Hempel Corporate Responsibility Report 2011
Hempel Corporate Responsibility Report 2011 Hempel Corporate Responsibility Report 2011
Corporate Responsibility Report 2011
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<strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Contents<br />
Introduction to the<br />
<strong>Hempel</strong> <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong> 02<br />
How we work with <strong>Corporate</strong> <strong>Responsibility</strong> 03<br />
Ethical behaviour 04<br />
Our people 06<br />
Community engagement:<br />
Our corporate social responsibility08<br />
Employee volunteering 11<br />
Procurement 13<br />
Health & Safety 14<br />
Environment 16<br />
<strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Introduction to the<br />
<strong>Hempel</strong> <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong><br />
I am proud to introduce our <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong>.<br />
Since its creation in 1915, the <strong>Hempel</strong> Group has been<br />
at the forefront of companies who acknowledge that their<br />
responsibilities lie far beyond financial achievements and<br />
numbers on a balance sheet. In recent years, our customers,<br />
suppliers and employees have expressed an increasing<br />
interest in knowing more about our work within <strong>Corporate</strong><br />
<strong>Responsibility</strong>. We have therefore published our first<br />
consolidated report as a way to provide our stakeholders<br />
with a better picture of the key values that drive us as<br />
we conduct our business.<br />
We believe our coatings contribute to a better world through<br />
increased protection and fuel efficiency, but we also know<br />
that our activities involve chemicals. So we must focus each<br />
and every day on reducing our environmental impact and<br />
creating a healthy and safe workplace for everyone directly<br />
or indirectly involved in our products. We meet these goals<br />
by providing quality training to our employees and through<br />
innovative research into new technologies – all without<br />
compromising the high level of product performance<br />
rightly expected by our customers.<br />
Our global presence, with activities in most parts of the<br />
world, has been possible because our business is based on<br />
the respect of each individual and every culture.<br />
All <strong>Hempel</strong> employees are connected through our Code<br />
of Conduct and our common fundamental values of Quality<br />
and Service. These principles support our underlying<br />
standard of ethical behaviour, which we believe is essential<br />
for a more transparent business and a better world.<br />
A company like ours cannot be a part of the greater<br />
global society without also being an active player in local<br />
communities. In <strong>Hempel</strong>, we believe that everyone deserves<br />
a fair chance at a proper education, as access to education<br />
is a crucial step in overcoming poverty and building a solid<br />
future for individuals, families and even countries. This is<br />
why the <strong>Hempel</strong> Foundation invests heavily in schools and<br />
education programmes in areas of the world that<br />
are especially in need.<br />
I hope you will enjoy this journey through our current<br />
and future initiatives within <strong>Corporate</strong> <strong>Responsibility</strong>, and<br />
that this report will give you the confidence that we are<br />
a valuable coatings partner.<br />
Pierre-Yves Jullien<br />
Group President and CEO<br />
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Ethical Behaviour | Our People | Community Engagement | ProcuREment | Health & Safety | Environment<br />
How we work with <strong>Corporate</strong> <strong>Responsibility</strong><br />
The <strong>Hempel</strong> Group is committed to conducting business in a socially<br />
responsible manner and with respect for our environment and communities.<br />
Supplying coatings to the Decorative, Protective,<br />
Marine, Container and Yacht market segments, <strong>Hempel</strong><br />
has 24 factories, 48 sales offices and 10 R&D centres all<br />
over the world. We strive to create a safe and inspiring<br />
workplace that also engages with the local community.<br />
Our <strong>Corporate</strong> <strong>Responsibility</strong> work also aims to foster a<br />
closer dialogue with our stakeholders, customers, suppliers<br />
and employees. By discussing our ambitions within <strong>Corporate</strong><br />
<strong>Responsibility</strong>, we hope to build even stronger relationships<br />
based on exceptional business practices and ethics.<br />
In <strong>2011</strong>, we established a governance structure, including<br />
a steering committee headed by the CFO, to ensure<br />
commitment from top management and alignment with our<br />
business strategy. At the same time, we also went through a<br />
process to structure our work within <strong>Corporate</strong> <strong>Responsibility</strong><br />
and to ensure we cover all aspects of our business. The<br />
process involved representatives from top management and<br />
included workshops and training sessions. As part of the<br />
process, we analysed our business and identified six focus<br />
areas within <strong>Corporate</strong> <strong>Responsibility</strong> for <strong>Hempel</strong>: ethical<br />
behaviour, our people, community engagement, procurement,<br />
health and safety, and the environment.<br />
This <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> gives an overview of our<br />
efforts in each of our six focus areas.<br />
As part of our One <strong>Hempel</strong> – One Ambition strategy, we acquired Crown Paints<br />
in <strong>2011</strong>. Crown Paints will publish its own Sustainability <strong>Report</strong> for <strong>2011</strong> and is<br />
therefore not included in this report.<br />
About the <strong>Hempel</strong> Foundation<br />
The main purpose of the <strong>Hempel</strong> Foundation<br />
is to own, secure and provide a sound<br />
economic basis for the continued existence<br />
and development of the business carried<br />
out by the <strong>Hempel</strong> Group worldwide.<br />
The <strong>Hempel</strong> Foundation also supports<br />
charitable projects of a cultural,<br />
humanitarian and scientific nature around<br />
the world, especially if they help meet<br />
the world’s environmental and poverty<br />
challenges. To make this contribution as<br />
effective as possible, the Foundation<br />
focuses on two key issues:<br />
the education of children in need,<br />
and research into environmentally<br />
sustainable solutions for<br />
the coating industry.<br />
3
Ethical behaviour<br />
Conducting business in a responsible manner, with respect<br />
for our individual employees and the communities in which<br />
we operate, has always been a priority for <strong>Hempel</strong>.<br />
While we ensure compliance with all relevant laws and<br />
regulations in the countries where we have a presence,<br />
mere compliance is not enough. With this in mind,<br />
we have launched a number of training programmes and<br />
other initiatives to make certain our ethics standards<br />
are met in all areas of our business.<br />
We have policies in place that cover communication,<br />
business ethics, management responsibility and health,<br />
safety and environment.<br />
Internal audits<br />
Internal audits are an important part of our commitment to<br />
ethical business behaviour. Not only do they ensure safe<br />
operations and proper working conditions, they also support<br />
our awareness of all the legal requirements surrounding the<br />
use and sale of our products.<br />
Each year, we carry out an extensive internal audit programme<br />
that ensures compliance with our company’s standard<br />
procedures and financial requirements, as well as our HSE<br />
Management requirements and other legal aspects. In<br />
<strong>2011</strong> alone, we conducted more than 25 individual audits of<br />
<strong>Hempel</strong> companies within the <strong>Hempel</strong> Group. Each region also<br />
conducts its own internal audits of Quality and Environment.<br />
The audit reports are sent to our Executive Group Management<br />
Team along with quarterly reports demonstrating<br />
follow-up results.<br />
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Ethical Behaviour | Our People | Community Engagement | ProcuREment | Health & Safety | Environment<br />
Code of Conduct and Business Ethics<br />
Our Code of Conduct describes how <strong>Hempel</strong> conducts<br />
business. A copy is given to all of our suppliers along with<br />
a request that they respect these guidelines when doing<br />
business with us. Our Business Ethics policy provides further<br />
guidance for all employees and includes guidelines regarding<br />
gifts and entertainment. The policy also covers conflicts of<br />
interest as well as our anti-bribery clause.<br />
We also provide each of our employees with a copy of our<br />
Code of Conduct and our Business Ethics policy when they<br />
join <strong>Hempel</strong>. To ensure these guidelines and policies are<br />
understood and adhered to, we developed an online training<br />
programme and test that covers both documents. Any<br />
employee that does not pass the test is required to retake<br />
it. This training programme has already been rolled out to all<br />
office and management staff in the Americas region, with a<br />
100 per cent completion rate. Over the course of 2012, the<br />
programme will be rolled out to the other <strong>Hempel</strong> regions.<br />
Anti-bribery policy<br />
As stated in both our Code of Conduct and our Business Ethics policy,<br />
<strong>Hempel</strong> is determined to avoid any form of corruption or bribery.<br />
The payment or acceptance of a bribe is fundamentally inconsistent<br />
with <strong>Hempel</strong>’s values and our high standard of honesty in<br />
business relationships.<br />
Competition law<br />
As part of our efforts to ensure competition law compliance,<br />
a number of important markets were audited in 2010 and <strong>2011</strong>.<br />
These markets were subsequently provided compliance training that<br />
was based on an analysis of current sales, trends and <strong>Hempel</strong>’s<br />
position in the relevant product markets.<br />
In addition to the audits, European employees of the <strong>Hempel</strong> Group<br />
also took part in webinar-based training sessions to improve their<br />
understanding of competition law. Similar training sessions and audits<br />
are planned for the years ahead, and the programme will be expanded<br />
to cover the Americas, Middle East and Asia Pacific as well.<br />
5
Our people<br />
In order to achieve our vision<br />
and One <strong>Hempel</strong> – One Ambition<br />
strategic objectives, we need the<br />
right people on our team. Success<br />
in our competitive global market<br />
hinges on providing an attractive<br />
work environment that enables our<br />
people to grow professionally while<br />
making a difference for our customers.<br />
In <strong>Hempel</strong>, we offer our 5,000<br />
employees the support they need to<br />
realise their professional goals and<br />
reach their full potential.<br />
Recruitment<br />
Recruiting a considerable number of new employees in<br />
both mature and emerging markets is an important step in<br />
supporting our ambitious growth strategy. This past year, we<br />
implemented a best practice process and assessment tools<br />
for global recruitment, and we developed and implemented<br />
a new employee orientation e-learning programme. This<br />
programme provides a common introduction to <strong>Hempel</strong> in<br />
multiple languages, helpings us integrate new employees<br />
faster and more effectively throughout <strong>Hempel</strong>’s organisation.<br />
Performance and development<br />
To support the performance and continued growth of both<br />
our employees and our company, annual performance and<br />
development reviews are mandatory for all <strong>Hempel</strong> employees.<br />
The employee performance evaluation process includes<br />
goal setting, performance measurements, feedback and<br />
recognition. The aim is to recognise achievement, evaluate<br />
progress and support the continued development of<br />
each employee.<br />
Training<br />
<strong>Hempel</strong> Academy is our global centre for training and<br />
development. Based in Copenhagen, Denmark and Shanghai,<br />
China, the Academy develops and delivers training<br />
programmes for both employees and customers. The<br />
training offerings include paint technology, management,<br />
leadership, communication, finance, and sales and marketing.<br />
These programmes draw on <strong>Hempel</strong>’s position as a global<br />
organisation and our instruction methods incorporate<br />
e-learning, webinars, classroom training, seminars,<br />
workshops and personal, one-on-one coaching.<br />
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Ethical Behaviour | Our People | Community Engagement | ProcuREment | Health & Safety | Environment<br />
Developing leadership talent<br />
Our talent programme prepares tomorrow’s leaders, fosters<br />
innovation and helps us attract, develop and retain the right<br />
people. To strengthen our pool of future leaders, the <strong>Hempel</strong><br />
talent programme Explorer – Next Generation was launched<br />
in 2010. The programme is designed to develop general<br />
leadership skills as well as nurture specific competencies<br />
and expertise. More than 50 <strong>Hempel</strong> employees were<br />
accepted into the programme in its first year alone.<br />
Taking care of our people<br />
In 1954 J.C. <strong>Hempel</strong> established the Employee Foundation to provide<br />
financial support for people connected to <strong>Hempel</strong> (employees or<br />
relatives of employees) who are in special need of assistance.<br />
<strong>Hempel</strong>’s Employee Foundation helps those associated with <strong>Hempel</strong><br />
who are suffering hardships primarily due to catastrophic illness,<br />
death of a family member or other similar tragic circumstances.<br />
Young talent<br />
In <strong>Hempel</strong>, we offer young, talented people opportunities to<br />
develop their competencies through trainee programmes in<br />
our main markets. For example, our China trainee programme<br />
admits up to 16 young graduates per year and opens the door<br />
to careers within sales, technical service and supply chain<br />
management. Each position provides a structured training<br />
programme over 18-24 months and valuable on-the-job<br />
experience that prepares participants for a career within<br />
the <strong>Hempel</strong> Group.<br />
In addition to our local trainee programmes, <strong>Hempel</strong> also<br />
collaborates with AIESEC (the world’s largest student-run<br />
organisation) to offer international internships that give<br />
young people hands-on experience and skills.<br />
In <strong>2011</strong>, <strong>Hempel</strong> developed a new global HR system that will help streamline our HR processes<br />
and give us better global reporting capabilities. This new HR system was implemented in the<br />
Americas region in <strong>2011</strong> and will be rolled out in the rest of <strong>Hempel</strong> during 2012.<br />
7
Community engagement:<br />
our corporate social responsibility<br />
A company is an integral part of a community. And while<br />
all companies contribute by paying taxes and creating jobs,<br />
<strong>Hempel</strong>’s global reach enables us to play a larger role in<br />
society. Through the <strong>Hempel</strong> Foundation, we support cultural<br />
and humanitarian projects around the world, with a specific<br />
focus on the education of children in need.<br />
Education of children in need<br />
As one of the most viable pathways out of poverty, an education is the key to lasting,<br />
positive change for many children. And yet for millions, a formal education is well<br />
beyond reach. That is why <strong>Hempel</strong> supports initiatives to help teach disadvantaged<br />
children, who urgently need a foundation for learning in order to build a better future<br />
for themselves, their families and their communities.<br />
Children enrolled in the following education programmes supported by the <strong>Hempel</strong><br />
Foundation receive a quality education that includes community outreach, parental<br />
involvement, teacher training, new textbooks and modern learning materials. In 2013,<br />
we plan to expand the number of projects in order to give even more children around<br />
the world access to a quality primary education.<br />
8 <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Pune, India<br />
Despite India’s growing prosperity,<br />
millions of the country’s children<br />
lack access to proper education. The<br />
<strong>Hempel</strong> Foundation is supporting three<br />
schools in Pune, a city located 150<br />
km east of Mumbai. The schools are<br />
in one of the city’s less-developed<br />
areas, and the improvements include<br />
the development of new materials for<br />
teaching and learning, repairs to the<br />
buildings and upgrades to the facilities<br />
and classrooms. The project also helps<br />
familiarise teachers with innovative,<br />
effective new teaching methods.<br />
West Bengal, India<br />
India’s brick-making industry employs<br />
millions of unskilled labourers, many<br />
of whom are children. These children<br />
have no access to playgrounds, health<br />
services or education. The <strong>Hempel</strong><br />
Foundation is therefore building two<br />
new education centres for the children.<br />
Set to open in April 2012, the centres<br />
will provide warm food, healthcare and<br />
comprehensive pre-education. The goal<br />
of the project is to help the children<br />
learn as many necessary basic skills<br />
as possible, enabling them to enter the<br />
local education system and hopefully<br />
get a chance at a much brighter future.<br />
Alto Molócué, Mozambique<br />
The <strong>Hempel</strong> Foundation is providing<br />
support to two schools of 700 children<br />
each in Alto Molócué, Mozambique.<br />
Before the project began, the<br />
schools in this impoverished region<br />
were in extremely poor condition<br />
and classrooms contained up to 80<br />
pupils. The lack of adequate teaching<br />
materials, high absentee rates and<br />
poorly trained teachers added to the<br />
appalling situation. Our initial efforts<br />
have focused on educating the teachers<br />
in basic competencies, establishing<br />
professional school management,<br />
reducing the number of children in each<br />
class, providing new teaching materials<br />
and books, building a school library and<br />
launching reading clubs.<br />
Shanghai, China<br />
Due to China’s economic growth,<br />
cities such as Shanghai have seen an<br />
enormous influx of migrant workers<br />
and their families. The local school<br />
systems have had difficulties handling<br />
the increase in enrolment, and so a<br />
number of private schools are being<br />
established to help educate the migrant<br />
children. Unfortunately, the schools<br />
lack sufficient resources as the parents<br />
are often unable to afford tuition.<br />
The <strong>Hempel</strong> Foundation is therefore<br />
supporting five of these migrant schools<br />
to help these children get a proper<br />
education. More than 10,000 migrant<br />
children are benefitting from this project.<br />
9
Chengdu, China<br />
On 12 May 2008, a massive earthquake<br />
hit China’s Sichuan province. The<br />
catastrophe claimed the lives of nearly<br />
87,000 people and left thousands of<br />
children orphaned. The SOS Children’s<br />
Village in Chengdu took in many of the<br />
earthquake orphans, and the <strong>Hempel</strong><br />
Foundation immediately provided<br />
financial assistance to the Village. Today,<br />
the <strong>Hempel</strong> Foundation continues to<br />
support one of the family houses that<br />
is home to eight children and their SOS<br />
mother. The house provides the children<br />
with a good home and the opportunity<br />
for a quality education.<br />
Lujan, Argentina<br />
Argentina’s economic collapse in 2001<br />
left many impoverished. And although<br />
recovery has been rapid, many families<br />
are unable to provide their children<br />
adequate opportunities for a better<br />
future. The <strong>Hempel</strong> Foundation is<br />
therefore supporting one family house in<br />
the SOS Children’s Village in Lujan, near<br />
Buenos Aires. The home gives eight<br />
orphaned or socially vulnerable children<br />
a caring environment, a comprehensive<br />
education and, most importantly, a<br />
fresh start in life.<br />
Battambang, Cambodia<br />
Cambodia’s modern history has been<br />
shaped by war and political unrest.<br />
Since peace finally came in the late<br />
1990s, the country has been struggling<br />
to rebuild its school system. The<br />
<strong>Hempel</strong> Foundation provided a donation<br />
to help construct a new school in<br />
Battambang and today the Foundation<br />
co-funds the school’s daily operations.<br />
The school opened its doors in 2009<br />
and is now filled with 500 children who<br />
are eager to learn to read and write.<br />
Johannesburg, South Africa<br />
In 1989, the first Vuleka School was<br />
established to help black children learn<br />
English so that they could go on to<br />
study in comprehensive English medium<br />
schools. Today, Vuleka Schools provide<br />
a high quality primary education that<br />
enables most students to be awarded<br />
scholarships for high school and,<br />
hopefully, university. A good education<br />
gives hope to underprivileged black<br />
children, as it is a vital step in finding<br />
a good job and building a better future<br />
for themselves and their families. The<br />
<strong>Hempel</strong> Foundation supports the Vuleka<br />
School in North Riding, Johannesburg<br />
and its 193 pupils.<br />
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<strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Community engagement: employee volunteering<br />
At <strong>Hempel</strong>, we believe<br />
corporate responsibility is<br />
about more than our policies.<br />
So to stress the importance<br />
of taking an active role in<br />
our world, we encourage our<br />
employees to volunteer their<br />
time to the causes that<br />
mean the most to them.<br />
Volunteering not only<br />
helps out people in need,<br />
it’s also a unique learning<br />
opportunity that fosters<br />
personal development and<br />
greater social awareness<br />
among those who generously<br />
give their time.<br />
Here are a few examples of how some of our employees have generously volunteered<br />
their time and energy to make a positive impact in <strong>2011</strong>:<br />
Mozambique<br />
Six employees – one from each<br />
of the regions in <strong>Hempel</strong> and one<br />
from Crown Paints – spent a week<br />
volunteering in Mozambique. The<br />
group experienced first-hand<br />
how a school project sponsored<br />
by the <strong>Hempel</strong> Foundation is<br />
helping disadvantaged children<br />
obtain a good primary education.<br />
During their visit, the volunteers<br />
taught English and Spanish,<br />
built a volleyball court and gave<br />
presentations of their home<br />
countries. They also introduced the<br />
children to games from their home<br />
cultures – a novel experience for<br />
these children who have never<br />
left their local community.<br />
China<br />
Many outdated computers that<br />
companies take out of service are<br />
still well-functioning. So <strong>Hempel</strong><br />
China’s IT department came up<br />
with a plan to make good use of<br />
old computers to help children<br />
in need. The IT professionals<br />
travelled from all over China<br />
to Chengdu to donate some of<br />
<strong>Hempel</strong>’s old computers to the<br />
region’s SOS Children’s Village,<br />
which the <strong>Hempel</strong> Foundation is<br />
already supporting. The team also<br />
volunteered their time to help set<br />
up the machines and teach the<br />
children how to use them.<br />
Poland<br />
When <strong>Hempel</strong> opened a new<br />
factory in <strong>2011</strong> in Poland, our<br />
employees also wanted to make<br />
a positive impact on the local<br />
community. Their project, called<br />
“<strong>Hempel</strong> – the World of Paints”,<br />
taught the children about paint<br />
and allowed them to experiment<br />
with its physical properties. They<br />
learned how substances behave<br />
when mixed together and how to<br />
achieve the best results with paint.<br />
While broadening the children’s<br />
horizons, the project also showed<br />
them that the knowledge they<br />
gain from school is applicable<br />
in everyday life. A great success,<br />
the employees have now run the<br />
project several times.<br />
Argentina<br />
Employees of <strong>Hempel</strong> Argentina<br />
volunteered their time at the local<br />
SOS Children’s Village in Lujan.<br />
Another project supported by the<br />
<strong>Hempel</strong> Foundation, the Children’s<br />
Village is home to orphaned and<br />
underprivileged children from the<br />
region. Our volunteers spent the<br />
day working side by side with the<br />
children as they painted the jungle<br />
gym on the playground. This was<br />
a project about community and<br />
family, and some of the <strong>Hempel</strong><br />
employees even brought along<br />
their own children and spouses to<br />
help out and join in the activities.<br />
11
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Procurement<br />
Each <strong>Hempel</strong> product is made from raw materials sourced from around<br />
the globe through multiple suppliers. As we work with key raw material suppliers<br />
to develop and produce high quality products, we also strive to foster solid<br />
relationships built on outstanding business practices and similar business ethics.<br />
Supplier policy<br />
As a baseline when building a<br />
sustainable business relationship,<br />
we expect our key raw material<br />
suppliers to adhere to the standards<br />
defined in our supplier policy.<br />
The policy outlines our expectations<br />
related to quality management and<br />
safe operations in terms of the<br />
environment as well as employees.<br />
Also included in the policy is our<br />
expectation that business is<br />
conducted in a manner that does<br />
not compromise <strong>Hempel</strong>’s<br />
Code of Conduct.<br />
Supplier agreement<br />
All key raw material suppliers sign our<br />
supplier agreement. The agreement<br />
commits the raw material supplier<br />
to upholding our supplier policy and<br />
meeting international standards for<br />
labelling and packaging as well as<br />
for the safe storage, handling, and<br />
transport of dangerous goods.<br />
The agreement also includes standards<br />
for health, safety and environment.<br />
We ensure that all raw materials used<br />
in our products meet legal requirements.<br />
For example, all raw materials used<br />
in Europe are subject to REACH<br />
compliance. This ensures compliance<br />
not only through the commitment of our<br />
suppliers, but also through a rigorous<br />
internal qualification and approval<br />
process for all raw materials used<br />
in our production.<br />
Supplier dialogue<br />
Our key raw material suppliers are<br />
our business partners, so we establish<br />
a mutually beneficial partnership that<br />
is built on continuously developing<br />
materials and incorporating corporate<br />
responsibilities. In order to build a<br />
common understanding of corporate<br />
responsibility and to learn from each<br />
other, we have introduced dialogues<br />
with selected suppliers on this<br />
subject and related issues. In 2012,<br />
we will further educate our buyers<br />
and category managers within<br />
corporate responsibility topics,<br />
enabling us to extend our dialogue<br />
with even more suppliers.<br />
We currently assess compliance<br />
to standards and policies through<br />
a questionnaire.<br />
<strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong><br />
13
Health & Safety<br />
<strong>Hempel</strong> has long been committed<br />
to ensuring the health and safety of<br />
our employees and customers.<br />
Our work practices and the products<br />
and services we develop all support<br />
our role as a responsible company<br />
with an integrated approach<br />
to health, safety and<br />
environmental management.<br />
Our Group Health, Safety and Environmental policy along with<br />
our training programmes establish a solid framework that<br />
enables us to improve working conditions and reduce the risk<br />
of accidents and incidents. We also promote the use of safer<br />
materials when developing new products and we are ahead<br />
of schedule in our efforts to implement a new international<br />
standard for safety labels on all products.<br />
Health and safety forms an integral part of all of our activities<br />
related to the production and handling of raw materials and<br />
products in our factories and warehouses.<br />
Training<br />
Training is an important part of our health and safety activities.<br />
With an aim to increase awareness and minimise risks, our<br />
<strong>2011</strong> training programme covered accident prevention, fire<br />
prevention and forklift operation. The accident prevention<br />
and fire prevention training programmes are offered by Group<br />
Compliance Management to managers and workers in our<br />
factories and warehouses. In <strong>2011</strong>, a total of 103 people were<br />
trained in accident prevention, and 106 were trained in fire<br />
prevention.<br />
The forklift operation training programme material was<br />
developed in response to a number of accidents, incidents and<br />
near-misses that happened while operating forklifts. In <strong>2011</strong>,<br />
15 of our factories and 19 of our warehouses conducted this<br />
training – in all, more than 500 employees took part.<br />
14 <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | ProcuREment | Health & Safety | Environment<br />
Direct causes of accidents<br />
60<br />
Number of accidents<br />
19.1<br />
Number of accidents<br />
per 1 million factory working hours<br />
17%<br />
10%<br />
13%<br />
38<br />
32<br />
27<br />
28<br />
33<br />
24<br />
20<br />
24<br />
23<br />
10.7<br />
12.0<br />
11.0<br />
9.9<br />
13.7<br />
10.2<br />
8.5<br />
10.6<br />
9.2<br />
17%<br />
9% 4%<br />
17%<br />
13%<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
<strong>2011</strong><br />
Accidents<br />
We keep detailed records of all accidents that occur in our<br />
factories so that we can investigate and analyse the causes.<br />
Over the years, we have achieved significant improvements<br />
thanks to awareness, training and preventive measures.<br />
An accident is defined as an on-the-job injury that results in at<br />
least one day’s absence. In <strong>2011</strong>, 23 accidents were reported<br />
by our factories across the Group. When we compare the<br />
number of accidents to our total working hours, the level is<br />
quite low for our industry. But every accident is one too many,<br />
so we do our best to learn from these accidents and prevent<br />
their reoccurrence.<br />
Three of our factories accounted for 70 per cent of all<br />
accidents in <strong>2011</strong>. These factories are now receiving special<br />
attention and guidance.<br />
Product safety<br />
We depend on more than 800 different chemicals to produce<br />
our assortment of products. Each of these chemicals has a<br />
unique profile, and some are safer to handle than others. As<br />
stated in our Group HSE policy, we actively work to integrate<br />
environmentally sustainable technologies and the use of safer<br />
materials in the development of new products and solutions.<br />
With this in mind, our R&D team takes a cross-functional<br />
approach to replace, reduce or eliminate the chemicals we<br />
consider least safe or most restrictive to use.<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
<strong>2011</strong><br />
Safety communication<br />
The way we communicate how to work safely with <strong>Hempel</strong><br />
products is gradually changing to a new system called GHS –<br />
Globally Harmonised System for Labelling and Classification of<br />
Chemicals. The United Nations-endorsed system is intended<br />
to support international efforts concerning the safer and more<br />
environmentally-responsible management of chemicals.<br />
This improved safety labelling system is being gradually<br />
adopted by countries all over the world. We have already<br />
implemented GHS in China – well before national regulations<br />
have required us to do so.<br />
Safety First campaign<br />
In a continuous effort to reduce risks and ensure workplace safety,<br />
<strong>Hempel</strong> Singapore launched a Safety First campaign focused on<br />
reporting and learning from near-misses. It kicked off in November<br />
<strong>2011</strong> with a training session for 30 production and warehouse<br />
operators and managers. The campaign includes our new definition<br />
of near-misses as well as information on how to report a near-miss<br />
and why it is important to report these issues.<br />
The Safety First campaign will be rolled out in all of <strong>Hempel</strong>’s<br />
factories in Asia Pacific during 2012, followed by our sales offices<br />
and warehouses and the rest of the <strong>Hempel</strong> Group.<br />
<strong>Hempel</strong> Singapore has the longest running record<br />
for days without accidents: an impressive 1159 days<br />
(as of 31 December <strong>2011</strong>) – more than three years.<br />
Machinery ● ● Other<br />
Handling/lifting ● ● Transport/traffic<br />
Moving object ● ● Hazardous substance/spill<br />
Slip/trip/fall (same level) ● ● Fall at height<br />
Indirect causes of accidents<br />
13%<br />
3%<br />
13%<br />
11%<br />
10% 47%<br />
3%<br />
Procedure not followed ● ● Other<br />
Inadequate training/instruction ● ● Carelessness<br />
Unsatisfactory conditions ● ● Inadequate personal<br />
Inadequate equipment ● protection<br />
Part of body affected<br />
17%<br />
7% 4%<br />
10%<br />
10%<br />
7%<br />
21%<br />
14%<br />
10%<br />
Eye ● ● Other<br />
Head/face ● ● Toe/foot/ankle<br />
Back/neck ● ● Leg/knee<br />
Arm/elbow ● ● Chest/abdomen<br />
Finger/hand/wrist ●<br />
15
Environment<br />
At <strong>Hempel</strong>, we are committed<br />
to taking responsibility for protecting<br />
the environment through our policies<br />
and our actions. For us, responsibility<br />
is about complying with all relevant<br />
laws and regulations in the countries<br />
in which we operate, continuously<br />
improving our environmental<br />
performance and supporting<br />
research into environmentally<br />
friendly technologies<br />
and solutions.<br />
Our Group Health, Safety and Environmental (HSE) policy<br />
requires us to integrate sustainable technologies into<br />
the development of new products. This also benefits our<br />
customers by helping them reduce their carbon footprint.<br />
Some of our recent innovations extend the lifetime of steel<br />
constructions, reduce the fuel consumption of ships and<br />
lower the energy and maintenance costs of buildings.<br />
We also have policies in place to ensure that our HSE<br />
management system monitors our environmental performance,<br />
and that we optimise our resources through recycling and<br />
reduced consumption. The energy we use in production and<br />
the generation of waste are two key areas in which where we<br />
are actively working to improve our environmental performance.<br />
The graphs in this section show the consolidated figures<br />
for all <strong>Hempel</strong> factories.<br />
ISO certification<br />
Our quality and HSE management systems are certified<br />
according to the ISO 9001 and ISO 14001 standards. Due to<br />
our uniform processes and quality across our entire company,<br />
we received ‘Global’ certification in <strong>2011</strong>. Now, instead<br />
of regional or standalone certificates, our new ISO 9001<br />
certificate covers more than 45 sites. In addition, our global<br />
ISO 14001 certificate covers more than 25 sites, and five<br />
sites are covered by a global OHSAS 18001 certificate.<br />
16 <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Total energy in kWh per tonne product manufactured<br />
Total waste kg per tonne paint produced<br />
hazardous waste other waste<br />
187<br />
183<br />
26.3<br />
161<br />
160<br />
145<br />
127<br />
131<br />
143<br />
139<br />
148<br />
22.2<br />
20.0<br />
17.2<br />
17.5<br />
17.0<br />
17.2<br />
16.4<br />
8.4<br />
8.1<br />
17.3<br />
17.0<br />
16.4<br />
16.6<br />
15.7<br />
13.7<br />
13.7<br />
15.7<br />
14.1<br />
16.7<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
<strong>2011</strong><br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
<strong>2011</strong><br />
Energy consumption<br />
Thanks to energy saving efforts and a rise in production volume, our energy<br />
consumption per tonne of manufactured product decreased from 2002 to 2007.<br />
From 2008, our energy consumption has remained stable, but due to a decrease<br />
in total production volume, relative energy consumption has increased.<br />
In <strong>2011</strong>, the opening of two modern, automated factories in Poznan, Poland and<br />
Guangzhou, China began to impact our energy consumption. Automation helps us<br />
reduce the risk of injuries that stem from manual handling, but it does lead to greater<br />
energy use. We are working to counteract these factors through energy saving<br />
initiatives such as optimising equipment usage in our production plants.<br />
Waste management<br />
Waste is an element of paint production that is impossible to avoid, but must<br />
be managed. Our intention is to reduce waste generation as much as possible and<br />
to increase the recycling of waste. Since 2002, <strong>Hempel</strong>’s waste generation is down<br />
by almost 50 per cent.<br />
We have made considerable reductions in “other waste,” which consists of materials<br />
that can for the most part be recycled (including packaging, metal, plastic and wood).<br />
“Hazardous waste” needs special disposal treatment, and each year more and more<br />
waste fractions are included in this category as a result of updated legislation.<br />
We have nonetheless kept pace with the industry in terms of our hazardous<br />
waste reduction efforts.<br />
In 2010, we changed our definition of waste to exclude waste that can be repurposed,<br />
which resulted in the large drop from 2009 to 2010. Waste management will continue<br />
to be a focus area for all of our factories in 2012.<br />
17
Global HSE Competition<br />
For the second year in a row, we held an HSE competition<br />
for our production units. Each factory was asked to submit<br />
a story that involved a safety or environmental improvement<br />
that reduced risk, improved efficiency or saved costs.<br />
<strong>Hempel</strong> Portugal was awarded first prize for its new<br />
cost-effective “clean-in-place” tank cleaning system that<br />
uses less solvent and requires less energy while improving<br />
the safety and working conditions of operators.<br />
Second place went to <strong>Hempel</strong> Bahrain for its waste water<br />
treatment plant that ensures a high degree of recycling when<br />
washing tanks used for waterborne paints. And third place<br />
went to <strong>Hempel</strong> Yantai for its implementation of several energy<br />
saving projects, including solar panels for heating water.<br />
HSE audits<br />
Audits are an important part of our Health, Safety &<br />
Environment (HSE) management system in our factories.<br />
They help ensure the safety of our employees and the<br />
uninterrupted supply of products to our customers, and<br />
they are a crucial part of our risk management efforts.<br />
In <strong>2011</strong>, we conducted eight HSE audits of factories as well<br />
as HSE inspections of <strong>Hempel</strong> offices and customer sites<br />
where our coating advisers work. Through these audits, we<br />
monitor compliance levels compared with our own standards,<br />
the local legal requirements and, where relevant, the ISO<br />
14001 standard. Risks at each site are assessed and<br />
all unmitigated issues are addressed.<br />
HSE audits also enable us to identify and document<br />
best practices, which are subsequently shared all over<br />
the <strong>Hempel</strong> Group and help us improve our performance.<br />
18 <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
Ethical Behaviour | Our People | Community Engagement | Procurement | Health & Safety | Environment<br />
Product development<br />
Our Research and Development team systematically works on new innovations and products to meet<br />
our customers’ increasing demand for energy-efficient products that incorporate sustainable technologies.<br />
This focus is also in line with <strong>Hempel</strong>’s own ambition to reduce our impact on the environment.<br />
These are three of our latest product innovations:<br />
EcoBoxcoat<br />
A series of products for the Container segment,<br />
EcoBoxcoat is set to replace the traditional solventborne<br />
system that has dominated the market for the<br />
past 30 years. The EcoBoxcoat system can be applied<br />
with the same equipment in the same factories as the<br />
solvent-borne system, so it does not require any major<br />
production changes or huge investments.<br />
The EcoBoxcoat system will not only reduce solvent<br />
emissions (VOCs) by nearly 90 per cent, it will also<br />
improve the working environment for the thousands of<br />
applicators who are applying the coatings. And it will<br />
significantly reduce the risk of fires.<br />
EcoBoxcoat is expected to perform on par with or even<br />
better than the existing traditional systems.<br />
Contex Thermoguard<br />
Launched in <strong>2011</strong>, Contex Thermoguard is an innovative<br />
insulation coating that saves money and energy while<br />
improving comfort.<br />
Contex Thermoguard’s insulating hollow vacuum<br />
microspheres form a tight, interlocking matrix that<br />
reduces radiated, conductive and convective heat<br />
through the painted surface. The high reflectivity of the<br />
coating also deflects nearly all of the sun’s rays, and<br />
this drastically reduces the cost and energy required for<br />
cooling a home or a building.<br />
Contex Thermoguard is an excellent solution to reduce<br />
passive solar heating when applied to exterior walls.<br />
By lowering the indoor temperature by as much as 5˚C,<br />
Context Thermoguard saves electricity consumption<br />
and helps regulate the indoor climate.<br />
HEMPASIL X3<br />
Conventional antifoulings for ship hulls contain biocides<br />
that leach into the marine environment. Unlike these<br />
traditional coatings, HEMPASIL X3 is based on a blend<br />
of silicone polymers that forms a hydrogel microlayer<br />
between the paint surface and the seawater. This results<br />
in dramatically enhanced fouling release properties. By<br />
reducing hull friction, HEMPASIL X3 also improves fuel<br />
efficiency and subsequently reduces CO 2<br />
emissions.<br />
Since its launch in 2008, HEMPASIL X3 has been the<br />
recipient of five product awards, three of which were<br />
related to the product’s environmental profile and two<br />
of which were related to the innovative idea behind<br />
the technology.<br />
Results from comprehensive towing tank studies<br />
have been confirmed in practice on some of the world’s<br />
largest crude oil carriers, which saw an eight per cent<br />
reduction in fuel consumption. Based on these<br />
results, if the entire world fleet was given a coat of<br />
HEMPASIL X3, its carbon footprint could be reduced<br />
by 80 million tonnes.<br />
19
Ethical Behaviour | Our People | Community Engagement | ProcuREment | Health & Safety | Environment<br />
Research in environmentally sustainable solutions<br />
<strong>Hempel</strong> and the <strong>Hempel</strong> Foundation support research in environmentally friendly technologies,<br />
particularly in the area of surface protection. A long-term partnership with the Department of Chemical<br />
and Biochemical Engineering at the Technical University of Denmark is driving fundamental research<br />
and raising awareness of sustainable technologies.<br />
The partnership supports the following programmes:<br />
<strong>Hempel</strong> Student Innovation Laboratory<br />
The Laboratory supports bachelor’s and master’s<br />
degree students who are working on innovative,<br />
environmentally sustainable solutions in chemical<br />
and biochemical engineering.<br />
International Elite Master’s Programme<br />
This offers grants for living expenses and tuition to<br />
international students working on a master’s in chemical<br />
and biochemical engineering. <strong>Hempel</strong> employees act<br />
as mentors to guide the students as they learn to<br />
work globally with sustainable technologies.<br />
PhD programme<br />
Selected master’s students focused on expanding<br />
knowledge within the field of surface protection are<br />
offered an opportunity to continue in the university’s<br />
PhD programme. Projects include extending the lifetime<br />
of constructions, improving technologies within renewable<br />
energy, lowering the fuel consumption of ocean-going<br />
vessels and improving the environmental performance<br />
of coatings. All research is made public through<br />
scientific publications.<br />
20 <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Report</strong> <strong>2011</strong>
HEMPEL A/S<br />
Lundtoftevej 150<br />
DK - 2800 Kgs. Lyngby<br />
Denmark<br />
Tel: +45 4593 3800<br />
Fax: +45 4588 5518<br />
E-mail: hempel@hempel.com<br />
www.hempel.com