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Note 1: Managing our sustainability agenda

[...] work with the expertise team and the business teams to ensure effective roll-out of the new strategy. Businesses and functions Accountability for managing sustainability and delivering against targets lies with the businesses and functions. The Managing Director of each business is responsible for managing sustainability as an overall part of business. All businesses have appointed a sustainability manager, or focal point, to support the embedding of sustainability throughout their operations. They bring together an appropriate team to develop and implement the sustainability agenda for the business. Focal points work together at Business Area level to accelerate [...]

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Safety

[...] employee and management training Our company-wide rule on product stewardship requires all AkzoNobel businesses to implement an effective and auditable product stewardship management process. Businesses are required to address the key elements of product stewardship, following the principles of Responsible Care® and Coatings Care®. In 2015, we published a Product Stewardship procedure which provides guidance for all AkzoNobel businesses on implementation of the eight key elements of product stewardship Our product stewardship and product safety processes are underpinned with a requirement for continuous improvement. In 2015, we piloted our Product Stewardship [...]

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Medium-term risks

[...] national policies, subsidies) and emission trading rights, which affect the competitive position of businesses and our customers. Breakdown of total raw material spend in % Mitigating actions AkzoNobel’s Procurement sourcing processes (ALPS, Source) and organization are designed to actively leverage the cost, quality and delivery of raw materials and energy, including the performance of suppliers. This includes managing the risks related to single sourced materials, the forecasting of price trends and governance to ensure the supply base provides the best terms and conditions Our supplier sustainability program, focused on sustainable raw materials and carbon [...]

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Supervisory Board

[...] the year, the Chairman of the Supervisory Board ensures that regular updates on AkzoNobel’s businesses, legal matters, social and corporate governance, environmental, accounting, investor relations, compliance, risk management and internal controls are provided to the Supervisory Board. The Supervisory Board is governed by its Rules of Procedure, which are available on the company’s corporate website. The Rules of Procedure include the profile and the Charters of the Committees and set out the tasks and responsibilities of the Supervisory Board, as well as its operational processes. Composition The list of Supervisory Board members, including their biographies, [...]

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Note 4: Sustainable business

[...] 26 35 33 33 Performance Coatings 14 13 15 15 Specialty Chemicals 25 26 27 25 VOC in products Our businesses continue to introduce new and reformulated products with significantly reduced (or preferably virtually zero) volatile organic compound (VOC) content. As a result of this multi-year program, our product portfolio is undergoing a transformation towards a range of products that are lower in VOC content. Since 2009, this has been established as an important part of our target to minimize the potential social and environmental impact from the materials in our products. Both Decorative Paints and Performance Coatings are contributing to this continued reduction of [...]

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Note 10: Product stewardship

[...] we carefully monitor changes and prepare ourselves for new regulations that will impact on our businesses. Our company-wide regulatory information system (RIS) ensures up-to-the minute information relating to product safety legislation is available to all regulatory affairs professionals within AkzoNobel. During 2015, our primary activities included: Substance management regulations Our REACH teams are now busy preparing information required for successful registration of our substances that are under the scope of the third phase of the EU REACH regulations. All applications for registration must be submitted by June 2018 and we are preparing carefully to achieve [...]

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Note 15: Energy

Energy use Energy is important for all our operations, especially some of our Specialty Chemicals businesses, because they use energy as a major raw material for their products. Energy efficiency and carbon efficient energy use are therefore important metrics for our operations. Energy use in 1000 TJ Energy use is the sum of fuels, electricity, steam, hot water and other utilities (expressed as fuel equivalents). Energy use per Business Area in 1000 TJ 2013 2014 2015 Decorative Paints 2.0 1.8 1.8 Performance Coatings 5.0 4.6 4.5 Specialty Chemicals 92.0 92.0 89.2 Energy use per ton of production reduced to 5.6 GJ/ton. Absolute energy use was down 3 percent to [...]

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Note 17: Local air quality

Air monitoring around our operations is focused on volatile organic compounds (VOC) and NOx and SOx emissions. We monitor particulates at site level as required. Volatile organic compounds (VOC) All our businesses will continue to manage VOC emissions from operations, in line with national or supranational (European Commission) legal requirements. The VOC reduction focus for our paints and coatings businesses concentrates on low/zero VOC product design, going beyond controlling VOC emissions from our operations. Reducing VOC emissions from our sites remains part of the scope of our OEE program, while our Research, Development and Innovation groups are working on [...]

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Note 5: Resource efficiency

[...] need to make certain that we are spending capital in a way which optimizes the improvement across our businesses and the company as a whole. The following illustration highlights the impact of our main initiatives in different areas of our value chain: Raw materials which are more energy and material efficient for our customers Improved energy efficiency and fuel mix for our energy intensive operations Improvements in formulation to reduce product footprint The following sections discuss improvement activities for raw materials, our operations and in the product solutions we deliver to customers. AkzoNobel carbon footprint in million tons CO2(e) Raw materials Raw [...]

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Note 12: Our people

[...] skills and knowledge – is one of our key priorities in terms of meeting the changing demands of our businesses and the markets in which we operate. With this in mind, we continued our Fast Track Management Program in 2015 and recruited new leadership talent, mainly in our high growth markets. By the end of 2015, we had also conducted a major review of our internal talent to verify the strength of our internal pipeline and skills base. We assessed that in order to achieve our business goals, we needed to rapidly increase our knowledge and skills in certain areas. As a result we made a conscious decision to hire externally to accelerate our progress. This meant [...]

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