Corporate Social Responsibility “CSR” in nkt cables
CEO Statement
1. Statement
In the last few years Corporate Social Responsibility “CSR” has become a new dimension to business in general. Following the efforts by the UN to establish certain basic principles as laid down in UN Global Compact, companies are now facing the challenge to take position and make clear to their stakeholders where they stand.
The parent company of nkt cables has made the choice to face the challenge, and NKT has signed up for UN Global Compact, with nkt cables fully supporting that initiative. It means that nkt cables actively wants to contribute to create Fair Sustainability in its business – and to help its customers to do the same, while encouraging suppliers to follow suit as well. Whereas this is easily said, such principles have always been driving nkt cables behavior, making it easier to provide the evidence, that is to say to "put your money where your mouth is". For that matter, nkt cables has taken some recent actions that will put it on track to do that – to start a course of creating evidence that nkt cables is on the side of Fairness, Sustainability, Durability, Responsibility – and by that to play a positive role in societies that struggle with the need to find the right “course” in many senses of the word going forward in the 21st century.
nkt cables has defined CSR as a top management responsibility and has charged the CFO of the company to implement and monitor the associated procedures to track progress and compliance.
Furthermore, nkt cables has chosen to enlarge its business participation in the fields of Renewable Energies – to help its customers to preserve natural resources and reduce CO2 emissions that are believed to be predominant goals of societies – any society – in the next 50 years. By that choice nkt cables directly documents its ambition to create a sustainable future for all in this century. nkt cables is also offering monitoring solutions and technologies that can reduce electricity transmission and distribution losses to up to 50% – thus assisting customers to play their role in the CSR field. Last but not least, nkt cables will be setting up reporting systems to track CO2 emissions at its suppliers – to also link that part of the supply chain to its ambitions.
2. Environment
Today the manufacturing processes for cables have a minor relevance towards noise and pollution of water and air. Important are 1) energy consumption, as direct emission of greenhouse gasses from natural gas for heating and as indirect emission from use of electric power for production, and 2) use of non renewable resources of which the most important is copper, but also aluminium and fossil fuel for manufacture of raw materials such as plastic. So it is important to 3) minimize use of energy and 4) maximize the utilization of raw materials while 5) avoiding the use of hazardous materials in products and processes.
In the context of the preceding the following Examples can be mentioned as actions that nkt cables took in the past:
- the establishment of a cable recycling plant 50 years ago
- the first company to eliminate the use of lead compounds as stabilizer in PVC about 20 years ago
- the development of alternatives to PVC cables about 15 years ago (Nopovic®, NOBH a.o.)
- the initiation of the substitution of hazardous phthalate DEHP with non hazardous
- DINP and DIDP about 5 years ago
- the energy consumption per ton manufactured cable has been reduced about 25 % from 2001 to 2008
- the first company to develop and test a cable with superconductors in the real life commercial grid
In the coming years nkt cables will pursue following Environmental Targets:
- Greenhouse gasses: Direct emission from the factories and indirect emission due to the consumption of electric power shall be reduced 12 % per ton manufactured cable in 2012 compared to 2008 (assuming a similar product mix)
- Material utilization: the material utilization shall be increased from 95.2 % in 2008 with 0.2 % per year and thereby reach 96 % in 2012.
- Phthalate DEHP: During 2010 the use of all PVC softened with DEHP shall be phased out (except for one market due to the competitive environment)
3. Fairness
nkt cables is doing all of this in a business model that is based on fairness and openness – towards its employees, its customers, its suppliers and other stakeholders. This means that nkt cables is only engaging in business relations that are transparent and with partners who will – eventually – subscribe to the same principles. Where and when nkt cables detects deviations, it is commiting itself to take corrective action, in a responsible way.
nkt cables management has established rules and procedures that make these principles clear to its employees, and that encourage its employees to take them as non-negotiables in their offerings, their actions and their deeds.
Towards its employees, nkt cables holds the view that they are entitled to work in a safe environment. For that matter, the goal in every factory is to have zero accidents. Regular tracking and analysis on all processes are the tools that nkt cables uses to realize this vision.
No employees will be forced to perform tasks or duties that are in conflict with sound labor practices, and accurate and up-to-date employee statistics are kept and reported monthly to document full compliance.
Employees are offered equal development opportunities and the HR function keeps track of all (Key) staff, candidates and talents to provide training and development opportunities – regardless of sex, race or religion.
nkt cables believes that having CSR principles and living up to those will benefit all stakeholders and thus make nkt cables a better company and a better place to work.