Our sustainability strategy is fully integrated into our corporate strategy and is challenged frequently by regular analysis, including climate-related risks and opportunities. We have a governance structure in place to monitor the progress of our sustainability strategy, ambitions and initiatives.

Climate change is the ultimate safety test.

How are we organised?

Our sustainability governance structure is organised according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

Climate change is the ultimate safety test.

The organisation

Our BoD sets the strategic direction and approves our strategy, including sustainability. It follows up progress in the PSC. Our climate action plan with its risks and opportunities is discussed at least twice a year. PSC also brings a diverse and outside perspective to sustainability issues for the company.

The EMT is responsible for the overall governance, execution and implementation of the sustainability strategy and regularly monitors progress through several KPIs. The climate action plan with risks and opportunities is reviewed quarterly.

The GST is centrally responsible for the day-to-day governance and coordination of sustainability. It develops and refines the sustainability strategy, leads and supports the strategic initiatives and follows up on the progress of our KPIs. It also gathers business intelligence on sustainability matters.

The GSC is chaired by the Head of Global Sustainability and consists of members that are authorised line organisation representatives with the mandate to take decisions, provide guidance and support initiatives to drive the strategy and performance forward. The purpose is to improve cross-departmental collaboration and understanding, as well as act on major sustainability issues and risks.

The GSC regularly updates and reports to relevant EMT Boards for decisions. Climate related risks and opportunities are discussed and fed into the Enterprise Risk Management process, where the Head of Global Sustainability is one of the Corporate Risk Managers.

The GFC reviews and validates the selection of the Eligible Green Projects – see the Green Financing Report details on page 148 of our Annual Report 2020 for further information.

Functional management teams are responsible for ensuring that sustainability becomes an integrated part of everyone’s daily work. They are sounding boards for the GSC members and can be requested to secure resources and funding for sustainability initiatives.

ESG reporting

We believe in external third-party validation of our sustainability performance. It’s essential to gaining credibility. It’s reassurance to our people and external stakeholders that our sustainability strategy and our ambitions support global goals, such as the UN SDGs and the Paris Agreement.

Climate-related risks and global warming scenarios

From a world economic point of view, climate change is a top risk both in terms of impact and likelihood. It affects our company and our industry in many ways. In 2020, we started analysing different global warming scenarios in accordance with TCFD recommendations to verify the resilience of our strategy. We used IEA’s Stated Policies Scenario (4DS) and Sustainability Development Scenario (<2DS) for analysing Transitional Risks and IPCC’s 8.5 Scenario for analysing Physical Risks. By analysing impact and likelihood in these different scenarios, we not only identified risks that affect our company, but also opportunities.

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