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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 10: Product stewardship

Product stewardship Our product safety process is a key building block in the AkzoNobel safety strategy. This process protects people and the environment from unsafe exposure to hazardous materials and goes beyond the traditional approach of reactive compliance with rules and regulations. This enables us to take a leading position in Product stewardship by providing our customers with safer and more sustainable products that meet or exceed their expectations, while promoting the development and introduction of eco-premium solutions in our markets. During 2015, we focused on the strategic priorities in our product safety process: Priority substance management Our [...]

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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 all 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 [...]

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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. By focusing on the full value chain, we will drive business, resource and engagement benefits The importance of sustainability to running our business is firmly integrated into the AkzoNobel 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 updated Code of Conduct. In addition, sustainability is being embedded into our company-wide processes, including Innovation, Commercial excellence and Talent management. [...]

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Processes

[...] sourcing forms the backbone of the supplier selection and commercial process People, product and process safety As indicated throughout this strategic performance section, Safety is a core principle which engages and unites all of AkzoNobel. The people safety process is aimed at increasing awareness of behaviors that put us at risk. In 2015, we focused on reducing slips, trips and falls across the company (including offices and laboratories) and on-site manager safety leadership via a program called Hearts & Minds. The CEO and senior leaders coached 80 site managers in 2015 as part of this program. The aim of our process safety program is to identify and [...]

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Note 2: Reporting principles

Reporting scope This Report 2015 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. The information in this Report 2015 offers an update on our implementation of the ten principles of the United Nations Global Compact (UNGC). More sustainability information is available on our corporate website, including an index of the Global Reporting Initiative G4 indicators [...]

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Note 4: Sustainable business

[...] Use of natural resources/raw materials Land use Emissions and waste Risks (e.g. accidents) Toxicity Health and well-being When assessed across the entire value chain against currently available solutions in the market, the eco-premium solution must be significantly better in at least one of the above criteria, and not significantly worse in any. We aim to make comparisons with products and services that are readily available and appealing to the wider general public, as opposed to being of interest to only a very specific group. Year-on-year progress will be impacted not only by our own improvements, but also by competitor activity and legislation changes. For [...]

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Economic/Governance/Social

[...] 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 contractors /million hours 3.5 [...]

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Report of the Supervisory Board

[...] members with Business Area responsibilities provided regular updates to inform the Supervisory Board on health, safety and environmental matters, in-depth competitor analyses, ongoing projects and year-to-date financials. The Supervisory Board would like to draw particular attention to the company’s Global Business Services (GBS) implementation. Since 2013, the Supervisory Board has been monitoring the company’s implementation of process and tool standardization, and alignment of the organization towards shared service centers, centers of expertise and business partners. The Supervisory Board has recognized the success of this initiative in reducing general and [...]

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Compliance governance

Corporate Compliance Committee The Corporate Compliance Committee supports the Executive Committee in establishing, monitoring and assessing the company’s Compliance Framework and with its responsibility to report to the Audit Committee of the Supervisory Board. The Corporate Compliance Committee consists of the General Counsel (chair), the Directors of Compliance, Internal Audit, Control, Human Resources and Sustainability and Health, Safety, Environment, as well as the Corporate Secretary. Compliance organization Compliance function The Compliance function manages the Compliance Framework on behalf of the Corporate Compliance Committee. It makes the Code of [...]

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