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Implementing Sustainability
Lessons from AkzoNobel
Hans van Haarst
Annual Conference for Central Government
October 13, 2010
AkzoNobel Overview01
AkzoNobel in brief
• The world’s largest paint and coatings company and a world leading
chemicals producer
• Committed to delivering Tomorrow’s Answers Today
• Global Fortune 500 company
• For five consecutive years listed as one of the leaders of the Dow Jones
Sustainability Indexes (Chemical sector)
Values
• Focusing on our customers’ future first
• Embracing entrepreneurial thinking
• Developing the talents of our people
• The courage and curiosity to question
• Integrity and responsibility in our actions
3Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview
Sustainability is integrated in everything
we do
We have set ambitious sustainability targets:
• Remain in the top three in the Dow Jones Sustainability Indexes
• Reduce our total recordable injury rate* to 2
• Deliver a step change in people development
We focus on long-term performance. By 2015 our ambition is:
• That Eco-premium** products will make up 30 percent of sales
• To reduce our cradle-to-gate carbon footprint with 10 percent
• To achieve sustainable fresh water use on all our sites
We have linked remuneration to these targets and ambitions:
• Our executive bonuses are linked to performance in the leading
sustainability index (DJSI)
* Total recordable injury rate refers to amount of incidents per million hours worked
** Higher eco-efficiency than main competitive product
4Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview
Sustainability in AkzoNobel02
The sustainability building blocks
Invent (tomorrow)
Integrate sustainable
value propositions
Manage (today)
Include
sustainability in
all aspects of
the value chain
Improve (yesterday)
Continue to comply and
ensure a license to
operate
R&D
Manu-
facturing
Sourcing
Sales
and
marketing
Market
research
Investment
decisions
Level of development
Environmental Economic Social
Required
eco-analysis
Supportive
supplier visits
Carbon and
water policies
Eco-premium
Code of
Conduct
Stretched
safety targets
Aspect of sustainability (linked to DJSI)
Examples
Leadership
training
Product
Stewardship
Operational
Eco-Efficiency
6Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
World class purchasing
Supportive
supplier visits
7Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
Carbon policy
kgCO2perkgproduct
Source: Sustainability Council June 18th 2008
Extraction Salt Chlor-Alkali Transportation Application Use
Suppliers AkzoNobel’s operation Customers
8Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
An innovative,
low solvent
product portfolio
VOC’s
9Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
Waste
Zero waste via
operational
efficiency
10Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
People Development
Developing the
talents of our
people:
advanced
leadership
programs
11Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
03 How to Successfully Implement?
5 Lessons
12
1 - Sustainability is not a department
13
• It needs to be part of the DNA of your people
• All functions in the company need to contribute
• Integrate it at work, at home and in social life
• Link to compensation
• Facilitate through small expertise and knowledge centres
Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
2 - Make the data visible
14Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
3 - Walk the talk….and talk the walk
15Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
4 - It is the right thing to do
You
=
AkzoNobel
Sustainability has a strong business case
Sustainability
16Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
5 – Put innovation and collaboration high
on the agenda
17
• Step 1: Use existing knowledge and concepts from within your company
• Step 2: Find and implement existing knowledge and concepts in other
industries
•Step 3: Research and collaborate to address longer term un-met needs
and issues
Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
Implementing Sustainability
Lessons from AkzoNobel
Hans van Haarst
Annual Conference for Central Government
October 13, 2010

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Sustainability lessons - hans van haarst

  • 1. Implementing Sustainability Lessons from AkzoNobel Hans van Haarst Annual Conference for Central Government October 13, 2010
  • 3. AkzoNobel in brief • The world’s largest paint and coatings company and a world leading chemicals producer • Committed to delivering Tomorrow’s Answers Today • Global Fortune 500 company • For five consecutive years listed as one of the leaders of the Dow Jones Sustainability Indexes (Chemical sector) Values • Focusing on our customers’ future first • Embracing entrepreneurial thinking • Developing the talents of our people • The courage and curiosity to question • Integrity and responsibility in our actions 3Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview
  • 4. Sustainability is integrated in everything we do We have set ambitious sustainability targets: • Remain in the top three in the Dow Jones Sustainability Indexes • Reduce our total recordable injury rate* to 2 • Deliver a step change in people development We focus on long-term performance. By 2015 our ambition is: • That Eco-premium** products will make up 30 percent of sales • To reduce our cradle-to-gate carbon footprint with 10 percent • To achieve sustainable fresh water use on all our sites We have linked remuneration to these targets and ambitions: • Our executive bonuses are linked to performance in the leading sustainability index (DJSI) * Total recordable injury rate refers to amount of incidents per million hours worked ** Higher eco-efficiency than main competitive product 4Implementing Sustainability Lessons from AkzoNobel | AkzoNobel Overview
  • 6. The sustainability building blocks Invent (tomorrow) Integrate sustainable value propositions Manage (today) Include sustainability in all aspects of the value chain Improve (yesterday) Continue to comply and ensure a license to operate R&D Manu- facturing Sourcing Sales and marketing Market research Investment decisions Level of development Environmental Economic Social Required eco-analysis Supportive supplier visits Carbon and water policies Eco-premium Code of Conduct Stretched safety targets Aspect of sustainability (linked to DJSI) Examples Leadership training Product Stewardship Operational Eco-Efficiency 6Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 7. World class purchasing Supportive supplier visits 7Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 8. Carbon policy kgCO2perkgproduct Source: Sustainability Council June 18th 2008 Extraction Salt Chlor-Alkali Transportation Application Use Suppliers AkzoNobel’s operation Customers 8Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 9. An innovative, low solvent product portfolio VOC’s 9Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 10. Waste Zero waste via operational efficiency 10Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 11. People Development Developing the talents of our people: advanced leadership programs 11Implementing Sustainability Lessons from AkzoNobel | Sustainability in AkzoNobel
  • 12. 03 How to Successfully Implement? 5 Lessons 12
  • 13. 1 - Sustainability is not a department 13 • It needs to be part of the DNA of your people • All functions in the company need to contribute • Integrate it at work, at home and in social life • Link to compensation • Facilitate through small expertise and knowledge centres Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
  • 14. 2 - Make the data visible 14Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
  • 15. 3 - Walk the talk….and talk the walk 15Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
  • 16. 4 - It is the right thing to do You = AkzoNobel Sustainability has a strong business case Sustainability 16Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
  • 17. 5 – Put innovation and collaboration high on the agenda 17 • Step 1: Use existing knowledge and concepts from within your company • Step 2: Find and implement existing knowledge and concepts in other industries •Step 3: Research and collaborate to address longer term un-met needs and issues Implementing Sustainability Lessons from AkzoNobel | 5 Lessons
  • 18. Implementing Sustainability Lessons from AkzoNobel Hans van Haarst Annual Conference for Central Government October 13, 2010