The policy has been further developed on the basis of the same main topics as previously, but gives a clearer description of KONGSBERG's ambitions and core target areas. The policy addresses to a greater extent the business opportunities inherent in the international development trend
KONGSBERG aspires to achieve sustainable development, i.e. to strike a good balance between financial results, value creation and corporate social responsibility. The value created shall benefit owners, stakeholders and society-at-large. Our policy for sustainability and corporate social responsibility is intended to describe our ambitions and our most important target areas. The policy shall provide the framework for our work with sustainability and corporate social responsibility.
The World Commission for Environment and Development described sustainable development as a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This is also the definition applied by KONGSBERG.
Roles and responsibilities
KONGSBERG's Policy for Sustainability and Corporate Social Responsibility is adopted by the Group's Board of Directors and shall be evaluated at least every second year.
The CEO is responsible for ensuring the follow up of and compliance with the content of the policy.
Subject-specific responsibility for sustainability and corporate social responsibility, and the routine responsibility for facilitating and coordinating the policy rest with the Group's corporate social responsibility manager.
The business areas are responsible for the day-to-day practice of the policy.
The international trend will entail risks as well as opportunities for multinational enterprises.
The Earth's population is expected to grow from 7 billion today to 9 billion by 2050, i.e. an increase of about 30 per cent in 40 years. Over the next decade, there will be growing urbanisation and better social welfare for ever larger segments of the population. This poses formidable challenges with a view to food safety and access to clean water, energy and minerals, as well as in respect of the loss of biodiversity.
These megatrends are already having an impact on individuals, companies and countries, and their impact will no doubt loom larger in the years ahead. Along with climate changes, these development trends will be among the basic strategic drivers for multinational enterprises in future.
The trends could represent significant risks in many areas. At the same time, industry will have to play a major role in resolving these challenges. This entails significant opportunities in several markets, also for KONGSBERG. This can be illustrated as follows:
There shall be coherence between our ambitions and our business goals
KONGSBERG's Sustainability and Corporate Social Responsibility Policy is intended to promote the Group's long-term business goals. At the same time, the Group's goals must be compatible with sustainable development.
The long-term consequences of the global megatrends linked to opportunities and risks shall be met by the Group's regular strategic processes.
KONGSBERG's operations are not perceived as entailing particularly great challenges as regards environmental pollution. Notwithstanding, the Group shall always strive to improve and develop its business activities, not least in this area.
We will maintain a proactive attitude to sustainable development and business opportunities
The strategic and business decisions taken within the Group are to be considered from the perspective of sustainability.
Business opportunities aimed at promoting a sustainable future will also be part of the business areas' strategic assessments.
We will stay abreast of international and national trends
The Group's work with sustainability and corporate social responsibility will be on a par with national and international trends in the field. The importance attached to this work shall be proportional to the potential business opportunities and the expectations of owners, customers and other stakeholders.
We will endorse international initiatives and guidelines
KONGSBERG endorses the UN initiative Global Compact and will work systematically to comply with the initiative's 10 basic principles within the areas of human rights, workers' rights, environment and anti-corruption. Similarly, the Group will strive to comply with the intentions laid down in the ILO conventions, the OECD Guidelines for
Multinational Enterprises, the UN's Universal Declaration of Human Rights and UN Convention on Children's Rights.
We will safeguard our relations with our most important stakeholders
We will strive to ensure that suppliers and business partners comply with principles for sustainability and corporate social responsibility that are in alignment with KONGSBERG's own.
TWO MAIN ELEMENTS
The policy is built up around two main elements:
'Business as usual' is not an alternative when it comes to resolving the challenges facing the world today. The situation calls for new ways of thinking, new forms of cooperation, political will and a high degree of technological innovation.
As regards the global megatrends, there are business opportunities for KONGSBERG in existing markets, as well as in entirely new markets. KONGSBERG possesses key expertise in several relevant areas of technology. These opportunities and this expertise are to be put to use where it is prudent to do so from the business perspective.
KONGSBERG currently works with advanced technology, and several of the Group's product areas aim directly at more efficient use of energy and resources in their areas of application. This is especially true of our operations in the maritime and oil & gas sectors. The efficient use and the conservation of resources are also important for our defence activities. Norwegian and international customers alike attach importance to this and KONGSBERG will strive to offer the best solutions.
Sustainable solutions – existing products
As regards existing markets and products, priority will be given to improving and developing solutions that will contribute to a sustainable future. Market needs, business attractiveness, and proximity to the existing platform of expertise will be normative.
Sustainable solutions – new products and new business segments
KONGSBERG will also actively consider new market opportunities that open up in response to the global challenges facing the world. This may pave the way for entirely new products and business segments. KONGSBERG has a good technological point of departure in several important disciplines that may contribute to such new solutions.
Maintain the right to engage in our business activities 'Licence to operate'
Society sets standards for enterprises' exercise of sustainable development and corporate social responsibility; this is a prerequisite for obtaining a 'licence to operate.
Without this 'licence', KONGSBERG risks losing the opportunity to grow, be innovative and to actually conduct its business. Like all other enterprises, we are dependent on our stakeholders' confidence in us.
In the following, we describe the main areas of importance relative to our ‘Licence to operate’:
Corruption undermines all sorts of business activities and free competition, and it is prohibited by law in all the countries in which we operate. Corruption is destructive for the countries involved and would erode our reputation, exposing the Group and the individual employee to considerable risk.
KONGSBERG is opposed to all forms of corruption, and in conjunction with our operations, we will actively strive to fight it.
• Human rights
All our operations will strive to comply with the UN's Universal Declaration of Human Rights, the UN's Convention on the Rights of the Child and the ILO conventions. Human rights abuses shall not occur at KONGSBERG.
The Group shall have routines for analysis, verification, reporting and follow up of possible violations of human rights linked to our own operations, as well as in respect of business partners in the event of any violation of human rights related to our activities.
• Workers' rights
Our employees shall be treated with respect and given orderly working conditions. All employees will be given equal opportunities. The Group recognises freedom of association and the right to collective bargaining. In cases of conflict with local legislation, local legislation will take precedence. Wages shall as a minimum be enough to live on. Forced labour, child labour and all forms of discrimination are strictly forbidden. Health and safety are high-priority areas.
• Climate and the environment
KONGSBERG shall act responsibly with a view to the footprint left by its activities on the climate and the environment. The operation of the Group and the development of products are to be approached from a 'green' perspective.
We will focus inter alia on:
• reducing our own direct and indirect emissions of greenhouse gases (GHGs)
• making more efficient use of resources in general, not least by reducing consumption through the more efficient use of energy, water and materials
• increasing the efficiency of waste management
• viewing product development in a life-cycle perspective
In collaboration with its suppliers, KONGSBERG shall strive to ensure that operations are conducted in compliance with internationally recognised principles for business ethics and corporate social responsibility.
In selecting suppliers, one of our assessment criteria shall be the suppliers' work with human rights and workers' rights and anti-corruption, and the supplier's work in the area of climate and the environment.
• Local engagement
Through social investments, we will make positive contributions to the development of the local communities in which we operate.
We will cooperate with our stakeholders, including non-government organisations (NGOs), to increase the transparency of our work with sustainability and corporate social responsibility. This will also enhance our expertise and the quality of our own work.
FOLLOW UP AND REPORTING
Our work with sustainability and corporate social responsibility will be planned in a professional manner and integrated into the Group's business strategy. These efforts are to be part of business planning and the Group's regular follow-up routines.
They shall be further developed systematically, and linked to reporting and measurement criteria associated with sustainability and corporate social responsibility.
Our external reporting will adhere to the principles of the Global Reporting Initiative (GRI).