Holmen has identified its stakeholders based on their relationship with the company, what impact the company has, and what players affect Holmen. Some of the stakeholders, such as employees, customers, suppliers, local residents, financiers and authorities are associated with day-to-day operations. Others, such as potential employees and customers, owners, analysts, decision-makers and the media, are important for the long-term development of the company. Here follows a presentation of Holmen's relations with some of the key stakeholders.
Competent and motivated employees who embody the company's values are a key factor for the success and long-term sustainability of Holmen. Priority issues are health and safety, leadership and management by objectives. Delegation of responsibility, skills development and participation in the development of the business are other key areas. Employee representatives have seats on Holmen's Board.
A whistleblower function is in place if employees and other stakeholders wish to report improper conduct within Holmen. No cases regarding breaches of the Code of Conduct were reported in 2017.
Almost 90 per cent of Holmen's deliveries go to European customers. Other exports go primarily to customers in the USA, North Africa, the Middle East and countries in Asia. In the drive for growth in the international markets, Holmen is expanding its presence to include more and more countries. This allows us to increase customer service and strengthen work on building relations. Holmen's business ethics policy and associated guidelines provide guidance on how to maintain good business practices when dealing with external contacts in various markets.
Purchasing is a key strategic issue within Holmen. The Group's Supplier Code of Conduct focuses on human rights and working conditions among suppliers, with a view to ensuring good conditions for everyone who works in Holmen's value chain.
Since 2017, Holmen has assigned an external partner, EcoVadis, to follow up supplier compliance with the code in the areas of human rights, health and safety, the environment, business ethics and purchasing. The evaluation is tailored to the size of the supplier in terms of turnover and number of employees, and the supplier's exposure to risk in terms of its geographical presence.
By the end of 2017, suppliers accounting for slightly more than 80 per cent of the Group's purchasing volumes had signed up to the Supplier Code of Conduct.
Environmental permits are required for the majority of the Group's operations. Openness and transparency allow us to establish the conditions for good oversight of and trust in our actions. During permit applications, the authorities, the general public and local residents all have an opportunity to put forward their views.
Shareholders, investors and analysts
Holmen wishes to create long-term value for shareholders through dividends and growth with a good return on invested capital. Sustainability issues are becoming increasingly important to investors and analysts, who are keen to establish long-term relationships with companies that have high ambitions in this regard. The Group's financial statements and sustainability reporting are an effective way of providing relevant data for analysis.
Holmen plays a significant role as a major employer in a number of locations. The business creates jobs not only within the Group, but also for contractors, suppliers and various social functions. This means, in turn, that Holmen contributes substantial tax revenue. Continuous dialogue with local communities, indigenous peoples and stakeholder organisations, as well as partnerships with universities and colleges, creates conditions for sustainable development, with the forest as a core factor in economic growth and human wellbeing.
As stakeholders, the general public, the media and opinion leaders are rather more removed from Holmen's day-to-day business, but this makes them no less important to the company's long-term development. Through its own clear communications and the work of the industry federation, Holmen is helping to increase interest in and understanding of the conditions for the industry and what opportunities it offers.
Large parts of Holmen's land in northern Sweden overlap Sami winter grazing land for reindeer. Via consultation with the reindeer herding community, it is possible to arrive at solutions that meet both parties' requirements as closely as possible. The consultation process involves meetings between Holmen's local field workers and representatives of the affected Sami reindeer herding association to discuss Holmen's planned forestry measures and whether these might have any impact on the reindeer herding community. All such meetings are fully minuted.
Holmen's operations are of great significance to employment in the places where the company is active. The Group has a total of around 2 400 employees in Sweden. Further jobs are created at subcontractors. Studies show that the average Holmen employee generates another three jobs elsewhere. This creates a total of around 12 000 jobs in Sweden.
In order to increase the supply of biomass for the biofuel boiler at the mill in Workington, there is an ongoing project, Grow your income, whose aim is to encourage farmers in the area to grow energy crops. This project has generated a dialogue with a whole new stakeholder group, further strengthening the mill's local engagement.
Social assets of the forest
The forest offers people a wealth of leisure opportunities. All Swedish forests are open to the general public under the right of common access. Holmen land is used for activities such as hunting, angling, bird watching and mushroom and berry picking. Holmen works to make the forest more accessible to more people by, for example, constructing forest roads. Recent research demonstrates clearly that forests and nature have a beneficial effect on people's physical and mental health.
As a major employer, Holmen takes part in local activities in many locations. This participation ranges from representation in various research contexts and in municipal marketing companies to scholarship activities.
Holmen supports a number of locally based clubs in places where the company has operations. The Group also supports MODO Hockey, IFK Norrköping and Sweden's Young Investors.
Foundations associated with Holmen
The Kempe Foundations support research and education in the natural sciences in the counties of Västernorrland, Västerbotten and Norrbotten. In recent years the foundations have allocated around SEK 60-73 million per year. In 2017, SEK 73 million was allocated, most of it going to Umeå University, the Luleå University of Technology, the Swedish University of Agricultural Sciences in Umeå, and to Mid Sweden University and related research in Örnsköldsvik.
Karl-Erik Önnesjö Foundation. A professorship in paper electronics was instituted at Linköping University's Norrköping Campus in 2005. The professorship will receive funding from the foundation of SEK 1 million per year for 15 years from 2007.