ESG - Sustainability Governance
Governance is the backbone of our strategy. It defines, guides and supports the important work of managing risks and delivering our commitments to inclusion, wellbeing, ethics, climate and environmental action and positive impact. We're committed to best-in-class governance, and as a result, we continue to strengthen our ESG organization to steer and support progress toward our ambitions.
ESG-focused organization
The sustainability committee ensures oversight of the Group’s sustainability agenda, strategy, policies and performance, Environment Social Governance (ESG) commitments and the ability to create shared value as is related to climate change mitigation and decarbonization, environmental impact of the Group’s operations, health, safety and wellbeing, diversity and the fostering of an inclusive work culture, human rights due diligence, responsible and sustainable sourcing and the related due diligence, and stakeholder engagement on ESG-related matters.
The tactical ESG board is supported by an ESG steering committee that brings together senior management representatives from each business group, as well as senior management representatives of corporate Environment, Health and Safety (EHS), ESG, Finance and HR. Implementation and performance against ESG KPIs are reviewed monthly by the ESG steering committee and recorded using an internal dashboard which is monitored and discussed as part of the tactical ESG Board. The management board members are each responsible for the overall ESG performance within their reporting lines, including e.g., sustainable and responsible sourcing, decarbonization or diversity in recruitment.
A dedicated corporate ESG division manages the programs aimed at the creation, integration and acceleration of strategic ESG initiatives (e.g., scope 1, 2 and 3 decarbonization, environmental impact, responsible sourcing) as well as programs or initiatives linked to governance topics, stakeholder engagement and materiality, ESG strategy, green finance and ESG disclosure. Corporate ESG is co-accountable with business units and corporate divisions in delivering performance, where each has (ESG topic) champions, that together with the corporate ESG team work to implement the most efficient pathways to reaching our shared goals.
Transparency and Disclosure
Transparency and disclosure are integral parts of good governance. For Umicore, that means full transparency on our contributions and impacts on sustainability and how we manage opportunities and stay resilient in the future. Umicore is committed to continuously improving the scope and granularity of our annual integrated reporting, for which we receive independent third-party assurance for financial and non-financial data. Our disclosure is designed to provide additional visibility and clarity on the impact and value Umicore contributes to society on ESG risks and resilience management and on our contributions to the Sustainable Development Goals.
By aligning with the Task Force on Climate-Related Financial Disclosures, we want to empower our shareholders to channel their energy, influence and investment to sustainable solutions, supporting the transition to a resource-efficient, low-carbon economy.
Read more in our Annual Report
Stakeholder Engagement
Umicore believes that success depends upon a relationship of trust and professionalism with our main stakeholders, namely our employees, customers, suppliers, shareholders, our neighbors, the governments and authorities in the communities in which we operate. Our Code of Conduct is fundamental to creating and maintaining that relationship of trust.
We value a continuous dialogue with our stakeholders, to understand and meet their expectations, and maximize our positive impact on society. In the lead up to our “Let’s go for Zero” sustainability strategy, we turned to our stakeholders to define materiality: mapping what was most important to them and where Umicore had the greatest impact.
Sustainable Growth
Umicore is built on profitable and sustainable growth and is a key player in transitioning to a low-carbon economy. Our best-in-class governance approach also means we will favor sustainable funding instruments as part of our 2030 RISE strategy to accelerate value-creative growth. We recognize the urgent need to transition towards a more sustainable future at Umicore. Umicore's commitment to supporting that transition is long-standing and continues through 2030 RISE. We know that embedding sustainability in our business strategy is essential to business and societal resilience today and in the future.
An example of our sustainable growth is demonstrated by our plant in Nysa, Poland. It is Europe's first plant to feature a complete circular and sustainable battery materials value chain. Moreover, the plant operates entirely on renewable electricity sourced from a nearby onshore wind farm, furthering our ambitions towards achieving carbon-neutral growth.
Umicore believes that a good corporate governance system is a necessary condition to ensure its long-term success.