Risk Management

All business activities involve inherent risks. That also goes for the activities of the VELUX Group. We work proactively to manage risks in order to ensure a positive development of the company and to protect our people, assets and reputation.

The VELUX Group’s risk management policy ensures that key business risks are identified, assessed and mitigated. Our risk management system applies to the entire company.

What's the risk?

Environment and Climate Change 

Setting company-wide targets for the companys environmental and climate footprint is a challenge due to the continual changes of the production set-up of the company; for instance, insourcing and outsourcing of production and introducing new machines and processes.

While many energy efficiency and renewable energy initiatives may reduce the carbon footprint, new production methods or transfer of production may potentially increase our environmental impact.

Labour 

Providing good working conditions and upholding the freedom of association and the right to collective bargaining require unrelenting attention in a global and complex supply chain.

The same goes for avoiding all forms of forced and compulsory labour and child labour and for any form of discrimination. 

Human Rights 

Respecting human rights in a global and complex supply chain is a major task. Especially in countries where domestic laws do not always protect human rights.

Anti-Corruption 

Anti-corruption, including extortion and bribery requires constant focus, considering the complex nature of local regulations and customs.

New managers may not be aware of what is perceived as bribery and may, without knowing it, engage in such activities.

That could bring us in conflict with the law and adversely affect our Model Company Objective.

What is the action to mitigate the risk?

Environment and Climate Change 

VELUX CSR and Sustainability Policies including Environmental and Energy Policies deal with environmental issues in our business. To secure compliance, robust management practices and continuous improvements, all our production sites have implemented certified ISO 14001 environmental management and ISO 50001 energy management systems. Global processes are implemented to ensure that new products, production technology and facilities are environmentally reviewed in the design phase to reduce their environmental impact. Our environmental strategies take an integrated approach to sustainable products and production, focusing on carbon emissions, use of natural resources and waste management.

The VELUX Code of Conduct requires that our suppliers apply environmental management systems.  

Implementation of an internal and external whistle-blower system

Labour

The VELUX Code of Conduct for Suppliers explicitly enforces good working conditions, freedom of association, collective bargaining, no compulsory and child labour and no discrimination.

Our suppliers are obliged to ensure compliance with the VELUX Code of Conduct for their sub-suppliers.

We request confirmation of how suppliers ensure the company’s code of conduct during our supplier quality audits.

Implementation of an internal and external whistle-blower system.

 

Human Rights 

Implementation of an internal and external whistle-blower system.

Anti-Corruption

Any criminal activity and illegal breaches of the Anti-Corruption Policy, the VELUX Group Legal Policy, and the Competition Law Compliance Policy can be reported to a hot line or on-line in a new whistle-blower system launched on 1 January 2018.

The e-learning programme on anti-corruption was relaunched in 2017 and is mandatory for all VELUX senior managers.

Implementation of a competition law e-learning programme and the annual competition law compliance declaration.