Sustainability: Governance

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OUR BUSINESS 30

Sustainability We want to become


the sustainability
leader in our industry
Making the world work better starts with have also committed to the science-based
Governance – executed through social and
our contribution to a fair and inclusive Targets initiative (SBTi) and have launched environmental sustainability
society and a healthy planet. This has specific initiatives within food waste reductions Our commitment to sustainability is anchored
always been a determining factor in and electrification of our fleet globally. in the Board of Directors and the Executive
Group Management. See Our governance
the way we operate our business and
Leveraging our enterprise and integrating structure on p. 43.
it remains a critical part of our current environmental sustainability initiatives into
strategy execution. This is also why everything we do, allows us to identify and drive Our approach is based on the foundation of Social
we carry out our sustainability efforts initiatives to reduce customer emissions through our vision, core values, dynamic stakeholder
Improve belonging
through two equally important lenses: our 350,000+ onsite placemakers across the engagement, as well as existing and emerging
• Diversity
social and environmental sustainability. globe. Our operating model enables us to share sustainability trends, risks and opportunities.
our best practices, ensuring that what works • Social mobility
somewhere, we will do everywhere. Enabling and The Group’s Sustainability and Corporate Strategy • Health & Safety
In 2022, we launched the ambition of cham- engaging our site teams is key for us in having an Departments are responsible for updating and
pioning sustainable workplaces, driving true impact today – we should not wait to have all our executing our sustainability efforts, with support
sustainable change through both social and future solutions finalised – we can make a real from in-country sustainability resources.
environmental sustainability. The dual focus difference for our customers today.
ensures that we can continue to strengthen Corporate sustainability starts with our value
our competitiveness and support growth in our
Materiality assessment system and a principles-based approach to doing Environmental
next phase of strategy execution. business. This means operating in ways that, at a
Reduce carbon
In 2022, we conducted a materiality assessment minimum, meet fundamental responsibilities in
During the year, we progressed significantly on across our various stakeholders. The purpose of the areas of human rights, labour, environment • Energy
our ambitious sustainability journey. Both within the assessment was to anchor the sustainability and anti-corruption. That is why ISS has been • Waste
our own enterprise and in the way we support our topics that are most material to our business. a signatory to and an active member of the • Materials
customers in achieving their sustainability targets. The findings confirmed the importance of UN Global Compact since 2001 and why we
our people and governance and showed that have incorporated the Ten Principles of the UN
Within social sustainability, we launched a new Em- insights and data must be at the core of ISS and Global Compact into our strategies, policies and
ployee Value Proposition (EVP), further developed integrated across the business. The priorities procedures, and thereby establishing a culture
2022 sustainability ratings
our Diversity, Inclusion & Belonging agenda and include: of integrity that not only upholds our basic
introduced an ambition to become the Company responsibilities to people and planet, but also AA
of Belonging. For further details, see p. 32. • environmental: carbon, energy, and waste sets the stage for long-term success.
• social: occupational health, safety and 14.1
Within environmental sustainability, we an- wellbeing, decent working conditions and a
56
nounced our commitment to reach full-scope diverse and inclusive workplace
net-zero greenhouse gas emissions by 2040. • governance: ethical business practices and 67 (Silver)
Furthermore, we have been deploying moni- anti-corruption, human rights and labour
toring and tracking technology and integrating standards in the supply chain and responsible C (2022)
carbon management in our service products. We procurement practices and supplier conduct
OUR BUSINESS 31

Environmental sustainability
At ISS, we recognise the full scope of the climate programme is based on best practices across
and environmental crisis, and we are fully com- ISS and is designed to provide a workplace Emission impact Business activity
mitted to operating our business and delivering environment free from microorganisms with
our services in a sustainable way. We believe verified hygiene standards to minimise the Scope 1 (direct) Arising from sources under our control, e.g., company
that it is our societal responsibility and inherent risk of infection. The methodology and choice 69,581 tonnes CO2 eq. vehicles, gas emissions and refrigerants
our licence to operate. of chemicals delivers significant sustainability
Scope 2 (indirect) Arising from the consumption of purchased electrical energy,
outcomes in terms of water and chemical
7,084 tonnes CO2 eq. heating and cooling and district heating
Reducing our impact on the environment is fun- reductions. In 2022, the programme reduced
damental to our success and future growth. We water consumption by 11 million litres of water
Scope 3 (indirect) Arising from business travel and our supply chain, including
aim to create long-term value for our business and 450 thousand litres of chemicals. The effort
1,569,421 tonnes CO2 eq. purchased goods and services
and the world around us by addressing our is supported by global training programmes and
main environmental challenges and reporting dedicated product ownership.
our performance regularly and transparently.
Another example is the energy management ser- Commitments Progress 2022
The world is changing rapidly. With the impacts vice we provide across customer portfolios. A team
of climate change, energy crisis, resource scarcity of ISS energy managers working in collaboration Science-based target • Submitted science-based targets in December 2022
and waste overload affecting all of us, ISS wants to with key account stakeholders and local delivery in line with the Paris that support an ambitious decarbonisation journey in
become the sustainability leader of our industry. teams to carry out onsite optimisation to reduce Agreement goals line with the Paris agreement and our own net zero
electricity and gas consumption across an estate. commitments
Progress on commitments With consumption data for the sites supplied,
ISS’s impact on the environment primarily comes ongoing savings are calculated to quantify the
from our supply chain, including purchased goods benefits being delivered. This successful service Net Zero targets • Implemented technology solutions for monitoring
and services. Therefore, collaboration with our product has provided 10%+ evidenced savings in Scope 1 and 2 and tracking
suppliers is key to reducing our environmental total addressed energy consumption. by 2030 • Integrated carbon management in our service products
footprint. That is why we have committed to am- • Engaged our account and site teams to take ownership of
bitious science-based and net-zero targets across TCFD Full Scope 3 by 2040
net-zero journey
our full scopes 1, 2 and 3 emissions by 2040. We remain committed to implementing
the recommendations of the Task Force on
In 2022, ISS collected data regarding the level Climate-related Financial Disclosure (TCFD). In Electrify our fleet • Entered a vested partnership with Lease Plan with joint
of scopes 1, 2 and 3 emissions related to our 2022, we strengthened governance by building ~20,000 vehicles by incentive to rapidly reduce emissions
business activities. We used 2019 as the baseline additional sustainability capabilities across the 2030 • Progress towards 1,500+ vehicles by end 2022
year, and data show that our scopes 1 and 2 organisation and sharpened our strategic offer-
emissions account for 5% while our biggest ing and value proposition. Importantly, through
Greenhouse gases The Cool Food Pledge and innovative menu planning helps
opportunity lies in Scope 3, which represents our intensive work on setting and submitting
25% by 2030 us commit to and achieve a science-based target to reduce
95% of our total emissions. our science-based targets for validation by the
the climate impact of the food we serve:
SBTi, we gained significant insights into our
Food waste • Reduced food waste by 527 tonnes, 1.3 million meals
Our Pure Space Office product is an example of climate-related risks and opportunities that will
50% by 2027 and 2,269 tonnes CO2 (annualised value), in partnership
how we systematically standardise the cleaning form part of the basis for further implementing
with Winnow food waste reduction system
methodology in office environments. The global climate-related financial disclosures in 2023.
OUR BUSINESS 32

Company of Belonging
Continuous training and develop- objectives, our Diversity, Inclusion & Belonging  commit to giving 100,000+
We
2
ment as well as creating an environ- agenda and our Employee Value Proposition placemakers or their family members a
ment where our placemakers can (EVP) and People standards. recognised qualification by end 2025 Our strategic
feel safe and thrive as their authentic
In addition, we have set out three core areas We take pride in investing in our placemakers
approach to
selves are not only important from
a social sustainability point of view.
to measure success in achieving our ambition, and currently offer multiple qualifications from belonging creates
They are key to delivering on our
which are employee engagement, employee
retention and customer retention.
courses in competencies for frontliners to aca-
demic qualifications for leaders. In addition to
value for all
strategy and our purpose of connect- the formal qualifications we currently offer, our
ing people and places to make the Our signature objectives core development programmes serve to equip
world work better. all placemakers with opportunities to grow.
Our three signature objectives will accelerate Placemakers Partners
us on the journey towards becoming the Global Offering 100,000+ placemakers or their families a Living wage and Fair and lasting
For more than 121 years, we have been centered Company of Belonging. formal qualification by end 2025, is our pledge to opportunities relationships built
around our employees. We call them our place- be even more intentional with the development op- to grow on collaboration
makers. Every day they go above and beyond in Together, our signature objectives are a purposeful portunities that are available to our placemakers. and trust
delivering outstanding services to our customers. and intentional promise to deliver better outcomes Offering leading career development opportunities
To ensure we continue to deliver on our strategic for our placemakers, their families, our partners will create happy and purpose-led placemakers
ambitions and our purpose, we launched a new and the communities in which we operate. who feel motivated to provide better outcomes for
and bold cultural ambition in 2022: to become our customers and facilitate social mobility.
the global Company of Belonging.  pledge, working together with policy
We Investors Customers
1 Positive brand More innovation,
makers, our customers and suppliers, to  e partner with all stakeholders to
W
As an employer of 350,000+ placemakers, with increase the implementation of living
3 impact attracting better service
demonstrate the value that all
more than 40,000 customers in more than wages across our industry placemakers bring to our workplaces, talented and experiences and
30 countries worldwide, ISS has an ever more striving for continued recognition and diverse leaders, aligned values
significant impact on people and societies. By paying a living wage, we ensure that our respect leading to better with ISS
Through building an environment where every placemakers earn a wage that meets their outcomes
employee feels accepted, empowered and everyday needs and enables them to afford a We will play a leading role in combining the
able to thrive as their authentic selves, we will decent standard of living for themselves and efforts of all our stakeholders to ensure greater Society
create better experiences and more sustainable their families. In addition to supporting the lives recognition and respect for the work that our Sustainable growth
outcomes for our placemakers, partners and of our placemakers, paying a living wage has placemakers perform every day. This is our and social mobility
their communities. many benefits for our customers, as greater commitment to all our placemakers. Through
financial recognition for the dedicated work partnering with our stakeholders globally, we
Our cultural ambition is based on a set of funda- being performed by our placemakers improves can hugely impact the way we recognise and
mental commitments, which combine in service employee engagement and enhances retention, show respect for those who make the world
of our ambition, including our three signature leading to higher quality service outcomes. work better.
OUR BUSINESS 33

Employee value proposition Our diversity, inclusion Diversity, inclusion


Gender balance
and people standards & belonging agenda Corporate
– corporate leadership
leadership: target 40% and belonging
To underpin our commitment to our placemakers, ISS is built on a foundation of equity, fairness, activities in 2022
we launched a global employee promise and value and respect for all individuals. Diversity, inclusion 64% 36%
proposition (EVP) in September 2022: A Place and belonging are inherent to our DNA. Men Women
• Gender Balance Month, globally
To Be You. This is closely linked to our cultural 2022 • Cultures, Race & Ethnicity Month
ambition of becoming the Company of Belonging. Only through intentionally nurturing a diverse • 2nd Year Pride webinar
and inclusive workplace can we build and • Partnership with Nestlé Youth
A Place To Be You embodies our values and strengthen this sense of belonging and a culture Foundation as Part of our Age
culture and articulates our promise to our where every placemaker feels that they can and Generations
placemakers, globally. We see you, we hear bring their best selves to work. • 1st global Diversity, Inclusion
you, we believe in you and we support you. Status on gender balance & Belonging Award at Global
Our commitment to fostering a culture of Our strategic approach Ensuring the right gender balance will lead to Leadership Conference
belonging is a great example of our values and Our global Diversity, Inclusion & Belonging greater innovation, improved organisational • International Day of People
purpose going hand in hand with our business (DIB) strategy is driven through five dimensions performance and better service to our custom- with Disabilities
needs leading us to become recognised as an of diversity: pride, gender, generations & age, ers. To progress sustainably in this area, we
employer of choice. abilities and cultures, race & ethnicity. Through focus on two wider goals: getting more women
our strategy we commit to taking a proactive into leadership roles and retaining our female
Maintaining and ensuring compliance with responsibility towards our surrounding commu- leaders, and building an inclusive environment
our Global People Standards is a cornerstone nities and local societies by reflecting diversity where they feel they belong.
in the way we operate as a business, but to and promoting inclusivity.
truly make people feel they can belong, entails We have defined a target to achieve 40% gender
safeguarding people safety as well. In 2022, we took significant steps to advance balance across corporate leadership roles by the
this. We defined three DIB actions in all end of 2025. As of 2022, the representation of
countries, aiming to drive inclusion. In addition, women in corporate leadership roles stood at
we finalised the launch of five global Employee 36% (2021: 35%). Progress in reaching gender
Resource Groups (ERG) – voluntary groups of balance at ISS is driven by several key levers and
ISS employees for each strategic dimension who supported by our talent strategy to develop and
work on concrete initiatives to promote inclusion retain a strong pipeline of current and future
and belonging. female leaders.

For a status on gender balance for the Board


of Directors and the Executive Group Manage-
ment, see p. 41.
OUR BUSINESS 34
4
4
Lost Time Injury 3 2.5 2.7 2.9
3 2.5 2.7 2.9
Developing and improving improved labour conditions relative to market Frequency - Blå 2
Employee turnover Lost Time Injury Frequency
2
norms in certain countries, and we sustained
the people experience the improved retention levels compared to the
1
1
2,50050 4 0
We take pride in the way we train our place­ pre-Covid 19 levels.
42% 0 2020 2021 2022
makers. Continuous upskilling and development 040 3 2.9 2.8 2.7 2020 2.9 2021 2022
35% 33% 33% 2.5
32% Target: < 2.5
are absolutely key in ensuring that we meet the (2,500)30
30%
Health & Safety – 2 Target: < 2.5
expectations of our customers. Throughout
2022, we continued to strengthen the way we
(5,000)20 a key priority 1

train and develop both frontliners and leaders. (7,500)10 In line with being a diverse and inclusive 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
workplace and as a vital part of living up to our
In 2022, our Country Leadership Teams com- people promise, our entire health and safety
pleted leadership workshops in our leadership agenda is pivotal for us to make our placemak-
model. Furthermore, our mid-level managers to our placemakers is key and the use of leading ers feel they belong to a company where respect
started to participate in our flagship leadership technology is a pre-requisite to achieve it. and protection of their mental and psychological Lost Time Injury Frequency
development programme – Leading OneISS – wellbeing is a key essential for everyone. LTIF differ and reflect diverse maturity levels
which supports further embedding of the right Our global employee platform – MyISS – serves to towards safety across the various cultures and
culture across the organisation. The programme digitally connect all placemakers and provides a Health & Safety initiatives remain a key focus and geographies in which we operate. In 2020 and
facilitates clear and structured feedback allowing unified access point and self-service functionalities help us keep the wellbeing of all stakeholders, 2021, ISS have completed most of its divestment
leaders to gain insights into their personal to make their working lives easier. The opportunity from our placemakers to customers, suppliers, programme, which included divestment of
leadership style, strengths, and development ar- for all placemakers to provide feedback will be and partners, top of minds. Safety is our highest business units that had an aggregated lower level
eas – in line with the core behaviours central to enabled and embedded into the platform. priority and collectively we work tirelessly to of LTIF compared to the Group. This increased
delivering OneISS. We also continued to deploy ensure that our placemakers go home safe to the Group’s underlying LTIF by approximately
the Placemaker’s Path – our career-long learning Listening to our placemakers consistently their families after a productive working day. 0.2 %-points. As a consequence and also due
and development programme – towards all not only enables a culture whereby we can to increased Loss Time Incidents following the
global key accounts and more than 450 local key proactively respond to our placemakers but can Tragically in 2022, we suffered one work-related higher activity levels linked to Covid-19 recovery,
accounts. The programme (beyond equipping measure the sense of belonging they feel within fatality, involving a placemaker working in an in- our LTIF increased to 2.9 in 2022, a slight increase
our people with the right capabilities) drives the ISS. We aim to baseline our engagement score dustrial environment. A working group of SMEs over 2021. The most frequent cause of Loss Time
right leadership behaviours across our sites – through a global listening survey. from across our business has been working with Incidents relates to slips, trips and falls, and we
helping us to become a Company of Belonging. the management team involved in the incident are launching updated campaigns and training
We invested in strengthening our operational Employee retention to ensure lessons learned from the tragedy are for managers and placemakers in 2023 to drive
capabilities with deployment of renewed Key We operate in a marketplace where levels of captured in detail. The review has driven a global further awareness on these types on incidents.
Account Manager Certification programme employee churn are inherently high. To action plan which will further strengthen our We are committed to reinforcing safety behaviour
and launching Site Manager Certification measure success, we are targeting a structural safety framework. across all sites that we operate and drive LTIF
programme through which we build capabilities improvement in our employee retention. Higher below 2.5.
enabling cohesive application of our scalable employee retention underpins a more consis- We also have ambitious plans that will strength-
operating model. tent, higher quality of service and reduces the en our Health and Safety framework from 2023.
costs associated with attracting, recruiting and They focus on creating even safer working
To retain and engage our 350,000+ placemak- onboarding new colleagues. environments for all placemakers and stakehold-
ers, we focus on offering superior people jour- ers within our business.
neys and create an employee experience where Despite an increase from 30% in 2021 to 33% in
people feel respected, valued and empowered 2022, our employee turnover rates have proven
to make positive changes to their working resilient through the cycle of Covid-19. We con-
environment. Our ability to listen and respond tinued to focus on retention initiatives, including

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