Listening to the organisation

The Group's core values and our Code of Conduct together represent a framework for how employees should act and how leadership should be structured.

The values courage, commitment and responsibility help to create a dynamic and development-led organisation, in which the employees feel involved and proud.

The fact that Holmen has a good reputation as a responsible and trustworthy company is fundamental to our business. Holmen's Code of Conduct clarifies and emphasises the requirements and expectations we have of Holmen's employees in their day-to day work. The Code is a tool to ensure that Holmen's operations are characterised by responsible behaviour towards employees, shareholders, customers, suppliers,  stakeholders, government agencies and the surrounding community. The Code of Conduct applies to all employees of the Holmen Group.

Holmen has a whistleblower function by which employees and people who follow or do business with Holmen, such as customers, suppliers, financial analysts and others, can contact the company to provide important information about any deficiencies in Holmen's financial information, or to put forward other complaints or observations as to any irregularities at the company. Such information is important in enabling appropriate action to be taken.

During 2015, a common management by objectives process was established within  he Group. Holmen's management by objectives model is a structured way of working on management by objectives in day-to-day activities. On the basis of the business area's strategy, every part of the organisation set out its objectives, critical success factors and key performance indicators. Use of a simple tool for continuous follow-up ensures that the organisation is applying appropriate priorities to attain the objectives established. The objectives are followed up and evaluated continuously. During the year, more and more of the Group's employees were involved in the process and consequently management by objectives has become an automatic part of day-to-day work. The key to success lies in engaging and involving everyone to establish consensus and understanding.

Performance reviews help Holmen to achieve the organisation's strategy and achieve the objectives set. The purpose of the review is to enable the manager and employee to agree on what has to be done and what is needed to get there, in terms of work, skills, cooperation and personally. Of course, to sustain development, more than just one performance review is necessary. The foundations are laid via many discussions and constant dialogue. The objective, however, is that all employees are to have one performance review per year.

Employee surveys are a key tool for taking the pulse of the Group's units and ensuring that the company is heading in the right direction. The results provide important information on whether employees feel happy in their jobs and have the right prerequisites for carrying out their work. The results also show that the company as a whole, but also every employee and manager, are developing in the right direction. The results are also part of the Group's development work, in which the need for improvement projects and development in the organisation are identified and actions initiated.

Holmen has completed employee surveys on an ongoing basis since 2003. Historically, the survey has been conducted at Group level, but in response to a growing need for measurement in more business-area-specific fields, the Group has decided that employee survey will take place at business area level going forward. In 2016, the organisation will examine more closely how this work is to be performed. Important issues to be looked at include identifying common areas to be included, key performance indicators and how results are to be used in comparison across business areas boundaries. In 2017, a pilot project will be run to enable future employee surveys to be conducted.

The employee survey conducted at Holmen Paper in 2018/2019 had a very high response rate from all functions and departments, which is very gratifying and indicates a great commitment. This is clearly seen in the results of the survey where all index values ​​are in line with, or even higher than in other companies. These comparisons are made partly against companies in general, but also against other pulp and paper industries where a corresponding survey has been carried out. For example, the Team Efficiency Index is at 74, the Leadership Index at 76 and the Engagement Index at 79. However, we are not satisfied with this, and we continue our work improve.