Governance structure
Board responsibility
The Board of Directors oversees Atlas Copco Group’s strategic direction, including financial and non-financial targets, to ensure sustainable, profitable growth. The President and CEO reports the Group’s performance to the Board on a quarterly basis.
The Board is the owner the Group’s Code of Conduct, guiding how employees and the Board should act towards each other and in relations to other stakeholders. They also, along with Group Management, prepare, review, and approve the sustainability report, including the material sustainability topic.
Group Management responsibility
Each member of Group Management is responsible for implementing and following up on strategies and targets, with the President and CEO holding ultimate responsibility. Progress towards these targets influences the variable compensation for Group Management and other employees. The Vice President Sustainability coordinates the Group’s sustainability efforts and reports to the SVP Chief Communications Officer, who is a member of Group Management.
Divisional responsibility
In line with our decentralized structure, our divisions handle implementation. These are separate operational units responsible for achieving results aligned with business area strategies and targets. Divisional presidents and local general managers ensure that targets are set and quantified in their three-year plans and that progress is tracked and reported to the Group.
Operational coordination
Safety, Health, Environment, and Quality (SHEQ) managers support sustainability efforts within operational entities and divisions, while Vice Presidents Sustainability coordinate efforts at the business area level.
At Group level, a sustainability team provides coordination and support, working closely with each business area’s SHEQ and sustainability representatives through two councils.
Councils
The Group’s SHEQ Council, chaired by a division president, includes business area SHEQ managers, sustainability representatives, the Vice President Sustainability, and representatives from HR, Holding, and Sustainability Controlling. The Council meets quarterly to discuss actions, policies, and guidelines to help the organization achieve its goals.
The Group’s Sustainability Reporting and Disclosure Council, chaired by the Vice President Sustainability, includes representatives from sustainability, legal, HR, and controlling. The Council meets quarterly to align on reporting requirements and agree on actions to close gaps in operational processes. It reports to a steering committee with Group Management representatives and Investor Relations.
