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Sandvik Group

Corporate governance

Sandvik AB has its head office in Stockholm and is the Parent Company of the Sandvik Group, with subsidiaries in about 70 countries. The Group has about 40,000 employees and revenues in more than 150 countries. Sandvik AB is a public company with its shares listed on Nasdaq Stockholm.

Corporate governance within Sandvik is based on external rules such as the Swedish Companies Act, the Nordic Main Market Rulebook for Issuers of Shares, the Swedish Code of Corporate Governance (the “Code”) and other relevant laws and regulations. The Code is available at corporategovernanceboard.se.

  • Corporate governance reports

    Latest Corporate governance report

    Previous Corporate governance reports

  • Governance framework

    Sandvik’s corporate governance framework, The Sandvik Way, implements the external rules mentioned above and also sets out the internal rules and principles for governance that apply specifically within Sandvik. It is based on three building blocks, as set forth in the model below, and describes how common ways of working have been implemented throughout the entire organization.

    The Sandvik Way

    Governance structure

    • Shareholders' Meeting and Board of Directors
    • President and Executive Management
    • Business areas, Group functions
    • Divisions
    • Business units, distribution centers, production units, sales areas, sales units

    This block outlines how the Sandvik Group is led and governed. The Board of Directors, elected at the Shareholders’ Meeting, sets the strategic direction for the Group. The President carries this out through the Group Executive Management whose members manage and oversee the operations of the Group. The main operational responsibility in the Group lies with the business areas and divisions, with Group functions responsible for functional policies and processes supporting the business.

    The Sandvik Way is implemented in the respective business areas, with additional requirements cascaded down in the operational structure of each business area.

    Operations

    • Sandvik strategy, Risk management
    • Objectives and Key Results, Policies and procedures
    • Finance forecasting and scenario planning
    • External reporting
    • Performance management, Compliance and Speak Up
    • Internal control
    • Internal audit, External audit


    The detailed controls and risk frameworks common across the Group are detailed in this part. This includes many aspects such as strategy and risk management, policies, financial forecasting and scenario planning, as well as compliance, internal controls and audits. Performance management, controls and continuous improvements provide a solid basis for our ways of working.

    Continous improvements

    Corporate culture

    • Purpose
    • Core values
    • Code of Conduct
    • Leadership Model


    This block sets the foundation for how we all shape our culture in the company and enable a customer oriented and responsible business. Our operational controls and risk frameworks are underpinned by the ambitions and requirements of our purpose, core values, Code of Conduct and leadership model.

     

     

  • Sustainability governance

    The Sandvik Group’s sustainability governance is based on its business strategy, business model and international frameworks. Relevant goals are set to address material areas and to efficiently manage related impacts, risks and opportunities. Policies and management systems have been set to ensure financial, environmental and social compliance.

    The Sandvik Board of Directors has the overall responsibility for sustainability within Sandvik, monitored by the Audit Committee. The implementation is delegated to the President and CEO of Sandvik.

    The Group Executive Management has the overall responsibility for Sandvik’s sustainability strategy and agenda while the business areas and divisions are responsible for the implementation and follow-up. The Communications and Sustainability function is responsible for the coordination within the Group. The business areas are also responsible for the assessment and management of sustainability risks in their operations. KPIs are consolidated and reported to follow up on goals at Group and business area levels. Each year we evaluate our performance and set targets and focus actions for the coming year.

    The Sustainability Council is a forum for cooperation and best practice sharing across Sandvik. The Council is comprised of representatives from the business areas and Group functions. The Sustainable Business function coordinates the sustainability agenda together with the business areas.

    In 2022, the Board of Directors approved a new Sustainability policy and the targets for Science Based Targets initiative validation. During the year the Communication and Sustainability function reported progress and informed the Audit Committee on relevant sustainability topics. The Audit Committee and the Board of Directors have informed themselves and further discussed related topics, such as SBTi and CSRD.

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