Sustainability governance and management

/AAES/OW2/AAES%20common%20files/About%20us/Images/AAES_Sustainability-governance-1000x435px.png

The ASSA ABLOY Group applies the Swedish Code of Corporate Governance, which forms part of the rules of the Stockholm Stock Exchange.

The Code is based upon the principle of “comply or explain”, and primarily deals with the organization and working methods of the Annual General Meeting and the Board of Directors, as well as the management of and interaction between these bodies.

Sustainability governance and organization

The Board of Directors has the overall responsibility for identifying and managing existing and emerging risks. The Executive Team is responsible for sustainability risk management and decides on sustainability policy, Code of Conduct and strategy.

Managing the sustainability agenda

In the ASSA ABLOY Group, sustainability issues are managed in a systematic and consistent way. The environmental sustainability coordinators at the Group and divisional levels ensure that the necessary policies, programs and tools for managing environmental issues exist and are implemented, while the Human Resource functions at the Group and divisional levels are responsible for managing social and ethical matters.

Councils for Operations, Human Resources, Sourcing and Innovation, with representatives from the Group and all divisions, handle sustainability issues related to their areas. The divisions and their units are responsible for compliance with ASSA ABLOY policies and programs and for reporting to Head Office as requested.

A Code of Conduct compliance committee is chaired by the Group Senior Vice President of Human Resources, and its members include the person responsible for environmental sustainability at Group level and two employee representatives. Among other things, the committee handles whistle-blowing cases.

The Group intranet includes two sites about sustainability. One site offers general information for all employees, while the other supports the sustainability managers and includes tools, best practices, access to the reporting database and all sustainability indicators. Statistical reports and score cards enable all of the ASSA ABLOY companies to monitor their performance and to compare themselves with other companies in the Group.

Organizational responsibility

In ASSA ABLOY’s decentralized organization, the responsibility for implementing the Code of Conduct and other policies, such as the risk-management policy, as well as for identifying and managing sustainability risks, is delegated to each division, overseen by the Executive Team. Within the divisions, the operational responsibility is delegated to each factory or business.

The responsibility is not limited to our own operations, but also includes the supply chain and supply chain audits. Each division is further responsible for ensuring that new suppliers meet ASSA ABLOY’s requirements.

At Group level, performance is monitored via the sustainability reporting process, which includes each company’s reporting of the most material environmental risks and actions to mitigate these risks.

Divisional board meetings address risks, compliance and other sustainability-related matters.