ΜΕΤΚΑ | SUSTAINABILITY REPORT 2015 - page 66-67

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MYTILINEOS HOLDINGS SUSTAINABILITY REPORT
2015
Market Risk
The global financial conditions continue to present fluctuations. The Group is faced with risks that
stem from the fluctuations in the price of LME, the parity €/$, the wider economic and financial
environment as well as the market of the final products of Aluminum.
In this context, the Group has developed a series of actions in order to counterbalance its exposure
to the risks of the market, to improve the structuring of the cost and ensure its liquidity.
These actions include:
- Counterbalancing the risk stemming from the fluctuation of the aluminum price with the use of
various financing tools.
- Counterbalancing the risk stemming from its exposure to the fluctuations of the parity €/$ with
the use of derivatives
- Restructuring energy cost items.
- Implementation of programs for the optimal utilization of assets and implementation of cost
reduction programs.
- Processing plans for the improvement of the production process.
- Reevaluation of the Group’s credit policy as well as of the procedures used for the appraisal of
the customers’ creditworthiness.
Increase in the cost
of raw materials
The Group’s operational results are influenced by the rising cost of rawmaterials like metallurgic
coke, soda and other basic materials as well as by the cost of freights related to the transportation
of the aforementioned materials.
The Group tries to negotiate and “lock” the main freight contracts with competitive terms. At the
same time, the Group has implemented a new systemof assessing the prices for the procurement
of raw materials, while it also runs a continuous cost optimization and reduction program.
Moreover, the Group’s operational results may be influenced by unfavourable conjuncture, when
the drop in the price of cost items that are linked with the price of LME or the parity €/$ is not
enough to counterbalance the respective reduction in the price of LME or the US Dollar during
the same period.
In 2015, the CSR Committee’s main objectives were: a) the review
of the 2013-2014 CSR results, b) the review and approval of the
2015 CSR strategic objectives and initiatives and c) the approval
of the new MYTILINEOS Group Social Contribution management
system.
10.4 Risk Management & Internal Control
By operating in three in three basic business sectors, Metal-
lurgy and Mines, Energy and Integrated Energy Projects (EPC),
the MYTILINEOS Group is faced with a number of different risk
factors. Apart from the risk factors that are presented in detail
in the Group’s Annual Report, the following ones constitute the
basic risk factors that could significantly influence the results, the
financial state and the overall Group’s path towards to sustainable
development.
FULL NAME
STATUS
Christos Zerefos
Chairman – Non-Executive Member – Independent
Evangelos G. Mytilineos
Member (Chairman of the Board & CEO)
Sofia Daskalaki
Member – Non-Executive
Spyros Kasdas
Member
Vivian Bouzali
Member
Fotis Spyrakos
Member
Lydia Tsapara
Member
Key risk factors with potential immediate impact on the Group’s operation
Composition of CSR Committee
10.3 CSR Governance
G4-14 G4-36
The management of the issues related to responsible entrepre-
neurship is a responsibility shared by all senior and top Manage-
ment Executives of MYTILINEOS Group and covers all policies
adopted and all actions taken in order to fulfil the expectations of
Stakeholders, over and above the Group’s legal and regulatory
obligations. The integration of this system into the organisational
structure of MYTILINEOS Group companies relies on a uniform
set of procedures and on a specific reporting hierarchy, designed
to overcome any obstacles which might result from the particu-
lar characteristics of each one of the Group’s individual activity
sectors.
GROUP CSR COMMITTEE
The CSR Committee of MYTILINEOS HOLDINGS S.A. includes the Group Chairman among its
members and is primarily responsible for supervising and ensuring the correct implementation of
the CSR Governance in MYTILINEOS HOLDINGS S.A. in terms of policies, targets, actions and results
in connection with environmental, social and ethical issues. The Committee reviews and approves
the Sustainability Report ensuring that all material issues are addressed.
G4-48
It may also act in the
capacity of advisor to the Group’s Executive Management and to the relevant Board Committees on
the above issues, to assist their implementation in a more complete manner. .
Objectives of the
CSR Governance system
targets
(a) To highlight the scope
and breadth of the relevant
concepts, with the ultimate
goal of preventing business,
social and environmental
risks;
(b) To identify and implement
policies and initiatives that
will substantially contribute
to the achievement of
Sustainable Development;
and
(c) To balance the economic,
social and environmental
implications of the Group's
business activities, while
generating value for the
Shareholders and all other
Stakeholder groups in
general.
GROUP LEGAL & REGULATORY MATTERS DIVISION
In addition to its other main responsibilities, it plays a key role in the formulation of the Company's
s environmental strategy. It is informed of the latest developments in the European environmental
regulations and proposes ways for ensuring the alignment of the Corporate Strategy. It works closely
with the Group's subsidiaries and the competent Executives on all Environmental Strategy matters
arising. Additionally, in collaboration with the Managing Directors of the Group’s subsidiaries, it
coordinates joint actions that support and promote the approved strategy.
EXECUTIVE MANAGEMENT OF GROUP SUBSIDIARIES
The Managing Directors of the Group's subsidiaries, having full responsibility for the results and the
operational planning of their respective Activity Sectors, are actively involved in the management of
social and environmental issues, providing the CSR teams of their companies with the necessary
directions and ensuring that the Key Performance Indicators (KPIs) are in line with the strategic goals
of the Group and of their company.
CSR TEAMS OF GROUP SUBSIDIARIES
The individual CSR teams of the Group's subsidiaries operate within specific and clearly defined duties
and obligations, to implement the policies of the Group's parent company, MYTILINEOS HOLDINGS
S.A., as well as the CSR programs at the level of the individual subsidiaries.
GROUP COMMUNICATION DEPARTMENT
With its crucial coordinating role, the Group Communication Department is responsible for providing
support to all subsidiaries, to ensure compliance with the relevant standards and goals of the Group's
parent Company, MYTILINEOS HOLDINGS S.A.
ESTABLISHED STAKEHOLDER CONSULTATION PROCESS
The process of Consultation with Stakeholders is a long-established principle of the Group
responsible operation, contributing decisively to enhance transparency and further improvement of
its subsidiaries CSR strategy and initiatives.
G4-45
COMPANY CODES
G4-56
Key to the governance of CSR is the compliance with the Professional Ethics Code, which coversthe
general principles and rules that must govern the Management’s commitment towards the
employees and the professional conduct of all people working
in the Companies of the MYTILINEOS Group. Furthermore, of equal importance is the compliance with
the newly-introduced «Code of Conduct for Supplies and Business Partners», which describes the
minimum requirements/expectations of MYTILINEOS HOLDINGS S.A. from its supply chain actors
regarding CSR-related issues as a prerequisite for the commercial cooperation between the two sides.
MYTILINEOS Group
CSR Governance Structures
Description of the CSR Governance system
G4-2 G4-14 G4-46
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