This integrated report combines our financial and sustainability reporting and is addressed to readers interested in both areas: shareholders, value chain partners and analysts. In particular, we seek ways of linking sustainability performance to business results in areas such as carbon emission reduction and eco-premium solutions.
The information in the AkzoNobel Report 2010 also serves as a progress report on our implementation of the ten principles of the United Nations Global Compact. The Global Compact Index on the website gives an overview of all the topics.
In our 2010 reporting we have made a conscious effort to extend our application of the Reporting Guidelines issued by the Global Reporting Initiative (GRI). The topics covered in this report were selected on the basis of the GRI guidelines, the sustainability aspects which form part of the AkzoNobel strategy and various external stakeholders. These include our engagement with external organizations such as Forum for the Future, the World Business Council for Sustainable Development and the World Resources Institute and third party questionnaires, notably the influential Dow Jones Sustainability Indices.
We have used the principle of materiality to assess the topics to include in the report, which are current and important for the company and key stakeholders. Our website includes a fuller review of processes in place.
This Sustainability facts and figures section summarizes the global, cross-business elements of the sustainability agenda and company performance. Specifically, it includes quantitative and qualitative information relating to the calendar year 2010 and comparative data for 2009, 2008 and 2007, which is based on the AkzoNobel portfolio, including the former ICI at the end of 2008. Data for 2005 and 2006 cover the AkzoNobel portfolio in those years, including Organon.
We report on consolidated data from entities where AkzoNobel is the majority shareholder (more than 50 percent) and joint ventures where we have management control, but exclude all data from entities where we have minority ownership, or no management control. Former ICI business Chemicals Pakistan has its own management board. The requirement to report on specific AkzoNobel sustainability indicators has been limited to HSE&S and compliance issues. Chemicals Pakistan was included in the Sustainability self-assessment benchmark process in 2010.
Previously, our policy was to report new acquisitions within one calendar year. From 2010, we reported from the date of purchase, recognizing that there may be reporting improvements required at these facilities. Significant changes which are reflected in 2010 data are:
- Acquisitions: Industrial Chemicals facility in Frankfurt (2009), Dow Chemicals Powder Coatings business (Q2 2010)
- Divestments: Chemicals Pakistan PTA (2009), National Starch (Q4 2010).
We introduced a revised set of HSE&S KPIs with detailed reporting guidance for 2009. There are a number of definition, calculation and reporting differences which impacted the comparability of data with 2007 and 2008: Total Reportable Rate, energy, CO2, NOx and SOx emissions. We identify these in the text and footnotes. More details are available on our corporate website.
In 2010 we changed our employee survey to Gallup Q12. The Gallup “grand mean” scores are not comparable with the previous survey’s percent favorable score.
Reporting process and assurance
The reporting period is 2010. Data has mainly been obtained from our financial management reporting systems, corporate HR information management system and the AkzoNobel and former ICI corporate reporting systems for Health, Safety, Environment & Security (HSE&S) performance indicators. We are confident in the overall reliability of the data reported, but recognize that some of these data are subject to a certain degree of uncertainty, inherent to limitations associated with measuring and calculating data.
Senior managers approved the content and the quantitative data used in the Sustainability facts and figures relating to their respective areas of responsibility. The integration of sustainability in day-to-day business is part of our routine internal audit process.