Managing sustainability work at Valio
Sustainability is an integral part of all Valio’s operations. Systematic management of sustainability work supports the achievement of our shared targets and the recognition of changing regulations.
Governance model and responsibilities
The sustainability management model is based on the sustainability annual clock and governance model. The sustainability governance model includes a clear division of roles that covers the entire organization, from the Board of Directors to the operational level. Valio’s ESG Director is responsible for the internal management, coordination, and collaboration of sustainability work.
The Board of Directors ensures the prerequisites necessary for sustainable business operations and compliance. Valio’s Board of Directors approves the results of the materiality assessment and the content of the sustainability report.
Valio’s Executive Board is responsible for ensuring business operations that are sustainable and compliant with requirements. It oversees the sustainability impacts, risks, and opportunities at the top level and ensures sufficient resources for material sustainability topics. The Executive Board approves the sustainability focus areas and the sustainability targets and indicators. Sustainability indicators are integrated into management incentive schemes.
The Sustainability management team is comprised of heads of functions that are relevant from a sustainability perspective. The team oversees the effectiveness of sustainability principles and due diligence processes, tracks progress towards sustainability targets, and addresses current sustainability topics.
ESG cooperation groups are cross-organizational expert teams that implement environmental responsibility (E), social responsibility (S), and good governance (G) targets into practical action. In addition to these, Valio also has a few other groups that meet within the matrix to discuss material topics, such as product responsibility, animal welfare, and supply chain responsibility.
Identifying and managing material sustainability impacts
Double materiality assessment
The outcome of the double materiality assessment determines the sustainability themes material to Valio from the perspective of the company’s own human rights and environmental impacts, as well as the sustainability-related financial impacts on the company.
Significant sustainability-related business risks identified through the materiality assessment are addressed as part of business risk management. The double materiality assessment guides Valio’s sustainability work and reporting. The themes and standards to be reported are determined on the basis of the assessment results.
Due diligence process
Valio has a due diligence process in place to identify, prevent, and manage human rights and environmental impacts and risks in its own operations and in its value chain.
Transparent reporting and common standards
Our sustainability reporting is not just about compiling data; it is based on genuine transparency and internationally accepted standards. We are committed to communicating our sustainability performance in a manner that is comparable and reliable to all our stakeholders.
Compliance with regulations and standards
We ensure the quality of our reporting by complying with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). This ensures that we communicate our material sustainability impacts, risks, and opportunities in a manner consistent with other European operators.