Clariant FiguresKey FIguReS 2010 2009 CHF mn CHF mnSales 7 120 6 614Operating income before restructuring, impairment and disposals 696 270Net income/loss 191 – 194Operating cash flow 642 757Total assets 5 921 6 092Total equity (including non-controlling interests) 1 806 1 896Investment in property, plant and equipment 224 135Staff costs 1, 2 1 479 1 555R&D costs 135 150Basic earnings per share CHF 0.81 – 0.911 Staff number: 16 176 (2010) 2 Excluding exceptional personnel costsSaLeS by buSIneSS unItS SaLeS by RegIonSCHF mn CHF mnTotal 2010: 7 120 Total 2010: 7 120 Industrial & Consumer Specialties 1 526 21 % Europe 2 977 42 % Masterbatches 1 260 18 % MEA* 552 8% North America 860 12 % Pigments 1 168 16 % Textile Chemicals 821 12 % Latin America 1 199 17 % Oil & Mining Services 604 8% Leather Services 326 5% Performance Chemicals* 1 415 20 % Asia/Pacific 1 532 21 %* Performance Chemicals includes the BUs Additives, D & I, Emulsions, Paper Specialties * Middle East and Africa
3Index Foreword Page 401 Sustainability as a corporate objective Page 6 Social responsibility of a globally active chemical company p. 7, Strategic implementation with efficient management systems p. 7, Voluntary action is essential for lasting success p. 802 Corporate Governance Page 12 Company organization p. 13, Management of the Group p. 13, Compensation policy p. 14, Code of Conduct p. 14, Compliance with legal requirements p. 15, Responsibility p. 15, Risk measurement and risk control p. 1503 Safety system for sustainable management Page 18 Procurement and production p. 19, Storage and transport p. 20, Customer orientation p. 21, Qualified employees p. 21, Emergency management p. 22, Communications p. 22, Performance review and improvement p. 22, Polluted areas and soil decontamination p. 23, Site security p. 2304 Sustainability in business operations Page 24 Responsibility in respect of suppliers and service providers p. 25, Responsibility for customers p. 27, Responsibility for employees p. 27, AvoidingAccidents @ Clariant p. 29, Energy 2010 project p. 30, Product Stewardship p. 32, REACH p. 35, Globally Harmonized System p. 3605 Sustainability in detail Page 38 Energy p. 39, Water p. 40, Effluents p. 42, Waste p. 42, Air emissions p. 43, Noise emissions p. 44, Occupational health and safety p. 46, Plant safety p. 47, Economic performance and employee structure p. 4706 The Clariant Group Page 50 GRI Content Index Page 56 Publication details Page 60
4 Sustainability Report 2010 Foreword Dear Readers, In the past, we have always informed you of our initiatives regarding sustainable management and responsible action in our annual report. This is the first separate Sustainability Report by the Clariant Group. After 15 years, Clariant can look back on a brief but successful company history. The recent past has been turbulent, marked by the financial crisis and a far-reaching reorientation of our Group. The aim of the measures associated with these changes, which are now largely complete, was to create a sound operational and technological basis for future profitable growth. However, they were also intended to realign our company according to the criteria of sustainability and corporate and social responsibility. These aims are intrinsically linked. In difficult times in particular, companies that are sustainably managed and that act responsibly are proven to be more successful in the long term. Our focus on innovation and environmental protection strengthens our financial sustainability. It also contributes to increasingly efficient use of raw materials and energy. Our internal processes are thus being optimized, while at the same time our customers are benefiting from tailored solutions in the Business Units. In this way, Clariant is helping to find solutions to the global challenges of our time, such as food, water, energy, climate protection and, finally, quality of life for an ever increasing global population. In this report you will find a wide variety of data and facts as well as examples of products – ranging from ingredients for completely biodegradable cleaning products, new directions in leather processing to toxicologically safe flame retardants for smartphones. The issue of sustainability is firmly anchored in our corporate strategy. Sustainability-based management improves our performance and our competitiveness at international level considerably. At the same time, it strictly limits the burden on people, the environment and resources. The value that we generate through this also benefits our shareholders and meets the needs and requirements of the capital markets – which is truly a win-win situation for us all.
5We are at the beginning of a process that will have an appreciable influence on our operations and activities.Clariant is aware of its responsibility to society, its employees and the environment and has been operatingsustainably for a number of years. In the future, we will increasingly address the communication of these processesand provide transparent reports on the issue of sustainability in the Clariant Group.We have already achieved a great deal and will make many further improvements. We will continue our committedefforts to this end in the business year 2011.Hariolf KottmannChief Executive Officer
SuStainability aS a corporate objective 7Sustainabilityas a corporate objectivePopulation growth, increasing standards of living and globalization Nevertheless, there are also risks that need to be minimized andhave opened up many possibilities, but have also set us new controlled. Risks exist, for example, in accidents that cannot bechallenges. More and more people are depending on declining ruled out even with extreme precautions and in the possibility thatquantities of raw materials. If future generations are to have the the market will not reward the company’s degree of caution andsame room for maneuver as exists today, we must use the available effort and will consequently turn to cheaper products. However,resources considerably more efficiently and thus more responsibly. Clariant can tackle this last point by convincing its customers of theMoreover, increasing globalization also calls for people to be more advantages of its products and production processes – thus helpingcommitted and efficient. This brings with it massive social changes the environment and securing its financial future.that must be taken into consideration. Strategic implementation with efficientSocial responsibility of a globally active management systemschemical company Clariant has developed guidelines to ensure product and productionIn light of these challenges, Clariant has a duty not only to act in safety, and to limit the impact on the environment, health and safetythe economic interests of its shareholders, but to use resources (EHS). The key corporate objective of its activities is protectingsparingly and respect the environment, to ensure a sound and people and the environment. To this end, the Group has drawn upperformance-enhancing working environment, to guarantee mutual a comprehensive list of rules and measures within EHS management,respect and – where appropriate – to participate in campaigns to and implemented a Group-wide risk assessment. Employee trainingimprove the social climate. in this regard takes place regularly, and processes, procedures and measures are continually monitored both internally and by means ofWith this knowledge and the willingness to implement sustainability external audits.objectives, Clariant assumes responsibility for the environment, itsemployees, its customers and society. Its objectives are to steadily Each of the some 120 Clariant plants worldwide is examined forreduce specific consumption of water and energy, generate less potential risks and possibilities for optimization. The findingswaste and pollutant emissions, further increase plant safety, improve of these assessments are recorded in the Group-wide riskproducts through ongoing research and step up communications management system analyzed according to urgency and relevance,with interest groups. and subsequently implemented as far as possible. Furthermore, EHS criteria represent an element of Clariant’s business relationships.Clariant’s business opportunities lie in the development of innovative Suppliers, contractors and service providers are therefore inspectedproducts whose composition, for example, is being reduced to on a random basis. A careful selection takes place as part ofever fewer and increasingly renewable raw materials, with their procurement management, taking into account financialproduction harboring less and less risk and generating an ever considerations and according to their purchasing and productiondecreasing amount of waste. Their potential impact on people and processes as well as supply routes and supply systems in terms ofthe environment in further use is also being consistently reduced. sustainability. Together with customers, Clariant is working to makeTogether, this is what sustainability means for us. improvements throughout the process chain.
8 Sustainability Report 2010 Clariant has therefore developed the EHS management system, Voluntary action is essential for lasting success which forms part of our Group-wide process and strategy planning. Clariant is firmly committed to the principle of sustainable business It comprises a continuous review of compliance, comparing development, whether in production, transport and distribution, regulations with actual business performance. All employees thus or the use of products and services. As a leading company in the assume responsibility for the efficacy of EHS management, depending specialty chemical industry, Clariant goes beyond legal requirements of their respective function, position and qualifications. Recurrent and participates in several voluntary sustainability programs, training sessions ensure that employees have the necessary including voluntary commitments as part of Responsible Care® under practical knowledge. Open dialog boosts awareness and motivation. the Global Charter Responsible Care and Global Product Strategy. Clariant is able to react to incidents immediately and with a high These programs aim to continuously improve company performance degree of effectiveness thanks to its emergency management in terms of safety, health, environmental protection and product system and comprehensive catalog of measures. quality with regards to sustainability. The objectives of these initiatives are the enhanced safety and environmental friendliness For Clariant, however, sustainability is primarily about developing of products, and improved communication with customers and other ever better products, processes and services. Customers should stakeholders. receive effective and cost-efficient products that enable sustainable management on their part. Clariant makes one of the most Clariant is deeply committed to environmental protection and considerable contributions to sustainability through its innovations: safety in all of its activities and signed the Charter for Sustainable as minimal an impact as possible and a high degree of effectiveness Development of the International Chamber of Commerce. The result in environmental sustainability, minimum waste and falling Group’s own Environment, Health and Safety (EHS) policy is based production costs. All of this is part of ongoing optimization of the on the aims of this charter. Clariant has also been awarded global process chain. ISO 9001, ISO 14011 and OHSAS ISO 18001 certification. Each of the worldwide facilities is required to adhere strictly to the principles of Clariant offers its employees the best possible working conditions. clean and safe operations outlined by the corporate EHS department. Compensation is in line with the market, performance-related Clariant also operates a global incident reporting and emergency and based on the success of the company. Clariant supports its management system. employees and provides young people with thorough training. The aim is also for shareholders to receive a risk-appropriate return on Respecting customers, employees, neighbors and the environment their invested capital, and to increase positive effects and exclude strengthens Clariant’s partnership with groups upon whom its negative effects as far as possible for all other persons associated success in the current economic climate and in the future ultimately with the company. depends. Finally, through special HR programs, Clariant provides employees with the skill sets and resources necessary to conduct Clariant naturally respects human rights and opposes any form their work in an even more efficient and innovative manner. The of forced or child labor. Freedom to form trade unions is explicitly company is making a major commitment to selecting, training and respected and the rights to strike and to collective bargaining are empowering the right people in its organization to drive continuous also supported. Respect for employees and business partners improvement. in this context are just as important as a distinct culture of open communication.
SuStainability aS a corporate objective 9 Not only clean, but… – Genaminox ®CHE - based cleaning products Grease stains on kitchen units, grime on baking trays, the The secret of Genaminox ® CHE is that the amine oxide enables most stubborn dirt. Every consumer needs effective cleaning the proportion of active ingredients required in cleaning products, but – and herein lies the problem – would like products to be reduced considerably, thereby reducing the to protect the environment at the same time. quantity of cleaning products used and helping to protect the environment. The raw materials used to manufacture the Resolving this apparent conflict was a major objective of product also benefit the environment, as they are primarily Clariant’s ICS Business Unit. A long time was spent on intensive plant-based and obtained from sustainable sources. A holistic research, with grease and grime stains first being produced approach – from the raw materials through transport to in the laboratory only to test thereafter how they could be waste water. removed in an environmentally friendly manner. Ultimately with great success: these efforts resulted in the product Genaminox ® The product has now been launched on the market – with CHE – a liquid containing a biologically based amine oxide. promising results. “We hope that consumers soon find cleaning “It forms the basis for cleaning products that are both highly products in their supermarkets and drugstores that are based effective and completely biodegradable,” explains Cesar Saez, on Genaminox CHE,” says Cesar Saez. And that they finally Head of Sales & Application for Clariant’s Industrial & Home manage to remove all those stubborn stains – with an easy Care EMEA Business Line. “And that is precisely what we conscience. wanted: to benefit the environment and the customer equally.”
10 Sustainability Report 2010 In order to achieve its goals, meet standards and minimize risks, › All measures are carefully assessed in order to achieve the best Clariant has introduced a range of corresponding regulations within possible cost-benefit ratio the Group: › These measures are implemented by all employees according to › Comprehensive risk assessment and evaluation is a prerequisite their function, competence, specialist knowledge and training. A for all Clariant sustainability activities. When evaluating risks that positive attitude toward sustainability is promoted through open may arise during manufacture, storage and transport of products, dialog human health and environmental protection have absolute priority › Continuous improvements are achieved by commercially justifiable › Risk mitigation and prevention is carried out through specialized use of the best available technology. This applies in particular to management approaches depending on segment the development of new and optimized products, processes and services CoMpany pRInCIpLeS RegaRdIng the envIRonMent, heaLth and SaFety 1. Safety of plants, processes and products, and the protection attitude toward EHS is promoted through open dialog. of people and the environment are Clariant’s highest Expertise and competence are ensured through EHS-related priorities. The principles of Responsible Care® are therefore training and knowledge transfer. followed at all of its sites. Furthermore, protective measures 6. The EHS performance of suppliers, contractors and service have been drawn up that apply throughout the entire Group. providers plays a key role in their selection. Just like Clariant 2. Clariant’s EHS management system (Environment, Health, customers, they all receive support in their efforts to improve. Safety) is an integral part of all business processes and 7. Clariant strives for continuous improvement in EHS strategic planning. performance by developing new and optimized products, 3. Local laws, rules, regulations and international agreements procedures and services, using energy and resources efficiently, and conventions are binding on all Clariant Group companies. minimizing environmental impact and the generation of If these are deemed inadequate, Clariant guidelines based waste products and disposing of residual waste in a safe on established industry practice are applied. manner. These efforts are supported by efficient procurement 4. Comprehensive risk identification and assessment for all management. activities and products is a prerequisite for optimizing business 8. Clariant makes appropriate emergency provisions to control processes. Appropriate measures are taken to control, and limit the impact of incidents. Clariant has an effective minimize, eliminate and communicate such risks. This process emergency management system and carries out qualified is supported by regular reviews and audits. EHS projects training and regular exercises throughout the Group. and measures are carefully evaluated in order to achieve the 9. Employees, the authorities, customers, shareholders and best possible cost-benefit ratio. the general public are regularly informed about Clariant’s 5. Responsibility for EHS is assumed by all employees according performance and aims in the area of EHS. to their function, position and qualifications. Managers are expected to set a good example in this respect. A positive
SuStainability aS a corporate objective 11“Clariant does not just pay lip service to the topic of sustainability – it is a key element of our corporate strategy.” CHRiStiAN KOHlPAiNtNER, MEMbER OF tHE ExECutiVE COMMittEE › Conservation of resources and minimization of environmental › Compliance with the principles and guidelines on sustainable and impact are achieved in particular through the manufacture of more responsible action is checked with the help of a recurring audit environmentally friendly, effective products, lower use of energy, program, which also includes the specific measures and their reduced waste and lower emissions success › Clariant has an emergency management system which, in collaboration with the responsible authorities, aims to control and By means of all of these regulations and measures, Clariant aims to limit the impact of exceptional incidents make fulfillment of its responsibility for people and the environment › Employees, the authorities, customers, shareholders and the and the company’s success permanent. general public are regularly informed about Clariant’s sustainability performance In SeaRCh oF RenewabLe Raw MateRIaLS Use of renewable materials in the chemical industry is becoming which is produced through fermentation, is used in novel ever more important, both in terms of long-term costs and as copolymers, where it replaces petrochemical acrylic acid. Novel regards environmental protection and sustainability. Clariant is surfactants, lubricant additives, corrosion inhibitors and working intensively to identify, develop and use renewable raw emulsifiers are also derived from it. materials as part of its own research and innovation efforts and Clariant is working with partners on using lignocellulose from in various programs with project partners. This should save previously unused timber waste, with the aim of obtaining new energy, reduce waste and lower costs. Clariant is already using sustainable products to replace existing petrochemical several such raw materials in production. The main focus is on substances. Possible applications include adhesives, waxes replacing materials derived from crude oil with renewable raw and carbohydrate derivatives (surfactants, emulsifiers). materials. Fatty acids produced from renewable raw materials and the Functional chemicals from renewable synthetic building blocks are fatty alcohols and fatty amines obtained from them form the used in mining and oil production to achieve better environmental basis of a development project for new stabilizers for plastics. sustainability. By comparison, deicing fluids for airplanes are Clariant is also developing enzyme additives for the detergent now glycerine-based, replacing older products that were based industry to replace organic substances. In the field of cosmetics, on polyglycols produced from petrochemicals. Glycerine is fully bio-based emulsifiers, surfactants and rheology modifiers completely renewable as it comes from biodiesel and soap are increasingly being developed to meet customer demands for production. natural products. Glyoxal is an important intermediate with considerable growth potential. It is used to improve the tear-resistance of paper and in the manufacture of crease-resistant textiles. Itaconic acid,
corporate Governance 13Corporate GovernanceIn defining the management structure, organization and processes Furthermore, the Audit Committee reviews the company’s internalof the Clariant Group, the corporate governance principles control and risk management systems and reviews compliance withaim to provide stakeholder value and transparency to promote the law and internal regulations – in particular, with the Code ofsustainable long-term success. The Group is committed to Swiss Conduct. The Audit Committee meets at least six times a year.and international standards of corporate governance and followsthe rules set out in the Swiss Code of Best Practice for Corporate The Technology and Innovation Committee comprises three membersGovernance and those of the SIX Swiss Exchange. Clariant operates of the Board of Directors with experience in research, innovationin full compliance with the applicable legislation, acts according to management and technology. The tasks of this Committee includethe rules of free competition and opposes any form of corruption. assessing the company’s innovative activities on behalf of the BoardClariant avoids conflicts of interest and protects company property of Directors. The Committee also reviews measures to stimulateagainst abuse and misuse. Clariant strives for sustainability in research and development and optimize innovative potential. Theall areas and at every process stage. The Articles of Association, Technology and Innovation Committee meets at least twice a year.Bylaws of the Board of Directors and the Clariant Code of Conductcan be viewed on the Internet at www.governance.clariant.com. Management of the Group In accordance with the law and the Articles of Association, theCompany organization Board of Directors is the decision-making authority for Clariant Ltd.The Board of Directors is the highest management body at Clariant in all matters except those decisions reserved by law or the ArticlesLtd. It comprises at least six and no more than ten members, of Association for the shareholders. The Board of Directors has soleconsisting of one Chairman, one or more Vice Chairmen and the authority in particular for the following:other members. The members of the Board of Directors constitute › Providing the strategic direction of the Groupthe following Committees: Chairman’s Committee, Audit Committee, › Approving the basic outline of the Group’s organization and itsTechnology and Innovation Committee and Compensation governanceCommittee. › Supervising the overall business operations › Appointing, dismissing and evaluating the performance of theEach committee has a written charter outlining its duties and Chief Executive Officer (CEO) and the members of the Executiveresponsibilities. The committees’ charters are published on CommitteeClariant’s website (www.clariant.com). The committees report on › Approving the Group’s annual budgettheir activities and results to the Board of Directors. They prepare › Approving major M&A transactions and financial transactions ofthe business of the Board of Directors in their respective areas. considerable scope or involving special risks › Ensuring a management and corporate culture that is appropriateThe Audit Committee comprises three members of the Board of for the company’s objectivesDirectors. The Chairman must be an independent, non-executive › Ensuring an internal control system and adequate risk andmember of the Board of Directors. The Audit Committee reviews compliance management, in particular on financial matters,the activities of the external auditors, their collaboration with the corporate governance and citizenship, personnel and environmentalinternal auditors and their organizational adequacy. It also reviews mattersthe performance, compensation and independence of the externalauditors as well as the performance of the internal auditors andreports back to the Board of Directors.
14 Sustainability Report 2010 The Board of Directors has delegated the executive management of › The compensation components should be straightforward, the Clariant Group to the CEO and the other members of the Executive transparent and focused, to guarantee all participants Committee. The Executive Committee is mainly responsible for (shareholders, members of the Board of Directors, the CEO and implementing and monitoring the Group strategy, for the financial members of the Executive Committee) the highest degree of clarity and operational management of the Group and for the efficiency and goal-orientation of the Group’s structure and organization. The CEO and, under his supervision, the Executive Committee are in principle primarily In order to uphold these principles, the Compensation Committee responsible for: analyzes and discusses market developments at regular intervals › Drawing up strategic plans and policies for approval by the Board and considers the implications of these developments for Clariant. of Directors Detailed information can be found in Clariants Annual Report 2010. › Implementing Group strategies and policies as well as strategies and action programs for individual businesses and subsidiaries Code of Conduct › Managing the Business Units and functions to ensure efficient The Clariant Code of Conduct defines responsible behavior and operations, including regularly assessing the achievement of goals applies equally to all employees. According to the Code, their › Ensuring compliance with legal requirements and internal behavior should always be to the benefit of Clariant and as a regulations result the entire workforce and all interest groups. This primarily › Establishing a management and corporate culture in line with the concerns avoiding conflicts of interest, and includes prohibiting company’s objectives active or passive corruption. Financial donations to political parties, › Promoting an active internal and external communications policy associations and organizations must comply with the applicable › Appointing and dismissing senior management, including laws and also be approved and recorded by the Board of Directors. appropriate succession planning Money laundering, insider trading and discriminatory trading and business practices are not permitted. Commercial confidentiality Compensation policy prevails at Clariant. Protection of intellectual property is a matter of The figures relating to the compensation of the Board of Directors course. Comprehensive, objective, up-to-date reports are regularly and the members of the Executive Committee are presented in detail produced on these issues. in the Notes to the Financial Statements of Clariant Ltd. In particular, Clariant’s compensation policy for management is based on the The Clariant Code of Conduct, which is available on the Group website following three principles: (www.clariant.com), defines responsible behavior, protecting the › The level of the total compensation should be competitive and reputation of the company and reducing risks for shareholders. It in line with market conditions and enable Clariant to acquire requires both Clariant as well as each employee to fully abide by a experienced management and experts from Switzerland and comprehensive set of rules, ensuring fair competition, freedom of abroad and secure their long-standing commitment to the Group association and the right to collective bargaining. It strictly prohibits › The structure of the total remuneration should be highly corruption, discrimination and child or forced labor. performance and success oriented in order to ensure that shareholder and management interests are aligned
corporate Governance 15All employees are trained in this Code. Clariant’s General Counsel is degrees of freedom as well as the skill sets and resources required.the ultimate contact point for compliance questions, a responsibility To ensure these improvements are enduring, Clariant also places athat involves tracking of all notifications of Code breaches as well strong emphasis on succession planning and talent management.as all legal issues. In the year under review, no instances of non-compliance with rules and regulations concerning corruption, unfair Clariant is fully compliant with the principles of the Internationalcompetition or discrimination that could have a material impact on Labour Organization (ILO). This includes full compliance withthe Clariant Group were recorded. regulations concerning freedom of association. Discrimination on the grounds of race, ethnic origin, gender, religion, beliefs, disability,Compliance with legal requirements age or sexual orientation is not tolerated.Clariant is committed to treating all competitors, suppliers andcustomers fairly. There were therefore no complaints regarding anti- Approximately half of all employees are covered by collectivecompetitive behavior, or formation of cartels or monopolies. The bargaining agreements. Clariant works closely with employeeLegal department and, if necessary, the Compliance Officer review representatives and staff when operational changes arise (e.g.documents and promotional materials – and all communications plant closures). Clariant wages and salaries are in line with thecontent – scheduled for publication for compliance with legal market and as a result, the company is able to attract the strongestrequirements (unfair competition) and conformity with the Clariant candidates and retain a loyal workforce. The company of course alsoCode of Conduct. Consequently, there have been no cases to date adheres to all local rules relating to the treatment of temporary andin which Clariant has been accused of breaching regulations and part-time employees.voluntary codes of conduct with regard to advertising (includingadvertisements, sales promotions and sponsorship). This also Risk measurement and risk controlapplies to protection of customer data; no complaints have been Clariant Enterprise Risk Management clarifies risk levels andraised regarding breaches of customer data protection. encourages entrepreneurial behavior throughout the Group. The process considers all opportunities and risks to short- andResponsibility medium-term objectives as defined by the Board of Directors. RiskClariant places a high value on being a responsible and supportive Management reviews these analyses for relevance, consistencycorporate citizen wherever it does business. For example, in 2010, and accuracy, for the purpose of subsequently deciding on potentialpartnerships with neighboring communities again included coaching optimization measures. The risk assessment is repeated annuallyprovided by Clariant staff in science, modern languages and IT. The with quarterly updates and interim reporting as necessary. It alsocompany was also involved in charitable and other projects with a ensures that the Executive Committee and the Board of Directorssocial background (see pages 26 and 52). are informed of all significant risks and aims to inform, train and motivate staff.Responsibility also refers in particular to Clariant’s responsibilityto its employees. Through the People Excellence program, Clariantensures that the right employees are available at the right timefor the right position. The program focuses on improving how thecompany develops people, by providing them with the necessary
16 Sustainability Report 2010 For this task, Clariant has developed an effective tool for risk buSIneSS unItS oveRvIew assessment and quantification that also allows rapid specification additives A leading provider of flame retardants, waxes and polymer additives for effects in plastics, coatings and of countermeasures and allocation of responsibilities. The other applications corresponding regulations are based upon the standard of the Institute of Risk Management and benchmarked to the Enterprise detergents & A leading supplier of key raw materials and intermedi- Intermediates ates to the detergents, agro and pharmaceutical Risk Management – Integrated Framework of the Committee of industries Sponsoring Organizations of the Treadway Commission (COSO). The results of the risk assessments are consolidated and the risk emulsions A supplier of water-based emulsions/polymer disper- sions for paints, coatings, adhesives, construction, seal- exposures are assessed by the Executive Committee and the Board ants and for the textile, leather and paper industries of Directors via the Audit Committee. Industrial & Con- A leading provider of specialty chemicals and applica- sumer Specialties tion solutions for consumer care and industrial markets Financial risks are monitored through a comprehensive analysis and evaluation system. Clariant hedges payment stream imbalances Leather Services A leading supplier of chemicals and services to the leather industry between various currencies via options, spot transactions or forward transactions. The exposure of assets and liabilities is addressed by Masterbatches A leading provider of coloration and functionality of plastics, supplying the packaging, consumer goods, means of corresponding opposing positions (natural hedging). Risks medical, textile and automotive sectors associated with interest rate changes are managed primarily by maintaining the right balance between fixed and variable rates, and oil & Mining A leading provider of products and services to the oil, Services refinery and mining industries credit facility maturity. paper Specialties A leading provider of optical brighteners, colorants and functional chemicals for paper and packaging Clariant mitigates risks arising from public and product liability applications by concluding insurance policies and booking provisions. Risks from liabilities arising from acquisitions or disposals are limited pigments A leading global provider of organic pigments and dyes for coatings, paints, printing, plastics and special contractually according to the applicable legislation. Appropriate applications provisions are booked where possible for non-insured litigation including tax law, patent law, product liability, competition law and textile Chemicals A leading producer of dyes and chemicals for the textile industry including apparel, upholstery, fabrics environmental protection. and carpets Clariant operates business-critical software from a centralized computer center with physically separated server parks. The system’s parallel architecture overcomes failures and breakdowns. Reliable and continuously updated tools guard against virus attacks. Clariant also regularly simulates emergencies in software processes and improves procedures accordingly. The process control systems to manage production at the sites are also separate from the outside world and have no direct access to global networks in order to reduce vulnerability to external attempts at manipulation.
corporate Governance 17On fire for sustainable fire protection – Exolit ® non-halogenated flame retardantsA washing machine, a smartphone, an airplane, a plug – electrical industry, where terminal strips in control cabinetsall have something in common: they all contain flame must be identifiable by color. Furthermore, Exolit ® has littleretardants to prevent the plastic from catching fire impact on the outstanding insulating properties of plastics,immediately in the event of overheating or an electrical making it the product of choice for many customers.defect. However, not all flame retardants are equal.And – above all – not all are equally environmentally How important is the environmental aspect for yourcompatible. From this perspective, Exolit ® from Clariant customers?is one of the best currently available on the market. It is becoming increasingly important. Looking ahead, whenThe product’s success can be attributed primarily to this developing new products such as smartphones or electric cars,environmentally compatible feature – as Kay Kutschbach, manufacturers will be asking themselves: How can I makeHead of the Flame Retardants Business Line at them as sustainable as possible? Naturally, they do not want toClariant, explains. get into environmental discussion whenever it comes to new guidelines and regulations. With Exolit ®, they know they are onWhat makes Exolit ® environmentally compatible? the safe side.Exolit ® is non-halogenated, which means that the compoundcontains no bromine or chlorine atoms. Extensive tests have How have sales of Exolit ® developed in recent years?demonstrated the toxicological safety of Exolit ® in plastics, They have exploded! Growth is being measured not in percentthroughout their lifecycle. The product is thus highly but in multiples, which is why we are working on increasingenvironmentally sound – and this is what makes Exolit ® so capacity by mid-2011 by continuously optimizing our productionpopular with customers. In contrast to other non-halogenated process. Over the coming year, in order to keep up with sharplyflame retardants, Exolit ® was developed specifically for rising demand we will be commissioning a second facility withtechnical plastics such as polyamide and polyester, and offers the same capacity as the existing one. Exolit ® is not onlyparticular benefits in these applications. For example, Exolit ® ecologically sustainable but also economically so – creatingis white and can be dyed any color, an important feature for the many new jobs and providing staff with security.
Safety SyStem for SuStainable manaGement 19Safety system forsustainable managementClariant defines its own comprehensive standards and guidelines with companies that operate an environmental management policyrelating to the safety of products, manufacturing and processes, consistent with the international standards of ISO 14001 or whichwhich extend beyond national provisions and apply to all Group units follow a comparable approach. The relevant evidence is obtainedaround the world. The “Safety Management System”, for example, and the interested companies assessed before orders are placed.comprises 26 extensive guidelines on environmental and health Suppliers and service providers are visited on a random basis andprotection as well as internal safety – half of which are devoted their environmental management inspected on site.exclusively to plant safety. The system guarantees a high level ofsafety in procurement, processing and storage operations, as well Clariant’s safety management involves performing the relevant riskas in the distribution of raw materials and products. analyses on all processes. This includes the intensive analysis of all plant, apparatus and machinery in respect of possible malfunctions,The management system is designed to identify and record risks faults or operating errors. The inspections are performed by theon an ongoing basis, and serves to control the potential for risk in respective site in collaboration with the EHS officers and, whereareas ranging from goods receipt via the manufacturing process all appropriate, with representatives from other specialist departments.the way to dispatch of goods and waste disposal. All the identified The entire manufacturing process is analyzed in detail, including theand assessed risks are documented in a risk portfolio with a view receipt of raw materials and initial use of all plants, equipment andto identifying and controlling the potential for risk. This forms the machinery.basis for the development of measures for improvement and thecommensurate investment requirements. The relevant information, Plants currently in operation are monitored constantly and adjustedrated according to significance and urgency, is then submitted to target levels where required. The analyses are documented andto Group management. Should an accident occur, an emergency identify potential risks and hazards as well as specifying technicalmanagement system (see also chapter “Emergency management”, and organizational preventive measures. The safety of processesp. 22) takes effect. and plants is inspected regularly through internal audits.Industrial premises are audited at regular intervals, depending All operational incidents are analyzed with a view to pinpointingon the potential for risk and changes made on site (at least every their causes and putting in place appropriate measures to preventthree years in units with chemical processes). All Clariant units – them from happening again. The responsible process safety expertsbuilding, inventory, production, power supply – are inspected for the are involved in this procedure in order to provide a comprehensiveimplementation, observance and effectiveness of guidelines. The safety assessment of events. Incidents are extremely rare atauditors involved will vary. Audits focus on compliance with relevant Clariant. This is thanks to the sustained and ongoing efforts of allISO standards and compliance with the Clariant risk management those involved, and in particular of plant managers, plant engineerssystem guidelines. Depending on the audit type, audits are carried and safety experts.out by internal experts and external auditors and insurance companyspecialists. Employees are informed of the risks associated with their work in respect of health and safety issues. They receive regular trainingProcurement and production in the safe handling of chemicals and in the use of their personalWhen selecting suppliers and partner companies, Clariant pays protective equipment. Workplaces at which hazardous substancesparticular attention to the high quality and reliability of deliveries are handled are subject to systematic monitoring.and on safe and environmentally sound production. In procuringmaterials and selecting service providers, Clariant prefers to work
20 Sustainability Report 2010 Systematic analysis of material balances and power consumption Storage and transport forms the basis for optimizing chemical processes. The ecological At Clariant, raw materials and products are stored in accordance impact and potential for risk to which man and the environment are with the stringent internal guidelines in force around the world, with exposed are also investigated. Each site captures a range of relevant a view to minimizing the likelihood and possible impact of a fire or environmental key indicators on a regular basis. uncontrolled escape of chemicals. The Clariant storage guidelines are now regarded as a benchmark even by insurance companies. Clariant observes and analyzes all areas that could have a negative Stringent guidelines also apply to the transport of hazardous goods, impact on the environment and where resources could be used more with Clariant naturally also monitoring compliance with national and efficiently. These include: international provisions alike. › Consumption of raw materials in relation to the respective manufactured products Clariant packs and loads substances intended for transport on the › Handling of hazardous substances respective premises in accordance with statutory requirements, › Energy and water consumption in particular those related to hazardous goods. Service providers › Polluted effluents responsible for the onward transport arrangements – such as › Emission of air pollutants Infraserv Logistics GmbH at Clariant’s German sites – are subject › Waste for disposal to the same regulations. In any case safety always comes first. › Substances intended for internal or external recycling Clariant would prefer to destroy defectively packaged goods on its › Noise emissions, polluted areas and soil contamination own account rather than return such goods to the supplier. Reusable › Accidents, incidents and complaints by residents, and packaging is utilized wherever possible with a view to minimizing the › Potential environmental impacts of planned activities environmental impact of packaging in which products are supplied to the customer. Such packaging is returned for refilling once it has been emptied by the customer. Some other used packaging materials are also taken back and recycled systematically. RuLeS deSIgned to enSuRe SaFety duRIng tRanSpoRt 1. In accordance with statutory requirements, Clariant stores 3. The skills of and care taken by the people involved are crucial the key data on each product, such as its classification and to the safety of any hazardous goods transport. Task-specific labeling, on a database in its electronic order and dispatch training and further education courses for Clariant employees, system. All those involved in the transport chain are then held on a regular basis, make a significant contribution to notified and the transport documents containing the statutory safety. data on hazardous goods created automatically. The selection 4. The hazardous goods officers conduct regular inspections of and specification of suitable packaging for the hazardous filling facilities and dispatch points. In addition, thorough goods is integrated into this IT solution. random checks are performed on road vehicles and tank wagons 2. Only experienced and reliable companies are involved in containing hazardous goods before they leave the respective goods storage, picking, scheduling and transport in order to premises. ensure that manpower, organization and equipment comply 5. Transport safety is a central factor when creating and with statutory requirements. The necessary groundwork is implementing product-specific logistics concepts, such as laid, among other things, by the Clariant carrier requirements bundling traffic flows and selecting means of travel and profile, which defines the requirements for reliable transport. partnerships with carriers.
Safety SyStem for SuStainable manaGement 21The packaging used by Clariant meets both customer and statutory pRoduCt and tRanSpoRt paCKagIngrequirements and ensures that product quality is maintained.Packaging is reused or recycled wherever possible. Clariant Clariant generally supplies processing companies rather thanparticipates in programs involving the return of packaging for its safe end customers. This means that many products can beincineration or disposal. All new packaging products are analyzed dispatched as bulk goods by road and rail. Packaging will beto determine their potential risk. European Union regulations cleaned and reused – as long as this is both possible andare deemed to be the standard. Various internationally approved accepted by the customer. However, in many cases customermethods are used to evaluate existing products. requirements or other factors dictate the utilization of packaging that cannot be reused directly.Customer orientation Experience has shown that non-reusable steel and plasticClariant maintains ongoing contact with its customers, who packaging is handled quite differently in different countries.are supported in their application and use of Clariant products. In Germany, for example, products are largely transportedLaboratories are available to deal with special problems. The service in silos or tank trucks and in reusable packaging. The majorityoffering includes comprehensive product information, particularly of products in non-reusable packaging are destined forwith regard to optimum and safe application, health hazards, waste export, including to other European countries. Nevertheless,treatment and the handling of packaging. such packaging is recycled or, especially in the case of packaging containing hazardous substances, recovered for itsSafety data sheets containing the relevant data on substances energy value wherever possible.and information on safe product handling and storage, as well as Clariant prefers to cooperate with international packagingmeasures to be taken in the event of product release or fire, are manufacturers within the framework of its global purchasingmade available by Clariant to all those involved in the further process, with a view to implementing these measures ashandling of the substances. consistently as possible. Promotion of the international standardization process is boosted further by these partnersIn order to ensure that Clariant products do not “fall into the wrong and their networks. In addition to the measures describedhands” and are not used for the manufacture of chemical weapons, above, reuse and recycling are also supported and nowfor example, they are subject to stringent controls in this regard. The implemented in non-European countries around the world asfactory inspection officer (pursuant to the United Nations Chemical part of both established closed-loop systems and thoseWeapons Convention) and the export control officer ensure that the that are currently under development.factories only supply Clariant products to permitted states for thepurpose of further civilian use.Qualified employees Environmental protection and safety are an integral part of theClariant Group management, site management and ultimately responsibility borne by Group management, site managers,each individual employee is involved in a continuous improvement department and plant managers and by all employees. Everyprocess. Clariant ensures that its employees are able to master their employee is obliged to observe regulations, develop procedures andwork on the basis of regulations, processes, rules and instructions working methods and ensure that important information is passedcontained in the management system and by means of training on and the necessary documentation provided in his/her area ofcourses and qualification measures. Employees are thus able to responsibility.review their actions and the respective outcomes themselves andto recognize potential. In this way, risks and opportunities can beidentified and appropriate measures implemented.
22 Sustainability Report 2010 Superiors encourage a sense of responsibility and commitment to Workflows, responsibilities and information pathways are clearly improvements. Employees are familiar with the tasks to be performed defined. If incidents occur, the prevention and minimization of and their relation to corporate policy, strategy and objectives. All hazards for man and the environment are accorded top priority. participants are involved in project identification and performance- As long as emissions into soil, air or water cannot be definitively related teamwork is consciously promoted. A comprehensive excluded, employees of all plants at the respective location are employee suggestion scheme also supports this process. obliged to inform the defined reporting office. Each report is forwarded immediately to the hazard prevention center, which Specially trained experts in water pollution control, emission control coordinates the activities of the emergency management units, such and radiation protection, specialists in occupational health and safety, as the fire department and security and environmental experts. fire prevention and safety experts and specialists in the fields of waste and hazardous goods advise Clariant plants and management Communications and work towards the implementation of environmental protection Public acceptance of a chemical company depends to a large extent and safety measures. They also control compliance with statutory on open and credible communications with members of the public, the and internal provisions and act as the central contact persons for the media, interested groups, authorities, politicians and the company’s respective authorities. own employees. Only an open policy of information on the activities at the respective locations serves to build confidence among the What’s more, Clariant maintains contact with external specialists, above groups. Clariant engages in intensive dialog, including on associations and authorities with a view to setting priorities for environmental and safety issues, with all the interested parties. environmental protection and safety programs. Priorities and programs designed to minimize emissions, to ensure plant safety It takes an active stance on special sustainability issues, including or to improve occupational safety and further education measures the topics of climate protection and greenhouse gases. Under the are drawn up in working groups and environmental protection Carbon Disclosure Project (see https://www.cdproject.net/en-US/ committees. Pages/HomePage.aspx) specific information on the emission of greenhouse gases is provided on a regular basis. Emergency management Despite all precautions, faults in the operation of production and Performance review and improvement infrastructure facilities cannot be entirely avoided. Clariant’s Clariant runs a number of audits, investigations and checks to emergency system provides for a range of reactions and measures, ensure the efficiency of its safety measures and their continuous depending on the severity of the respective incident. Accordingly, improvement. These cover production plants and other technical either Local Emergency Management (LEM), Country Emergency facilities, inventories and laboratories at all locations. The reviews/ Management (CEM) or Global Emergency Management (GEM) audits place the implemented safety concepts under close scrutiny. takes effect. A guideline defines the specific tasks and roles to be Should deviations from the standard emerge, the auditors bring in performed by employees, and regulates the required communication their experience to eliminate any weak points. Any amendments and information at all corporate levels. These workflows and actions required are agreed with those in charge and their implementation are documented in the respective emergency plans and are practiced is checked periodically thereafter. in regular training courses and exercises, thereby minimizing the impact of any accident. Emergency management operates according Regular inspections by occupational safety experts constitute a vital to identical principles at all Clariant locations. tool in the field of accident prevention. Potential for improvement is identified and subsequently implemented wherever possible. Regular EHS (Environment, Health, Safety) audits comprise another
Safety SyStem for SuStainable manaGement 23aspect of Clariant’s efforts to optimize occupational and plant safety. CLaRIant exCeLLenCe aS an InItIatIveAny deviations are dealt with by the respective plants in a timely FoR ContInuouS IMpRoveMentfashion, according to their significance in terms of occupational and In an effort to translate the corporate objectives into aplant safety. sustainable increase in value, Clariant launched the Group-wide Clariant Excellence initiative in 2009 andClariant emphasizes good eco-efficiency and therefore accords subsequently introduced it in all Business Units in 2010.priority to measures with the most favorable cost-benefit ratio. Clariant Excellence is the core initiative for continuousClariant’s EHS network supports the Business Units, companies improvement and comprises four pillars: Operationaland locations in identifying such measures. The recording and Excellence, Commercial Excellence, Innovation Excellenceassessment of environmental impact and aspects serves to and People Excellence. More than 1 000 projects havedetermine the environmental performance of the locations and already generated savings of more than CHF 13 million inBusiness Units. 2009 and approximately CHF 50 million in 2010. Group-wide expansion of the projects will be continued in 2011, and isA total of some 40 relevant key environmental, health and safety expected to result in further substantial savings. Theperformance indicators are captured at the locations and then major focus in implementing the initiative to date has beenconsolidated and analyzed on an annual basis for the Business Units on optimizing the production processes, supply chain andand the Group as a whole. These figures highlight performance and cost structures and on taking measures designed to increaseprogress made, as well as any areas of weakness. They serve to profitability by clearly focusing on margin, price and cashdetermine which measures should be accorded priority in an effort requirements. The initiative will set a further key focus into improve EHS performance. 2011 under Innovation Excellence to gradually boost Clariant’s innovation efforts in the long term. The decisiveFinally, management assessments serve to establish the suitability factors here are a permanent improvement in competitivenessand effectiveness of the management system in performing and consistent implementation of Clariant’s strategy oftasks, implementing strategies and achieving corporate policy profitable, and above all sustainable growth.objectives. Each unit with its own management system conducts anassessment based on its processes and key performance indicatorsor assessment criteria. Environmental protection, safety, cost-effectiveness, customer orientation, health protection, personnel Site Securitymanagement and dealings with authorities and the public are all The importance of security measures has increased considerably intaken into consideration. the wake of the terror attacks on 11 September 2001 in New York. Clariant’s reaction has been to tighten its own property security.Polluted areas and soil decontamination All locations are only accessible via specifically designated accessMany Clariant locations have a long history of dealing with points. Access is only permitted following stringent checks – aschemicals. In some cases, soil was contaminated in the past as a was often previously already the case. Independently of the above,result of former chemical handling. These polluted locations are Clariant has a uniform security concept agreed with the responsiblesystematically inspected and rehabilitation or protective measures site operators. This ensures that measures of comparableare designed, which are then coordinated with the authorities effectiveness are applied at all locations and that only authorizedin the respective countries and implemented. Thanks to its EHS persons have access to the Clariant sites and plants.organization and collaboration with renowned experts, the Group isable to ensure that all the available expertise is incorporated intoan efficient clean-up strategy and that international standards areobserved.
SuStainability in buSineSS operationS 25Sustainability inbusiness operationsClariant is an international player in the specialty chemical industry Against this backdrop, Clariant’s corporate policy and the aimswith strong customer orientation and innovative products. It is one of and programs derived from it support the implementation of thethe leading global suppliers of chemical products for the automotive, principles of Sustainable Development and the global Responsibleelectronics, cosmetics, plastics, crop protection, textiles, detergents, Care initiative® of the chemical industry. Implementation of thispaints, coatings and oil and mining industries. Clariant’s corporate policy boosts both corporate culture and society’s acceptance ofpolicy acts as a model for the development of individual Business specialty chemicals in equal measure, and is crucial to Clariant’sUnit strategies. sustained success. The corresponding principles of action are binding for all employees.An important feature of Clariant’s strategy implementation is amanagement concept that incorporates the principles of social Responsibility in respect of suppliers andresponsibility in decision making and decision implementation. service providersThese principles are accountability, transparency, ethical conduct, With a view to adopting a holistic approach, Clariant requires that itsobservance of stakeholder interests, observance of the rule of law suppliers and service providers comply with the contractually agreedand international standards of conduct and observance of human service features and observe safety and environmental aspects thatrights. Clariant’s market share, value creation and the quality and are equivalent to those of Clariant in their respective applicability.safety of processes, products and performance constitute the The supplier selection, review and assessment process is designedbenchmarks for the success of this concept. Another important to ensure that the procured goods and services satisfy thesecorporate objective – alongside the continuous improvement of requirements. Clariant has stipulated procurement guidelines forenvironmental protection, safety and health protection – is the long- the entire Group, and these take statutory requirements and industryterm return on assets, combined with sustained corporate growth. standards into account as well as Clariant’s own understanding of sustainability. Suppliers are accordingly checked in terms of theirClariant manufactures products that meet people’s basic needs in a reliability, quality, price-performance ratio, social aspects andvariety of application areas, improve their quality of life and secure environmental awareness, as well as service and communication.and increase their standard of living. Research, development andproduction constantly strive to meet and exceed expectations in As an international chemical company with high standards andterms of the quality and safety of Clariant’s products. An equally a high level of social responsibility, Clariant demonstrates itsimportant aim here is to reduce or prevent negative environmental reputation by means of a continuous improvement in product quality.impact. With this in mind, Clariant ensures that their own high standards are also maintained by its suppliers. Already in procurement stage, attention is paid to important sustainability issues, such as energy consumption and CO2 emissions. In the course of market analysis and supplier selection, as for example in a supplier audit, Clariant conducts tests in accordance with relevant sustainability criteria such as ISO standards, which will later be a part of the terms for the order.
26 Sustainability Report 2010 Acting globally, helping locally – Social projects in india and indonesia Clariant Chemical India’s (Kanchipuram) cooperative project Clariant’s social commitment is evident at other locations, too. with the high school at Singadiwakkam in south-eastern India is In the Indonesian region of Tangerang, not far from the Clariant one our oldest local initiatives. Clariant employees regularly site, orphaned children are being given the opportunity of a give pupils English lessons as well as holding basic IT courses. new start in life through a good education in a partnership scheme A first-aid course takes place once a year at the school and the with the Sampoerna Foundation which provides scholarships fundamentals of occupational health and safety even feature to more than two dozen students. on the curriculum. Clariant feels especially responsible for the areas in the immediate vicinity of its sites. We want the locals Numerous small projects are in progress around the world to experience personally and at first hand how the Group is not which Clariant organizes itself or supports. Clariant prides itself only creating jobs in the area but also taking their concerns on being close to its customers and also the local communities seriously. “Our association with the school began around ten in which its factories are located. Thiagaraja Manimaran is years ago and aims to impart knowledge in the young minds convinced that it is this closeness that makes all the difference: and upgrade their knowledge on a par with urban students,” “The people in our neighborhood are proud that we’re here. explains Thiagaraja Manimaran, Clariant Site Manager in They firmly believe that we operate in an ethically correct manner Kanchipuram. He is proud of his staff‘s involvement in this in all we do – and that, in turn, is all the incentive we need project. Clariant is also frequently on hand to provide basic to continue providing this assistance in the future.” classroom provisions whenever necessary.
SuStainability in buSineSS operationS 27When contracts are concluded, the requirements are expressly Responsibility for employeesincluded in Clariant’s General Terms and Conditions of Business. Clariant sets great store by providing its employees with aThese refer explicitly to environmental protection, process safety, professional working atmosphere, with a view to boosting theiraccident prevention, sustainability aspects and occupational health as well as the performance capability of the company as asafety. Supplied goods and services are assessed by Clariant using whole. The principles of corporate policy are explained in detail tothe Complaint Management Tool. Once the procurement process the workforce to this end. The knowledge and willingness of eachhas been completed, supplier performance is measured using the individual employee, the effort made to carry out good quality work,Supplier Evaluation System. and compliance with environmental protection, safety and health protection considerations are promoted at both individual and teamResponsibility for customers level. Clariant makes every effort to provide its employees withIn line with the corporate objective of being one of the world’s most support in this respect. It is not least for this reason that importanceattractive suppliers of specialty chemicals, Clariant is constantly is also attached to broad and informed employee participation in thedeveloping enhanced products and services – not least with continuous improvement process.sustainability in mind. Quality is primarily defined by assessmentcriteria laid down for Clariant by its customers, which must be A positive attitude on the part of employees is promoted through thesatisfied as cost-effectively and completely as possible. Above all, following measures:Clariant focuses on: › Open dialog between all company employees› Excellent and reproducible product characteristics › Appropriate remuneration, recognition, training, further education› Reliability of supply › An attractive company suggestion scheme› Attractive price-performance ratio › A modern company pension scheme› Specific support in terms of business and application technology, › Benefits beyond those stipulated by statutory requirements, such› High product safety (see also chapter “Product Stewardship”, p. 32) as an extended child-rearing period following parental leave or› Development of products and services that open up new options company nursing leave for those with relatives in need of a high for customers level of careThrough its product quality and performance, Clariant helps its Quality, environmental protection, safety and health protectioncustomers achieve sales success in their markets, thus laying demand that employees seize the initiative and take responsibility;the foundations for Clariant’s own success. This is why Clariant this is reflected in:strives for collaboration in a spirit of partnership with current and › Consistent compliance with regulationspotential future customers alike. Such cooperation enables both a › Safety-conscious and environmentally aware actionscomprehensive understanding of the relevant markets and the early › Participation in the ongoing improvement processidentification of new product and process requirements, which inturn provides significant targets for research and development. The following are indicators of the understanding and implementationClariant is subsequently able to furnish customers and consumers of the mission statement and principles:with important information and, where required, support in respect › Intensity of communication in the teams, at plants and locationsof safe and environmentally sound processing, storage, transport › Quality of suggestions for improvementand disposal of chemical products. › Extent and quality of target-oriented and profitable goods and services › Safety and environmental standards
28 Sustainability Report 2010 Revolution in white – leather tanning with EasyWhite tan Fashion and quality-conscious individuals value leather as a use of salt is then no longer necessary. This saves not only classy material, and accessorize with the best bags and belts. time, but also, and in particular, a significant amount of energy. And shoes, of course. Leather car seats are the epitome of Not to mention water – which in turn results in considerably the luxury lifestyle. At the same time, however, genuine less waste water. leather is also said to have another side, particularly from an environmental perspective. This downside relates to the high EasyWhite is currently still in the test phase with selected water and energy consumption, chemicals, use of chromium VI, renowned leather manufacturers. Some have already and contaminated waste water and associated complex water commented enthusiastically that while having been skeptical purification. initially, they were extremely positively surprised by the significant process simplification. This is particularly good news There is also good news, however, to sustainably ease the for one specific individual: Roberta Gamarino. She is Head of environmental conscience of consumers: EasyWhite Tan, a new Application Development Wet End Chemicals and knows tanning process developed by Clariant, should make leather EasyWhite Tan best – naturally, because she invented it! She production considerably more environmentally friendly in future. tried and tested, scrapped some ideas and then came up with “Yes, it’s truly revolutionary,” says Claus Reineking who, as new ones. “Initially all we wanted was to develop a chromium- Head Product Manager for Wet End Chemicals of the Clariant free tanning agent,” she explains. “But as time went on a Leather Services Business Unit, was responsible for the completely new process arose, which is amazingly easy to application and process development of EasyWhite Tan. This work with.” She now hopes that EasyWhite Tan will quickly process involves the use of Granofin Easy F-90, a thick white become established in the leather-making world – and that liquid that is completely free of chromium, aldehyde, formaldehyde, the label “Tanned with EasyWhite Tan” will perhaps in future and phenol. If a tannery switches its tanning process over to even become a requirement demanded by environmentally EasyWhite Tan, two to three production steps are eliminated conscious consumers. completely – including pickling. The environmentally detrimental
SuStainability in buSineSS operationS 29“Our AvoidingAccidents@Clariant initiative is a success story, because every accident is one accident too many!”JOACHiM F. KRüGER, ViCE PRESidENt CORPORAtE ESHAThe health of Clariant’s employees is checked on a regular basis. which the topic of safety is accepted in their departments. AgainstDepending on where they work, some of these check-ups may be this backdrop, AvoidingAccidents@Clariant also intends executivesextensive, and are conducted with a view to detecting any symptoms and management in particular to play an active role.of illness as early as possible (see also the chapters entitled“AvoidingAccidents@Clariant” and “Occupational safety”). Some The program is structured identically at all locations. It startsactivities require special health certificates and vaccinations, and with an extensive survey to determine the exact situation at eachgreat store is set by proper compliance with and application of such site. The support provided to the operating unit is planned on thismeasures. basis according to specific individual requirements. The results are discussed with the responsible managers at the location inAvoidingAccidents@Clariant question and specific implementation plans are agreed. In additionOne of Clariant’s objectives is an ongoing and sustained reduction in to the above, site management also undertakes to implement thethe number of work-related accidents – ideally to zero worldwide. objectives of AvoidingAccidents@Clariant. Corresponding trainingThe AvoidingAccidents@Clariant initiative was launched in the courses, known as Awareness Workshops, then prepare thespring of 2007 to this end. The aim was to cut the lost time accident managers for the necessary changes.rate (LTAR), i.e. the number of accidents (resulting in at least oneday’s loss of work) per 200 000 working hours, to under 0.8 in the Implementation of these training courses is moreover intended asentire Group by 2010. Not only was this objective attained, but it a clear signal to site management that safety must be improved.was clearly exceeded: the LTAR dropped to 0.45 in the reporting year Finally, targeted training courses teach the employees to change(see also the chapter entitled “Occupational safety”). their behavior with regard to safety and to prevent accidents – with the involvement of management. The significance of “leading by“AvoidingAccidents@Clariant” is based on a comprehensive example” is emphasized in this context. Safety is first and foremostanalysis of the causes of work-related accidents at Clariant. This a question of awareness of one’s own job and the related hazards.study initially confirmed facts that were already well known. Only Exemplary conduct and regular training courses are thus essential5 percent of all accidents can be attributed to technical problems. for managers and all employees alike. Plants that operate safelyThe most common cause of accidents, accounting for 75 percent of produce higher-quality products and make better use of resources.the total, is due to deliberate and accidental inappropriate behaviorby employees and management. The study also sheds light on the A striking result of this program is the guideline in force throughoutlesser known fact that in around 20 percent of cases accidents are the Group since 1 June 2008, stipulating that all employees incaused by lacking or inadequate organizational precautions or by the Clariant production plants around the world must wear safety shoes,absence of exemplary conduct on the part of line managers. hard hats and safety glasses in addition to work clothes.Thus the line managers are largely responsible for dictating the levelof occupational safety, as they are in charge of training employeesin safety aspects and their own behavior determines the extent to