“We are guided by one overall purpose: to deliver security for countries, alliances, and individuals; Security is a means to maintaining and developing prosperity and protecting human lives and sovereignty. In fulfilling this purpose, we conduct our business ethically, inspired by the UN Global Compact.”
Having committed to working with CSR and being an ethically responsible company, a first step for us was to define what this concept represents for Terma. We have therefore created our “CSR Compass”, in which we connect our purpose with our CSR engagement, illustrating how our mission of providing security plays a positive role on prosperity, human lives, and sovereignty.
For more detailed information on our latest progress and activities, please read our “2017/18 CSR Report” under Reports & Publications. You can also find Terma’s “CSR Policy” under Policies, both publications are in the menu to the right.
Terma became Signatory to the UN Global Compact in April 2017 and published its’ first Communication on Progress in May 2018. We have committed ourselves to support and uphold the Ten Principles, which have guided and inspired not only our CSR Compass, but our strategic work with CSR and reporting as well. From this, we have developed our Radar of Engagement, see below, as an overview and formal structure for Terma’s ethical responsibility. Beyond adopting the four focus areas of the UN Global Compact, we have chosen to place Responsible Supply Chain Management at the very core of this model, as it encompasses all four areas and forms a key priority for Terma. In the menu to the left, you can read more about each of these areas.
Our CSR Strategy
Terma initiated the work with CSR in 2009, and since then, we have regularly strengthened our approach. Acknowledging the steady increase in number and complexity of CSR related requirements combined with the expected growth of Terma at a global level called for a revised approach. Terma’s CSR strategy does just that by looking towards 2022 with the goal to integrate CSR within our business practices beyond compliance. Our focus has been to ensure that CSR practices become anchored in all relevant departments by establishing ownership, but also by making the business drivers tangible.
“Systematically integrating CSR in the business processes also means making the connection with our values and our business strategy. Only then can we ensure that CSR becomes a part of Terma’s business in the long run.”
Morten Halskov, Senior Vice President, General Counsel
Three main building blocks will help our ambitions and goals come to life and to integrate CSR in Terma:
CSR risk management: we will work towards an enhanced understanding of the CSR related risks and compliance issues.
CSR opportunities: we will identify where CSR brings opportunities and engage actively with the business on concrete work.
Organizational development: we will keep raising awareness so that in turn it brings engagement and pull from the organization.
“CSR in Terma has been seen as something obvious for many years. We have strong company values and a culture of “doing the right thing”. Nonetheless, we can see that by defining what it means to Terma, we can better engage our own organization and our stakeholders and focus on where we can have an impact. It is also a clear signal of our commitment.”
Morten Halskov, Senior Vice President, General Counsel
Stakeholder and materiality
Having an in-depth understanding of our stakeholders’ and our own material issues is vital for our business operations. A non-prioritized materiality overview (see below) helps us ensuring that our focus is in the right direction with our work with CSR.
As part of our efforts to continuously strengthen our CSR priorities, a key step is to increasingly ensure that this area is integrated throughout our organization and within the relevant functions and Business Areas. Therefore, a renewed governance structure has been put in place to drive our future work within CSR. Until the end of the fiscal year 2017-18, the centralized cross-functional Working Group that has been in charge of overseeing and directing Terma’s CSR work since 2009 has been transformed into a CSR Board with a stronger business orientation. The role of the CSR board will be to ensure further anchoring of our performance and implementation of Terma’s CSR Strategy within the company. The main strength and change of the Board is the inclusion of representatives from our Business Areas, production and innovation departments.
Terma and the Sustainable Development Goals
A changing world changes expectations towards companies, resulting in a new role for the private sector. Companies have a responsibility in shaping a sustainable future for all of us. This acknowledgement is reflected in our commitment to operate in a manner that supports the Sustainable Development Goals (SDGs), the 17 goals and 169 targets that were unanimously adopted by all 193 UN member states in 2015 as part of the 2030 Agenda. Therefore, we have conducted an initial assessment of the SDGs in the context of our core business activities and impacts, to map our future commitment to this global multi-stakeholder agenda. We have chosen to pursue and prioritize the 6 SDGs which are most strategically aligned with our operations, to ensure optimal influence and contribution from Terma in fulfilling these global goals and agenda.