Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — ESG Presentation
56 slides from Akzo Nobel's sustainability presentation
Slide 1: Tomorrow’s Answers Today
Tomorrow’s Answers Today How sustainability is shaping our business Sustainability is a requirement for business success: There Is No Alternative 1
Slide 2: In brief
In brief 1 What is sustainability? 2 What is sustainability for AkzoNobel? 3 Why is sustainability important? 4 Sustainability Today 5 Sustainability Tomorrow 6 Delivering Tomorrow’s Answers Today How sustainability is shaping our business 2 2
Slide 3: Sustainability means different things to different people
01 Sustainability means different things to different people How sustainability is shaping our business 3 3
Slide 4: Business principles
Business principles How sustainability is shaping our business 4 Our values, Code of conduct, complaints procedure , compliance training, zero tolerance for business integrity issues, daring to ask the right questions about business integrity issues are all part of embedding our business principles
Slide 5: Health, safety and environment
Health, safety and environment How sustainability is shaping our business 5 HSE management systems, strict safety targets, worldwide standards for HSE audits, process safety, targets to reduce our environmental footprint are all part of sustainability 5
Slide 6: Climate change
Climate change How sustainability is shaping our business 6 Climate change is a business reality, there will be a price on carbon emissions: Through energy efficiency measures and by using low carbon emitting and renewable energy sources we can strengthen our competitive position and contribute to c
Slide 7: Fair trade / community program
Fair trade / community program How sustainability is shaping our business 7 Community programs – maintaining our license to operate and corporate citizenship – are part of the sustainability process as well 7
Slide 8: Risk and reputation
Risk and reputation How sustainability is shaping our business 8 Sustainability in its early stages is often primarily focused on risk – and reputation management: e.g. reducing the risk of environmental liabilities ( Planet) , business integrity issues ( Governance), pension liabilities ( People) a
Slide 9: Corporate governance
Corporate governance How sustainability is shaping our business 9 Corporate Governance – oversight on the management of Health, Safety and Environment; Research, Development and Innovation Recruitment and Talent Development; Code of Conduct and Compliance; defining ambitions and ensure they are mana
Slide 10: Corporate responsibility
Corporate responsibility How sustainability is shaping our business 10 Corporate ( social) responsibility also refers to open and transparent reporting on our roadmap to sustainability 10
Slide 11: “Meeting the needs of the present without compromising…”
“Meeting the needs of the present without compromising the ability of future generations to meet their needs.” Gro Harlem Brundtland, 1987 How sustainability is shaping our business 11 An oft-quoted definition of sustainable development is defined in the Brundtland report Our Common Future and the w
Slide 12: What is sustainability for AkzoNobel?
02 What is sustainability for AkzoNobel? How sustainability is shaping our business 12 12
Slide 13: Simultaneous and ethical pursuit of profit, footprint, talent
Simultaneous and ethical pursuit of • Delivering profitable economic growth • Lowering our environmental footprint • Developing the talent of our people How sustainability is shaping our business 13 13
Slide 14: Creating value for customers, employees, shareholders, and society
In order to create value for our customers, employees, shareholders, and society at large How sustainability is shaping our business 14 14
Slide 15: Yesterday, Today, Tomorrow: the sustainability building blocks
Yesterday, Today, Tomorrow: the sustainability building blocks Examples Level of development Environmental Economic Social Invent (tomorrow) Integrate sustainable Carbon and Eco-premium Leadership value propositions water policies training Manage (today) Include sustainability in Sales Market Invest
Slide 16: Why is sustainability important?
03 Why is sustainability important? How sustainability is shaping our business 16 16
Slide 17: Social and environmental trends are re-shaping the competitive arena
Social and environmental trends are re-shaping the competitive arena How sustainability is shaping our business 17 17
Slide 18: Emerging markets, resource scarcity, climate change
Growth in emerging markets Scarcity of natural resources Climate change How sustainability is shaping our business 18 18
Slide 19: Growth in emerging markets
Growth in emerging markets How sustainability is shaping our business 19 19
Slide 20: From… How they used to live to how they live now
From… How sustainability is shaping our business 20 How they used to live to how they live now 20
Slide 21: To…
To… How sustainability is shaping our business 21 21
Slide 22: From… How they used to travel to how they travel now
From… How sustainability is shaping our business 22 How they used to travel to how they travel now 22
Slide 23: To…
To… How sustainability is shaping our business 23 23
Slide 24: The emerging middle class of the BRICs
The emerging middle class of the BRICs Number of people with income over $3,000 in the BRICs (in billions) 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0 2010 2020 2030 2040 2050 Source: Goldman Sachs Report, UN Global Compact July 2007 How sustainability is shaping our business 24 Additional information ( Goldman S
Slide 25: 2008: 900 million cars worldwide
2008: 900 million cars worldwide How sustainability is shaping our business 25 25
Slide 26: 2030: 2 billion cars worldwide
2030: 2 billion cars worldwide How sustainability is shaping our business 26 26
Slide 27: Room to grow
Room to grow Mature Emerging Per Capita Per Capita Architectural 8 liters < 2 liters Paint Industrial and Special Purpose 13 liters < 6 liters Coatings Plastics ~100 kg ~20 kg ~170 ~170 kg kg ~25 ~25 kg kg Paper Source: Food & Agriculture Organization of the UN, 2005 data for paper and paperboard; P
Slide 28: Scarcity of natural resources
Scarcity of natural resources How sustainability is shaping our business 28 28
Slide 29: Three ecological footprint scenarios
Three ecological footprint scenarios Number of planet Earths Source: Living Planet Report, WWF 2006 How sustainability is shaping our business 29 If AkzoNobel, as a commercial enterprise, still has to capitalize on technologies, open up markets with them, and then service those markets with products
Slide 30: Climate change
Climate change How sustainability is shaping our business 30 30
Slide 31: The most important consequences of climate change
The most important consequences of climate change 0°C 1°C 2°C 3°C 4°C 5°C Agriculture Declining harvest returns, most of all in emerging markets Increasing returns in geographically Decreasing returns in higher regions developed markets Melting of smaller glaciers, Higher sea level threat of Water s
Slide 32: Doing more with less
Doing more with less How sustainability is shaping our business 32 Essence of our strategy going forward. Huge potential to grow in the emerging markets but we need to do this using less resources 32
Slide 33: AkzoNobel has existed for nearly 300 years
The fact that AkzoNobel has existed for nearly 300 years is no guarantee we will do so the next 10 How sustainability is shaping our business 33 33
Slide 34: Trends re-shaping the competitive arena and our customers’ future
Social and environmental trends are re-shaping the competitive arena, and thus our customers’ future How sustainability is shaping our business 34 34
Slide 35: This game change challenges us to do what AkzoNobel is good at
This game change challenges us to do what AkzoNobel is good at: How sustainability is shaping our business 35 35
Slide 36: Deliver Tomorrow’s Answers Today
Deliver Tomorrow’s Answers Today How sustainability is shaping our business 36 36
Slide 37: Sustainability Today
04 Sustainability Today How sustainability is shaping our business 37 37
Slide 38: The sustainability building blocks
The sustainability building blocks Examples Level of development Environmental Economic Social Manage (today) Include sustainability in Sales Market Investment Manu- all aspects of Sourcing R&D and research decisions facturing the value chain marketing Improve (yesterday) Continue to comply and Prod
Slide 39: Market research and business intelligence
Market research and business intelligence Data and analysis How sustainability is shaping our business 39 Our ability to lower the use of energy, carbon emissions, raw materials, transport, distribution more efficiently than our competitors is a source of competitive advantage. Understanding sustain
Slide 40: Investment decisions
Investment decisions Eco-efficiency analysis €250,000,000 multi-site How sustainability is shaping our business 40 An eco-efficiency analysis is a comparative analysis of economic and environmental variables along six categories and is integral to every investment decision at AkzoNobel. While risk m
Slide 41: World class purchasing
World class purchasing Supportive supplier visits How sustainability is shaping our business 41 Started with a vendor policy in which suppliers were asked to sign a policy document, which was primarily a risk management process (i.e. they are required to confirm their adherence to our principles) No
Slide 42: Sustainable manufacturing
Sustainable manufacturing Bahia, Brazil Sustainable forestry Hydro power/bio- mass Chlorine-free bleaching Chemical island concept How sustainability is shaping our business 42 Sustainable manufacturing techniques give a competitive edge 42
Slide 43: R&D innovation
R&D innovation Innovative product portfolio UV clear coat: only 6 minutes to dry, less energy use, more thru- put for customer How sustainability is shaping our business 43 Research, Development and Innovation is key to sustainability because without innovation we will not be able to deliver the new
Slide 44: Sales and marketing
Sales and marketing Intersleek 900 $2.5 million savings 6% fuel reduction How sustainability is shaping our business 44 Fact is that 4% of all carbon emissions come from the shipping industry. Intersleek 900 guarantees fuel reduction (and therefore carbon reduction) of 6 – 8 %. If applied industry-w
Slide 45: Sustainability Tomorrow
05 Sustainability Tomorrow How sustainability is shaping our business 45 45
Slide 46: The sustainability building blocks
The sustainability building blocks Examples Level of development Environmental Economic Social Invent (tomorrow) Integrate sustainable Carbon and Eco-premium Leadership value propositions water policies training Manage (today) Include sustainability in Sales Market Investment Manu- all aspects of So
Slide 47: Creating even more value through sustainability
Creating even more value through sustainability How sustainability is shaping our business 47 47
Slide 48: Sustainability targets
By: Increasing turnover from eco-premiums Introducing Carbon reduction program Reducing VOC’s in products 100% Sustainable water use Zero waste through operational efficiency Top 5 in safety performance Step change in people development How sustainability is shaping our business 48 48
Slide 49: Eco-premium solutions
Eco-premium solutions Will account for 30% of AkzoNobel’s turnover by 2015 How sustainability is shaping our business 49 49
Slide 50: Carbon policy
Carbon policy kg CO2 per kg product Extraction Salt Chlor-Alkali Transportation Application Use Suppliers AkzoNobel’s operation Customers Source: Sustainability Council June 18th 2008 How sustainability is shaping our business 50 AkzoNobel contributes 3 million tons of CO2 from direct and indirect (
Slide 51: VOC’s
VOC’s An innovative, low solvent product portfolio How sustainability is shaping our business 51 Low solvent product portfolio gives a competitive edge in the low/no VOC world.
Slide 52: Sustainable water
Sustainable water Sustainable use of fresh water at all sites How sustainability is shaping our business 52 Water is pertinent to all our business processes: we need to ensure sustainable use of fresh water at all sites. Some of our sites have been impacted by fresh water scarcity: an underestimated
Slide 53: Top 5 in safety
Top 5 in safety Ambition is “zero incidents” How sustainability is shaping our business 53 Top 5 safety performance – compared to 20 peers identified in our Annual Report – doesn’t come easy. Commitment, motivation, engagement, empowerment … never be satisfied with our status quo.
Slide 54: Waste
Waste Zero waste via operational efficiency How sustainability is shaping our business 54 Waste is money, reduction can be achieved at end of pipeline; however biggest efficiencies, cost reductions are achieved through process optimization. Best resource are operators, maintenance managers, site man
Slide 55: People Development
People Development Developing the talents of our people: advanced leadership programs How sustainability is shaping our business 55 Sustainability fully depends on the skills of our people to develop solutions. Moreover sustainability attracts the best talent as people enjoy working for a company th
Slide 56: This is how we deliver Tomorrow’s Answers Today
This is how we deliver Tomorrow’s Answers Today How sustainability is shaping our business 56 56