Sustainability governance
The administrative, management and supervisory bodies (GOV-1, GOV-2)
Board of Directors
Epiroc’s Board of Directors is the highest governing body for sustainability. The Board ultimately approves strategic direction, goals and targets. The Board oversees our performance on material sustainability impacts, risk and opportunities (IROs) and approves the double materiality assessment (DMA) results annually. Four times a year Epiroc reports on progress on sustainability goals and targets to the Board.
The Board safeguards that the organization complies with legal and regulatory requirements and oversees the implementation of governance frameworks, such as our internal management system, the Epiroc Way. The governance framework promotes ethical behavior, compliance, and effective risk management within the organization. Read more about the governance structure in the Corporate Governance section, which also includes information on the experience and professional background of the Board.
Selected ESG relevant Board committees
The Audit committee is responsible for the follow-up of the Group's financial risk management, financial and sustainability reporting, and internal control, as well as accounting and auditing. At least four times a year the Audit Committee discusses topics and reviews progress within sustainability together with CFO and responsible functions. During the reporting year, representatives from the Audit Committee have had several meetings with the CSRD project team to track progress, discuss its integration into our strategy and review data collection processes and internal controls.
The remuneration committee proposes principles for remuneration and terms of employment for members of Group Management and key personnel. Sustainability targets are included in the variable compensation plans for all Group Management members, including the President and CEO.
President and CEO and Group Management
Epiroc Group Management consists of the President and CEO and senior executive managers, see Group Management. It is responsible for establishing strategies, goals and policies for the Group based on the objectives set by the Board, including sustainability. It further oversees the operations and ensures that business activities comply with established policies and ethical standards.
Four times a year, progress on our sustainability goals and targets is reported to Group Management. In addition, two to four times a year, roadmaps with activities and progress on our 2030 goals, are reported by councils or boards to Group Management. Sustainability issues are presented to Group Management when needed. At these meetings, information to further deepen the collective knowledge about sustainability topics and sustainable development is also shared with Group Management.
Business Areas, divisions and operational entities
The Group is organized in two Business Areas: Equipment & Service and Tools & Attachments. Within the Business Areas, there are divisions that have the operational responsibility for specific products and solutions. Divisions are the highest operational units. The divisions develop, execute and follow up on the strategies and objectives within the division’s responsibility, and are responsible for delivering in line with the Group’s financial and sustainability targets. Following Epiroc’s decentralized structure the divisions are responsible for embedding sustainability-related matters into the division’s operations, targets, results and also drive implementation of our Code of Conduct and Group policies. Each division has administrative responsibility for a number of operational entities, such as customer centers, distribution centers and/or product companies. The General Manager of each entity is responsible for driving the change and improvement to meet sustainability targets, establish strategies, processes and trainings at entity level. Progress is reported in Company Review Meetings. Administrative responsibility includes compliance and understanding of Group policies and procedures as per our management system the Epiroc Way, and all legal requirements. Divisions and entities have support from local SHEQ & Sustainability Managers, other relevant functional managers, and business controllers.
Sustainability-related expertise
All Board and Group Management members have knowledge of sustainability related topics. They have diverse backgrounds and expertise in different sustainability related fields such as safety, business conduct and electrification. The Board is provided with information and training on relevant topics, for example in 2025 the Board had a training on CSRD. The Board and Group Management rely on and have access to various Group functions, internal steering forums and subject matter experts with sustainability expertise.
Our organization is based on the principle of decentralized responsibility, meaning most responsibility is delegated and lies with the divisions. Group functions’ main tasks are to provide expertise in different sustainability topics, support, collaborate and coordinate with the divisions in creating a uniform approach, provide policies, guidelines, tools and instructions. Councils and internal boards secure a common approach, coordinate common programs and projects, set strategies and consolidate progress for 2030 goals.
Selected ESG relevant Group functions
Group Strategy supports and coordinates the strategic development of the Group and the divisions.
Group Sustainability and SHEQ coordinates and drives sustainability for the Group and supports the Group with requirements and guidelines to improve performance in safety, health, environment and quality. Responsible together with Financial Reporting and Control for sustainability reporting.
Group Human Resources develops guidelines, working practices and tools to drive the agenda and enhance capabilities for human resources across the Group.
Group Strategic Sourcing develops tools, processes and training to support strategic sourcing across the Group.
Group Compliance is responsible for Epiroc’s Code of Conduct and Epiroc’s Compliance Programs including trade compliance.
Group Financial Reporting and Control is responsible for the reporting process, consolidation of sustainability data and ensuring compliance with regulatory and internal requirements. Responsible together with Group Sustainability and SHEQ for sustainability reporting.
Group Internal Control is responsible for the Internal Control Framework in Epiroc and is responsible for the design of the Internal Control over Sustainability Reporting and key control testing.
Internal Audit and Assurance is an independent and objective assurance function that provides an opinion on whether processes for managing and controlling are adequately designed and functioning effectively in Epiroc. Specific audit programs cover sustainability, safety, health, environment and quality.
Group Risk and Insurance is responsible for Epiroc’s enterprise risk management. Read more in chapter Risk management.
Selected ESG relevant internal steering forums
Legal and Compliance Board provides strategic direction, oversight, and support to ensure that legal and compliance management align with business objectives, regulatory requirements, and ethical standards.
Inclusion and Diversity Board is responsible for tracking progress, initiating activities, safeguarding progress as well as acting as ambassadors and leaders for achieving our goals and ambitions in this area.
Sustainability & SHEQ Council supports integration of the overall sustainability agenda as well as safety, health, environment and quality priorities. It drives strategic sustainability and SHEQ programs and activities across divisions.
People & Leadership Council leads the overall People & Leadership agenda and Human Resources function. This includes common initiatives, monitoring performance, sharing best practices, and safeguarding associated capabilities
Sourcing Council oversees defined strategic sourcing initiatives. Sustainability and compliance is a prioritized area which is reported to the council three to four times a year.
Marketing Council is responsible for communicating changes and for following up the implementation of the Responsible Sales Assessment Policy.
Sustainability-related incentive schemes (GOV-3)
Sustainability targets are part of the variable compensation plans for all members of Group Management. Final outcome for each member is conditional on the tangible progress made towards fulfilling Epiroc's 2030 sustainability targets, for example, on climate and safety, see Governance for long-term growth.
Relevant sustainability targets, such as safety, CO2e reductions, or a mix of targets, are also set for other managers and employees based on their roles and responsibilities.