Moelven defines social responsibility as the company's integration of social and environmental concerns in its day to day operations. The Moelven Group operates a wide range of undertakings in several countries and in many local communities. The Group companies are often cornerstone companies, which in addition to creating value for our owners, often create significant value for the local community – as employer, taxpayer and buyer of local goods and services. The Group therefore plays a responsible role in helping to create vigorous businesses, rural communities, towns and regions.
Moelven's core values, which are the foremost management tool to coordinate activities, also provide guidelines for how the Group shall contribute towards positive social development:
Moelven has respect for both people and the environment. We base our activities on renewable resources and have turned sustainability and the long-term view into our competitive advantage. We have a strong desire to take responsibility for our environment.
You can trust Moelven. We deliver on time and with the right quality. There is a strong focus on openness and honesty – being able to admit to weaknesses and mistakes is the basis for progress and trust.
Moelven seeks solutions. The Group has the ability and resources to be a leader in product development and creativity. We wish to always be a leading company and to make use of the opportunities we are given over time.
Guidelines for employees of the Moelven Group
Moelven has drawn up several central guidelines that apply to all employees of the Group, to hired workers and to those who act on behalf of the Group, for example board members. All employees must be familiar with Moelven's guidelines and perform their tasks in compliance with these. Managers are responsible for communicating the guidelines and ensuring compliance with them, but individuals are also responsible for seeking out information and familiarizing themselves with the guidelines and statutes that apply to their area of work. As a supplement to Moelven's guidelines, special guidelines may be stipulated or special statutes may apply to certain parts of the operations. In addition there may be rules for professional conduct for some professions that relevant employees may have to abide by.
The Group's most important central guidelines and policy documents related to social responsibility are:
- Moelven's code of conduct
- HSE Handbook
- Environmental policy
- Insurance and risk strategy - general insurance
- Work regulations
- Policy for an open company culture (including procedures for notifying of blameworthy conditions)
- Dealing with internal irregularities
- Policy on alcohol and drugs
- Data discipline instructions
- Policy for social media
- Legislation on competition in a Moelven context
- Guidelines for transfer pricing between companies
The documents are available in their entirety on Moelven's intranet.
Several of the guidelines are aimed at issues that should not occur, for example irregularities or breaches of competition law. In these cases the guidelines are also a description of procedures that must be followed when such incidents nevertheless arise. Senior executives have these guidelines as a part of their employment contract. From 2016 Moelven's Code of Conduct is integrated in the employment contract of all new employees. For existing employees, the Code of Conduct has been communicated in the organization. Apart from this, no specific control procedures have been implemented for such guidelines. For guidelines that are linked to areas where there are statutory requirements and regulations from public authorities, control of compliance is primarily by way of mandatory reporting to the authorities. One examples of such reporting is environmental reporting in connection with impregnation activities, waste handling, emissions, dust and noise. A final main category of guidelines is where the Group has separate targets and where reporting and control procedures have been established to monitor achievement of targets. One example of this is the HSE area.
In the following chapters the main areas concerning social responsibility and the Moelven Group's approach to these are described. Compliance with existing statutes and regulations must be a matter of course for everyone at Moelven, and in the description of measures for implementing social responsibility in day-to-day operations focus is therefore on measures related to social responsibility beyond what is statutory. Where relevant, excerpts from applicable Group policy on the area are included.
Human resources, employee rights and social conditions
Openness characterizes Moelven's corporate culture and is a part of the Group's identity. Openness creates a culture that ensures well though-out choices and good solutions for the business, our employees and the communities in which we operate.
Human resources ideal
The Group's human resources ideal is to "Provide opportunities for people with the drive to succeed". This is a philosophy that includes the Group's targets for which persons are recruited, what expertise is demanded, what pay and working conditions are offered, how new employees are introduced, what development and career opportunities are offered and how downsizing is handled.
Recruitment and personal development
Moelven acts strategically in both internal and external recruitment. Competent employees are vital to the Group's competitive ability and it is important for Moelven to emerge as an attractive employer.
Moelven focuses on long-term employment relationships and strives to offer its employees the opportunity to develop in their jobs. Motivated and competent employees are encouraged to take their personal development further, including through internal management programmes.
Employee representation and committees
Moelven views trade unions as important partners, and there is therefore a stable and open dialogue between the company and the employee representatives.
Moelven has employee representatives on both the Group board, the parent company's corporate assembly and subsidiary company boards in compliance with national legislation and regulations related to employee participation and representation in governing bodies. Additionally, the master agreement and collective agreement between the employee and employer organizations in both Norway and Sweden regulate matters concerning information, cooperation and employee participation. The agreements support the parties' desire and requirement that employee participation through cooperation should give employees the opportunity to contribute with their experience and insights to establish financial conditions for the company's continued development, through secure and good employment relationships to the benefit of both the company and the employees. Beyond the master agreements, cooperation is regulated through collective agreements for the individual disciplines within the Group.
In accordance with the master agreement between LO and NHO, Moelven has established a group committee for employee representatives. Together with a corresponding committee for Swedish subsidiaries, “Samarbetskommittén,” this group constitutes a good partner in discussion with group and division management.
Pursuant to the Master Agreement between LO – NHO and the Swedish act relating to European Enterprise Committees, a European Working Committee has been established between the parties in Moelven, which holds scheduled meetings four times annually. The parties have entered into a separate agreement that regulates the framework for dialogue, regular information and consultation at the European level.
At the individual units in Moelven working environment committees and joint consultation committees/works councils have been established with a basis in legislation and agreements.
Cooperation with the employees and employee committees works well, and no special measures have been implemented to strengthen this in 2016.
Working environment training
Moelven annually organizes its own courses in Better Working Environment (BAM). The courses provide basic training in handling health, safety and environment issues, and cover the requirements toward HSE training for both executives, safety representatives and members of working environment committees. Besides employees with mandatory requirements for such training, the course is open to anyone who works with and/or wants to know more about working environment and HSE work.
Absence due to illness
The Group's long-term goal is absence due to illness of maximum 4 per cent for the entire Group. In 2016, overall absence due to illness remained stable, and was 5.6 per cent for the year as a whole. A high rate of absence due to illness is not compatible with Moelven's values. A reduction in and stabilisation of absence at a low level is thus a priority.
In the past year short-term absence has remained stable at the same level as the two previous years, but with some variations between Norway and Sweden. In Norway short-term absence has dropped, while in Sweden it has increased slightly. Long-term absence has been relatively stable in both countries.
Work to reduce absence due to illness is mainly related to three primary areas: close follow-up of the employee, including focus on and follow up of residual capacity for work, measures to promote well-being and health, as well as emphasis on HSE when investing in new production equipment. Follow-up of employees takes place in accordance with applicable rules in those countries in which the Group operates. There is much emphasis on maintaining dialogue with employees on sick leave with a view to making the absence period as short as possible. In addition, Moelven's health insurance also functions well as an HSE measure to get those employees who need health services and treatment back to work faster. The health insurance scheme has been a successful measure from the start in 2007. The scheme has proven to be particularly favourable for employees with muscular-skeletal disorders.
Safety for employees
The Group's goal is that no one is injured when at work at Moelven. A safe working environment for employees, hired staff, customers and suppliers is essential for sustainable added value. Operations should therefore be organized such that it may take place without risk to life and health. In the target of 0 injuries there is an idea that all injuries can be prevented. Work to prevent injuries therefore has a high priority in the entire organization. The managers' commitment and involvement is essential to succeed with improvements in the HSE area as well. For this reason, courses in clear HSE management were held in 2016 for all managers with operational or personnel responsibilities. The safety representatives have also taken part in these courses.
To reduce the number of injuries, it is important to improve the knowledge of both near accidents and hazardous conditions or risks. In 2016 there were 74 injuries with subsequent absence, which is a reduction from 88 in 2015. In 2016 a total of 329 (410) accidents, 499 (270) near accidents and 920 (360) hazardous conditions related to persons were recorded. It is positive that the number of reported near accidents and hazardous conditions has seen a dramatic increase. This gives the group a far better basis for implementing good improvement measures. For 2016 the goal was that a minimum of 1,700 near accidents and hazardous conditions should be reported overall for incidents involving people, the environment or equipment. The reporting culture improved significantly, particularly in the second half of the year. For the year as a whole 1,986 cases were reported, with 745 near accidents and 1,241 hazardous conditions, and the goal was achieved by a good margin.
The injury rate remains unacceptably high, and efforts to achieve the target of 0 injuries were therefore further intensified in 2016, including through close follow-up of safety issues in the group's safety committee. The committee comprises corporate management, the HR manager and two employee representatives. In addition, Fagforum HMS, comprising the divisions' HSE resources and the HR department, has discussed group-wide HSE issues, exchanged experiences and presented proposals for several new procedures and guidelines. In 2016 the following was introduced:
- Minimum requirements to protective and safety equipment for all employees.
- Requirement of consistent safety information for visitors.
- Safety procedures for loading and unloading work.
Moelven's system for recording accidents, near accidents and hazardous conditions, fPortal, has been used by the Group since 2009. In 2016 work has been carried out on introducing an upgraded version of fPortal, with training of case officers and managers in all subsidiaries.
The number of injuries with absence per million worked hours (injury rate LTI) saw a pronounced reduction in 2016, while the number of days of absence due to injury per million worked hours (severity rate - F) increased. Although the injury rate has significantly dropped, the level remains unacceptably high. Further measures will be implemented in 2017 to achieve improvements in both the number of injuries and their severity.
The figure above shows the relation between reported hazards and incidents, and the level of injury frequency and severity.
Regular risk analyses are conducted at all plants. Investments and measures have brought factories up to speed in terms of applicable safety regulations. Safety procedures and equipment are in place, and information and conduct campaigns have been organized. Despite increased focus on safety and not least on attitudes toward safety at the workplace, one has not succeeded in reducing the number of injuries. However, developments in reported near accidents and hazards indicate that the ongoing HSE work has succeeded in raising awareness on safety at the workplace and provides a good basis for planning further work. In the autumn of 2015 the safety campaign Hel Hjem II was evaluated, and more new measures will be implemented in the time ahead to achieve the group's objectives. These included courses and follow-up for supervisors, clarification of responsibilities and dedicated HSE resources in each division.
Moelven does not accept conditions in suppliers' or customers' operations that constitute breaches of the UN declaration of human rights or other unethical conditions such as for example child labour.
Moelven wants an inclusive work culture and actively works to ensure a good working environment that is characterized by equality and diversity. Moelven does not accept any form of differential treatment on account of gender, ethnic origin, national origin, descent, skin colour, language, religion, philosophy or sexual orientation.
A need to implement measures to eliminate discrimination has not been registered in 2016.
Equality of opportunity
The combined share of women in the Moelven Group has been stable in recent years at approx. 11 per cent. It is a goal for the Group to further increase the share of women among staff further. However, most of those who complete education in the trades and professions the Group needs in its industrial activities are men. Often, when jobs are advertised, no women apply. For officers and managers the situation is different, and the share of women in areas such as economy, administration and management is significantly higher than for operators in the industrial activities.
The Moelven Group's units operate their activities in geographical areas where child labour very rarely occurs. In relation to our own production activities no control procedures have therefore been established on the area.
Certain units purchase raw materials for their production from continents where child labour may be a relevant issue. In such cases factory visits where the surveying of possible child labour is included as one of the control items.
A need to implement further measures has not been registered in 2016.
All hired workers regardless of nationality, are salaried in accordance with a centrally agreed agreement/tariff agreement. The Group also follows the provisions of the EU's staffing directive. The level of minimum wages in the agreements that are used are such that they in themselves are a guarantee against social dumping. In those cases where Moelven has subcontractors/contractors in deliveries, it is contractually stipulated that these are obliged to pay salaries at least equivalent to the applicable tariff agreement for the relevant industry.
A need to implement further measures in the area has not been registered in 2016.
Sustainability is one of Moelven's basic values. Environmental considerations are a natural part of day-to-day work and work is constantly going on to reduce effects on the environment.
Responsibility for the environment also includes past influence from activities on the ground, water, air and/or surroundings from watering, heating, transport, the depositing of bark, handling of oils, adhesives and chemicals, as well as activities producing noise and dust. Industrial production is largely based on the use of wood and the wood content of the finished products is very high in most operations. Wood as a material has many positive environmental aspects, including that it binds carbon dioxide. The vast majority of the forest raw materials that are used in Moelven's production end up as products or biofuel. The Group therefore produces little waste.The aim is that all fractions of wood shall be treated as potential input factors and contribute to overall value creation. Cellulose chips, dry chips, shavings and bark from the sawmills have ever increasing financial and environmental significance. District heating systems use dry chips, shavings and bark as fuel and the Group's own heating systems use chips and bark. For those companies in the Group that make less use of forest raw materials in their production, the industrialised building process helps to limit the environmental impact in comparison with traditional building methods.
For those companies in the Group that make less use of forest raw materials in their production, the industrialised building process helps to limit the environmental impact in comparison with traditional building methods.
The carbon cycle
Raw materials from sustainable forestry
All of the companies in the Group's timber processing operations are organized for and work to meet applicable requirements for PEFC (Programme for the Endorsement of Forest Certification). All sawmills also comply with the FSC (Forest Stewardship Council) Traceability and Controlled Wood standard. This means that Moelven buys round timber from suppliers who engage in responsible forestry. Through this certification, Moelven has established control routines and a tracing system that can trace the raw materials up the supply chain.
The exploitation of raw materials must be maximized through optimizing production and utilizing the residual products.
Raw material purchases must not occur from:
- Illegal harvests
- Forests with a high preservation value
- Forests where time-honoured or social rights are violated
- Forests with genetically manipulated trees
- Natural forests that have been harvested with the intention of using the area for plantations or non-forestry applications
- Suppliers who fail to comply with the International Labour Organization's core conventions
Environmental standards and certifications related to operations
The Moelven Group operates within sectors and product areas where a number of different environmental standards exist, and where new ones are constantly introduced. It is both Moelven's desire based on its own values and an increasing demand from the market that these standards are followed. Examples of relevant standards and certifications are:
- PEFC CoC and FSC CoC
- Several of Moelven's businesses are certified in accordance with the ISO 14001 environmental standard
- BREEAM (environmental classification for buildings) consists partly of the following:
- PEFC and FSC
- Life Cycle Assessment (LCA) with focus on low greenhouse gas emissions over time.
- Environmental declarations (EDP)
- Choice of surface treatment products the have low emissions for the indoor environment.
- Emission tests for indoor products (Hea 02 Indoor air quality)
Moelven continually works at all times to provide the correct and relevant documentation for all products and in being at the forefront of developments in terms of environmental requirements toward the products.
Moelven is voluntarily affiliated with various control schemes for production and products:
- Norwegian Strength Grading Inspection Scheme
- Norwegian Control Scheme for Preservative Treated Wood
- Nordisk Trebeskyttelsesråd (Nordic wood protection council)
- Kledningskontrollen (Cladding control scheme)
- Norwegian Glulam Control: Glued, end-jointed materials for load bearing constructions
Moelven strives to ensure that the negative impact on the environment from heavy transport to and from our plants is minimized by using environmentally classified trucks. Minimum EURO-5 og EURO-6 will now be the standard for all new vehicles. In the course of the past year the group has initiated several transport optimization projects to better exploit the vehicle fleet. Through a combination solution for the transport finished goods and by-products, driving without cargo has been significantly reduced. The group has also taken ownership of a transport company to ensure that this process gains full effect.
Obtaining raw materials, intermediate transport and delivery of finished products all generate a considerable need for transport. In 2016, Timber and Wood transported more than nine million cubic metres of timber, biomass and finished products by truck. In addition to this, there is transport for the laminated timber, building module and interiors companies, as well as rail and sea transport. Transport is therefore a considerable challenge for the Group, in terms of both the environment and finance.
Moelven is continuously working to reduce transport needs and optimise the utilisation of means of transport.
The geographical location, with the production units near the raw material areas, helps to reduce transport needs in that the volume of finished goods transported out is considerably less than that of the raw materials transported in. Influencing transporters to use eco-friendly means of transport is another important way of reducing the effects of transport on the environment. In the collaboration agreements with providers of transport services in both Norway and Sweden, requirements that the vehicles are at least classified in accordance with the EURO-5 standard have been included. Improved road standards, and thus increased axle load limits, are measures on the part of the authorities that will help to reduce the environmental effects of road transport. Work is also being done to open a greater road network in Norway for the use of 25.25 metre heavy goods vehicles with a total weight of 60 tons for finished products and by-products. In Sweden the permitted total weight for heavy goods vehicles has been increased from 60 to 64 tons, and a further increase to 74 tons in combination with longer vehicles is under consideration. In 2016 Moelven Skog AB was given dispensation for one 74-ton vehicle that has been involved in ordinary timber transport. These changes in framework conditions contributes to reduce the number of loads driven and thus has a positive environmental effect. In 2016 the group has also increased the use of railway to transport chips and energy products in both Norway and Sweden.
The group's work on optimising its transport will continue in 2017, and the goal is fewer kilometres driven without cargo. Additionally, work is being done to develop railway solutions where this is financially and practically viable.
At least 95 per cent of the energy requirements for heating premises and drying must be retrieved from self-produced bioenergy. Moelven must actively participate in the technological and market-related development of the bioenergy sector.
Moelven's energy and heating consumption in 2016 was approx. 1 102 GWh (1 060), across approx. 210 GWh electric power, approx. 892 GWh thermal energy and 0.4 million litres of diesel for rolling stock. About 90 per cent of the thermal energy was produced in the Group's own plants. The energy potential of the Group's chip and bark products, including cellulose chips, is a little under 5 TWh, which means that it has a considerable potential, both for increasing our own energy production and also for increasing the market for bioenergy in general. It is Moelven's aim to be able to use our own bioenergy to cover at least 95 per cent of the need for heating our own premises and drying timber products. Moelven takes an active part in the technological and market-related development of the bioenergy sector. In parallel with this, we are developing a growing external market for biofuels. Moelven's own energy efficiency activities mean that we increasingly have eco-friendly energy surpluses that can be sold to others and help strengthen our competitive position.
Emissions to air
Moelven has prepared CO2 accounts since 2010. This is based on the ISO 14064 standard for calculating emissions from Moelven's units. In 2016 Moelven's production and service units generated about 456 tons of CO2. About 87.8 (86.9) per cent of this represents CO2 in the natural circulation of carbon. The combined emissions have increased by 5.5 per cent compared to 2015, which is related to increased activity.
årsberetning samfunnsansvar CO2 rapportering E
Chemicals, oils, adhesives
Moelven aims to minimize the effect on ground and water by using environmentally friendly products to the greatest possible extent. The handling of chemicals, oils and adhesives must only take place at designated places with approved enclosure or similar installations to reduce the impact of eventual spills.
For waste oil and chemicals there are recycling systems with approved recycling centres or reception facilities. All units that use chemicals in their operations must have an summary of these. The summary must include an accurate description of the chemicals in question, which amounts that are used, which persons that are exposed, etc.
On 2 February 2016 a leak occurred in a diesel tank on Moelven Eidsvold Værk AS's industrial site, which led to a limited discharge to the Andelva river. The relevant authorities were notified, and the fire brigade inspected the site. Immediate action was taken by the maintenance department in cooperation with the industrial protection team to further limit the spill, which was successful using absorbent booms that prevented downstream leaks. A tank facility that satisfies new requirements was established, and procedures have been reviewed to prevent similar incidents. In January 2016 a small discharge of impregnating agent occurred at Moelven Østerdalsbruket AS at Koppang. A connecting stream was affected by the discharge. The incident was reported to public authorities, and measures were implemented to prevent recurrences. Water samples have been taken from the stream without permanent harm being discovered.
Beyond this, no conditions have been revealed in 2016 that require remedial measures in the area.
Watering and runoff
Moelven aims to recycle wastewater from timber storage as far as this is technically and practically possible. Watering systems at the timber warehouses must be climate-controlled. There must only be withdrawals of water from lakes and river, as well as runoff to surface following permission from the authorities. No conditions have been revealed in 2016 that require remedial measures in the area.
Pollution to ground
In connection with restructuring, modification or liquidation, potentially polluted areas at the plants must be identified, investigated and remedied as required. All objects classified by the authorities as potentially polluted must be identified. Based on risk classification and existing information, an action plan must be drawn up for any investigation and remedial measures. No conditions have been revealed in 2016 that require remedial measures in the area.
It must be ensured that any depositing of bark and other waste takes place at only approved landfills.
It must be possible to document that any landfills comply with applicable statutes and regulations concerning covering, control programmes, handling of runoff, plans for termination and modification. No conditions have been revealed in 2016 that require remedial measures in the area.
Moelven sorts and recycles waste as far as technically possible and annually follows up waste volumes per ton of final product. The share of waste in approved landfills must be minimized in accordance with results from registration and the action plan for the waste system. Sorting at the source is practised at all units, and contracts on required return schemes have been drawn up with suppliers. No conditions have been revealed in 2016 that require remedial measures in the area.
Dust and noise
Moelven must implement measures to adapt noise levels and dust formation at plants in accordance with the targets at the respective plants. The main noise sources related to Moelven's activities are the handling of timber, the operation of fan systems and transport. When needs are identified, measures are implemented to reduce noise to stipulated threshold values. No conditions have been revealed in 2016 that require remedial measures in the area.
Employees of Moelven must neither accept nor provide gifts or bribes that tarnish integrity. The Group dissociates itself from all forms of corruption and improper actions that impede free competition and market balance.
In the Group's business activities we must always maintain a healthy ethical and moral profile towards associates, customers, suppliers and other business associates. Moelven's code of conduct and Moelven's relation to competition law has been presented and discussed at meetings for both general managers in the Group and for finance managers. Moelven's compilation of ethical guidelines has been made available to employees. No separate control procedures have been established beyond this.