Governance and Ethics
Fostering a system of governance and accountability based on the principles of transparency, integrity, and independence, is key to ensuring operational excellence at Qatar Steel.
Qatar Steel’s commitment towards efficient and ethical leadership is driven by the company’s Corporate Governance Charter, which provides the principles for the Board of Directors in its foundation of independence and protecting shareholders’ rights.
Qatar Steel published a Code of Ethics and Business Conduct in 2010 and has followed it ever since. The Code is available to all employees in the company’s intranet. On a yearly basis all employees are required to acknowledge their acceptance of the Code. Additionally, it is also shared with stakeholders based on their request or as per
requirement on need-to-know basis.
The “Harassment Grievance Handling Policy” has been implemented and proven to be effective in our organisation. The policy encompasses various crucial aspects, including uniform treatment, time limits, employee grievances, employee discipline, domestic inquiries, the company’s policy on sexual harassment, and the information security policy.
BOARD OF DIRECTORS
Essential to Qatar Steel’s corporate governance strategies are its management systems. Continuously working to improve business practices that comply and even exceed international best practices, Qatar Steel holds ISO 14001 certification for its Environmental Management System (EMS) and ISO 9001 for its Quality Management System (QMS).
To ensure ethical conduct, the Board of Directors has approved a Code of Ethics and Business Conduct Policy. Additionally, two members are appointed as Ethics Committee members to oversee conflicts of interest.
Annually, a comprehensive declaration is signed by all board members, covering personal and business transactions, as well as identifying and addressing any conflicts of interest that may arise.
The Board Charter includes an approved Directors Remuneration Policy. In the case of the Board of Directors, their remuneration is determined by IQ on a fixed basis in accordance with the Articles of Association (AOA).
The Board and Committees Performance Assessment Policy is part of the corporate governance structure put in place to assess the effectiveness of the Board of Directors and the Board Committees.
Qatar Steel’s Integrated Enterprise Risk Management (ERM) framework is instrumental in driving value creation by facilitating the achievement of the company’s strategic, tactical, and operational objectives. This framework is supported by a culture that emphasises the importance of risk management at all levels of governance, including the Board, Board Audit Committee, Qatar Steel Risk Management Committee, and functional levels. Risk-based decisionmaking is ingrained in our culture, with risk assessments integrated into key decisions to mitigate business and strategic risks effectively. The ERM Framework is governed by the Qatar Steel Risk Management Policy, Qatar Steel Fraud Risk Management Policy, and Qatar Steel Business Continuity Management Policy. The Board Audit Committee has been entrusted with the oversight of these policies, ensuring that risks above the Qatar Steel Board Approved Risk Appetite and tolerance levels are properly mitigated or managed.Our risk management draws from established frameworks such as the COSO Framework and ISO31000:2009. Fraud risks, including corruption risks, hold significant priority within Qatar Steel, as demonstrated by the implementation of a Fraud Risk Management Policy in 2021. All business areas have identified key fraud risks, including corruption, aligning them with the Companywide Risk Management Policy and Code of Ethics. Company-wide awareness sessions have been conducted, ensuring comprehensive risk identification and assessment throughout the value chain. Emphasis has been placed on internal controls to safeguard assets and regulate behaviours pertaining to fraud and corruption risks.
A key risk faced in 2022 was related to the potential disruption of supply chain pipelines and activities due to the 2022 Qatar World Cup. This major event resulted in a significant influx of people in the country and the implementation of heightened security measures by the State of Qatar to ensure the smooth hosting of the games. However, through our proactive planning and organisation, we were able to effectively manage our supply chain activities, resulting in no disruptions to our operations. Over the next two years, we will gradually introduce the utilisation of risk stress testing and risk scenario analysis as essential inputs in our company’s strategy formulation and implementation. This exploration aims to assess the cost-benefit value associated with these risk management tools. By incorporating them into our decision-making processes, we can gain valuable insights into potential risks, evaluate their impacts, and make informed strategic choices.
Qatar Steel’s Impact: Risk Management
In 2022, we successfully organised an annual Team Building event, featuring a presentation by the President of the Institute of Risk Management in Qatar. During the event, updates on ERM and business continuity management were shared, utilising realworld case studies. This informative session provided valuable insights and perspectives to the company’s leadership, emphasising the significance of reinforcing our existing business resilience and fostering a strong enterprise risk management culture. By leveraging these learnings, we aim to enhance our ability to identify and mitigate risks effectively, ensuring the long-term success and sustainability of our organisation.
Qatar Steel’s Impact: Climate Risk
The company’s top 10 risks, which are actively monitored by the Risk Management Committee and the Board Audit Committee, include climate-related risks. To address them, the company prioritises the evaluation and implementation of key initiatives that promote climate-friendly processes and technologies. It is mandatory for all new projects and initiatives across the company to consider climate-friendly approaches. To mitigate the risks associated with floods, the company has comprehensive business continuity plans in place. These plans outline specific measures and strategies to address flood-related risks. Continuous monitoring of operational activities is conducted to ensure that none of these activities contribute to the risks of rising sea levels and flooding.
The role of Internal Audit remains pivotal in the governance and management systems of our company. It serves as a crucial assurance mechanism, ensuring that adequate systems, policies, and procedures are in place and being adhered to ensure the achievement of the company’s objectives and safeguarding of its assets.
Furthermore, the Internal Audit function provides reasonable assurance that the systems and procedures are in place and being adhered to ensure timely and accurate reporting to the directors, management, and stakeholders. Additionally, it assures that the policies and practices are in place to monitor the company’s compliance with appropriate laws and regulations.
The Board Audit Committee continues to provide valuable support to the Board in fulfilling its oversight responsibilities. This includes ensuring the integrity of the company’s financial statements and financial reporting processes, evaluating the effectiveness of internal control systems, and overseeing the internal audit processes.