Hydro Annual Report 2011b

70
vIABIlItY perForMAnCe
About the reporting
Complete makeover without moving out
When Hydro refurbished its 40-year-old Building Systems
headquarters in Milan, Italy, none of the 50 employees had to move
out of the building, and the company avoided the major costs
of renting temporary premises during the renovation period. The
refurbishment was a complete “makeover” where all windows were
replaced and outside insulation and new cladding added, in addition
to an interior upgrade and other modifications. The standard
after refurbishment is almost equal to the level of a new building.
Moreover, the restored building is designed to use at least 20
percent less energy than before. The most important reason for the
savings is the new aluminium windows with external sun-shading
devices, which together with the 14-cm thick extra layer of insulation
in the walls, has resulted in about 60 percent reductions in both
winter heat loss and summer solar gains. The refurbished building
has become a showcase for our building customers.
world-class production and improvement in our primary metal
business. AMPS builds on the principle of empowerment of
each employee.
The production system has been implemented at all our metal
plants, including the joint-venture plants Qatalum and Slovalco.
Our new joint venture, Albras in Brazil, has also started implementing
AMPS as a part of its improvement program based on
Hydro technology. Encouraging results have already been
achieved.
All employees in the organization are included in the process,
which involves e-learning, classroom training, on-the-job training
and job observation. AMPS includes an ongoing training
academy, which also includes a leadership development program
for all employees in management or supervisory positions.
So far, 750 managers and supervisors have taken part in the
leadership program, while all employees in the relevant business
areas have participated in different academy training sessions.
Implementation is an important part of our USD 300 per mt
cost-reduction program for primary production.
Our metal markets, extrusion and rolling activities have similar
systems adapted to their business needs.
About the reporting
Hydro’s main reporting for 2011 on viability Performance is
included in the Annual Report. In the web version of the Annual
Report, we have included supplementary information on
reporting principles (scope, definitions, explanation) and our
adherence to the voluntary AA1000 Accountability Principles
Standard (AA1000APS), drawn up by the Institute of Social and
Ethical Accountability. An index referring to the Global Reporting
Initiative’s Sustainability Reporting Guidelines and a Communication
on Progress report in accordance with the United
Nations Global Compact is also on the Internet, with links to
SuperLightCar
Hydro research scientists were involved in the SuperLightCar
Project, which won the InnoMateria Award for its pioneering use of
innovative materials in lightweight vehicle construction. The project
team consisted of 37 leading representatives from research as well
as the automotive and components supply industries from nine
European countries. The SuperLightCar Project investigated how to
best improve the material mix, particularly in the car body. Through
lightweight construction, aluminium offers clear advantages, not only
for sustainable use in large-scale production but also for long-term
environmental impact. In the end, the share of aluminium in the car
body increased to 64 percent of volume, and the vehicle was 35
percent lighter: a weight saving of 100 kilograms. The weight saving
is normally equivalent to a reduction of CO 2 emissions of 10 grams
per km.
the relevant information. The Communication on Progress is
included on page 80.
Principles for reporting on
viability performance
The purpose of Hydro’s reporting is to provide stakeholders with
a fair and balanced picture of relevant aspects, engagements,
practices and results for 2011 at a corporate level. We believe
that the reporting in total satisfies this purpose. Our reporting
on viability performance is in accordance with the main reporting
principles of the Sustainability Reporting Guidelines from
the Global Reporting Initiative and the requirements of the
International Council on Mining and Metals. The selection of
elements reported is based on extensive dialog with stakeholders
and proposals from them. In addition, the reporting builds on
processes that are part of our daily operations. Important stakeholders
include authorities, investors and financial analysts,
employees and their representatives, potential employees, customers,
non-governmental organizations and local communities
affected by major development projects or restructuring processes.
Reporting is not necessarily a target of the dialog process,
but when relevant, we use the outcome to improve our reporting,
see page 50.
We believe this approach is consistent with the principles of
inclusiveness, materiality and responsiveness required of reporting
organizations by AA1000APS.
We have endeavored to provide information that is in accordance
with the principles of sound reporting practice. The
absence of generally accepted reporting standards and practices
in certain areas may nevertheless make it difficult to compare
results with reports compiled by other companies, without the
availability of further data, analyses and interpretations.
Reporting scope and limitations
The scope of the report is Hydro’s global organization for the
period January 1 to December 31, 2011. In general, operations