FLSmidth & Co A/S

A strong governance structure is essential for embedding sustainability in our organisation. The Board of Directors addresses sustainability updates every quarter and conducts an annual sustainability review to ensure it can effectively guide ongoing developments. This includes reviewing and approving our various policies annually. Group Executive Management acts as the company's Sustainability Board and holds overall accountability for the direction, progress and focus of our sustainability work, while the daily implementation of the strategy, underlying ambitions and policies to support sustainable development lies with relevant functions and ESG policy owners. [...] Key to our governance structure are targets and corresponding KPIs that are cascaded throughout the business. Our long-term incentive plan connects the remuneration of FLSmidth's senior management with progress in "economic intensity," which links our business growth with selling more energy-efficient, less CO2-intensive products. The weighting of the sustainability KPI for Group Executive Management is 20%. [...] As part of the newly introduced operating model, we are progressively introducing sustainability-based performance objectives within relevant employees' annual performance and development plans. Sustainability is included in the bonus programme for employees working in selected sales functions.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]FLSmidth overall sustainability ambitions are embodied by our MissionZero programme, which aims at delivering zero emission, zero energy and water waste solutions for mining and cement. Our promise is to deliver our customers zero emission equipment by 2030 the latest. MissionZero is the starting point of our engagement activities with industry associations and initiatives, with the ambition to raise the bar for industry standards, creating policy frameworks that accelerate the uptake of best in class solutions and raise awareness from our customers to breakthrough technologies. Through our approved Science Based Targets, we are committed to a decarbonization pathway that is consistent with Paris Agreements, under a 1.5C scenario.

We therefore review the various mission statements when they exist, or major communications, from industry associations we are engaging at Group Level to spot any inconsistencies with either our overall MissionZero ambition level and Paris Agreements. This review is a desk-based exercise.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes