Risks and opportunities
SUSTAINABLE PRODUCTS AND SOLUTIONS
- Products to capitalize on global trends for recycling, e-commerce, growing middle class, regulation and scarcity of resources.
- Products enabling our customers’ product quality, process and resource efficiency.
- Products addressing transition towards low-carbon and enabling circular economy.
- Growing regulatory demands for stricter requirements for water treatment and to replace plastics in single-use products.
- Disruptive technologies in our value chain, slow renewal of our product portfolio and lack of differentiation, and failure to commercialize new products and service concepts.
- Regulatory constraints related to our products or use of our products are always evolving. The outcome of regulatory processes can lead to a ban, authorization or restrictions of use which can affect our ability to
place products on the market.
We focus our innovation work on products addressing global trends and resource efficiency. This is based on systematic monitoring of market developments, competitive activities, and emerging technologies to enable responsiveness to changing customer needs. Our approach to collaborative product development is aimed to ensure a fast response to market needs and effective product launches through targeted marketing activities and training of sales.
All our products, raw materials and intermediates need to comply with all applicable chemical regulatory requirements in the countries where we manufacture and / or sell chemicals. We actively monitor changes both in chemical legislation and in regulations relating to the use of our products by customers. Our Product Lifecycle Management process covers assessments on regulatory compliance, human health impact, safety issues and environmental impact in every lifecycle phase, from conception and development to manufacturing and sales, and finally to product elimination.
RESPONSIBLE OPERATIONS AND SUPPLY CHAIN
- Digital solutions and streamlining of our business processes to improve our operational efficiency and asset utilization.
- Our globally integrated management system provides a platform for change management and to quickly comply with new regulatory requirements and stakeholder expectations.
- Raw material portfolio and energy mix development to reflect the needs of circular and low-carbon economy.
- Chemical operations involve harmful and hazardous substances controlled with a wide range of physical and chemical parameters. Malfunction in processes can lead to incidents with possible impact on environment, employee health and safety, or our assets. This can happen due to human behavior, technical failures or process safety deficiencies.
- Failure to develop safety management practices may increase risk of safety incidents causing supply and manufacturing disruptions.
- Raw material supply disruptions due to force majeure situations at market or single source.
- Failure by our vendors / suppliers to meet or comply with local environmental regulations.
- Some of our major product lines are very energy-intensive with environmental impact through carbon emissions. There are regulations emerging which set a price for carbon emissions.
Our integrated management system provides a solid platform for systematic risk management and continuous improvements in competences, procedural, technical and physical protection mechanisms. We systematically develop and implement certifiable management systems for environment, occupational health and safety, quality, and energy management. Legal reviews of changing regulatory requirements are a part of management frameworks, and legal compliance issues are part of management system reviews.
Our strategic sourcing through segmentation and the supplier management program aims to manage and develop performance and good governance throughout our supply chains, to reduce our risks related to the availability of raw materials, price volatility, and non-compliance, as well as to responsible business practices. Other measures include backward integration for critical raw materials and reducing the number of single / sole source situations, as well as effective contingency plans on core materials.
We secure cost-effective energy supply though strategic investments and by hedging.
PEOPLE AND INTEGRITY
- Ability to attract, retain and develop the right mix of talent, leveraging our strong employer brand and globally diverse, result orientated, and collaborative work environment.
- Culture of talent management, performance management and development, and employee engagement.
- Strong leadership competences, skilled technical expertise / industry knowhow and competent workforce.
- Operating in 40 countries with sales to over 100 countries creates an environment characterized by multiple ethics and compliance risks, including risk of corruption, fraud, competition compliance, trade compliance and human rights.
- Failure to enable safety culture development.
- Non-compliance to Code of Conduct and related policies.
To implement our strategy, we must ensure that we have committed people, a strong leadership bench and the indispensable competencies in place to implement our strategy. We need to invest in a strong culture and commitment to people to retain our talents in a highly competitive employee market.
- Continued emphasis on talent and succession development to ensure we have a strong platform for the future, through growing leadership and talents from within the organization.
- Focus on performance management, employee engagement, learning and development, and building a strong employer brand which includes a market competitive employee brand promise.
- Continued development of safety culture by whole organization. We continuously develop our management practices to ensure compliance with regulatory requirements and high ethical standards. We have a global Ethics & Compliance program in place to monitor and mitigate any observed risks or violations.
- Continued communication and training for Code of Conduct and channels for feedback of violations.