Integrated thinking, integrated reporting
Kendrion approaches the strategic targets, both financial and non-financial, on an integrated basis whenever possible. The environmental, social and other sustainability targets are treated as part of the ordinary business processes. Kendrion is seeing a growing interest among stakeholders in receiving transparent information on social and environmental aspects as well. Kendrion is responding to these developments by publishing this first integrated report, highlighting how Kendrion aims to create long-term value, financially and otherwise, for all its stakeholders.
For Kendrion, Corporate Social Responsibility (CSR) means: The responsibility of an organisation for the impact of its decisions and activities on society and the environment, through transparent and ethical behaviour. To us, social responsibility is not a separate pillar in our organisation, but an ambition integrated into our everyday decision-making. At Kendrion, CSR is not just about being responsible; it is about taking responsibility.
CSR programme 2015 - 2017 'Taking Responsibility'
Kendrion adopted a CSR programme entitled ‘Taking Responsibility’ for the period 2015 – 2017. The programme not only aims to anchor further CSR and sustainability in the company’s business processes but also to increase
the commitment to more sustainable products and services in line with the way customers respond to so-called ‘megatrends’.
Some of the megatrends relevant to Kendrion are:
- A rapid growth of the world population, especilly in emerging markets:
- Increased mobility, safety and connectivity needs of people and goods;
- An increasing scarcity of natural resources:
- The transition to more sustainable energy due also to climate change.
Some of these megatrends, such as the scarcity of natural resources and the reduced availability of energy sources, could in the longer term become a threat to the growth of Kendrion’s business and therefore need to be addressed in a timely manner. These trends, however, also offer opportunities for Kendrion. Utilising such opportunities and using scarce energy and other natural resources in a responsible way will, in the long run, make an essential contribution to the creation of value for all Kendrion’s stakeholders. Therefore, Kendrion has included sustainability and CSR as spearheads in the company’s general strategic policy. This report includes several examples of responses to the megatrends referred to earlier.
Kendrion endeavours to reduce waste and make efficient use of energy, and encourages the company's employees to make ongoing organisational and technical improvements to environmental procedures. During the design and technical planning stages, Kendrion takes due account of the consequences for the environment. This not only enables the company to lower harmful emissions and reduce its environmental footprint, but also ensures that it can maintain its good reputation.
A new long-term CSR strategy will be developed in consultation with relevant stakeholders and management in the course of 2017. There will also be further attention devoted to how Kendrion can contribute to the objectives of the Paris Agreement on Climate Change and the UN Sustainable Development Goals.
Kendrion's CSR organisation
Commitment top management
The CSR strategy, key issues and objectives are adopted by the Executive Board and Management Team. The CSR programme, Taking Responsibility, is also discussed during Kendrion’s annual Top Management Meeting. Each of the business units is requested to prepare an own CSR plan, closely related to their own business and processes. CSR and sustainability objectives are included in the performance criteria governing the variable remuneration awarded to top management, including the Management Team.
The Supervisory Board recognises the importance of Kendrion’s CSR programme and advocates a strong focus on the company’s social and environmental standards governing its processes, health & safety and the relationship between the overall strategy and sustainability. The Supervisory Board reviewed the achievements and endorsed the CSR programme.
CSR Board and ambassadors
A CSR Board gives further shape to Kendrion’s CSR activities. The Board’s members are representatives of the business units and departments and come from Austria, the Czech Republic, Germany and the Netherlands. Board members do their CSR work in addition to their regular Kendrion duties. In addition to the CSR Board, there are ‘ambassadors’ in all operating companies who support CSR activities locally.