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From Words Into Actions... Into Words From 0014EN. Miltton/Libris, Helsinki, Finland. March 2008. OUTOKUMPU AND THE ENVIRONMENT 2007 FROM WORDS INTO ACTIONS... Outokumpu is a global leader in stainless steel. Our vision is to be the undisputed number one in stainless, with success based on operational excellence. Customers in a wide range of industries use our stainless steel and services worldwide. Being fully recyclable, maintenance- free, as well as very strong and durable material, stainless steel is one of the key building blocks for sustainable future. What makes Outokumpu special is total customer focus – all the way, from R&D to delivery. Outokumpu and You have the idea. We offer the world’s best stainless steel, technical know-how and support. We activate your ideas. www.outokumpu.com. the environment 2007 ...FROM IDEAS TO REALIZATION Contact details The theme that ran through our report last year was listening 1 Outokumpu and responsibility E-mails are in the format to our key stakeholders. This year, we’ve gone a step further: 2 CEO’s review fi [email protected] the ideas that emerged from our interaction have led us to take 4 How we understand our responsibility measures. We will now focus on putting ideas into practice. 5 Setting our sights on the number-one Environmental issues Authors of report Photos in this report: The cover of the report shows fi sh being stocked in the Tor- Tomi Parkkonen (cover and p. 3, 15, 17, 21, 43) position in stainless steel Jorma Kemppainen, Outokumpu Oyj, Corporate nionjoki river. We chose to commission fi sh stocking instead Communications Shutterstock (inner front cover) 6 Responsibility and management systems Senior Vice President of paying statutory fi sh management fees. And on this page, – Environment, health and safety Liisa Jalanko, Suvi Uotinen, Göran Wiklund (p. 7) 10 Dialogue with stakeholders you can see the fruits of the group work on corporate respon- Tel. +358 9 421 5504 Markku Rantala Pauli Järvinen / Pohjolan Sanomat (p. 27) sibility we organized at the Olari school in Espoo, Finland. Green Cargo (p. 31) ECONOMIC RESPONSIBILITY The ninth-graders thought about their responsibilities for the Human resources issues Your opinion matters in developing Next generation vehicle research project (p. 35), environment, their schoolmates and teachers, and a positive Contents 14 Targets and achievements Carita Himberg, Vice President reporting systems. Katri Pyynönen / Potkastudios (p. 49) school atmosphere. 16 Economic impact on stakeholders – Human Resources Development Please fi nd our feedback form on our Outokumpu Tel. + 358 9 421 2643 website. ENVIRONMENTAL RESPONSIBILITY 20 Key environmental events of the year Economic issues Outokumpu Oyj 22 Targets and achievements Mika Pyyskänen, Senior Vice President Corporate Management 24 Recycled steel is our main raw material – Corporate Controller Riihitontuntie 7 B, PO BOX 140, 02201 25 Energy efficiency as a target Tel. +358 9 421 5512 ESPOO, Finland 28 Climate change raises challenges Tel. +358 9 4211, fax +358 9 421 2429 E-mail: [email protected] 32 Water cools, rinses and cleans Corporate Responsibility issues Liisa Jalanko, Vice President www.outokumpu.com 33 Biodiversity – Corporate Responsibility 33 Emission control by best available Tel. +358 9 421 3265 techniques 39 Stainless steel is recyclable and sustainable 40 Environmental impacts of transportation are accounted 40 Investments in nature’s favor SOCIAL RESPONSIBILITY 42 Personnel 44 We listen to personnel 46 Development opportunities and training THE WORLD’S STEEL 50 Diversity and equal rights > > 50 Supplier responsibility as a target Most of the steel in the world is carbon material in combination with ore when 50 Occupational health and safety steel. More than 500 million tons of re- manufacturing stainless steel saves natural 52 Co-operation with local communities cycled steel is used in annual global steel resources considerably and also reduces the and educational establishments production, which now totals some 1 343 amount of energy used, since producing 52 Close involvement with research million tons. Annual production of stain- metal from ore is a very energy-intensive 53 Product safety and product liability less steel totals about 27.5 million tons, process. Stainless steel is especially easy to and consumption is growing at an annual recycle since it is not coated with paint, rate of fi ve to six percent. Stainless steel plastics, zinc or other coatings, which cre- 54 Independent assurance report now coming onto the market contains an ate harmful emissions when steel scrap is 55 Comparison with Global Reporting average of 60 percent recycled steel (both re-melted. Initiative guidelines carbon and stainless steels). Using recycled 56 Glossary Contact details Outokumpu and responsibility > a reduction in the number of accidents GROUP KEY FIGURES (Million €) 2007 2006 2005 Net sales 6 913 6 154 5 016 > eyes on the sustainability of the supply chain Operating profi t 589 824 57 Return on capital employed, % 13.9 20.7 1.3 Earnings per share (€) 3.63 3.34 -0.14 > development of internal data collection processes Dividend per share (€) 1.20 1) 1.10 0.45 Investments in the environ- ment, health and safety 12 8 12 Patent applications 3 3 29 > performance and development dialogues for everyone R&D 18 17 22 R&D (%) of net sales 0.3 0.3 0.4 Personnel on Dec. 31 8 108 8 159 8 963 Personnel expenditure Objective of the report as the report for 2006. Th e economic and so- (salaries) 355 361 448 Our objective is for our stakeholders to gain cial data cover the whole business area, but Debt-to-equity ratio, % 23.6 42.3 74.5 a better understanding of our business op- environmental data only covers production Income taxes and social erations and their implications on society. plants; they have impact on the environment. security payments 281 323 124 We strive to inform openly about our activ- Th e fi gures for Outokumpu Technology (now- Accidents rate (accidents/ million hours worked) 11 17 18 ities and their impacts on the natural envi- adays Outotec Oyj), which became a listed Carbon dioxide ronment that surrounds our plants and the company in October 2006, were not includ- emissions, million tons 0.93 1.05 1.02 well-being of people. In the area of corporate ed in the fi gures for 2005 and 2006 in order responsibility, we explain about the objec- to facilitate comparability; Outokumpu no 1) The Board of Directors’ proposal to the Annual General Meeting. tives we have set for ourselves and how we longer has ownership for the company. Outo- have achieved them. We report on matters kumpu Copper Tube and Brass, which we have that we consider important and essential in announced we are divesting, is not included our business operations such as our product in the report. It has no signifi cant eff ect on stainless steel – the material of sustainable overall environmental impacts or emissions. development – and its life cycle. In 2007, its total net sales accounted for 599 Outokumpu has traditionally maintained million euros and it had 882 employees. a strong culture of responsible action. We also strive to constantly develop our operations Compatibility of reports and statistics member of society. A brief environmental re- and our way of working. We believe that Th is report mainly surveys business opera- view was published in 2003. Socio-economic thorough reporting on matters of corporate tions in 2007 from the perspective of the matters were gradually included. Th e report responsibility furthers this aim. Besides the full scope of corporate responsibility. Th e for the following year still mainly focused on printed Corporate Responsibility Report, we report is based on the internationally recog- environmental aspects but also dealt with co- deal with matters pertaining to corporate re- nized and widely applied Global Reporting operation with stakeholders and society, and sponsibility in our Annual Report and on our Initiative guidelines (GRI) 2006 that direct compared our approach to reporting with website at www.outokumpu.com > About us corporate responsibility reporting, and it fol- the GRI guidelines. Th e statistical values in > Corporate responsibility, where the report lows the recommended format. We follow our reports for 2005, 2006 and 2007 were is available in electronic format. the tripartite division of the guidelines into compatible. Huge changes took place in our Th e report is intended for our person- economic, environmental and social respon- Group structure during those years but our nel, shareholders and customers as well as sibility and we deal with their impacts on our reporting was primarily concerned with our all parties interested in our company and various stakeholder groups. A table showing current main business, stainless steel. Conse- its activities. how this report corresponds with GRI guide- quently, the fi gures for businesses divested in lines is on page 55. 2005–2006 were not included. Our report for Scope of the report Outokumpu issued its fi rst actual environ- 2007 is our fi rst externally verifi ed corporate Th is report covers Outokumpu’s entire main mental report in 1975. Th e 2000 environmental responsibility report. Th e data based on the business area, stainless steel, in the same way report included a review of Outokumpu as a fi nancial statements has been audited. Outokumpu and the environment 2007 1 CEO’s review Only deeds matter he theme that ran through our 2006 have started to bear fruit. Th e good results now participating for the fi rst time. Th ere is report was listening to personnel, cus- we’ve achieved – such as savings of 70 million still much to be done in many areas of both tomers and other key stakeholders. euros by the end of 2007 – encouraged us reporting and operations.
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