness plans, overhaul of roof installations and installations of automatic shut-off for incoming gas. |
Shareholders, Employees, Customers |
Risk management |
| Environmental impact of accidents |
If a plant were to be affected by an accident, this could have environmental consequences in the form of ground, air and water pollution. |
Valuable information about the various risks at our plants is found in different parts of the Group. An improved process that views risks at a general and accumulated level facilitates a better assessment of the impact on the Group. Risk analyses are now conducted at plants in conjunction with property insurance and certification in accordance with ISO 14000, the collection and analysis of chemicals in REACH work, for example, and evaluations of operations as performed by local authorities. After an evaluation, those plants that are considered to have a potential risk for environmental impact have been involved in the risk work, and an action program has been introduced during 2010. In collaboration with the local environmental management, FM Global has identified important hazardous chemicals that exist, how they are used, stored and protected. |
Shareholders, Employees, Customers, Community, Authorities |
Target indicators and results in 2010, Risk management |
| Environmental impact |
Inadequate procedures for the management of the operations’ environmental aspects can potentially harm the environment and thus the company’s reputation and community relationships. |
The implementation of ISO 14000 certified environment management systems in all major production units. Internal recommendations for the management of specific environment risks. External and internal environmental audits. The target is to implement environmental management systems in 90 percent of the production units, with 85 percent having ISO 14 001 certification by 2011. |
Community, Employees, Shareholders |
Target indicators and results in 2010, Environment, Environmental management |
| Operation-critical plants |
A stoppage at a critical plant could have financial and other consequences for customers and Trelleborg. |
Two of the tools used are Business Impact Analysis (BIA), which studies the plant’s current risks, and the strategy plan that assesses future opportunities and benefits. The action plan to be applied depends on the results obtained. Plants of high strategic value can, for example, be equipped with water sprinklers or local sprinkler protection in particularly critical plant areas to prevent disruptions to production. The process of improving implementation of continuity plans that enhance preparedness for the Group’s operations continues. During the year, the ERM Board has produced a list of critical plants for special attention. In 2010, “Risk Dashboards” have been created for these critical plants and a plant-specific ID card, which describes the risk status of each unit. In addition, specific action plans were produced for 33 plants within the Group with the purpose of significantly raising the level of protection. Of these, the ambition is to raise 17 plants to a Highly Protected Risk (HPR) level, which is the highest risk classification. |
Shareholders, Employees, Customers, Community |
Risk management |
| Raw materials and energy consumption |
Increased production costs in pace with rising energy and raw-material prices. Certain raw materials require long-distance transportation. |
More efficient use of resources via process and product development through the reduction of waste, waste recycling and energy conservation. Supported by the implementation of the Manufacturing Excellence program (includes Energy Excellence). The program has in 2010 been especially successful when it comes to energy savings (see below). |
Shareholders, Employees, Customers |
Target indicators and results in 2010, Raw materials, Energy |
| Climate |
Risk of extreme weather conditions and flooding. Possible property risks and disruption of energy supply, transportation, etc. Increased social requirements on the reduction of climate-impacting emissions. |
In 2009, Trelleborg introduced a new climate strategy. The Group-wide energy-efficiency program – Energy Excellence – was introduced at all units and is focused on the following areas: heating/ventilation, energy production, lighting, compressed air, general energy governance and follow-up. In 2010, the program has generated distinct savings in the form of lower energy consumption and energy costs and reduced the Groups total carbon emissions. |
Shareholders, Community |
Target indicators and results in 2010, Trelleborg and the climate: opportunities and risks, Climate impact |
| Chemical handling |
Growing demands on product performance and product safety. Increased restrictions and disclosure requirements on input components. Occupational risks and stringent requirements on safety measures in conjunction with the management of hazardous substances. Future requirements on phasing out and substitution with alternatives. |
Mandatory evaluation of all chemicals with regard to the environment and health and safety. Recording of all risk chemicals. Fulfillment of requirements in EU REACH regulation. Identification and substitution of arduous chemicals. Internal company phase-out list under development. Activities to adapt the Group’s operations to REACH continued in 2010, with focus on communication with suppliers and customers regarding REACH-related issues to ensure compliance. |
Employees, Customers, Suppliers, Community, Authorities |
Target indicators and results in 2010, Raw materials |
| Health and safety |
Risk to the health and safety of the Group’s employees. Injuries and illnesses are costly for the company and lead to losses in productivity. |
The Group has its own program, Safety@Work, to assess occupational risks. Follow-up is conducted annually through self-assessments and audits. In 2010, the program continued to generate results in the process of developing the safety culture. |
Employees, Community |
Target indicators and results in 2010, Work environment - Health and safety |
| Recruit, develop and retain employees |
Motivated employees and strong leadership are needed for a long-term, successful business. |
Talent management, a focus on internal and local recruitment, leadership training and performance reviews. In 2010 a shared internal tool was used for the review process by approximately 2,800 employees, which is an important step in the right direction to making a uniform process for the entire Group. |
Employees, Community |
Target indicators and results in 2010, Talent Management |