Sound risk management is the very essence of a successful business and our procedures are clearly defined and enforced
Measures to ensure responsible business conduct and the identification and assessment of risks associated with social, ethical and environmental matters are managed in conjunction with all other business risks and reviewed at regular meetings of the board and the Group Management Committee (GMC).
The board has embedded environmental, social and governance matters into its risk management processes and formally reviews the area once a year. The board is ultimately responsible for social, environmental and ethical matters. Specific responsibilities are delegated to board committees and the minutes of the sub-committee meetings are presented at each board meeting.
The Group Management Committee (GMC) is the sub-committee of the board responsible for the day-to-day management of the company and is chaired by the Chief Executive. For details of board and GMC meetings and membership please see our Annual Report.
The GMC has approved policies on Environment, Health and Safety (EHS), Business Integrity and Ethics and Employment. These policies set out key objectives for assessment and control of risks and have been distributed to site management. The policies form the cornerstone of our commitment to continuous improvement in all aspects of social, ethical and environmental matters at all our operations around the world. They reflect our values and enable us to integrate our principles into practice in our business processes.
The GMC receives reports and minutes of the meetings of its sub-committees which address specific risk and control areas and review the effectiveness of risk management processes. Members of the GMC are free to raise points on the minutes presented. Risk and control issues are also addressed during the discussions on business performance in every GMC meeting. During the course of the meetings, key EHS, social and governance issues are reviewed.
The Group Policy Compliance Committee (GPCC) is a sub-committee of the GMC with specific executive responsibility for the identification and monitoring of EHS, social and governance risks. It sets and oversees compliance with group standards through the adoption, dissemination and implementation of appropriate group policies and other operational measures.
The committee meets several times per year and comprises division directors, the Director of Environment, Health and Safety, Director of Human Resources, the Company Secretary and senior representatives of Group Legal, Internal Audit and Group EHS. A summary of the GPCC's activities is presented to the board once a year by the Chairman of the Committee. At a strategic and operational level, a group sustainability team, chaired by the Group Sustainability Director, reports to the GPCC.
A separate committee in the US (the North American Compliance and Executive Committee, NACE) manages compliance issues within North America. It comprises senior management from the US businesses and meets quarterly. The role of the US committee is to ensure that legal and regulatory compliance is fully achieved. It is responsible for reviewing Johnson Matthey's policies in these areas and for ensuring all relevant employees are aware of these policies and their roles and responsibilities. In-country management committees are also in place in China and India.
Where possible, Johnson Matthey uses a rigorous scientific approach in understanding the risks to health and the environment associated with its operations and the products that it provides to the market place. In the absence of this scientific data, and where appropriate, the company uses the precautionary principle in its approach to the potential risks.
Enhancing employee understanding
We have programmes in place to enhance employees' understanding of Johnson Matthey's policies and commitment to their implementation to maintain and enhance the reputation of the company. The training educates managers in their responsibilities for employees, commercial contracts and company assets and is delivered globally via online learning programmes and seminars.