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Note 12: Our people

[...] our organization has grown steadily to 19 percent at the end of 2015 (2009: 10 percent). Our Women in Leadership program helped to support this growth in 2015. It aims to support women to fulfill their potential as leaders by recognizing their strengths, exploring their authentic leadership style and identifying strategies to increase their impact. However, the percentage of female executive potentials has not reached our ambition level of 30 percent. This is primarily due to the improvements made in 2014 to the definition of growth potential, although we did still see a small increase from 24 percent in 2014 to 25 percent in 2015. The representation of executives [...]

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Note 11: HSE management processes

[...] for their management systems, which are subject to internal and external audit. The greater focus on leadership in the revised ISO-14001: 2015 fits well with the focus on leadership in both our HSE and process safety management systems. External certification in % of manufacturing sites 2012 2013 2014 2015 ISO-14001/RC-14001 75 78 79 80 OHSAS-18001/RC-18001 42 51 53 54 Maturity framework We have a common maturity framework for measuring HSE management progress at our manufacturing sites through self-assessment and audit. The HSE maturity framework is being used to drive continuous improvement. In total, 97 percent of all sites achieved the target for 2015 of an [...]

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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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Medium-term risks

[...] identify and adopt major transforming technologies in a timely manner, this may lead to loss of our leadership positions, and adversely affect our business. Mitigating actions Advance our technology road maps and innovation strategies with appropriate research and development spend. In 2015, this amounted to 2.3 percent (€347 million) of total revenue Bring to market suitable new technologies using innovation core processes to assess market needs and relevant know-how Enhance our global open innovation capability to identify, assess and acquire the most recent promising technologies When applicable and appropriate, invest in venture funds Internal - Operational [...]

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Report of the Supervisory Board

[...] a candidate for Supervisory Board membership. Mr. Sluimers’ profile is one of senior management and leadership in (among other industries) public and private sector finance and his appointment was approved by the AGM in April. His experience in financial reporting led the Supervisory Board to appoint Mr. Sluimers as an Audit Committee member. Mr. Sluimers has participated in a tailored induction program covering AkzoNobel’s governance, compliance and businesses. This included one-on-one meetings with the CEO, CFO and all other Executive Committee members and governance-related corporate functional directors. The Supervisory Board continued to engage in its own [...]

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[...] 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 control hazards in our operations by avoiding unwanted events at manufacturing sites that result in injuries, waste or harm. We measure our performance on this through a disciplined audit process and are continually improving in our audit outcomes. Product safety incorporates the traditional approach of reactive regulatory compliance and even goes beyond this, enabling us to [...]

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Strategic focus areas

[...] development opportunities Care for the customer In almost every market in which we compete, we have a leadership position. If we are to maintain these positions and deliver against our aim of growing in line with, or faster than, our relevant market segments, care for the customer remains fundamental. In 2015, we continued to build the foundations for care for the customer via our three commercial excellence programs. These programs incorporate processes and tools designed to help us better understand customer and consumer segments, develop appropriate go-to-market value propositions and enhance salesforce efficiency and effectiveness, all tailored for the [...]

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[...] position in China and are growing our business in traditional trade through strong Dulux brand color leadership and our highly successful Easy Paint Service Brazil is a major market – roughly the same size as the UK – where we have joint leadership. Although the market has been shrinking due to local macro-economic conditions, most analysts are predicting a return to growth. If this occurs, the likelihood is for above GDP growth due to market recovery. We will continue to build and leverage our very strong brand awareness, built in part through activities such as the largest ever “Let’s Colour” event, which was staged in Rio de Janeiro’s famous Santa [...]

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[...] received refresher training in the company’s expectations and the required competencies for safety leadership. The newly-developed Advanced Safety Leadership (Hearts & Minds) program provides site managers with the opportunity to benchmark internally, receive coaching from experienced peers and share best practices worldwide. This continuous focus on line management competence, capability and engagement at every level contributed to the further reduction of more than 16 percent in the number of injuries

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Note 2: Reporting principles

[...] Notes 8 and 9 17 Talent management High Insight on policies and procedures Cross-BU moves of leadership talents, Internal promotion into executive level, Retention of leadership talent, ViewPoint score on learning and growth, Female executives, Female executive potentials, High growth market executives, High growth market executive potentials Report 2015: How AkzoNobel created value in 2015, Strategic performance, Business performance, Sustainability statements Note 12 18 Community involvement Medium Human Cities initiative, Community Program, Business activities Projects involved, Volunteers, Donations Report 2015: Human Cities, Case studies, Strategic [...]

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