Sustainability Report Continuous effort Contents 1. Message from the Chairman .............................................................................................. 4 for business progress, 2. MYTILINEOS Group ............................................................................................................... 6 3. Materiality analysis of sustainability issues ...................................................................... 8 evolution and 4. Strategy & Outlook 2017 ....................................................................................................... 10 5. Corporate Responsibility Overview 2016 .......................................................................... 12 responsible growth. 6. Stakeholder Engagement .................................................................................................... 14 6.1 Engagement process 2016 ......................................................................................... 16 6.2 Response to Stakeholders requests ......................................................................... 19 7. ENVIRONMENTAL PERFORMANCE ................................................................................... 22 7.1 Climate Change ............................................................................................................ 24 7.1.1 Emissions ......................................................................................................... 24 7.1.2 Energy ................................................................................................................ 26 7.2 Environmental management ..................................................................................... 27 7.2.1 Environmental compliance ............................................................................ 27 7.2.2 Raw & Other Materials .................................................................................... 28 7.2.3 Management of solid and liquid waste ......................................................... 30 7.2.4 Water ................................................................................................................. 34 7.2.5 Environmental restoration & biodiversity .................................................... 35 8. SOCIAL PERFORMANCE ...................................................................................................... 36 8.1 Occupational Health & Safety ..................................................................................... 36 8.2 Labour practices .......................................................................................................... 40 8.2.1 Bolstering employment .................................................................................. 40 8.2.2 Work Conditions ............................................................................................... 42 8.2.3 Management - Employee relations............................................................... 43 8.2.4 Employee Training & Development .............................................................. 43 8.2.5 Human Rights................................................................................................... 45 8.3 Local communities ...................................................................................................... 47 8.4 Strengthen Transparency ........................................................................................... 48 8.5 Market practices .......................................................................................................... 48 8.5.1 Product Quality and Safety .............................................................................. 48 8.5.2 Customer satisfaction ..................................................................................... 49 8.5.3 Responsible communication and marketing .............................................. 50 8.5.4 Supply Chain .................................................................................................... 50 9. CORPORATE GOVERNANCE ................................................................................................ 52 9.1 Governance Structures ............................................................................................... 54 9.2 CSR Governance .......................................................................................................... 56 9.3 Risk Management & Internal Control ....................................................................... 57 10. Sustainability Report Parameters ...................................................................................... 61 11. UN GLOBAL COMPACT COMMUNICATION ON PROGRESS ............................................. 62 12. Compliance table with GREEK SUSTAINABILITY CODE .................................................. 64 MYTILINEOS HOLDINGS - SUSTAINABILITY REPORT 2016 1. Message from the Chairman G4-1 that will result in business synergies in both operational and the environment, by upgrading the alumina production plant, disciplines. Moreover, we supported the initiatives of the Hellenic financial terms and will mark our transition to a new era by anticipating greater flexibility in the production process and a Network for Corporate Social Responsibility, by participating in creating substantial added value for our shareholders and our reduction in energy consumption and in carbon dioxide emissions special working groups for the promotion of the European Pact employees, but also for the Greek society itself. by 25%. 4 Youth, contributing to the dialogue and cooperation in order to The decision for our transition to this new era to be driven by our We also expanded our participation in international sustainable enhance employability and social inclusion for young people. corporate transformation is not only an obvious extension of our development indicators, by participating for the first time, on a Finally, we are particularly pleased to have successfully evolution so far but it also expresses our awareness of our role as a voluntary basis, in the Carbon Disclosure Project (CDP) global completed the first year of our partnership with the Association key economic and social contribution actor. initiative, where our performance in the management of water “TOGETHER FOR CHILDREN”, in the ambitious social programme resources received the second-best global ranking, “LEVEL B”. “I’M IN!”, designed to combat school drop-out, which we are For us, this evolution goes hand-in-hand with consistency continuing for the second year in an enhanced format. in corporate responsibility. As a large Group that follows We remain strongly focused on Corporate Governance issues, to developments closely and is continuously evolving, always at the which the Group’s corporate transformation currently in progress In 2017, we continue, more intensively and with increased leading edge of economic and social developments, we are fully also gives priority, in line with the international best practices momentum, through our new organisational structure, our or a society that is working with all its strength to build a aware of the consistency that our leading role in the Corporate and the standards of multinational companies, ensuring a development as a leading and socially responsible pillar of future that will offer positive prospects, in conditions of Social Responsibility domain requires of us. This consistency is flexible and streamlined organisational structure, the improved the Greek economy, creating high added value for all our Fprolonged crisis and uncertainty, the concept of continuous not just one of many corporate dictates, but instead represents an dissemination of the know-how currently available in Group’s Stakeholders. In entering this new, historic phase, we are Responsible Business Development becomes more necessary inherent element that is integral to who we are and how we conduct individual companies, and sustainable development. well aware of the many challenges before us. Yet we have and relevant than ever. business. The moral principles and the values that guarantee our With regard to ethical practices and transparency, we are proud demonstrated that we can rise to the challenges and overcome During a year that was once again difficult for Greece, all of us in Responsible Business Development lie at the very core of our of the 2nd revised edition of the “Code of Business Conduct” of difficulties, always keeping a strong focus on the company and MYTILINEOS Group managed to remain on a path of consistently business activity, as well as of the Group’s management model. MYTILINEOS Group. True to the principle of accountability, we on our people, in constant dialogue with our business partners strong growth and to continue to contribute to the efforts for In this context, taking steady steps and guided by our vision for developed the “Integrated Value Creation Scorecard” tool, which and with the society, so that together, all of us can evolve further. the recovery of the country’s economy. In moving forward on the future, we continued to promote this responsibility through presents the total value that we create, depending on each this path, we are fully aware of our responsibility as an active a range of diverse activities, reinforcing further the unbroken category of resources that we use in our activities, as well as In this new, challenging environment, Corporate Social corporate citizen and we are firmly committed to returning, in alliance of MYTILINEOS