Our Governance

Governance Structure and Body
GRI 102-18

As early adopters of sustainable innovation practices, we have always held the view that our solutions should minimize the environmental footprints of both our customers’ businesses and our own operations. This philosophy guides our decision-making as it pertains to being an optimal global citizen and to delivering sustained shareholder value.

Oerlikon is supportive of worldwide government initiatives advocating climate protection. Stricter standards of air and water quality have an impact on our business and that of our customers. At the same time, we welcome the opportunity to employ those regulatory restrictions as parameters for the ongoing redefinition of sustainable innovation, which is at the heart of Oerlikon’s work. We likewise view corporate governance guidelines (such as the Swiss Code of Best Practice for Corporate Governance issued by economiesuisse) as fully aligned with our own principles. The company’s Articles of Association can be considered as Oerlikon’s “constitution”, outlining the rules and regulations that stipulate the company’s affairs; we have amplified these with the Oerlikon Code of Conduct, which clearly defines the ethical and legal framework of all our business activities.

Management Approach
GRI 103-1,2,3

We are meticulous in our approach to governance. Whether we are monitoring and quantifying compliance, managing risk or inviting and engaging in public discourse, our goal is to foster a company and a credo in support of the principle that innovation goes hand in hand with maintaining customers’ and society’s confidence and trust.

Under our CEO’s active direction and supported by our Board of Directors and its committees responsible for performance and compliance review, Oerlikon holds itself to the highest standards of economic, environmental and societal performance, as well as compliance with laws, regulations, and corporate policies that govern our operations and practices worldwide.

To underscore our sustainability commitment, Georg Stausberg, CEO of the Polymer Processing Solutions Division and a member of the EC, was appointed Chief Sustainability Officer (CSO), effective January 1, 2021.

Our CSO works with the other members of the EC to provide leadership and direction on the sustainability strategy. The CSO chairs a Sustainability Management Team (SMT), consisting of members who represent key sustainability areas – operational sustainability and environment (environment), Health & Safety (social), legal (governance and compliance), HR (social), communications and investor relations.

IDENTIFYING AND MANAGING ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
GRI 102-29

Benchmarking is essential for identifying and addressing material challenges. In keeping with the principle that what can be measured can be improved, we have undertaken extensive research with regard to material challenges.

In 2020, the materiality analysis was performed and encompassed soliciting input from internal experts and external stakeholders, conducting a benchmarking analysis and assessing Oerlikon’s sustainability actions and initiatives in its Annual Reports relative to more than 120 sustainability reports.

This depth of research has guided us to a consensus view of the topics, risks and trends that are most relevant to Oerlikon. These fall into two categories: those that could or already do have an impact on the company, and those on which the company has or could have a meaningful impact. We have captured an overview of these material challenges in a materiality matrix, which can be found here.

Based on the materiality assessment, we have defined eight material challenges as focused areas see here. Out of the eight material topics, six of them are already captured in our 2030 sustainability targets. On the topic of responsible sourcing and human rights, we have started our collaboration with EcoVadis and are working toward defining a reference roadmap by the end of 2022. For community engagement, we intend to define in 2022 a meaningful and measurable target.

We have also identified eight UN SDGs, toward which Oerlikon can make the most meaningful contributions and support countries in achieving these sustainability goals. To enable comparable and transparent reporting, we have chosen to report according to the internationally recognized GRI Standards.

LABOR MANAGEMENT RELATIONS FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
GRI 103-1,2,3; GRI 402-1, GRI 102-41; GRI 407-1

Oerlikon has operations in 38 countries and respects the legal rights of its employees to form, join or to refrain from joining worker organizations, including labor organizations or trade unions. Oerlikon complies with applicable local laws worldwide regarding employee and third-party involvement, and will not discriminate based on an employee’s decision to join or not join a labor organization.

Oerlikon respects the rights of employees to organize and makes managers at all levels aware of those rights. The company’s long-standing belief is that the interests of Oerlikon and its employees are best served through a favorable, collaborative work environment with direct communication between employees and management. Oerlikon endeavors to establish these kinds of favorable employment conditions, to promote positive relationships between employees and managers, to facilitate employee communications, and to support employee development.

Oerlikon also respects its employees’ rights to take part in collective bargaining. We abide by legally binding collective agreements. We also take care that employee representatives do not suffer discrimination and that they have open access to members in the workplace.

An estimated 45% of our employees were covered by collective bargaining agreements (CBAs) in 2021 (2020: 43%¹).

Pertaining to minimum notice periods regarding operational changes, we are not providing more detailed information as each local agreement is subjected to local laws and regulations. Overall, we satisfy the minimum legal requirements in each respective country, and in some countries, we even exceed the minimum requirements set by local laws.