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A Group Management Report and Management Report on Salzgitter AG IV. Risk Report 172 173
We have appointed an environmental officer for the Group whose task it is to concentrate and coordinate
environmental and energy policy issues across companies, to represent the Group in questions of
environment and energy policy and to manage cross-divisional individual projects.
The allocation of emissions allowances to a sufficient extent remains an important aspect. Trading
in CO2 emission certificates has been concluded for the first trading period (2005– 2007); we are
currently in the application stage in respect of the allocation of new CO2 emission certificates for the
second trading period from 2008 until 2012.
Risks from maintaining property can arise, especially from inherited contamination. We counteract this
risk, for instance, by fulfilling our cleanup duties. In terms of financial precautions, appropriate
amounts of provisions are formed.
Information Technology Risks
We counter risks arising in the field of information technology (IT) by developing and maintaining
a Group knowledge base in the form of IT services in our subsidiaries. This ensures that we remain at
the forefront of technological progress. The appropriate authority granted to the Group IT management
in matters of general policy in this area ensures the ongoing development of our groupwide
IT systems and forms the basis for the economic deployment of the required investment funds. We are
currently in the process of implementing our so-called back office project that aims at the technological
renewal of the hardware and software resources in the office communications area, in order to safeguard
their availability, maintenance and IT security at the highest level. Additional measures include
gradually streamlining historically evolved, heterogeneous IT structures in the Group.
Corporate Strategy Risks
We reduce our dependency on the economic cycle typical of the steel industry by expanding our holdings
portfolio on a selective basis. For more detailed information on our acquisitions, please see the
sections describing our strategy and selling opportunity management at the start of this risk report.
To secure our future earning strength, we are committing considerable investments to our Group
locations in Salzgitter and Peine. For more information, please see the Sections 1.3 “Strategy” and II.3
“Investments”.
We limit risks arising in the context of joint ventures in which we do not hold a majority stake, and which
are therefore not under our full control, by way of suitable reporting and consultation structures by
participation in supervisory committees and through contractual arrangements. Consequently, in order
to ensure the transparency of the 50% joint venture Europipe GmbH, members of the Salzgitter AG
Board are represented on its Supervisory Board. With regard to Klöckner-Werke AG, a listed company,
we ensure that this transparency is set in place through an audit committee attached to the Supervisory
Board. The task of this committee is to monitor risk management and material risks.
Risk Report