Financial solidity and long-term profitability ensure that Sika remains a reliable and value-adding partner. They represent important cornerstones to maintain global technology leadership and market penetration, from design and construction, to refurbishment. By evaluating economic impacts, risks and opportunities deriving from investments in assets and innovation, Sika strives to focus on opportunities that deliver optimized value for its customers in the form of durable solutions, and create returns that benefit shareholders.
Economic health enables Sika to share value created with its various stakeholders, be a reliable employer, an attractive long-term investment opportunity, a responsible taxpayer, and a good corporate citizen, helping communities to flourish. Eventually, economic value creation simultaneously helps improve the economic, environmental, and social conditions of Sika and its stakeholders, and is therefore an aspect of high importance.
Standards and Compliance
Sika has a Group-wide, culturally well established and integrated Compliance Management System (CMS). The Group pursues a holistic approach to compliance and engages the whole organization throughout hierarchies, functions, and geographical areas.
The Sika compliance organization provides guidance to the Group on compliance matters, develops new tools and procedures, addresses compliance cases with the support of other corporate functions having compliance responsibilities (HR, Controlling, EHS, Quality, Procurement, etc.), always in close cooperation with line management. Regional Compliance Officers and Local Compliance Ambassadors operate in close cooperation with the Regional Managers, Area Managers and General Managers.
Through its tax principles, internal policies, and actions, Sika is committed to be a “good corporate fiscal citizen” in pursuit of a long-term sustainable tax strategy, while fully and efficiently complying with national and international tax laws and regulations. Sika’s tax approach is in line with OECD/G20 guidelines and their general objectives.
By following a business-oriented approach based on functions, assets, and operating risks when determining processes and transactions, Sika has a market-based outcome where a fair amount of taxes is paid in each jurisdiction in which the company operates. The outcome of the business-oriented approach is always checked for its compliance with all applicable laws. Such an approach results in an effective Group tax rate which reflects Sika’s global footprint, the decentralized nature of the business, and the Group’s successful local operations.
Direct Economic Value Generated and Distributed
Sika creates sustainable value for its customers, the supply chain and other stakeholders. The company distributes the derived economic value to various stakeholders. This includes governments through taxes, employees through compensation and benefits, shareholders through dividends, suppliers and service providers through raw material and service prices, and society through taxes and local community projects. Part of the value earned is retained in the company for further development of novel technology, acquisitions, capital investments, and to maintain a certain amount of independence from capital market fluctuations.
Task Force on Climate-related Financial Disclosures
The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) has developed voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders. The task force structured its recommendations around four themes that represent key aspects of how organizations operate: governance, strategy, risk management, and metrics and targets. In 2019, Sika started to address the recommendations, and to integrate them into the reporting structure.
Inspections and Audits
Inspections and audits are core elements of Sika’s comprehensive management system. They provide management at Group, regional, and local company level with a regular, independent assessment on whether activities in scope comply with official requirements, as well as with Sika’s own internal guidelines, principles, and risk management specifications. The inspections and audits thereby ensure the effectiveness of the relevant processes and controls at Sika.