Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents The Ethics & Compliance function is a global function (second pillar) that is responsible for the global Ethics & Compliance program, sets standards and processes, and monitors the use and implementation of these. The function also manages the Group's Speak-Up process (whistleblower function) and performs risk assessments and internal investigations. The head of the function reports to the EVP Legal, Compliance & Governance. The regional Legal, Compliance & Governance teams support and guide the business managers in their daily work and support the implemen- tation of processes, standards and tools provided by the global function. Each region has appointed a designated Ethics & Compliance coordinator who forms part of the global Ethics & Compliance network. At each quarterly meeting with the Board's Audit and Risk Committee, the EVP Legal, Compliance & Gover- nance presents the progress of the risk-based compliance program and reports on any incidents and the status of ongoing investigations. The Audit and Risk Committee regularly monitors any matters that may require additional focus, as instructed by the Board. The internal investigation processes are monitored through quarterly reports to the Ethics Committee. A training and inspiration program in Responsible Leadership known as #itstartswithme has been established in the Group to ensure that all employees feel confident in making long-term and responsible decisions and to ensure that employees can report and discuss improprieties and challenges. Speak-Up process (whistleblower function) Getinge strives for open and transparent communication, internally as well as externally. All employees are encouraged to report any suspected violations of the law or the Group's Code of Conduct. This reporting can be made through Getinge's Speak-Up process, which provides an option for anonymous reporting. The Speak-Up process is available in eleven languages and is available for Getinge employees as well as suppliers, distributors and other business partners. Getinge has a strict policy for non-retaliation when reporting through the Speak-Up process and provides training to managers about the process for internal investigations and non-retaliation. Corporate Internal Audit Getinge has established an internal audit function called Corporate Internal Audit. The purpose of the Corporate Internal Audit within Getinge is to provide independent audit of operational governance in selected areas, with a focus on effectiveness and risk manage- ment (third pillar). The annual internal audit plan is based on the company's thorough risk analysis and function-specific and industry- related risk assessments. Internal audits are conducted for individual units and group-wide processes and within thematic areas. Each year, priority is assigned to a number of units, processes or themes for auditing, in which improvement areas are identified and graded based on their potential business impact. For all observations, an action plan is prepared in collaboration with each business owner. The Corporate Internal Audit function follows up, together with the business owner, to ensure that each observation is closed within the defined time frame. In 2022, the work to establish the Corporate Internal Audit function continued internally under Head of Internal Audit who reports directly to the Audit and Risk Committee and the Committee Chairman, but belongs to the management team for Legal, Compliance & Governance. GETINGE'S PRIMARY RISKS, CONSEQUENCES AND MANAGEMENT External shocks, such as geopolitical risks, natural disasters, terrorism, pandemics, etc. Description These are often quickly escalating situations that affect large parts of the world, a country, a region or a specific site. Potential consequences The primary consequence of this type of risk is that employees could be injured. There is also the risk of business interruptions that could have a negative impact on sales and earnings. Management Active business intelligence can detect some of these risks at an early stage and the Group will then have the opportunity to adapt to the new situation. The process of further enhancing the Group's work on continuity risks continued in 2022. As part of this process, scenarios based on external shocks will also be included in the risks that Getinge proactively works on. During the year, parts of the Chinese market went into lockdown as a result of new outbreaks of COVID-19, which caused certain delivery disruptions. On February 24, Russia invaded Ukraine. In financial terms, the continuing war may have a negative impact on the development of the Group's earnings and position. It is not possible at the current time to assess the direct long-term consequences. A potential indirect negative effect is that the supply of natural gas to the Group's plants in Poland and Germany may be affected. As a result, Getinge has taken mitigating measures. 51
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