Board and Group management
The Holmen Board comprises 12 members, of which nine are elected by the Annual General Meeting. One of these is the Group President and CEO. The union organisations appoint three employee representatives and three deputies. The activities of the Board follow a plan that, among other things, is to ensure that the Board obtains all requisite information. Each year the Board decides on written working procedures and issues written instructions. The latter relate to the division of responsibilities between the Board and the CEO and the information that the Board is to receive continually regarding financial developments and other key events.
The Board regularly addresses relevant sustainability issues. Company officials such as specialists in the areas of HR, sustainability, communications, technology, environment and purchasing make presentations at Board meetings.
Holmen's Group management consists of the Group President and CEO and heads of business areas and Group staffs. Group management meets monthly and attends to issues relating to the development of the business and financial results, business planning, budgets, investments, personnel and sustainability and environmental issues.
The Group's CEO is ultimately responsible for sustainability issues at Holmen. 2017 saw the establishment of the new Group staff, Group Sustainability and Communication, whose director takes part in the work of Group management.
The sustainability report in the Group's annual report and the extensive sustainability reporting that is posted on Holmen's website are vital tasks for the new Group staff. Another important task is to take part in dialogue with stakeholders who are sustainability analysts.
Joint action groups
In areas where more detailed work is important, joint action groups that include specialists have been set up. These groups are involved in the exchange of experience and development of expertise in particular fields.
The work with HR at Holmen is carried out in accordance with the Group's HR policy. Personnel issues are handled by a coordination group for HR, which comprises the personnel managers of the business areas and is chaired by the Group's HR Director.
The HR priorities fall into the areas of management by objectives and leadership along with the need to improve the safety culture.
Group management has appointed a working party consisting of the site managers of the production units. This team, led by Group Technology, is responsible for health and safety issues and security. The group sets goals and key indicators and continuously follows them up, providing feedback to Group management. All production facilities have certified management systems in place for health and safety work in accordance with OHSAS 18001.
A relationship with the union organisations that is based on trust is important and helps drive Holmen forward. Collaboration with trade unions internationally takes place in the Holmen European Works Council and in consultation groups at various levels in the company. The company's employees are represented on the Group Board by three members and three deputy members.
Environmental activities are conducted in accordance with Holmen's environmental and energy policy which was revised in 2017. The Group Board, the CEO and the heads of the business areas have overall responsibility for the environmental work. Operational responsibility for environmental matters is held by mill managers and forest managers.
Holmen's Director of Environmental Affairs monitors developments in the field, follows activities relating to the Group's targets for sustainable development and runs joint actions.
Environmental and energy management systems
All units, except Linghem Sawmill but including Holmen Skog, apply certified environmental management systems. Holmen's forestry is certified in accordance with the international criteria issued by PEFCTM and FSC® (FSC-ID). All the sites except Linghem Sawmill apply certified energy management systems.
Linghem Sawmill was acquired in 2017. Certified management systems will be introduced at the sawmill, and will then be included in Holmen Timber's certificates.
Financial activities at Holmen are largely decentralised to business area, mill and forest region level. Group Finance has responsibility for co-ordinating financial activity in the Group, with functions for financing, controlling, accounting and reporting, taxes and insurance.
Holmen publishes an annual report including a sustainability related information which are audited by external auditors. Financial information is published regularly on the Holmen website.
The business areas issue magazines and newsletters targeted at customers and other stakeholders. Magazine examples are Paper (printing paper), Inspire (paperboard) and Skogsliv (forestry and other topics).
Information for personnel
The intranet Connect is an important source of information for Holmen's employees.
The purchase of goods and services is coordinated at Holmen with the aim of reducing total costs. The requirements of quality, environment and sustainability are emphasized in the purchasing policy. The purchasing organisation sets requirements for the principles contained in the Holmen code of conduct to be complied with in new purchase agreements.
Insurance of facilities and forests
Risk management issues are coordinated by a Group-wide body. Damage prevention measures, regular maintenance and continual upgrades can minimise the risk of damage to facilities. Training of employees promotes participation, knowledge and awareness about these risks and how they can be countered. Holmen insures its facilities to their replacement value against property damage and consequential loss. The excess varies from one facility to another, but the maximum is SEK 30 million for any one claim. The Group has liability insurance that also covers sudden and unforeseen environmental damage affecting 'third parties'. The Group's forest holdings are not insured. They are widely dispersed over large parts of Sweden and the risk of extensive damage being incurred simultaneously is deemed to be low.
Holmen is a member of trade associations for the forest industry, in Sweden (Swedish Forest Industries Federation) and in the UK (CPI, Confederation of Paper Industries). Holmen is also a member of the European trade association CEPI, Confederation of European Paper Industries.