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ADDINGVALUESustainability Report <strong>Brenntag</strong> AG, 2013
03“Adding value” is the title of our sustainability report and it tells a lot about us, <strong>Brenntag</strong>,the world’s leading chemical distribution company. It is therefore much more than just thename of the report: It also defines how we want to continue our success story. We want togive our services and products added value over the long term – for our business partners,every day, around the world.As the link between chemical manufacturers and the chemical processing industry, wealso make sure our business approach is focussed on adding value. We offer our businesspartners attractive and long-term added value through a range of specific services, processorientedsolutions and expert advice.Sustainability as a concept is anchored deeply in our business approach. We want to positionourselves well economically, environmentally and socially in order to fulfil our responsibilityto the environment and society. We also want to enable our business partners to adopt asustainable business approach – and that’s the added value we can offer.In our first sustainability report, we have focused on the documentation of existing activitiesaround the world. This will give an initial overview of the economic, environmental and socialchallenges associated with our business activities.We have divided our sustainability activities into four areas: strategy, processes, people andsolutions. Get to know us, find out more about our work and commitment, and how we at<strong>Brenntag</strong> bring the concept of “Adding value” alive.In our report, we have aimed for the highest levels of clarity, validity and transparency. Ourstatements apply to all business locations and activities undertaken by the <strong>Brenntag</strong> Group.The report contains data of the fiscal year 2012 (from 1 January 2012 to 31 December 2012)as well as information about our sustainable projects with the editorial deadline of 30 June2013. The next <strong>Brenntag</strong> sustainability report will be published in 2015. Our reporting isbased upon the G3 guidelines of the Global Reporting Initiative (GRI). GRI certified that<strong>Brenntag</strong> fulfils the requirements for the C-Level.
CONTENTSCEO Letter 06Strategy 09Company profile 10Efficient – our business model 11Sustainable – our strategy 11The HSE strategy – safety first 12Corporate Compliance – a term with added value 12PROCESSES 15Quality – a system of its own 16REACH beyond – exceeding requirements 17Project Respect – award-winning environmental protection 18Information – safety via transparency 19
21 PEOPLE22 The CASA programme – leading by example23 Safety - our Cornerstone24 Dedication – <strong>Brenntag</strong> employees set an example25 Employee loyalty – learning from each other27 Solutions28 Water treatment – naturally sustainable28 Green – the colour of the future29 AdBlue®/DEF-Concept – effectively reducing emissions30 Product stewardship – inviting cooperation30 Chemical leasing – innovative business model with a future32 Annex
06strict corporate governance guidelines. What is new is thatwe have now compiled all of our commitments within ourdecentralised business organisation, which comprises morethan 450 locations worldwide, into one sustainability reportfor the very first time.As a company with ambitious goals, we will continue to developthe topic of sustainability within our company andsee this report as a strong foundation upon which we canbuild our future strategy. We used the internationally recognisedGlobal Reporting Initiative (GRI) standard as a basisfor writing this report.Dear readers,<strong>Brenntag</strong> stands for reliability, professional solutions, expertiseand customer focus – precisely the attributes thatour international customers and suppliers cherish, and thathave made us the global market leader in chemical distribution.We can look back on a successful history and are also lookingforward to a promising future. We have made it ouraim to continue developing the company further, adoptnew approaches and optimise our business processes. Forus, this also means that we have to address the followingquestion: How can we, as a globally active company, defineour role in the supply chain, in society and in our dealingswith our employees, customers and suppliers? The answerto this question can be found by taking a closer look at theconcept of sustainability.In addition, we have founded an internal global projectgroup that plays an organisational and analytical role.The group is tasked with expanding on the concept ofsustainability and ensuring that our strategy continuesto develop in a positive direction.As previously mentioned, our sustainability report adheresto our overarching aim of “Adding value”. For our businessactivities, this is both a requirement and a driving force. Inour company, we give sustainability structure by dividingit into four key terms: strategy, processes, people and solutions.The concept of safety is the focus for all four pointsbecause, for us, that represents the basis for a sustainableapproach.Our report will present a selection of projects that representour definition of sustainability in a particular way. The nextfew pages aim to define what we understand by sustainabilityand our efforts to fulfil this responsibility in our everydaywork as an international chemical distributor.Kind regards,The strategic significance of sustainability has continued toincrease over time. The challenge for <strong>Brenntag</strong> is to implementit and develop it further within our complex, internationalcorporate structure.For us, sustainability means thinking of future generationsby taking action today. A responsible approach that leadsto positive results in the long term is hardly a new idea for<strong>Brenntag</strong>. For many years, we have been committed to anambitious, global HSE programme with “safety” as its biggestaim. For years, we have been members of the voluntarychemicals initiatives Responsible Care and ResponsibleDistribution, also complying with high social standards andSteven HollandChief Executive Officer, <strong>Brenntag</strong> GroupMülheim an der Ruhr, August 2013
KapitelinformationenYou can only growif you are preparedto accept challenges.
STRATEGYIntroductionCompany profileEfficient – our business modelSustainable – our strategyThe HSE strategy – safety firstCorporate Compliance – a term with added valueWe are successful because we think ahead, continue to develop and have thecourage to set ambitious goals. As the global market leader in chemicaldistribution, we have high standards for ourselves. Sustainable and efficientwork processes are some of our central business principles.Our strategy also enables our business partners to act in the same sustainableway that we do. Our other major aim involves being the safest chemical distributor.The topic of safety is a major element of our corporate strategy, and adheringto our high safety standards can only be done by teamwork. Cooperation,partnership and team spirit are essential when new projects are put in action.Each individual <strong>Brenntag</strong> employee contributes to the realisation of these projects.With our motivated and committed team, we are ready to take on the challengeof driving ahead with new sustainability and safety projects. After all, there isno doubt that economic, environmental and social responsibility are inseparablylinked with one another.
STRATEGY 11Efficient – our business modelOur task is to create strong links. As a chemical distributor,we represent an important link between chemical producersand chemical users. By bundling supply and demand,<strong>Brenntag</strong> increases efficiencies in the value chain andthereby creates added value for the economy.Our customers benefit from our one-stop shop solutionsin two ways: we offer them specialty and industrial chemicalsas well as the related services they need from a singlesource. As a result, they are able to focus completely ontheir core business.A major selling point for <strong>Brenntag</strong> as a global group isthe resilience of its business model. It is based on broadgeographic coverage and high diversity across suppliers,customers, products and industries. This puts <strong>Brenntag</strong>in a position to benefit from several industry trends andintegrates an undoubtable measure of resilience.We are a globally active company with ambitious goalsand we have the will to expand our position on the globalmarket further. We are perfectly positioned to make themost of new opportunities with customers and supplierswho continue to optimise their channel to market strategiesand seek further reductions in complexity.The success of our business model demonstrates that weare on the right path, and we will continue to follow thispath to achieve a promising future.Sustainable – our strategyOur company’s approach is shaped by the concept of sustainability.Because today’s business activities also have to complywith the requirements of future generations, it is important thatwe give safety aspects our full attention, that we as a companytake responsibility for our society, that we minimise thenegative impact of our activities on the environment, and thatwe ensure the financial sustainability of our company.We are successful because we think ahead, continue to developand have the courage to set ambitious targets. We have highexpectations of ourselves. One of these is “Adding value”through each and every one of our services.As a result of our decentralised business model, the individualcountries and locations around the world have initiated theirown sustainability projects, reflecting the local requirements aswell as <strong>Brenntag</strong>‘s business and HSE strategy. We want to groupthese regional projects together and establish a holistic concept.We also founded an international team to deal with thetopic of sustainability and the existing measures. The teamcomprises members from all the major company divisions –Sales, Operations and Administration – and is supported bythe Management of <strong>Brenntag</strong>. This step aims to effectivelyimprove our existing, sustainable corporate culture.The team evaluated and selected the key topics that built thebasis for this report. They followed a structured approach byusing a materiality matrix.We foster an ongoing and open dialogue with our stakeholders.These include not only our employees, customers, suppliersand shareholders but also the communities where our sites arelocated.MIXINGBLENDINGFORMU-LatiNgEXTENSIVETECHNICALSUPPORTVENDOR-MANAGEDSUPPORTBundlingTransportChemicalUSER
STRATEGY 12The HSE strategy – safety firstOur Health, Safety and Environment (HSE) strategy is a keycomponent of our sustainability strategy and our corporatestrategy for years. Our aim is to be the safest chemical distributor,and when it comes to safety, we do not make any compromises.This is the basis for our global HSE strategy. Feelingresponsible and taking responsibility are vital when it comesto health, safety and the environment. The extent to which<strong>Brenntag</strong>’s employees support our aims is proven by theirdedication and commitment to continue maintaining existingprocesses.Our HSE strategy is divided into the following topics:Safety policyThe health of our employees and the safety of our sites arean absolute priority for <strong>Brenntag</strong>. We work on continuallyimproving work processes and plant safety.Product stewardship policy<strong>Brenntag</strong> takes appropriate measures to ensure the properhandling of its products while they are under the Group’sstewardship. This includes procurement, packaging, classificationand labelling, handling and storage, possible disposaland providing product dossiers and safety instructions.Environmental policyWe continually work towards minimising environmentalimpacts on soil, water and air. There are no cases of finesfor non-compliance with environmental laws known abovea threshold of EUR 2,000 in 2012.HSE compliance policy<strong>Brenntag</strong> is committed to complying with all health, safetyand environmental requirements, including import andexport regulations, marketing and use restrictions forchem-icals in all its operations and sales organisations.We also take part in the International Council of ChemicalTrade Associations’ (ICCTA) Responsible Care/ResponsibleDistribution (RC/RD) programme. We will go into moredetail on this topic at the start of the chapter entitled“Processes”.We are members of all the regional and local associationsfor chemical distributors – Fecc (Europe), APLA (Latin<strong>America</strong>), NACD (<strong>North</strong> <strong>America</strong>) – and play a leadingrole in them.In order to be able to measure our performance in the fieldsof quality, safety, health and the environment effectively, wehave developed various programmes whose evaluation criteriaare based on regional requirements. The programmesare focussed on promoting a culture of excellence in safetythroughout the entire company.The following HSE programmes have been launched inindividual regions:Europe: “Cornerstone Programme”<strong>North</strong> <strong>America</strong>: “<strong>Brenntag</strong> Cornerstone Process”Latin <strong>America</strong>: “CASA”Asia-Pacific: “5-Star Facility Award”Training sessions for our employees are of major importanceto occupational safety. This starts with safety introductionsfor new colleagues and continues with presentations ondealing with specific work processes and equipment.Training sessions that are required by law are documentedfor the individual warehouse locations, as are all other trainingsessions. Digital means are also increasingly integratedinto training sessions via e-learning and video clips.As a result of these ongoing improvements to our safetymeasures, we continiously reduced the number of reportableindustrial injuries in 2012. From 65 cases in 2011, thenumber decreased to 55 cases in 2012. This also led to adecrease in the lost time injury rate (LTIR) from 2.5 in 2011to 2.0 in 2012. The LTIR describes the number ofoccupational incidents resulting in at least three days offwork per million working hours (3 d/1 mill).At <strong>Brenntag</strong>, all occupational incidents are analysed downto the smallest detail by our international team of experts.The results of these analyses are translated into concretemeasures and initiatives to ceaselessly improve occupationalsafety (for example, Cornerstone in Europe and <strong>North</strong> <strong>America</strong>).Year Number of LTIRreportable injuries2011 65 2.52012 55 2.0Corporate Compliance –a term with added valueWe are committed to a high level of integrity in our businesstransactions, in dealing with our customers, suppliersand competitors, as well as towards our employees and thepublic.As a global company, <strong>Brenntag</strong> is subject to a wide varietyof laws, policies and regulations. As part of <strong>Brenntag</strong>, eachof us has a personal responsibility to conduct ourselves instrict compliance with the letter and spirit of these laws,policies and regulations.
STRATEGY 13The Code of Business Conduct and Ethics summarises.<strong>Brenntag</strong>’s basic corporate values, ethics, laws, rules andregulations and the related policies and procedures of thecompany which are particularly important to the companybusiness and the preservation of its admirable name and reputation.The Code of Business Conduct and Ethics contains fundamentalrequirements with regard to health, safety and theenvironment, how to deal with business partners or publicinstitutions, bribery and corruption, competition and antitrustlaws, avoidance of conflicts of interest as well as dataprivacy and information security.Key aspects of our compliance activities are the adherenceto competition regulations and the protection ofthe environment and personal health. We conduct regularemployee training sessions on compliance with the aim tokeep the employees’ knowledge up-to-date and avoid anyillegal actions as well as to protect the environment, theemployees and the company.Compliance Reporting and Organisation<strong>Brenntag</strong> has installed established procedures throughoutthe Group for receiving and handling complaints and anonymousreports of questionable matters. In case employees,business partners or the public in general have concernsabout any activity by our company and its employees, wehave created a portal on our website where these concernscan be reported. The information received is treated inthe strictest of confidence so the source of the informationdoes not suffer any negative consequences frommaking complaints or reports. Any received reports areexamined, evaluated, investigated and appropriate actiontaken if an infringement has taken place. These processesare steered by the Governance, Risk & Compliance (GRC)Manager at <strong>Brenntag</strong> AG.Material complaints and reports are addressed to therelevant member of the Compliance Committee, an internaladvisory body whose members include corporatedepartmental heads representing the various corporatedisciplines, where also general questions on complianceare discussed.Current compliance cases as well as the further developmentof the Group-wide compliance organisation andstructures are regularly reported to the Audit Committeeof the Supervisory Board. On operational level RegionalCompliance Managers ensure close monitoring of ourbusiness activities.Warehouse in Querétaro, Mexico
KapitelinformationenResponsible businessprocesses require theright systems.
PROCESSESIntroductionQuality – a system of its ownREACH beyond – exceeding requirementsProject Respect – award-winning environmental protectionInformation – safety via transparencyThe health of our employees, occupational safety and a responsible approachto the environment and its resources are our top priorities. We don’t just wantto feel responsible; we want to act in a responsible way. <strong>Brenntag</strong> employeesat all levels of the company have fully taken in the requirements with regard tooccupational health and safety, environmental protection, as well as the safehandling of chemicals. We aim to boost the environmental awareness of ouremployees and support our customers and suppliers with our own initiativesand measures. We know that sustainable corporate governance has played amajor role in our success. Our projects serve as flagships for the company andare a major motivation for our future plans.
PROCESSES 16Sustainable processes also require a responsible approachto the environment. In line with our “Adding value” strategy,we put the focus on measures and programmes thatboost the environmental awareness of our employees andbusiness partners. Another major aspect in this regard is occupationaland chemical safety, which we have maintainedby implementing various quality management systems.Our employees are highly dedicated to their work, asshown by our REACH representative, Marianne Lyngsaaefrom <strong>Brenntag</strong> Nordic, who had won an award for hercommitment and dedication. The next chapter will outlinehow third parties benefit from the established programmesand our employees’ dedication.Quality – a system of its own<strong>Brenntag</strong> guarantees the quality of products and servicesthrough ISO standards and certifications, as well as throughaudits. The implementation of quality management systemsgenerates trust and is a symbol of safety – both for our customersand suppliers as well as for our employees. Part ofour global HSE strategy is the “quality policy”. The internationallyapplicable ISO 9001 standard is the basis for qualitymanagement within the <strong>Brenntag</strong> Group. This qualitymanagement standard aids the optimisation of processesand workflows.To receive the ISO 9001 standard, a company‘s managementsystem has to fulfil certain requirements in the implementationof its quality management system. In addition, it isexpected that the management system is subject to a continuousimprovement process. By 31 December 2012, 86%of our operating sites had introduced quality managementsystems certified according to this standard. Furthermore,96 sites are certified according to the international standardISO 14001 for environmental management systems. This standardprovides specific guidelines on what a company’s environmentmanagement strategy should involve and achieve.Another important step we have taken on the path to becomingthe safest chemical distributor is our certification withthe OHSAS 18001 (Occupational Health and Safety AssessmentSeries) standard. This standard is considered the mostimportant in the field of occupational health and safety andis closely related to ISO 9001 and ISO 14001. OHSAS 18001defines the introduction of a standardised occupationalsafety management system with the aim of establishingfixed standards and procedures for ensuring occupationalhealth and safety and avoiding accidents.Safety and environmental protectionAs an international chemical distributor, the safe and environmentallyfriendly handling of our products is of greatimportance to us. For this reason, <strong>Brenntag</strong> takes part inthe International Council of Chemical Trade Associations’(ICCTA) Responsible Care/Responsible Distribution (RC/RD)programme.Responsible Care (RC) is a global initiative set up by thechemical industry to address the topics of safety and theenvironment. <strong>Brenntag</strong> Group companies signed up yearsago to their respective national Responsible Care/ResponsibleDistribution (RC/RD) association programmes.The programmes set guidelines and structures for environmentallyfriendly and future-oriented business practices.Responsible Distribution (RD) is a third party-verifiedenvironmental, health, safety and security programmefor companies based in the US.With the support of its members, the International Councilof Chemical Trade Associations (ICCTA) has developed aconsistent, global RC/RD programme that covers the principlesof both of these approaches. This latest approach has createdthe basis for facilitating global cooperation and exchanginginformation and experiences. The programme also aims toboost trust and confidence in the chemical industry.Overview of the ISO standards of <strong>Brenntag</strong> (2009-2012)Year ISO 9001 (% of relevant ISO 14001 OHSAS 18001locations and companies) Number of Locations Number of Locations2009 71 65 282010 75 69 352011 81 97 582012 86 96 60
PROCESSES 17<strong>Brenntag</strong> has pledged to adhere to the eight guidelines ofthe RC/RD programme:• Legal requirements• Management of risk• Policies and documentation• Provision of information• Training• Emergency response• Ongoing improvements• Community interactionThese criteria are audited in regular intervals by independentorganisations to ensure that chemicals are properlyhandled.Consistent procedures for the safe handling of chemicalsare developed by regional HSE coordinators and HSE teamsand are compiled and documented in locally valid HSEmanuals down to the individual warehouse.Adherence to these procedures is ensured via internal andexternal audits, which serve to evaluate processes in orderto ensure adherence to requirements and guidelines.Two awards, one winnerIn 2011, G.S Robins & Company, which belongs to the <strong>Brenntag</strong>Group, was awarded the <strong>North</strong> <strong>America</strong>n Responsible DistributionExcellence Award by the National Association ofChemical Distributors (NACD) for its exceptional services.This honour is awarded annually to companies for effortsin the fields of health and occupational safety as well asemployee, public and environmental safety. The year before,the prestigious award went to <strong>Brenntag</strong> <strong>North</strong> <strong>America</strong>, Inc.The NACD presented the award to both companies for theircommitment to improving processes, their dedication to thecommunity and for their efforts to improve employee skills.The fact that <strong>Brenntag</strong> won this award twice consecutively isa fantastic recognition of the company’s achievements. Thepublic appreciation for this approach is a major motivatorfor the future.REACH beyond –exceeding requirementsThe European chemicals regulation REACH – Registration,Evaluation, Authorisation and Restriction of Chemicals –is the legal framework aiming to ensure a high level of protectionfor human health and the environment when manufacturingor using chemicals. The REACH Regulation cameinto force on 1 June 2007. One of its key elements is theobligation to register substances manufactured in orimported into the European Economic Area (EEA). Theprocess of registering chemical substances comprises threedeadlines according to tonnage bands of production/imports and will span a period of eleven years with 2018being the latest deadline. Furthermore, REACH regulatesthe safe use of chemical substances and preparations formanufacturers of chemicals as well as for the downstreamuser level. The safe use of chemicals is documented inexposure scenarios, which are communicated in an annexeto the safety data sheets (extended SDS).<strong>Brenntag</strong> is affected by REACH in several respects as its businessoperations cover not only the distribution of chemicalsbut also activities such as the import, formulation and, incertain cases, production of chemicals.With its international REACH team, consisting of a Europeannetwork of experienced HSE and REACH experts, and thestrong support of the management, <strong>Brenntag</strong> is well equippedto meet the numerous requirements and obligations of theREACH Regulation in full.We see REACH from a holistic perspective and thereforeconsider it necessary to ensure being compliant with theREACH Regulation along the entire supply chain under ourcontrol – from purchasing and operational processes to sales.<strong>Brenntag</strong> has not only pledged to fulfil legal requirementsbut also to offer our customers an extensive service withregard to topics concerning REACH via the “REACH beyond“approach. Our European subsidiaries address current developmentsand topics relating to the REACH regulation here.In addition, our product and sales managers have beentrained well in REACH issues and can draw on a network ofqualified safety and environment experts when it comes tomore complex questions. The experts are supported by centraliseddatabases, which are always kept up to date. Thisalso puts us in a position to be able to share consolidatedextended safety data sheets with our customers that aretailored to the requirements of local suppliers and are writtenin the local language.Our aim is to guarantee effective and reliable communicationalong the entire supply chain so that any customer queriesregarding applications that are not covered in a particularexposure scenario, or are not covered in sufficient detail,can be answered promptly.REACH represents an immense challenge, particularly tosmall and medium sized companies in Europe, and will continueto do so in the near future because companies suchas the so-called “downstream chemical users“ have the obligationto comply with the rules set out in the regulation independently.With its “REACH beyond” approach describedabove, <strong>Brenntag</strong> offers an excellent service for the productsaffect-ed that provides assistance to our customers in adheringto these rules.
PROCESSES 18Outstanding: Marianne Lyngsae receiving the Fecc Award from the Presidentof the Fecc Edgar E. Nordmann.Award-winning dedicationMarianne Lyngsaae was delighted to accept special recognitionof her ten years’ work and commitment on theREACH project. The <strong>Brenntag</strong> Nordic employee and memberof the REACH Core Team at <strong>Brenntag</strong> Europe received theEuropean Association of Chemical Distributors (Fecc) Award2012. The chemical engineer, who had been involved in thedevelopment of the REACH Regulation right from the start,received the award for her outstanding work for the Fecc inthe development of solutions relating to the interpretationand communication of exposure scenarios. Since exposurescenarios from different suppliers often vary in structureand content, even for the same substance, <strong>Brenntag</strong> decidedto create consolidated exposure scenarios for its own extendedsafety data sheets. Marianne Lyngsaae developed theconcept in partnership with Joachim Aust, <strong>Brenntag</strong> Europe,who heads the central European Master Data Managementteam at the European headquarters in Mülheim an der Ruhr,Germany. To manage the data and consolidation of ExposureScenarios a team was founded 2011. It consists of ten <strong>Brenntag</strong>employees from all nine European regions. They worktogether via web conferences, a portal and regular meetingsat <strong>Brenntag</strong> headquarters in Mülheim, Germany. In this way,extensive information regarding the safe handling of chemicalscan be provided in an aggregated form.“Project Respect” – award-winningenvironmental protectionIn the chemical distribution industry, enormous quantitiesof chemicals are transported every day. In order to ensureenergy efficiency at more than 450 locations across theworld, we are continuously working on our route optimisationprocess. In this way, we can ensure that when wevisit our business partners, we use as little fuel as possible.The excellent coverage offered by our network means thatwe are able to deliver items quickly and efficiently. Routeoptimisation is a good example of a sustainable work process.Another good example for our environmental engagementis shown in “Project Respect” at <strong>Brenntag</strong> UK & Ireland,which specifically deals with improving our own logisticsand thus minimises our annual CO 2emissions. However, thisis just one of the many measures that have been launchedthrough the initiative. “Project Respect“ was awarded theCarbon Trust Standard for its approach towards reducingCO 2emissions.It is primarily concerned with ensuring that CO 2emissionsare quantifiable in order to be able to reduce them.<strong>Brenntag</strong> UK & Ireland measures the emissions in accordancewith the Greenhouse Gas Protocol, a widely used standard.As part of “The Prince’s Mayday Network”, precise measurementshave been published in a report since 2010.Furthermore, annual comparisons show a percentagereduction in emis-sions over the years.Since the units are measured in CO 2/tonnes, improvementscan be calculated irrespective of the growth in volume. Inthis way, we can show the progress we have made for thebenefit of the environment. <strong>Brenntag</strong> UK & Ireland will continueto conduct emissions measurements to prove annualreductions in CO 2emissions – thus also proving our commitmentto protecting the environment. The absolute CO 2emission between 2010 and 2012 was 4 % CAGR and therelative CO 2emission reduction was 2.4 % CAGR. In addition,the aims and initiatives will be disseminated every quartervia internal campaigns and through the “Mayday Networkand Carbon Trust” website. These measures aim to maintainan external auditing structure that serves to act as motivationto encourage people to strive for progress.Many measures, one aimIn addition to specifically reducing emissions in the field oflogistics, the “Project Respect” also sparked the creationof a number of other environmentally friendly initiatives at<strong>Brenntag</strong> UK & Ireland. Some of these initiatives includedthe introduction of time-controlled lighting and furtherinvestment in reusable packaging. Training sessions wereheld for Heavy Duty Vehicles (HDV) drivers in order to trainthem to drive in a fuel efficient manner.Another project involves building a new warehouse inSwansea, UK, which is constructed in accordance with thehigh environmental standards of the BREnntag EnvironmentalAssessment Method (BREEAM). BREEAM is the leadingcertification method for buildings and is the indicator forthe environmental impact of a building. There have alsobeen suggestions for many other initiatives from <strong>Brenntag</strong>UK & Ireland, including improvements to heating systemsand insulation for improved energy efficiency, increasedlevels of recycling as well as improved and more efficient useof water. For us, “Project Respect” shows that also smallerprojects can make a difference. All <strong>Brenntag</strong> employeesshould feel responsible and continue to do their best toturn a good idea into a successful project.
PROCESSES 19Overview of the CO 2emissions of <strong>Brenntag</strong> UK & Ireland(2010-2012)Total Tonnes CO 2emissions2012 22,930.652011 23,496.512010 24,867.07CO 2emissions per 100 tonnes product sold2012 88.172011 88.632010 92.50Information –safety via transparencyWhen providing product information, ensuring the bestpossible clarity, transparency and thoroughness is onlypossible through careful work. The creation of productdocuments and safety instructions are just two of the measuresby which we ensure the proper handling of products.Our safety data sheets (SDS) contain information on the safehandling of substances and mixtures, including informationfrom relevant chemical safety reports required within theframework of REACH.In addition, the safety data sheets and material safety datasheets also comply with relevant international standardsand regulations for the local country, region or customer industry:for example, the European REACH chemicals regulationand Classification, Labelling and Packaging (CLP) regulation,as well as the two international voluntary initiatives,Responsible Care and Responsible Distribution. The standardised,clear structure of safety data sheets enables people toobtain extensive information about the product in question.Thanks to their knowledge of the substances and recommendationson handling them, our customers are in aposition to be able to meet the requirements for protectinghuman health, ensure safety in the workplace and protectingthe environment.<strong>Brenntag</strong> fulfils all legal requirements when it comes to developingand providing product specifications that supplythe most precise information about the quality and compositionof the product. The detailed provision of product informationis particularly important to us with relation to thepharmaceuticals and food industry. All available product informationis stored and managed via internal database systems.Part of our Thai truck fleet
KapitelinformationenSuccess depends onpeople who aim high.
PEOPLEIntroductionThe CASA programme – leading by exampleSafety - our CornerstoneDedication – <strong>Brenntag</strong> employees set an exampleEmployee loyalty – learning from each otherWithout the commitment, expertise and passion of our employees, we wouldnot be the leading chemical distributor that we are today. The workingenvironment at <strong>Brenntag</strong> is shaped by open communication, responsibilityand innovation. We are convinced of the fact that only motivated employeesare fully able to demonstrate their expertise and skills for overcoming thechallenges of the future.<strong>Brenntag</strong> aims to support our employees with their career ambitions because weare aware of the significance of well-trained, well-informed staff who are expertsin their field. These attributes play a major role in the fact that our employeesare particularly conscious of the topic of occupational safety.Well-qualified and motivated employees are our capital. With attractive addedvalue, we want to make it easy for them to decide to stay with us for the longterm to continue the <strong>Brenntag</strong> success story.
PEOPLE 22We are well aware of the fact that the expertise and dedicationof our employees play a major role in our success.Good qualifications are also the basis for quality and development– this applies for the company as a whole, as wellas for its employees. In short: highly qualified employeesequal expert knowledge and satisfied customers. Withregard to a sustainable and value-oriented corporatestrategy, it is a given that we should continue to improveworking conditions for our employees and to remuneratethem in a way that reflects their excellent performance.Through a range of national programmes and initiativessuch as medical check-ups and “Health, Wellness, Discount”initiatives, we actively support the health of our employees.The topic of safety is also a top priority at <strong>Brenntag</strong> because aculture of excellence in safety is one of our core values asa company. Our employees around the globe have internalisedour Safety First principles. Regular training sessions helpto focus on this important topic.After all, information and vigilance are prerequisites for ensuringoccupational safety. Good education and training ismore important than ever. <strong>Brenntag</strong> promotes the careerambitions of its employees around the world via tailoredtraining and staff development measures. We are awareof the significance of long-term employee loyalty. With ourmeasures and career development programmes, we giveour employees an attractive incentive and make it easierfor them to decide to stay with <strong>Brenntag</strong> for the long term.We see safety and education as investments with addedvalue. This chapter will demonstrate the significance ofeducation, safety and employee commitment at <strong>Brenntag</strong>by way of a few select examples.The CASA programme –leading by exampleThe safety equipment is mandatory for all <strong>Brenntag</strong> employees who work inoperations.An ambitious <strong>Brenntag</strong> sustainability concept has beenrolled out in our Latin <strong>America</strong>n locations. Safety, qualityand environmental awareness are represented therethrough the CASA programme. CASA stands for quality (CAlidad),safety & health (Seguridad & salud), and enviroment(medio Ambiente). Energy-saving and water-saving measuresserve to reduce environmental pollution, as do ecofriendlybuildings and green areas. Optimised route planning,more efficient vehicles and teleconferencing help tofurther reduce emissions.Another feature of the sustainability concept is social responsibility.The CASA programme is represented by partnershipswith local institutions, schools and sustainabilityprogrammes in the city in question. All employees have theopportunity to take part in a company health programme.Employee trainings are a major characteristic of the CASAprogramme.Ecuador – gaining qualifications with commitment<strong>Brenntag</strong> Ecuador’s education programme was founded in2010 with the aim of supporting employees who had notyet gained school-graduation qualifications but who wantedto do so. For many people, earning qualifications is alife-changing opportunity from a personal, economic andsocietal standpoint. It sets a positive example for futureenerations who may be on the verge of making the samechoice to abandon their studies. Finishing school with adiploma enables people who graduate from the trainingprogramme to fulfil a very special dream, which has a positiveeffect on their confidence, general happiness and faithin their own abilities. Their personal success also has a positiveeffect for the company. Well-qualified employees aremore motivated and ready to take on new challenges. Supportfrom <strong>Brenntag</strong> Ecuador is offered in the way of financial helpfor enrollment and school books. The students are enrolledin two different types of studies: social philosophy andmathematical physics programmes. Their studies arecompleted in parallel to working at <strong>Brenntag</strong>.
120115_BRE_Arbeitssicherheit_E_RZ.indd 4 11.09.12 12:34PEOPLE 23This dual burden requires the participants to show a highdegree of commitment, motivation and will to succeed. In2012, 17 employees completed their secondary educationand earned school-leaving qualifications.Online university –path to more qualificationIn May 2011, <strong>Brenntag</strong> Latin <strong>America</strong> (BLA) rolled out an innovativenew system entitled “the BLA University” throughoutits region. This system is a one-stop shop for onlinetraining, further education and measureable employeedevelopment.The virtual university is a technological platform which offersvirtual courses, a skills assessment tool and a mediumfor interest groups to share information, consult specialistsand document best practices. In addition, the system allowsregions, countries and locations down to the individuallev-el to control and monitor the development programmesfor the purposes of accountability and tracking.The BLA University is part of the human resource strategy.This strategy consists of the four Ps: passion, people, performanceand patterns. It combines talent development andperformance, promoting commitment and shared values.It drives the improvement of abilities in the employees andseeks to improve synergies among the company leadershipfor the fulfilment of organisational objectives. Coursesprovided by the BLA University also include programmessuch as “Vision and Values”, “Code of Ethics”, and “CASA”(quality, safety and environment) policies. Employees arecertified in these core values on a yearly basis to ensuretheir skills are aligned with the company’s objectives.The BLA University is a platform for further education forthe professional development of each employee in Latin<strong>America</strong>, which encompasses technical and functional abilitiesas well as soft skills. BLA management acknowledgesthe required skills in specific areas, such as commerce, administration,finance and operations & logistics, and thetraining required. The tailored training programmes expandthe employees’ skill base and creates lasting added value.The internal training is focused on safety and client service.The will to serve others is fundamental; this is why the BLAUniversity is used to measure and improve customer serviceskills, which are key for sustained growth.Nina Uekermann,<strong>Brenntag</strong> Holding GmbH,Germany“It´s really great that we now canreact more quickly to errors andavoid them more effectively.“Incident / Accident prevention means to learn from mistakes in order to avoid them, thatwas our main objective for this cornerstone. Only with all employees involved we willmanage to achieve this. More about safety: www.brenntag.com/safety<strong>Brenntag</strong> Cornerstone<strong>Brenntag</strong> Europe launched a poster campaign forCornerstone where employees talk about safety.Safety - our CornerstoneOur safety culture is an important corporate value for us.Our employees, as part of the <strong>Brenntag</strong> community, havetaken in our Safety First approach. With the Cornerstoneprogrammes in <strong>North</strong> <strong>America</strong> and Europe, we will provide aconsistent framework for combining all the regional safetyinitiatives in one programme. The name “Cornerstone”clearly represents the meaning of the initiative: a cornerstoneis the most important foundation stone in a building,since all other stones depend on it. Safety is the foundationof our corporate culture. This value, which is shared by allemployees, increases affiliation with <strong>Brenntag</strong> and has apositive, lasting effect on the development of our Group.This is the essence of Cornerstone – unity. Every employeeneeds to work together with his or her colleagues to reachthe next level of safety performance – and this is valid forevery employee in Sales, Operations and Administration.Cornerstone was introduced at <strong>Brenntag</strong> <strong>North</strong> <strong>America</strong> toimprove safety in the workplace and keep employee vigilancehigh.For us, the only acceptable goal for safety performance hasbeen, and will continue to remain, zero injuries and zero incidents.<strong>Brenntag</strong> Cornerstone defines our core values andoperating practices at every level of the organisation.The programme is an important tool by which we can communicateour business principles and increase awarenessand visibility to our employees, customers, suppliers and allother stakeholders.
PEOPLE 24The individual components of the programme are illustratedthrough various measures, including posters, stickers andtraining sessions. <strong>Brenntag</strong> Cornerstone is accepted very wellin <strong>North</strong> <strong>America</strong> and has significantly improved occupationalsafety. As a result of this success and the positive effects ithas had, the concept has now been rolled out at all Europeanlocations.Safety affects all <strong>Brenntag</strong> employees – starting with thetop-level management. The elements of the Cornerstoneprogramme are a major help when it comes to optimisingour safety performance even further. As far as content isconcerned, the aim is to increase safety awareness, to boostteamwork among employees, to look out for one another,to feel responsible and to act with responsibility, as wellas to increase attention and vigilance in the workplace.To achieve perpetual improvement, we always challengeall business processes to identify better ways to operate.In Europe, the Cornerstone programme was launched viaa special “Safety at Work” day on 30 October 2012. At thisevent, all employees attended safety training sessions –from the administrative staff and warehouse operatorsto sales employees. There were also presentations featuringgeneral information about Cornerstone and covering thefirst element, “Leadership and Accountability”. As was thecase for our <strong>Brenntag</strong> colleagues in <strong>North</strong> <strong>America</strong>, posters,roll-ups and banners were distributed to all Europeanbranches in the relevant languages. All employees haveaccess to key information via the intranet. The employeesalso watched video clips from the COO of <strong>Brenntag</strong> Europeand the regional managing directors, in which managementrequested all employees to pay attention to their own safety,as well as that of their colleagues. All six Cornerstone elementsare due to be introduced gradually at the individualEuropean locations during 2013.Dedication –<strong>Brenntag</strong> employees set an exampleOur employees are not only characterised by their excellentqualifications but also by their dedication and team spirit.For a company that operates in over 70 countries and transcendsmany languages and cultures, we have one thing incommon that binds us together – our passion for our businessand the chemical distribution sector. Our employees areencouraged to get involved in social and sustainabilityprojects by joy of working and by the belief that much canbe achieved by working together.Employees help to build housesOver the years, <strong>Brenntag</strong> employees from <strong>North</strong> <strong>America</strong>have volunteered and made charitable contributions tomany different causes, personally and through theworkplace. The interest in community programmes hascontinued to flourish, resulting in the development of the“You be the Difference” campaign and the beginning of apartnership with “Habitat for Humanity”, a non-profitorganisation dedicated to providing decent, affordablehomes to families in communities around the world.For every local home built, a payment is sent to “Habitatfor Humanity International”, which funds a home in adeveloping country.<strong>Brenntag</strong> employees pledged both time and moneyto “Habitat for Humanity”. <strong>Brenntag</strong> <strong>North</strong> <strong>America</strong>,<strong>Brenntag</strong> <strong>North</strong>east and <strong>Brenntag</strong> Specialties employeesparticipated in Habitat builds during the summers of 2011and 2012. These 50 plus employees brushed up on theircarpentry skills by installing insulation, painting skirtingboards, walls and ceilings, and preparing kitchen cabinetsfor installation. Some of the teams also participated indemolition and yard cleanup.Dedication, the willingness to help others and team spiritare what characterise our <strong>Brenntag</strong> <strong>North</strong> <strong>America</strong> colleagues,who are leading by example with their “Habitat for Humanity”charity projects. Through their commitment, dedicationand desire to contribute, <strong>Brenntag</strong> and its employees aresupporting the local community through “Habitat forHumanity” and many other charitable organisations.Public relations in the classroomBritish specialty chemicals distributor Multisol has developeda special project to boost the chemical industry’simage among the public. The aim is to explain the significanceof chemicals in our daily lives because people canonly appreciate them if they understand what they areused for.Multisol, which has been part of the <strong>Brenntag</strong> Group since2011, has taken on this task for the field of solvents andhas already won plenty of prizes for its commitment.Multisol colleagues visit schools in order to explain toyoung people the influence that chemicals have on ourday-to-day lives. A visit to the Multisol facility in Irlam,Greater Manchester, aims to illustrate to the 16- and 17-year-olds the link between their chemistry studies andthe practical applications enabling the students to recogniseand appreciate the importance of chemicals in ourday-to-day lives. The presentation of the safety regulationsused in the industry is of particular importance.The visit has shown to have the positive knock-on effectof increasing students’ interest in chemistry as a subject.In 2011, Multisol won the ESIG Award for Product Responsibilityfor its dedication. As a result of this success andthe positive feedback, the project will be continued inthe future.
PEOPLE 25Employee loyalty –learning from each otherDedicated employees are one of the key factors for thesuccess of a company. The prerequisite for this is goodemploy-ee loyalty. Happy employees who feel valued moveour company forwards thanks to their high motivation andlevels of commitment. The <strong>Brenntag</strong> Asia Pacific managementteam wanted to learn more about the dedication of theiremployees, and their issues and needs, so they initiatedan employee survey. The first “Dedication and Culture”survey for <strong>Brenntag</strong> Asia Pacific was conducted overthe course of three weeks in 2011, asking nearly 1,000employees for their opinions on various topics.The key drivers for dedication that were mentioned in thesurvey included people, work tasks, motivation, values, careeropportunities, recognition, quality of life, policies andprocedures, and compensation and benefits. The aim of theevaluation was to highlight the solidarity and commitmentof employees and, using these results, to boost their associationwith the company and to establish <strong>Brenntag</strong> as an employerof choice. After evaluating the data, it became clearthat learning and development play one of the biggest rolesin promoting employee loyalty. As a reaction to the resultsof the survey, Community of Practice (CoP) events havebeen held in a number of countries since early 2012.Employees who work in similar areas or posts, join forceswith a learning community in order to gain skills in thatarea. The exchange of information and experiences enablesmembers of the group to benefit from the knowledge ofthe others, which in turn drives their personal developmentand widens their skill set.A wide range of these learning communities have beenpracticed at <strong>Brenntag</strong> Asia Pacific. In China, there was a“Lunch and Learn” programme on the topic of culturaldifferences around the world, for example. The aim was toincrease the participants’ awareness and understanding ofthe cultural features of other countries. By interacting with<strong>Brenntag</strong> colleagues around the world every day, employeescan put this knowledge directly into practice. The membersof the group then discuss their experiences working withpeople from other cultures and their position in a multinationalcompany. The CoP will continue to support trainingand personnel development in <strong>Brenntag</strong> Asia Pacific.Our employees are one of the key factors of our success.
KapitelinformationenNo matter how you lookat it, responsible businessstrategies are the future.
SOLUTIONSIntroductionWater treatment – naturally sustainableGreen – the colour of the futureAdBlue®/DEF concept – effectively reducing emissionsProduct stewardship – inviting cooperationChemical leasing – innovative business model with a futureThinking ahead, looking ahead, planning ahead – sustainability is the future ofbusiness and is implemented systematically at <strong>Brenntag</strong>. We are highly committedto protecting the environment and do so with dedication. This commitment andthe possibility of supporting our customers and suppliers with our environmentallyfriendly solutions are the motivation and acknowledgement we need tocontinue on our successful path.At the same time, we also understand that it is a challenge to continue developingour sustainability strategy further, and to keep providing it with fresh impetusand to adapt our business to changing requirements.The topic of sustainability is in the spotlight more than ever before – across allindustries, around the world, all the time.We are absolutely certain that we are taking the right path with our solutions tofulfil our responsibility for the environment and to future generations.
SOLUTIONS 28We want to put our “Adding value“ strategy into practicehere, along with the aim to facilitate and promote sustainablepractices.Water treatment is one of <strong>Brenntag</strong>’s main industries. Wesupport our business partners in improving water qualityand promoting renaturation thanks to our wide-rangingproduct portfolio, one-to-one consultancy, an extensive rangeof services, an excellent network and our highly qualifiedemployees. As a result, we are able to create real addedvalue.<strong>Brenntag</strong> also supplies chemicals to purification plants.Sustainability is a multifaceted, important topic of the future.It constantly requires new answers to rapidly changingrequirements.In the previous chapters entitled “Strategy”, “Processes” and“People”, we showed the different ways in which we areaddressing the complex issue of sustainability.In our last chapter, we will also look ahead to address ourresponsibility to future generations by showing our dedicationfor the protection and maintenance of the environment.Water treatment in particular is a major topic for <strong>Brenntag</strong>.Water, the source of all life, is of prime importance and keepingit clean is vital around the world. In the past few years,there has been a resurgence in environmental awareness.The demand for environmentally produced and sustainableproducts has continued unabated. This is catered for by theGreen Product Line, which was launched in Europe in 2012.This way, we help support our customers in the manufactureof “green” products.The sale of the NOx-reducing agents Air1 and DEF is anotherimportant step towards the consistent implementation ofour sustainability strategy as is the area of chemical leasing,which is described in more detail later in this chapter. Ourfourth chapter is entitled “Solutions”. For us, this chapter isabout much more than just taking stock of what we haveachieved so far. Instead, we see it as a challenge to takealternative paths. After all, looking for solutions meansfinding answers.Water treatment –naturally sustainableWater is one of our most precious resources, and its treatmentand purification plays a major role worldwide. Froman economic and environmental point of view, sustainabilityis more important now than ever when it comes to water.Water treatment is a topic of global relevance facing localchallenges. As a result of the constantly changing statementsand regulations with regard to water quality, the demandfor innovative water-conditioning product solutionscontinues to rise.The field of water treatment is divided into several areas,with the two biggest being wastewater and sludge treatment,and the provision of clean drinking water. Wastewatertreatment involves purifying wastewater from industrialand municipal sources so that it can be reused. Anotherbranch of this industry is the treatment of sewage sludge,which is formed as a result of the residues from the mechanicaland biological purification of wastewater during thetreatment process.We offer our local and municipal customers a wide rangeof products and provide advice on all topics relating to watertreatment. To this end, our water treatment colleaguesdiscuss the product in detail with the customer so that thecustomer obtains a process- and cost-optimised version.We are faced with the challenge of eliminating pollutionand the unsustainable use of water resources while simultaneouslyincreasing efficiency and maintaining quality. Weare happy to take on this challenge in cooperation with ourbusiness partners in order to protect water as an essentialresource.Green –the colour of the futureSustainability and environmental protection play a significantrole in our society and within companies. For manyyears, we have been supporting our customers with a widerangingproduct portfolio and extensive expertise in thedevelopment and manufacture of environmentally friendlyproducts – with increasing emphasis on ecological sustain-
SOLUTIONS 29ability and standards establishment. In this way, we enableour customers to achieve their environmental targets.In 2010, <strong>Brenntag</strong> conducted a market analysis of sustainabilityand green chemistry in Europe, which indicated a“green” trend in all areas and industries. With our GreenProduct Line, we offer environmentally friendly solutionsacross Europe and a range of products that meets therequirements of green chemistry. <strong>Brenntag</strong> is not contentto merely follow this trend, but wishes to set new standardsin green chemistry. The campaign kicked off on EuropeanGreen Day – 16 January 2012 – when all employees in contactwith business partners were given an internal flyer tofamiliarise them with the Green Product Line and plannedactivities.Definition – how we understand green chemistryTo us, “green chemistry” refers to chemical products andprocesses that serve to reduce or avoid the effects of environmentalpollution. Although there is as yet no global,industry-wide definition of the term “green”, to us “green”simply means environmentally friendly.The US Environmental Protection Agency has developed 12principles of green chemistry. For our service and productrange, we have chosen to focus on the top five. As such, atleast one of these five basic principles has to be fulfilled forour products so that they can be included in the EuropeanGreen Product Line. The majority of our products fulfilbetween three and five of our basic principles.Five Principles of Green Chemistry1. Use of renewable feedstocks2. Safer solvents and auxiliaries3. Less hazardous chemical syntheses4. Design for biodegradation5. Design for energy efficiencyGreen Product Line – achieving green goals togetherThe demand for green solutions is continuing to increase– something that has been influencing the development ofnew products across all industries for years. Based on ourmarket analysis, we decided to concentrate initially on thefour industries in Europe in which this trend manifests itselfmost strongly.Cleaning, water treatment, coatings and construction, andpersonal care are areas in which both customers and endconsumers are increasingly looking for natural and environmentallyfriendly products. The demand for green productsin these segments has risen rapidly in recent years. For ex-ample, the field of natural and organic cosmetics has grownintensively given that more and more consumers are demandingnatural ingredients because they are gentler tothe skin. The topic of sustainability plays a major role in thearea of personal care.The natural cosmetics market has developed from a nichesegment into a mainstream market. People associate naturalcosmetics with health and well-being. Our range of naturaland sustainable raw materials helps our customers to developgreen products to fulfil their customers’ requirements.AdBlue®/DEF –effectively reducing emissionsIn recent decades, the amount of traffic on the roads hasincreased significantly around the world. In turn, this hasled to an increase in the levels of pollutants in the air.Vehicle emissions are considered one of the main contributorsto the greenhouse effect.Since we also transport large quantities of chemicals everyday in our HDVs, we want to make a contribution towardsreducing environmental pollution – something that we aredoing with the successful promotion of two NOx-reducingagents: AdBlue® and Diesel Exhaust Fluid (DEF).A tiny amount but mighty powerfulUntreated vehicle exhaust fumes contain nitrogen oxides(NOx), which have a significant effect on air pollution.The only way to prevent them from being emitted is tomake sure that they do not occur in the first place.The diesel engines of many HDVs are equipped with the selectivecatalytic reduction (SCR) system.The aim of this technology is to clean the diesel enginesreliably and to reduce their harmful emissions. This is donewith the use of AdBlue® and DEF. These two special NOxreducingagents are non-toxic, odourless and highly concentratedurea solutions that contribute to the reduction inNOx emissions.AdBlue®/DEF is sprayed via a nozzle into the exhaust streamat a precise, pre-defined quantity. This leads to a chemicalreaction within the SCR catalytic converter. First, AdBlue®/DEF is broken down (hydrolysed), which causes the harmfulnitrogen oxides to be converted into harmless nitrogen (N)and water (H 2O).Two names with one aimAdBlue® and DEF are specifically used to reduce nitrogenoxide emissions. They have the same effect but are used ondifferent continents.AdBlue® is successfully marketed by <strong>Brenntag</strong> throughoutparts of Europe and starting in Asia-Pacific, while DEF is
SOLUTIONS 30prevalent on the <strong>North</strong> <strong>America</strong>n market. Both productsfulfil high quality standards, with DEF certified to ISO 22241and AdBlue® to DIN 70070.By marketing AdBlue® and DEF and providing reliable qualityand security of supply, we not only help our customers toadhere to the standard values set out in Euro IV, V and VI orin the Environmental Protection Agency’s (EPA) diesel emissionstandards – but we also help to ensure that as many ofour customers as possible have the opportunity to do theirbit towards reducing emissions.New markets, such as the Agricultural and Personal Carssector, are promising for the growth of AdBlue® and DEF.All new tractors and machinery are also required to meetthe new environmental standards. The majority of the newmodels will be adapting the SCR technology. A growingnumber of personal car diesel models are adapting theAdBlue® emissions control equitment to clean exhaustgases beyond current legislation levels.Product stewardship –inviting cooperationLinking chemical manufacturers and chemical users,<strong>Brenntag</strong> provides business-to-business distributionsolutions for industrial and specialty chemicals globally.With our products and services, we want to enable othercompanies to take a sustainable approach.In their Responsible Care initiative, the European ChemicalIndustry Council (CEFIC) and the Fecc have drawn up guidelineson the joint product responsibility of suppliers anddistributors: the Product Stewardship concept. Distributorsbear (joint) responsibility for the products they buy, storeand supply to their customers. To ensure high standards inthe areas of environmental protection and occupationalsafety, suppliers, distributors and users or processingcompanies need to work together closely and exchangerelevant information:• The supplier is familiar with the chemical properties of theproduct and knows the details of the production process.• The distributor handles a wide range of products and possessesin-depth knowledge of the market.• The user knows the conditions under which the productsare processed and the purpose for which the end productis used.“Product Stewardship” means a commitment to cooperationalong the entire production and supply chain as well asthroughout the product life cycle – with the aim of passingon environmentally relevant and health-related data and ensuringresponsible handling of the various products.<strong>Brenntag</strong> implements this concept to promote health, safetyand environmental protection worldwide. We are also involvedwith the efforts of chemical distributors to optimiseenvironmental and health protection. For years, our employeeshave been active members of all the committees of thenational chemical distribution associations, of the Europeanassociation Fecc, the National Association of Chemical Distributors(NACD), the International Council of Trade Associations(ICCTA) and in cross-industry working groups.Chemical leasing – innovativebusiness model with a futureChemical products are ubiquitous in modern society and inour everyday lives. Whether it’s in the garden, in the kitchenor bathroom: we come into contact with a wide range ofchemicals every day. The significance of chemicals in ourlives is undisputable. However, it is necessary to address theissue of a sustainable environmental and chemical policy thatbreaks new ground, promotes innovative ideas and keepsthe burden on humans and the environment as low aspossible.Chemical leasing – service-oriented instead of volumeorientedAs a concept, leasing is primarily associated with a financialmodel that enables a customer to benefit from a particularproduct without having to purchase it. Chemical leasing isan innovative, service-oriented and sustainable businessmodel that puts the focus on paying for the usage achieved.The central components of the model are a fair breakdownof the additional added value, high quality standards andthe mutual trust of both companies.Chemical leasing describes the process of suppliers/distributorsproviding chemicals for a particular purpose (e.g.wastewater treatment), not in a quantity-based way.Therefore, the economic success of the supplier/distributoris no longer linked with product turnover. Instead of beingpaid by the volume of provided chemicals to a customer,the payment for the supplier/distributor is now based onfunctional units such as cubic metres of purified wastewateror the number of purified pipes that are used to make thenecessary calculations. The chemical leasing modelfocuses on the common interests of suppliers/distributorsand users.As a result of payment based on usage – regardless of theamount of chemicals used – the supplier/distributor takesa major interest in reducing consumption by the user viaprocess optimisation. Chemical leasing therefore requiresthe supplier/distributor and user to optimise their chemicalmanagement to the same degree and increase the efficiencyof chemical usage.
SOLUTIONS 31<strong>Brenntag</strong> provides its customers in-depth technicalknowledge and corresponding services in order to makethe chemical leasing concept a success for both parties.For <strong>Brenntag</strong> chemical leasing is part of an overall serviceprovider orientation. The main areas of application forchemical leasing are cleaning, cooling/heating, coatings,paints and varnishes, and wastewater treatment.Traditional Relationship:Conflicting incentivesSupplierwants toincrease volumeA win-win situation all roundChemical leasing is a business model that benefits not onlythe supplier/distributor and the user but also the environment.The more efficient use of chemicals enables suppliers/distributors and users to achieve higher profits. As a resultof the intensive dialogue between business partners,a long-term partnership arises that benefits both parties,increasing their economic and ecological performance andimproving their access to new markets.The topic of sustainability also plays a major role in chemicalleasing, too. One aim of <strong>Brenntag</strong>’s business model is tominimise the effects of chemicals on the environment andon humans. Companies using the chemical leasing modelare also taking a significant step towards a responsible andsustainable approach to the environment. The reduction inthe amount of chemicals used protects resources, reducespollution and saves energy.Product SupplyMaterial(cost, volume)wants todecrease volumeBuyerChemical leasing Models:Aligned incentiveswants to decrease volumeSupplierService & Solution SupplyLifecycle costs(material, labour,waste management)Buyerwants to decrease volume
ANNEX 32GRIReportedLocationIndicator11.1 Fully Page 622.1 Fully Cover Page2.2 Fully Page 10, 11;Page 56 AR*2.3 Fully Page 56, 57, 206 ff. AR*2.4 Fully End page2.5 Fully Page 206 ff. AR*2.6 Fully Page 26 ff. AR*2.7 Fully Page 10;Page 56 f. AR*2.8 Fully Page 10;Page 9, 116 ff. AR*2.9 Fully Page 61 AR*2.10 Fully Page 1833.1 Fully Page 33.2 Fully3.3 Fully Page 33.4 Fully Last page3.5 Fully Page 3, 6 and 113.6 Fully Page 33.7 Fully Page 33.8 Fully Page 10; Page 56 f. and 206 ff. AR*3.10 Fully3.11 Fully3.12 Fully Page 32 f.<strong>44</strong>.1 Fully Page 36 ff. AR*4.2 Fully Page 36 ff. AR*4.3 Fully Page 36 ff. AR*4.4 Fully Page 29 f., 39 f. AR*4.14 Fully Page 11 f.4.15 Fully Page 11 f.EC1 Fully Page 63 ff. AR*EC3 Fully Page 176 f. AR*EN16 Fully Page 18 f.EN18 Fully Page 18 f.*Annual Report 2012
ANNEX 33GRIReportedLocationIndicatorEN28 Fully Page 12 SR,Page 151 AREN30 Partially Page 174 f. AR*LA1 Partially Page 93 f. AR*LA2 Partially Page 94 AR*LA7 Fully Page 12LA11 Fully Page 22 ff.HR4 Fully Page 12, 13 and www.brenntag.com(Code of business conduct and thics)HR5 Fully Page 12, 13 and www.brenntag.com(Code of business conduct and thics)HR6 Fully Page 12, 13and http://www.brenntag.com/en/downloads/Compliance/130611_<strong>Brenntag</strong>_Code_of_Business_Conduct_and_Ethics_E.pdf (Page 12)HR7 Fully Page 12, 13 SR and http://www.brenntag.com/en/downloads/Compliance/130611_<strong>Brenntag</strong>_Code_of_Business_Conduct_and_Ethics_E.pdf (Page 12)SO7 Fully Page 191 f. AR*SO8 Fully Page 191 f. AR*PR3 Fully Page 19
<strong>Brenntag</strong> AGStinnes-Platz 145472 Mülheim an der RuhrGermanyTel: +49 (0)208 7828 0Fax: +49 (0)208 7828 698Email: infobrag@brenntag.deContact DetailsFor information about sustainabilityplease contact:Email: sustainability@brenntag.deConcept and Text<strong>Brenntag</strong> AG, Mülheim an der RuhrEngelmann & Kryschak Werbeagentur GmbH,DüsseldorfDesignEngelmann & Kryschak Werbeagentur GmbH,Düsseldorf
Kapitelinformationen<strong>Brenntag</strong> AGStinnes-Platz 145472 Mülheim an der RuhrGermanyTel: +49 (0)208 7828 0Fax: +49 (0)208 7828 698Email: infobrag@brenntag.de