Policies and tools
Business controls
Hydro’s overall goal is to create shareholder value through satisfied customers and motivated and competent employees. The company has defined two main processes ensuring that short and long-term targets are achieved.
The portfolio, strategy and business planning process involves strategic and operative planning and result monitoring. Planning, which reflects the company’s ambitions and values, is the basis for the strategies and measures that shape the business plans at all levels. Hydro has defined key performance indicators for each unit, including for finance, human resources and HSE objectives, in addition to unit-specific targets.
As an integrated part of Hydro’s annual business planning, the people process describes how Hydro assesses and develops its human resources. Its aim is to develop the potential of both individual employees and that of the organization as a whole.
Risk management is an integrated part of the company’s planning and reporting functions. Exposure to certain risks, such as those threatening life and health, has been reduced to a minimum. Hydro carries out risk assessments in areas when the company’s assets are exposed. Risk management deals with all aspects of value creation, including strategy, finance, commercial matters, organization, HSE, reputation, corporate social responsibility, regulatory and legal matters.
Hydro’s internal control shall provide sound controls, the hallmarks of which are integrity, ethical values and organizational attitudes. Internal audit is an integrated element in Hydro’s management principles and helps Hydro achieve its business goals by ensuring that:
- Risk is identified and dealt with
- Financial reporting and internal management information are correct
- The company runs its business in accordance with the regulations in force and with internal requirements
- Resources are procured and applied in a cost-optimal way
Corporate directives and Code of Conduct
Hydro’s governance system is based on the delegation of responsibility to the business areas and to central, operative corporate functions within finance, tax and accounting. In order to maintain a uniformly high standard, Hydro has laid down general requirements in the form of corporate directives. These are mandatory for all parts of the organization and are based on The Hydro Way.
The directives address, among other things, strategy and business planning, finance, risk management, organizational and employee development, health, safety and environment (HSE), ethics and social responsibility. This information is available for employees on Hydro’s intranet and in the brochure “You and Hydro”.
A dilemma-based e-learning program "You and Hydro - let's take a closer look", mandatory to all employees, is available in local language for 97 percent of the workforce. The interactive program includes issues like HSE, integrity, human rights and harassment.
Whistleblower channel
These corporate directives shall ensure that everyone in the company discharges his or her activities in an ethical manner and in accordance with current legislation and Hydro’s standards. Employees are encouraged to discuss their complaints, and concerns regarding possible breaches of Hydro’s requirements, with their immediate supervisor. When this is not considered to be appropriate, then employees have recourse through a “whistleblower” channel through the company’s internal audit function with reporting line to the Board’s audit committee. Reports may be given anonymously. Employees can not be criticized or penalized if they in good faith arecontacting a relevant function in Hydro about a perceived breach of the law or the company’s guidelines.
Our code of conduct is approved by the Board of Directors and is valid to the Board members, all employees and board members in all subsidiaries.
Transparency and communication
Hydro’s corporate culture embodies the principles of honesty and respect for others. The company’s ability to operate efficiently in the Norwegian market and internationally requires consistent and professional communication. Hydro adheres, therefore, to the principles of transparency, honesty and sensitivity when interacting with its stakeholders.
