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Employees and community

Key performance indicators – employees 2012 2013 2014 2015 Ambition 2015 Ambition 2020 * The definition of potentials changed in 2014 to better reflect our talent pool. ** In line with the new definition of potentials, the definition of leadership talent also changed in 2014 to better reflect our talent pool. People data Employees at year-end (FTE) 55,272 49,561 47,207 45,568 – – Employee engagement Employee engagement (ViewPoint score (1-5 scale)) 3.80 3.88 3.97 4.03 >4.00 >4.20 Diversity and inclusion % of females in total workforce 24 24 24 24 – – % of employees from high growth markets 40 47 48 49 – – % of female executives 15 16 17 19 20 25 [...]

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Note 8: People safety

Our main performance indicators for people safety are the total reportable injury rate (TRR) and the lost time injury rate. We will continue focusing on continuous improvement through our people safety programs in order to achieve the 2020 target of a TRR of less than 1.0 for employees and supervised contractors. The behavior-based safety program (BBS), which actively engages all manufacturing personnel in identifying and addressing at-risk behavior, has been tailored to the needs of our non-manufacturing personnel and was rolled out in 2014 and 2015 across all locations and groups. The overall TRR for employees and supervised contractors decreased to 1.6 (2014: [...]

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Note 12: Our people

Building an engaged workforce We strive to measure and increase employee engagement. Every year, we give employees the opportunity to share their feedback through our annual engagement survey. It provides us with information about what’s going well and where we can improve our working environment. Our employees and managers have a shared responsibility to discuss the results and develop and implement actions for further improvements. In 2015, we exceeded our ambition of a 4.00 engagement score for the first time since we started the survey in 2010. Since then, we have seen a step change in our leaders’ engagement and now have five times as many teams at top [...]

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How we created value in 2015

By bringing more value to our customers, investors, employees and society in general, we can better position ourselves for growth and achieve our strategic vision of leading market positions delivering leading performance. Economic value Environmental value Social value Financial overview We delivered on our 2015 targets. Revenue was up 4 percent, due to 6 percent favorable currency effects, partly offset by divestments and lower volume. Operating income was up 59 percent at €1,573 million, reflecting the positive effects of process optimization, lower costs, reduced restructuring expenses, favorable currency developments and the impact of incidental items. ROS [...]

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Economic/Governance/Social

[...] handled by the Compliance Committee number 24 24 9 11 10 – – Code of Conduct trained 1 % of employees 95 96 95 90 661 – – Health and Safety Fatalities employees number 2 2 0 0 0 0 0 Total reportable injury rate employees/supervised contractors /million hours 3.1 2.4 2.3 1.8 1.6 <2.0 <1.0 Lost time injury rate employees/supervised contractors /million hours 1.3 1.1 1.3 0.9 0.7 1.3 – Occupational illness rate employees /million hours 0.26 0.23 0.14 0.24 0.14 – – Total illness absence rate employees % 2.0 2.0 2.1 2.1 2.1 1.9 – Fatalities contractors (supervised plus independent) number 1 0 0 0 0 0 0 Total reportable injury rate independent [...]

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Note 14: Post-retirement benefit provisions

[...] plans in the UK. The benefits of these pension plans are based primarily on years of service and employees’ compensation. The funding policy for the plans is consistent with local requirements in the countries of establishment. We also provide certain healthcare and life insurance benefits to retired employees, mainly in the US and the Netherlands. Valuations of the obligations under the plans are carried out regularly by independent qualified actuaries. We accrue for the expected costs of providing such post-retirement benefits during the service years of the employees. Governance of the benefit plans is the responsibility of the ExCo Pensions Committee. This [...]

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Note 14: Community

[...] Run by our Decorative Paints business, the initiative also encourages the active participation of our employees around the world. Another vital part of our partnership approach is the development of young people, highlighted by our work with the Plan organization, which includes the AkzoNobel Education Fund. Meanwhile, our global sponsorship program is currently focused on key partnerships with the Johan Cruyff Foundation, the Rijksmuseum and the Van Gogh Museum in the Netherlands, and the Extreme Sailing Series. Our products When possible, we endeavor to assist society through our products. Ferrazone, for example, is helping to improve well-being in many [...]

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Note 3: Stakeholder engagement

Our approach The aim of our ongoing stakeholder engagement is to learn from key financial, social and environmental stakeholder groups and, in collaboration, to develop innovative and sustainable solutions to address some of the world’s most pressing challenges. Our Planet Possible agenda is not only designed to help drive innovation and enable us to become radically resource efficient, it’s also intended to inspire employees, customers, suppliers and other key stakeholders to work together with us in achieving this. Reaching out to all our stakeholders in ongoing conversations is vital to achieving our goals and to further developing our long-term vision and [...]

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Note 4: Employee benefits

Salaries, wages and other employee benefits in operating income In € millions 2014 2015 Salaries and wages (2,226) (2,188) Post-retirement cost (221) (128) Other social charges (377) (412) Total (2,824) (2,728) Average number of employees Average number during the year 2014 2015 Decorative Paints 15,500 15,100 Performance Coatings 21,000 19,700 Specialty Chemicals 10,000 9,300 Corporate and other 1,700 2,000 Total 48,200 46,100 The average number of employees working outside the Netherlands was 41,200 (2014: 43,100). Employees At year-end 2014 2015 Decorative Paints 15.200 14.900 Performance Coatings 20.500 19.300 Specialty Chemicals 9.800 9.100 Corporate and [...]

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Note 6: Capable, engaged people

[...] on our engagement with suppliers and the management processes is included in Note 7. Capable, engaged employees Employees are routinely involved in delivering many aspects of our sustainability agenda, such as improving energy or resource efficiency at our sites, developing and selling eco-premium solutions to customers, managing all areas of safety and assessing the sustainability aspects of investments. We want to build on all these activities to accelerate performance against our objectives. Awareness training to help everybody understand their contribution is available for both current and new employees through a company level e-learning program. This is [...]

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