GRI Index Table compliance table to GRI G4 guidelines

Transcription

1 GRI Index Table compliance table to GRI G4 guidelines With reference to the GRI G4 Application Level Criteria, the 2014 Annual Report is self declared as being In Accordance with the Core application level, which is confirmed by our external auditors PwC. The 2014 SKF Annual Report financial, environmental and social performance covers the reporting period January to December Since 2000, SKF has adopted the Global Reporting Initiative s reporting guidelines in its sustainability reporting. This Report is based on the GRI G4 Guidelines and includes reports on General Standard Disclosures, and specific standard disclosures where relevant. As part of the report content definition and the reflection of its materiality, all aspects have been carefully evaluated from internal and external stakeholder perspectives. Those aspects that are considered of significant materiality in relation to SKF's financial, environmental and social impact are included in the Annual Report, and thus reported in the specific standard disclosures below. If SKF cannot fully report the requested indicator due to competitive reasons or lack of reliable data, this is made clear in the table. The principle of ensuring qualitative reporting in terms of accuracy, comparability, clarity, timeliness, balance, and reliability, is highly valued by SKF. To live up to this principle, SKF has been submitting its reports for third party verification for more than 10 years. SKF Annual Report 2014 was subject to a reasonable assurance on information in the administration report and limited assurance in the environmental and social statements, in accordance with FAR (the institute for the accounting profession in Sweden) recommendation RevR 6 Assurance of sustainability reports. The Assurance Report on the review of the Annual Report is on page in the SKF Annual Report. Annual Report and Topics Related Most indicators are referring to SKF Annual Report 2014, the main document. The Corporate Governance Report is included in the main document on page Some indicators are referring to Topics Related to Annual Report, these are be marked in italic font and link indicated» in the table below. The following Topics Related to the Annual Report 2014 are found at skf.com/investors: Articles of Association SKF Code of Conduct SKF Environmental, Health and Safety (EHS) Policy Carbon dioxide emission data* Environmental performance data* Manufacturing and other units Jan 2015 The compliance table to GRI G4 Guidelines (GRI G4 Index Table)* SKF Care Policies and practices* SKF Risk matrix* * Documents reviewed by SKF's external auditors. 1

2 SKF Material Issues GRI aspects Aspect boundaries Customer satisfaction - Customer satisfaction is material for all elements of the value chain. SKF reports its business model, how the Group delivers value to customers on a general aggregated level and in detail by Business Area and Industry group. Business Conduct Anti-corruption SKF addresses anti-corruption across the full value chain. Clearly the strongest potential to control is with SKF operations and parties with whom SKF has a direct business relationship. However, SKF works to find practical ways to ensure that the issue is addressed further upstream and downstream. Anti-competitive behaviour Compliance Grievance mechanism for impact on society This is material for SKF s sales activities, both direct sales channels and via distributors as well as SKF purchasing activities. This is material within SKF legal boundaries. SKF grievance mechanism is first and foremost an internal mechanism. There are however channels for external stakeholders to raise concerns and resolve grievances. Financial performance Economic Performance SKF financial and economic performance is reflecting the Group and its subsidiaries performance. Health and safety Occupational Health and safety The scope of SKF s occupational health and safety policy and management system includes all SKF facilities and activities. Via the supplier code of conduct SKF also seeks to ensure effective management of this aspect by suppliers and sub-contractors. Innovation - Innovation applies across the full value chain. The main focus in SKF s reporting is product and process research and development. SKF reports R&D budget, registered innovations and patents approved. Positive and engaging workplace Employment Training and education SKF Group and subsidiaries. Diversity and equal opportunities Responsible Sourcing Supplier assessment for impact on environment Supplier human rights assessment Supplier assessment for impact on society SKF Code of conduct for suppliers and sub-contractors applies to the full upstream value chain. However main focus is on suppliers with direct business relation with SKF as this is where the Group has the strongest possibility to influence. Supplier assessment for labour practices 2

3 Energy and climate Systematic environmental protection Energy Emissions Transports Effluents and Waste Water Compliance Environmental Grievance mechanism SKF climate strategy addresses energy and emissions over the full value chain. Targets have been established on suppliers, logistics operations, SKF operations and customer solutions the areas where SKF can contribute significantly. Environmental protection is most material in SKF own operations and for the products and services provided to the market, where the company has direct legal responsibility and influence. The Group also seeks to influence these aspects upstream and downstream in various ways. For example - by the deployment of ISO requirements for suppliers, SKF BeyondZero portfolio with solutions that realize environmental improvement in the use phase for SKF s customers and end users. Local Community Relations Local Communities SKF reports activities and plans related to communities which are close to SKF operations globally. SKF has a global geographical presence, the main focus for this aspect is where SKF has some operation of significance in terms of employees, customers and/or turnover. Equality, human and labour rights Equal remuneration for women and men Labour/Management relation Labor practice grievance mechanism Non-discrimination SKF Group and subsidiaries. SKF Group and subsidiaries. SKF grievance mechanism is first and foremost an internal mechanism. There are however channels for external stakeholders to raise concerns and resolve grievances. Freedom of association and collective bargaining Child Labour Forced or compulsory labor Assessment Human rights grievance mechanism This is material for SKF Group and subsidiaries as well as suppliers since the SKF Code of conduct for suppliers and sub-contractors applies to the full upstream value chain. The main focus is on suppliers with direct business relation with SKF as this is where the Group have the strongest possibility to influence. SKF grievance mechanism is first and foremost an internal mechanism. There are however channels for external stakeholders to raise concerns and resolve grievances, such as supplier audits and employee representatives in the SKF Board. 3

4 General Standard Disclosures General Standard Disclosures Aspect, Indicators Page / Comments G4-1 Statement from the most senior decision-maker - CEO. 2 SKF the knowledge engineering company 4-7 President s Letter, Administration Report 2014 G4-2 Description of key impacts, risks, and opportunities Supply chain 70-71, 83, 85 Environmental 89, 94 Social 113 Overall 192 Internal control Risk matrix G4-3 Name of the organization. 213 Back cover AB SKF G4-4 Primary brands, products, and services. 1, 25, 65, G4-5 Location of the organization s headquarters SKF Group Headquarters SE , Göteborg, Sweden G4-6 Countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. SKF has major operations globally with importance to sustainability, examples of this is given on pages Manufacturing and operational units G4-7 Nature of ownership and legal form Articles of Association G4-8 Markets served SKF s Business G4-9 Scale of the organization. Key Data inside cover "Page 0" SKF manufacuring and other units 2015 G4-10 Employee data 93, Full time and part time employees 158, Employees by gender and region. Due to different HR systems across the Group, employees by employment contract types cannot be reported. SKF does not have a substantial proportion recognized as self- employed, nor are there any significant variations in number of employees. G4-11 Percentage of total employees covered by collective bargaining agreements 179 SKF reports employees covered by independent trade union agreements (84%). Employees that are not covered by trade union agreements may however engage in collective bargaining, though this figure is not reported. G4-12 Describe the organization s supply chain

5 General Standard Disclosures Aspect, Indicators Page / Comments G4-13 Significant changes during the reporting period , G4-14 Report whether and how the precautionary approach or principle is addressed by the organization. G4-15 Externally developed economic, environmental and social charters, principles endorsed G4-16 Memberships of associations (such as industry associations) and national or international advocacy organizations. G4-17 Entities included in the organization s consolidated financial statements or equivalent documents. Any entity included in the organization s consolidated financial statements or equivalent documents is not covered by the report. G4-18 Process for defining the report content and the Aspect Boundaries. Explain how the organization has implemented the Reporting Principles for Defining Report Content. G4-19 Material Aspects identified in the process for defining report content. G4-20 For each material Aspect, report the Aspect Boundary within the organization. G4-21 For each material Aspect, report the Aspect Boundary outside the organization 15, 212 Regular assessments of environmental risks and programmes for preventive action are a feature of the Group s environmental management system , 15 2, 36-63, 151 (Note 12) Newly acquired entities are not included in accident reporting and environmental reporting. Such commences once sites are included in environment, health and safety management system. GRI G4 Table (This document) 13, 181 GRI G4 Table (This document) 13 GRI G4 Table (This document) 13 GRI G4 Table (This document) G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. G4-24 Provide a list of stakeholder groups engaged by the organization. In order to improve data quality and efficiency, starting in 2014, accident data and working hours data have been gathered using SKF main reporting system minor changes in metrics have resulted from this and the 2014 data may therefore not be fully comparable to previous years. The migration of the data has been reviewed by SKF external auditors

6 General Standard Disclosures Aspect, Indicators G4-25 Report the basis for identification and selection of stakeholders with whom to engage. G4-26 Report the organization s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. G4-28 Reporting period (such as fiscal or calendar year) for information provided. Page / Comments G4-29 Date of most recent previous report (if any). 212, Previous report was published March 2014 G4-30 Reporting cycle (such as annual, biennial). 10 Annually G4-31 Provide the contact point for questions regarding the report or its contents. G4-32 In accordance option chosen. GRI Content Index for chosen Reference to the External Assurance Report G4-33 Policy and current practice with regard to seeking external assurance for the report. Relationship between the organization and the assurance providers. G4-34 Governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. G4-35 Process for delegating authority for economic, environmental and social topics G4-36 Executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body External assurance Auditor s report Corporate Governance Report General information about how the company is managed 197, Group Management General Counsel and Senior Vice President, Group Legal and Sustainability 6

7 General Standard Disclosures Aspect, Indicators G4-37 Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body. G4-38 Composition of the highest governance body and its committees by: -Executive or non-executive - Independence - Tenure on the governance body - Number of each individual s other significant positions and commitments, and the nature of the commitments - Gender - Membership of under-represented social groups - Competences relating to economic, environmental and social impacts - Stakeholder representation G4-39 Is the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization s management and the reasons for this arrangement). G4-41 a. Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum: - Cross-board membership - Cross-shareholding with suppliers and other stakeholders - Existence of controlling shareholder - Related party disclosures G4-42 a. Report the highest governance body s and senior executives roles in the development, approval, and updating of the organization s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. G4-48 The highest committee or position that formally reviews and approves the organization s sustainability report and ensures that all material Aspects are covered. G4-49 a. Report the process for communicating critical concerns to the highest governance body. G4-50 a. Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them. Page / Comments Also refer to Annual General Meeting Employees representation on board (p. 187) Investor relations (p. 212) Annual report contacts (p. 212) This is a process delegated from SKF s highest governance body The SKF Board of Directors The tenure on the governance body and competencies relating to sustainability impacts are an integral part of the nomination of board members. 190 Independence requirements 190 Independence requirements and Board composition General information about how the company is managed SKF Care - Policies and practices, page 39, Organization 172 The SKF Annual Report Financial, Environmental and Social performance includes SKF s sustainability reporting and is signed by all members of the Board. 92 Code of Conduct helpline and Investigations 92 Code of Conduct helpline and Investigations 7

8 General Standard Disclosures Aspect, Indicators G4-51 Remuneration policies for the highest governance body and senior executives G4-52 Process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Other relationships which the remuneration consultants have with the organization. G4-53 Report how stakeholders views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable. G4-56 The organization s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity. Page / Comments (note 25) 190 The Remuneration Committee (sub-set of SKF Board) determines the remuneration for CEO and Group Management. Consultants are typically not involved 212, Annual General Meeting Stakeholder views on remuneration are taken into account via the Annual General Meeting (AGM) - proposals sent out beforehand. SKF Ethics and compliance programme SKF Code of Conduct 92, Ethics, Human rights and Labour standards, SKF Ethics and compliance programme 92 Ethics, Human rights and Labour standards SKF Ethics and compliance programme Specific Standard Disclosures, Categories: Economic, Environmental and Social Category: Economic Aspect, Indicators Aspect: Economic performance Disclosure in management approach 2-3, SKF the knowledge engineering company 4-7, Presidents Letter 20, Business Care 22-23, SKF s targets and strategy 83,85, Environmental Care Climate change 8

9 Category: Economic Aspect, Indicators G4-EC1 Direct economic value generated and distributed msek Economic value generated Net sales 70, Other operating income 2,720 8,298 Economic value distributed Operating costs -40,416-40,286 Employee wages and benefits -21,881-19,810 Payments to providers of capital -3,519-5,237 Payments to government -2,090-2,351 Community investments Economic value retained 5,752 4,175 G4-EC2 G4-EC3 Financial implications and other risks and opportunities for the organization's activities due to climate change Coverage of the organization s defined benefit plan obligations 42-43, 46-53, 56-57, 59-60, 70-71, SKF Risk matrix, page , provisions for post-employment benefits (Note 18) - information is disclosed according to Swedish accounting legislation G4-EC4 Financial assistance received from government Non received Category: Environmental Aspect: Energy SKF has deployed an energy management system certified according to ISO The management system follows the structure of SKF s Environment, health and safety system with the Group policy at the top, the handbook with high level Group instructions (b), then country level (c) and finally site level (d). Energy coordinators are nominated at Business Area level and at SKF sites with more than 0.2 GWh in annual energy use. SKF Care Policies and practices page, page 39, Organization 9

10 Category: Environmental G4-EN3 Energy consumption within the organization Energy and CO2 data spreadsheet, fuels used are: natural gas, fuel oil and LPG, none of the energy from fuels consumed in scope 1 are renewable. G4-EN4 Energy consumption outside of the organization SKF does not report energy for scope 3, but parts of CO 2 emissions (transportation) G4-EN5 Energy intensity Energy intensity is calculated by dividing all scope 1 and 2 energy used in GWh at SKF s sites by an internal measure of production output. As production output can be considered sensitive information, the ratio is presented in an indexed figure. The ratio is always based on the previous year as index 100. G4-EN6 Reduction of energy consumption G4-EN7 Reductions in energy requirements of products and services SKF reports in CO 2 equivalents, not energy Aspect: Water 83, 88 SKF has deployed an environmental management system certified according to ISO The Group policy is at the top, the handbook with high level Group instructions (b), then country level (c) and finally site level (d). G4-EN8 Total water withdrawal by source 88 Aspect: Emissions SKF has deployed an energy management system certified according to ISO and an environmental management system according to ISO G4-EN15 Direct greenhouse gas (GHG) emissions (scope 1) 86, 173 G4-EN16 Energy indirect greenhouse gas (GHG) emissions (scope 2) G4-EN17 Other indirect greenhouse gas (GHG) emissions (scope 3) G4-EN18 Greenhouse gas (GHG) emissions intensity SKF Care Policies and practices page, page 39, Organization 10

11 Category: Environmental G4-EN19 Reduction of greenhouse gas (GHG) emissions G4-EN20 Emissions of ozone-depleting substances (ods) 175 SKF does measure and report actual emissions of ozone-depleting substances but only the amounts used and reports ODS used in kilograms. Aspect: Effluents and waste 84, 88 SKF has deployed a management system certified according to ISO G4-EN23 Total water discharge by quality and destination G4-EN24 Total weight of waste by type and disposal method 84 SKF Care Policies and practices page, page 39, Organization SKF measures waste types and disposal methods in another way than GRI suggests, the amounts of residual material and recycling rate are disclosed on page 176 and in more detail in Environmental data spreadsheet in Topics Related to Annual Report on skf.com A significant spill is defined as an incident leading to directives from environmental authorities. No such incident occurred in Aspect: Products and Services 70-71, 87, SKF Care Policies and practices page 23, Product development and page 39 Organization G4-EN27 G4-EN28 Extent of impact mitigation of environmental impacts of products and services Percentage of products sold and their packaging materials that are reclaimed by category 71, 175 Numerous environmental impact assessments show that the most significant contribution SKF has over the life cycle is during the use phase of SKF s products and solutions. The SKF BeyondZero portfolio consists of solutions which realises significant environmental benefits during the customer use phase. SKF reports avoided emission (scope 4) in CO2e made possible by the use of SKF s solutions compared to the most common alternative on the market

12 Category: Environmental Aspect: Compliance 84 G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations 84 No significant fines. Actual fines are reported in Environmental performance data Aspect: Transport 62 SKF Care Policies and practices, page 29 Logistics and page 39, Organization SKF reports CO2 emission from transportation but not noise levels G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organization s operations, and transporting members of the workforce 62-63, 174 Aspect: Supplier Environmental Assessment SKF Care Policies and practices, page 39, Organization G4-EN32 G4-EN33 Percentage of new suppliers that were screened using environmental criteria Significant actual and potential negative environmental impacts in the supply chain and actions taken % - all suppliers must adhere to SKF s Quality standards for suppliers, including Code of Conduct which cover labour criteria, human rights criteria, environmental criteria and society criteria. It also includes SKF Zero defect concept and Health and Safety standards The number of suppliers subject to on site audit is close to 450. At 19 of these, SKF has found significant deviations during %. Aspect: Environmental Grievance Mechanisms 80 Supplier audits 84 EHS policy and management system 92 Code of Conduct helpline G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms 84 12

13 Category: Social Sub-Category Labor Practices And Decent Work Aspect: Employment 90,92 G4-LA1 Total number and rates of new employee hires and employee turnover by age group gender and region 93, 179 SKF reports voluntary retention rate by gender and region, not by age group due to differences in HR systems. Newly hired are also reported by gender. Total employee turnover cannot be reported by gender only as a total for the Group and per region. Aspect: Labor/Management Relation 90,92 G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements 92 - Notice regarding operational changes is defined case-by-case basis with the local unions, and/or reviewed at the World Works Council. Aspect: Occupational Health and Safety 91 SKF has deployed a Group wide health and safety management system certified according to OHSAS G4-LA5 G4-LA6 G4-LA8 Percentage of total workforce represented in formal joint management worker health and safety commitees Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of workrelated fatalities, by region and by gender Health and safety topics covered in formal agreements with trade unions 177 SKF Care Policies and practices, page 34, Zero Accidents and OHSAS SKF reports injury rate (first aid not included) and absenteeism from illness related to total time. Work-related fatalities are reported if they occur (zero such cases in 2014). SKF does not report accident rate per region or gender. SKF s consolidation system is currently not built to aggregate lost days SKF s global framework agreement with the World Union Council is based on the SKF Code of Conduct including health and safety Health and safety is included in both global and local formal agreements, a percentage cannot be given. 13

14 Category: Social Sub-Category Labor Practices And Decent Work Aspect: Training and education 94 G4-LA10 Programs for skills management and lifelong learning 94 G4-LA11 Percentage of employees receiving regular performance and career development 94 SKF asks all employees from their perspective if they have had a performance review. In total, 69% says they have; Men 69% Women 70%. It is however optional to provide gender, therefore male- female split is approximate. Breakdown on employee category cannot be disclosed. Aspect: Diversity and Equal Opportunities 90 SKF Code of Conduct SKF Care Policies and practices, page 32, Diversity and equality G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority indicators of diversity group membership, and other indicators of diversity , SKF reports the composition of workforce by gender and the composition of governance bodies by gender and age. SKF does not categorize employees or management by age group or minority. Aspect: Equal remuneration for Women and Men 90, 92 Follow up on structural errors with regards to remuneration is carried out periodically. The exact schedule is different from one country to another due to variations in local legislation. This follow up includes country organisations, in which SKF has major Human resource functions. SKF Code of Conduct SKF Care Policies and practices, page 32, Diversity and equality SKF s compensation principles are based on the SKF Code of Conduct and the basic idea is that the salary is individual, but if two individuals work with the same responsibilities, with the same tasks, with the same quality, the same qualifications and at the same geographical location there should be no differences in compensation. 14

15 Category: Social Sub-Category Labor Practices And Decent Work G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation A qualitative approach is explained on page 92. SKF does not have the data consolidated centrally due to differences in salary systems. SKF is working to implement systems in countries where the Group has major Human Resource functions. The plan is to able to report this no later than Aspect: Supplier Assessment for Labor Practices SKF Code of Conduct is valid for all suppliers and the general terms of G4-LA14 G4-LA15 Percentage of new suppliers that were screened using labor practices criteria Significant actual and potential negative impacts for labor practices in the supply chain and actions taken SKF Care Policies and practices, page 39, Organization % - all suppliers must adhere to SKF s Quality standards for suppliers, including Code of Conduct which cover labour criteria, human rights criteria, environmental criteria and society criteria. It also includes SKF Zero defect concept and Health and Safety standards The number of suppliers subject to on site audit is close to 450. At 19 of these, SKF has found significant deviations during %. Category: Social Sub-Category: Human Rights Aspect: Non-discrimination 92 SKF Ethics and compliance programme G4-HR3 Total number of incidents of discrimination and corrective actions taken 92 SKF has acted on case from both internal helpline and from code of conduct audits. The exact cases of the internal helpline cannot be disclosed, however will be available in 2015 when SKF ethics and compliance reporting line is implemented globally. No case of discrimination was found during code of conduct audits. Aspect: Freedom of association clearly underlines every employees rights to freedom of association and bargain collectively or individually. 15

16 Category: Social Sub-Category: Human Rights G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights 80, 92 Aspect: Child Labor G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor 80, 92, Child labour is included in both SKF internal and supplier audits. Aspect:Forced or compulsory labor G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor 0 (Inside cover), 92, Forced, bonded and compulsory labour is included in both SKF internal and supplier audits. Aspect:Assessment 80, 92, G4-HR9 Total number and percentage of operations that have been subject to human rights assessments 80, 92, %. SKF Code of Conduct audits follow the EHS audit schedule, which uses a risk based approach. Every site is subject to audit every 1-3 years depending on risk. Aspect: Supplier Human Right Assessments 80, 92, 179 G4-HR10 Percentage of new suppliers that were screened using human rights criteria % - all suppliers must adhere to SKF s Quality standards for suppliers, including Code of Conduct which cover labour criteria, human rights criteria, environmental criteria and society criteria. It also includes SKF Zero defect concept and Health and Safety standards. 16

17 Category: Social Sub-Category: Human Rights G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken The number of suppliers subject to on site audit is close to 450. At 19 of these, SKF has found significant deviations during %. Aspect: Human Rights Grievance Mechanisms 80, 92, G4-HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms Category Social Sub-Category: Society Aspect:Local communities 96 G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs SKF has 67 country organizations (with a country manager) 39 of these have reported Community Care activities for The focus is on operations that are significant, in terms on number of employees, customer or revenues. The reports handed in by the 39 SKF countries make up close to 90% of the Groups operations in terms of number of employees. Simplified impact assessments are carried out on high level with reference to SKF s Social policy, however the Group works to improve impact assessments on local level by continuous dialogues with country management. Aspect: Anti-corruption SKF Care Policies and practices, page 11, Business Ethics 17

18 Category Social Sub-Category: Society G4-SO4 Communication and training on anti-corruption policies and procedures All (100%) of SKF s employees have been communicated SKF s Anti-fraud and Anti-Corruption policy. SKF has used the e-learning The Fight Against Corruption developed by the UN. All employees who interact with external parties such as all managers, all employees in sales and purchasing are in scope to undergo anticorruption training. In total, 72% (14,669) of these employees have completed their training. Completion rate broken down by region, employee category and governance body members cannot be provided. G4-SO5 Confirmed incidents of corruption and actions taken Aspect: Anti-competitive behaviour SKF Care Policies and practices, page 11, Business Ethics G4-SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes 113 Aspect: Compliance SKF Risk matrix, page 6, Legal risks SKF Care Policies and practices, page 11, Business Ethics G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations - None has been recorded during the year Aspect: Supplier assessment for impact on society 80 G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society % - all suppliers must adhere to SKF s Quality standards for suppliers, including Code of Conduct which cover labour criteria, human rights criteria, environmental criteria and society criteria. It also includes SKF Zero defect concept and Health and Safety standards. 18

19 Category Social Sub-Category: Society G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken The number of suppliers subject to on site audit is close to 450. At 19 of these, SKF has found significant deviations during %. Aspect: Grievance mechanism 80, 92, G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms 19