sustainability lessons - hans van haarst

Implementing SustainabilityLessons from AkzoNobel

Hans van Haarst

Annual Conference for Central Government

October 13, 2010

AkzoNobel Overview01

AkzoNobel in brief

• The world’s largest paint and coatings company and a world leading chemicals producer

• Committed to delivering Tomorrow’s Answers Today

• Global Fortune 500 company

• For five consecutive years listed as one of the leaders of the Dow Jones Sustainability Indexes (Chemical sector)

Values

• Focusing on our customers’ future first

• Embracing entrepreneurial thinking

• Developing the talents of our people

• The courage and curiosity to question

• Integrity and responsibility in our actions

3Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview

Sustainability is integrated in everything we do

We have set ambitious sustainability targets:• Remain in the top three in the Dow Jones Sustainability Indexes • Reduce our total recordable injury rate* to 2• Deliver a step change in people development

We focus on long-term performance. By 2015 our ambition is:• That Eco-premium** products will make up 30 percent of sales• To reduce our cradle-to-gate carbon footprint with 10 percent• To achieve sustainable fresh water use on all our sites

We have linked remuneration to these targets and ambitions:• Our executive bonuses are linked to performance in the leading

sustainability index (DJSI)

* Total recordable injury rate refers to amount of incidents per million hours worked ** Higher eco-efficiency than main competitive product

4Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview

Sustainability in AkzoNobel02

The sustainability building blocks

Invent (tomorrow)Integrate sustainable

value propositions

Manage (today)Include

sustainability in all aspects of

the value chain

Improve (yesterday) Continue to comply and

ensure a license to operate

R&D Manu-

facturingSourcing

Salesand

marketing

Market research

Investment decisions

Level of development

Environmental Economic Social

Requiredeco-analysis

Supportivesupplier visits

Carbon andwater policies

Eco-premium

Code of Conduct

Stretchedsafety targets

Aspect of sustainability (linked to DJSI)

Examples

Leadershiptraining

ProductStewardship

Operational Eco-Efficiency

6Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

World class purchasing

Supportive supplier visits

7Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

Carbon policy

kg C

O2 p

er k

g p

rod

uct

Source: Sustainability Council June 18th 2008

Extraction Salt Chlor-Alkali Transportation Application Use

Suppliers AkzoNobel’s operation Customers

8Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

An innovative, low solvent product portfolio

VOC’s

9Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

Waste

Zero waste via operational efficiency

10Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

People Development

Developing the talents of our people: advanced leadership programs

11Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel

03 How to Successfully Implement? 5 Lessons

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1 - Sustainability is not a department

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• It needs to be part of the DNA of your people

• All functions in the company need to contribute

• Integrate it at work, at home and in social life

• Link to compensation

• Facilitate through small expertise and knowledge centres

Implementing Sustainability Lessons from AkzoNobel | 5 Lessons

2 - Make the data visible

14Implementing Sustainability Lessons from AkzoNobel | 5 Lessons

3 - Walk the talk….and talk the walk

15Implementing Sustainability Lessons from AkzoNobel | 5 Lessons

4 - It is the right thing to do

You

=

AkzoNobel

Sustainability has a strong business case

Sustainability

16Implementing Sustainability Lessons from AkzoNobel | 5 Lessons

5 – Put innovation and collaboration high on the agenda

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• Step 1: Use existing knowledge and concepts from within your company

• Step 2: Find and implement existing knowledge and concepts in other industries

•Step 3: Research and collaborate to address longer term un-met needs and issues

Implementing Sustainability Lessons from AkzoNobel | 5 Lessons

Implementing SustainabilityLessons from AkzoNobel

Hans van Haarst

Annual Conference for Central Government

October 13, 2010