Sustainability Program

The underlying rationale behind all our sustainability activities is to create value for our main stakeholders: customers, shareholders, employees, suppliers and the community. The purpose is to become a more valuable partner to our customers and all our stakeholders. At FLSmidth, we aim to align sustainability with business operations as part of our global business strategy. Having signed the UN Global Compact in November 2008, FLSmidth committed itself to supporting the United Nations' ten principles regarding human rights, labour, environment and anti-corruption, as well as reporting on progress made.

Sustainability

Health and safety

FLSmidth considers Health & Safety as a key element for sustainable business and closely integrated with engineering, quality and production. Improved Health & Safety awareness and culture result in better operational excellence and our long term aim is zero injuries.

Health and Safety at FLSmidth

Building a culture of safety

A safe working environment is not only fundamental to our long-term success, it is also tied directly to the quality of our products, services and processes. At FLSmidth, we work constantly to make safety top of mind for employees, also when undertaking daily routines and processes many take for granted in their everyday work.

Recognising FLSmidth's global footprint, communication across the Group, to all locations, remains an important part of our activities. Our HSE policy sets the direction, declaring a long-term target of zero injuries and zero harm. Important tools within our global roll-out of best practices in site operations include our 10 safety rules and employee safety handbook.

2015 has seen an improvement in safety numbers highlighted by the lost-time injury frequency rate dropping to 1.8 and no fatalities. Uffe Halldorsson, Vice President, Health, Safety and Travel Security, puts this down to safety becoming more deeply ingrained in the organisation. Managers and employees make safety a priority, talking more openly about safety issues and sharing knowledge. Uffe Halldorsson comments: "By engaging the whole organisation, we have reduced many minor accidents in safety, while also minimising severe injuries through training, safe work procedures and hazard observations. We have seen improvements in all areas, but reducing incidents, such as slips, trips and falls; executing safe operations at customer sites; and learnings from reporting of near misses and hazards are examples of concrete results."

Case: New reporting system

A major initiative launched in 2015 was a new system for reporting safety incidents and safety KPIs. The system encompasses a dedicated IT system and set of procedures designed to achieve a structured, organised way of handling safety data across the entire FLSmidth organisation. It is designed to reflect the organisational changes implemented in the FLSmidth Group in the beginning of 2015. Uffe Halldorsson explains that a key benefit of the system is its ability to provide managers with monthly reports and online access to information about safety incidents at FLSmidth. "Managers can also determine the story behind a specific incident, to understand what they need to do to prevent a similar incident in the future," he says.

Case: Leading the way

Business leaders play an important role in establishing effective safety standards. At FLSmidth's facilities in Australia, management conducted a series of safety behavioural tours in an effort to influence and work with employees about safety issues. Mark Clifford, Country Head of FLSmidth in Australia explains that it is about opening up transparent dialogue throughout the organisation in order to develop a common understanding of safety responsibilities:

"It has been an effective way for managers to interact with employees and influence positive safety behaviours in our normal work routines. We want all of our local managers to engage with employees to identify potential hazards and determine what we can do to manage them most effectively."

"The success of this concept in Australia has led to a programme being adopted throughout the company. The 'walk and talk' concept helps FLSmidth managers to engage with employees about safety and provide visible safety leadership."

Case: House in order

Setting effective safety standards involves establishing a clean, tidy working environment. At FLSmidth's Automated Analysis Technology facility in Brno, Czech Republic, safety is at the top of the agenda. And although safety awareness efforts with staff are important, rapid progress can be made through straightforward means. Ian Campbell, CEO of FLSmidth Automated Analysis Technology, explains:

"We wanted to improve safety, and we realised this would mean changing the way we work. It started with the facilities, where we have cleaned up the production areas, making it a tidier, safer place to work, and turned it into a more professional, modern production facility. This quite simple approach has been a big part of us setting new standards for safety procedures."

Case: Outstanding safety record in Chile

FLSmidth won four awards from the Chilean National Safety Council for outstanding safety achievements. The most spectacular award recognised 15 years without any lost-time incidents at Chile's Puerto Punta Chungo copper concentrator plant and port. FLSmidth has a maintenance contract at the facility with its owner, Minera Los Pelambres.

Other awards recognised the significant reduction of incidents in another contract and other safety achievements, including 'Risk Prevention Efforts' and 'Risk Prevention Excellence'. The awards were celebrated at the Council's 53rd Annual National Safety Contest.

"We express our most heartfelt congratulations for the success reached by the organisation in the implementation of its regular programs and continued actions to prevent risk of accidents," said Mr. Guillermo Gacitúa Sepúlveda, President of the Chilean National Safety Council.

Mr. Luis Bravo, Health & Safety Manager at FLSmidth Chile acknowledged the hard work that had gone into these achievements: "15 years without any lost-time incidents is only achieved by a structured, meticulous
and dedicated approach to all safety issues. In the mining industry, safety standards are higher than in other industries in Chile. Safety is one of the key issues for our customers, so when we create a safe working environment for our employees, we actually also gain a competitive edge. This award is gained through the continuous dedication of all employees to respect and protect health and safety issues."

Case: A safe journey is a productive journey

As a global operation, travel is an inherent part of FLSmidth's business. Every year, our staff travel many thousands of hours to many countries around the world. The safety and security of our staff during their travels cannot be underestimated. This is why greater efforts are being made to increase awareness of relevant issues, guidelines and procedures through dedicated training.

Mette Bonde, Group Travel Security Manager explains the importance of travel security not only to employees' well-being, but also to the business: "Travel is a natural part of executing projects. The more we attempt to mitigate risks associated with travel, the safer we can keep our staff at all times. As an organisation, we are focused on well-executed projects and minimising interruptions caused by related factors. Travel is one of those factors. Ensuring our staff reach their destinations safely and securely, minimising unexpected incidents, also contributes to the productivity of a project."

During 2015, Group Travel Security launched several travel security training initiatives. This included publishing a pocket guide, 10 Travel Security Tips, and an advanced e-learning programme. The training aims to educate all staff in how to safeguard themselves and provide better understanding of the countries they travel in. It takes staff through a number of different scenarios to help them learn how to deal with possible situations.

"It's all part of being well-prepared," says Mette Bonde, "The better prepared you are, the safer you will be."