Hexagon Annual Report 2017

42 2017 AT A GLANCE BOARD OF DIRECTORS’ REPORT FINANCIAL STATEMENTS Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBI L ITY Hexagon Composites conducts its business in an economically, socially and environmentally responsible manner. The Group focuses on reducing its impact on the environment and providing innovative products enabling its customers to do the same. Good working conditions for employees and relationships with the local communities where the Group operates are key objectives. Hexagon prioritizes ethical conduct within its organization and supply chain including anti-corruption, product safety and respect for human rights. Social responsibility is an integral part of Hexagon Composites’ corporate governance process. Formal guidelines for corporate social responsibility are approved by the Board and integrated into the Group’s management systems. Compliance is assured through internal communi- cation and periodic training activities. The Board believes that the organization is characterized by strong ethical standards and a high level of integrity. In the opinion of the Board, good results have been achieved in integrating social responsibility considerations into the Company’s business strategies. The following discussion on corporate social responsibil- ity has been developed pursuant to Section 3-3 c of the Norwegian Accounting Act. Information is presented for the wholly-owned subsidiaries, Hexagon Lincoln (Lincoln (NE), U.S.), Hexagon Raufoss (Raufoss, Norway) and Hexagon xperion, which comprise the High-Pressure business area and for Hexagon Ragasco, the operating unit within the Low-Pressure business area. Operations for Hexagon Ragasco are located primarily in Raufoss, Norway. THE ENVIRONMENT Innovation Increased global focus on vehicle particulate matter (PM), NOx emissions and greenhouse gases (GHG) encourages customers and investments towards adopting natural gas, biogas and hydrogen. Overall, compressed natural gas is one of the cleanest burning fuels available today, producing 20-30% less greenhouse gas than conventional fuels. Biogas is a commercially viable fuel, supported by local and regional jurisdictions. Biogas is the most emission-friendly fuel available today. Biogas can rely on existing natural gas infrastructure and is based on proven technology. As a carbon-negative solution, biogas provides the world’s energy system with several advantages: it contributes to reaching climate tar- gets through reduced CO2 emissions and can improve air quality by being used as a vehicular fuel displacing petrol. Further, it advances energy security as it can be produced locally using available biowaste. Hydrogen is a clean and safe energy carrier that can be used as fuel for power in a wide range of applications, and can be stored on a large scale. Hexagon Composites is well positioned across the hydrogen value chain. Hexagon Composites believes that innovative storage and distribution solutions are key enablers to help its customers capture the cost savings available while reducing environ- mental impact. The Company’s high-pressure composite cylinders are typically around 30% of the weight and enable 70-150% more transport capacity compared with traditional steel cylinders. Weight is an important driver of fuel efficiency, which generates lower cost and emissions. In developing countries, many people rely on biomass such as firewood, charcoal and waste to meet their energy needs for cooking. This often results in unsustainable harvesting practices, as well as illness and premature death

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