- Risk-based management approach, also in operations
- Sustainability part of the operations performance indicators
Sika employs a risk-based management approach for its own operations, the supply chain, and the products it sells and distributes. Major operations are regularly screened by experts according to a loss prevention methodology, with frequent support from our insuring partners. Results are translated into improvement plans in consultation with management. This results in an overall low loss rate due to events such as major supply disruptions and ensures that customers receive their goods from Sika on time.
The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) has developed voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders. In 2020, Sika evaluated the potential risks and opportunities of climate change impact including its upstream and downstream value chain. Sika has performed a high-level assessment of physical and transitional exposures.
There are several uncertainties in future climate predictions which includes unknown future emissions of greenhouse gases. The Group has chosen a projection horizon to 2030 which is aligned with its objective to reduce CO2 emissions by 50% until this year and represents a realistic view on this intermediate goal. The period 2021 to 2030 refers to the near future.
To complete this task, an internal cross-functional team has been set up which also relied on the advice of an external expert consultant in this field.