Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Goods and Services
• Sustainable solutions for minerals and metals processing
• Environmental solutions including gas cleaning, sulfuric acid, alternative and renewable energy
• Energy efficiency
• Sustainable development

Environmental Achievements

• Environmental Goods and Services accounted for approximately 89% of our 2012 order intake (by OECD criteria)
• New breakthroughs in renewable energy as well as industrial water and environmental solutions
• World’s largest and most advanced sewage sludge thermal treatment plant for the City of Zürich, Switzerland
• Sustainable biomass power plant for Eren Holding, Turkey
• Outotec® EOS - Emission Optimized Sintering process for iron ore sintering reduces off-gas volume by 50–60%
• Patented clay calcination process significantly reduces carbon dioxide compared to traditional clinker production

Social Achievements

• High participation rate of 34% in Outotec’s Employee Share Savings Plan
• Seminar in Indonesia on sustainability in mining and metals processing industries
• Outotec’s expert Dr. Markus Reuter was appointed as Visiting Professor of Central South University

Governance Achievements

• Establishment of a Nomination Board to prepare proposals for the election and remuneration of the members of the Board of Directors
• Share-based incentive program for key personnel
• Employee share savings plan

Climate Goals & Targets

Environmental Challenges

• Sluggish world economy
• Uncertainty in the market may delay customers’ investment decisions
• Local legislation, tighter environmental permitting and the complexity of financing packages slowed sales negotiations
• Low energy prices and uncertainties in political regulation impacted investment decisions in alternative energy solutions
• Increased risk provisions in two customer projects
• Less license fee income than in 2011
• Higher than planned project costs
• Increased risk provisions in two customer projects
• Fewer project completions compared to the comparison period
• Risks related to the global operating environment (political, economic, and social conditions)
• Potential economic sanctions or trade restrictions in politically unstable countries
• Risks related to project delivery, quality, functionality, or costs
• Risks in operation and maintenance service contracts
• Deviations in project time schedules
• Fluctuations in financial results due to sales mix, foreign exchange rates, new orders, license fee income, and project completions
• Different interpretations of international and local tax rules and regulations
• Goodwill impairment from acquisitions if synergy benefits do not materialize
• Customer and subcontractor financial difficulties
• Currency fluctuations
• Lack of local regulations slowing down investments in alternative energy solutions in many countries

Mitigation Strategies

• Close management of projects and supply chain
• Contract management, advance and milestone payments, gradual booking of orders
• Quarterly evaluation of unfinished projects and updating provisions
• Percentage of completion method for project revenue recognition
• Hedging of cash-flow-related risks
• Natural hedging
• Forward agreements for open foreign exchange exposures
• Acquisitions (12 companies acquired since 2010, 4 in 2012)
• Focus on brownfield and mid-tier projects as well as services
• Life cycle solutions to provide best return on customer investment

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Third-party Assurance: Ecobio Ltd

Sustainable Products & Innovation

• Ausmelt Top Submerged Lance (TSL) technology
• Outotec® HIGmill
• Outotec TankCell® e500
• Outotec® Larox PF 180
• Outotec® EOS - Emission Optimized Sintering process
• Automated pallet car changer
• Patented clay calcination process

Awards & Recognition

• Readers' Choice in the competition evaluating the corporate responsibility reporting of the Finnish companies
• 12th in the Corporate Knights’ Global 100 list

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainable offering for customers
• Responsible business practices
• Sustainable supply chain
• Development of our people
• Equal opportunities and diversity
• Stakeholder dialogue
• Community involvement
• Minimizing our own environmental impact

Environmental Achievements

• Achieved 90% Environmental Goods and Services (EGS) in order intake.
• Achieved a 27% reduction in CO2 emissions through the use of Outotec’s metals-related technologies compared to industry averages.
• Piloted first electrochemical water treatment and recycling solution.
• Implemented ISO 50001 energy management systems in four German locations.
• Achieved a 22% decrease in CO2 emissions from flights per EUR 1 million sales compared to 2015.

Social Achievements

• Improved lost-time injury rate (LTIR) to 1.8 from 2.8 in 2015.
• Launched a new lost-time incident management system.
• Completed Code of Conduct training for 1,223 employees (30%) and anti-corruption training for 131 employees.
• All major suppliers committed to Outotec’s Supplier Policy.
• Launched a new internal feedback portal.

Governance Achievements

• Reviewed and revised Outotec’s Code of Conduct.
• Defined new principles on diversity for the Board of Directors.
• Conducted a company-wide sales process audit and specific audits in China and Brazil.

Climate Goals & Targets

Environmental Challenges

• Subdued level of investment in the industry coupled with increased competition.
• Lowered investment levels impacting profitability.
• Weakened financial performance in 2016.
• Decline in employee engagement index to 42%.

Mitigation Strategies

• Implemented a EUR 70 million cost structure program, resulting in a reduction of 650 jobs.
• Continued cost-saving actions to improve profitability.
• Focused on improving profitability and clarifying modes of operation.
• Implemented 'Outotec '16' events to deploy the changed operating model and clarify ways of working.
• Launched a global leadership program and local leadership programs.

Supply Chain Management

Supplier Audits: Over 20 major suppliers audited in 2016.

Responsible Procurement

• Supply Policy
• Supplier Policy
• Supplier assessment and approval processes
• Supplier development actions based on audit findings.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI G4 (Core level)

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Ecobio Ltd

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Outotec's technologies and operations contribute to these goals through safety, resource efficiency, emission reduction, water management, renewable energy, responsible business practices, human rights, and stakeholder engagement.

Sustainable Products & Innovation

• Modular solvent extraction and flotation plants
• Outotec ® EWT-40 Electrochemical Water Treatment process
• Mine backfill system
• Waste-to-energy plants
• ASH DEC technology for nutrient recycling

Awards & Recognition

• Ranked 3rd most sustainable company on the Global 100 index of Corporate Knights.
• Health, Safety and Environment Award for Cajamarquilla Project in Peru.
• Customer awards from Hydro Alunorte and Ma’aden Phosphate Company.

Environmental Metrics

ESG Focus Areas

• Sustainable technologies and innovations
• Engaged experts
• Responsible supply chain
• Health and safety
• Financial performance
• Ethics, compliance and governance

Environmental Achievements

• 6.2 million tonnes CO2-e emissions avoided in total
• 90% of order intake was Environmental Goods and Services
• 51% of electricity consumption and 21% of total energy consumption from renewable hydropower

Social Achievements

• Employee engagement index improved to 61%
• 94% of employees completed Code of Conduct training
• Women’s mentoring program introduced

Governance Achievements

• Company values co-created with employees
• EcoVadis Gold certification achieved
• Six compliance investigations related to corruption were conducted and closed with appropriate actions

Climate Goals & Targets

Environmental Challenges

• Market uncertainty and reduced metal prices impacting large-scale investments
• Need to improve cost efficiency in supply chain without compromising quality, safety, and sustainability
• Achieving 70% employee engagement index by 2020

Mitigation Strategies

• Focus on small and medium-sized investments
• Standardization, harmonization, and fewer suppliers in supply chain
• Several development initiatives to simplify organization, processes, and ways of working

Supply Chain Management

Supplier Audits: 15% of key suppliers audited in 2018

Responsible Procurement

• Supplier Policy reflecting principles of the company’s Code of Conduct
• Supplier Assessment and Approval Process for new suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Tightening environmental regulations
• Customer operations closure due to non-compliance

Opportunities

• Increased demand for sustainable solutions due to stricter regulations
• Growth in circular economy solutions
• Opportunities in battery metals processing and recycling

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001 (Finland and Germany), EcoVadis Gold Certificate

Third-party Assurance: Ecobio Oy

UN Sustainable Development Goals

• SDG 3, 6, 7, 8, 9, 11, 12, 13, 16, 17

Outotec's technologies and services contribute to these goals through improved resource efficiency, reduced emissions, responsible supply chain management, and ethical business practices.

Sustainable Products & Innovation

• Outotec TankCell® e630
• Thermal leaching process for lithium hydroxide
• Hybrid filter plates
• Modular sulfuric acid plant

Awards & Recognition

• Global 100 Index (ranked 12th)