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Note 16: Human rights

[...] partners conduct on our behalf. The Code of Conduct is supplemented by directives on topics such as health and safety, anti-harassment and child labor. Our Code of Conduct and directives apply to all employees, in all countries in which we operate. Business Partner Code of Conduct We have a diverse supply chain and recognize the essential role our business partners play in helping us deliver our high quality and responsibly sourced products. Our Business Partner Code of Conduct sets out the responsible behaviors we expect from anyone we do business with, including our suppliers, distributors and agents. All new business partners are expected to apply the principles [...]

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Note 12: People safety

Overall performance indicators for people safety show that the company continues to make sustained improvement towards the targets set for 2020. Implementation of the people safety programs coincides with a continued decrease in the number of injuries to employees, and supervised and independent contractors. The overall TRR for employees and supervised contractors decreased to 1.4 (2015: 1.6), in line with our 2016 target (1.4) 75 percent of our sites have been recordable-free for more than one year (45 percent for three years or more) There were no employee or contractor fatalities during the last four years The lost time injury (LTI) rate for employees and [...]

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Key performance indicators – safety 2012 2013 2014 2015 2016 Target 2016 Ambition 2020 1 Phase 2 starting in 2016. People Total reportable injury rate employees/supervised contractors (per million hours) 2.4 2.3 1.8 1.6 1.4 1.4 <1.0 Behavior-based safety program implemented (% FTEs) 50 68 84 96 96 100 100 Life-Saving Rules implemented (% of sites) – 100 100 100 100 100 100 Process Regulatory actions (Level 4) 0 0 0 0 0 0 0 Loss of primary containment (Level 1) – – – – 16 – – Product Priority substances with management plan (%) 42 62 82 100 33 1 33 1 100 1 REACH compliance third phase (%) – – 15 23 57 50 100 Management Safety incidents (Level [...]

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Medium-term risks

[...] increasingly stringent continues and is in part a reflection of growing public concern about human health and the environment in general. Mitigating actions Conduct our activities in the safest and most responsible manner Contingency plans and assignment arrangements are in place to mitigate known material operational risks and monitor progress A dedicated group of experts assesses, manages and resolves environmental liabilities. Sites with a higher environmental risk profile are subject to management review periodically Mandatory annual environmental liability reviews are conducted to review risks, monitor progress in resolving our liabilities and assess changes [...]

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Compliance governance

[...] Group Controller and Directors of Compliance, Internal Audit, Human Resources, Sustainability and Health Safety and Environment. In 2016, two managing directors of AkzoNobel businesses were added as members to the committee to add further business expertise to its decision-making. Compliance organization Human Rights Committee In 2016, the Executive Committee established a Human Rights Committee which supports the Board of Management and Executive Committee in establishing, monitoring and assessing the company’s human rights policies and framework. It consists of the Directors of Compliance (chair), Internal Audit (co-chair), People Development, Occupational [...]

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– Economic value creation

[...] approaches in three units of our business. We carried out a full analysis of sustainability and product safety risks and opportunities for our product portfolios. This has been used to support product portfolio planning through our marketing and research and development teams. In addition, using our Customer-Focused Product Stewardship (CFPS) process, we have also engaged our customers on sustainability and product safety. The CFPS process allows us to align customer purchasing characteristics with their product safety and sustainability ambitions. We are further developing this methodology for product portfolio assessment together with other companies in the [...]

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Note 2: Reporting principles

Reporting scope This Report 2016 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. Our reporting principles are based on the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines, supported by internally developed guidelines as described in this Note. The information in this Report 2016 offers an update on our implementation of the ten [...]

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Note 1: Managing our sustainability agenda

Our purpose and strategic focus Our sustainability agenda incorporates economic, environmental and social aspects across the value chain. The importance of sustainability to running our business is firmly integrated into our purpose and AkzoNobel’s 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 and the Code of Conduct. In addition, sustainability is being embedded into our company-wide processes, including Innovation, Commercial Excellence, Procurement and Talent Management. Sustainability helps us to enhance and grow our existing [...]

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Strategic focus areas

[...] working capital management, and take a disciplined approach to capital expenditure management. Embedded safety and sustainability Safety and sustainability are fully integrated in our business strategy and all aspects of operational management. We continue to drive our behavior-based safety (BBS) programs and Life-Saving Rules across the company. Our safety programs have resulted in major improvement in the total reportable rate of injuries per million hours worked, which has decreased from 2.4 in 2012 to 1.4 in 2016 – in line with the ambition level of 1.4 set for 2016. Further work is needed to meet our target of 1.0 by 2020. To help achieve sustained business [...]

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Note 17: Human Cities

[...] across the world. By combining our sense of care with our people, products and leadership in innovation, safety and sustainability, we are helping cities to meet the many challenges they face. We are using our products and expertise to help cities deliver a stronger sense of community purpose, pride and happiness. Since the launch of Human Cities in 2014, many successful projects have been completed, bringing essential ingredients, essential protection and essential color into the lives of people across the world. For example, the initiative has given a sporting chance to blind and visually impaired people in Rio de Janeiro, Brazil, as well as creating jobs for [...]

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