Global Reporting Initiative report 2017

    Elkem is one of the world’s leading companies in the environmentally responsible manufacture of metals and materials. The main activities are related to the production and sale of silicon materials, silicones, ferrosilicon, specialty alloys for the foundry industry, carbon products and microsilica.

    Elkem has 27 production facilities in Brazil, Canada, China, France, Germany, Iceland, Italy, Norway, Malaysia, Paraguay, South Africa, Spain, UK, and USA. In addition to production plants, Elkem also operates mining operations in Spain and Norway. Elkem also has an extensive network of sales offices around the world and is present in 28 countries globally.

    Elkem’s divisions serve numerous sectors and customers worldwide. The Silicon Materials division delivers products to customers in the chemical, solar, electronics, aluminium, construction, refractory, and oil and gas industry. Elkem Silicones is one of the leading producers of airbag coating, paper coating and other specialty products such as defoamers and lubricants. Important markets for the Elkem Foundry products division are automotive, engineering, pipe and steel industries. The Elkem Carbon division produces carbon materials for various metallurgical smelting processes and primary aluminium industries.


    Vision and values

    Elkem’s vision is “to contribute to a sustainable future by providing advanced silicon, silicones and carbon solutions, adding value to our stakeholders globally”.

    Our values are Respect, Involvement, Precision, Continuous improvement.

    Ownership

    In 2017, Elkem was 100 per cent owned by China National Bluestar (Group) Co. Ltd. (Bluestar), which is a subsidiary of China National Chemical Corporation (ChemChina). Bluestar has been the owner of Elkem since 2011, and of Elkem’s Silicones division (Bluestar Silicones) since 2007.

    Bluestar became a special subsidiary of ChemChina in 2004. Bluestar is centred on the chemical industry with focus on new chemical materials and animal nutrition. ChemChina is a state-owned enterprise incorporated in the People’s Republic of China.

    A list of all entities in Elkem is found in our annual report. The entities listed here corresponds with the entities covered in the GRI report, if not stated otherwise.

    In March 2018, Elkem was listed on the Oslo stock exchange and changed its name to Elkem ASA.


    Governance structure

    Elkem is governed by the board of directors. In 2017 the BoD consisted of seven individuals, five of whom were elected by the owners and two by the employees. Mr. Michael Koenig of Bluestar was chairman of the board. Elkem’s CEO Helge Aasen was board member elected by the owners. Aasen also sits on Bluestar’s board of directors.

    The board of directors approves the Elkem governance structure. Elkem considers good corporate governance to be a prerequisite for value creation and trustworthiness. Elkem has governance documents setting out principles for how business should be conducted. These apply to all Elkem entities.

    Elkem’s board meets regularly and conducts its activities in accordance with approved rules of procedure, which are based on the provisions of the Norwegian Public Limited Liability Companies Act. In 2017 there were no committees in the board of directors.


    Key figures

    In 2017 the turnover was NOK 16,658 million with a net profit of NOK 1012 million.

    Elkem’s equity was NOK 8,333 million at the end of the year, including non-controlling interest. Net interest-bearing debt amounted to NOK 1,742 million per 31.12.2017. Cash and cash equivalents amounted to NOK 1,601 million, in addition to NOK 2,331 million in undrawn credit facilities.

    Elkem does not disclose revenue geographically, but the revenue distribution between the divisions in Elkem in 2017 was 45 per cent from the Silicones division, 29 per cent from the Silicon Materials division, 19 per cent from the Foundry Products division and 7 per cent from the Carbon division.

    Elkem does not disclose quantity of products, but the capacity of each division can be found in the annual report page 10-17.

    For full financial statements for 2017, please see the annual report, here.


    Employees

    Elkem had 3,942 employees by the end of 2017, of which 3,103 men (79 per cent) and 839 women (21 per cent). Amongst managers the share of female workers was 28 per cent, and amongst white collar workers 36 per cent, slightly up from the previous year. Amongst operators the share of women was only 7 per cent.

    Europe was the region with most employees in 2017, with 2,670 employees (67,7 per cent). In Asia Elkem had 666 employees, in America 567 employees and in Africa 39 employees. The number of contract (temporary) workers was 273 in 2017. 225 of the temporary employees was in Europe, 29 in America, and 19 in Asia. There are no significant seasonal variations in number of employees through the year.

     

    Organisational changes and scope for reporting

    In 2018 Elkem was listed at the Oslo Stock exchange and changed its name to Elkem ASA.

    A list of all entities in Elkem is found in our annual report. The entities listed here corresponds with the entities covered in the GRI report, if not stated otherwise:

    • Elkem Foundry opened a new plant in Shizuishan, China. The plant is in scope for reporting.
    • Elkem acquired Fesil Rana Metall, Elkem Rana, at the end of 2016. Elkem Rana is in scope for this year’s report.
    • Elkem Foundry acquired a foundry alloy plant in Nagpur, India at the end of 2016. The plant is now part of the scope for reporting.
    • The silicones division changed its name from Bluestar Silicones to Elkem Silicones.
    • Elkem purchased all the shares of a ferrosilicon and foundry alloy plant in Paraguay that was previously only partly owned (50 per cent) by Elkem. Production started in March 2018 and the plant is thus not in scope for reporting in 2017.
    • In June 2017, Elkem assumed management responsibility of two Chinese plants owned by Bluestar, Jiangxi Bluestar Xinghuo Silicones Co., Ltd. and Yongdeng Lanzhou Bluestar Silicon Materials Co. Ltd. Zhongpu. These plants are not in scope for the 2017 sustainability report as ownership was only realised in 2018.
    • Elkem’s plant in South Africa is a joint venture. Reporting on personnel is done on a 50 per cent basis whereas emissions are reported on a 100 per cent basis.

     

      Elkem is a signatory to UN Global Compact, and Elkem’s definition of corporate social responsibility (CSR) is based on the ten UN Global Compact principles.

      Elkem’s silicones division is a member of Responsible Care Global Charter, the chemical industry’s global initiative to drive continuous improvement in environment, health, safety and security performance. This entails a commitment to managing chemicals safely throughout their life cycle.

      The group intends to follow the principles of the Norwegian Code of Practice for Corporate Governance, where applicable.

      Elkem is committed to complying with international regulatory requirements and provides safety data sheets (SDS) for all its products in accordance with the UN Globally Harmonized System of Classification and Labelling of Chemicals (GHS) or its National implementations.

      Elkem is an active member of national and European industry organisations such as Euroalliages, Eurometaux, the European chemical industry council (CEFIC) and industry associations in Norway and France.

        This report has been prepared in accordance with the GRI Standards: Core option.

        In 2017 Elkem’s CSR committee carried out an extensive materiality analysis. To ensure alignment with the new GRI Standards, the material topics were reviewed. To assess which sustainability topics were material to our stakeholders, we surveyed Elkem’s board of directors, corporate management and employee representatives (union representatives) as well as employees working on sustainability related activities. As part of the external consultation we carried out a reputation analysis including indepth interviews of key stakeholders, a global media analysis and a limited customer survey. The goal for 2018 is to verify and further develop the materiality analysis using a more structured approach to stakeholder engagement and conducting a comprehensive survey to include more customers and external stakeholders.

        The stakeholder assessment provided the following matrix of priority issues on sustainability for Elkem:

        Based on the identified material topics we have structured our report into five areas for action on sustainability: 

        1. Sustainable growth is about staying competitive in a world where sustainability is becoming an ever more important framework condition. Elkem is committed to innovation into new and more sustainable products and processes. We believe this is both a responsibility and a prerequisite to stay at the forefront of our industry, advancing materials and remaining competitive in the future.
        2. Governance and compliance is a prerequisite for value creation and trustworthiness. Our strict ethical standards apply to all employees, globally and we conduct training to enable our employees to make the right decisions and comply with our standards.
        3. Energy and environment. As a large consumer of energy and with operations that lead to significant emissions, Elkem is committed to reducing our footprint as much as possible and have implemented several initiatives to lead us in the right direction.
        4. Attractive employer. Elkem´s skilled and dedicated employees are the basis of our success and Elkem must strive to remain an attractive employer, both to retain and to attract new employees. Important areas of action are health and safety, training and competence building as well as promoting equality and diversity.
        5. Society impact. Elkem’s business activities have significant impact on local communities and society. As a large procurer of raw materials and capital goods, we strive to set a high standard for ethical conduct and social responsibility in our supply chains. Elkem strives to be a responsible neighbour and to foster continuous dialogue with our stakeholders. We have undertaken several initiatives to become more systematic and to improve our stakeholder engagement, so that we better understand and address any concerns that are raised. 

        Sustainable development goals

        In 2015, the United Nations set 17 Sustainable Development Goals (SDGs) to be achieved by 2030. The SDGs require the active participation of businesses as a principal driver in achieving these global goals. For the first time, Elkem has analysed how our business activities impact the SDGs and which goals are most relevant for Elkem to contribute towards. Read more about it here.

        In this year’s GRI report we include the SDGs in our reporting and in 2018 we will continue to explore the SDGs and their significance for our business as a further step towards integrating them into our reporting, as well as our strategy and management processes.

          Elkem’s mission is “to contribute to a sustainable future by providing advanced silicon, silicones and carbon solutions, adding value to our stakeholders globally”. To keep a sustainable competitive advantage and our license to operate, Elkem must be innovative and always look for new ways to reduce emissions and waste and get more out of our raw materials.

          We are committed to stay at the forefront of technology, advancing the production of silicon, silicones and carbon materials and to create new, innovative solutions and business models that promote a sustainable future.

            Future oriented and ambitious innovation has been the foundation for Elkem’s development and success since Sam Eyde established Elkem in 1904. Our commitment to R&D upholds our reputation as a leader in our field and we continuously lead the way to pioneering technologies that ask more from chemistry and metallurgy. Today, Elkem operates thirteen R&D facilities with more than 400 employees and R&D is an integrated part of Elkem's operations through all operating divisions. Elkem's R&D facilities and researchers also cooperate with notable research institutions around the world, such as University of Toulouse, University of Oxford, KTH in Stockholm and NTNU in Trondheim, to develop more efficient, sustainable and advanced manufacturing processes and products. In general, Elkem’s R&D is focused on:

            • Market driven R&D by generating innovative speciality products for markets such as renewable energy and electric mobility.
            • Operational excellence and sustainable specialisation through environmentally responsible and energy efficient production technologies, reduction of energy consumption and optimisation of the raw material base.

            In 2017 Elkem’s R&D and innovation efforts resulted in 19 new products and 9 new processes to increase efficiency and yield, and thus sustainability.

            You can read about many of our R&D and innovation projects on our website.

              Selected target group employees are also required to have documented training in Elkem’s anticorruption and competition law compliance policy. Each location is responsible for its own implementation and documentation of training, with support from the corporate HR and legal department. Agents doing business with Elkem’s products also have anti-corruption training. Employees who conduct supplier audits receive additional training in recognised international standards and the use of audit tools. The corporate EHS/CSR function is closely involved in this type of training.

              Elkem considers good corporate governance to be a prerequisite for value creation and trustworthiness. Elkem has governance documents setting out principles for how business should be conducted. These apply to all Elkem entities. The board of directors approves the Elkem governance structure.

              Elkem’s CEO is the formal owner of Elkem’s policy and programme for corporate social responsibility and governing documents are subject to board approval. Compliance with Elkem’s policies and manuals is the responsibility of each business unit. Compliance is followed up by internal boards in accordance with Elkem’s board instructions and monthly business reviews. In addition, various audits are carried out by staff functions such as the CSR Steering Committee, the Corporate HR function, the Corporate Finance function and the Legal department.

              • The formal CSR framework in Elkem includes the following policies and documents: General policy of Elkem AS
              • Elkem policy for corporate social responsibility
              • Mandate for the CSR steering committee
              • Code of conduct
              • Whistle blowing
              • Anti-corruption policy
              • Competition law compliance policy
              • Annual sustainability report

              All employees are given documented training in Elkem’s Code of conduct. Training includes details about all Elkem policies related to social responsibility and focus on dilemma training to give and understanding how local culture and customs can influence the perception of what is acceptable in different situations. Selected target groups are also required to have documented training in Elkem’s anti-corruption and competition law compliance policies. Agents doing business with Elkem’s products also receive anti-corruption training. Employees who conduct supplier audits receive additional training in recognised international audit methods and the use of audit tools.

              Elkem’s work on corporate social responsibility is coordinated by a steering committee reporting directly to the CEO. The CSR Steering Committee is led by SVP HR, and consists of high level representatives from legal-, communication-, EHS-, sales- and procurement departments. The main objectives of the committee and the CSR activities are to ensure compliance with internationally recognised standards for Corporate Social Responsibility. The committee has developed a number of dedicated documents and tools to facilitate compliance and improvements in the areas of sustainability and social responsibility. Each location and function is responsible for establishing an understanding of how Elkem’s CSR policy affect their specific working environment and to ensure full compliance. The CSR Steering committee provides advise on how to prevent discrepancies and the necessary resources to manage any discrepancies that may occur. The CSR committee should conduct eight annual CSR audits at different Elkem units. For 2017, seven audits were carried out. No major discrepancies were recorded, but the exercise is a good tool to raise awareness of dilemmas that may occur in certain countries and to provide advise on how to approach difficult topics facing each business unit.

                Anti-corruption

                Elkem does not permit or tolerate any form of corruption. Elkem is present in several countries where corruption is generally acknowledged as an issue of major concern. Elkem’s policy on anti-corruption applies group-wide and worldwide. The policy explains and elaborates on the content and implications of the anti-corruption policy for Elkem’s employees, representatives and partners. All Elkem personnel deemed exposed to corruption risks must sign the anti-corruption policy and manual and document e-learning.


                Corruption risk mapping

                Elkem sells products to companies located in several of the low 25 per cent tier of countries in Transparency International’s Corruption Perception Index. We conduct risk assessments on all operations group-wide and worldwide, but these countries will receive particular scrutiny. Typical risks include the use of consultants regarding receiving public approvals, use of agents, follow up of joint venture partners and so on.

                Risk assessments are typically conducted when entering into business arrangements in a new country where corruption is viewed as a major concern. Elkem will perform an integrity due diligence to assess the different risks related to corporate social responsibility, including corruption. The assessments may be done by relying on external specialists and will be regularly revisited. Elkem did not enter any new countries in 2017.

                Elkem also undertakes a group-wide mapping of sales to companies located in countries that are viewed as highly corrupt or as having serious corruption issues. The mapping ensures that the marketing departments are highly conscious of potential risks of unethical behaviour in these countries. Questions addressed relate specifically to customer evaluation, CSR policy communication, documentation of sales, transaction transparency, and the application of Elkem’s standards when using agents and distributors. All operations had undergone recent risk mapping in 2017.

                Elkem also conducts risk mappings in conjunction with our work focused on compliance with international trade sanctions.


                Training on anti-corruption and business ethics

                All Elkem personnel exposed to corruption risks must sign the anti-corruption policy and manual and document e-learning. This relates to the following personnel:

                • Corporate management
                • Division management teams
                • Divisional finance managers
                • Plant finance managers & controllers 
                • Treasury and credit management personnel
                • Corporate business support personnel
                • Technology management team / department leaders
                • All project managers
                • All managers in research and product development
                • All sales and marketing personnel
                • All procurement personnel
                • Production managers
                • General managers of subsidiaries
                • Key managers in logistics/supply chain/raw materials 

                Each Elkem business unit is responsible for understanding the specific challenges regarding anticorruption, the anti-corruption regulations applicable to its operations and for adopting adequate anticorruption guidance and measures.

                All Elkem personnel considered exposed to corruption are required to participate in anti-corruption training facilitated by Elkem. Elkem has developed a tailor-made e-learning course, which is compulsory for Elkem’s target personnel and representatives. New employees receive anti-corruption training as part of their on-boarding programme.

                The target is that 100 per cent of personnel in the target group should be trained in any one year. Challenges to reach the target for training may arise when Elkem acquires new, large business entities. This will in some instances cause delay so that the targets are not met. For 2017 the target was met except for a few individuals that recently joined Elkem and have since been trained. Reporting is not fully compliant as Elkem does not have central records with detailed lists of employees trained in 2017.

                Elkem’s anti-corruption policy, being a part of Elkem’s CSR principles, is communicated and to a large extent contracted with agents, distributors, partners, vendors and customers. They are also available on our website. 100 per cent of new suppliers must sign that they understand and accept Elkem’s CSR principles.

                Incidents in 2017

                There were no confirmed incidents of corruption in 2017.

                There has been termination of distributor contracts due to likely violations related to corruption when on-selling Elkem products. Such activity has been out of the control of Elkem, but Elkem has not appreciated the link to its brand. One fraud case is pending which started with whistle blowing by a contractor. The case is under police investigation as a complaint case after first having been shelved. The fraudulent amount concerned is not material. Two whistle blowing cases with accusations of employees having received kick-backs has been investigated internally, but not found to be justified.

                Anti-competitive behaviour

                It is Elkem’s general policy to compete vigorously and fairly in full compliance with relevant laws and regulations applicable to its business. To ensure group-wide compliance, Elkem has adopted a competition law policy and manual that describes conduct that will or might infringe competition law.

                Absolute compliance with competition law is expected of all Elkem business units, its employees and representatives. Elkem personnel considered exposed to competition law issues are required to sign the competition law policy and manual and participate in competition law training facilitated by Elkem. The relevant target group corresponds to the target group for anti-corruption training as seen above. Business unit leaders have the responsibility to take steps to implement Elkem’s policy in their respective organisations.

                Compliance for employees in the above-mentioned target group was 100 per cent for 2017, except for a few individuals that recently joined Elkem and have since been trained.

                Incidents in 2017

                There were two legal actions pending or completed during the period, with regards to anti-competitive behaviour or violations of anti-trust and monopoly legislation.

                Two cases regarding dumping of silicon into the USA and Canada were still pending in 2017, but have since been dismissed, with no anti-dumping measures against countries where Elkem has operations.

                There is one case in Canada still pending regarding illegal state subsidies in Norway. The case is expected to be closed in 2018.

                  Environmental compliance

                  Elkem is committed to stay within the rules and regulations governing all aspects of our activities, including environmental laws and regulations. Compliance is followed up by each plant as well as by the corporate environment department and management through business reviews. Any incidents of unplanned environmental emissions, even if they are within the law, will lead immediate actions to rectify the situation and an investigation to find the root cause of the problem.

                  In 2017, there were no reported material deviations causing risk of environmental effects. However, several plants had minor deviations from operating permit. None of the cases were subject to administrative sanctions or fines. Short term exceedance of operating targets for dust emissions was the most common deviation.

                  Non-discrimination

                  Elkem is committed to equal opportunities in an inclusive work culture. We appreciate and recognise that every individual is unique and valuable, and should be respected for his or her individual abilities. We do not accept any form of harassment or discrimination based on gender, religion, race, national or ethnic origin, cultural background, social group, disability, sexual orientation, marital status, age or political opinion.

                  Following up the principle of non-discrimination is the responsibility of each unit manager. Elkem has an internal notification service (whistle blowing) that employees can use to note their concerns about possible breaches of Elkem’s ethical guidelines or other possible unethical or illegal actions. This can be used to alert management of instances of discrimination.

                  Incidents in 2017

                  There was one case of verbal sexual harassment reported to the corporate level. The case was handled according to Elkem’s corporate procedure, leading to the issue of a written warning.

                  The #metoo campaign raised awareness around the topic of sexual harassment in several Elkem locations. This led to the launch of a communication campaign linked to the Elkem value “respect” aimed at revitalising discussions and preventing discrimination in Elkem’s plants.

                  Product safety

                  Elkem’s Product stewardship and QHSE team is committed to ensure regulatory compliance of all Elkem products when it comes to both the health and safety impacts of products and compliance with requirements for product and service information and correct labelling. Safety data sheets (SDS) for all its products are in accordance with the UN Globally Harmonized System of Classification and Labelling of Chemicals (GHS) or its National implementations. No incidents of noncompliance have been registered since measurements started in 2011.

                    Elkem has an internal notification service that employees can use to note their concerns about possible breaches of Elkem’s ethical guidelines or other possible unethical or illegal actions. Employees who do not feel comfortable raising issues of concern with their line management can contact Elkem’s General Counsel. Information about this is available on Elkem’s intranet. 

                      Based on highly developed production technology, Elkem converts natural resources into products that society needs. This process involves resource and energy consumption and emissions. Elkem is committed to continuously improve the company’s performance. Elkem is committed to reducing the company’s environmental footprint and to become more energy efficient. Elkem’s sustainability philosophy is based on the general principle of producing as efficiently as possible and with the maximum use of all input streams, such as materials and energy.

                      Parts of Elkem’s value chain is highly energy intensive, with silicon, ferrosilicon and foundry alloys being produced in electric arc furnaces. Elkem’s smelting furnaces consume around 5 TWh of electrical energy per year. The other processes in Elkem are considerably less energy intensive.

                      With today’s technology, the production of metals and materials on an industrial scale is not possible without the emission of various substances that can be harmful if not controlled. These include CO₂, NOₓ, SO₂, PAH and dust. Elkem works continuously to reduce emissions and has dedicated R&D activities to reduce the emissions of all major pollutants.

                      Elkem acquired Elkem Rana in December 2016. 2017 is the first year of reporting emissions from Rana, resulting in increases in all emissions. Elkem Solar (now REC Solar Norway) has been totally removed from the historical data.

                      The emissions to air include CO₂, NOₓ, SO₂ and dust. As these are inherent to our production process, emission levels vary with production volume from year to year. There are several projects focusing on process and technology development to reduce and clean these emissions. As far as net CO₂ emissions are concerned, improvement is dependent on improving production yield and increasing the amount of reduction materials from non-fossil sources that can be used.

                        Energy consumption

                        Elkem’s electric arc furnaces use both fossil and biogenic carbon as chemical reduction materials in the metallurgical process. Total use of fossil reduction materials in Elkem globally was 695,004 tonnes in 2017. This is up from 568,529 tonnes in 2016 and 530,793 tonnes in 2015, mainly due to the addition of Elkem Rana. Total renewable reduction material consumption in Elkem globally was 348,258 tonnes in 2017 compared to 299,903 tonnes in 2016 and 261,353 tonnes in 2015, also mainly due to the addition of Elkem Rana.

                        Total gross electricity consumption in Elkem globally was 5,279 GWh in 2017, up from 4,399 GWh in 2016 and 4,314 GWh in 2015. Most of the power is used in the electric arc furnaces.

                        Energy recovery

                        Elkem was an industry pioneer in the utilisation of waste heat, with the first energy recovery system on a smelting furnace being installed already in the 1970s. Today the company has several energy recovery units to capture and reuse the heat emitted from our smelting furnaces. The heat recovered can be utilized in the form of electricity, steam, or hot water and is used for different purposes both internally at the plants and for applications in the vicinity. Electricity is sold back to the grid and heat is used within the plants heat for heating and drying purposes, although in small amounts. Outside the plant the heat is sold for use in other industrial processes and as district heating. Electricity consumption is automatically measured and measurement data are sent to the company’s databases. All reduction materials are weighed before they enter into the furnaces and weights are automatically registered in the company’s databases.

                        Elkem has not kept global records of energy consumption outside our industrial processes as this energy consumption comprises a small percentage of the total and is very time-consuming to collect. We will aim to improve our records of auxiliary power and fuels consumption over time

                        In 2017, 210 GWh electricity was recovered at the plants in Thamshavn and Bjølvefossen, Norway. This represents an increase from 193 GWh in 2016 and 180 GWh in 2015. The increase is due to refurbishment and ramp-up of the energy recovery system at Bjølvefossen.

                        Globally, a total amount of 598 GWh heat was delivered in the form of steam or hot water from Elkem’s smelting plants in 2017. The largest industrial delivery came from Elkem Chicoutimi which in 2017 sold 281 GWh of steam to the nearby Rio Tinto aluminium plant. As a percentage of total electricity consumption in the company, the amount of delivered electricity and heat from the smelting plants was 15 per cent in 2017, up from 12 per cent reported in 2016.

                        Energy indirect (Scope 2) GHG emissions

                        Even though Elkem cannot affect the CO₂ emissions from the power producing sector, the company seeks to invest in plants primarily in countries with a very high share of renewable power production.

                        Of the total gross power consumption of 5,279 GWh in 2017, 96 percent took place in countries or regions with close to 100 percent renewable power production. The total indirect CO₂ emissions were 185,084 tonnes on a global basis with a weighted average of 0.035 tonnes CO₂/MWh.

                        All significant emissions of GHG are process emissions in the form of CO₂, i.e. there is no use of GWP rates. More than 95 percent of the total CO₂-emissions are calculated on basis of third party certificates on carbon content (TC) in raw materials (coke and coal). CO₂ from fuel, limestone etc. are based on standard conversion factors according to EU/ETS Guidelines. Most of the plants (counting for 89 percent of total reported CO₂-emissions) are subjects to the EU/ETS system and its external revision schemes.

                        Our indirect emissions, emissions from electricity generation, are calculated based on emission intensity factors provided by IEA CO₂ Emission from Fuel Consumption (2015) which were the latest available figures at the time of calculation. Any CH4 and N2O emissions are converted to CO₂ on a global warming potential basis by IEA. The calculations are comparable to scope 2 emissions from purchased electricity. We report indirect emissions according to the location-based method in the revised GHG Protocol Scope 2 Guidance and have chosen not to report indirect emissions according to the market-based approach, as this method does not give the correct picture of physical realities.

                          CO₂

                          For 2017, Elkem emitted 1,772,737 tonnes of fossil CO₂ – this was an increase from 1,493,782 tonnes in 2016, mainly due to the addition of Elkem Rana. In addition, Elkem emitted 321,800 tonnes of  biogenic CO₂ in 2017. The emission of biogenic CO₂ originates from woodchips and charcoal used as alternative raw material in the silicon/ferrosilicon smelter. In addition to substitution of fossil carbon, changes in production volumes influence the figures.

                          More than 90 per cent of the total CO₂ emissions were generated in the reduction processes in the smelters where carbon (C) reacts with oxygen in quartz to obtain silicon/ferrosilicon. The remaining 10 per cent CO₂ stems from the calcining of anthracite, use of fuels, etc.

                          Increased use of biocarbon to reduce fossil CO₂ emissions

                          Elkem’s long term goal is to achieve carbon neutral metal production. Several long-term R&D projects are in place to develop the necessary technology to reach this goal. Meanwhile, Elkem seeks to reduce fossil CO₂ emissions by replacing fossil coal with biocarbon as a reduction agent in our smelting furnaces. The initial target was to reach 20 per cent biocarbon for our Norwegian smelters by 2020 and 40 per cent in 2030. However, through consistent and dedicated effort the 20 per cent target was reached already in 2017.

                          A 20 percent use of biocarbon in the Norwegian smelters would reduce fossil CO₂ emissions by 310,000 tonnes annually. For 2017, the biogenic emissions were 321,000 tonnes.

                          Nitrogen oxides, sulphur oxides and other significant air emissions

                          Elkem has significant emissions of NOₓ, SO₂, and dust. Emissions vary mainly due to production volume.

                          NOₓ

                          NOₓ emissions increased from 5,777 tonnes in 2016 to 7,109 tonnes in 2017, due to the inclusion of Elkem Rana. Disregarding Elkem Rana, there was a reduction in NOₓ emissions from the remaining smelters of 228 tonnes, from 5,777 tonnes in 2016 to 5,549 tonnes in 2017. This reduction in NOₓ emissions was the result of several initiatives and projects that have been supported by the Norwegian NOₓ fund. In the period towards 2025, Elkem aims to implement projects to further reduce NOₓ emissions with up to 1,000 tonnes.

                          SO₂

                          In 2017, Elkem emitted 7,852 tonnes of SO₂, up from 6,730 tonnes in in 2016. The increase was due to the inclusion of Elkem Rana.

                          For SO₂ the main focus has traditionally been on sourcing raw materials with a lower sulphur content. As this potential is limited, scrubbing systems are also being considered where this is feasible. In 2017, Elkem Carbon (Norway) finished a major sulphur cleansing project with support from the Norwegian SO₂ fund. The project will have an effect from 2018. Elkem Bjølvefossen is planning a similar project.

                          Dust

                          Elkem allocates significant resources to combat dust. However, extremely high temperatures and ultrafine particles that disperse very quickly make it especially difficult to capture dust generated in some of the production processes.

                          For 2017, Elkem emitted 2,002 tonnes of dust (PM/particular matter). This was an increase from 1,754 tonnes in 2016. The increase was both due to the inclusion of Elkem Rana in the statistics, but also due to operational problems with the filters at several plants and the inclusion of fugitive fume (diffuse emissions) in the dust accounting system.

                          Waste

                          Elkem is working to reduce the amount of waste to deposit year on year. By far, most of the waste consists of inorganic stable materials such as slags, fines from quartz and fines from coal, charcoal etc. Volumes to landfill vary from year to year due to variation in the market demand for by-products. Elkem does not have hazardous waste.

                          Several plants have a zero waste to deposit target and have accomplished significant reductions over the last years. In 2017, Elkem included waste to landfill as a monthly corporate performance indicator. A common platform for categorisation of different components and disposal methods will make it possible to agglomerate global waste data from 2018 onwards. In Elkem Iceland a successful new technology increased recycling of by-products from 65 percent to 92 percent in 2017.

                          Elkem does not have hazardous waste. In 2017, Elkem included waste to landfill as a monthly corporate performance indicator meaning that we should be able to report on this material topic for 2018.

                          There were no significant spills, defined as spills that have a lasting environmental impact, from Elkem’s operations in 2017.

                            To support the business strategy, Elkem must strive to be an attractive employer. Organisational development, continuous talent management and systematic competence development are key factors for the successful growth of the company. A clear focus on health and safety and a strong company culture is also important to attract and retain employees.

                            As in all organisations, Elkem evolves and develops over time and the company culture evolves with it. Elkem’s values are involvement, respect, precision and continuous improvement. Together with the Elkem Business System they are at the core of Elkem’s company culture. EBS is our business philosophy and a toolbox that gives a common language and working methods for all employees to achieve both personal and business success. EBS covers all areas of work, including targets on EHS, productivity, quality and cost efficiency. The EBS method and philosophy applies throughout the organisation, and training of our staff is highly prioritised.

                              Elkem had 3,942 employees by the end of 2017, of which 3,103 men (79 per cent) and 839 women (21 per cent). Amongst managers the share of female workers was 28 per cent, and amongst white collar workers 36 per cent, slightly up from the previous year. Amongst operators the share of women was only 7 per cent.

                              The total number and rate of new employee hires per region in 2017 was as follows: • Americas: 72 new hires, turnover 6.9 per cent • Europe, Middle-East and Africa: 253 new hires, turnover 6.2 per cent • Asia: 72 new hires, turnover 6 per cent • Total turnover for the company was 6 per cent.

                              The data is gathered at group level from a monthly reporting from each plant and office. We currently do not have data available for temporary and permanent or part time/full time employees split by gender as reporting is done on a “full time equivalents” (FTE) basis. We aim to include this for the 2018 report.

                              More information is found under “About Elkem”.

                                Elkem’s health and safety work is based on a zero-harm philosophy. We do not accept that injuries or illnesses are unavoidable facts of life in our industry. Our statistics show clearly that it is possible to run operations with zero injuries. The status of Elkem’s health and safety work is discussed every week at group management level. Reporting and investigating all injuries are an important part of Elkem’s improvement work. Training of employees is key to achieving our targets.

                                Safety, injuries and occupational disease

                                Elkem has a goal of zero recordable injuries and has been on a downward trend in the numbers of injuries for many years, reducing the likelihood of injuries with almost 80 per cent since the turn of the century. From 2011 the improvement slowed until 2015, when results improved more than two-fold, giving Elkem the best safety results ever. Unfortunately, the number of injuries at some of the plants escalated in 2016, bringing the total results back to the level seen before 2015, even though most of the plants were still showing very good results. 2017 brought the company back on track after the temporary setback in 2016.

                                In 2017 the total recordable injury rate for own employees decreased from 5.1 (2016) to 4.5 injuries per million working hours. This includes both injuries with lost working days (H1) and other injuries that required medical treatment and/or restricted work (H2). Regionally, 71 per cent of all recordable injuries were at European plants while the other 29 per cent were in Asia (11 per cent), the Americas (14 per cent) and Africa (4 per cent). Elkem does not categorise injuries, occupational disease rate or absenteeism by gender at group level as females represent only 7 per cent of the total blue-collar workforce. We will aim to collect this data from 2018.

                                Contractor safety

                                Contractors deliver services of many kinds at Elkem’s plants, and are often an integrated part of the plants’ daily operations. Contractor employees working on Elkem’s property are subject to the same EHS requirements as Elkem’s own employees, and receive training and follow-up to ensure that they have a safe and healthy working environment. The total recordable injury rate for contractors was 8 (per million working hours) in 2017 which is higher than for our own employees, but a substantial improvement from 2016 (18) resulting from higher focus on contractor follow-up.

                                Injury severity

                                Elkem does not measure injury severity based on the number of lost work day as this does not give a correct picture of severity when you operate world-wide. Instead, the severity of each recordable injury is defined based on the short and long-term effect it has on the injured person health and capabilities. Low severity injuries give no permanent damage and have a short recovery time, medium severity injuries may have a longer recovery period, but no substantial permanent damage, while high severity injuries give substantial permanent damage. 90 per cent of all recordable injures (both own employees and contractors) were registered as low severity in 2017. In addition, there were 3 injuries with medium severity and 1 with high severity. There were no fatalities in 2017.

                                Absentee rate

                                The absenteeism rate for 2017 was 3.5 per cent, down from 3.8 per cent in 2016. Absenteeism is generally higher in Norway and other European countries (4-8 per cent) than in other countries where Elkem operates (1-3 per cent). Differences are mainly related to local public social security systems with generous benefits during sick leave in Norway and Europe. Absenteeism is not recorded by gender.

                                Occupational disease

                                Elkem’s production processes have a number of health challenges that are managed daily in Elkem’s organisation. The main exposures that may lead to occupational diseases are:

                                • Exposure to quartz dust in mining, transportation and storage of quartz, and exposure to SiO2 dust in smelting halls that may cause lung diseases.
                                • Exposure to PAH components in carbon paste production that may cause cancer.
                                • Exposure to toxic chemicals in chemical processes to produce siloxane and silicone products.
                                • Exposure to noise.
                                • Exposure to ergonomic challenges that may give long-term musculoskeletal damage. 

                                These exposures are carefully managed at each applicable site with containment, work and work station adjustment, and, when necessary, personal protection equipment that is provided free of charge to all employees. Many initiatives have also been implemented through the years to reduce exposure by reducing/eliminating sources of dust and noise, and substitution of hazardous substances in the production process.

                                Employees who are exposed for hazardous dust, chemicals and noise are also subject to extended medical follow-up. A medical examination sets a baseline for their health condition when hired, and routine medical examinations follow-up that this does not change over time.

                                Occupational disease rate

                                For the past three years there have been very few reports of possible occupational illnesses. Most of these are low-key ergonomic issues concerning strain and pain. There have also been several reports of possible lung disease relating to dust exposure, but none have been fully documented as work related. All of these have been in Europe.

                                  Elkem is active in a large number of demanding markets and the need for continuous developments and improvement is constant. The organisation’s improvement work needs to be targeted, fast-paced and of high quality. This requires continuous development of employee competence. Elkem actively uses employees’ day-to-day work situation as the primary arena for learning. We believe that the best way to develop new skills is to participate in actual improvement processes and problem solving based on the EBS principles. We also consider taking on new responsibilities as a very important way of learning and developing. To strengthen our learning-by-doing approach we also offer a number of inhouse training programmes. All employees receive an annual development discussion with their leader to discuss future development needs and career aspirations.

                                  There were no layoffs in 2017 and no need for transition assistance programmes.

                                  Training and education

                                  The in-house training regime includes several leadership development programs held both locally and globally, a standardised global on-boarding programme, technology and process training for technical personnel, extensive EHS training, training in Elkem business system, and global CSR training for targeted groups of employees.

                                  EBS

                                  To support Elkem’s “learning by doing” approach, extensive training in Elkem Business System is offered. EBS is Elkem’s philosophy and method for continuous improvement and achieving strategic goals. EBS forms the foundation of Elkem’s company culture, and training is of utmost importance. Employees can participate in training through different programmes from the EBS Centre including EBS University, EBS School and EBS Team Leader School. In 2017, approximately 220 employees received extensive EBS training lasting from one to five days.


                                  EHS

                                  Fokus is Elkem’s management system for EHS and includes training programmes for health, safety and the environment in the workplace. Focus is closely linked to the Elkem Business System sharing tools and methods. The emphasis is on continuous improvement and each employee’s involvement and responsibility to contribute to good results. All new employees receive basic Fokus training within six months.

                                  Trainees and apprentices

                                  Elkem has two trainee programmes – one for technical graduates and one for graduates with a degree in economics or a related field. The two-year programmes aim to give the trainees a wide experience from Elkem’s operations, both in terms of geography and types of work. Elkem’s trainees typically continue their careers in Elkem. In 2017, Elkem had 12 trainees of which 5 were women.

                                  Elkem has an extensive apprenticeship programme in Norway and hires apprentices within areas such as chemical processes, automation, logistics and IT. In 2017 Elkem had 48 apprentices in Norway, of which 8 were women.

                                  Performance reviews

                                  Elkem’s global target is that 100 per cent of employees of all positions and locations shall have an annual development discussion with their leader. The implementation rate varies from 95 per cent to 100 per cent, depending on the location. The reason for not always achieving 100 per cent at year end is often related to turnover or acquisitions of new entities. In 2017, the target was met.

                                    Elkem is an international company with a strong presence on four continents. Having employees to match this global presence, with diverse cultural and individual backgrounds, is necessary for the company to succeed. Elkem is a local employer and aims to employ local management and staff wherever we are present. The process industry is a male-dominated industry, but Elkem aims to achieve a better gender balance in its work force and is continuously looking for ways to improve.

                                    Elkem does not report on diversity parameters other than gender. As a local employer, Elkem recruits both management and operators locally in the countries we operate, and from the local talent pool around each plant.

                                    Diversity among Elkem’s employees

                                    The process industry is generally male-dominated. Women are, however, increasingly expressing an interest in working in our industry as increased automation leads to less heavy manual work and a strong focus on environment, health and safety gives a better working environment and more sustainable operations. The percentage of female employees in Elkem has, nevertheless, remained stable and low at 22 per cent. Among leaders in Elkem, the female share has increased to 28 per cent. The female share among employees in the white-collar population is 36 per cent and for blue-collar only 7 per cent. Elkem values diversity and aims to achieve a better gender balance year on year. Examples of actions to achieve this are the recruitment of minimum 50 per cent women to Elkem’s trainee programme, and to run communication campaigns that aim to create interest amongst young women to work in the industry. Another action taken is to actively encourage women to apply for management positions internally. At least 50 per cent of participants invited to Elkem’s leadership training programmes are women.

                                    Diversity in Elkem’s board of directors

                                    Elkem’s board of directors had only one female member in 2017. The board members were all above 50 years old. None of the board members were from minority groups.

                                    After Elkem became listed in Norway, the female share in the board increased to 50 per cent.

                                      Elkem’s Policy for corporate social responsibility describes our policy and practices with regards to human rights, employee rights, equality, non-discrimination and working conditions as well as environment and integrity in business. The policy is also applied to Elkem’s suppliers, and Elkem’s principles for corporate social responsibility is attached to all relevant supplier contracts.

                                      Elkem reports for our own operations globally. Elkem’s suppliers have a contractual obligation to follow Elkem’s principles for corporate social responsibility. The requirements include:

                                      • A clause to ensure that to the extent it is legally possible, suppliers must give all employees information about, and the ability to organise and collectively bargain with, the management.
                                      • A clause to ensure that no persons under the age of 15 (14 in some developing countries) work at our supplier’s plants and that they limit hazardous work and night work to persons over 18 years of age.
                                      • A clause to ensure that no persons are forced to work for them against their will. The supplier requirements are followed up by Elkem through supplier audits and visits. No instances in breach of Elkem’s principles for CSR have been recorded in 2017. Read more under Society impact.

                                      Collective bargaining

                                      Elkem complies with local statutory requirements regarding freedom of association in all countries where we are present. Pursuant to the provisions of the Norwegian Companies Act, employees have two representatives and two observers on the board of Elkem AS. The level of organisation varies from country to country. In some countries the operators are organised under one collective bargaining agreement. In other countries there are no unions represented in Elkem’s entities. Elkem supports the right to exercise freedom of association and collective bargaining and in general has good cooperation with the unions. 


                                      Information about the number of employees covered collectively by bargaining agreements is currently not available.

                                      Child labour and compulsory labour

                                      Elkem has operations in several countries where there is a risk of child or compulsory labour, notably India, Malaysia and Paraguay.

                                      The age limit for working in Elkem is 18 years of age, except for some vacation substitutes who can be 16, but they are only allowed to do light and simple work that does not conflict with school participation. Young people may also be allowed to participate in work activities relating to their schooling.

                                      Elkem’s operations are very visible in the local community and we require each unit to have written contracts, insurance policies and applicable social security arrangements with all workers. These are important measures to prevent child or compulsory labour.

                                      Similar requirements are included in contracts with our suppliers, which you can read more about under Society Impact. We have not recorded any incidents of child labour, forced or compulsory labour at Elkem’s operations in 2017.

                                        Elkem’s operations have significant impact on society throughout the value chain. First, our own operations have a considerable impact through local employment and tax payments, but also through negative factors such as emissions and traffic noise. Next, our suppliers of raw materials and capital goods have significant social and environmental impact that Elkem strives to keep to high standards. This involves contracting and following up our suppliers on parameters such as human rights, child labour, and health and safety. Finally, Elkem has an impact on society through our products and the properties and benefits they create for our customers and their customers. You can read more about the impacts of our innovative products under Sustainable growth. 

                                          Elkem is committed to conducting our business with respect for all internationally recognised human rights, and are dedicated to doing so consistently with the United Nations Guiding Principles on Business and Human Rights and the ten principles of the United Nations Global Compact.

                                          We will work to ensure the individual's right to privacy and personal dignity, promoting equality for all people and do not accept discrimination based on skin colour, race, nationality, social background, disability, sexual orientation, political or religious conviction, gender or age. Elkem does not tolerate any form of harassment or physical/mental abuse in the form of words or action. This commitment is stipulated in all our governing documents and all Elkem employees are required to sign a copy of the code of conduct stating that they will adhere to these principles.

                                          Elkem follows up human rights through risk assessments and audit programmes for suppliers and through due diligence before entering new countries or regions. Elkem did not start any new operations in new countries in 2017. All existing operations have been assessed for possible human rights impacts.

                                          Employee training on human rights

                                          Elkem personnel who are responsible for contracts with significant suppliers of raw materials, goods and services, or who are required to follow up Elkem’s CSR policy at supplier sites will receive training on how to conduct supplier audits including criteria for human rights assessments.

                                          At the end of 2017, the CSR Policy and principles were updated to reflect a more comprehensive focus on human rights. The updated policy will be implemented in 2018 and a defined target group will be required to confirm their understanding of the updated policy.

                                          Investment contracts with human rights clauses

                                          All significant investment contracts are screened using human rights criteria as well as other social and environmental impact criteria. The definition of ‘significant investment agreements’ are agreements above NOK 15 mill. or investments of a size that must be approved by plant management or higher. Elkem’s Principles for corporate social responsibility are attached to all significant contracts.

                                            Elkem is committed to the principles of non-discrimination and to respecting the rights of vulnerable individuals and groups. We are committed to understand the situation and political status of indigenous peoples that may be impacted by our activities and to seek to limit our impact.

                                            Existing operations

                                            Elkem’s mine in Tana is the largest quartz mine in the world and has been in operation since the 1980s. Tana is situated in the northern part of Norway in a region where indigenous Sami people have reindeer herding activities. As an indigenous people, the Sami are entitled to be consulted on matters that affect them, this right is enshrined in ILO Convention no. 169 on Indigenous and Tribal Peoples in Independent Countries, Article 6.


                                            Elkem has close cooperation with the Sami organisations near the Tana mine, whose reindeer rangelands encounter Elkem’s mining operations. Elkem Tana conducts both formal and informal dialogue with the local reindeer herding organisations to discuss issues that arise from the coexistence of the two activities.


                                            Elkem has recently applied to expand the area of the mine in Tana and, as part of the work in progress with a zoning plan application, we have consulted with local stakeholders including the impacted reindeer organisations. The impact of the expansion is not considered in conflict with applicable conventions.

                                            New operations

                                            Whenever starting up new operations, Elkem conducts due diligence in accordance with our procedures that includes risk assessment for impacts on indigenous people. Where indigenous people are present, Elkem seeks advise from local authorities as well as international and local consultants and NGOs with relevant competence to seek to understand the situation in each country and what issues Elkem must focus on to limit our possible negative impacts on indigenous populations.


                                            Elkem has applied for a permit to extract quarts from a new mine in northern Norway, the Nasafjell quarts mine. The area around Nasafjell is used for reindeer herding by both Norwegian and Swedish families of Sami origin. The Ministry of Local Government and Modernisation approved the zoning plan for Nasafjell in February 2016. A consultation process was conducted as part of the permit process and the Ministry made changes to the proposed project to ensure that the impacts on the reindeer herding activities in the area would be as limited as possible. Since the permit was given, Elkem has moved forward with the project.


                                            In accordance with the permits given by the Ministry, Elkem has sought dialogue with the impacted reindeer organisations to discuss what measures can best be taken to avert the impact on the reindeer herding activities. It has been difficult to achieve dialogue and the spokespeople for the reindeer families in the area do not accept the outcome of the permit process.


                                            Due to the difficulties in achieving dialogue and progress, Elkem has sought expropriation of land use rights in the area around Nasafjell. The expropriation is due in October 2018. In parallel, Elkem have commissioned a third-party consultant to conduct a detailed impact assessment with a focus on reindeer herding activities in the area. We will continue to seek cooperation with stakeholders to find the best possible measures to mitigate our impact on reindeer herding activities. There were no other incidents of disputes with indigenous peoples.

                                              Elkem sources large amounts of raw materials and capital goods for our operations around the world. Elkem sets high ethical, environmental and social standards that companies must meet to become our suppliers.

                                              Elkem’s corporate supply chain function holds the overall global responsibility for outlining and maintaining Elkem’s procurement and logistics strategies and policies. Elkem’s main purchasing categories are raw materials, equipment and construction and maintenance services on site. The function is working internationally across all divisions in the company, and the focus is to improve Elkem’s total procurement and logistics cost in a sustainable way.

                                              Elkem’s total procurement spend in 2017 was approximately 12.3 billion NOK, covering supplies of raw materials, materials, energy, goods, services and logistics. The active supply base consists of about 11,400 suppliers in Europe, Asia, Africa and Americas – of which almost 70 per cent in Europe.

                                              Supplier requirements

                                              All new suppliers of raw materials, goods and services are subject to pre-qualification based on corporate requirements within environment, health and safety, social responsibility, anti-corruption and compliance with laws and regulations. A risk assessment is also undertaken. Suppliers that fall into ‘high risk’ categories during the risk assessment are met with specific requirements included in their contracts. Risk-exposed suppliers are subject to detailed requirements from Elkem. Elkem also asks suppliers to influence their sub-contractors and suppliers to follow Elkem’s principles. Elkem is developing database and contract management systems to ensure compliance and governance throughout supplies.

                                              Elkem has developed detailed requirements for the health, safety and environmental standards of all our suppliers of operations like mining, transportation, storage and loading, and is actively involved in the promotion and monitoring of safe and decent working conditions at high-risk suppliers and contractors. This includes health and safety training and providing correct personal protection equipment for suppliers’ employees when necessary. Age control to prevent child labour and ensure responsible working conditions for young employees is also carried out. Elkem requires suppliers and contractors to engage their employees on fair terms, and that they give them information about the ability to organise and collectively bargain with management where this is legally possible.

                                              Elkem’s requirements are regularly discussed in meetings with suppliers. High-risk suppliers must document their understanding of legal requirements and hazards in their operations and present plans showing how risk will be eliminated or controlled while working for Elkem. Elkem performs audits and inspections, both regarding normal visits for sampling and as unannounced site visits. External auditors also conduct supplier audits on Elkem’s behalf.

                                              Violations of Elkem’s requirements are registered, and addressed with verbal or written warnings and requests for improvements. Repeated violations lead to requirements for speedy implementation of improvement plans written by Elkem, financial penalties, or termination of contracts with immediate effect.

                                              Supplier screening

                                              100 per cent of new suppliers of raw materials and hardware and services to plants and investment projects were screened using social and environmental criteria. The goal for 2018 is to improve documentation of screening and follow-up and to implement a global supply chain risk management system provider, starting with the Nordic countries.

                                              Supplier audits

                                              For raw materials the number of suppliers is relatively low and a structured auditing programme is in place to ensure that all existing suppliers receive regular audits. In 2017, 19 audits were conducted.

                                              For suppliers of goods and services such as hardware and plant equipment, the number of suppliers is significantly larger than for raw materials. New suppliers are assessed for social and environmental criteria, and regular audits are performed by plant personnel or corporate personnel. However, no central register has been kept so far. At the end of 2017, Elkem finalised negotiations to enter a partnership with a global supply chain risk management solution provider that will support existing and new suppliers in keeping their information up-to-date on a web portal, ensuring widespread visibility to their current qualification status and competencies. The system will also be used to keep a central record of supplier audits.
                                              No suppliers were found to have significant negative social or environmental impacts locally or in the supply chain in the reporting period.

                                                Elkem is focused on being a good neighbour everywhere our operations are located. Many of Elkem’s plants are cornerstone employers and of great importance to local communities, in terms of tax incomes, jobs and community development. As a long-term partner, we focus on maintaining a good dialogue with neighbours and local communities. Cooperation and dialogue with stakeholders are an important part of Elkem’s sustainability work.

                                                Dialogue with local communities is the responsibility of each plant or site manager and is carried out both formally and on an informal day-to-day basis. All Elkem’s plants have local initiatives and support programmes for better education, sports activities for children, better local infrastructure or other social impacts.

                                                Input from local communities is considered valuable information that helps us improve. Important topics for dialogue with local communities are community development projects, job security, safe operations, emissions and other environmental issues, and traffic generated by the plant. Complaints raised by local communities, and traffic incidents related to our operations are registered and managed in accordance with good practices for incident and deviation management.

                                                Stakeholder engagement

                                                Internal survey

                                                Currently, Elkem does not have a central register or overview of stakeholder engagement activities. As a first step to measure and report on community engagement and impact assessments, an internal survey was undertaken in autumn of 2017 to get an insight into stakeholder engagement activities, inputs and issues raised. 35 Elkem locations participated in the survey. Over 90 per cent of the plant and office managers surveyed stated that they had some form of structured stakeholder activity in 2017. 70 per cent of the respondents say that they keep records from stakeholder meetings, but the survey revealed that the records are not kept according to one template and as such, structured analysis of the input is difficult.

                                                The target for 2018 is to get a more systematic overview of the community engagement work done at each location and to put in place procedures and templates for recording stakeholder input and grievances on as well as the characteristics and spending on local community initiatives. The aim is to get a better global overview of Elkem’s impact on local communities and enable a more thorough impact assessment template to be developed for local use.

                                                Stakeholder groups and activities

                                                Analysis of the internal survey revealed that the organisation sees the following groups as Elkem’s key stakeholders: employees (current and future), local and national authorities, suppliers, customers, owners and shareholders, local community, unions, research institutions, NGOs, R&D funding partners and organisations.

                                                The survey revealed the many kinds of stakeholder engagement that are carried out throughout the organisation and what key concerns were raised.

                                                Community programmes

                                                All Elkem’s plants have local initiatives to support better education, sports activities for children, better local infrastructure or other social programmes. You can read more about some of our initiatives on our website under www.elkem.com/sustainability/ourstories.

                                                  Reporting targets

                                                  • Continue to refine materiality analysis with more comprehensive survey of external stakeholders
                                                  • Integrate the sustainable developments goals more into the report and consider reporting on selected targets


                                                  Governance and compliance

                                                  Long term goals:

                                                  • Train all employees at new plants and entities in corporate governance procedures:
                                                    - Code of conduct communication and signatures for all employees 100 per cent
                                                    - Anti-corruption training of target group 100 per cent
                                                    - Competition policy training of target group 100 per cent
                                                  • Compliance with laws and regulations – 0 deviations
                                                  • CSR audits carried out by CSR committee – 8 audits per year

                                                  Short term goals:

                                                  • Update corporate governance policies to comply with rules for listed companies at the Oslo Stock Exchange – implement in Elkem ASA

                                                  Energy and environment

                                                  Long term goals: 

                                                  • Energy recovery increase year on year
                                                  • CO₂-goal: on track to reach 20 per cent reduction of fossil emissions in 2020 and 40 per cent by 2030
                                                  • NOₓ goal: reduce emissions from Norwegian smelters by 1000 tonnes by 2025
                                                  • Indirect CO₂ emissions - stable year on year
                                                  • Zero major environmental spills / incidents

                                                  Short term goals:

                                                  • Elkem Fiskaa Carbon SO₂ scrubber and energy recovery unit fully operational by end of 2018
                                                  • Energy recovery project in Salten on track for completion in 2020 


                                                  Attractive employer

                                                  Long term goals:

                                                  • Zero recordable injuries
                                                  • Zero cases of serious occupational illness
                                                  • EHS training of all new employees 100 per cent
                                                  • Increased female share year on year
                                                  • Development discussions 100 per cent

                                                  Short term goals:

                                                  • Map female share in internal governing bodies and start tracking


                                                  Social impact

                                                  Long term goals:

                                                  • 100 per cent screening of new suppliers for social and environmental criteria
                                                  • Training of target group on human rights 100 per cent
                                                  • Zero incidents involving violation of human rights in F chain 

                                                  Short term goals:

                                                  • Implement updated human rights clauses through training of target employees
                                                  • Implement templates and reporting procedures for more systematic stakeholder engagement
                                                  • Map community programmes at all plants and units
                                                  • Implementation of supply chain risk management IT application on track