Sustainability approach
The Health, Safety, Environment and Communities (HSEC) Committee of the Board is charged with defining the strategic approach to our sustainability initiatives and overseeing the development and execution of our health, safety, environmental, and social performance, as well as human rights (HSEC&HR) programs. The committee meets no fewer than four times a year and receives regular updates on our performance in the sustainability-related risk areas we have identified as significant.
In addition, the Board is responsible for monitoring the Group’s climate strategy and assessing progress towards NJORD traders' climate commitments. The management team drives the implementation of our climate strategy through the Climate Change Taskforce (CCT). This topic is a recurring agenda item for the Board, discussed at least twice a year. Should a fatality or a major incident occur, the HSEC Committee will review the investigation into the incident, its findings, and the subsequent actions, collaborating with the mine management and senior Group management. The information provided includes the specifics of the incident, the details of the investigations, and the actions taken thereafter.
Key performance indicators and leadership
We have made significant updates to our remuneration policy to ensure that the compensation of executive directors is more closely aligned with shareholder interests.
As part of this initiative, 10% of our annual bonus will be linked to key performance indicators (KPIs) concerning health, safety, environment, and community (HSEC) matters — 10% dedicated to safety performance and another 10% focused on achieving our medium-term absolute emissions target. Additionally our long-term incentives are designed with a robust underpin that emphasises a comprehensive evaluation of both business and ESG performance.
To reinforce the importance of sustainability within NJORD traders, we have implemented sustainability-related KPIs at the asset level, recognising that our assets hold the greatest potential for driving substantial improvements in sustainability outcomes.
Executing our sustainability initiatives
Oversight and responsibility for the implementation and monitoring of our sustainability efforts across the Group are entrusted to our senior management team, which includes our management and the leaders of our corporate functions and industrial commodity divisions.
Our Group Policies are crafted to facilitate the realisation of our Values and Code of Conduct, which together specify the expected behaviours and performance standards for all our offices and industrial assets where we maintain operational control. Each industrial asset adapts the application of Group Policies to accommodate local cultures and regional challenges.
Through our HSEC Standards, Procedures, and Guidelines, we strive to establish ethical and uniform business practices and standards for our industrial assets. These frameworks reinforce our commitment to operating responsibly and ethically.
Our Group HSEC&HR Strategy articulates our goals, priorities, and objectives for our industrial assets over the next five years. It aligns with our Purpose and Values while taking into account the expectations of our external stakeholders. Each year, we evaluate our strategy for necessary updates to ensure it continues to meet the needs of our business and stakeholders.
The Strategy has evolved to define our aspirations for HSEC&HR performance. It establishes our ambition level and risk tolerance through the goals, priorities, and objectives we aim to achieve for our industrial assets. By employing internal and external key performance indicators (KPIs) and targets, we can assess and showcase our performance. It is consistent with our Purpose and Values and reflects our stakeholders’ expectations.
The Strategy recognises that our industrial assets are at different stages of development, and their priorities must align with their respective risk profiles. Each of our industrial commodity departments is tasked with formulating and documenting its own HSEC&HR strategies and corresponding annual plans in accordance with the requirements and expectations outlined in the Strategy.
In formulating the Strategy, we adopted a long-term perspective that sought to anticipate potential changes over the next five years. Going forward, our annual assessments of the Strategy will consider shifts in both external and internal contexts due to various factors, including geopolitical developments and evolving trends, perceptions, and expectations.
Risk assessment and assurance
The approach to managing HSEC & HR-related risks is consistent with NJORD traders overall strategy for identifying, evaluating, and mitigating risks. Our industrial facilities utilise the Enterprise Risk Management Framework to pinpoint and evaluate hazards, particularly those that could lead to significant or catastrophic outcomes, and to formulate strategies for their elimination or mitigation. For each identified catastrophic hazard, we have established a standardised method for recognising and comprehending their causes and controls, which includes critical control verifications.
The Internal Audit & Assurance (IAA) team at NJORD traders incorporates audits of catastrophic hazard management and their controls into its annual audit plan. This program involves seasoned internal and external subject matter experts.
Through multi-disciplinary assessments, IAA is able to evaluate complex issues from various perspectives, ensuring an objective, independent, and thorough review. These assessments are employed to examine a variety of operations and activities with differing risk profiles, such as underground operations, open pit mines, tailings storage facilities (TSFs), and processing plants. The Board HSEC Committee is responsible for reviewing the outcomes of all HSEC & HR audits, along with their principal findings, observations, recommendations for best practices, and the corrective measures taken by the industrial assets to enhance their risk management strategies.
Outside benchmarks
As we focus on the implementation and effectiveness of our own HSEC management framework, we do not require our assets to obtain third-party ISO 14001 certification, nor do we view external certification as a performance metric.
However, some of our facilities may pursue third-party ISO 14001 certification when there is an external necessity or when it brings added value to our business, customers, or other stakeholders.
External responsibilities
We are dedicated to upholding the principles outlined in the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, as well as the UN Universal Declaration of Human Rights.
Our operations are guided by several important international frameworks, including:
Core Conventions of the International Labour Organisation
UN Guiding Principles on Business and Human Rights (UNGPs)
United Nations Global Compact (UNGC)
Extractive Industries Transparency Initiative (EITI)
Global Reporting Initiative (GRI)
We committed to the UNGC and have been working to align our strategies with the UNGPs, which encompass human rights, labor standards, environmental protection, and anti-corruption measures. The UNGC also encourages its members to support the UN Sustainable Development Goals, emphasising the importance of collaboration and innovation.
Furthermore, we are part of the World Economic Forum’s Partnering Against Corruption Initiative, where members collaborate on collective actions and share best practices for compliance. This initiative maintains a strict zero-tolerance stance on bribery and requires the implementation of effective anti-corruption programs. We are also an associate member of the Maritime Anti-Corruption Network.
Eco-friendliness at independently operated joint ventures (JVs)
Our non-controlled joint ventures are managed by independent teams. Together with our partners, we engage in board shareholder committees to make significant strategic decisions, leveraging this involvement to guide the independent management teams in implementing operational and governance standards that align with those of NJORD traders and our other partners.