Economic sustainability

With its four business areas, the ANDRITZ GROUP serves markets with long-term and sustained growth potentials.  The Group's aim is to achieve market leadership in these markets and extend its current top position there. ANDRITZ intends to achieve this goal by offering the best technologies available on the market in each case and providing products and services that create sustained benefits for customers, society at large, and for the environment.

Compliance

Compliance and ethically correct conduct form the basis of ANDRITZ’s business activities and are defined in the Code of Conduct and Ethics. The Code of Conduct and Ethics was revised in February 2019 is available in 13 languages: ANDRITZ Code of Business Conduct and Ethics

Operations by the Compliance group function are divided into a Compliance Committee, which is responsible for strategic planning of all activities, and an operational compliance function, which has substantive responsibility and legal experts with responsibility for specific regions and topics. The Group Compliance Officer coordinates between the committees and deals with the strategic planning of all activities.

In order to monitor the effectiveness of the compliance management system and further improve it, ANDRITZ undergoes regular certification: ISO 19600 certification for the compliance management system and ISO 37001 certification for anti-corruption management were provided for the first time in 2018 and are reviewed annually in a monitoring audit and every three years during re-certification. The regulations contain requirements for developing, implementing and maintaining a compliance management system as well as suitable measures to help protect against, track down and provide proof of corruption.

Compliance concerns every single ANDRITZ employee so all executives, staff and other groups that work for ANDRITZ share the values and principles laid down in the Code of Conduct and Ethics. Training has always been an important in conveying an  understanding of all of the rules and regulations ever since compliance activities began in the company.

Supply chain

In procurement, ANDRITZ attaches great importance to qualification of sub-suppliers, who are scrutinized closely, not only in terms of quality, but also considering social and environmental aspects. The ANDRITZ GROUP buys the majority of its raw materials and other materials required in the regions where its own production sites are based. This means that ANDRITZ procures materials largely where production takes place. As a result, the company makes a significant contribution to local economic added value and to creating and retaining jobs. This policy also leads to shorter transport routes and reductions in CO2 emissions.

Supplier Compliance and Sustainability

In order to broaden the scope of the Code of Business Conduct and Ethics, a Supplier Code of Conduct was published in 2015, defining the minimum requirements for sub-suppliers collaborating with the ANDRITZ GROUP. The Code was revised 2019.

As part of a risk assessment process, suppliers must confirm and accept the content of the supplier code in writing in the supplier relationship management tool (SRM) as part of the qualification process. In addition, suppliers must complete a questionnaire that then provides a compliance rating according to a standardized evaluation. If the rating is too low, corrective actions are defined with the supplier concerned if necessary. This compliance questionnaire was also updated in October 2019.

Another step towards a better and more comprehensive assessment of suppliers in terms of sustainability and compliance is the appointment of auditors – two for the time being – who are operating in India and Asia. The local supply chain  is reviewed in terms of human rights and fair working conditions,environmental responsibility, business integrity, export controls, and intellectual property rights in coordination with the Quality Group Function in these two regions; event-driven audits are triggered by defined risk parameters.

Risk management

As a globally operating Group, ANDRITZ is subject to certain general and industry-specific risks. ANDRITZ has made it a priority to leverage measures of active risk management related to the nature of the industries and business transactions in which the company engages. A management steering committee focuses on the identification of major risks and the implementation of counter-measures if necessary.

Quality management

Quality management in the ANDRITZ GROUP covers products and applications, business processes, and safety and environmental topics. Harmonized standards worldwide improve the general understanding of processes and functions, encourage collaboration, and assign clear areas of responsibility. The organizational structure aims to make this topic a part of everyday business by means of harmonized quality and safety strategies for all business areas.

The most important instrument in the ANDRITZ quality organization is the business process manual, which defines the structure of the management system for the entire group. It states the processes and responsibilities for process management and provides guidelines for implementation of the individual steps.

Quality management accompanies a project from its award to its completion. There are also guidelines for support
tasks such as IT or communications. External verifications confirm consistent and effective implementation of the
standards. In the meantime, there are 79 locations that have been certified under OHSAS 18001 (occupational
health and safety) and ISO 45001 (safety at work) and 74 locations certified according to ISO 14001
(environmental management systems).

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