CSR Report 2011

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CORPORATE SOCIAL
RESPONSIBILITY REPORT
2011
KONGSBERG
Kongsberg Gruppen (KONGSBERG) is an international technology
corporation that delivers advanced and reliable solutions that improve
safety, security and performance in complex operations and during extreme
conditions. The Group is a customer focused organization with a worldwide performance culture. KONGSBERG works with demanding customers
in the global defence, maritime, oil and gas and aerospace industries.
CONTENTS
KONGSBERG
3
4
7
9
About the report
President and CEO Walter Qvam
This is KONGSBERG
Corporate Social Responsibility
at KONGSBERG
10 Our value platform
11 Our systems of governance and
guidelines
13 Key sustainability figures
14 Financial value creation
AREAS OF FOCUS
2011–2012
• Policy for sustainability
and Corporate Social
Responsibility • Anti-corruption • Suppliers • Dialogue with stakeholders • Climate strategy page 17
page 27
page 28
page 32
page 36
KEY FIGURES 2011
KONGSBERG Corporate Social Responsibility Report 2011
CLIMATE AND
THE ENVIRONMENT
16 Corporate Social Responsibility
Policy
17 Area of focus: Policy for
Sustainability and Corporate
Social Responsibility
18 Targets and activities related to
Corporate Social Responsibility
20 The UN’s Global Compact
21 Ethics on the agenda
22 Theme: Ethics and defence
production
23 The world of KONGSBERG
26 Theme: KONGSBERG in Asia
27 Area of focus: Anti-corruption
28 Area of focus: Suppliers
29 Our employees
31 Theme: Human rights
32 Area of focus: Dialogue with
stakeholders
33 Contributing to good causes
Amounts in MNOK
Operations
Operating revenues
– Operating revenues, outside Norway – Operating revenues, civilian EBITA
EBITA margin
Earnings before tax (EBT)
Net profit for the year
Order backlog
2
CORPORATE SOCIAL
RESPONSIBILITY
%
%
%
35 Introduction
36 Area of focus: Climate strategy
37 Environmental accounts for 2011
40 Theme: Energy conservation
41 Theme: Environment-friendly
products
APPENDICES
42 Global Reporting Initiative Index
45 Auditor’s Report 2011
2011
2010
2009
2008
2007
15 128
82
47
2 132
14
2 008
1 430
17 839
15 497
84
45
2 216
14
2 097
1 500
17 759
13 816
80
52
1 376
10
1 169
828
19 892
11 056
77
62
1 122
10.1
861
587
16 692
8 306
71
62
796
9.6
685
490
12 646
This applies to work with anti-corruption, the follow up of
CSR in the supplier network, our climate strategy, contact
with our stakeholders, and Policy for Sustainability and
Corporate Social Responsibility. We have designated these
areas “Areas of focus 2011-2012”. In addition, we have
chosen to provide more detailed information on certain
topics. These are designated as “Themes”. The Group’s
CSR Forum has helped define the contents of the report.
The purpose of this report is to give all our stake­holders
who are affected by or interested in our activities information about KONGSBERG’s approach to corporate
social responsibility.
The report covers the period from 1 January 2011 to 31
December 2011, and addresses topics related to corporate
social responsibility that we feel are of importance to us
and our stakeholders. Any significant events occurring from
1 January 2012 to 29 February 2012 will also be discussed.
All figures are associated with the 2011 fiscal year.
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
ABOUT THE REPORT
Global Compact – Communication On Progress (COP)
The Group has joined Global Compact, a UN initiative.
Among other things, this means that we submit a report to
the UN each year, describing the activities and advances
we have made in relation to CSR. The Group’s CSR Report
serves as such a report, i.e. a COP (Communication on
Progress).
We would submit that the report complies with Global
Compact’s criteria for Advanced Level reporting.
Changes in the reporting platform since the last report
In 2011, KONGSBERG acquired the companies Norspace
AS, Evotec AS and Seagear AS, adding a total of about 155
employees. Data from these companies are not included in
the environmental accounts for 2011.
Limitations on reporting
The information in the report is based on data obtained
from different parts of the Group. Although importance has
been attached to the information being complete and
accurate, some of the data will be based on estimates, and
there may be some uncertainty associated with some of
the figures. See also page 35 regarding limitations on
environmental data.
Independent verification
For the third consecutive year, this report has been verified
by a third party, i.e. the auditing company Deloitte. See the
Auditor’s Statement on page 45.
The Board’s role
The Group’s Report on Corporate Social Responsibility has
in its entirety been reviewed and approved by Corporate
Executive Management and the Board of Directors.
Process for defining the contents
The contents of the report are largely defined by the fact
that KONGSBERG has joined the UN’s Global Compact
initiative, and that we report according to the principles
prescribed in the Global Reporting Initiative (GRI). These
two frameworks clearly identify areas of focus related to
corporate social responsibility, and they are useful tools for
addressing CSR systematically throughout the entire
Group. The approach also means that we report in the light
of the expectations posed to us by our largest owner,
through White Paper No. 13 (2010-2011) – Active Ownership. Through our affiliation with GRI and Global Compact,
we contribute to international cooperation, measurability,
verifiability and benchmarking in this field. We devote
particular attention to the topics on which we focused in
2011.
Global Reporting Initiative (GRI)
We use GRI’s guidelines for reporting on CSR. Our report­
ing practice is, in our opinion, generally in compliance with
GRI’s reporting principles.
GRI uses a classification that indicates the extent to
which a company uses GRI’s definitions and disclosure
requirements. KONGSBERG complies with the requirements for level B+ (see Table below). For more details
regarding GRI, see their website at www.globalreporting.
org. The ‘+’ indicates that the report has been independ­
ently verified.
Information about the indicators can be found directly in
the text. The last pages of the report refer to the individual
GRI indicators and reference where they are dealt with in
the report.
GLOBAL REPORTING INITIATIVE (GRI)
MODEL
C
Obligatory
Self-declaration
Optional
Independently verified
C+
B
B+
A
A+
GRI-verified
KONGSBERG Corporate Social Responsibility Report 2011
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34 CLIMATE AND THE ENVIRONMENT
PRESIDENT AND CEO
WALTER QVAM
“The Group’s value platform and
the attitudes our values represent
are the very essence of
KONGSBERG’s work with
corporate social responsibility.”
Walter Qvam, President and CEO
At a time when our global markets are facing more
challenges than they have for a long time, we have
strengthened our positions in terms of products, markets
and finances.
Operating revenues came to NOK 15.1 billion in 2011, roughly
on a par with 2010. The operating profit was reduced by 3.8
per cent, and we maintained a strong backlog of orders,
valued at NOK 17.8 billion. The overall EBITA margin ended
at 14.1 per cent. We have invested the equivalent of nearly
10 per cent of our turnover in product development. We
have also intensified our efforts in relation to corporate
social responsibility throughout the Group.
KONGSBERG is a multi-product corporation that delivers products, services and systems to several industries
and market segments. This contributes to financial robust­
ness, and gives us a valuable network of international
customers. At the same time, the Group has a strong
common core. Our business areas have many common
denominators with a view to basic technology and
expertise. The Group’s core is also reflected in our shared
value platform, corporate culture and common corporate
processes. This core is being further developed, gaining
momentum and strength as the Group’s focus becomes
increasingly more international.
We consider our our value platform and the fact that we
do our best to comply with the principles we expound to be
extremely important. This is true in relation to the financial
results we achieve and to how we are perceived by our
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KONGSBERG Corporate Social Responsibility Report 2011
customers, as well as relative to our working environment.
A good corporate culture is also an important aspect of
corporate social responsibility.
A stronger international presence
Growth expands the range and the geographic scope of
the organisation. We have welcomed 1 000 new co-workers
over the past year, set up new international offices and
signed many cooperation and supplier agreements in
several new regions. We have also acquired several com­
panies and incorporated them into our organisation. With
such an international footprint, it is a given that we must
maintain intent focus on corporate social responsibility,
including anti-corruption, workers’ rights, human rights and
climate challenges. This poses more stringent requirements
for how we act in respect of our partners, how we handle
our in-house processes and how we deal with important
questions, dilemmas and attitudes.
Value platform
The Group’s value platform and the attitudes our values
represent are the very essence of KONGSBERG’s work
with corporate social responsibility. An organisation characterised by healthy attitudes, transparency and a desire for
continuous development and improvement motivates
behaviour that ultimately means more than most council
regulations and procedures. However, this requires that
value issues be placed on the agenda by management and
key personnel, and that there is genuine follow up of
Of these values, it is the last one, ‘Reliable ‘, which most
accurately describes our attitude to queries related to
corporate social responsibility, as can be seen from the text
below:
Reliable (dependable, trustworthy)
”Our customers and partners can count on KONGSBERG to deliv­er
– always. Working with KONGSBERG means working with reliable
individuals, a reliable company and reliable products. KONGSBERG
is a responsible organisation characterised by integrity and with
respect for health, safety and the environment. We are reliable
individuals. We are responsible members of society.”
Besides specific activities associated with corporate social
responsibility such as those described in this report, we
work systematically to discuss and gain understanding for
the importance of our value platform in all parts of the
organisation.
Dilemmas
KONGSBERG is a technology group that develops, delivers
and maintains products, systems and services in several
market segments, ranging from offshore oil and gas,
through the commercial fleet, defence and aerospace to
fisheries. Almost all business activities are exposed to
dilemmas associated with the ranking of short- and longterm priorities, or between idealistic theories and practical
realities. KONGSBERG must also deal with such dilemmas.
About half our Group is involved in the oil, gas and shipping
industries and they face challenges related to greenhouse
gas emissions. World demand for energy as well as for
transportation is growing, and even though alternative
energy carriers are moving into the market rapidly, oil and
gas will continue be the most important ones for many
years to come. KONGSBERG’s systems and products are
largely related to optimisation, safety and the management
and control of machinery, production processes and equipment. We offer systems and services that facilitate the
efficient use of resources, more efficient sailing routes and
safer operation of complex vessels and installations. In this
way, we help make improvements in industries that play an
important part in the further development of the world, but
the dilemma is that we must live with the fact that oil, gas
and transportation are still among the worst sources of
greenhouse gas emissions.
The other half of KONGSBERG’s operations is related to
systems and products for defence purposes. KONGSBERG
plays an important part in Norway’s overall defence, and we
have developed sophisticated products that are world
leaders and thereby also sought-after for many other
countries’ defence programmes. The world is still characterised by myriad conflicts and turmoi. With rising pressure
on limited resources, food, water and minerals, the world
will have to accept that the efforts to ensure the requisite
stability will become increasingly more demanding. The
global security situation is influenced by such factors as
well as by changes in power structures. Advanced defence
equipment, not least from KONGSBERG, is therefore
needed to protect national interests and stability. We have
to live with the dilemma that in extreme situations, our
products can help take lives. This is in the nature of the
defence industry. All exports of defence products require
permits from the Ministry of Foreign Affairs. The
Nor­wegian parliament has resolved that defence products
can only be sold to approved countries. Naturally, we follow
up these regulatory parameters in all of our activities.
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34 CLIMATE AND THE ENVIRONMENT
individuals’ behaviour. KONGSBERG’s four basic
values are:
• Determined
• Innovative
• Collaborative
• Reliable
The UN’s Global Compact
KONGSBERG joined the Global Compact in 2006. This
affiliation has been useful for us. We have learned more
about the topics covered by the initiative, both through
direct contact and through national and Nordic networks.
Each year, we draw up action plans for corporate social
responsibility. The principles in Global Compact are the
guiding principles for our plans. We will continue to support
the important work done in association with the Global
Compact.
Areas of focus 2011
In 2011, KONGSBERG elected to focus on the following
aspects of corporate social responsibility (all areas of focus
are discussed in more detail later in the report):
Ethics, business conduct and anti-corruption: The Group
operates predominantly within the defence, offshore oil and
gas and maritime segments. According to Transparency
International, parts of the international market for defence
materiel and oil and gas equipment are among the worst in
the world as regards corruption. This sets even clearer
standards for us, our regulations, our verification of com­
pliance and our conduct. Therefore, we also worked
systematically with our anti-corruption programme in 2011.
We invest considerable resources in training, attitude-shaping efforts and preventative routines.
Corporate social responsibility in the supplier chain: Good
work in this area reduces risk at the same time as we are of
the opinion that good working conditions in the supplier
chain help enhance the quality of the products we buy. We
have developed Principles for Supplier Conduct and
initiated our own audits, leading in turn to improvement
measures on the part of suppliers.
Climate strategy: KONGSBERG has taken the global
challenges as a point of departure, even though, in absolute
figures, we are a very modest polluter, given the nature of
our operations. We have set in-house targets for the KONGSBERG Corporate Social Responsibility Report 2011
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34 CLIMATE AND THE ENVIRONMENT
coming years, initially to raise awareness of the topic. We
have also established green technology projects and
campaigns aimed at environmental monitoring and wind
energy.
Stakeholder consultation: We have initiated a systematic
dialogue with our stakeholders about the challenges
inherent in corporate social responsibility.
Policy for sustainability and corporate social responsibility:
We have further developed our policy for sustainability and
CSR. It will be implemented in 2012.This will pave the way
for our work with corporate social responsibility in the years
ahead.
Opportunities: As a technology enterprise, we also foresee
great opportunities in the years ahead in new and alternative forms of energy. Our Green Shipping concept has been
further developed and we signed several contracts for this
technology during the year. We are also considering
embarking on further product areas in the energy industry,
in areas where it is clear that KONGSBERG’s technology
base would offer advantages.
KONGSBERG is an important contributor to the
government project BarentsWatch, which is intended to
promote sustainable development in the vulnerable areas of
the High North. We also have a project in collaboration with
Statoil aimed at subsea environmental monitoring (Integrated Environmental Monitoring). Internal organisation: At the end of the year, the Group’s
focus on CSR and Compliance was further reinforced, as
the CSR and Corporate Compliance Manager now reports
directly to the CEO and takes part in relevant decisionmaking processes at corporate executive management
meetings.
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KONGSBERG Corporate Social Responsibility Report 2011
Targets for 2012
The targets for 2012 will be to continue with the areas of
focus we worked with in 2011 and the initiatives arising
from the final framing of our Policy for Sustainability and
CSR. In this context, we have emphasised the follow-up of
the expectations of us, as expressed in White Paper No. 13
(2010-2011) – Active Ownership.
2012 will be yet another year characterised by a great
deal of uncertainty and many challenges, not least
business-related challenges. KONGSBERG has the very
best point of departure for continuing to make strong
progress in our main markets. We will actively continue our
work with the further development of technology, products
and systems that meet the extremely high standards set by
our customers. As an integral part of this work, we will
continue our corporate social responsibility efforts.
Walter Qvam
President and CEO
March 2012
THIS IS
KONGSBERG
KONGSBERG Annual Review 2011
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34 CLIMATE AND THE ENVIRONMENT
THIS IS
KONGSBERG
Kongsberg Gruppen (KONGSBERG) is an international,
knowledge-based group that offers high-technology
systems and solutions to customers in the oil and gas
industry, the merchant marine, defence and aerospace.
KONGSBERG’s solutions and deliveries contribute to safer,
more effective operations at sea, on dry land and in outer
space. Our products, be they for defence, the merchant
marine, the exploitation of oil and gas resources or fisheries
resources, are of strategic importance in Norway and at the
international level. For that reason, we are aware of our
corporate social responsibility.
In 2011, the Group had operations in more than 25
countries.
Organisation
The Group is divided into four business areas and a
corporate services centre. The head office is located in
Kongsberg. The business areas Kongsberg Maritime,
Kongsberg Defence Systems and Kongsberg Protech
Systems make separate financial reports, but for the
moment, Kongsberg Oil & Gas Technologies has a limited
scope and therefore reports under ”Other activities” in the
consolidated annual financial statements.
KONGSBERG GRUPPEN
Kongsberg
Maritime
Kongsberg
Oil & Gas
Technologies*
Kongsberg
Defence Systems
Kongsberg
Protech
Systems
* Reports its financial results under “Other activities”
“Our products, be they for defence,
the merchant marine, the exploitation
of oil and gas resources or fisheries
resources, are of strategic
importance in Norway
and at the international
level.”
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KONGSBERG Corporate Social Responsibility Report 2011
Kongsberg Maritime delivers positioning, surveillance,
navigation and automation systems for merchant vessels
and the offshore industry. The business area is a market
leader in dynamic positioning, automation and surveillance
systems, process automation, satellite navigation and
hydroacoustics, as well as material handling equipment for
use on deck for offshore vessels.
Kongsberg Oil & Gas Technologies offers innovative
technological subsea products and solutions, and information systems for the drilling operations, production,
reservoir and subsea purposes. The business area optimises
oil and gas operations through data control, simulation,
integration and analytical tools, in addition to engineering
projects and consultancy services.
Kongsberg Defence Systems is Norway’s premier
supplier of defence and aerospace-related systems. The
portfolio comprises products and systems for command
and control, weapons guidance and surveillance, communications solutions and missiles. Kongsberg Defence Systems
has expertise and production equipment to make advanced
composite and engineering products for the aircraft,
offshore, and helicopter market.
Kongsberg Protech Systems is a leading supplier of
several types of remotely controlled weapons control
systems. The business area’s main product is the Protector
Remote Weapon Station. The system enhances security for
personnel in military vehicles. KONGSBERG is the interna­
tional leader in this market.
Ownership structure
Kongsberg Gruppen ASA is listed on the Oslo Stock
Exchange and is subject to Norwegian securities legislation
and stock exchange regulations. The Norwegian state owns
50.001 per cent of the shares in the company. A complete
list of the 20 largest shareholders can be found on our
website under investor information.
Corporate social responsibility is important to
KONGSBERG and it is to be part of routine operations
as well as the Group’s business strategy.
In 2011, we focused on anti-corruption, climate strategy,
corporate responsibility in the supplier chain and dialogue
with our stakeholders. Attention will be devoted to these
issues again in 2012. In the early half of 2012, a new
strategy will be adopted for sustainability and corporate
social responsibility. Through the UN’s Global Compact,
KONGSBERG and more than 9 500 other companies
aspire to promote a more sustainable society. Global
challenges cannot be resolved without the active participation of business and industry. By the same token, these
challenges offer formidable technological opportunities.
KONGSBERG’s international operations are significant
and growing. At the beginning of 2012, 33 per cent of our employees worked outside Norway, and 82 per cent of the
Group’s sales took place outside the country’s borders. This
means we are a major player in many local communities the
world over. That implies an obligation. Companies with
international operations bear a special corporate social
responsibility.
As a supplier to the oil, gas and defence industries,
KONGSBERG faces challenges relative to its corporate
social responsibility.
Despite social dilemmas related to fossil fuels and
defence materiel, for example, these industries are
strategically important for Norway as a nation. Our
activities are subject to strict control. We deal with the
challenges related to our industries in compliance with
Norwegian legislation, and in line with our values and other
systems of governance.
We live in an era in which climatic change, shortages
of clean water and poverty are formidable global
challenges. In addition, several countries are experiencing
debt crises and instability. These challenges also affect
KONGSBERG’s activities, directly or indirectly.
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34 CLIMATE AND THE ENVIRONMENT
CORPORATE SOCIAL
RESPONSIBILITY AT KONGSBERG
AREA OF FOCUS
2011–2012
POLICY FOR SUSTAINABILITY AND CSR
AREA OF FOCUS
2011–2012
ANTI-CORRUPTION
AREA OF FOCUS
2011–2012
SUPPLIERS
AREA OF FOCUS
2011–2012
DIALOGUE WITH
STAKEHOLDERS
AREA OF FOCUS
2011–2012
CLIMATE STRATEGY
Page 17
Page 27
Page 28
Page 32
Page 36
• Global challenges
• Challenging sectors
• Base year 2010
• Use of third parties
• Guidelines for supplier
conduct
• Systematic dialogue
• Technological
innovation
• Cooperation
• Formal and informal meetings
• Improvements through dialogue
• Strengthen interaction
in 2012
• Relative reduction of
10% from 2012 to
2015
• “Licence to operate”
• Compliance system
•Consider new
measures
KONGSBERG Corporate Social Responsibility Report 2011
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OUR
VALUE PLATFORM
In January 2011, we introduced our revised value platform. We can summarise KONGSBERG’s culture, and
the ways in which we describe ourselves as individuals
and as an organisation, in four words: Determined,
Innovative, Collaborative, Reliable (see below).
Our common values are fundamental for the work we do.
Compliance with our value platform is crucial for attaining
the targets we have set in our vision, and thus for creating
value for our stakeholders.
Through our values and vision, we focus on the common
denominators in our corporate culture and on what
characterises typical KONGSBERG behaviour.
OUR VISION
“WORLD CLASS – through people, technology and dedication”
OUR VALUES
Determined
We are known for our drive and
persistence. We always strive to
meet our customers’ expectations.
We set ambitious goals for ourselves
and we are driven towards them with
a clear and constant focus.
What we start, we finish. We do
not give in.
10
Innovative
Always performing better is a vital
part of who we are. We constantly
innovate and implement improvements in all parts of our business
- from our products, through our
processes, to our customers’
experiences.
We relentlessly pursue
improvements, new ideas and new
solutions.
KONGSBERG Corporate Social Responsibility Report 2011
Collaborative
Collaboration is fundamental to our
business. We exchange ideas among
ourselves, with our suppliers and
partners, and we cooperate closely
with our customers. We work as
teams, we share knowledge and we
value team success - to the benefit
of our customers and our own competitiveness.
Reliable
Our customers and partners can
trust KONGSBERG to deliver, always.
Dealing with KONGSBERG means
dealing with reliable people, a reliable
corporation and reliable products.
KONGSBERG is a responsible
organisation characterised by
integrity and concern for health,
safety and the environment.
We collaborate as individuals and as
an organisation.
We are reliable people. We are
responsible citizens.
OUR SYSTEMS
OF GOVERNANCE
AND GUIDELINES
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34 CLIMATE AND THE ENVIRONMENT
KONGSBERG’s general system of governance is linked
to the ‘the Norwegian Code of Practice for Corporate
Governance’.
Annual General Meeting (AGM)
The Annual General Meeting (AGM) is the Group’s supreme governing body. Here, the shareholders can
influence how corporate social responsibility is practiced
at KONGSBERG.
The Board of Directors
The corporate Board of Directors bears the ultimate
responsibility for KONGSBERG’s contribution to sustainable development. The report on Corporate Social
Responsibility is discussed and approved by the Board.
Corporate Executive Management
Corporate Executive Management bears the ultimate responsibility for the Group’s strategy, development and
day-to-day work. This means Corporate Executive
Manage­ment is responsible for compliance with legislation
and regulations and our Policy for Corporate Social Respon­
sibility, as well as for the implementation of appropriate and
effective initiatives to ensure that we reach our goals.
The business areas
The business areas are responsible for follow up and
compliance with policy, strategy, targets and governance
documents related to corporate social responsibility. The
day-to-day work with corporate social and environmental
responsibility is usually handled by the four business areas
with support from the Corporate Centre.
Corporate Social Responsibility Forum
The Group has a CSR Forum that forms a link between the
business areas, the Corporate Centre and executive
management on issues of corporate social responsibility.
The Forum’s main task is to follow up corporate policy and
ambitions in this area.
Environmental Forum
The Environmental Forum is responsible for the Group’s
climate and environmental efforts. This includes the responsibility for the Group’s environmental accounts, responsibility for drawing up and proposing environmental goals for
the Group and the follow up of the targets for the business
areas.
Business Conduct Review Board
KONGSBERG has comprehensive guidelines for how we
are to comport ourselves in business situations. The
Guidelines are embodied inter alia in the Group’s Code of
Ethics and in the document containing the Code of
Business Conduct and Compliance (CBCC). Both of these
documents have been adopted by the Board of Directors.
The Business Conduct Review Board bears the main
responsibility for following up compliance with the CBCC.
The Review Board consists of one representative from
each business area, the corporate HR manager, the
corporate CSR manager and the Vice President, General
Counsel. The Group’s Compliance Officer chairs the
Review Board.
Ethics Council
The Group’s Ethics Council is to help raise ethical awareness, ensuring good behaviour and KONGSBERG’s good
reputation. The Ethics Council’s mandate is to deal with
cases of principle and questions linked to policies and
regulations. Ordinarily, the Council will not examine
individual cases. The composition of the Ethics Council is
subject to Board approval.
COMPLIANCE
KONGSBERG’s Code of Business Conduct
and Compliance was updated in February
2012. The document describes how we will
comport ourselves in business situations,
and how we will ensure compliance with
current legislation and regulations, and
our own Corporate Code of Ethics and
governance documents. KONGSBERG is
responsible for compliance with Norwegian
legislation and legislation in the countries
which we operatei. In certain cases, legislation extends across national frontiers, e.g.
the US Foreign Corrupt Practices Act and
the UK Bribery Act. KONGSBERG does
a large part of its business abroad, and is
subject to strict export regulations. Further
development of our compliance programme
takes place on a continuous basis, and
focuses on areas that are subject to risk.
For more details about our governing bodies, see the corporate governance section
on our website at www.kongsberg.com.
For more details about our governing bodies, see the corporate governance section on our website at www.kongsberg.com.
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KONGSBERG Corporate Social Responsibility Report 2011
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RESPNOSIBILITY
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KEY SUSTAINABILITY
FIGURES
FINANCIAL
VALUE ADDED
CSR
Indicator
2011
2010
2009
2008
2007
2006
2005
Value added
Direct and indirect taxes to State/municipality (MNOK)
Payroll expenses (gross) (MNOK)
Share dividend (MNOK)
Interest to lenders (MNOK)
Retained earnings (MNOK)
1 104
3 515
450
35
980
1 071
3 172
450
41
1 050
819
3 003
240
115
558
700
2 561
165
93
422
702
1 983
150
59
836
421
1 778
75
51
177
368
1 581
64.5
54
197
296
60
86
(23)
Level of education
Master's (%)
Bachelor's (%)
Technicians (%)
Production workers (%)
Other (%)
Number of employees
Number of full-time employees
Number of part-time employees
26
35
14
12
12
6 681
6 395
286
28
35
11
13
13
5 681
5 442
239
29
33
12
13
13
5 423
5 195
228
5 243
5 015
228
4 205
4 021
184
3 560
3 486
164
3 372
4 017
Corporate social responsibility
Financial support to organisations, etc. (NOK 1 000)
3 000
3 000
2 750
2 000
1 900
1 785
1 640
1 350
20.9
19.5
18.8
19.5
19.5
19
20
22
14
40
13
40
15
40
13
40
13
40
12
40
9
40
11
40
Age
Average age
Employees under age 30 (%)
Employees between ages 30 and 50 (%)
Employees over age 50 (%)
42.0
21.4
55.4
23.2
42
19
57
24
41.5
19
55
26
42.0
17
56
27
40.5
15
57
28
42.5
12
60
28
43.2
43.2
Turnover
Turnover (employees who have resigned)
Turnover (%)
– men
– women
424
6.4
4.4
2.0
346
6.1
4.9
1.2
250
4.6
3.4
1.2
222
4.2
3.0
1.2
203
3.9
3.3
0.6
335
4.3
4.3
1.2
Health and safety
Absence due to illness as % of number working hours
Number of reported injuries per million hours (TRI) 1)
Number of lost time days per million hours (ISR) 1)
2.2
1.67
1.07
2.5
6.3
22.3
2.6
5.5
58.2
2.4
3.5
5.6
2.4
2.7
3.1
3.2
Waste
Waste for recycling (metric tonnes)
Residual waste (metric tonnes)
Hazardous waste (metric tonnes)
960
380
300
723
872
177
827
594
52
717
511
28
662
402
58
606
392
59
502
347
63
519
441
157
Energy consumption
Electricity (MWh) 2)
70 667
District heating (MWh) 3)
37 196
Gas/oil (MWh)
1 528
Energy consumption (MWh/year) per employee 4)
16.4
Energy consumption (MWh/year) as a % of sales (MWh/MNOK) 5)
7.2
56 730
45 020
2 170
18.3
6.7
57 053
21 324
1 739
14.8
5.8
46 895
14 464
1 208
11.9
5.8
40 627
14 164
1 239
14.1
6.8
39 534
11 957
689
14.7
8.0
38 537
12 861
737
15.9
9.2
42 840
15 670
1 860
CO2 emissions (thousand metric tonnes) excl. travel,
incl. Kongsberg Technology Park
20 348
12 980
7 801
6 809
6 142
Percentage of women
Women as a % of the number of employees
Women in managerial positions as a % of total managerial
positions (Norway)
Shareholder-elected women on the Board (%)
THE
ENVIRONMENT
1)
2)
3)
4)
5)
22 282
2004
The figures for 2011 cover only the Norwegian parts of the company.
As from 2011, the figures include electricity used to produce compressed air and remote cooling supplied by Kongsberg Technology Park.
As from 2010, the figures include the production of district hearting at Kongsberg Technology Park for companies outside KONGSBERG.
As from 2010, the figures cover energy consumption per employee and sales includes energy consumption at Kongsberg Technology Park.
As from 2009, the figures include the emissions from the production of district heating at Kongsberg Technology Park delivered to companies outside KONGSBERG.
As from 2010, the figures also include air travel booked from Norway.
KONGSBERG Corporate Social Responsibility Report 2011
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
FINANCIAL VALUE
CREATION
KONGSBERG creates value in the areas and the
countries in which we operate. This takes place directly
through the payment of direct and indirect taxes, the
payment of dividends to owners and wages to em­
ployees, and indirectly by buying goods and services
from suppliers. Value is also created through the
importance we attach to research and development.
Dividends
The Board of Directors will propose a dividend for 2011 of
NOK 3.75 (3.75) per share to the AGM. If the proposal is
adopted at the AGM on 7 May 2012, dividends will be paid
as follows, based on the same ownership structure as at
20 February:
Amounts in MNOK
The Group has an impact on a large number of stake­
holders. Many of them are direct or indirect participants in
the Group’s value creation. Below please see a list of the
values our activities generate and how these are divided
among our main stakeholders. Payroll and social security expenses
In 2011, labour costs totalled NOK 4.5 (4.0) billion. Payroll
and social security expenses accounted for 36 (31) per
cent of total operating expenses.
Norwegian state
Organisations/
enterprises
Securities funds
Insurance/ pension
funds
Private individuals
Foreign owners
Total
2011
2009
2008
2007
2006
225.0 225.0 120.0
82.5
75.0
37.5
40.4
16.9
36.3 17.25
16.5
9.0
97.4
45.2
2010
97.6
48.4
56.4
27.6
25.0
24.4
12.5
9.5
9.9
19.9
20.2
12.0
7.3
6.6
37.5
32.6
11.5
8.4
5.7
450.0 450.0 240.0 165.0 150.0
4.5
3.75
3.0
75.0
Financial support
KONGSBERG received a tax refund of nearly MNOK 17
(29) from the Norwegian tax authorities. This refund was
linked to development projects.
Procurement of goods and services
KONGSBERG purchased goods and services valued at
roughly NOK 8.3 (9.5) billion in 2011. The Group has
registered more than 4000 suppliers that have sales to
KONGSBERG of more than NOK 50 000 each.
The attention of owners and investors
KONGSBERG is experiencing growing interest in ethics
and corporate social responsibility among our owners and
investors.
Tax
The Group’s tax expenses for 2011 came to MNOK 578
(597). Costs by geographical area:
Amounts in MNOK
2011
2010
2009
2008
2007
2006
Norway
Rest of Europe
North America Asia
Total
513
17
24
24
578
528
18
26
25
597
270
23
19
29
341
210
21
26
17
274
261
12
10
10
293
99
9
4
26
138
Financial risk relative to compliance
KONGSBERG has operations in industries and countries
that are particularly susceptible to the risk of corruption.
We also do business in countries known for having prob­­
lems associated with human rights, child labour, environmental pollution, etc. We are mindful that this presents
challenges with a view to our corporate social responsibility,
and that it can subject us to substantial financial risk. To
deal with our corporate social responsibility and minimise
our financial risk, we work systematically with CSR and our
compliance programme.
THEME
TAXATION
To the OECD, the term ‘taxation’ means, among other
things, that enterprises contribute to the public
finances of host countries by making timely payment
of their tax liabilities. In addition, the enterprises shall
ensure compliance with tax rules both formally and
materially.
that KONGSBERG will not tolerate tax evasion (using
unlawful means to reduce taxes) under any circum­
stances. Furthermore, required disclosures shall be
made to the relevant authorities so that the right tax
rate can be established and so that transfer pricing is
commensurate with the arm’s length principle.”
KONGSBERG’s in-house guidelines for taxation
reflect these requirements;
”It is KONGSBERG’s duty to comply with direct and
indirect tax regulations in all countries in which the
company has operations. KONGSBERG will do its
best to act in compliance with the provisions current
in an area at any given time. This means, inter alia,
Without compromising on this duty, KONGSBERG also
has a responsibility to our shareholders to legally
optimise and control our tax positions in connection
with business activities (tax planning).
The business-related aspects of KONGSBERG’s
activities top the agenda, and all tax planning will be
done in the light of this. A transaction should only be
14
KONGSBERG Corporate Social Responsibility Report 2011
completed if it fulfils the requirements in terms of both
the form and the content of the tax provisions in the
relevant jurisdiction.
Tax planning should take into account the risks
attached to implementation, documentation and
compliance on an ongoing basis. Consideration shall
also be given to KONGSBERG’s standing, brand
names and enterprises, as well as.
In connection with major bids, contracts and
framework agreements, tax-related issues are to be
reviewed and evaluated.
CORPORATE
SOCIAL
RESPONSIBILITY
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
CORPORATE SOCIAL
RESPONSIBILITY POLICY
The following are basic principles that underlie CSR
work at KONGSBERG as enshrined in the Group’s Policy
for Corporate Social Responsibility. This policy is
currently being revised and will be put before the Board
in 2012.
INTRODUCTION
KONGSBERG aspires to achieve sustainable
development, i.e. to strike a good balance
between financial results and corporate social
responsibility. The value created is to benefit
owners, customers and other stakeholders.
The Group’s CSR work will be on a par with
the general national and international trends in
the field. The quality and focus of this work
are to live up to the expectations of owners,
customers and other stakeholders.
KONGSBERG’s CSR objective is to
understand and deal with the local and global
challenges facing society in the geographical
areas in which KONGSBERG operates.
We will strive to ensure that the Group’s
suppliers and other partners follow basic
prin­­ciples for corporate social and environ­
mental responsibility that coincide with
KONGSBERG’s principles.
Integrity and transparency are to be guiding
principles for the Group’s work with corporate
social responsibility.
CORPORATE SOCIAL RESPONSIBILITY
KONGSBERG is affiliated with the UN initiative
Global Compact and will actively strive to
promote the initiative’s 10 basic principles.
Similarly, the Group will work to promote the
spirit of the ILO conventions and the OECD’s
Guidelines for Multinational Enterprises.
KONGSBERG’s employees shall comply with
the Group’s corporate Code of Ethics, which
reflects attitudes expected and accepted by
the community. The Code of Ethics will be
updated to stay abreast of trends in society.
Anti-corruption
Corruption shall not occur at KONGSBERG.
KONGSBERG will work systematically to fight
all forms of corruption.
Human rights
KONGSBERG will work systematically to
promote internationally recognised human
rights. All our operations will comply with the
UN’s Universal Declaration of Human Rights.
Human rights abuses shall not occur at
KONGSBERG.
Environment and climate
KONGSBERG will act responsibly with a view
to the footprint it leaves on the outdoor en­
vironment. This means we will strive to reduce
direct and indirect harmful influences on the
outdoor environment, including emissions of
greenhouse gases resulting from our activities.
KONGSBERG endorses the the UN’s Global
Compact and is committed to actively promoting the initiative’s environmental principles.
Similarly, the Group will strive to promote the
eco-intentions of the OECD’s Guidelines for
Multinational Enterprises.
KONGSBERG aspires to reduce the direct
and indirect greenhouse gas emissions
produced by its operations. We will strive to
achieve efficient, environment-friendly energy
consumption.
Pro-active efforts will be made to find
innovative product solutions that can reduce
greenhouse gas emissions in the areas in
which we operate.
Product development, production,
distribution, and the use, re-use and recycling
of KONGSBERG products are to be com­
patible with long-term sustainable social
development. KONGSBERG will strive to
minimise the environmental burdens generated
by its products.
KONGSBERG cooperates on environmental
and safety issues with customers, partners
and suppliers to find the most eco-friendly
solutions possible in the short- and the
long-term perspective.
Active efforts will be made to raise
awareness and get the organisation and
individuals engaged in environmental issues.
Employees
KONGSBERG’s employees shall be challenged
to take advantage of their abilities and to
contribute to the Group’s progress as well as
their own. They will be taken seriously, treated
with respect and given orderly working
conditions. KONGSBERG shall be a corporation with an abundance of diversity. As a
matter of course, health and safety shall be
given priority and all of our employees shall
have equal opportunities.
Local engagement
Through social investments, we will make
positive contributions towards the development of the local communities in which we
operate.
FOLLOW UP
We will ensure that our work to promote to
corporate social responsibility is planned in a
professional manner and integrated into the
Group’s business strategy, becoming part of
the Group’s business planning and follow-up
routines.
The Group’s Policy for Corporate Social
Responsibility will provide an overarching
framework for our CSR work , and the Policy
will be evaluated at least every other year.
Our external reporting will adhere to the
principles of the Global Reporting Initiative
(GRI).
KONGSBERG’s Policy for Corporate Social
Responsibility has been adopted by the
corporate Board of Directors.
28 April 2010
“Integrity and transparency are to be guiding principles
for the Group’s work with corporate social responsibility.”
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KONGSBERG Corporate Social Responsibility Report 2011
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
AREA OF FOCUS 2011–2012
POLICY FOR SUSTAINABILITY AND CORPORATE
SOCIAL RESPONSIBILITY
For quite some time, the Group has seen a need to
integrate more of its work with sustainability and corporate
social responsibility into the Group’s other strategic
processes. That was the background for one of the goals
for 2011, i.e. to evaluate and revise the strategy and goal
processes related to CSR.
The work has been based on global megatrends and the
challenges facing the Earth with a view to climatic change
and shortages of central resources such as energy, food
safety, access to clean water, the loss of biological diversity,
etc.
The main focus addresses opportunities and risks for
KONGSBERG in this perspective.
Technological innovation will be a key element for
resolving the major global challenges facing the Earth.
There are significant business opportunities inherent in a
large number of markets. We believe that KONGSBERG
has the expertise to play a part in many of these areas.
The megatrends also represent substantial risk. These
megatrends already have an impact on individuals,
companies and states, and their influence will no doubt
loom larger in the years ahead. It will be important for
KONGSBERG to ensure the acceptance of our stakeholders to operate and further develop the business activities
that we have today (‘licence to operate’). Among other
things, this means that we must continue and intensify our
efforts related to anti-corruption, human rights, workers’
rights and climate and the environment.
“The main focus addresses
opportunities and risk
for KONGSBERG
in this perspective.”
KONGSBERG Corporate Social Responsibility Report 2011
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34 CLIMATE AND THE ENVIRONMENT
TARGETS AND ACTIVITIES RELATED TO
CORPORATE SOCIAL RESPONSIBILITY
The Group’s work with and the priority assigned to
corporate social responsibility has increased year by
year. This means, among other things, that we have
selected areas on which to focus over a longer period of
time. In so doing, we have more continuity in our work
and we achieve better results.
The 2011 reporting year
2011 was characterised by high activity and substantial
growth in the number of employees. Corporate social
responsibility has received more focus and attention in
the past year. The following is a list of main targets and
activities.
The activities marked with are still fixed targets, but
the final performance has been postponed somewhat.
Activities marked have been completed. All of the
activities will continue to be high-priority areas in 2012.
TARGETS AND ACTIVITIES REPORTING REQUIREMENTS 2011
What we said – targets and activities
GOVERNANCE
STAKEHOLDERS
Strategy
• Evaluate and revise the strategy and goal processes
associated with corporate social responsibility
Suppliers
• Draw up routines and processes for the follow up of
suppliers with a view to corporate social responsibility
• Conduct audits and dialogue with selected ”high-risk”
suppliers with a view to corporate social responsibility
Dialogue with stakeholders
• Draw up plans and implement systematic stakeholder
dialogues related to corporate social responsibility
CLIMATE
18
Climate strategy
• Set goals for reducing greenhouse gas emissions and
draw up action plans
KONGSBERG Corporate Social Responsibility Report 2011
What we did – status
• Work completed. The revised Policy for Sustainability
and Corporate Social Responsibility will be adopted in the
early half of 2012
• Principles for Supplier Conduct have been drawn up.
The preparation of some routines and processes remains.
• Some pilot audits have been completed
• Plan drawn up and meetings held
• Climate strategy, targets and action plans drawn up.
To be adopted in Q1 2012
Performance
2KONGSBERG
15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
Targets – Corporate social responsibility 2012
The targets for 2012 will be a continuation of the areas of
focus we worked with in 2011 and the initiatives arising in
connection with the final framing of our strategy for
corporate social responsibility. In this context, we have
emphasised the follow-up of the expectations of us, as
expressed in White Paper No. 13 (2010-2011) – Active
Ownership.
TARGETS AND ACTIVITIES
2012–2016
What we said – targets and activities
GOVERNANCE
Policy
• Implement activities ensuing from the revision of
the Policy for Sustainability and Corporate
Social Responsibility
Process modules for sustainability and corporate
social responsibility
• Draw up and implement process modules in association
with acquisitions, new ventures, product development, etc.
STAKEHOLDERS
Suppliers
• Further develop routines and processes for the follow up
of suppliers as regards CSR
• Conduct audits and dialogue with suppliers with a view
to corporate social responsibility
Stakeholder dialogue
• Implement systematic stakeholder dialogues with
a view to corporate social responsibility
CLIMATE
Climate strategy
• Implement specific initiatives
• Start projects to identify further initiatives
Status
2011
1 year
Target 2012
3 year
Target 2014
5 year
Target 2016
Draft revised
Policy for
Sustainability and
Corporate Social
Responsibility
Adopt the revised
Policy for Sustainability and Cor­porate Social
Re­sponsibility
Implement
measures
Evaluate and
implement
Evaluate and
implement
New
Draw up and
implement
Evaluate and
implement
Evaluate and
implement
Commenced
Implement
Evaluate and
implement
Evaluate and
implement
Pilot audit started
Selected
high-risk
All high-risk
Selected
Started
Implement
Evaluate and
implement
Evaluate and
implement
Started
Implement
Evaluate and
implement
Implement
Evaluate and
implement
Implement
Start
KONGSBERG Corporate Social Responsibility Report 2011
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THE UN’s GLOBAL
COMPACT
In 2000, the UN’s Global Compact introduced a global
network for enterprises. The initiative is designed to
encourage the private sector to contribute to reaching goals related to poverty reduction and sustainable
development.
Global Compact is based on 10 basic
principles in the areas of human rights,
workers’ rights, the environment and
anti-corruption.
Enterprises that join the Global
Compact undertake a commitment to
do their best to run their operations in
keeping with these 10 principles. Common goals like
building new markets, fighting corruption, reducing
negative environmental impacts and promoting social
justice have resulted in fruitful cooperation between
businesses, the authorities, the community, labour
organisations and the UN.
Global Compact is a voluntary initiative, and by joining, an
enterprise signals that it is striving to improve in relevant
fields.
Global Compact is currently the world’s largest initiative
for the business community’s corporate social responsibility. At the end of 2011, approx. 9 600 (8 800) companies
and institutions from more than 140 countries had joined
the initiative, including 67 (59) Norwegian companies.
KONGSBERG joined the initiative in 2006.
The table below indicates where the 10 principles are
discussed in the report.
Global Compact has two main objectives:
• To make the 10 principles part of business practices in
companies the world over
• To promote activities and partnerships that help achieve
the UN’s goal for sustainable development
“Global Compact is based on 10 basic principles
in the areas of workers’ rights, the environment and anti-corruption.”
HUMAN RIGHTS
Principle 1
Support and respect the protection of internationally proclaimed human rights Principle 2
Make sure the company is not complicit in human rights abuses pages 16, 31
pages 16, 31
WORKERS’ RIGHTS
Principle 3
Uphold the freedom of association and the right to collective bargaining
Principle 4
Uphold the elimination of all forms of forced and compulsory labour Principle 5
Uphold the effective abolition of child labour Principle 6
Uphold the elimination of discrimination in respect of employment and occupation
pages 16, 29–31
pages 16, 31
pages 16, 31
pages 16, 29–31
THE ENVIRONMENT
Principle 7
Support a precautionary approach to environmental challenges Principle 8
Undertake initiatives to promote greater environmental responsibility
Principle 9
Encourage the development and diffusion of environmentally friendly technologies
pages 5, 12, 18–19, 35–36
pages 5, 12, 18–19, 35–36
pages 6, 18–19, 35–36, 40–41
ANTI-CORRUPTION
Principle 10
Work against corruption in all its forms, including extortion and bribery
pages 5, 12, 14, 16, 27
For more information on the Global Compact, see www.globalcompact.org
20
KONGSBERG Corporate Social Responsibility Report 2011
KONGSBERG’s Code of Ethics is the backbone for
how we conduct our operations, and applies regardless
of where, when and which of our employees is doing
business.
KONGSBERG’s attitudes to ethics
KONGSBERG’s corporate Code of Ethics expresses our
basic attitude and indicates how we should behave in
respect of and relate to colleagues, customers, suppliers
and society-at-large. Our Code of Ethics emphasises that
all employees and the Group’s Board Directors must
maintain high ethical standards when performing their
duties. We consider this a basic prerequisite for success
and for further healthy growth and development.
KONGSBERG’s Code of Ethics applies to the Group’s
directors, managers, employees, all casual employees,
consultants, agents, lobbyists and others who act on behalf
of KONGSBERG.
The Group has developed its own guidelines for suppliers.
Our Corporate Code of Ethics
The Code is evaluated every other year. It was last revised
in 2010, with the launch in January 2011.
In-house training
All our new employees go through an e-learning program­
me associated with the Group’s Code of Ethics. About
95 per cent of the Group’s co-workers had completed the
programme as at the end of 2011. The programme will be
further developed in 2012, and will be obligatory for all
employees on a periodical basis. A multi-faceted training
programme is also being further developed to study ethics,
business-related behaviour and special topics for selected
target groups.
The Ethics Council and ombudsmen
The Group has an Ethics Council chaired by the CEO and
consisting of representatives for corporate management,
the Corporate Compliance Officer and the employee
representatives from the Group’s Board. The Group’s
ombudsmen are entitled to attend the meetings.
The Ethics Council has two ombudsmen to represent
the business areas in Norway and abroad. The ombudsmen
are nominated by the business areas and elected by the Cor­­porate Forum. The ombudsmen are to give employees
advice and guidance on questions involving ethical dilemmas and notification of circumstances worthy of criticism.
2KONGSBERG
15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
ETHICS
ON THE AGENDA
Notification of circumstances worthy of criticism
The Group has special routines for notification of any
breach of the corporate Code of Ethics.
Employees have always had the right to report circumstances worthy of criticism, and a duty to do so if there is a
question of a violation of laws, rules or our corporate Code
of Ethics. KONGSBERG will not tolerate that a person who
reports a situation is subject to reprisals/negative reactions.
The general rule for notification is to follow the chain of
command, i.e. to try to resolve the issue as close to its
origin as possible. If this is difficult, employees can go to
the next rung on the organisational ladder, contact the local
or central HR Department, the Ethics Council represented
by the Council’s ombudsmen, or they can contact a safety
delegate, member of the Working Environment Committee
or their trade union representatives. As the last resort,
employees can contact the corporate Board of Directors
directly.
In 2011, the Group’s ombudsmen dealt with two cases.
The cases were resolved in collaboration with the business
area in question and were reported to the Ethics Council.
Sanctions
The Group was not fined or subject to other types of
sanctions in 2011 as a result of anti-competitive business
practices or failure to comply with legislation or regulations.
“Our Code of Ethics
expresses our
basic attitude
and indicates how we should
behave in respect of and relate
to colleagues, customers, suppliers
and society-at-large.”
KONGSBERG Corporate Social Responsibility Report 2011
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34 CLIMATE AND THE ENVIRONMENT
THEME
ETHICS AND DEFENCE PRODUCTION
KONGSBERG has 200 years of traditions and history
as a defence manufacturer and an important contributor
to Norway’s national defence. Defence production
currently accounts for half of our sales.
The Norwegian Armed Forces performs important tasks for
society in times of peace, crisis, armed conflict and war.
A modern total defence calls for state-of-the-art defence
systems, and KONGSBERG’s defence systems and prod­
ucts are an important part of this. KONGSBERG’s role as
a supplier of defence products must also be viewed in
connection with Norway’s security policy and international
obligations as a member of the UN and NATO. The Armed
Forces and KONGSBERG cooperate closely to develop
tailor-made systems to meet Norway’s particular needs.
KONGSBERG is also among the most important tech­
nological innovators in Norway, irrespective of industry.
The news is filled with stories about conflicts, turmoil
and terrorism. With rising pressure on limited resources
such as energy, food, water and minerals, the world will
have to accept that the efforts to ensure the requisite
stability will become increasingly more demanding. It is
a fact that the most extreme consequence of defence
systems is that they will enable people to take lives. Thus
we are affected by a number of dilemmas, ranging from
the place of war in resolving conflicts between sovereign
states, to the responsibility for ensuring that our soldiers
get the best possible equipment when sent into action.
Other dilemmas are that weapons are not supposed to
cause undue harm, especially to civilians, and ensuring
that one of the Group’s products is not used wrongly or
does not fall into the wrong hands. We are aware of the
special responsibility incumbent upon us as a defence
manufacturer. KONGSBERG respects that some people are
critical of Norway having a defence, a defence industry and
alliance-related obligations. There is, however, broad
political consensus on this policy.
Fact box
Developments since 2000 have shown
an increase in conflicts up to 2008,
while 2009 and 2010 brought a
decrease from 37 conflicts in 2008, to
36 in 2009 and 30 in 2010, respectively.
Source: Uppsala University, UCDP
Conflict Data Programme
Multi-purpose products are civilian
products, technology and services with
potential military applications.
Category A material consists of
weapons and ammunition. Category B
material comprises other military
materiel.
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KONGSBERG Corporate Social Responsibility Report 2011
The export of defence materiel
Norway’s rules for the export of defence materiel are
among strictest in the world. The Norwegian parliament
has resolved that defence products can only be sold to
approved countries. Transparency in relation to defence
exports is an important principle in Norway. Naturally, we
comply with these regulatory parameters in all of our
activities.
Export control implies that defence materiel, technology
and services can only be exported with an export licence
issued by the Ministry of Foreign Affairs. Export control
has a dual purpose: 1) to ensure that the export of defence
materiel from Norway takes place in line with Norwegian
security and defence policy. 2) to ensure that the export of
multi-purpose products does not contribute to the spread
of weapons of mass destruction (nuclear, chemical and
biological weapons).
Norway generally exports to allies. In 2010, 94 per cent
of the exports of Category A material and 88 per cent of
the exports of Category B material went to NATO
countries and Sweden and Finland. KONGSBERG has
extensive cooperation with the Ministry of Foreign Affairs
on licence applications. KONGSBERG has comprehensive
internal controls in connection with our export activities,
and this will be further developed in tandem with changes
in the authorities’ requirements.
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THE WORLD
OF KONGSBERG
KONGSBERG has more than 6 680 employees in more
than 25 countries. This marked an increase of 18 per
cent from 2010.
Svalbard
(Spitsbergen)
Norway (15)*
Main Office in
Kongsberg
Vancouver (Canada)
Lynwood (USA)
Salt Lake City (USA)
London (Canada)
Pocasset (USA)
Johnstown(USA)
Houston (USA)
New Orleans (USA)
Denmark
Sweden
Finland
Ireland
Russia
St. John’s (Canada)
Poland (2)
Germany
Netherlands
United Kingdom (8)
Ottawa (Canada)
Halifax (Canada)
West Mystic (USA)
Mount Arlington (USA)
Washington (USA)
Italy
Spain
Dalian (China)
Kuwait
Zhenjiang (China)
United Arab Emirates
Greece
India (2)
Saudi Arabia
Venezuela
South Korea (5)
Shanghai (China)
Guangzhou (China)
Mexico
Nigeria
Singapore (2)
Brazil
Australia
South Africa
*
Antarctica
Kongsberg, Asker, Bergen, Billingstad, Horten,
Kjeller, Kristiansand, Oslo, Sandefjord, Sandvika,
Stavanger, Stjørdal, Svalbard, Tromsø, Trondheim.
KONGSBERG Corporate Social Responsibility Report 2011
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34 CLIMATE AND THE ENVIRONMENT
EUROPE
Number of employees:
Norway: 4 520
Rest of Europe: 422
Operating revenues:
MNOK 6 483
Number of suppliers: *)
Norway: 2 850
Rest of Europe: 660
Finland
Germany
Great Britain
Greece
Hungary
Italy
Norway
Poland
Russia
Scotland
Spain
Svalbard (Spitsbergen)
Sweden
The Netherlands
ASIA
Norway
KONGSBERG is headquartered in Kongsberg,
Norway. The Group’s maritime operations are
located in Kongsberg, Horten, Sandefjord,
Stavanger and Trondheim, and include
development, production, testing, sales and
service. Oil and gas activities are located in
Sandvika, Oslo, Asker, Horten, Kristiansand,
Stavanger and Bergen. The facilities at these
locations are engaged in sales, product
development, project deliveries and service.
Defence activities are mainly located in
Kongsberg, but we also have defence
activities in Horten, Billingstad, Kjeller, Stjørdal
and Tromsø. All these locations are engaged
in development, production, testing, sales and
service. In addition, we co-own Kongsberg
Satellite Services, which has ground stations
on Svalbard for receiving satellite data.
Great Britain
The main centre of Kongsberg Maritime’s
offshore operations in the UK is in Aberdeen,
Scotland. We also have smaller offices in
China
Kongsberg Maritime has built up a substantial
business in China, operated in collaboration
with KONGSBERG’s long-standing partner,
Hoi Tung. We operate as a local supplier to
the Chinese shipyard industry, and
KONGSBERG now has offices in Shanghai,
Dalian, Guangzhou and Zhenjiang.
KONGSBERG has built a new 30 000 m2
factory in Zhenjiang. The plant opened in
August 2011, and manufactures sensors,
consoles and electromechanical products.
India
Kongsberg Maritime has sales and service
offices, software support and development
activities in Mumbai. The business has grown
in recent years. There is growing focus on
maritime safety and coastal and harbour
surveillance in India.
Kongsberg Oil & Gas Technologies has
operations in Mumbai relating to sales and
project implementation.
Malaysia
Kongsberg Maritime has set up a sales and
service office for fisheries activities in
Malaysia.
Number of employees:
999
Operating revenues:
MNOK 3 064
Number of suppliers: *)
100
24
China
India
Kuwait
Malaysia
Saudi Arabia
Singapore
South Korea
The United Arab
Emirates
KONGSBERG Corporate Social Responsibility Report 2011
Middle East
The Group’s defence activities have operations in the United Arab Emirates, Kuwait and
Saudi Arabia. The main activities there are the
operation and delivery of projects involving
tactical radio and communications systems.
Wick, Scotland, and in Waterlooville and
Great Yarmouth, England. These locations are
engaged in product development, production,
sales and support.
Kongsberg Oil & Gas Technologies has
operations in Waterlooville, England and
Aberdeen, Scotland. These are sales, support
and project offices.
Through its subsidiary Kongsberg
Norcontrol, Kongsberg Defence Systems has
a sales and service office in Bristol.
Through its subsidiary Kongsberg Integrated Tactical Systems, Kongsberg Protech
Systems has a sales office in Hereford.
The rest of Europe
The Group also has business operations in
Sweden, Finland, France, Germany, the
Netherlands, Spain, Italy, Poland, Greece,
Hungary and Russia. These are sales and
service offices.
In 2010, Kongsberg Maritime opened a new
service office in Dubai, and Kongsberg
Oil & Gas Technologies set up a sales office in
Abu Dhabi.
Singapore
The Group’s maritime operations in Singapore
focus mainly on sales, installation, engineering, commissioning and service/support.
Singapore has one of the world’s largest
harbours, and it is essential for KONGSBERG
to have a presence in such a maritime hub.
Singapore is also a major shipping and
ship­building nation, making it very important
for KONGSBERG to offer good service there.
Kongsberg Oil & Gas Technologies has a
sales office in Singapore.
Kongsberg Norcontrol makes significant
deliveries to Singapore’s harbour surveillance
systems, and is also represented there.
South Korea
The Group’s main maritime operations in
South Korea are located in Jungkwan outside
Busan. Its main responsibilities include sales,
engineering, installation, commissioning and
service/support, as well as local production.
For years, we have been building up a local
presence based on highly qualified
co-workers in the world’s largest shipbuilding
nation. Our customers view us as a reliable
local supplier that knows the customer’s
business operations and way of working, and
as a business that communicates with
customers in their own language.
In addition, defence activities have a sales
office in Seoul.
*) Approximate number of suppliers with sales of more than NOK 50 000 in 2011.
Other continents: About 20 suppliers.
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
NORTH
AMERICA
Number of employees:
694
USA
Canada
Operating revenues:
MNOK 5 142
USA
Kongsberg Maritime has operations in Seattle
(Washington), Houston (Texas), New Orleans
(Louisiana), Pocasset (Massachusetts),
Salt Lake City (Utah) and in West Mystic
(Connecticut). Pocasset is the site of
development, sales and support for auto­
nomous underwater vehicles (AUVs), in close
cooperation with AUV activities in Norway.
The other units are mainly engaged in sales
and customer support. The unit in Seattle is
also engaged in technological development
and the adaptation of existing products for
the US market.
Kongsberg Oil & Gas Technologies has
operations in Houston (Texas) aimed at sales,
support and project implementation.
Kongsberg Protech Systems has operations in Alexandria (Virginia), Johnstown
(Pennsylvania) and Mt. Arlington (New
Jersey). Johnstown is the site for the produc­
tion and maintenance of the Protector
weapon control system for the American
market. The office in Alexandria is a joint
marketing office for all KONGSBERG’s
defence activities.
Number of suppliers: *)
510
The Kongsberg Protech Systems’ subsidiary
CENTRAL
AND SOUTH
AMERICA AND
ANTARCTICA
Brazil
Kongsberg Maritime’s business in Brazil com­
prises sales, service, engineering and the
commissioning of systems for offshore vessels, as well as user training. Business is
booming on the oil fields outside Rio de
Janeiro. The shipping industry has grown at
a formidable pace, in step with the country’s
political and financial situation. KONGSBERG
currently has a number of deliveries and
projects for commissioning in the area. These
are handled by local personnel. The training
Centre in Macaé outside Rio de Janeiro offers
different training programmes for Brazilian
crew members, including simulator training.
The unit also has its own anchor handling
simulator.
Number of employees:
46
Operating revenues:
Antarctica
Brazil
Mexico
MNOK 255
Number of suppliers: *)
20
Kongsberg Integrated Tactical Systems
develops and makes components and
systems for infrastructure for vehicles.
Canada
KONGSBERG’s largest maritime business in
Canada is located in Vancouver. The company
there is engaged in proprietary product
development and production. Operations in
Vancouver are based on hydroacousticsrelated technology, and are coordinated with
other subsea activities at Kongsberg
Maritime. Otherwise, Kongsberg Maritime
has offices at two locations on the east
coast, i.e. Nova Scotia and Newfoundland. All units are engaged in sales and customer
support.
Defence activities are represented by
Gallium Visual Systems Inc. in Ottawa. The
company is well-known for its map graphics
tool for military command and control
systems.
Kongsberg Protech Systems opened
a new factory in London, Ontario, in the
summer of 2011 for the production and
maintenance of the Protector weapons
control system.
Kongsberg Oil & Gas Technologies has a sales
and project office in Brazil.
Mexico
Kongsberg Maritime has set up a service
office in Mexico.
Antarctica
The Group’s jointly- and equally-owned
subsidiary Kongsberg Satellite Services has a
ground station for satellite data on Antarctica.
*) Approximate number of suppliers with sales of more than NOK 50 000 in 2011.
Other continents: About 20 suppliers.
Operating revenues from other regions/continents amounted to MNOK 184.
Kongsberg Oil & Gas Technology has established a company for sales and customer support in Perth, Australia.
KONGSBERG Corporate Social Responsibility Report 2011
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THEME
KONGSBERG IN ASIA
Exciting Asian markets
Asia is an important continent in terms of
KONGSBERG’s maritime operations and for the sale of
defence materiel. Local adaptation is the key to success.
Kongsberg Maritime and Kongsberg Oil & Gas Technologies
have production, sales, service and support offices in India,
Singapore, South Korea and China. We want to stay close
to the formidable Asian harbour and shipyard industry to be
able to offer the best possible service to our customers.
Kongsberg Norcontrol IT is also represented in Singapore
where it has major deliveries for vessel traffic monitoring.
The Group’s defence activities have operations and
projects involving tactical radio and communications systems in the United Arab Emirates, Kuwait and Saudi Arabia.
Varied background
Roughly 15 per cent of KONGSBERG’s 6 681 employees
work in Asia. The great variation in our business areas
means that we employ several different occupational
groups. Nineteen per cent of our employees in Asia have
master’s degrees, 37 per cent have bachelor’s degrees, and
21 per cent are technical personnel. Fifteen per cent are
production workers and 10 per cent are categorised as
‘other groups’.
KONGSBERG’s locations in Asia employ a total of 20.6
per cent women. These women account for 3.1 per cent of
all the employees throughout KONGSBERG.
When it comes to age, half our co-workers in Asia are
between ages 20 and 30, some 40 per cent are between
ages 30 and 50 and the rest of the workforce is over
age 50.
26
KONGSBERG Corporate Social Responsibility Report 2011
Local adaptation
International activities present different challenges than
ventures in Norway. Success is contingent on understanding and respect for local communities, politics, language
and cultural differences are key factors. This must take
place in keeping with KONGSBERG’s own Code of Ethics
and regulations. All KONGSBERG’s operations are required
to comply with the UN’s Universal Declaration of Human
Rights, the UN’s Principles for International Companies –
Global Compact, and international conventions for workers’
rights.
In late summer 2011, Kongsberg Maritime opened a
new factory in Zhenjiang, China, 250 km north of Shanghai.
China is the world’s third largest shipping nation, and it is
crucial for KONGSBERG to be near the major Chinese
shipyards and shipyards in neighbouring countries. About
MNOK 90 was invested in the new plant, and the location
is home to Kongsberg Maritime Jiangsu (KMCJ) and
Kongsberg Maritime China Zhenjiang (KMCZ).
KONGSBERG has a total of roughly 300 employees there.
The 20 000 m2 premises are used to produce electronic
switchboards, sensors and bridge consoles, etc. for the
maritime market. The investment was a major milestone for
the Group.
Customers, representatives of KONGSBERG and other
business partners attended the official opening ceremony.
The new offices in Mumbai, India, are another important
project. KONGSBERG cooperates only with large-scale,
well-known contractors which, like KONGSBERG, comply
with recognised guidelines for human rights and are
opposed to corruption and child labour.
compliance system which, among other things, bears the
main responsibility for verification and documentation of
our compliance with anti-corruption regulations. Our
routines and systems for compliance and follow up are
updated continuously. In 2011, we have, for example,
further developed our in-house rules on the use of agents
and market representatives, and for gifts and representation, as well as sponsorship. Anti-corruption is also on the
agenda when we follow up subcontractors.
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AREA OF FOCUS 2011–2012
ANTI-CORRUPTION
Sanctions
The Group did not record any breaches of the anti-corruption provisions in 2011. The same was true in previous
years, and the company has never been involved in any
kind of sanctions associated with corruption.
Our attitude
KONGSBERG is opposed to all forms of corruption.
Our attitude to corruption is clearly expressed in our
corporate Code of Ethics, and through our affiliation with
the UN Global Compact and the OECD’s Guidelines for
Multinational Enterprises, as well as our membership of
Transparency International.
Risk assessment
KONGSBERG operates in both the defence industry and
the oil and gas industry, which, according to Transparency
International, are two of the sectors that are most
susceptible to corruption. We make extensive use of agents
and market representatives. The use of third parties is
generally known to imply a high risk of corruption, so we
devote considerable attention to that part of our anticorruption programme in particular.
KONGSBERG’s anti-corruption efforts
Our Code of Ethics describes several areas of importance
for preventing corruption in our business activities.
Over the past two years, we have built up a corporate
TRANSPARENCY
INTERNATIONAL
KONGSBERG has been a member of
Transparency International (TI) since 2007.
Transparency International is a nonpartisan
organisation intended to fight corruption at
the national and international levels. The
organisation was established in 1993 and is
based in Berlin.
Through national chapters in 90 coun­
tries, the authorities are encouraged to
implement efficient legislation and policies
against corruption. Along with international
2012
In 2012, we will focus on systematic risk assessment,
planning and reporting. We will also further develop our
training programme, and carry out spot checks to confirm
that we are compliant with all internal and external
regulations.
The corporate Board and executive management devote
considerable attention to this work.
Corruption
• Corruption poses a threat against the rule of law, democracy
and human rights because corruption undermines ethical and moral values.
• In a global perspective, corruption is the greatest impediment
to social and economic development in the third world.
• Corruption creates discrimination and impedes social justice.
• Corruption undermines fair competition (skews competition).
• Corruption can cause enterprises to suffer direct financial losses
and it can damage their reputations”.
Source: The National Authority for Investigation and Prosecution
of Economic and Environmental Crime in Norway (Økokrim)
organisations, TI aspires to ensure tran­s­
parency in international business transactions.
TI aspires to enhance the general public’s
awareness of corruption and to foster
popular resistance to corruption. The org­
anisation’s corruption indices are recognised
as being systematic and verifiable. Member­
ship of TI is open to all those who support
initiatives to reduce corruption.
Transparency International-Norway
(TI-Norway) is the Norwegian chapter of
Transparency International. Founded in 1999,
TI-Norway has the same paramount
objectives as the rest of the organisation.
The Norwegian chapter is funded by
membership dues, support from the State
and support from business and industry.
KONGSBERG participates in a survey
regarding ethics and compliance programmes for the defence industry. This is
conducted under the auspices of
Transparency International UK’s Defence and
Security Counter-Corruption Programme.
KONGSBERG Corporate Social Responsibility Report 2011
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AREA OF FOCUS 2011–2012
SUPPLIERS
Corporate responsibility in the supplier chain is being
given increasingly more attention and importance. This
responsibility normally encompasses suppliers’ positions
on ethics, human rights, workers’ rights, the environment and anti-corruption. We are of the opinion that
systematic, good work with corporate responsibility in
the supplier chain is a moral responsibility. At the same
time, it mitigates our risk and improves the quality of our
products.
The international trend is to take more responsibility for
ensuring that the entire value chain honours an enterprise’s
standards. KONGSBERG also follows this trend. However,
there are often practical and financial constraints on how
far down the value chain it is possible for an individual
enter­prise to QA its suppliers. Many companies meet this
challenge by setting standards for the first link in the
supplier chain, then requiring that link to set similar
standards for its first link, and so on. We also take this
approach.
In 2010, we embarked on a programme to develop
routines and processes to follow up suppliers with a view to
corporate social responsibility. Our goal in this area has
been to conduct audits and maintain a dialogue with our
28
suppliers about improvement measures, if necessary. We
have drawn up guidelines we have called ”Principles for
Supplier Conduct”, which apply to all our suppliers. The
principles are a point of departure for ensuring safe
working conditions, that employees are treated with
respect, that businesses operate in an environment-friendly
manner, and that this all takes place in compliance with
internationally respected principles for business ethics.
In addition, forms have been compiled for self-declarations associated with the themes discussed in the Supplier
Conduct Principles, procedures for risk assessments and
procedures for auditing suppliers. We have not yet reached
all the targets set out in our plans for 2011, but this work
will continue to be in focus in 2012. We emphasise that we
aspire to cooperate with suppliers as regards any challenges related to corporate social responsibility. We strive
to ensure that elements that do not meet the standards to
which we aspire will be adapted and improved through
dialogue.
So far, we have conducted five special audits related to
corporate social responsibility. The audits were conducted
in Norway, Germany and China. We have largely relied on
independent experts working in collaboration with our own
resources. This has been useful training for us and for the
suppliers involved. The feedback from suppliers has all been
positive.
More cooperation
There is a trend for more customers, as well as competitors, to enter into collaboration with suppliers and NGOs to
satisfy common requirements and carry out joint audits.
This builds expertise, enhances quality and ensures that
processes are implemented more rationally and efficiently.
We consider this a positive trend.
2012
In 2012, we will continue to develop our processes and
follow-up routines related to corporate social responsibility
in the supplier network.
AUDITS WELL
RECEIVED
China participated, and special expertise was
brought in from Det Norske Veritas in China.
It is crucial for KONGSBERG to have reliable
suppliers. In 2011, Kongsberg Maritime
conducted pilot audits aimed at corporate
social responsibility on two major suppliers:
The electronics manufacturer Norautron,
headquartered in Horten, and the German
software-maker M&M Software. The audits
were conducted at the head offices in
Norway and Germany and at the companies’
offices in China. Representatives of
Kongsberg Maritime in both Norway and
Working to improve conditions
The audits took their point of departure in a
systematic review of our principles and
expectations, and assessed how the com­
panies satisfied them. The principles are
comprehensive, addressing standards for
everything from opposition to corruption and
violations of human rights to the existence
of environmental management systems. The
purpose of the pilot audits was primarily to
communicate our expectations to suppliers
and, in collaboration with them, to identify
KONGSBERG Corporate Social Responsibility Report 2011
and remedy any deviations. In addition, the
pilot audits were used to build up in-house
expertise about how audits related to
cor­porate social responsibility should be
conducted, how suppliers should conform
with the principles and how this should be
followed up. The audits have been instructive for KONGSBERG and the suppliers. The
companies have reported that the audits
afforded them better insight into their own
organisations, and that they will now introduce improvement measures in the areas in
which non-conformances were found.
KONGSBERG takes a systematic approach to Health,
Safety and the Environment (HSE). Our work is
anchored in our global People Policy. One important
factor for promoting HSE work is the involvement of
management and employees.
The main principle is that HSE is to be preventative,
promoting job satisfaction and a good working environment, while maintaining low rates of sick leave and avoiding
injuries and accidents.
KONGSBERG has a steadily increasing number of
employees outside Norway. This requires additional
attention to and insight into problems related to health,
safety and environmental issues in the countries in which
we operate. Safety, security and crisis contingency are
taken especially seriously in connection with travel and
visits to other countries.
The organisation of HSE work
HSE work is organised through formal bodies made up of
representatives of management and the employees. Each
business area, as well as the Group’s other entities, has a
cooperation structure to deal with legislative and regulatory
requirements, as well as with operational needs.
Responsibility for HSE rests with management, and is
a line responsibility, in the individual units.
HSE data is collected from the business areas and
reported to corporate management and the Board of
Directors quarterly. The data are also reported to the
appropriate authorities.
Norway
In Norway, the formal bodies are the works council, joint
consultative committees, divisional committees and work­
ing environment committees. In addition, ad hoc com­
mittees are created for special projects. Management and
the employees each have 50 per cent representation on
these committees. The Group has a special the HSE Forum
that is responsible for coordinating HSE work. The Forum
consists of representatives of all business areas and the
Corporate Centre.
The Works Council is executive management’s meeting
place with trade union representatives, and a forum for
exchanging information and discussing items that involve
two or more of the Group’s operations. The quarterly HSE
reports are reviewed at Works Council meetings.
At the international level
HSE work at the international level is based on our global
HR policy, as well as on legislation and regulations in the
relevant countries. Most countries require that a designat­
ed HSE manager be assigned responsibility for ensuring
compliance with local and national legislation and regulations. Reporting routines from the foreign companies have
been further developed in recent years and the figures for
absence due to illness and on the job injuries from the
international offices are included in the HSE reports.
Preventative measures
All employees are to be aware of the enterprise’s HSE
system and are routinely to be kept apprised of any
changes. Emphasis is attached to cooperation and joint
efforts for reaching the enterprise’s HSE goals. Our
employees should not accept terms of employment that
put their lives or health in jeopardy.
One fundamental principle is that KONGSBERG is a
serious, long-term and good employer in all areas related to
health, safety and the environment. This means that our
local schemes are to be at least on a par with the average
in the countries in which we operate.
Our Norwegian enterprises have well-developed HSE
systems. All employees in Norway have access to company
health services. This varies in accordance with local
practices and legislation for our foreign business activities.
KONGSBERG takes preventative measures to protect
our employees and their families against serious diseases
and epidemics. We adapt to the national public health
service and supplement it through special agreements as
needed. Necessary vaccination programmes, preventative
check-ups and emergency preparedness for extraordinary
measures are part of our agreements with the company
health service. Employees stationed abroad, their families
and personnel travelling on business are given special
attention by the company health service, offered special
seminars and get expanded insurance coverage.
KONGSBERG has no activities in countries that call for
special measures to protect employees and their families.
KONGSBERG has established a ‘Global Travel Council’.
Based on information available from defined sources, this
forum evaluates where and how employees can and will
travel as safely as possible all over the world. The evaluations are based on the Ministry of Foreign Affairs’
recommendations and information about the individual
countries obtained from our partner International SOS. We
have routines for how our employees should conduct
themselves on business trips. Travel may not be advised or
even be prohibited for political, financial, environmental or
health-related reasons.
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
OUR
EMPLOYEES
Formal agreements with the trade unions
In Norway, HSE is largely covered by collective wage agree­
ments and long-standing legislation. Where this is not
en­shrined in formal agreements at our foreign undertakings, all personnel are given training, personal safety
equipment and the opportunity to refuse work they
perceive as risky. There are local HSE committees, periodic
inspections in which employee representatives take part,
and specially adapted systems for reporting errors and
deficiencies. Mishaps or accidents will always be investigated to determine the causes and find opportunities for
improvements. It is essential that employees who are
familiar with the duties in question and local conditions take
part in these investigations.
KONGSBERG Corporate Social Responsibility Report 2011
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Absence due to illness
Absence due to illness (as a percentage of the number of
available hours) was 2.2 (2.5) per cent for the Group in
2011. This is in furtherance of a favourable trend in recent
years. For the Norwegian companies, the figure is 2.8 (2.9)
per cent, which is well below NHO’s report that the national average for the manufacturing industry was 6.2 (6.9)
per cent in Q3 2011. We see that a good working environment, interesting work and good development opportunities have a favourable impact on absence due to illness.
Injuries
Injuries and near-accidents are registered in the individual
unit and then reported by the business areas to the Group
on a quarterly basis. Over the past year, efforts have been
made to promote uniform, consistent and complete report­
ing throughout the Group. The figures for 2011 cover the
whole Group, while the figures for 2010 only cover the
Norwegian operations.
In 2011, 87 injuries and near-accidents were recorded
among employees and contractors. Of that number, 46
were near-accidents. Of the recorded injuries, three led to
lost time, while 38 were minor injuries that did not involve
lost time. The number of injuries, with and without lost
time, per million man-hours (TRI) is estimated at 1.67.
Lost time injury days totalled 11. This corresponds to an
estimated Injury Severity Rate (ISR) (lost time days per
million man-hours worked) of 1.07. No occupational diseas­
es or work-related fatalities were recorded in 2011.
Employees, the working environment and employment
Collective wage agreements
In Norway, all employees are covered by collective wage
agreements and 54 per cent of our employees in Norway
are unionised. KONGSBERG recognises our employees’
freedom of association and right to engange in collective
bargaining in keeping with the ILO conventions. In the
event of a conflict with local legislation, local legislation
shall take precedence.
Local employment
Each individual business hires people locally with the
assistance of local managers. In the establishment phase,
we have decided to use Norwegian executives for our
international operations, while the other members of the
management teams are largely local.
Starting salary
The Group’s starting salary follows the average in the local
markets in which we do business.
Human resources development
The Group offers an extensive range of further and
continuing education through a combination of in-house
and external programmes and courses. These include
technical courses as well as leadership development
measures. Our employees’ career paths should be able to
be lateral as well as vertical throughout the Group.
30
KONGSBERG Corporate Social Responsibility Report 2011
Life-cycle policy at KONGSBERG
KONGSBERG’s overarching life-cycle policy applies to all
employees world-wide. The Group will help ensure that all
employees have meaningful work up until retirement. This
is done inter alia through flexible arrangements adapted to
different stages of life, and efforts shall be made to transfer
knowledge from senior to more junior employees.
Attractive employer
One prerequisite for attaining the Group’s goal of growth
is our ability to attract and retain qualified labour. For that
reason, we are working to strengthen our position in the
labour market and to be at the forefront of the competition
for the best and the brightest.
To maintain KONGSBERG’s standing as an attractive
em­ployer, all units are to have a defined recruitment pro­
cess for professional selection of applicants and a respon­s­
ible procedure for dealing with those who are not hired.
KONGSBERG cooperates with university colleges and
universities in Norway. We participate in ca­reer days, give
company presentations, invite classes to visit our enterprises, sponsor selected student projects for students who
would like to write their theses in collaboration with the
Group, and offer different types of summer jobs.
In collaboration with other enterprises in Kongsberg,
Buskerud University College and the Norwegian Centre
of Expertise, the Group has developed a master’s degree
programme in Systems Engineering, where the students
work in paid part-time positions in one of the enterprises.
Along with other enterprises in Kongsberg,
we offer a unique training programme for apprentices.
Each year, Universum conducts a survey that leads to
a ranking of Norway’s most popular employers among
seasoned engineers and students. In the technology
category, KONGSBERG ranked number 4 (10) among the
seasoned engineers and number 5 (12) among engineering
students in the 2011 survey.
Leadership at KONGSBERG
We are of the opinion that leadership involves achieving
results through others. Success is based on a combination
of good leadership and dedicated co-workers. A leader
demonstrates leadership based on our values, the Code of
Ethics and leadership principles. Against this background,
we have developed our leadership development process
under the brand name [email protected]
[email protected] was developed to clarify and
quality-assure processes for setting goals, following up
goals and making evaluations, as well as for ensuring directed development of the Group’s overall global leadership
capacity.
Corporate Executive Management consists of 10
individuals, including one woman. We strive to raise the
percentage of women, and consider special measures to
increase the number of women in management positions at
all levels.
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15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
THEME
HUMAN RIGHTS
The Group’s more intense international efforts expose
us to problems related to human rights, either directly
through our own businesses or indirectly through our
value chain. This means that we must take precautions
so that we do not come into conflict with prevailing
human rights.
KONGSBERG supports human rights through our affiliation
with the UN Global Compact and the ILO (International
Labour Organisation) conventions. The latest revision of
our Code of Ethics provides further information about
human rights standards.
The following details are related to some of the human
rights indicators required by GRI (Global Reporting
Initiative).
Auditing own businesses
In 2012, audits are planned for our own businesses to check
our compliance with the international standards for
corporate social responsibility and human rights to which
we subscribe.
Suppliers
We have drawn up a special Code of Conduct for our
suppliers, and human rights is a key topic. We will follow up
human rights issues in connection with self-declarations
and audits.
Training
KONGSBERG has organised special training programmes
for employees who will be exposed to human rights issues.
This will be a focal point once again in 2012.
Discrimination
There have been no reports of episodes or incidents
involving discrimination. Among other things, our Code of
Ethics states: “We do not accept discrimination of any
kind.” Further, it states that we are clearly opposed to any
kind of human trafficking. This includes the procurement of
sexual services.
Child labour and compulsory labour
The Group’s activities are of such a nature that issues
related to child labour and forced and compulsory labour
are of little relevance to our own operations. We are
working to survey the situation in the value chain. There
have been no reports of cases involving these topics.
The use of security personnel at the international level
Thus far, our international operations have not been of the
type where it has been necessary to use special security
personnel to ensure the safety of our employees.
Indigenous rights
The Group has not been involved in violations of indigenous
rights.
“KONGSBERG supports human rights
through our affiliation with the UN Global Compact and the ILO conventions.”
KONGSBERG Corporate Social Responsibility Report 2011
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AREA OF FOCUS 2011–2012
DIALOGUE WITH STAKEHOLDERS
Interaction with those
around us
KONGSBERG is dependent on having good interaction
and dialogue with our stakeholders. In 2011, we further
systematised this contact.
KONGSBERG would like to set a good example and
perform our corporate social responsibility in a satisfactory,
forward-looking manner. As a link in our work with
corporate social responsibility, it is important for us to
maintain a good dialogue with the State of Norway, our
majority shareholder. KONGSBERG meets with the
Ministry of Trade and Industry on a regular basis to discuss
how we handle our corporate social responsibility.
Many are affected by our operations
The ability to understand and accommodate the needs of
our other owners and investors, our employees, customers,
suppliers and the trade unions is a prerequisite for
profitable, socially responsible operations. Consequently,
KONGSBERG has regular meetings with these groups to
learn more about their expectations of us and our activities.
This work was further systematised in 2011.
32
KONGSBERG Corporate Social Responsibility Report 2011
This contact takes place through formal and informal meetings alike. We want to know what our stakeholders think of
us. If they see problems associated with the Group’s
activities, we want to know as soon as possible so that we
can initiate the necessary remedial measures.
Dialogue meetings related to CSR in 2011
CSR is often a topic on the agenda of the many meetings
all sections of KONGSBERG have with our stakeholders.
In addition, in 2011, specific meetings to discuss CSR were
held with the Norwegian Ministry of Defence, Amnesty
International Norway, the international anti-­corruption
organisation Transparency International, the business
analyst firm APG Sundal Collier and the Norwegian
Confederation of Trade Unions (LO). Our ambition for 2012
is to further strengthen this interaction. Smooth interfacing
with those affected by KONGSBERG’s business activities
is an important element that will enable us to continue to
maintain sustainable, socially responsible operations in the
years ahead.
KONGSBERG helps add value and contributes to economic
development for local communities wherever we have
operations. The Group aspires to be an integral part of
these communities. This means we get involved with our
employees’ interests, and by supporting good causes that
can bring growth and development to local communities.
Internal
KONGSBERG’S social responsibility is first and foremost to
its employees. It is important to us that we provide a good
place of work where co-workers can develop and work in a
safe, supportive and motivating atmosphere.
External
KONGSBERG gets involved in many of the local com­
munities in which we operate. Through gift funds and other
allocations, we have provided support for sports, culture
and humanitarian organisations for many years. In keeping
with KONGSBERG’s sponsorship strategy, such funding is
evenly divided among these three groups. Sponsorship is to
be granted in accordance with principles that target
predictability, transparency and equal treatment.
Sports
The Group provides generous support for sports for
children and young people. This is a good cause and we will
continue to support it.
Culture
KONGSBERG is the main sponsor of the
Gloger Festival. The Gloger Festival is a
chambre music festival organised in
Kongsberg in late January each year.
Culture
KONGSBERG provides support for cultural events in local
communities in which we operate.
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CONTRIBUTING
TO GOOD CAUSES
Humanitarian organisations
KONGSBERG supports many different humanitarian
organisations both nationally and internationally. For several
years, the Group has had an agreement with SOS
Children’s Villages in Livingstone, Zambia. We support three
different projects in Rio de Janeiro, Brazil and we contribute
to a centre for children, young people and women who live
in the slums in Mumbai, India.
The Group also donates to the humanitarian work of the
Church City Mission in the city of Kongsberg. The organisa­
tion aspires to improve the lives of substance abusers.
“We get involved with
our employees’ interests,
and good causes that can benefit
local communities.”
Bola pra Frente, Brazil
The school project Bola pra Frente in Rio de
Janeiro celebrated its 10th anniversary in
2010. The goal of the project is to get children
and young people off the street by providing
schooling and a better start in life. In 2011, 822
children and young people were involved in
the project, and it is growing continuously.
SOS Children’s Village
KONGSBERG has financed the construction
of a family house in the Children’s Football
Village in Livingstone, Zambia. The goal is to
give the children care, safety, happiness and
stimulation.
KONGSBERG Corporate Social Responsibility Report 2011
33
CLIMATE AND
THE ENVIRONMENT
KONGSBERG continued to grow in 2011, hiring roughly
1 000 new employees, setting up new international
offices and opening new factories. This means that our
overall footprint on the outdoor environment has grown.
Over the past several years, we have worked systematically to report data associated with energy consumption,
waste treatment, chemical consumption and greenhouse
gas emissions. This information has made us aware of the
challenges we face, and enabled us to make improvements.
The Greenhouse Gas Protocol is an international
standard for reporting on greenhouse gases (GHGs). The
standard sets out three levels for reporting. As from 2011,
KONGSBERG is reporting emissions from the consumption
of energy on all three levels. This includes direct emissions
of greenhouse gases from our own production (level 1)
and indirect emissions from the sources from which we
buy external energy (level 2). Level 3 includes emissions
from flights, and in the years to come, these figures will
also include other indirect emissions resulting from our
activities.
Global warming is one of the most serious threats facing
the Earth. Accordingly, in 2011, the Group drew up a climate
strategy to reduce its emissions and to prepare for the
consequences of the changes taking place. The strategy
was formally discussed and adopted in the early half
of 2012.
The Group has not experienced any serious incidents
related to pollution in 2011.
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INTRODUCTION
THE LIMITATIONS
OF THE REPORT
“We are determined
to reduce our
footprint on the environment.”
We report only on companies in which KONGSBERG owns
50 per cent or more.
The environmental data include all our Norwegian units, as
well as all our production units and the largest offices abroad.
Units acquired in 2011 and new factories established in 2011
are not included in the data.
KONGSBERG Corporate Social Responsibility Report 2011
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AREA OF FOCUS 2011–2012
CLIMATE STRATEGY
Global warming affects KONGSBERG. Although our
operations create only modest emissions to air and
water, they do generate emissions of greenhouse gases.
We also have operations in countries and regions that
can expect to be hard hit by climate changes.
KONGSBERG’S growth in recent years has led to higher
energy consumption and related emissions of greenhouse
gases, both in actual figures and in relative terms, measured as MWh/MNOK. The Group’s goal of long-term
sustainable development featuring a balance between
financial results and corporate social responsibility, means
that we must help to prevent global warming by reducing
greenhouse gas emissions. Cutting greenhouse gas
emissions is essential for several reasons:
•We have a moral responsibility to future generations to
leave the earth in a sustainable state.
• In a more operational perspective, it is important for
KONGSBERG to have a ‘licence to operate’, meaning that
we are accepted and allowed to engage in operations by
our stakeholders. This is rendered visible, for example,
through:
-The authorities and society expect that as social
players, in Norway and abroad, we take the threat of
global warming seriously.
- Our owners expect us to take this threat seriously and
to minimise the risk that future regulations and
expenses will have an adverse impact on our results.
- Our customers expect a good environmental profile
from their suppliers, and that we can supply products
KONGSBERG’s
CLIMATE STRATEGY
Purpose
KONGSBERG shall achieve its long-term
business objectives in a manner that con­
tributes as little as possible to global warm­
ing. We shall accomplish this by striving to:
• reduce direct and indirect greenhouse gas
emissions from own operations.
• find product solutions that can reduce our
customers’ greenhouse gas emissions.
• use environmental profiles as one of several
assessment criteria when choosing
suppliers.
Choices
KONGSBERG will work systematically to
reduce energy consumption and emissions of
greenhouse gases, with special focus on
products, infrastructure and transportation.
36
KONGSBERG Corporate Social Responsibility Report 2011
and services that help them reduce their own energy
consumption and greenhouse gas emissions.
•Lower energy consumption reduces our direct expenses
and makes us less vulnerable to rising energy prices and
fluctuations in the energy markets.
• Lower emissions of greenhouse gases make us less
vulnerable to any future regimes for pricing of such
emissions ( taxation, quota regimes or the like.).
The Group’s Board decided in 2010 that a climate strategy
should be drawn up.
In 2011, we drafted a strategy for the reduction of
greenhouse gas emissions, and set targets for the period
up to and including 2015. The strategy and the targets
were discussed and approved by corporate executive
management.
Products
KONGSBERG shall actively strive to find
innovative product solutions that can reduce
our customers’ energy consumption and
emissions of greenhouse gases.
KONGSBERG shall actively strive to
improve the energy efficiency of our
production and, by so doing, reduce
emissions of greenhouse gases from our own
operations.
KONGSBERG shall use environmental
profiles and make active efforts to reduce
energy consumption and emissions of
greenhouse gases as an assessment criterion
when choosing suppliers and partners. Infrastructure
KONGSBERG shall actively work to make
buildings and other infrastructure as energy
efficient as possible. In connection with new
buildings and the upgrading of buildings,
importance will be attached to low energy
consumption and the use of renewables.
Transportation
Insofar as practical, KONGSBERG shall cut
back on the need to transport personnel and
material, and choose transport solutions that
are energy efficient and have low emissions
of greenhouse gases.
KONGSBERG’s energy efficiency target
from 2012 to 2015
Identify measures for reducing greenhouse
gas emissions by 7 per cent for the Group as
a whole (relative to sales). The business
areas have undertaken a commitment to
accomplish this from 2012 to 2015.
The Group maintains that there is more
potential for reducing its greenhouse gas
emissions and it has set a relative target
reducing greenhouse gases from 2012 to
2015 at a minimum of 10 per cent.
The Group will continue to identify and
implement further initiatives to reduce its
direct and indirect emissions of greenhouse
gases.
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ENVIRONMENTAL ACCOUNTS FOR 2011
The environmental accounts give an overview of
KONGSBERG’s consumption of energy and chemicals,
and its production of waste and CO2. They encompass
all Norwegian units, all production units and selected
offices abroad.
ENERGY
In connection with production and office activities, KONGSBERG
consumes energy in the form of electricity, district heating, gas and fuel
oil. Kongsberg Technology Park generates district heating for
enterprises located in the technology parks in Kongsberg. District
heating is produced using electricity, fuel oil, gas and heat recovery. In
2011, 53 per cent of the district heating was delivered to units in
KONGSBERG, while the remainder was delivered to other enterprises
in the technology park.
In 2010, a new central heating plant was built in Kongsberg
Technology Park for the recycling of residual heat from the cooling
water from the technology parks and wastewater from Kongsberg’s
municipal purification plant. This helped ensure that 47 per cent of the
district heating produced came from heat recovery.
KONGSBERG’s total energy consumption was about 5 per cent higher
in 2011 than in 2010. The main reason is that 2011 included the consumption of electricity for making compressed air and remote cooling for
Kongsberg Technology Park, accounting for roughly 13.7 GWh. Excluding
this consumption, there was a decline of roughly 8 per cent for
KONGSBERG from 2010 to 2011, i.e. from 103.9 GWh to 95.7 GWh.
Relative energy consumption increased from 6.7 to 7.2 MWh per
MNOK (Figure 1).
ENERGY CONSUMPTION
GWh
ENERGY CONSUMPTION
GWh 120
100
7.2
7.2
Oil and gas
80
District heating
60
Electricity
40
6.7
MWh/MNOK
20
0
2009
2010
2011
FIGURE 1: Total energy consumption (GWh) for KONGSBERG. District heating
includes both the business areas’ own consumption and district heating sold by
Kongsberg Technology Park to undertakings outside of KONGSBERG.
The figures include electricity, oil and gas used to produce district heating.
Business area
Kongsberg Maritime
Kongsberg Oil & Gas Techn.
Kongsberg Protech Systems
Kongsberg Defence Systems
Kongsberg Teknologipark AS 1)
Total
Change,
past year
2011
2010
2009
(3%)
(12%)
(5%)
(7%)
40%
5%
25.7
1.2
9.0
39.1
34.4
109.4
26.5
1.4
9.5
42.1
24.5
103.9
24.2
1.3
8.5
44.4
21.6
100.0
1) Includes the production of district heating provided to enterprises outside
KONGSBERG. The 2011 figure includes the consumption of electricity for
making compressed air and remote cooling, accounting for roughly 13.7 GWh.
KONGSBERG Corporate Social Responsibility Report 2011
37
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CO2 EMISSIONS
KONGSBERG’s CO2 emissions have been calculated as recommended
by the Greenhouse Gas Protocol published by the World Business
Council for Sustainable Development (WBCSD) and World Resources
Institute (WRI). Since 2010, emissions from national and international
flights booked in Norway have been included. These trips account for a
substantial percentage of KONGSBERG’s total travel and, in the years
ahead, efforts will be made to include flights booked outside of Norway.
The environmental accounts include the following sources of CO2
emissions:
• Direct emissions (Scope 1): Emissions from the use of fuel oil and
gas for heating buildings and producing district heating delivered to
companies outside of KONGSBERG.
• Indirect emissions from electricity (Scope 2): Emissions from the
consumption of electricity or district heating from external suppliers
and from district heating delivered by Kongsberg Technology Park
to KONGSBERG units.
• Emissions from flights (Scope 3): Emissions from national and
international flights booked in Norway in 2010 and 2011.
Emissions of CO2 climbed by 10 per cent from 2010 to 2011. The main
reason for this was that emissions from air travel have increased by
nearly 40 per cent. By the same token, Kongsberg Technology Park
reduced its emissions significantly by reducing the use of fossil fuels for
the production of district heating. Emissions per produced unit were
reduced from 109 grams of CO2 per kWh in 2010 to 82 grams of CO2
per kWh district heat provided in 2011.
EMISSIONS OF CO2
Metric tonnes
EMISSIONS OF CO2
Metric tonnes
25 000
1.5
1.3
20 000
15 000
Air travel
Change,
past year
Business area
2011
2010
2009
Direct emissions
0.9
Indirect emissions
10 000
t CO2/MNOK
5 000
0
2009
2010
2011
FIGURE 2: Emissions of CO2 (metric tonnes), KONGSBERG. Emissions from district
heating delivered by Kongsberg Technology Park to KONGSBERG are shown as
indirect emissions, while emissions from district heating delivered by Kongsberg
Technology Park to enterprises outside KONGSBERG are shown as direct emissions.
Kongsberg Maritime
Kongsberg Oil & Gas Techn.
Kongsberg Protech Systems
Kongsberg Defence Systems
Kongsberg Teknologipark AS 1)
Total
17%
59%
25%
5%
(32%)
10%
10 472 8 979
3 387
1 015
638
217
3 172 2 543
1 918
5 818 5 547
4 125
1 805 2 641
3 333
22 282 20 348 12 980
1) Includes emissions from district heating provided to enterprises outside
KONGSBERG
WASTE
KONGSBERG generates waste from production and from office
activities. Waste volumes are part of KONGSBERG’s in-house
environmental reporting. The report covers generated waste broken
down by category of waste and waste for recycling divided by recycling
fractions. Kongsberg Technology Park makes efforts to increase source
separation among the companies located there.
In 2011, the total volume of KONGSBERG’s waste was roughly 7 per
cent lower than in the preceding year. The relative waste production
increased from 114.3 kg per MNOK in 2010 to 108.4 kg per MNOK in
WASTE
Metric tonnes
2011. The increase in hazardous waste is ascribable to increased focus on
this at Kongsberg Defence Systems including waste temporarily stored
from previous years.
For the waste reported in 2011, the percentage of source separation
for KONGSBERG as a whole was roughly 77 per cent, compared with 51
per cent in 2010. At Kongsberg Technology Park, the percentage of
source separation was 94 per cent in 2011, compared with 86 per cent in
2010.
WASTE
Metric tonnes 2 000
114.3
Recycled waste
1 600
Business area
Change,
past year
2011
2010
2009
(10%)
(78%)
(31%)
86%
89%
(7%)
901
11
194
490
44
1 640
1 142
52
280
274
23
1 772
768
23
270
382
30
1 473
Hazardous waste
1 200
108.4
800
106.6
Residual waste
Kg/MNOK
400
0
2009
2010
Kongsberg Maritime
Kongsberg Oil & Gas Techn.
Kongsberg Protech Systems
Kongsberg Defence Systems
Kongsberg Teknologipark AS
Total
2011
FIGURE 3: Total waste production (metric tonnes) at KONGSBERG.
2 000
38
KONGSBERG Corporate Social Responsibility Report 2011
1 600
Resirkulert avfall
Farlig avfall
1 200
Restavfall
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CHEMICALS
KONGSBERG uses environment-unfriendly and hazardous chemicals in
certain parts of its production. The consumption of chemicals is included
in KONGSBERG’s in-house environmental reporting, which covers
chemicals that are hazardous to health and the environment, as well as
other types of chemicals.
Problems have been discovered with certain KONGSBERG units’
reporting on chemicals for recent years. The reported amounts of
chemicals used should therefore still be seen as estimates. Efforts will
also be made to improve reporting routines for the consumption of
chemicals in 2012.
CONSUMPTION OF CHEMICALS
Metric tonnes
CONSUMPTION OF CHEMICALS
Metric tonnes
70
3.8
60
50
Hazardous to
health and
the environment
3.7
40
30
20
10
Other
Kg/MNOK
3.5
Business area
Kongsberg Maritime
Kongsberg Protech Systems
Kongsberg Defence Systems
Total
Change,
past year
2011
2010
2009
(88%)
(70%)
93%
0%
3
2
52
57
23
8
27
57
31
8
9
48
0
2009
2010
2011
FIGURE 4: The consumption of chemicals (metric tonnes) by KONGSBERG.
KONGSBERG Corporate Social Responsibility Report 2011
39
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THEME
ENERGY CONSERVATION
Kongsberg Technology Park
takes responsibility for energy
conservation
Energy purchases for Kongsberg Technology Park declined
by 47.7 GWh from 2000-2002 to 2011. This is equivalent to
the energy it takes to heat 2 384 single-family dwellings.
The reduction was accomplished by traditional conservation measures in buildings, and by restructuring energy
production based on heat pumps and new buildings.
For KONGSBERG, it is important to take responsibility
for more environment-friendly use of energy. This has also
turned out to be profitable in financial terms.
40
KONGSBERG Corporate Social Responsibility Report 2011
The company Enova works with environment-friendly
restructuring of energy use and energy production in
Norway through financing and consultancy. From 2003 to
today, Kongsberg Technology Park has implemented five
projects with support from Enova. The projects encompass
more use of renewable energy and more efficient heating
of buildings. During the interim, recycling through heat
pumps increased from almost 0 to some 17 GWh for 2011.
The sorting of waste is also an important measure for more
environment-friendly operations. Waste from the Technology Park is sorted into 17 different categories. The
percentage of source separation for 2011 was 94 per cent.
Working for a better
environment
KONGSBERG’s products help make the world
a better place.
Our satellites are used to monitor changes in the environment the world over, and our echosounders monitor
changes on the seabed. KONGSBERG also makes systems
that facilitate more environment-friendly, energy-efficient
operations at sea, i.e. ‘green shipping’. We work continuously to develop and improve these products, and we also
take part in other joint projects aimed at creating more
environment-friendly, sustainable development. In the
following, you can read about the government project
‘BarentsWatch’ and the project ‘The Integrated Environmental Monitoring System (IEM)’ that KONGSBERG has
with Statoil, among others.
BarentsWatch – information portal for the High North
What will happen to the fish when ocean temperatures rise
and vessel traffic increases in the High North? Software
from KONGSBERG is helping to find the answer.
The High North is referred to as the world’s largest food
supply, at the same time as these areas are attractive for
vessel traffic and probably conceal one-quarter of the
world’s undiscovered oil reserves. But how is underwater
life actually affected by human activity? By combining
historic and real-time data, the State information portal
BarentsWatch will be able to answer this. Thus far,
27 government agencies have joined the project.
The project is a major milestone for KONGSBERG.
Kongsberg Spacetec in Tromsø makes the system that
ensures that data from various sources of information are
linked in a user-friendly manner. The open part of the
BarentsWatch portal is scheduled for kick-off in May this
year.
BarentsWatch could be an important tool for the
sustainable exploitation and development of the extremely
vulnerable and attractive areas in the cold north.
Sustainable business operations are crucial for
KONGSBERG. We believe that initiatives in the High
North must take account of the environment, oil and gas
production and fisheries.
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THEME
ENVIRONMENT-FRIENDLY PRODUCTS
IEM - See, hear and smell under water
KONGSBERG also works with business and industry to
monitor our planet. In close cooperation with Statoil,
KONGSBERG is developing an innovative system for
environmental monitoring under water. The project is called
Integrated Environmental Monitoring (IEM). The goal is to
make oil and gas production in vulnerable areas safer by
monitoring them in real time. This would allow spills to be
discovered as early as possible.
Today it is common to monitor the environment by boat
every third year and to get a report nine months later. This
furnishes good documentation on the state of the
environment, but does not give the operator much
opportunity to introduce measures early on to mitigate
adverse effects on the environment.
IEM is supposed to change all this. Using a number of
sensors, it will be possible to discover spills at a very early
point in time. By combining real-time environmental data
and operating data, it will be easier to discover leaks and to
act immediately. The sensing units can measure physical,
biological and chemical data. KONGSBERG will be
developing new and using existing technology to make a
fully integrated environmental monitoring system available
to other operators as well.
KONGSBERG Corporate Social Responsibility Report 2011
41
APPENDIX
GLOBAL REPORTING INITIATIVE
INDEX (GRI)
On the following pages, we list the GRI indicators with
references to where they are discussed in the report,
regardless of whether they are wholly or partially
answered relative to GRI. For a full description of the
individual indicator, see GRI’s website at
NR = Not relevant
NA = Not addressed
PA = Partially addressed
Indicator
1
1.1
1.2
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
4
4.1
42
A = Annual Report
See
page(s)
PROFIL
Strategy and analysis
Statement from the most senior decision-maker 4-6
of the organization about the relevance of
sustainability strategy
Description of key impacts, risks, and opportu- 4-6, 9, 14,
16-17
nities in relation to sustainability
Organizational profile
Name of the organization
Primary brands and products
Organization
Location of organization’s headquarters
Number of countries where the organization
operates
Nature of ownership and legal form
Markets served (including geographical breakdown, sectors served and types of customers/
benificiaries)
Key numbers
Significant changes regarding size, structure,
or ownership
Awards received in the reporting period
Report parameters
Report profile
Reporting period for information provided
Date of most recent previous report
Reporting cycle
Contact point for questions regarding the report
or its contents
Report scope and boundary
Process for defining report content
Boundary of the report
State any specific limitations on the scope or
boundary of the report
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,
and other entities that can significantly affect
comparability from period to period and/or
between organizations
Data measurement techniques and the bases of
calculations
Explanation of the effect of any re-statements
of information provided in earlier reports, and
the reasons for such re-statement
Significant changes from previous reporting
periods in the scope, boundary, or measurement
methods applied in the report
GRI content index
Table identifying the location of the Standard
Disclosures in the report
Third-party verification
Policy and current practice with regard to
seeking external assurance for the report
Governance, commitments, and engagement
Governance structure of the organization,
including committees under the highest
governance body
KONGSBERG Corporate Social Responsibility Report 2011
www.globalreporting.org. Deloitte has verified that our
Report on Corporate Social Responsibility is generally
consistent with GRI’s reporting principles and that our
report meets the requirements for level B+ pursuant to
the guidelines, cf. the Auditor’s Report, page 45.
Cover, 8
8
8
8
23-25
8
8, 23–25
2, 13
3
Indicator
4.2
4.3
4.4
4.5
4.6
4.7
4.8
None
4.9
3
2010
Annual
4.10
44
3
3, 35
3, 35
3, 35
3, 13,
37–39
3, 37–39
4.11
4.12
4.13
3, 37-39
4.14
4.15
3, 42–44
4.16
3, 45
12, A
4.17
Additional indicators are marked by (*)
Indicate whether the Chair of the highest
governance body is also an executive officer
State the number of members of the highest
governance body that are independent and/or
non-executive members
Mechanisms for shareholders and employees
to provide recommendations or direction to the
highest governance body
Linkage between compensation for members
of the highest governance body, senior managers, and executives and the organization’s
performance
Processes in place for the highest governance
body to ensure conflicts of interest are avoided
Process for determining the qualifications
and expertise of the members of the highest
governance body for guiding the organization’s
strategy on economic, environmental, and social
topics
Internally developed statements of mission
or values, codes of conduct, and principles
relevant to economic, environmental, and social
performance and the status of their implementation
Procedures of the highest governance body for
overseeing the organization's identification and
management of economic, environmental, and
social performance
Processes for evaluating the highest governance body's own performance, particularly with
respect to economic, environmental, and social
performance
Commitments to external initiatives
Explanation of whether and how the precautionary approach or principle is addressed by
the organization
Externally developed economic, environmental,
and social charters, principles, or other initiatives to which the organization subscribes or
endorses
Memberships in associations (such as industry
associations) and/or national/international advocacy organizatons in which the organization:
Has positions in governance bodies;Participates
in projects or committees; Provides substantive
funding beyond routine membership
Stakeholder engagement
List of stakeholder groups engaged by the
organization
List of stakeholder groups engaged by the organization Basis for identification and selection
of stakeholders with whom to engage
Approaches to stakeholder engagement, including frequency of engagement by type and by
stakeholder group
Key topics and concerns that have been raised
through stakeholder engagement, and how the
organization has responded to those key topics
and concerns, including through its reporting
See
page(s)
A
A
12, A
A
A
A
10, 16-17,
21
3, 12, A
A
16
16, 20
16, 20, 27
32
32
32
32
EC1
EC2
EC3
EC4
EC5
EC6
EC7
EC8
EC9
EN1
EN2
EN3
EN4
EN5
EN6
EN7
EN8
EN9
EN10
EN11
EN12
EN13
EN14
See
page(s)
Economic performance indicators
Management approach
Economic performance
Direct economic value generated and distribut­
ed, including revenues, operating costs,
employee compensation, donations and other
community investments, retained earnings, and
payments to capital providers and governments
Financial implications and other risks and
opportunities for the organization's activities
due to climate change
Coverage of the organization's defined benefit
plan obligations
Significant financial assistance received from
government
Market presence
Range of ratios of standard entry level wage
compared to local minimum wage at significant
locations of operation*
Policy, practices, and proportion of spending on
locally-based suppliers at significant locations
of operation*
Procedures for local hiring and proportion of
senior management hired from the local community at locations of significant operation
Indirect economic impacts
Development and impact of infrastructure
investments and services provided primarily for
public benefit through commercial, in-kind, or
pro bono engagement
Understanding and describing significant
indirect economic impacts, including the extent
of impacts*
Environmental performance indicators
Management approach
Materials
Materials used by weight or volume
Percentage of materials used that are recycled
input materials
Energy
Direct energy consumption by primary energy
source
Indirect energy consumption by primary source
Energy saved due to conservation and
efficiency improvements*
Initiatives to provide energy-efficient or renewable energy based products and services, and
reductions in energy requirements as a result of
these initiatives
Initiatives to reduce indirect energy consumption and reductions achieved*
Water
Total water withdrawal by source
Water sources significantly affected by withdrawal of water*
Percentage and total volume of water recycled
and reused*
Biodiversity
Location and size of land owned, leased,
managed in, or adjacent to, protected areas
and areas of high biodiversity value outside
protected areas
Description of significant impacts of activities,
products, and services on biodiversity in protected areas and areas of high biodiversity value
outside protected areas
Habitats protected or restored*
Strategies, current actions, and future plans for
managing impacts on biodiversity*
Indicator
EN15
4-6, 12, 16
2, 13–14, A
EN16
EN17
4–6, 17,
35–36
EN18
EN19
A
EN20
14
EN21
EN22
30 (PA)
EN23
EN24
NA
30 (PA)
EN25
NA
EN26
NA
EN27
4-6, 14,
16, 18-19,
35-36
38-39 (PA)
NA
EN28
EN29
13, 37
13, 37
37
EN30
40 (PA)
37, 40
(PA)
LA1
LA2
NA
NA
LA3
NA
LA4
NR
LA5
NR
LA6
NR
NR
Number of IUCN Red List species and national
conservation list species with habitats in areas
affected by operations,by level of extinction risk*
Emissions, effluents and waste
Total direct and indirect greenhouse gas emissions by weight
Other relevant indirect greenhouse gas emissions by weight
Initiatives to reduce greenhouse gas emissions
and reductions achieved*
Emissions of ozone-depleting substances by
weight
NOx, SOx, and other significant air emissions by
type and weight
Total water discharge by quality and destination
Total weight of waste by type and disposal
method
Total number and volume of significant spills
Weight of transported, imported, exported, or
treated waste deemed hazardous under the
terms of the Basel Convention Annex I, II, III,
and VIII, and percentage of transported waste
shipped internationally*
Identity, size, protected status, and biodiversity
value of water bodies and related habitats
significantly affected by the reporting organization’s discharges of water and runoff*
Products and services
Initiatives to mitigate environmental impacts of
products and services, and extent of impact
mitigation
Percentage of products sold and their packaging materials that are reclaimed by category
Compliance
Monetary value of significant fines and total
number of non-monetary sanctions for noncompliance with None environmental laws and
regulations registered transport
Transport
Significant environmental impacts of transporting products and other goods and materials
used for the organization's operations, and
transporting members of the workforce*
Overall
Total environmental protection expenditures and
investments by type*
LABOUR PRACTICES AND DECENT WORK
PERFORMANCE INDICATORS
Management approach
Employment
Total workforce by employment type, employment contract, and region
Total number and rate of employee turnover by
age group, gender, and region
Benefits provided to full-time employees that
are notprovided to temporary or part-time
employees, by majoroperations*
Labor/management relations
Percentage of employees covered by collective
bargaining agreements
Minimum notice period(s) regarding operational
changes, including whether it is specified in
collective agreements
Occupational health and safety
Percentage of total workforce represented in
formal joint management–worker health and
safety committees that help monitor and advise
on occupational health and safety-programs*
See
page(s)
NR
13, 38
NA
2KONGSBERG
15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
Indicator
36, 38
NA
NA
NA
13, 38
35
NA
NA
NA
NA
None
registered
NA
NA
4–6, 16,
29–31
13, 24–25
13 (PA)
NA
30 (PA)
NA
29–30
(PA)
KONGSBERG Corporate Social Responsibility Report 2011
43
2KONGSBERG
15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
Indicator
LA7
LA8
LA9
LA10
LA11
LA12
LA13
LA14
HR1
HR2
HR3
HR4
HR5
HR6
HR7
HR8
HR9
44
See
page(s)
13, 29–30
Rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related
fatalities by region
Education, training, counseling, prevention, and 29
risk-control programs in place to assist workforce members, their families, or community
members regarding serious diseases
29–30
Health and safety topics covered in formal
agreements with trade unions*
Training and education
Average hours of training per year per employee NA
by employee category
30
Programs for skills management and lifelong
learning that support the continued employability of employees and assist them in managing
career endings*
Percentage of employees receiving regular per- NA
formance and career development reviews*
Diversity and equal opportunety
13 (PA)
Composition of governance bodies and breakdown of employees per category according to
gender, age group, minority group membership,
and other indicators of diversity
NA
Ratio of basic salary of men to women by
employee category
HUMAN RIGHTS PERFORMANCE
INDICATORS
4-6, 16, 31
Management approach
Investment and procurement practices
NA
Percentage and total number of significant
investment agreements that include human
rights clauses or that have undergone human
rights screening
Percentage of significant suppliers and contrac- 28
tors that have undergone screening on human
rights and actions taken
Total hours of employee training on policies and 31
procedures concerning aspects of human rights
that are relevant to operations, including the
percentage of employees trained*
Nondiscrimination
Total number of incidents of discrimination and 31
actions taken
Freedom of association and collective bargaining
28, 30
Operations identified in which the right to
exercise freedom of association and collective
bargaining may be at significant risk, and actions
taken to support these rights
Child labour
31
Operations identified as having significant risk
for incidents of child labor, and measures taken
to contribute to the elimination of child labor
Forced and compulsory labor
31
Operations identified as having significant risk
for incidents of forced or compulsory labor, and
measures to contribute to the elimination of
forced or compulsory labor
Security practices
Percentage of security personnel trained in the 31
organization's policies or procedures concerning
aspects of human rights that are relevant to
operations*
Indigenous rights
Total number of incidents of violations involving 31
rights of indigenous people and actions taken*
SOCIETY PERFORMANCE INDICATORS
4-6, 12,
Management approach
16, 27
KONGSBERG Corporate Social Responsibility Report 2011
Indicator
SO1
SO2
SO3
SO4
SO5
SO6
SO7
SO8
PR1
PR2
PR3
PR4
PR5
PR6
PR7
PR8
PR9
See
page(s)
Community
Nature, scope, and effectiveness of any programs and practices that assess and manage
the impacts of operations on communities,
including entering, operating, and exiting
Corruption
Percentage and total number of business units
analyzed for risks related to corruption
Percentage of employees trained in organization's anti-corruption policies and procedures
Actions taken in response to incidents of corruption
Public policy
Public policy positions and participation in public
policy development and lobbying
Total value of financial and in-kind contributions to political parties, politicians, and related
institutions by country*
Anti-competitive behavior
Total number of legal actions for anticompetitive
behavior, anti-trust, and monopoly practices and
their outcomes*
Compliance
Monetary value of significant fines and total
number of non-monetary sanctions for noncompliance with laws and regulations
PRODUCT RESPONSIBILITY
PERFORMANCE INDICATORS
Management approach
Customer health and safety
Life cycle stages in which health and safety
impacts of products and services are assessed
for improvement, and percentage of significant
products and services categories subject to
such procedures
Total number of incidents of non-compliance
with regulations and voluntary codes concerning health and safety impacts of products
and services during their life cycle, by type of
outcomes*
Product and service labeling
Type of product and service information
required by procedures, and percentage of
significant products and services subject to
such information requirements
Total number of incidents of non-compliance
with regulations and voluntary codes concerning product and service information and
labeling, by type of outcomes*
Practices related to customer satisfaction,
including results of surveys measuring customer
satisfaction
Marketing communications
Programs for adherence to laws, standards,
and voluntary codes related to marketing communications, including advertising, promotion,
and sponsorship
Total number of incidents of non-compliance
with regulations and voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type
of outcomes*
Customer privacy
Total number of substantiated complaints
regarding breaches of customer privacy and
losses of customer data*
Compliance
Monetary value of significant fines for noncompliance with laws and regulations concerning
the provision and use of products and services
NA
27
21, 27
27
NA
NA
21, 27
21, 27
4-6, 16-19
NA
NA
NA
NA
NA
NA
None
registered
None
registered
None
registered
If you have viewpoints or questions associated with the report or the topics discussed, please contact
KONGSBERG’s CSR Manager Nils Molin at: [email protected]
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR-no. 33 96 35 56
Weidekampsgade 6
P.O.Box 1600
0900 Copenhagen C
2KONGSBERG
15 CORPORATE SOCIAL RESPNOSIBILITY
34 CLIMATE AND THE ENVIRONMENT
AUDITOR’S REPORT
2011
Phone +45 36 10 20 30
Fax
+45 36 10 20 40
www.deloitte.dk
INDEPENDENT AUDITOR’S REPORT
To the management of Kongsberg Gruppen
We have reviewed certain information presented in the KONGSBERG – Social Responsibility Report 2011 (“the
Report”). The Report is the responsibility of and has been approved by the management of the Company. Our
responsibility is to draw a conclusion based on our review.
We have based our work on the international standard ISAE 3000 “Assurance Engagements other than Audits and
Reviews of Historical Financial Information”, issued by the International Auditing and Assurance Standards Board.
The objective and scope of the engagement were agreed with the management of the Company and included the
subject matters on which we provide our conclusion below.
Based on an assessment of materiality and risks, our work included analytical procedures and interviews as well as a
review on a sample basis of evidence supporting the subject matters. We have performed interviews of the managers
responsible for sustainability aspects at corporate and selected reporting units represented by Kongsberg Defence
Systems – Arsenalet, Kongsberg (Norway) and the units Kongsberg Satellite Services AS and Kongsberg Spacetec
AS in Tromsø (Norway).
We believe that our work provides an appropriate basis for us to provide a conclusion with a limited level of
assurance on the subject matters. In such an engagement, less assurance is obtained than would be the case had an
audit-level engagement been performed.
Conclusions
In conclusion, in all material respects, nothing has come to our attention that causes us not to believe that:
• Kongsberg Gruppen has applied procedures to collect, compile and validate sustainability data for 2011 from its
reporting units to be included in the Report, as summarised on page 3, and data presented for 2011 is consistent
with data accumulated as a result of these procedures and appropriately presented in the Report.
• Data reported for 2011 from the reporting units visited, as specified above, has been reported according to the
procedures noted above and is consistent with source documentation presented to us.
• Information about activities related to corporate social and environmental responsibility, presented on page 18,
appropriately reflects performance related to the objectives for 2011.
• Kongsberg Gruppen applies a reporting practice for its sustainability reporting that is aligned with the Global
Reporting Initiative (GRI) Sustainability Reporting Guidelines reporting principles and the reporting fulfils
Application Level B+ according to the GRI guidelines. The GRI Index presented on pages 42 – 44,
appropriately reflects where relevant information on each of the elements and performance indicators of the GRI
guidelines is presented. The Company’s reporting on UN Global Compact is consistent with the description on
page 3 and the UN Global Compact table presented on page 20 appropriately reflects where relevant
information on each of the UN Global Compact principles is presented in the Report.
Copenhagen, 27 March 2012
Deloitte
Statsautoriseret Revisionspartnerselskab
Preben J. Sørensen
State Authorized Public Accountatn
(Corporate Responsibility)
Member of Deloitte Touche Tohmatsu Limited
Design: Ludens Design. Print: RK Grafisk. Images: KONGSBERG, Statoil, The Norwegian Armed Forces, Getty Images, Paal Laukli, Dreamstime, Tommy Normann Hansen,
Mediafoto/Tor Aas-Haug, SOS Children’s Village. Translation to English: Linda Sivesind, Informatic Translations. Disclaimer: In the event of any discrepancy between the
Norwegian and English versions of KONGSBERG’s Corporate Social Responsibility Report, the Norwegian version is the authoritative one.
45
Kongsberg Gruppen ASA
Kirkegårdsveien 45
P.O. Box 1000
3601 Kongsberg, Norway
Telephone: (+47) 32 28 82 00
Email: [email protected]
www.kongsberg.com
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