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.
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.
CSR strategy 2018 and beyond
Kendrion’s Taking Responsibility programme has resulted in major achievements over the past three years. Progress was made in various areas, including the establishment and further improvement of sustainable business processes, the reduction of energy consumption and CO2 emissions, the introduction of various health and safety initiatives, the increased commitment of Kendrion’s suppliers to make a positive contribution through their adherence to the Kendrion Supplier Code of Conduct, the launch of the Together@Kendrion initiative, and many other important accomplishments. 2017 was the final year of Kendrion’s CSR strategy for 2015 – 2017.
In the course of 2017, the Executive Board together with the Management Team developed proposals to extend the CSR strategy to 2018 and beyond. The proposals are directed at further alignment and integration of the CSR strategy with the ‘Simplify, Focus and Grow’ strategy. Moreover, the emphasis of the updated CSR strategy is on long-term value creation for Kendrion and society through pillars of value creation, taking into account the interests and reasonable expectations of Kendrion’s stakeholders. Important pillars of value creation are: Natural Capital, Social and Human Capital and Responsible Business Conduct. A thematic approach applies for each pillar, as this contributes to an integrated way of thinking and acting.
The CSR strategy for 2018 and beyond will be integrated with the Mid-Term Plan 2019 – 2023. It is anticipated to finalise and communicate the updated CSR strategy and the related long-term targets in the course of 2018 together with the Mid-Term Plan 2019 – 2023.