Reporting provides information for stakeholders
The overarching objective in Outokumpu's corporate responsibility reporting is to support an open dialogue between the Group and its stakeholders. Our aim is to address the needs of our current and future personnel, shareholders, customers and other parties who are interested in Outokumpu and its business. We pay special attention to addressing the concerns of these stakeholders. Read about our stakeholder dialogues here.
We utilise reporting as an opportunity to illustrate what Outokumpu has done to ensure the sustainability of its business operations, and what actions we hope to take in the future to enhance the well-being of people and the natural environment that surrounds us. The Group has a long history of responsible business practices and we hope to make our operations even more sustainable. We report on matters considered important and relevant to our business operations, such as stainless steel – our product and the material of sustainable development. We also cover current global themes that have an effect on us, our operations and our stakeholders.
Valuable feedback was received during 2009 from the reporting competition in Finland, from analyst reports and from our assurance providers. Our first Group-level meeting with environmental NGOs was very useful in this connection. Feedback helps us as we seek to further improve our reporting – we believe that thorough reporting promotes development of our way of working and our operations.
Contact details for questions regarding the contents of this report can be found here.
Scope of the report
Outokumpu's corporate responsibility report is published annually. The reporting period is the same as our financial reporting period i.e. a calendar year. Our previous report "Outokumpu and our environment 2008" was published on March 13, 2009 together with Annual Report 2008.
This 2009 online report is a natural progression from our previous, printed sustainability reports in 2005–2008. Since 2004, Outokumpu's reporting has been based on the widely recognised and applied Global Reporting Initiative (GRI) guidelines (G3 from 2007), and follows the recommended tripartite division into economic, environmental and social responsibility. We also reflect on the impacts of Group operations on different stakeholders. A comparison of Outokumpu reporting with the GRI guidelines and the 10 principles of the UN Global Compact can be found here.
Economic and social information is covered from the perspective of Outokumpu's entire stainless steel operations. Environmental indicators include all Outokumpu Stainless Steel production plants.
While Outokumpu still has brass bar operations (a total of 149 employees and net sales of some EUR 31 million), the Group has announced that these are being divested. Information concerning this business is not included in this or previous corporate responsibility reports.
Comparability of statistics
Even though major changes have taken place in Outokumpu's organisational structure, the statistics provided in the Group's 2005, 2006, 2007, 2008 and 2009 reports are comparable as the reporting focuses solely on the Group's stainless steel operations, our main business today. As mentioned in our previous reports, we have closed some smaller stainless steel units in Sweden and the UK. However, their impact on our emissions or other figures is insignificant. Figures for copper and brass businesses divested in 2005–2008 have not been included. We have not noticed nor are aware of any errors in the data provided in our earlier reports. Since 2007, Outokumpu reports have included an assurance report that has been submitted by independent external assurance providers. This independent assurance report is available here. The data based on the financial statements has been audited.
Measurement techniques
Economic responsibility
All the economic figures in the Corporate Responsibility section only cover our stainless steel operations ie. excluding our so-called discontinued operations (non-core operations).
Accounting principles have been adjusted to better meet the GRI guidelines.The comparative figures have been restated in the tables: Wages, salaries and other employee benefits by country and Taxes and social dues by country.
Environmental responsibility
Environmental expenditure
Financial information related to environmental investments is collected according to group wide unified guidance in line with GRI and World Steel Association principles. Data is aggregated through our EER reporting system, which also has group guidance integrated.
Water
Water use reporting is based on measured and calculated consumption and information is collected according to group wide unified guidance in line with GRI and World Steel Association principles. Water balance information is aggregated through our Energy and Environment Reporting System, which also has group guidance integrated.
Social responsibility
Lost Time Injury
(Worldsteel Association's principle) Injuries per million hours worked
Any work-related injury, resulting in the Company or Third Party Contractor employee not being able to return to work the next scheduled work day. Returning to work with work restrictions does not constitute lost time injury status, no matter how minimal or severe the restrictions.
EU average LTI
From statistics supplied by Worldsteel Association which is followed by all member companies.
Near miss incidents
Come from our own hyperion system, where number of incidents is collected at business unit level. Source of information is Safety log, but also other reporting sources as not all units use Safety log.
Sick leave days
Business units report data on sickness absence and occupational diseases on a monthly basis together with financial reporting. In the future sick leave days will be reported per million hours worked, not in percentages which is slightly controversial as there are differing ways in different countries.
Personnel figures
We use, as in previous years, the full-time equivalent (FTE) to calculate our personnel. This will, however, be changed as of 2010, when we start using actual headcount figures, as recommended by our assurance providers.
Total personnel costs
The figure includes wages, salaries, bonuses, social costs or other personnel expenses and fringe benefits paid during the reporting year 2009. The 2008 total personnel costs were calculated without social costs or other personnel expences and fringe benefits.
Training costs
External and internal training costs (in euros) are counted from the specific account assigned to training costs per company. Costs also include the salaries of internal trainers. Wages and salaries of the participant are not included.
Training days per employee
The number of actual internal and external training days in which 8 hours equals one day (actual training day = training hours/8).
Incentive bonuses
Amount of bonuses (in euros) is counted from the specific account assigned to bonuses per company without social costs or other personnel costs or personnel expenses and without fringe benefits.
Personnel turnover (termination and recruitment turnover separately)
(new hired + leavers)/(2 x average headcount)
Days lost due to strikes
Number of employees, who have been on strike multiplied by scheduled working days. The count begins the day the strike has started.