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Note 7: People health and safety

Overall performance indicators for people safety show that we continue to structurally improve towards targets set for 2015. The 2015 TRR target of <2.0 has been derived from a top quartile safety performance peer analysis. Employee and contractor safety The general downward trend in reportable injuries from 2010 onwards continued in 2013. Most notable was the decrease in the total reportable injury rate of independent contractors, reversing the recent increase. The TRR for employees and supervised contractors decreased to 2.3 (2012: 2.4) The breakdown per Business Area shows that the TRR for Decorative Paints decreased to 1.9 (2012: 2.7) which is below the TRR [...]

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Internal risks

[...] in production processes can adversely affect our results. These risks arise from areas such as personal health and safety, process safety and product safety. Unlikely scenarios can involve major incidents with a high impact for our organization, causing business continuity risks and reputational damage. Risk corrective actions We continuously strive to improve our safety performance. Each year, we organize a company-wide Safety Day focusing on enforcing our TakeCare program. TakeCare is the umbrella for all existing and future safety initiatives at business and central level. Among other initiatives, this encompasses our Life-Saving Rules program, which includes a [...]

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Note 10: HSE management

Management systems Operational excellence at our sites is supported by risk- based management systems that follow the Responsible Care® and Coatings Care® principles. Our HSE management standards are set up and updated in accordance with international standards such as ISO-14001, RC-14001, OHSAS-18001 and PAS 55 (public standard for process safety). Many sites and businesses have additional external certification for their management systems, which are subject to audit by our internal audit group and external audits from certification authorities. External certification in % of manufacturing sites 2010 2011 2012 2013 ISO-14001/RC-14001 72 73 75 78 [...]

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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. The importance of sustainability to running our business is firmly integrated into the AkzoNobel strategy, both in the strategic focus areas and the core principles underlying our new company values (safety, integrity and sustainability). Sustainability helps us to enhance our existing business, create new business opportunities and minimize risks. In 2012, we developed a new focus to our sustainability strategy by reviewing our sustainability risks and opportunities against global trends – population growth and the new middle class, [...]

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Note 6: Supply chain

[...] 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. Renewable raw materials Renewable raw materials are an important component of our sustainability strategy, as a considerable share of [...]

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[...] Committee number 19 23 24 24 9 – – Code of Conduct trained % employees 95 95 95 96 95 – – Health and Safety Fatalities employees number 0 1 2 2 0 0 0 Total reportable injury rate employees/ supervised contractors /million hours 3.7 3.6 3.1 2.4 2.3 <2.0 <1.0 Lost time injury rate employees/ supervised contractors /million hours 1.5 1.6 1.3 1.1 1.3 1.3 – Occupational illness rate employees /million hours 0.4 0.3 0.3 0.2 0.1 – – Total illness absence rate employees % of sites 2.0 1.9 2.0 2.0 2.1 1.9 – Fatalities contractors (supervised plus independent) number 3 0 1 0 0 0 0 Total reportable injury rate independent contractors /million hours 2.8 [...]

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Note 9: Product stewardship

We aim to be a leading company among our peers by providing customers with safe products that meet their needs. Based on the product stewardship objectives included on our HSE Agenda 2011–2015, our focus during 2013 was on common HSE platform programs. Priority substance management We are committed to reducing the use of substances in our products and processes that may pose a significant risk to long-term health or the environment. We do this by minimizing exposure to hazardous substances and, where possible, by substituting them with more sustainable materials. Our priority substance management program takes a systematic approach to the identification and [...]

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Note 13: Community

[...] projects each year. The majority of projects have supported educational/employability and healthcare/well-being activities, with environmental and housing projects also well represented. Cumulative Community Program involvement The economic slowdown has prompted more focus on projects benefiting deprived, socially disadvantaged groups. For example, involvement in the set up and running of soup kitchens, shelters and day care centers for the homeless, and vocational training for unemployed youngsters and women, are taking place on a continuous basis in various parts of the world. The fund is also available to support post-relief efforts for major disasters in [...]

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Reporting and monitoring

[...] Conduct number of alleged breaches reported 260 245 295 151 Code of Conduct breakdown of alleged breaches Health & Safety 22 18 42 8 Business integrity 122 112 152 82 Treatment of employees 113 112 101 61 Other 3 3 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) 23 24 24 9 Code of Conduct alleged breaches handled by the relevant businesses (in numbers) 237 221 271 142 Substantiated Code of Conduct breaches (within year) 170 149 163 57 Substantiated Code of Conduct breaches (total, including breaches substantiated in a later [...]

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Note 2: Reporting principles

[...] corporate compliance information reporting systems and the AkzoNobel corporate reporting systems for health, safety and environment performance indicators, each of which have associated approval and verification processes. These processes continue to be updated and improved. Data collection for the newer value chain reporting aspects is carried out using standard templates and procedures. More details on all reporting processes are available on our website. We are confident in the overall reliability of the data reported, but recognize that some of the information is subject to an element of uncertainty, inherent to limitations associated with measuring and [...]

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