Metso controls and monitors sustainability issues through various internal and external processes aimed at ensuring the validity and reliability of our sustainability management practices and reporting. Regular controlling and monitoring give us valuable information on the results of our sustainability work and are therefore important elements in our continuous efforts to build a more sustainable world.
Metso's internal audit assesses the efficiency and appropriateness of our operations. Its goal is to ensure the reliability of financial and operational reporting, compliance with applicable laws and regulations, and proper management of the company's assets. Internal audit also supervises the functioning of internal controls in all our units and operations and proactively encourages the development of risk management.
In 2010, new health, safety and environmental (HSE) requirements were added to the Metso internal auditing program. The added environmental indicators cover areas such as environmental management systems, environmental impacts and risks, and possible environmental incidents. Indicators for health and safety include the implementation of our Health & Safety policy, a safety plan in case of emergencies, and monitoring of possible incidents and near-miss situations. The new compliance areas are now a part of the standard auditing activities and were used in all internal audits in 2011. The general level of compliance and knowledge regarding these matters is good. The sustainability requirements included in the internal auditing program were based on Metso's Environmental and Health and Safety policies. In 2011, these two policies were replaced with a new Health, Safety and Environment (HSE) policy, and the internal auditing program will be updated accordingly.
Internal audit reports to Metso management, the auditors and the Board's Audit Committee. The head of internal audit reports administratively to the Executive Vice President and CFO, but also has direct access to the CEO and to the Chairman of the Audit Committee.
Metso Compliance fosters the quality of internal controls
Metso Compliance is an internal program to ensure the credibility of the company's financial reporting and compliance with the governance principles in all its units. All Metso units are required to achieve a standard level of internal controls set for them.
Internal audit, assisted by dozens of trained Metso testers in different parts of our organization, is responsible for the testing of the units.
Employees encouraged to report financial misconduct
The purpose of our internal control and monitoring systems is to prevent financial misconduct. However, should such misconduct occur, specific guidelines have been defined on how to report, investigate and further proceed with the issue.
Metso employees are encouraged to report suspected misconduct to their own supervisors, to other management or, if necessary, directly to internal audit.
Additionally, Metso employees and partners can report suspicions of financial misconduct confidentially via the Whistleblower channel, which is maintained by an independent party.
The report can be made via the Internet, by phone or by email in 21 different languages and anonymously, if necessary. Suspected misconduct is investigated immediately and confidentially. All cases proven to be misconduct are reported to the Audit Committee.
Non-financial issues also reviewed annually
Issues fundamental for Metso's management and strategy are scheduled for review in the strategy and annual plans of the Board of Directors, its committees, the businesses, and Group management. This procedure ensures that issues of strategic importance are reviewed regularly and that the achievement of targets and compliance with operating principles are monitored.
Our senior management thoroughly reviews our strategy and business environment, investments, acquisitions, quality, human resources, market shares and customer satisfaction, services business, product development and risk management at least once a year and more frequently, as needed.
In our sustainability management, we comply with several international standards, such as ISO 14001, ISO 9001 and OHSAS 18001, and many of our business units have gained certification to these standards. 51% of our relevant operations (excluding offices) are covered by ISO 14001 certification, 33% by OHSAS 18001 certification and 79% by ISO 9001 certification. In addition to these, 77% of our Valmet Automotive operations are covered by ISO/TS 16949 certification. The coverage is calculated by number of empolyees working in certified facilities.
The list of our ISO 14001 certified production units presented in our Sustainability results 2010 publication is not correct. The list contains all our reporting production units.
The sustainability performance data in our online publication and in our Annual Report 2011 has been externally assured by PricewaterhouseCoopers Oy. Metso's sustainability data has been assured since year 2010. Read more about the assurance process in our reporting principles and in the assurance report.