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Note 8: People safety

Overall performance indicators for people safety show that the company continues to make improvements towards the targets set for 2015. Implementation of the people safety programs coincides with a continued decrease in the number of injuries to employees, supervised and independent contractors. Our behavior-based safety program, which actively engages all personnel in identifying and addressing at-risk behavior, has been tailored to the needs of our non-manufacturing personnel and rolled out. Our main performance indicators for people safety are the total reportable injury rate (TRR) and the lost time injury (LTI) rate. Employee and supervised contractors total [...]

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Strategic focus areas

[...] at different stages in the project development. This sustainability assessment covers eco-efficiency, health and safety, process and product safety, natural resource and raw material requirements, and environmental impact. Embedded safety and sustainability We continue to be viewed as a leader in sustainability. In 2014, for the third year in a row, we were ranked top of the Materials industry group on the Dow Jones Sustainability Index. We have now been ranked in the top three in our sector for the last nine years. While we remain proud of these accomplishments, we are committed to improving even further in order to achieve our sustainability targets. For example, [...]

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Overview of risks

[...] benefit plans wherever possible, but we still have a number of defined benefit pension and healthcare schemes from the past. Generally, these schemes have been funded through external trusts or foundations, where AkzoNobel faces the potential risk of funding shortfalls. Mitigating actions Our policy is to offer defined contribution schemes to new employees and, where appropriate, to existing employees. The most significant defined benefit schemes are the ICI Pension Fund and the AkzoNobel (CPS) Pension Scheme in the UK. Both are closed to new entrants. They are managed and controlled by independent trustees. The funded status of these schemes is affected by the [...]

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Note 1: Managing our sustainability agenda

Strategic focus Our sustainability agenda incorporates economic, environmental and social aspects across the value chain. By focusing on the full value chain, we will drive business, resource and engagement benefits The importance of sustainability to running our business is firmly integrated into the AkzoNobel strategy. As well as being a strategic focus area, it is one of the three core principles (safety, integrity and sustainability) that provide the foundation for our company values. In addition, sustainability is being embedded into our new company-wide processes, including Innovation, Commercial excellence and Talent management. Sustainability helps us to [...]

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Note 2: Reporting principles

Reporting scope This Report 2014 integrates our financial and sustainability reporting and is addressed to readers interested in both areas. In particular, we seek ways of linking sustainability performance to business results in areas such as resource efficiency, carbon emission reduction, eco-premium solutions, safety, people development and engagement, and operational eco-efficiency. The information in this Report 2014 offers an update on our implementation of the ten principles of the United Nations Global Compact (UNGC). More sustainability information is available on our corporate website, including an index of the Global Reporting Initiative (GRI) G4 [...]

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Economic/Governance/Social

[...] Committee number 23 24 24 9 11 – – Code of Conduct trained % of employees 95 95 96 95 NA 1 – – Health and Safety Fatalities employees number 1 2 2 0 0 0 0 Total reportable injury rate employees/supervised contractors /million hours 3.6 3.1 2.4 2.3 1.8 <2.0 <1.0 Lost time injury rate employees/supervised contractors /million hours 1.6 1.3 1.1 1.3 0.9 1.3 – Occupational illness rate employees /million hours 0.3 0.3 0.2 0.1 0.3 – – Total illness absence rate employees % 1.9 2.0 2.0 2.1 2.1 1.9 – Fatalities contractors (supervised plus independent) number 0 1 0 0 0 0 0 Total reportable injury rate independent contractors /million hours 3.0 3.5 4.2 [...]

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Note 5: Resource efficiency

[...] key areas of spend are being developed. These slates define a core list of preferred materials/suppliers. Health and sustainability aspects, such as product safety and environmental concerns, are key criteria applied. The objective is to migrate our materials/suppliers over time on to these core materials, making our value chain less complex and more sustainable. The slate approach gives clear information on potential business opportunities to improve our value chains – lower cost, improved sustainability and reduced risk. Supplier improvement plans We are also working with key suppliers to develop specific carbon footprint improvement plans, through operational [...]

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Value chain management

[...] for capital, the requirements include an eco-efficiency assessment, as well as a full review of health and safety, process and product safety, natural resource/raw material requirements and environmental impacts. The proposals are reviewed by subject matter experts, who give input to the Executive Committee, to provide a strong basis for the investment decision. Other value chain aspects While we focus on carbon footprint as a proxy for raw material and energy efficiency, our lifecycle assessment considers a range of impacts. In 2014, this included: Biodiversity We continue to work alongside the IUCN Leaders for Nature program following on from the 2013 hotspot [...]

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Measuring our impact in 4D

[...] chain, social capital can be enhanced by creating awareness and continuous improvement on issues around health and safety, rights at work and with local communities. To conclude, a study such as this increases internal transparency and creates a sense of urgency, while also improving the quality of strategic decision-making. Next steps The findings are already being used to make relevant improvements at the six plants in Brazil where the pilot was conducted. We’re also looking at scaling up the project and introducing it throughout our Pulp and Performance Chemicals business.

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Integrity management

[...] Conduct number of alleged breaches reported 245 295 151 170 Code of Conduct breakdown of alleged breaches Health and safety 18 42 8 15 Business integrity 112 152 82 90 Treatment of employees 112 101 61 65 Other 3 0 0 0 Code of Conduct investigation Code of Conduct alleged breaches investigated (in %) 100 100 100 100 Code of Conduct alleged breaches handled by the Compliance Committee (in numbers) 24 24 9 11 Code of Conduct alleged breaches handled by the relevant businesses (in numbers) 221 271 142 159 Substantiated Code of Conduct breaches (within year) 149 163 57 67 Substantiated Code of Conduct breaches (total, including breaches substantiated in a later year) [...]

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