Responsible business

A global mindset and responsible business conduct are key to NKT. We are committed to ensure a proper corporate governance and that we have the necessary processes, rules and policies in place.

At NKT, the Ethics & Compliance Board oversees the development and execution of our Ethics & Compliance program which we operate across the entire NKT Group and which is ultimately supervised by the Audit Committee on behalf of the Board of Directors. The Ethics & Compliance function collaborates with Financial Compliance on implementing internal controls to increase our efforts in detecting potential compliance issues. 

Good corporate governance is an ongoing focus area for NKT and is ultimately anchored at the Board of Directors of the NKT Group. Learn more on corporate governance here.

We operate a whistleblower hotline that can be used by both employees and external stakeholders to report concerns about unethical behaviour. Our employees are encouraged to speak up and we have a strict non-retaliation policy.

As a global company, we comply with both national and international trade controls, including economic sanctions and export controls. To ensure compliance, we operate a robust compliance program according to which all relevant business partners are screened to ensure they are not subject to any applicable sanctions or other relevant restrictions and all business transactions will immediately be terminated if that is the case. While we primarily operate in low-risk countries in relation to sanction and trade controls, the area is reviewed on a continuous basis.

NKT is a responsible taxpayer, and we base our tax reporting on responsibility, openness and transparency in all aspects of tax related reporting and compliance, wherever the company and its subsidiaries operate. We are committed to work with relevant stakeholders to drive transparency and the development of efficient tax systems and aim to follow recommendations of Good Governance on tax affairs in the countries in which the subsidiaries of NKT are located. NKT does not operate in tax havens and any future operations in tax havens will be of purely commercial reasons. 

As a signatory to the UN Global Compact, we are committed to conforming to all aspects of the Universal Declaration of Human Rights. We respect and abides by local labour law, and supports freedom of association, and all employees have contracts complying with local laws and regulations.

We recognize the importance of having clear governance to ensure the corporate integration of sustainability.  

Clear governance helps to ensure that decisions are taken at an appropriate level, that sustainability is prioritized and aligned with the business agenda and that the commitment to sustainability is addressed across the organization. 

In 2022, we established the ESG Committee, a Board of Directors’ committee charged solely with preparing resolutions to be taken by the Board of Directors in fulfilling its responsibility for oversight of relevant ESG policies, strategies and programs.

At NKT, the supplier due diligence approach includes supplier qualification, compliance and financial risk review and supplier audits (when required).The supplier due diligence is valid for two years and then needs to be re-performed. In addition, NKT Group Procurement conducts an annual supplier risk assessment, including if the supplier operates out of a high-risk country. The outcome of the supplier risk assessment feeds into supplier segmentation. The supplier segmentation prioritizes suppliers based on their strategic importance considering value & risk parameters. All A&B suppliers must be qualified, this process is governed and reported by the Procurement Process & System Lead.

We are regularly making a materiality assessment which enables the identification and prioritization of social and environmental issues presenting risks and opportunities for NKT and our stakeholders.   

The assessment also supports the visualization of global changes and trends and their potential effect on our business. It also helps reporting on the issues of greatest importance to relevant stakeholders.    Our interactions with stakeholders associated with sustainability related matters are done through several channels, utilizing methods such as interviews, surveys and informal dialogues.  In 2022 we performed a double materiality assessment. Please read more in the Sustainability Report.

We have corporate policies and rules in place which govern the compliance of NKT, our employees and business partners with relevant regulations, laws and our Code of Conduct. The tax policy can be found on our Investor Relations page