To determine whether an aspect is material, a combination of internal and external factors has been used. In the matrix below, the materiality of aspects have been ranked according to the following criteria:
1. Influence on stakeholder decisions:
2. Importance to Bekaert business:
In the matrix below, the shaded area visualizes the measurable material aspects included in this report.
Material aspects (per category):
1. Economic performance of the company
2. Promotion of social and economic development in the community
3. Upstream sustainable supply chain
4. Energy and emissions
6. Effluent and waste
The main tasks of the Board of Directors are to determine the company’s general policy, approve the strategy and supervise the activities. The Board of Directors is the company’s supreme decision-making body in all matters, other than those in respect of which decision-making powers are reserved to the General Meeting of Shareholders by law or the articles of association. The Board of Directors currently has fifteen members. Their professional profiles cover different areas of expertise, such as law, business, industrial operations, banking & investment banking, marketing & sales, technology & engineering, HR and consultancy. One third of the Board members are female, in line with current regulations on diversity.
(GRI 102-18 + GRI 103-2 + GRI 103-3)
The Chairman and the Chief Executive Officer are never the same individual. The Chief Executive Officer is the only Board member with an executive function. All other members are non-executive Directors.
The Board of Directors of NV Bekaert SA has announced, on 1 March 2019, the succession plans of its Chairman and Directors of the Board.
For more information on the changes in composition in 2019, and on activities and remuneration of the Board of Directors in 2018, please consult Bekaert’s Annual Report 2018.
The Bekaert Group Executive assumes the operational responsibility for the company’s activities and acts under the supervision of the Board of Directors.
As announced on 1 March 2019, the composition of the Bekaert Group Executive has changed according to the new organizational structure.
For more information on the changes in composition in 2019 and the performance and remuneration of the Bekaert Group Executive in 2018, please consult Bekaert’s Annual Report 2018.
At the request of the Board of Directors and the Audit and Finance Committee, management has developed a permanent global enterprise risk management (ERM) framework to assist the Group in managing uncertainty in Bekaert’s value creation process.
The framework consists of the identification, assessment and prioritization of the major risks confronting Bekaert, and of the continuous reporting and monitoring of those major risks (including the development and implementation of risk mitigation plans).
The risks are identified in five risk categories: business, operational, legal, financial and country risks. The identified risks are classified on two axes: probability and impact or consequence. Decisions are made and action plans defined to mitigate the identified risks. Also the risk sensitivity evolution (decrease, increase, stable) is evaluated.
For more information on Enterprise Risk Management in 2018, please consult Bekaert’s Annual Report 2018.
This report has been prepared in accordance with the GRI Standards: Core option. Global Reporting Initiative (GRI) is a non-profit organization that promotes economic, environmental and social sustainability.
Bekaert has been reconfirmed for inclusion in the Ethibel Excellence Investment Register. This selection by Forum Ethibel indicates that the company performs better than average in its sector in terms of Corporate Social Responsibility.
Bekaert’s responsible performance in 2018 has also been recognized by its inclusion in the Ethibel Excellence Index (ESI) Europe - a reference benchmark for top performers in terms of corporate social responsibility based on Vigeo - Eiris’s research - as well as in Kempen SRI.
In 2018 rating agencies MSCI and ISS-oekom analyzed the environment, social and governance performance of our company, based on our publicly available information. Their reports are used by institutional investors and financial service companies. In 2018, Bekaert received a BBB rating in the MSCI ESG Ratings assessment (above average) and a C- rating (below average) from ISS-oekom.
For the second year in a row, Bekaert was awarded a gold recognition level from EcoVadis, an independent sustainability rating agency whose methodology is built on international CSR standards. The agency states that Bekaert is performing equally or better than 99% of the companies assessed by EcoVadis in the same industry.
In response to the growing interest throughout the supply chain with regards to reporting on the carbon footprint of operations and logistics, Bekaert also participates in the Climate Change and Supply Chain questionnaires of CDP (formerly known as the Carbon Disclosure Project). For 2018, Bekaert received a D score for its Climate Change efforts, below sector average and a C score for its supply chain efforts, scoring better than the sector average.
Bekaert has numerous corporate memberships, including various relevant bilateral chambers of commerce and general industry associations, such as Agoria, VOKA – Flanders and Wire Association International. Bekaert is also a member of national employer associations in all countries where Bekaert is active.
The Bekaert Policy on Conflict Minerals and Compliance Plan is available on the Bekaert website.