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MYTILINEOS HOLDINGS - SUSTAINABILITY REPORT
2016
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Key non-financial risk factors
with potential immediate impact on the Group’s operation
Environmental
issues
In addition to the other risks, MYTILINEOS Group has acknowledged certain environmental
risks, i.e. the potential impact of its activity on the natural environment (air, water, soil), and
has been making appropriately selected investments in order to significantly minimise the
probability of such risks and also reduce its own environmental footprint.
Additionally, the systematic application of Best Available Techniques (BATs) in the production
process and in waste management, as well as the use of more environment-friendly fossil fuel
(i.e. mainly natural gas), particularly in the Metallurgy and Energy sectors, is a key factor of the
Group’s business growth and of its commitment to protect the environment and to ensure the
sustainable management of natural resources. This practice improves the footprint of industrial
activities on the environment and reduces the risk of substantial unforeseen expenses and the
risk of facing sanctions for non-compliance with the environmental regulations and restrictions.
It also simplifies the actions needed to manage the trust of the Group’s key Stakeholders and,
especially, of the Group’s clients, while also solidifying its “social license to operate”.
Energy consumption has a direct effect on the Group’s environmental footprint, on its
operating costs and on the prices of its products. The consumption of non-renewable primary
fuels contributes to the direct emission of air pollutants. Like most high-energy industrial
enterprises, MYTILINEOS Group produces air pollutants that contribute to climate change,
both in the Metallurgy sector and in the Energy sector. The Group’s actions to stabilise CO2
emissions are of substantial importance because they support its operational efficiency. To
this end, the Group monitors, on a monthly basis, the CO2 emissions and implements timely
corrective actions in order to ensure that its annual carbon dioxide emissions are in line with
the legal restrictions and, most importantly, are kept at the lowest possible level.
Also, MYTILINEOS Group is subject to and fully complies with the applicable regulatory
framework and the allowances of the EU Emissions Trading Scheme (ETS), as well as the
restrictions of the applicable EU regulatory framework for large industrial combustion
installations.
Occupational Health
and Safety
The Group’s activity sectors are linked, due to their nature, to Occupational Health & Safety
issues (accidents and occupational diseases) which may have a significant social impact, mainly
due to the social problems caused to the employees and their families. Additionally, they can
lead to other risks, such as: reduced output and productivity, low employee morale, increased
cost of accidents/absences and the adverse effects on the Group’s image and reputation.
Against these risks, MYTILINEOS Group adheres to the applicable Greek and European laws
and the local regulatory provisions on Occupational Health & Safety without fail. In fact, in many
cases the Group’s compliance with the relevant legislation is achieved by the Group itself
imposing certain much stricter limits through the relevant Management programmes and
systems in place. The Group acknowledges that the elimination of accidents and occupational
disease incidents at the workplace, and especially at its production facilities, greatly helps
boost its competitiveness and achieve wider financial growth in general. The Group aims to
maintain the high health and safety indicators in all its business units with the implementation
of action plans and specific programmes to protect and improve the employees’ quality of life,
focusing on:
Occupational Health
and Safety
• The constant recognition and assessment of said risks and the implementation of the
necessary measures to prevent them.
• The use of advanced prevention tools and exhaustive analysis of all accidents, near misses
and safety incidents.
• Constant provision of information to personnel and systematic staff participation in special
training programmes on Occupational Health & Safety.
• Implementation of specially-targeted communication initiatives to raise employee
awareness.
• Systematic inspection of the organisation and the processes in place to ensure complete
adherence to safe work rules across all activities of the Group’s Companies and to protect
the safety of employees, clients, associates and other citizens visiting the Group’s facilities.
Climate change,
relevant laws and
regulations and
greenhouse effects.
As a result of the EU regulatory amendments, the Group’s operating margins might be
affected by the changes that could be put in place in its production facilities having increased
emissions of greenhouses gases and in its facilities with high energy needs. Given the
width of the scope of such changes, the assessment of the eventual impact of the future
legislation and legislative framework for the climate change, as well as of the European
and international conventions and agreements is unclear. The Group might be obliged to
undertake significant investments in the future in order to comply with the new, amended
legislation and the new regulations. Finally, the Group, as a result of an eventual deficit
or surplus in terms of CO2 emission rights management and due to its large energy
consumptions mainly because of the production of aluminium, might recognize significant
cost or revenue in future.
On the other hand, due to anyone of the aforementioned legislative changes relating to the
climate change, the Group might be given opportunities in the EPC sector.
Retention of able
personnel
The leading position of MYTILINEOS Group in its various activity sectors is largely due
to its ability to attract and retain able and talented employees. However, in the course of
its operation, the Group may face risk related to: the directly linked expenses that may
arise due to personnel voluntarily leaving the Group, the loss of valuable knowledge and
experience gained through the employment and training of employees by the Group, the
financial investment and the investment of time and human resources necessary to train
the employees, as well as the wider adverse effects on the cohesion of the common culture
that has been built.
These risks are managed through a global approach to HR management, focusing on:
• The development of talent management and development systems and succession plans.
• The application of modern systems for employee performance assessment
• The implementation of training and skill development programmes allowing employees to
fulfil their professional objectives in a constantly changing financial and social environment
• The comprehension of the Code of Business Conduct by all members of staff
• The constant improvement of working conditions and occupational health & safety for all
personnel and associates
• The systematic self-assessment and the protection of Human Rights, and especially labour
rights
Key non-financial risk factors
with potential immediate impact on the Group’s operation
