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Implementing SustainabilityLessons from AkzoNobel
Hans van Haarst
Annual Conference for Central Government
October 13, 2010
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AkzoNobel Overview01
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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
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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
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Sustainability in AkzoNobel02
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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
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World class purchasing
Supportive supplier visits
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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
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An innovative, low solvent product portfolio
VOC’s
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Waste
Zero waste via operational efficiency
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People Development
Developing the talents of our people: advanced leadership programs
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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
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2 - Make the data visible
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3 - Walk the talk….and talk the walk
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4 - It is the right thing to do
You
=
AkzoNobel
Sustainability has a strong business case
Sustainability
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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
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Implementing SustainabilityLessons from AkzoNobel
Hans van Haarst
Annual Conference for Central Government
October 13, 2010