Annexes

Materiality assessment

(GRI 103-1)

To determine whether an aspect is material, a combination of internal and external factors has been used. In the matrix below, the materiality of aspects have been ranked according to the following criteria:

1. Influence on stakeholder decisions:

• Frequency of reporting requests by individual aspect
• Rigor/stringency of stakeholder criteria by aspect

Material aspects (per category)

Economic:
1. Economic performance of the company
2. Promotion of social and economic development in the community 
3. Upstream sustainable supply chain
Environmental:
4. Energy and emissions
5. Water
6. Effluent and waste

Social:
7. Health and Safety
8. Learning and development
9. Child, forced and compulsory labor
10. Freedom of association 
11. Anti-corruption (ethics) 
12. Diversity and equal opportunity
13. Product and service responsibility
14. Human rights
15. Performance assessments

General Disclosure on Governance and ERM

(GRI 103-2) (GRI 103-3) (GRI 102-18)

Board of Directors (GRI 102-18)

The main tasks of the Board of Directors are to determine the company’s general policy, approve the strategy and supervise the activities. The Board of Directors is the company’s supreme decision-making body in all matters, other than those in respect of which decision-making powers are reserved to the General Meeting of Shareholders by law or the articles of association. The Board of Directors currently has fifteen members. Their professional profiles cover different areas of expertise, such as law, business, industrial operations, banking & investment banking, marketing & sales, HR and consultancy.

On 11 May 2016 the composition of the Board of Directors significantly changed. The new appointments have added complementarity, independence, competence and diversity of professional experience on the Board. One third of the Board members are female, in line with current regulations on diversity.
Bekaert Group Executive (GRI 102-18)

The Bekaert Group Executive assumes the operational responsibility for the company’s activities and acts under the supervision of the Board of Directors.

Enterprise Risk Management (GRI 102-11)

Bekaert’s 2016 ERM report includes among others, the following potential risks:

• overall pressure on profitability (e.g. general overcapacity in a weak economic environment);
• political/economic/social instability in emerging countries (e.g. Venezuela, Russia);
• globalizing competition;
• asset and profit concentration (e.g. in one city);
• intellectual property risk (overall and permanent risk);
• non-compliance risk with local regulations and with the Bekaert standards; 
• wire rod price volatility and source dependency; 
• evolution of environmental regulations; 
• creditworthiness of customers; and
• the risk of failure of the banking system in specific countries
  
  
  

General information on Sustainability reporting principles

Bekaert’s Sustainability Report 2016 was conducted according to the GRI Sustainability Reporting Standards, Core option (GRI 102-54). Global Reporting Initiative (GRI) is a non-profit organization that promotes economic sustainability. 

Bekaert’s responsible performance in 2016 has been recognized by its inclusion in the Ethibel Excellence Index (ESI) Europe - a reference benchmark for top performers in terms of corporate social responsibility based on Vigeo’s research - as well as in Kempen SRI.

In 2016, Bekaert was awarded a silver recognition level from EcoVadis, an independent sustainability rating agency whose methodology is built on international CSR standards. This good result places Bekaert among the top 30% of performers evaluated by EcoVadis.

In response to growing interest throughout the supply chain to report on the carbon footprint of operations and logistics, Bekaert also participates in the Climate Change and Supply Chain questionnaires of CDP, formerly known as the Carbon Disclosure Project. 

Memberships

Bekaert has numerous corporate memberships, including: (GRI 102-13)

1. Bilateral

• American Chamber of Commerce (several bilateral memberships)
• Belgian-Indonesian Chamber of Commerce
• Belgo-Indian Chamber of Commerce
• Chambre de commerce Belgo-Luxembourgoise pour la Russie et le Belarus asbl - Belgisch-Luxemburgse kamer van Koophandel voor Rusland en Wit-Rusland v.z.w
• Chambre de Commerce Franco-Belge
• Flanders-Chinese Chamber of Commerce (FCCC)
• EU-China Chamber of Commerce
• Benelux-China Chamber of Commerce