Sustainability management systems

Lemminkäinen wants to develop its business sustainably over the long term while growing profitably. In its operations, the company takes the expectations of customers, personnel and other stakeholders into account.

Lemminkäinen’s sustainability management is based on the company’s values, Code of Conduct as well as policies and principles defined at the Group level. The President and CEO is responsible for leading sustainability. The Group’s Executive Team discusses these matters regularly, and they are also reported to the Board of Directors.

Lemminkäinen adheres to current legislation both in all its operating countries. The most significant international regulations and agreements that guide the company’s operations are:

  • the UN Universal Declaration of Human Rights;
  • the UN Global Compact initiative in the field of corporate responsibility, promoting human rights, labour rights, environmental protection and anti-corruption
  • the ILO Declaration on Fundamental Principles and Rights at Work;
  • the OECD Guidelines for Multinational Enterprises; and
  • International Chamber of Commerce (ICC) recommendations.

Lemminkäinen employs management systems that meet the requirements of the international standards ISO 9001:2008 (quality management system), ISO 14001:2004 (environmental management system) and OHSAS 18001:2007 (occupational health and safety management system). The management systems ensure that there are the required resources for every stage of the projects and that work is completed on time and in accordance with the customer’s order. Lemminkäinen has separate, quality-certified management systems for each business segment. The company’s mineral aggregates and asphalt plants are CE marked in those countries where legislation so requires.

Financial responsibility management systems

A detailed description of the financial responsibility management systems can be found in the Corporate Governance Statement.

Environmental and safety management systems

Responsibility for the Group’s environmental and occupational safety issues is held by an Executive Team member, and at the business segment level, by an EHSQ manager. The Group’s Director, HSQE, coordinates the development of occupational safety between the different business segments and countries. Lemminkäinen is committed to the Confederation of Finnish Construction Industries RT’s target of zero accidents by 2020.

In July, Lemminkäinen published its revised strategy and reporting system. Consequently, the environmental and safety management systems will be reviewed during winter 2014–2015.

Social responsibility management systems

Lemminkäinen’s social responsibility management has been decentralised. Human resources management is led by the Executive Vice President, HR. Lemminkäinen’s HR policy aims to ensure that the company has the competent, motivated and satisfied personnel required by the operational targets.

The goal of Group-level policies and principles, such as the equality action plan, is to promote fairness and to ensure equal treatment. Compliance with these Group-level policies and principles is managed and monitored within the scope of line operations.

Lemminkäinen’s partner and supplier network is expected to comply with laws, international human rights, labour rights, environmental regulations and the Code of Conduct. In addition, Lemminkäinen requires all its subcontractors to adhere to the Act on the Contractor’s Obligations and Liability When Work Is Contracted Out when operating in Finland. The Senior Vice President, Procurement, is responsible for the partner and supplier network.

Legal affairs are coordinated by a Group-level unit in order to promote consistent practices. The General Counsel is responsible for this. Legal affairs related to business operations are handled by the lawyers in business operations. Furthermore, additional guidelines about competition law and insider issues are provided to complement the Code of Conduct. Business management is responsible for monitoring compliance with these guidelines, and internal training on them is also provided. Lemminkäinen has zero tolerance with regard to activities violating competition legislation.

In addition, Lemminkäinen uses the SpeakUp service through which Lemminkäinen employees and external stakeholders alike can report any suspected violation of the Code of Conduct.

Product responsibility is led by the Executive Vice Presidents of Lemminkäinen’s business segments. They are responsible for customer service, and they ensure that Lemminkäinen’s products and marketing comply with laws and regulations.