Trelleborg AB

At Board level, the Audit Committee has been assigned to monitor the Group's work with sustainability issues, including climate issues. Starting in 2016, the entire Board was regularly presented with case stories related to Trelleborg's ongoing sustainability work at Board meetings. A more in-depth review of sustainability targets and indicators in each focus area for the coming period is also presented at the annual Board meeting after mid year. Overall, this clearly reflects the Board's commitment to the strategic direction. The operational sustainability organization is led by a Steering Committee comprising the managers of Group Legal, Group Communications and Group HR staff functions, while much of the day-to-day activities take place in the Sustainability Forum, a group comprising representatives from the Communications, Legal, Environment, HR, Purchasing and Finance/Treasury functions, and from the Manufacturing Excellence Program, as well as out in the operational units. Direct responsibility for environmental and occupational health and safety (OHS) issues is locally delegated – each production plant has an environ­mental coordinator and an OHS officer.

The Board has established three committees from within its ranks without this otherwise impacting the Board's responsibilities and duties. These are the Audit, Remuneration and Finance Committees. [...] The Audit Committee represents the Board in matters such as monitoring the processes concerning financial and sustainability reporting, risk management and internal control and also assists the Nomination Committee with proposals for the election of auditor. [...] The Audit Committee is also to represent the Board by monitoring the Group's work in relation to risk management issues and IT and IT-related security issues. The Committee is also to represent the Board by monitoring day-to-day financing operations, and annually reviews and makes proposals for changes to the Treasury Policy."
"Governance of Business conduct Group Legal is the oversight function for Bribery, Corruption and Competition. In that role Group Compliance, ultimately through Senior Vice President General Counsel, as head of Group Legal sets directions, defines policy and procedures. The decisions for changes and updates to direction and procedures lies with Group Management and CEO and for Policies with the Board of Directors. Trelleborg's Group function heads, business area Presidents and business unit Presidents are responsible for the overall adherence to the Code of Conduct and relevant business conduct policies within their respective areas of authority. Management, middle management, and employees out in the field and on the factory floor are supported by Compliance Officers, which are appointed every year by each Group company to serve as a contact point for all compliance issues in their part of the business. To support them in these efforts, Compliance Officers undergo a special training program. The Compliance Task Force is a Group forum comprising of relevant Trelleborg's Group function heads where updates and information is shared upon compliance topics. Group Compliance function, reporting to Senior Vice President General Counsel, is responsible for the Group's compliance program. Main findings from legal reviews are reported to Group Management and business area Vice Presidents Finance and Business Control and the Audit Committee. The Audit Committee has oversight of business conduct and Whistleblower matters, and receives reports from Senior Vice President General Counsel and Vice President Internal Control report on investigations regarding breaches of business conduct policies and Whistleblower investigations. A report is made to the Board of Directors on material items, see more on page 120.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Trelleborg's current "50 by 25† climate target for the 2021–2025 period will be applied using 2020 as the base year. In line with the Paris agreement, Trelleborg's climate target for the period is to reduce direct and indirect CO2 emissions (Scope 1 and Scope 2) by at least 50 percent relative to sales. Accordingly, the target for 2025 is for these emissions to be less than 5.45 metric tons per SEK M, since this corresponds to a halving of the base year value 2020, which was 10.9 metric tons per SEK M. In addition, the target entails that Trelleborg related indirect emissions of greenhouse gases (GHG) throughout the value chain will also be clearly reduced, mainly through supplier dialog, particularly in the areas of Purchased goods and services and Transports. The "50 by 25† climate target was launched in February 2021 combined with the vision of achieving net zero emissions in Trelleborg's own operations by the end of 2035. In April 2021, Trelleborg also made an official commitment to set a Science Based Target. This will mean that even emissions reductions along the value chain (Scope 3) will also be quantified in the period through 2025.

We ensure that our engagement activities are consistent with our overall climate change strategy by using well-established processes and mechanisms for reporting and planning of key sustainability and climate-related projects.

For the corporate sustainability reporting, each Trelleborg unit submits data into the common reporting system, in accordance with the Group's standards for Sustainability reporting. Starting from the 3rd quarter 2021, the reporting frequency of selected sustainability indicators increased from half-yearly to quarterly, with the ambition to include these indicators in external quarterly reports. Staffing on the BA-level has been increased in order to meet the growing reporting demands.

In 2022, two digital tools were launched that will support Trelleborg's business in planning and reporting of sustainability activities. One of them is a saving tracking system that was enhanced with a sustainability add-on function that allows users to track and plan energy- and climate-related impacts of different saving initiatives (e.g., now it is possible to report both monetary and CO2 savings from switching to LED lighting on a factory level). The other digital tool is a PowerBI-based dashboard that visualizes sustainability data submitted in the common reporting system on a quarterly basis.

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