ESG at SMS group
At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry. We recognize that our business operations have a profound impact on the world around us and we are dedicated to promoting sustainability, social responsibility and ethical governance across all aspects of our organization. The ESG principles are embedded within our corporate culture and guide our decisions, actions and interactions with stakeholders.
Focus areas of our ESG strategy
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Environmental responsibility
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Environmental responsibility
At SMS, we are committed to fostering a sustainable future by supporting our customers in reducing their ecological footprint. We understand that the greatest leverage lies in our innovative products and solutions, which are designed with environmental considerations at their core. By integrating Re-X principles – Reduce, Reuse, Recycle etc. – into the value chains of our customers and our own operations, we enhance circularity and sustainability.
Our approach prioritizes proactive measures to minimize ecological impact from the outset. We believe in preventing environmental harm before it occurs, rather than relying solely on compensatory actions. However, for residual impacts that are unavoidable, we responsibly employ compensation measures to mitigate our ecological footprint.
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Social commitment
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Social commitment
SMS envisions a world where communities thrive with the support of lifelong partnerships. We strive to ensure that our employees are not only satisfied and healthy but also feel valued throughout their careers with us. Our commitment extends beyond the workplace, as we aim to contribute positively to the communities where we operate, making them places worth living in for everyone.
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Governance for sustainability
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Governance for sustainability
Our governance structure is the foundation of our sustainability strategy. It is designed to continuously guide our business activities towards genuine sustainability. By considering all dimensions of the environment and viewing ourselves as lifecycle partners, we ensure that our governance framework supports our long-term vision of true sustainable business.
At SMS, we are dedicated to leading the way in ESG sustainability, leveraging our expertise to create a more sustainable industry and a better world.
Aligning with the UN Sustainable Development Goals
Participation in UN Global Compact
SMS group contributes to long-term sustainability development in alignment with the UN Sustainable Development Goals (SDGs). We participate in the UN Global Compact, a call to companies everywhere to align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption, and to take action in support of UN goals, such as the SDGs.
As part of our strategic approach, we have carefully mapped out and identified the six SDGs where we have the greatest impact potentials through an evidence-based analysis of our business and its broader potential effects. We recognize the interconnectedness of these goals and pledge to integrate them into our corporate practices and operations to support creating a more equitable, resilient, and prosperous world for all. Within our forward-looking approach, we continuously assess potential initiatives relating to the remaining eleven goals.
We have developed a comprehensive strategy that includes targeted measures to continuously improve our ESG performance and is based on our core corporate values – #Act, #Share, #Care, #Innovate and #Succeed:
Good health and well-being
WE CARE! We prioritize the safety, health, and well-being of our employees above all else.
Gender
equality
WE SHARE! We firmly believe in promoting gender equality within our organization.
Decent work and economic growth
WE SUCCEED! Supporting a safe, healthy and engaged workforce is fundamental to our business.
Industry innovation and infrastructure
WE INNOVATE! We are dedicated to shaping the future of the metals industry through continuous innovation.
Responsible consumption and production
WE ACT! As a dedicated lifecycle partner, we align closely with SDG 12's principles of responsible consumption and production.
Climate
action
WE ACT! We are resolute in our commitment to climate action and driving a greener future.
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Our ESG organization
SMS group has established a robust organizational framework to integrate Environmental, Social, and Governance (ESG) principles into its core operations. This framework is centered around an ESG platform designed to ensure that ESG considerations are systematically embedded in the decision-making processes across the organization.
The ESG platform is overseen by the ESG management team, which is responsible for steering the group's ESG initiatives and ensuring alignment with the company's overall strategic objectives. This team is the driving force behind the ESG integration process, coordinating efforts across various levels of the organization.
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Double materiality assessment
In line with the upcoming regulations, we have established a double materiality assessment (DMA) process to provide decision-makers with clear, evidence-based information. The DMA is a strategic tool that SMS group employs to evaluate the significance of environmental, social, and governance (ESG) factors from two perspectives: their effects on our company (financial materiality) and our impacts on people and planet (impact materiality). The DMA serves as a foundation for SMS group to prioritize initiatives, allocate resources effectively, and engage in continuous dialogue with our stakeholders. By understanding and addressing these material matters, we are committed to advancing our sustainability agenda and enhancing our corporate responsibility.
Diversity at SMS
Our commitment to diversity and strategic focus
At SMS group, we recognize that a diverse workforce is not just a moral imperative but a competitive advantage that drives innovation, growth, and the dynamic environment of our company. As a global leader in the metals industry, we understand that embracing a multitude of perspectives is essential to meeting the diverse needs of our customers and is a cornerstone of our economic success and identity. We are dedicated to fostering a culture where every employee feels valued, respected, and included, contributing to the well-being of all and the collective success of SMS group.
We prioritize gender and cultural diversity, recognizing these dimensions of diversity as areas where we can make the most significant impact. We are aiming to increase women's representation, particularly in technical and leadership roles, and to foster multicultural collaboration and mobility. To guide these efforts, we establish key performance indicators and diversity targets at the local level in group companies with more than 100 employees and are actively monitoring our progress at the corporate level.
Global diversity programs
Across the SMS group, we have implemented a variety of programs to support our diversity goals. These initiatives range from mentoring programs that foster career development to specific programs like Women@SMS grow, which is designed for the personal and professional advancement of our female employees. Moreover, Women@SMS aspire is a testament to our commitment to visibly increasing the number of women in leadership roles. This program identifies women with leadership potential, supports their development, and contributes to achieving a more balanced representation in our leadership team.
SMS global diversity committee
The SMS Global Diversity Committee is a group of employees from different group companies, providing representation from different backgrounds within the organization, who meet to discuss what actions are taking place on diversity and inclusion, how it’s working and sharing ideas about which steps to take next. The role of the Committee members is to share their insights and perceptions and act as a guiding institution especially for the local group companies on their DEI journey. The Global Diversity Committee also works in collaboration with the ESG Management Team to share their insights and help set targets for organization-wide alignment.
Commitment to the Diversity Charter
SMS group GmbH proudly supports the "Charta der Vielfalt" (Diversity Charter) in Germany, a commitment that we are actively extending throughout our global organization. This endorsement underlines our dedication to promoting diversity and inclusion at every level of our operations.
Our next steps and ambitions
- Building on initial successes, SMS is dedicated to integrating ESG criteria into additional organizational processes to further its commitment to sustainable practices.
- SMS is working towards attaining a group-wide Health and Safety multi site certification in line with ISO 45001 to ensure a consistent and high level of workplace safety across all entities.
- Following a comprehensive global GHG emission inventory, targeted strategies are to be defined to reduce our carbon footprint.
- By initiating the first survey of our workforce and assessing the current ESG performance across all entities, we aim to identify and address any existing gaps in our sustainability efforts.
- Definition of gender diversity targets for group companies with more than 100 employees.
- In addition to gender diversity, corporate cultural diversity targets should be set for the group as a whole and at top management level by the second quarter of 2025.