Governance and materiality
Wärtsilä is strongly committed to sustainability. Our purpose and values, together with a solid financial performance, form the basis for sustainable development within the company. We apply global guiding principles, such as the Quality, Environmental, Health & Safety policy (QEHS policy) and the Code of Conduct, which, together with the our values, ensure a harmonised way of working towards sustainable development. Our management approach covers procedures, processes, and systems to manage and monitor material topics.
The Wärtsilä Board of Management has overall responsibility for sustainability performance. The Board of Management approves the guiding principles and reviews the content on a regular basis. The Board of Management defines sustainability targets and monitors performance against these set targets. Performance is reviewed in connection with management reviews at both the Board of Management and Business Management Team levels.
The Board of Directors reviews major sustainability issues on an annual basis. In addition, the Board of Management identifies major critical concerns and, when necessary, communicates such concerns to the Board of Directors.
Wärtsilä's sustainability function is responsible for providing the necessary information to management, identifying development needs, as well as for coordinating sustainability programmes and preparing instructions. The function cooperates closely with the Businesses and the support functions, such as Human Resources, Legal Affairs, Compliance and Quality. It also collects and consolidates sustainability data from the subsidiaries.
Our clearly defined responsibilities are supported by necessary instructions and trainings relating to, for example, the Code of Conduct, anti-corruption, and environmental and occupational health and safety issues. We monitor our sustainability performance by utilising the information provided by various sustainability tools and activities, such as internal audits and compliance processes.
Our process includes an assessment of economic, environmental, and social topics, and their impact on Wärtsilä’s business from the stakeholders' point of view. Stakeholder views are collected through a questionnaire answered by key stakeholder contacts in various Wärtsilä units and functions worldwide. The aim of the stakeholder questionnaire is to evaluate how important different sustainability topics are for Wärtsilä’s stakeholders in assessments and decision-making.
Sustainability topics for the stakeholder evaluation are identified based on our previous experience on material sustainability topics, industry peer review, and analysis of significant economic, environmental and social impacts in Wärtsilä’s value chain. The focus of the stakeholder assessment is on investors and financiers, major customers, personnel, local societies, and media. The significance of identified topics are then analysed according to their current or potential business impact on Wärtsilä. The business implications of identified sustainability topics are evaluated based on the direct financial impacts as well as risks and opportunities. In addition, the level of internal policies or practices are used as an indication of the potential business impact.
As a result of our materiality assessment, the following topics are identified as material for Wärtsilä:
- Environmental Compliance
- Economic Performance
- Training and education
- Occupational health and safety
- In addition to the identified material aspects, we disclose sustainability data on several other areas frequently asked by Wärtsilä’s stakeholders or which are considered important on the basis of continuity of sustainability reporting.