Hazard risks

Occupational health and safety systems, travel safety instructions, and crisis management guidelines are aimed at protecting Wärtsilä employees. Appropriate insurances are in place for the personnel, and to emphasise the importance of employee safety the Board of Management has decided on a corporate level target of zero lost-time injuries. A specific Zero Injury project exists for this purpose, and the target is included in the company’s sustainability programme. During 2020, the near-miss reporting system, WeCare, was actively used worldwide in order to manage information related to incidents that can threaten the safety, health, and security of the company’s employees and operations, as well as the environment. This IT solution provides a guide for identifying the causes of incidents, for taking all appropriate actions in a systematic way, and for documenting the lessons learned.

During 2020, the COVID-19 pandemic put risk management practices to the test. In January, a corporate cross-function and cross-business crisis response team was established, the focus being on employee safety, both in-house and while visiting customer sites, when travelling, and during remote work. The intention of this initiative is to ensure the continuity of Wärtsilä’s business and operations in a safe manner.

Environmental management systems are in place to mitigate environmental hazard risks. Wärtsilä maintains a register of all properties used and gives guidelines for the purchase, sale, rental, and security of premises, and uses external advisors for environmental audits.

None of Wärtsilä’s major facilities are located in natural disaster areas. Catastrophic peril related scenarios are identified and, where necessary, exposures are mitigated by, for example, elevating sites above the flood risk level or by constructing flood dikes. For Wärtsilä’s main sites, business impact analyses have been conducted and continuity plans created to cover both property and business interruption risks.

The risks that Wärtsilä is unable to influence through its own efforts are transferred, whenever possible, to insurance companies. Wärtsilä uses appropriate insurance policies to cover indemnity risks related to its personnel, assets, and business interruptions, including supplier triggered interruptions, as well as third-party and product liability. Wärtsilä has established its own captive insurance company, Vulcan Insurance PCC Ltd. This risk management tool only insures Wärtsilä’s own risks. For insurance technical reasons, the company is located on the island of Guernsey. Vulcan Insurance PCC Ltd’s results are consolidated into the corporation’s books and are subject to normal taxation in Finland.

Insurance coverage 2020