The governance of the Group’s strategy, including its climate change transition plan and GHG reduction targets, ensures oversight and effective implementation.
The Board of Directors is responsible for the Group’s strategic direction and sustainability objectives, aligning financial, business, and ESG interests. This includes assessing climate-related risks and opportunities, ensuring implementation, and regulatory compliance. The Board annually reviews ESG trends and regulations to keep policies aligned with evolving requirements and considers climate-related issues in strategy, risk management, and performance objectives.
In July 2024, the oversight responsibility for the climate change strategy was transferred from the Audit and Risk Committee (ARC) to the Innovation and Technology Committee (ITC).
The implementation of the Group’s climate strategy is coordinated by the cross functional Green Steering Committee, which also is responsible for the implementation of the Group’s Green Master Plan (see section Green Chemistry). This plan includes initiatives that impact both the optimized use of chemical substances and the Group’s carbon footprint.
The Director Global EHS, a member of the Green Steering Committee, develops and deploys the transition plan, oversees GHG emissions assessments, and updates progress toward science-based targets. He ensures clear reporting mechanisms for tracking and managing climate-related matters, to meet the Group’s climate targets. The Director Global Operations and site directors execute the transition plan at manufacturing sites.
The ESG Steering Committee ensures that progress on the transition plan implementation is disclosed and that all regulatory requirements are considered. Internally, progress is reported as follows:
Independent third-party assurance verifies data accuracy, see also the Independent practitioner’s limited assurance report on selected non-financial information. The transition plan is reviewed every five years, with annual assessments for updates. The Director Global EHS organizes the review and presents it to the relevant governance bodies.
The Group’s Enterprise Risk Management (ERM) framework ensures a consistent approach to identifying, assessing, and managing risks and opportunities, also related to climate change. The Board of Directors holds ultimate responsibility for risk management, while the ARC oversees the ERM framework.