Equal opportunity

Our continuing objective is to be a truly open and inclusive employer. In this environment, with zero tolerance for discrimination, all employees have equal opportunity to achieve their full potential – resulting in a more diverse workplace.

Our commitment

At Swedish Match we put equal opportunities first and foremost in our work toward non-discrimination and diversity. We are dedicated to having an open and inclusive work environment where all our employees shall have equal opportunities to achieve their full potential, regardless of personal status. We work diligently to ensure there is zero tolerance for discrimination. As such, we take a proactive approach against structural discrimination and toward increased diversity at all levels within our company.

The scope of this focus area is our own operations.

Our goal

Our continuing goal is to be a truly open and inclusive employer. In this environment, with zero tolerance for discrimination, all employees have equal opportunity to achieve their full potential – resulting in a more diverse workplace.

No employees should feel that they are, or could be, the subject of discrimination at the workplace.
To have at least 40 percent of each gender in senior management.
To increase diversity in cultural backgrounds.

Our approach

Decentralized functions for Human Resources

At Swedish Match, we have a decentralized Human Resources (HR) organization as regulations and societal context vary between countries. Many initiatives are taken each year to ensure that we create and maintain an inclusive work environment. For example, we provide access to ongoing training, gender equality programs, equal pay analyses and equal employment opportunity efforts. Through the HR Council, we provide a platform to facilitate a common ground within the Group. The primary focus is on exchanging ideas and knowledge. Employee well-being is tracked through a global employee opinion survey.

Zero tolerance for discrimination

We are committed to non-discrimination in all employment practices, policies, benefits and procedures. Neither employees, nor potential employees, should feel that they are or could be the subject of discrimination at Swedish Match. All violations are taken seriously. Procedures are in place to ensure that swift action is taken to investigate and resolve employee concerns without fear of retaliation. There are several different ways in which an employee may raise a concern, including talking to the employee’s manager, or the manager’s immediate manager, division heads, or the HR or legal departments. The employee may also file a complaint anonymously through the whistleblower function which is available on the Company’s Intranet. The global employee opinion survey includes parameters on discrimination.

Diversity

We are convinced that a diverse workforce and diverse management groups are positive for our business. Diversity adds value in and of itself, and a balanced workforce improves our chances of recruiting the best talent. We believe that gender and cultural background are the areas where there may be a higher risk for potential discrimination and/or areas where the Company could benefit most from an increased focus.
We work with our Company culture to make sure that it is inclusive and promotes diversity. This includes tangible initiatives, that are recognized to address diversity relating to gender and cultural background. We follow all applicable laws related to discrimination and the protection of minorities and we look for and react forcefully to any indications of discrimination, including with regard to salary. We also work to make sure we find the best candidates, and that also means that in external recruitments we shall always seek out diversity in the candidate pool.

To encourage greater diversity at the management level and for employees throughout the organization, KPIs have been established for the US and Sweden to track and report externally on the number and percent of managers and other employees who fall under certain classifications. Since 2017, our businesses in both the US and Sweden are required to present status reports within their organizations, on both a total unit level and with regard to management, pertaining to protected groups and those from other cultural backgrounds or country of origin.

In Sweden, information is being gathered to identify the number of employees who are either born in Sweden, in countries outside of Sweden, or who have two parents born in another country. In the US, ethnic or racial background is a factor which is reviewed.

Gender balance

We believe that gender diversity at all levels of the organization benefits the Company in many ways. Gender balance targets are set locally striving for greater balance over time, particularly with regard to more senior levels within the organization. As such, we have a Group goal of having at least 40 percent of each gender in senior management¹⁾.

Since 2017, all divisions as well as corporate functions are required to present status and changes in gender balance within their organizations, on both a total unit level and with regard to management. These status updates are reviewed by the Group Management Team and provide greater awareness and involvement in the organization.

1) Defined as participants in the Group Long Term Incentive Plan, composed of 41 individuals in 2019.

Equality Plan

An Equality Plan, including comprehensive efforts on several actions for the Company’s operations in Sweden, Norway, Belgium and Switzerland is in place. Actions include various knowledge-enhancing activities, talent development programs, an Equal Opportunity Council, ensuring correct salary processes, and communication on role models. The action plan is based on the seven grounds of discrimination covered by Swedish law (sex, ethnicity, religion or other belief, disability, transgender identity or expression, sexual orientation, and age) and covers five areas: working conditions, salaries and other terms of employment, recruitment and promotion, training and other skills development, as well as work and parenting.

Fair and Friendly

The Fair and Friendly program is Swedish Match’s way of working for a fair and friendly work environment within the Europe Division and Corporate functions. The program is based on three cornerstones; fairness, inclusion and business value. The concept of Fair and Friendly encompass that Swedish Match should be and be perceived as a company that promotes diversity, is free from discrimination and where competence, performance, and attitude is what matters in recruiting, retaining and developing employees. The Fair and Friendly Council works with a mission to support the action plan by designing overall activities and ensuring that local activities help to promote a fair, welcoming and competitive Swedish Match. While the council works in an overarching manner to ensure a commonality of approach for this initiative, five local Fair and Friendly Teams, each team with a representative in the Council, work with initiatives to promote inclusion at a local level. Updates on actions and results are regularly published on the Company’s intranet.

Affirmative Action Plan in the US

In the US, all employers are required by law to ensure equal employment terms. In addition to the US legal requirements, Swedish Match completes Affirmative Action Plans annually to analyze and monitor equal opportunity initiatives. An Affirmative Action Plan is a strategic tool to ensure that we as a company are taking proactive steps to attract, hire, train, promote and retain protected groups, ensuring equal pay for equal work and establishing “Good Faith” efforts to move toward fuller representation. In this analysis, we compare our workforce to the relevant labor force, establish goals and timetables for correcting areas of opportunity, develop plans to reduce areas that are not fully utilized with minorities and women and monitor our progress.

Our progress

Highlights 2019

Fair and Friendly Council, within the Europe Division and Corporate functions, has developed guidelines for welcomed behaviors. The guidelines clearly show how we work together to create a workplace environment where we respect each other and take advantage of our diverse perspectives.
Within our US operations, a field sales recruiter has been employed to more actively pursue a more diverse workforce.
An anti-harassment/discrimination training has been launched (on-site) for all employees in the US, completed by 97 percent of the employees.
Successful recruitment and retention of females in our facilities in the Dominican Republic, helping to ensure that an equal number of males and females interview for job openings, while also strengthening processes to help ensure salaries are paid by position and promotions determined by performance on the job.
Continued focus on female applicants within SMD Logistics (Sweden) to help ensure an improved balance between female and male employees.
An equality compensation in the event of parental leave introduced in the Company’s Swedish operations when sharing the parental leave evenly with the child’s other custodian (when there is one) to promote equitable parental leave.
Working opportunities provided for people who have difficulties accessing the regular labor market, at Swedish Match Lighters BV, in Assen (the Netherlands) by working closely with the Social Workplace which employs people with different disabilities. These employees are formally employed by the Social Workplace, but by working on site, they are regarded as any other Swedish Match employee.

Progress update

Senior management gender representation¹⁾	2019	2018	2017
Total number of senior management	41	42	46
Share of female members in senior management, %	17	21	15
Share of male members in senior management, %	83	79	85

1) Defined as participants in the Company’s Long Term Incentive (LTI) program.

Group management and Board of Directors¹⁾	2019	2018	2017
Total number of members in Group management	8	8	9
Share of female members in Group management, %	13	13	22
Total number of members in Board of Directors¹⁾	10	10	10
Share of female members in Board of Directors¹⁾, %	30	30	40
Total number of members in Board of Directors appointed by the Annual General Meeting	7	7	7
Share of female members in Board of Directors appointed by the Annual General Meeting	43	43	43

1) Swedish Match AB, including employee representatives.

Employees	2019	2018	2017
Total number of employees^{1) 2)}	6,712	6,036	5,240
Share of female employees, %	40	41	39
Share of female managers³⁾, %	26	27	22
Share of female white-collar employees, %	34	34	32
Share of female blue-collar employees, %	43	43	45

1) The figure for total number of employees represents figures at December 31. Due to differences in methodologies, this figure does not correspond to the figure for average number of employees.

2) Including temporary employees.

3) Managers with direct reports.

Employees on discrimination¹⁾	2018	2016	2014
Share of employees who agree that their working group is free from discrimination at work, %	92	94	92

1) The Group employee survey is conducted regularly. In 2016 the question was if the employee was free from discrimination at work. In 2018 the question was broadened to refer to the employees working group.

Cultural background, affected group’s share¹⁾, %	2019	2018	2017
Employees
Sweden	24	26	25
The US	16	17	17
Managers²⁾
Sweden	11	13	12³⁾
The US	10	10	10

1) In Sweden the affected group is defined as managers born outside Sweden or born in Sweden with two parents born outside Sweden. In the US, the affected group is defined as non-caucasian.

2) In Sweden the managers are defined as managers and any other employees with one of the hundred highest salaries in the Swedish Match workforce.

3) Revised due to adjusted data from SCB, Statistiska centralbyrån.

Going forward:

Efforts and actions on local plans within Fair and Friendly Council and teams will continue.
Efforts on making the facilities in the factory in the Dominican Republic completely accessible for people with disabilities.

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