Terrafame complies with the risk management principles adopted by its Board of Directors. The company identifies risks, assesses their impact on its operations and plans any necessary risk management measures.
The key safety, process, environmental and operational business risks are updated annually, and the results and measures are discussed by the company’s Leadership Team and Board of Directors. The company’s assessment of its environmental, safety and process risks is updated comprehensively every three years by examining thousands of individual risks. Since 2021, the risk management process has also included climate aspects.
Significant risks identified during risk assessment are reduced by technical improvement, investment and competence development, for example.
Climate-related risks and opportunities
Terrafame’s business operations play an active role in managing climate emissions from transport. The carbon footprint of the nickel sulphate produced by the company is considerably smaller than the industry average. The manufacturers of precursor materials for battery cells can significantly reduce their carbon footprint by choosing Terrafame’s product.
In its business operations, the company has identified opportunities related to climate change in terms of demand for its current and potential new products and the recycling of batteries, for example.
The identified risks related to climate change management mainly concern the procurement and prices of raw materials, as well as logistics, among other factors. The alterations to legislation caused by climate change are seen as both opportunities and risks.