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The approach involved strengthening our qualification, procurement, induction, management and communication processes.
Supported by international specialists, this approach has transformed contractor HSE performance and as a result is being rolled out globally.
Empowering employees In processes and empowered our employees to make decisions about their work and take responsibility for those decisions.
This philosophy allows employees to serve customers to the best of their ability, increases morale and achieves targets.
Diversity and inclusion We take pride in having a diverse workforce and providing an inclusive workplace for our people.
In approach by setting up a Diversity and Inclusion Global Steering Team, sponsored by our Chief Executive Officer.
This team is responsible for setting strategy, principles and targets in this area, reviewing performance and communicating progress.
The team is a highly visible advocate and champion for diversity and inclusion across the business.
In addition, Local Councils at select sites are responsible for translating corporate direction into ‘local’ needs and targets, heightening employee awareness and increasing management sensitivity.
Talent management Our global talent pool is defined as the tiers of employees Officer.
Our top talent pool is further defined as individuals that fall into three categories which includes performance and potential ratings by managers.
The three categories are Talented Professionals, Emerging Stars and High Potential employees.
In and higher) comprised 38% women which is on track to achieve our 2015 target of at least 40%.
Great Place to Work The ability to attract and retain talented employees is essential to achieving our business goals.
For Smith & Nephew, being a great place to work means providing a workplace where employees are proud and excited to come each day because they are making a difference for customers and patients.
Wellness programme Well-structured employee wellness programmes are proven to have very rapid payback against resources invested in their implementation.
Benefits include lower absenteeism, improved staff morale, fewer workplace injuries and increased productivity.
In build on what we had already established as part of our aspiration to be a ‘Great Place to Work’ and provide a harm-free workplace.
Our initial target was to implement programmes at facilities but this has been far exceeded as a direct result of employees embracing the initiatives.
Wellness programmes were extended to all our divisions and we saw some great examples of local teams gaining the full benefit of a varied programme at work.
Initiatives included wellness newsletters, health screening, provision of fruit in offices, promotion of physical activity, cholesterol testing and general health advice for work and home.
We were delighted when our Memphis facility achieved recognition as a ‘Healthier Tennessee Workplace’ from the Governor’s Foundation for Health and Wellness.
Caring for employees Group employee lost-time injury frequency dropped by 19% to 0.39.
This was driven by a sharp focus on managing risk, holding management accountable and engaging employees in behavioural based safety programmes and supported by extended employee wellness arrangements.
Behavioural based safety campaign The ‘Don’t drop the ball’ campaign is all about raising awareness of safety in the workplace.
This initiative started in our Memphis facility and will be ‘rolled’ out across other divisions in the coming year.
Employees sign the ball, thereby pledging to put safety at the forefront of all of their actions.
Group lost time incident frequency rate (LTIFR) 2012 0.392014 0.48 0.51 2011 0.58 Our headline safety performance includes all employees and supervised contractors, it excludes unsupervised contractors.
Caring for employees Safe driving awareness campaign A targeted campaign focused on safe driving was launched in reduce the number of driving related injuries amongst our sales teams.
One element was to highlight the danger of sending SMS text messages whilst in the car.
Driving whilst on company business remains one of the most hazardous activities for our workforce and a renewed focus has helped to reduce injuries and increase awareness.
We are committed to continuously reducing our environmental impacts.
The environmental numbers contained in this report are absolute (not normalised).
On a materiality basis our manufacturing locations and distribution warehouses are responsible for approximately waste generated.
Since all environmental categories, our manufacturing capacity and volumes have increased substantially as a result of improved efficiencies, capital investments and acquisitions.
For example, between increase in the cost of production.
Whilst we do not regard this as a totally robust basis for normalisation, it is clear that the huge increase in beneficial production has had a significant impact on energy, water and waste numbers.
The energy reduction challenge Energy consumption increased by (+9%) to 194GWh against a 2015 target of 151GWh (-15%).
This increase was dominated by a transient consumption whilst commissioning new manufacturing capacity in China whilst continuing to manufacture in the UK (see case study).
A further 8.7GWh was added by newly acquired businesses.
The resulting net reduction of the implementation of energy saving projects but does not take into account the impact of the 19.6% increase in cost of production since 2012.
Taking the harm out of waste Total waste increased to value) against a 2015 target of 6,129 tonnes (-15%).
This rise does not take account of the increase in cost of production since 2012, nor the 968 tonnes arising from new acquisitions and the waste from the 2013 Hull, UK flood.
Our main success since harm out of waste by diverting landfill waste to recycling and energy recovery.
As a result, landfill waste has been reduced from tonnes since 2011 including a 19% annual reduction of 494 tonnes in 2014.
Landfill waste (t) – Absolute values 2012 2014 2011 2,662 2,168 2,826 3,401 Hazardous waste accounted for 5% of our total waste in 2014 and increased as a result of more types of waste being classified under this category.
A significant proportion of our hazardous waste is recycled or converted into energy.
We carried out a detailed waste survey in help us continue eliminate landfill and hazardous waste.
Reducing water consumption In (absolute value) against the 2015 target of 571,000m3 (-15%).
The underlying consumption of of 56,000m3 in China as part of a major energy reduction programme (see case study).
An annual reduction in water consumption of 49,000m3 (7%) was achieved in 2014.
The packaging challenge We faced unexpected challenges to our plans to reduce the volume of packaging used following an increase in the number of reports of products being damaged in transit as a result of packaging failure.
The focus was changed to rectify this issue and ensure robust, resilient and reliable packaging.
Some progress was made reducing tertiary packaging destined for airfreight and the new consolidated ‘Symphony’ new product development process will make it easier to optimise packaging during the early stages of product design.
New waste reduction initiatives in Switzerland Waste management initiatives and reductions at our facilities in Switzerland had reached a plateau but management teams were determined to make innovative improvements.
Throughout worked closely with the disposal companies to maximize the recycling opportunities and reduce environmental impacts.
This partnership has resulted in most waste being sent for energy recovery rather than landfill.
Supply chain activity In Europe we have continued to focus on reducing the need for airfreight.
In the US our team at the Global Distribution Centre in Memphis has been migrating shipments to Europe from airfreight to ocean.
We plan to work closely with our manufacturing partners globally to migrate more volumes away from air to more sustainable ocean transport in future.
Towards a paperless sales organisation Sales force effectiveness has been enhanced by making all approved promotional material available to sales representatives and customers from anywhere around the world, at any time.
This task is accomplished by migrating all paper-based tools and documents to digital form and ensures accessibility through leading edge technology.
These actions enhance efficiency and reduce our carbon footprint.
We estimate our savings equate to equates to over 150 tonnes of paper saved in 2014.
In new facility in Suzhou, built to manufacture some products previously made in Florida, US and Hull, UK and also designed to accommodate future growth requirements.
Designed for lean manufacturing, the plant will use m3 of manufacturing space compared to our older facilities.
Some of this saving was achieved by using evaporation cooling towers for the dominating clean room cooling requirement.
Although this resulted in overall environmental impact is lower.
Impacts of the transition Ensuring continuity of supply to our customers requires an overlap of new plant commissioning with ongoing manufacturing in existing plants.
This resulted in an additional consumed in 2014 compared to 2011.
The clean room space, built with future growth in mind, provides optimum space from operating and energy perspectives.
However, in the short term, until it is fully utilised means the total energy consumed per unit of output is sub optimum.
Elsewhere we are implementing other strategic moves involving transferring key production capability to manufacture ACTICOAT◊ and polyurethane films to Hull, UK from Canada and Gilberdyke, UK respectively.
These projects are also planned to optimise efficiency, quality and environmental performance.
impact over the long term Our manufacturing footprint is going through a global optimisation programme to improve efficiency.
On completion, the environmental credentials are compelling but the impact on energy consumption through the transition is significant.
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Corporate giving Smith & Nephew contributes to the local community and wider society in many ways.
Not only by providing employment but also by recognising the impact we have on the well-being of people who live near to our facilities and responding to the needs of worthwhile causes worldwide.
All of these activities build strong employee morale.
We give both money and our employees’ time through volunteering as part of these efforts.
From time to time we provide grants and donations to non-profit and/or charitable organisations, medical institutions, accredited educational programme vendors, medical foundations or professional societies that are entitled to receive grants and donations under local laws.
We do not provide grants or donations to individual healthcare professionals (HCPs).
Under our corporate giving programme, we also provide funding or volunteer time to organisations that do not directly or indirectly involve HCPs or government officials.
This type of giving focuses on health and human services, education and the environment.
In steering group to drive our corporate giving strategy going forward.
Charitable donations Each year we contribute approximately adjusted pre-tax profits to charitable causes.
In product donations, with the remainder being educational grants and sponsorships.
Employee volunteering and community engagement grows Our employee volunteering programme is focussed on providing a positive social impact by supporting worthwhile causes engaged in health, human services, education and the environment whilst also contributing to employee well being.
Employee gift matching continues Our employee gift matching pilot programme continued in the US and the UK.
The programme allows employee donations to approved registered charities and non profit organisations to be matched by Smith & Nephew up to a pre agreed limit.
Working with young people in the Humber region ‘Enlight’ was an external event designed to encourage young people aged from the UK’s Humber Region to recognise their potential both as individuals and potential employees.
Smith & Nephew employees engaged with many young people by means of a SpeedMeet.
The SpeedMeet gave the young people a chance to talk directly to local employers about what they look for in an employee and how they recruit for their organisation.
It was a very rewarding event for the volunteers, especially as it gave them the opportunity to understand the barriers to employment that young people in the Humber region face.
Willing Hearts In our Singapore office, our employees helped the Willing Hearts organisation to prepare, pack and deliver and elderly.
Habitat for Humanity Employees from our Biotherapeutics facility in Fort Worth, Texas contributed to a construction project in their area.
Volunteering in Australia A Special Olympics day provided sporting opportunities for people with intellectual disabilities.
The main aim of this programme was to help build confidence in the participants by trying new sports and activities, with the emphasis on getting them moving and having fun.
We are committed to make a difference in the communities where we work through donations, training and employee involvement.