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Corporate Responsibility as business driver
in the Trelleborg Group
Trondheim, 11 October 2012
Rosman Jahja
CR Communications and Internal Communications, Trelleborg Group
About myself
            Rosman Jahja


                   Communications Manager, Internal Communications and
                   Corporate Responsibility Communications, Coordinator of
                   CR Communications Forum, Trelleborg Group

          ■ Background:
            M.Sc., Environmental Management and Policy,
            International Institute of Industrial Environmental
            Economics, Lund, Sweden (1996)

          ■ Author of books including
            ”Environmental problems, sustainability and environmental
            management” (Studentlitteratur 1996)

TRELLEBORG GROUP
A leading global engineering Group
             Trelleborg Group profile

            ■ Global leader in polymer technology
            ■ Founded in 1905
            ■ Annual sales:
              about SEK 22 billion
              ~ € 2.4 billion, $ 3.3 billion
            ■ Employing 15,500 people in
              over 40 countries worldwide
            ■ ~ 90 manufacturing plants
            ■ Owns 50 percent of
              TrelleborgVibracoustic with annual sales of SEK 13 billion
              (€ 1.45 billion, $ 2.0 billion) and about 8,000 employees in 17
              countries



3   October 23, 2012
Corporate Responsibility in Trelleborg
                                                  Governance
                                                 and reporting
                                Internally                                         Externally

                            Code of Conduct                                     CR reporting
                              Workplace and                                       CR website
                            environment issues        Self-      External         CR Report
                            Marketplace issues      evaluation    audits         Annual Report
                               Society and
                             community issues
                                Policies




            International
                             UN human rights                                 GRI guidelines
             guidelines
                                                                            Economic performance
                             ILO conventions
                                                                               Environmental
                             OECD guidelines                                    performance
                            UN Global Compact                                Social performance




TRELLEBORG GROUP

4   October 23, 2012
Toward a value-adding
          Corporate Responsibility approach

             Levels of CR from low (left) to high (right) value creation

                   Compliance/                     Cost-saving             Business case
                   Risk minimizing

             • Code of Conduct                    • Initiatives to         • Well-defined value
             • Compliance with                     improve energy           proposition (Blue
               Governmental                        efficiency in plants     DimensionTM)
               guidelines (UN, ILO,                and offices             • Focus on energy
               OECD)                              • Improvement             and environmental
             • Self-evaluation                     efforts along entire     growth initiatives
             • External audits
                                                   value chain              (sales and R&D)
                                                   (suppliers and          • Part of Managers’
             • Reporting compliant                 customers)
               with GRI guidelines                                          operational
                                                  • Capital efficiency      responsibility
             • Transparent                         (new capex)
               communication and
               key stakeholder dialog


TRELLEBORG GROUP

5
Trelleborg needs to satisfy
          Customers AND Society AND Employees
          Stakeholder overview




TRELLEBORG GROUP
First case: the TM Blue tire
          Innovation for sustainable farming (launched Feb 2011)
          http://www.trelleborg.com/en/wheelsystems/About-Us/TM-Blue/




TRELLEBORG GROUP
Harvard Business Review: Creating Shared Value
          by Michael E. Porter and Mark J. Kramer
          http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/1




TRELLEBORG GROUP
Trelleborg Corporate Responsibility pyramid
         A sort of Maslow hierarchy, developing upward over time.
         ”Traditional” CR inside company at the bottom, Blue DimensionTM at the top




                                ■   Sustainable
                                                                           ■   External and Internal Transparency:
                                    Products                                          CR Reporting,
                                                                                      Stakeholder dialog,
                                                  Products and solutions              Materiality analysis
                                                     good for society

            ■      Operational /Process KKPI improvement: Waste, Energy, Carbon
                                          emissions, Other emissions, Chemicals,
                   Improvement
                                           Anticorruption, Training/Development ,
                                         Performance reviews, Social Engagement
                                                                                                           Mainly
   ■     Compliance &   Basics: Environmental Management, Human Rights, Health &                           Internal
         Risk Management Safety, Permits, REACH, Whistleblowing, Other legal/risk                          Focus
                                                matters



TRELLEBORG GROUP
Blue DimensionTM – Brochure




TRELLEBORG GROUP
TRELLEBORG GROUP




                The Blue DimensionTM
                of Trelleborg
                agricultural tires
                         Higher crop yields. Lower fuel
                         consumption. Reduced CO2
                         emissions.
                         Fuel savings: Up to 3,000 liters a
                         year (for a 260 hp tractor).
                         Footprint: Up to 13% wider than the
                         market average.


11 2012-10-23
Blue DimensionTM is about our solutions


■   What is our Blue DimensionTM ?
    We seal, damp and protect in order to help our customers be successful. Blue DimensionTM
    refers to products and solutions that not only satisfy the needs of the customer but also
    benefit people and society.

■   Why are we doing this?
    We are dedicated to developing products and solutions that are good – not only for
    customers and business, but also for society.

■   Who is it for?
    We know that potential and existing customers are increasingly looking for sustainability as
    an additional value when choosing business partners.
Vision – How it all fits together
          The integrated reporting of tomorrow will give a fairer view of a company




                   ■ Tomorrow

                                                Integrated
                                                 reporting




                                                  Blue
                                               DimensionTM
                   ■ Today

                                  Financial                       CR
                                 Performance                 Performance




TRELLEBORG GROUP
Corporate Responsibility Communications
          2012
          Semi-Integrated Annual Report for 2012

          ■ Main thread = Investment story: Invest in a focused polymer
            group with the power to accelerate performance in a
            sustainable way.
             ■ Golden thread in Sustainability (CR + Blue DimensionTM)
               which reduces risk and opens new market segments.
             ■ Make the integration of Business Strategy and Sustainability
               more visible => toward Integrated Reporting




TRELLEBORG GROUP
Biggest challenges?




TRELLEBORG GROUP
Blue Dimension Jam (February 2012)
          Internal campaign for awareness and good examples




TRELLEBORG GROUP
TRELLEBORG GROUP
Tentative CR Blog Topics
          Very easy to find things to explain and ask questions about

          ■ What is our Blue DimensionTM? Most obvious product areas
          ■ What is not our Blue DimensionTM about?
          ■ How our Brand messages go hand in hand with Blue DimensionTM
            and Corporate Responsibility
          ■ Relaunch of Energy Excellence
          ■ How Manufacturing Excellence and CR goes hand in hand
          ■ Improved CO2 Reporting – upstream and downstream
          ■ Do you know our Code of Conduct?
          ■ What sustainability aspects are most important for Trelleborg?
          ■ Why we are a part of the UN Global Compact
          ■ Check out our CR Website
          ■ Global Reporting Initiative simplifies comparisons and benchmarks
          ■ What is Carbon Disclosure Project?
          ■ What is Dow Jones Sustainability Indexes?


TRELLEBORG GROUP

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Corporate Responsibility as business driver in the Trelleborg Group by Rosman Jahja

  • 1. Corporate Responsibility as business driver in the Trelleborg Group Trondheim, 11 October 2012 Rosman Jahja CR Communications and Internal Communications, Trelleborg Group
  • 2. About myself Rosman Jahja Communications Manager, Internal Communications and Corporate Responsibility Communications, Coordinator of CR Communications Forum, Trelleborg Group ■ Background: M.Sc., Environmental Management and Policy, International Institute of Industrial Environmental Economics, Lund, Sweden (1996) ■ Author of books including ”Environmental problems, sustainability and environmental management” (Studentlitteratur 1996) TRELLEBORG GROUP
  • 3. A leading global engineering Group Trelleborg Group profile ■ Global leader in polymer technology ■ Founded in 1905 ■ Annual sales: about SEK 22 billion ~ € 2.4 billion, $ 3.3 billion ■ Employing 15,500 people in over 40 countries worldwide ■ ~ 90 manufacturing plants ■ Owns 50 percent of TrelleborgVibracoustic with annual sales of SEK 13 billion (€ 1.45 billion, $ 2.0 billion) and about 8,000 employees in 17 countries 3 October 23, 2012
  • 4. Corporate Responsibility in Trelleborg Governance and reporting Internally Externally Code of Conduct CR reporting Workplace and CR website environment issues Self- External CR Report Marketplace issues evaluation audits Annual Report Society and community issues Policies International UN human rights GRI guidelines guidelines Economic performance ILO conventions Environmental OECD guidelines performance UN Global Compact Social performance TRELLEBORG GROUP 4 October 23, 2012
  • 5. Toward a value-adding Corporate Responsibility approach Levels of CR from low (left) to high (right) value creation Compliance/ Cost-saving Business case Risk minimizing • Code of Conduct • Initiatives to • Well-defined value • Compliance with improve energy proposition (Blue Governmental efficiency in plants DimensionTM) guidelines (UN, ILO, and offices • Focus on energy OECD) • Improvement and environmental • Self-evaluation efforts along entire growth initiatives • External audits value chain (sales and R&D) (suppliers and • Part of Managers’ • Reporting compliant customers) with GRI guidelines operational • Capital efficiency responsibility • Transparent (new capex) communication and key stakeholder dialog TRELLEBORG GROUP 5
  • 6. Trelleborg needs to satisfy Customers AND Society AND Employees Stakeholder overview TRELLEBORG GROUP
  • 7. First case: the TM Blue tire Innovation for sustainable farming (launched Feb 2011) http://www.trelleborg.com/en/wheelsystems/About-Us/TM-Blue/ TRELLEBORG GROUP
  • 8. Harvard Business Review: Creating Shared Value by Michael E. Porter and Mark J. Kramer http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/1 TRELLEBORG GROUP
  • 9. Trelleborg Corporate Responsibility pyramid A sort of Maslow hierarchy, developing upward over time. ”Traditional” CR inside company at the bottom, Blue DimensionTM at the top ■ Sustainable ■ External and Internal Transparency: Products CR Reporting, Stakeholder dialog, Products and solutions Materiality analysis good for society ■ Operational /Process KKPI improvement: Waste, Energy, Carbon emissions, Other emissions, Chemicals, Improvement Anticorruption, Training/Development , Performance reviews, Social Engagement Mainly ■ Compliance & Basics: Environmental Management, Human Rights, Health & Internal Risk Management Safety, Permits, REACH, Whistleblowing, Other legal/risk Focus matters TRELLEBORG GROUP
  • 10. Blue DimensionTM – Brochure TRELLEBORG GROUP
  • 11. TRELLEBORG GROUP The Blue DimensionTM of Trelleborg agricultural tires Higher crop yields. Lower fuel consumption. Reduced CO2 emissions. Fuel savings: Up to 3,000 liters a year (for a 260 hp tractor). Footprint: Up to 13% wider than the market average. 11 2012-10-23
  • 12. Blue DimensionTM is about our solutions ■ What is our Blue DimensionTM ? We seal, damp and protect in order to help our customers be successful. Blue DimensionTM refers to products and solutions that not only satisfy the needs of the customer but also benefit people and society. ■ Why are we doing this? We are dedicated to developing products and solutions that are good – not only for customers and business, but also for society. ■ Who is it for? We know that potential and existing customers are increasingly looking for sustainability as an additional value when choosing business partners.
  • 13. Vision – How it all fits together The integrated reporting of tomorrow will give a fairer view of a company ■ Tomorrow Integrated reporting Blue DimensionTM ■ Today Financial CR Performance Performance TRELLEBORG GROUP
  • 14. Corporate Responsibility Communications 2012 Semi-Integrated Annual Report for 2012 ■ Main thread = Investment story: Invest in a focused polymer group with the power to accelerate performance in a sustainable way. ■ Golden thread in Sustainability (CR + Blue DimensionTM) which reduces risk and opens new market segments. ■ Make the integration of Business Strategy and Sustainability more visible => toward Integrated Reporting TRELLEBORG GROUP
  • 16. Blue Dimension Jam (February 2012) Internal campaign for awareness and good examples TRELLEBORG GROUP
  • 18. Tentative CR Blog Topics Very easy to find things to explain and ask questions about ■ What is our Blue DimensionTM? Most obvious product areas ■ What is not our Blue DimensionTM about? ■ How our Brand messages go hand in hand with Blue DimensionTM and Corporate Responsibility ■ Relaunch of Energy Excellence ■ How Manufacturing Excellence and CR goes hand in hand ■ Improved CO2 Reporting – upstream and downstream ■ Do you know our Code of Conduct? ■ What sustainability aspects are most important for Trelleborg? ■ Why we are a part of the UN Global Compact ■ Check out our CR Website ■ Global Reporting Initiative simplifies comparisons and benchmarks ■ What is Carbon Disclosure Project? ■ What is Dow Jones Sustainability Indexes? TRELLEBORG GROUP