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Chinese (Simplified)
Turkish
Swedish
Slovak
Romanian
Polish
Dutch
Italian
Hungarian
French
Finnish
Spanish
English
German
Danish
Czech
Dear Shareholders
On behalf of the Board, I am pleased to present Bodycote’s Corporate Governance Statement for 2022. During the year, significant issues that the Board has dealt with included the COVID-19 pandemic and its continuing effects on the Group’s employees and markets, as well as the consequences of Russia’s invasion of Ukraine and the consequent sanctions, disruption and energy crisis. The Board, alongside management, sought to assess the risks of these events and contain their impact.
My role and that of the Board has been to guide the Group through these intense challenges and to ensure that our strategy remains appropriate and on-course. We were delighted to return to physical meetings during the second half of 2022 and to be able to resume plant visits as a group of Directors. Regular, open and constructive dialogue with shareholders continued in line with the Group’s broader commitment to meaningful engagement with key stakeholder groups. I met five
significant shareholders personally during the year, predominantly online, to discuss shareholder views of the Group’s strategy and performance. The Group’s key stakeholders and their differing perspectives are identified and taken into account, not only as part of the Board’s annual strategy and corporate planning discussions, but also in project assessments and general Board conversations.
These discussions and assessments focus not only on delivering value for shareholders, but also address the impacts of our decisions and strategies on all stakeholders and are a key aspect of our culture. There is a clear emphasis on setting the tone from the top and leading by example.
In line with the Director’s Duties, the Board’s engagement with employees, shareholders, customers and communities in 2022 is explained in our stakeholder section on page 18 of the annual report. The Directors receive regular reports on safety and health performance to support their oversight and decisions.
Environmental issues are becoming of greater importance to the Group’s business and have been specifically discussed by the Board as a whole on several occasions during the year. The Board conducted a review of the existing sustainability processes and has established an ESG policy. The Board agreed to join the Science Based Target initiative (SBTi) and management has established targets, which have been accepted by SBTi and made available on its website. A further focus is on improving the effectiveness of communicating the Group’s actions in this area and the role of Bodycote as an energy aggregator, and therefore carbon optimiser, in its customers’ supply chains. Further information on Boardactivities can be found on pages 48 to 56 of the annual report.
Ensuring high standards of business conduct is critical for the success of the Group. Employee Engagement Groups led by the designated Non-Executive Director, Patrick Larmon, are in place and virtual meetings took place during the year. The feedback from these forums is reported to the Board and the Executive Directors charged with addressing any particular items that arise. Topics discussed at the Employee Engagement Groups included COVID-19 and safety, IT improvements, communications and operational matters.
Feedback was generally positive, and no material concerns were expressed by employees during the year. In response to employee suggestions, the make-up of the employee and management attendees to these meetings has been amended to allow for improved responsiveness to employee questions.
Succession planning is a regular topic for discussion, although the outcome of these discussions is only visible from time to time when new appointments are made. For each appointment we are looking to appoint an outstanding candidate, with a diverse range of experience, to maximise Board effectiveness. When we think about diversity, we recognise that this can take many forms including diversity of gender, nationality, social, ethnic background, and of cognitive and personal strength. Diversity at Board level and throughout the Group is recognised by the Board and management as a valuable strength.
All Directors will attend this year’s Annual General Meeting which will provide an opportunity for all shareholders to ask questions of the Board. I look forward to meeting any shareholder who can join us at our Annual General Meeting and extend my thanks to you all for your continued support.
Daniel Dayan
Chair
Dear Shareholders
On behalf of the Board, I am pleased to present Bodycote’s Corporate Governance Statement for 2022. During the year, significant issues that the Board has dealt with included the COVID-19 pandemic and its continuing effects on the Group’s employees and markets, as well as the consequences of Russia’s invasion of Ukraine and the consequent sanctions, disruption and energy crisis. The Board, alongside management, sought to assess the risks of these events and contain their impact.
My role and that of the Board has been to guide the Group through these intense challenges and to ensure that our strategy remains appropriate and on-course. We were delighted to return to physical meetings during the second half of 2022 and to be able to resume plant visits as a group of Directors. Regular, open and constructive dialogue with shareholders continued in line with the Group’s broader commitment to meaningful engagement with key stakeholder groups. I met five
significant shareholders personally during the year, predominantly online, to discuss shareholder views of the Group’s strategy and performance. The Group’s key stakeholders and their differing perspectives are identified and taken into account, not only as part of the Board’s annual strategy and corporate planning discussions, but also in project assessments and general Board conversations.
These discussions and assessments focus not only on delivering value for shareholders, but also address the impacts of our decisions and strategies on all stakeholders and are a key aspect of our culture. There is a clear emphasis on setting the tone from the top and leading by example.
In line with the Director’s Duties, the Board’s engagement with employees, shareholders, customers and communities in 2022 is explained in our stakeholder section on page 18 of the annual report. The Directors receive regular reports on safety and health performance to support their oversight and decisions.
Environmental issues are becoming of greater importance to the Group’s business and have been specifically discussed by the Board as a whole on several occasions during the year. The Board conducted a review of the existing sustainability processes and has established an ESG policy. The Board agreed to join the Science Based Target initiative (SBTi) and management has established targets, which have been accepted by SBTi and made available on its website. A further focus is on improving the effectiveness of communicating the Group’s actions in this area and the role of Bodycote as an energy aggregator, and therefore carbon optimiser, in its customers’ supply chains. Further information on Boardactivities can be found on pages 48 to 56 of the annual report.
Ensuring high standards of business conduct is critical for the success of the Group. Employee Engagement Groups led by the designated Non-Executive Director, Patrick Larmon, are in place and virtual meetings took place during the year. The feedback from these forums is reported to the Board and the Executive Directors charged with addressing any particular items that arise. Topics discussed at the Employee Engagement Groups included COVID-19 and safety, IT improvements, communications and operational matters.
Feedback was generally positive, and no material concerns were expressed by employees during the year. In response to employee suggestions, the make-up of the employee and management attendees to these meetings has been amended to allow for improved responsiveness to employee questions.
Succession planning is a regular topic for discussion, although the outcome of these discussions is only visible from time to time when new appointments are made. For each appointment we are looking to appoint an outstanding candidate, with a diverse range of experience, to maximise Board effectiveness. When we think about diversity, we recognise that this can take many forms including diversity of gender, nationality, social, ethnic background, and of cognitive and personal strength. Diversity at Board level and throughout the Group is recognised by the Board and management as a valuable strength.
All Directors will attend this year’s Annual General Meeting which will provide an opportunity for all shareholders to ask questions of the Board. I look forward to meeting any shareholder who can join us at our Annual General Meeting and extend my thanks to you all for your continued support.
Daniel Dayan
Chair
© 2023 Bodycote
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