Layout 1 - Flint Group
Transcription
Layout 1 - Flint Group
Sustainability Report 2015 02 Jakub Tomaszewski Laboratory Technician Global Colour Centre - Poland Flint Group is dedicated to serving the global printing and packaging industry. The company develops, manufactures and markets an extensive portfolio of printing consumables, including a vast range of conventional and energy curable inks and coatings for most offset, flexographic and gravure applications; pressroom chemicals, printing blankets and sleeves for offset printing; photopolymer printing plates and sleeves, plate-making equipment and flexographic sleeve systems; pigments and additives for use in inks and other colourant applications. With a strong customer focus, unmatched service and support, and superior products, Flint Group strives to provide exceptional value, consistent quality and continuous innovation to customers around the world. Headquartered in Luxembourg, Flint Group employs some 6,800 people. Revenues for 2014 were €2.1 billion (US $2.8 billion). On a worldwide basis, the company is the number one or number two supplier in every major market segment we serve. For more information, please visit www.flintgrp.com. F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Contents: Introduction – Antoine Fady, CEO Flint Group Flint Group and Sustainability 5 6 Flint Group Key Facts Economic Identifying and managing risk Integrity and compliance Ensuring we do business right 10 11 12 Environment Efficient energy use Classification and labelling Packaging and Narrow Web Flexographic Products Print Media 16 22 24 28 31 Social Building our organisation Health and safety Social sustainability Understanding the supply chain Measuring sustainability 36 39 42 46 48 Headquarters: Flint Group S.A., 26b Boulevard Royal, L-2449 Luxembourg, Luxembourg Ownership: Flint Group is privately owned by Goldman Sachs Merchant Banking Division in partnership with Koch Equity Development LLC, a subsiduary of Koch Industries Inc. Key Personnel: • Pierre-Marie De Leener, Chairman • Antoine Fady, CEO • Steve Dryden, CFO Flint Group in numbers... 6800 1,950 Raw Material Suppliers Flint Group Employees 140 Across 5,800 Raw Materials sites 40 countries on all continents 120,000 over unique customer formulations Almost 20,000 direct customers and many more through our extensive distributor network The content, materials and information contained within this report are solely owned by or licensed by Flint Group and its business units. All rights reserved. All copyright and other (intellectual property) rights in all text, images and other information contained within this report are the property of Flint Group. Permission should be sought from Flint Group before any part of this report is reproduced, stored or transmitted by any means. While Flint Group uses all reasonable efforts to include accurate, complete and upto-date information, the report, including without limitation the content, materials, information within, is provided to the user “as is” and without warranties or representations of any kind, either express or implied. Flint Group is not responsible for and disclaims any liability for any damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with the access and/or use of this report. Flint Group may modify, alter or amend portions of this report at any time at its sole discretion, without notice, and assumes no responsibility to update. cover image: ©Vera Kuttelvaserova 04 Revenue 2014 2.10 € bn US$ 2.8 billion over 620 million kg of ink products (1,340 million lb) 4.2 million m2 of plates and blankets (45 million square feet) Antoine Fady, CEO Flint Group The passion and commitment of our people remains a key driving force to our success... Sustainability shapes the way we conduct our business and interact with all our stakeholders – customers, colleagues, shareholders, suppliers and the communities where we operate. Our vision, strategic objectives and core values underpinned by our Mission and Guiding Principles are closely integrated in all of our policies, procedures, decision-making processes and operations while our “can-do” attitude and continuous improvement methods continue to make us the company we are today. served to support our own organisational objectives but also those of our customers and suppliers. As companies along the packaging and graphic arts supply chains increasingly embed sustainable philosophies and practices into their businesses, they can rely on Flint Group to be a strong link in that sustainability chain. Training We believe that applying this commitment and approach to sustainability is simply smart business practice – a fundamental driver to long-term shareholder value and the delivery of a vibrant, successful business. The passion and commitment of our people remains a key driving force to our success. With the goal of helping employees maximise their talents and learn new skills, we invested heavily in training during 2014. We improved our face-to-face and e-learning platforms, and expanded a global training programme designed to help employees gain increased leadership capability. Safety, Health & Environment Change of Ownership At Flint Group we believe that nothing we do is worth getting hurt for and we have continued to focus on ways in which we can make Flint Group increasingly safer for everyone. In 2014, we began a comprehensive global audit of all Flint Group facilities for compliance with a multitude of SHE regulations, laws and standards. In addition, we’ve implemented an enhanced SHE Management System in compliance with OHSAS 18001 (a global safety & health standard) and ISO 14001 (a global environmental standard). The lessons learned from the audit and the strength of the new SHE Management System reinforce the foundation on which Flint Group continues to improve the environment that our employees and communities operate in each day. 2014 also heralded some exciting developments from a business perspective with the transfer of ownership of our business to Goldman Sachs and Koch Equity Developments – leaving Flint Group better positioned financially to reach our sustainable business goals. Flint Group’s safety record remains at a world class level, though the TIR (Total Incidence Rate) rose slightly in 2014 – a marker that has only served to reinforce our commitment to safety. The trend has also underlined the importance of remaining vigilant with regard to our safety efforts and we remain confident that the commitment, creativity and skills we possess will bring us closer to our long-term goal of becoming a zero incident organisation. Ever Higher Standards Integrity I invite you to take a closer look at Flint Group’s sustainability successes and challenges within this document, and look forward to reporting on continued progress over the coming years… Flint Group has also continued to attain ever higher standards of integrity as we introduced a strengthened Code of Conduct in 2014. The updated Code provides increased guidance about complex issues, helping to increase clarity and ensure that all employees and companies connected to Flint Group understand the standards we set for ourselves and for those who represent us. Strict adherence to the provisions of the Code are an absolute precondition for all of our business relationships, from suppliers to employees to dealers and agents worldwide. This closer alignment to the Code has not only While we recognise that are progressing on our sustainability journey, our owners’ clear support of our strategic vision and our teams will ensure that Flint Group’s fundamental dedication to safety, integrity and compliance can continue to form the foundation of all of our business activities in the years to come. Flint Group employees possess a determination and “can-do” attitude that push us to reach ever higher standards and goals each year. Guided by our ongoing continuous improvement processes, our path towards sustainable growth and sustainability improvement has enabled Flint Group to continually deliver increased levels of performance in 2014 and beyond. Antoine Fady CEO Flint Group 055 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Welcome to our 2015 sustainability report, which covers the progress Flint Group has made on our sustainability journey in 2014. Building on our long-standing commitment to lowering our social and environmental impacts, I’m proud of the progress that we continue to make year on year. As we share our third external report, I’d like to emphasise the importance we place on continuous improvement across processes, measurements and design, as well as tools and systems.– Being responsible for sustainability within the Executive Management Team, I read many sustainability reports produced by companies in diverse industries. While it is good to gain an insight into their progress, there is a tendency for some reports to focus on carefully selected positive stories. This makes it hard to understand the real, “hard” results delivered. In our 2013 sustainability report, I stated: “unless you measure things consistently, it is difficult to document improvement”. This commitment led to a significant upgrade of our sustainability tracking system in 2014. We are now digging deeper into social and environmental issues throughout our supply chain. This increased visibility will help us to forge a more in-depth understanding of risks and opportunities, as we seek to strengthen our sustainability programme and targets in the years to come. Who is responsible for sustainability at Flint Group? The answer is our 6,800 employees. Since we believe that sustainability should not be confined to a separate department, there is no one person in Flint Group who is solely responsible for the sustainability agenda, or even this report. We believe real sustainability is built from the bottom up, executed in people’s daily work and reported by those with both a business and sustainability focus. Therefore, the report you read today is created by a small, international group of people working in multiple functions, from engineering and health and safety to HR, finance, communications, regulatory and procurement. Together, they prioritise the inclusion of multicultural elements of the sustainability agenda. Contributions to the report have been shared by people who are really making things happen, as part of their day-to-day work. You will see within the report, just some of the many examples where Flint Group’s teams and people have really made a difference to the world around us. From emergency help in the midst of crisis to long-term projects where the skills and expertise of our employees continue to make telling contributions to the communities where we live and work. Additionally, you’ll see that we have raised the bar for our industry by upgrading our compliance process and policies, and further improved our systems and tools, as well as the way we work with our suppliers. Again, as I mentioned last year, we have a great “can do” mentality, based on sound thinking and a strong underlying approach. At Flint Group, we say what we do and we do what we say, and it is with this firmly engrained philosophy that I look forward to making further progress on our sustainability journey in 2015 and beyond. Jan Paul van der Velde Senior Vice President – Procurement, Sustainability, IT and Regulatory Flint Group and Sustainability “We have a great ‘can do’ mentality, based on sound thinking and a strong underlying approach. At Flint Group, we say what we do and we do what we say.” Flint Group’s Sustainability Statement: Economic Environment Flint Group’s Sustainability Model combines three elements: Eth ics ent This strategy enables Flint Group to deliver integrated solutions in the three key dimensions of corporate sustainability*: rem Flint Group operates within the spirit of the UN Global Compact for sustainability. Every day our people and teams are committed to providing increased health, safety and wellbeing whilst a continuous improvement programme is in place to reduce our current environmental impact now and for future generations. An uncompromising Refo rmu integrity policy and strong ethical values set by our latio n own Guiding principles ensure that you can truly Rely on us for sustainable development… cu Pro Flint Group’s approach to continuously improve sustainability is underpinned by our own Mission and Guiding Principles – a fundamental set of simple, clear values. Code of Conduct Flint Group’s Sustainability Model: Pr Op oce tim ss isa tio n 1. Flint Group’s Mission and Guiding Principles – our way to ensure that we deliver on our commitments ty ali 2. The UN Global Compact Qu 3. The reporting outline as defined by the Dow Jones Sustainability Index Integrity rials Mate Continual Improvement Employees Safety Recycling guides corporate governance, code of conduct, risk and compliance. steers our goal to continually reduce impact on the environment and regulates the reporting of progress. m un ica tio Was t Red e ucti on Customer Satisfaction * - As outlined within the Dow Jones Sustainability Index. tion ova Inn drives corporate citizenship, labour practices, people development, social reporting, talent attraction and retention. This fundamental set of simple clear values allows us to align our activities internally within the spirit of the UN Global Compact while our external reporting methods detail the delivery of integrated long-term economic, social and environmental solutions: Co m g in ain Tr Peo p Pro le ces ses Customers Leadership / Teamwork rgy n Ene uctio Red n Social Flint Group’s Mission and Guiding Principles The long-established Mission and Guiding Principles cover, in five key areas, the way of working in Flint Group: Environment Economic Anti Corruption Labour Environmental 2. UN Global Compact Anti-Corruption, Labour, Human Rights, Environmental 3. Dow Jones Sustainability Index (DJSI) Economic, Social, Environment Human Rights Social 07 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 4 Economic: 08 CONTENTS: 10. Managing Risk – Working closely with risk experts to oversee and guide our own risk management activities 11. Integrity and Compliance – Providing complete clarity on Flint Group’s behaviour and expectations 12. Code of Conduct – Flint Group’s Code of Conduct continues to drive ethical business behaviour F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Building a clear picture of our risk profile... As a responsible private company, Flint Group takes a structured approach to managing risk. Through our group-wide risk and compliance management process, we regularly review risks across the business in a systematic way, building a clear picture of our risk profile. We consider multiple risk types, including operational, financial and environmental issues, as well as compliance, product liability or commercial issues, and risks related to employees. In every case, we seek to understand if and how the risk affects the whole group. Our Executive Management Team works closely with risk experts through a dedicated committee to oversee and guide our risk management activities. In 2014, we divided this group into two separate committees. One will focus on risk and the other on integrity and compliance, which will allow us to gain a more in-depth understanding of compliance issues. Our committees meet twice a year to review current risks and mitigation plans, and evaluate progress. We rank the severity of each risk according to probability of occurrence and projected impact, in order to identify where it sits within the Flint Group risk profile. During this process, we may add new risks or remove existing risks, as appropriate. We share our findings in the form of a “heat map” with the Board on an annual basis, along with a detailed risk register. We have identified 32 risks with a critical score, of which 9 have been allocated the most severe ranking. Our risk management committee is developing comprehensive action plans to eliminate all critical risks and will monitor progress closely. Risk management will remain a key strategic priority as we continue our journey to become a sustainable business. 10 Steve Dryden CFO Flint Group Long-term success of any company’s sustainability efforts will hinge on the very culture of the business. Flint Group has always prided itself on running a fair and ethical company. Still, we feel strongly that a formalised Integrity & Compliance programme benefits any company, especially one like ours that will continue to grow and thrive well into the future. For that reason, we launched our Integrity Assurance Policy in 2011 and have been reinforcing, expanding upon and improving it ever since. As 2014 unfolded, our Integrity & Compliance group launched a global Integrity Assurance Hotline. Previous reporting guidelines encouraged employees to come forward without fear of dismissal or retaliation, but compliance industry surveys suggest that such systems do not fully allay employees’ fear of reporting concerns. Our new Hotline allows individuals to raise concerns–anonymously or not, as they choose–about possible malpractice within our company. (Note: exceptions exist in a small minority of countries that legally do not allow the practice of anonymous reporting.) In addition, the Hotline is more localised than our prior reporting process. Available 24 hours a day, 7 days a week via phone or web, employees can report concerns in any of 25 languages. At the same time. The Hotline provides a reporting and tracking infrastructure that helps Flint Group handle concerns properly and efficiently. Each report is followed by a complete investigation and resolution. Since the launch, we’ve been encouraged to see employees making use of this tool, and also heartened to see that reports within Flint Group are, according to the Integrity & Compliance third-party firm that guides us, far lower than the average of global companies our size. In 2014, we also updated our Code of Conduct. Though our basic values and expectations remained consistent, we reviewed and revised the Code to keep the contents topical and relevant. In addition, we dedicated more time and resources than ever to internal and external education about the Code of Conduct. In a word, we put all of our muscle into this important policy. The goal: ensure that employees, partners, suppliers, distributors, agents and anyone who works for, with or on behalf of Flint Group have complete clarity about expectations and acceptable behaviour. Following the Hotline and Code of Conduct launches, we started a detailed review of our corporate governance policies related to AntiBribery and Corruption, Gifts and Entertainment, International Trade Controls and Sanctions, Anti-Trust, and SHE & Operations Policy Management. To be sure, 2014 was a productive year in the area of Integrity & Compliance, and the momentum has continued unabated into 2015, as we began to roll out comprehensive training about these new policies to all our employees, agents and distributors worldwide. As our Integrity & Compliance programme continues to evolve and grow, one thing remains timeless: Flint Group is committed to ethical business practices and personal integrity as expressed in our five Guiding Principles: - Our customers are the focus of all that we do; - Everyone contributes to our success; - Integrity will never be compromised; - Continuous improvement drives performance and supports our aspirations to achieve excellence; - Leadership and teamwork are prerequisites for achieving our goals. Russell Taylor Senior Vice President, Human Resources, Communication & Integrity & Compliance Integrity and compliance 11 12 Flint Group - Costa Rica F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Key elements of the Code of Conduct are: Ensuring we do business right... Doing business in the right way has been a key priority for Flint Group since our inception in 2005. In particular, we drew on our strength as an entity forged from leading companies in the industry to establish a strong Code of Conduct at an early stage. In 2014, we updated our Code of Conduct to clarify and strengthen our policies in respect of bribery and corruption as well as trade-sanctioned countries. The core principles of compliance, safety and environment, confidentiality and how we do business remain the same. The Code is published both internally on our company intranet as well as externally on our website. Importantly, all new employees are asked to familiarise themselves with the Code through their induction. Further, we require a significant proportion of our employees to certify annually – through our Employee Representation Certificate (ERC) – that they are not aware of any violations of the Code during the reporting period. We investigate any instances of non-compliance through a structured, transparent process, with penalties levied as appropriate, including termination of employment. Flint Group aims to ensure that people across the business respect our commitment to ERC reporting. This applies to all general and senior management, all sales and procurement teams, finance, human resources and all senior people who deal with customers, suppliers, other third parties or government officials. We consistently increase the proportion of employees who take part in the ERC process each year. Including employees in the Safety, Health and Environment (SHE) and Quality departments led to a significant year-onyear increase in participating employees in 2014. In addition, we updated the 2014 ERC form in line with the new Code of Conduct. • Compliance with the law and supporting the spirit of the UN Declaration of Human Rights, the UN Global Compact and application of good ethical business behaviour • Strong emphasis on Safety and the Environment as well as on Working Conditions, including • condemnation of forced labour • abiding by the UN Declaration on the Rights of the Child • avoidance of any discrimination • Confidential treatment of information • As part of our high ethical standards, we have in place processes that help avoid • conflict of interests (encompasses Flint Group’s gift policy) • commercial bribery • inappropriate relations with government representatives • fraud and criminal activity • infringements of anti-trust and competition laws • political involvement • support all official investigations as required by the applicable laws 40% 35% 30% 25% 20% 2009 2014 2013 2012 2011 2010 2009 2010 2011 2012 2013 2,506 out of 6,828 total Flint Group employees 1,962 out of 6,624 total Flint Group employees 2,041 out of 6,798 total Flint Group employees 1,919 out of 6,975 total Flint Group employees 1,541 out of 7,308 total Flint Group employees 1,563 out of 7,281 total Flint Group employees 2014 - 37% - 30% - 30% - 28% - 21% - 21% • Appropriate records and book-keeping • Compliant use of company assets as well as emails and internet • Full back-up of all terms of the Code of Conduct by strict reporting regulations, underpinned by Flint Group’s Integrity Assurance Policy. In 2014, some 38 issues were raised of which 5 were designated as “high risk” issues, with 20 medium risk issues and 13 low risk issues. We have addressed every issue and, where required, implemented corrective actions to reach an effective solution. Steve Dryden Chief Financial Officer 13 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Environment: 14 CONTENTS: 16. Reduce, reuse, recycle – Optimising processes and programmes to conserve energy and water 23. Classification and labelling – How legislation impacts on sustainability 24. Packaging and Narrow Web division – Providing the colour that identifies our life 28. Flexographic Products division – Improving productivity, reducing waste 31. Print Media division – Exploring formidable ideas and efforts that continually reach new heights in safety and sustainability 15 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 16 Dave Simpson Wet Batch Maker - Chemical Production Facility Manchester, UK Reducing, reusing and recycling... Flint Group is committed to the effective and efficient use of energy and water throughout our operations and constantly evaluates ways we can actively conserve energy and water throughout the life cycle of our products. Using environmentally responsible practices, Flint Group promotes energy efficiency by evaluating new technology, optimising current processes and implementing programmes that focus on improvements in reducing our operational use of fossil fuels and electricity. Flint Group has a deep history of implementing many projects and process improvements that have resulted in direct reduction of carbon dioxide equivalent emissions. Some of our energy saving initiatives and projects that have conserved valuable resources including: Energy monitoring control systems work to manage consumption as well as peaks in demand, reducing overall electricity consumption. Operational Excellence (OpEx) is a Flint-Group-created notes database used by Facility Managers and Engineers to track all process improvements, CAPEX and savings projects. For 2014, 403 projects were active throughout all global sites. Of those 403, 45 were utility related. Here below are a few of those projects. Process Automation Heating and Cooling Improvements... Upgrading heating and cooling systems can have long-term multidimensional benefits, from cost savings to temperature management, efficient air flow and improved air quality. One site in particular was able to negotiate a lease renewal: included within the new lease was a provision whereby the landlord upgraded the HVAC system. Five roof top units totalling 105 tons of heating and cooling capacity were replaced. The old system was in constant failure to the point of not keeping the facility at temperature. Today, we have a consistent occupied temperature of 70–72°f (22°C) throughout the building as well as a higher efficiency system. Yet another facility had experienced situations of heating loss during autumn, winter and spring. Sometimes windows were left open and sometimes the radiators were still on a high temperature, which meant thermostats always called for heat. At minimal cost, Flint Group staff installed window contacts in offices, common areas and shower rooms. When the window is open, the circuit is open which means radiators do not heat. We also installed central room regulators for programming temperatures during occupied and unoccupied times. This means when employees leave home in the evening the system reduces heat demand but the next morning it starts warming prior to the employees, return to work. These changes have given us better control and have reduced energy demand. Previously, an operator set a water flow rate manually to maintain temperature in a vacuum jet system. By installing an automatic flow control valve, synchromising programming and scheduling routine heat exchanger cleaning, the water usage was reduced and savings were achieved through better control. Facility improvements across all sites have produced sustainable results. Here are just a few of those past improvements: - Upgraded lighting and ballasts - Upgraded equipment to higher efficiency units which consume less power - Motion sensing lighting systems - Boiler upgrades - Installed economisers that preheat water for steam generation - Eliminated condensed air and steam leaks - Production processing optimisation, reducing per-unit energy consumption - Installed transient voltage surge suppressors to stabilise voltage. Optimise Compressed Air System A project was executed through an energy-saving initiative by the local power company. Flint Group was offered, as a “pilot”, to receive a facility audit of their compressed air system. The audit identified 58 air leaks totaling 162 cfm. The leaks were repaired by installing a solenoid that only activates when an open blow is needed. In addition, six open style steam condensate drains with level-activated type drains that require no air to remove the liquid from the system were also installed. The audit and all repairs were fully reimbursable due to this programme being a pilot. The 17 local power company took benefit from power demand reduction on money that they are required to give back to customers. Flint Group benefited by having the leaks repaired at no cost. Solvent Recovery System Condenser A condenser previously in service on a solvent recovery system was undersized for the system. This condenser limitation resulted in increased energy usage. Steam-out cycles for the system were shorter (more frequent) than the design basis because not all of the toluene removed during steam-out cycles can be condensed with the existing condenser. Uncondensed toluene was recycled back into the inlet of the carbon absorbers - decreasing system capacity and increasing the required steamout frequency. This project proposed to install a condenser that would condense essentially all of the toluene vapours generated during steam-out cycles. With minimal toluene being recycled through the system the required frequency of steam-out cycles would be reduced resulting in reduced steam (natural gas generated) consumption. Efficient operation of this solvent recovery system is required to meet the air permit limits. This system must operate continually to support both the Blankets and Sleeves production units. Electricity Usage 40000 Contractor awareness – China Flint Group’s Pudong Pigments plant in Shanghai, China, organised a contractor safety programme in July 2014 to further raise safety standards and staff awareness at the plant. All active contractors at the facility were asked to attend the initiative run by local government, with the training programme conducted by a senior facilitator from the Shanghai Pudong Production Safety Training Center. Electricity Usage in GJ 35000 30000 25000 20000 15000 10000 5000 0 As part of the programme, participants at the event were also required to undertake written tests to achieve the necessary work safety certifications issued by local government and required to work at the pigment production facility. Q1 Q2 Q3 Q4 Q1 Q2 2012 Q3 Q4 Q1 Q2 2013 Q3 Q4 Q3 Q4 2014 Emissions from Electricity 18 Electricity CO (Tonnes) 350000 300000 250000 200000 Q1 Q2 Q3 2012 Q4 Q1 Q2 Q3 2013 Q4 Q1 Q2 2014 Group’s global GHG programme. The programme began with sites in Europe and North America and we continue to expand across all sites worldwide. Greenhouse Gases Although sustainability is a comprehensive term that includes all functions and aspects of a business, the monitoring and reduction of Greenhouse Gases (GHGs) is a key tenet of any company’s sustainability programme. GHGs are important to a sustainability programme for two key reasons. First, GHGs are a key factor in the development of ozone in the lower atmosphere and the development of smog. And second, GHGs are the result of the use and depletion of resources. Electrical and natural gas consumption data is gathered for each location and a baseline of use is established. The baseline for individual sites as well as the company as a whole is used as our standard to determine year over year improvements and the quantifiable results of improvement projects. Flint Group’s GHG and water usage monitoring and documentation is a centralised system, which is accessible to local management to track local activities and available in a consolidated format to track company-wide progress. Flint Group’s intention is to reduce its consumption of fossil fuels and energy through best practices and continuous improvement. Although lowering our carbon footprint is the primary objective, it is recognised that variation from year to year can also occur due to business and facility rationalisation, and process changes due to customer demand. Flint Group has a global programme of GHG monitoring. A baseline has been developed by location for emission of GHG and water usage. Within Flint Group the vast majority of GHG comes from electrical and natural gas consumption. All sites are encouraged to reduce emissions from all sources of GHG, but electrical and natural gas are the sources that make up Flint Emissions from air travel Flint Group reports on air travel data using the distance-based method, which involves determining the total distance travelled for each flight for the calendar years 2012–2014. Data was gathered on travellers based in Europe and North America. For calculating CO2 emissions, the EPA has published emission factors for each travel segment: Flight Segment kg/mile Short Haul Flights 0–300 Miles 0.275 Medium Haul Flights 300–2300 Miles 0.162 Long Haul Flights 2300+ Miles 0.162 Natural Gas Usage (in GJ) Of the three segments, short hauls have the highest emission factors due to the landing and take off cycles on emissions. Long hauls come in a close second simply due to the weight from extra fuel. This graph shows the carbon emissions (in kg) for each of the three haul segments by year (CO2e/mile/year). Natural Gas Usage in GJ 400000 350000 300000 While Flint Group remains committed to seeking opportunities to reduce the impact our global business has on the environment, long haul air travel has significantly increased over the last few years and we expect this to continue. Our customer base is becoming increasingly global and requires our products to be implemented around the world in order to meet the exacting standards, which may not be available on a local basis. To ensure implementation of these products, our experts and our sales teams will need to support this development. 250000 200000 150000 100000 50000 0 Q1 Q2 Q3 Q4 Q1 Q2 2012 Q3 Q4 Q1 Q2 2013 Q3 Q4 2014 3,500,000 Emissions from Natural Gas 3,000,000 - 2014 - 2013 - 2012 2,500,000 350000 2,000,000 300000 Kg CO2E Natural Gas Emissions in Tonnes 400000 250000 1,500,000 1,000,000 200000 500,000 150000 Q1 Q2 Q3 2012 A4 Q1 Q2 Q3 2013 A4 Q1 Q2 Q3 2014 A4 0 Long Haul Medium Haul Short Haul Total Golden Energy Saving Ideas in China Lu Qi “The Golden Idea” is an employee suggestion programme run within Flint Group China to reward innovative and creative ideas that bring measurable benefit to the organisation. One of the primary aims of the initiative is to specifically look to reward constructive ideas involving waste reduction, improved safety or enhanced operational processes as part of the company’s wider sustainability drive. Results Flint Group measures CO2 emissions by tracking internally consumed fossil fuel and purchased electricity (Scope 1 and Scope 2) at approximately 93% of Flint Group operations in Europe and North America. Our largest facilities in Latin America and Asia are also included in the Carbon Dioxide Emission table below. Scope 1 and 2 energy generation accounts for almost all the carbon dioxide released as a result of Flint Group activities. Scope 1 emissions are created by the combustion of fossil fuels at Flint Group operations (Gasoline, Diesel, Propane & Natural Gas usage). Scope 2 emissions are from brought in energy such as electricity. Through internal auditing and additional reporting, information for 2012, 2013 has also been updated. Carbon Dioxide Emissions In thousand metric tons 2014 was no exception to this with eight employees and teams receiving the Golden Idea award. Several of these focused on energy-saving initiatives Shen Guangqing including Mr Lu Qi in AZO who suggested installing LED lamps in workshops, and an idea from Mr Shen Guangqing in EMU to install air heating blowers to recycle heat energy and reduce the consumption of diesel oil within the facility. Both suggestions continue to contribute significant energy savings to the organisation. 2010 2012 2013 2014 Scope 1 Emissions Scope 2 Emissions 31.1 152.9 29.69 148.6 28.26 143.5 29.58 133.1 30.95 130.3 Total 183.0 178.29 171.76 162.68 161.25 Water Conservation “The Golden Idea is a wonderful example of Flint Group living to its Guiding Principles,” said Jennie Zhu, Human Resources Director, China. She continued, “The employees know our processes better than anyone and we value their creativity and ideas. Our people continually prove that we have much to learn from listening to ideas, ideas which ultimately deliver value to our customers.” 2011 It is important to understand how we use and manage water throughout our facilities. Managing water usage effectively reduces the impact and demand on several environmentally affected systems such as the impact on fossil fuels used for the heating and treating of water, or reducing the overall impact on the ecosystem and wildlife habitat. Every employee has the capability of conserving water, from shutting off a running tap, issuing a work order to fix a leaking system or simply reducing individual impact on overall water usage. Every unused drop of water, when collected as a total water saving, can have a tremendous impact on Flint Group’s total water usage. For 2014 significant effort was made to increase the accuracy for reporting water usage. As a result of this increased accuracy and increased number of sites reporting water usage. As a result the water consumption between 2013 and 2014 did increase by 166,036 cubic metres. Water Usage Water Usage in m3 1000000 925000 850000 775000 700000 20 Q1 Q2 Q3 2012 Q4 Q1 Q2 Q3 2013 Q4 Q1 Q2 Q3 2014 Q4 Solid waste to landfill 5000 (Tonnes) 4000 3000 2000 1000 0 Q1 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 Q2 2013 Q3 Q4 2014 Waste Management Operational efficiencies and therefore waste management have been high on the priority list for our Operations team for a long time. The key challenges to waste are linked to the product portfolio complexity and the high frequency of production changeovers, combined with relatively small batch sizes. We are in the process of aligning the metrics around waste because it is clear that any waste, be it time / effort or materials, should be avoided, both from a financial and sustainability point of view. The term “waste diversion” refers to the amount of waste in any way diverted from landfill sites. This is through reducing, recycling and reusing where possible. The percentage of overall waste that has been diverted from going to landfill in 2014 is 15%. In comparison only 5% of waste was diverted in 2013. The table identifies by region, total landfill waste for 2014 and percentage of waste diverted by region vs. regional waste and vs. global waste. Waste Diverted by Region Landfill / Dry Waste % of Total Global Dry Waste % of Waste Diversion from region % of Waste Diversion from Global Waste Asia Pacific 17% 97% Europe 34% 24% 8% Latin America 6% 88% 5% North America 44% 1% 4% Landfill Waste (M-tonnes) Waste Diversion Hazardous Waste 16% 2011 2012 2013 2014 16.9 18.0 12.2 0.6 539.6 11.5 2.1 404.8 not reported not reported not reported not reported Francisco Reyes García Production Operative Transfer Media - Mexico 21 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 How legislation impacts The volume of chemical, packaging and labelling regulations continues to expand. This applies to the European Union (EU) and beyond. Countries including the US, China, Korea, Turkey and Brazil also take an active stance on areas such as export control, customs and chemical control laws. 22 Flint Group Regulatory Charter at a Glance on sustainability... New and updated legislation on chemical control, in particular, stands to affect Flint Group’s sustainability performance. Flint Group’s Regulatory department reviewed 1,106 laws in 2014 (up from 609 in 2013) and considered their potential impacts on our business, our sustainability and our commitment to integrity and compliance. Our approach to staying alert to and acting on evolving legislation is clearly demonstrated by our efforts to comply with Regulation, Evaluation and Approval of Chemical substances (REACH), Global Harmonised System (GHS) and Classification, Labelling and Packaging (CLP) regulations. Regulatory impact of REACH, GHS and CLP regulations REACH was adopted by the European parliament in 2006 and is the most significant EU legislation on protecting human health and the environment from the negative impacts of chemical substances. It has since become a major focus within Flint Group’s sustainability programme. While REACH is a European regulation, it has global implications in terms of sourcing raw materials and selling finished goods. We have therefore created a more focused global regulatory organisation. In the wake of REACH, CLP rules for chemical products have changed considerably. CLP legislation will now follow a global approach (the GHS) for labels and safety data sheets. The details of CLP and GHS legislation may differ from country to country. Our Regulatory team has taken the following actions to comply with REACH, GHS and CLP: 2010: 11 substances registered, registration updates for 4 substances, lead registrant for 3 substances. In our role as a downstream user, we collaborate with Procurement to ensure that our suppliers follow REACH registration obligations. In this way, we are securing a reliable, ongoing supply of products for our customers. Substances of Very High Concern (SVHC) SVHCs are the most publically scrutinised substances. Once they appear on the relevant candidate list, they will be banned. To date, Flint Group has replaced all possible SVHC substances before the legislation comes in force. By the end of 2014, the relevant candidate list featured 161 substances and is set to increase. Some 31 substances are already on the authorisation list, better known as REACH annex XIV. No products supplied by Flint Group in Europe contain any SVHCs in concentrations above 0.1% (as per the relevant legislation). We take action to address any new substances added to the candidate list by the European Chemistry Agency. Classification, labelling and packaging The The The The things we do way we act trust we gain reputation we build Flint Group’s business ethics and the consequences for all Flint Group personnel are well described in our general Code of Conduct. The Regulatory Charter is fully in line with the general Code of Conduct but focuses on the various high risks in the regulatory area (financial and reputation) and how Flint Group manages them. The Regulatory Charter is valid GLOBALLY and aligns all activities of Flint Group regarding the risks arising out of: - Export Control - Customs - SHE data (Safety, Health and Environment) - Chemical control laws and regulations (e.g. REACH). All four areas impact high risks for Flint Group, i.e. up to several million US$ / € financial fines for the company (or its legal entities) AND individuals, plus / or imprisonment of up to 20 years. The major task of the Regulatory global team is to avoid any negative impacts from the areas mentioned above and to protect Flint Group and its employees against imprisonment and fines. Due to the high complexity of Regulatory, its Charter clarifies the areas of responsibility, i.e. which legislations, inventories, etc. are covered by Regulatory and which are not. Regulatory’s direct reporting line is to the Executive Management Team (EMT). To protect Flint Group in a proper manner, the Regulatory team, represented by the Director Global Regulatory, must report any case of severe regulatory misbehaviour to the EMT. We have launched a project to help ensure we comply fully with upcoming CHP requirements for mixtures, working closely with associations (national and European) and IT suppliers. Together with our business divisions and IT, we have also initiated a project to introduce new solutions for harmonised labels and safety data sheets, as required by law. Through this project, we will validate the updated product safety data of approximately 93,000 formulations. Registration of substances Towards 2018: registration activities underway. We expect to make 89 registrations for 60 substances. 2013: 13 registrations completed, lead registrant for 1 substance. Andreas Tüschen Director Global Regulatory 23 24 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Flint Group Packaging and Narrow Web offers several options of ecological and socially responsible inks for all the segments it serves. Providing the colour that identifies our life Flint Group Packaging & Narrow Web develops inks, coatings and specialty products that combine to create the eye-catching colours and graphics that make consumer products come to life on store shelves, provide security features for brand identity, and are developed with functional properties to enhance food and consumer safety. At Flint Group Packaging and Narrow Web we are fully aware of the potential environmental impact of manufacturing inks and coatings. We work hard to reduce the loss of materials through emissions into the air and we have processes in place, and initiatives on deck, to become more energy efficient. Overall, Flint Group’s intention is to reduce its consumption of fossil fuels and energy through best practices and continuous improvement. Within Flint Group, the majority of the environmental impact comes from electrical and natural gas consumption. Pilot studies found that these two sources stand for more than 95% of GHG (Greenhouse Gas) emissions. Over recent years Flint Group has seen different initiatives amongst our sites in Europe with a focus on using energy and resources more effectively. These, and other new initiatives, continue as new directives are being put into place by the EU parliament. Energy Management Systems (EnMS) can help organisations to achieve better utilisation of (and, in the end, save) energy and minimise the impact on the environment. Some of our German sites have attained certification of ISO 50001, which specifies the requirements for establishing, implementing, maintaining, and improving an Energy Management System. Ultimately, this aims to help organisations continually reduce their energy consumption. As a result of implementing ISO 50001, these German sites have achieved a much better utilisation of energy and significant energy cost savings. Implementing Energy Management Systems takes much planning and coordination – and comes at a cost. However, our experience indicates that this investment will pay off within the first or second year of the certification. Not to mention the positive results on our environment and communities. Further initiatives like the one in Germany are constantly being reviewed for implementation across our global landscape. For Narrow Web packaging and label applications: EkoCure™ – the EkoCure product line continued to grow in 2014 – Flint Group added several new offerings for this product line including metallics, several new coatings, adhesives, shrink whites and a special dense black and super opaque white (EBONY & IVORY). These inks utilise energy-saving LED UV technology, which has an impact on the environment and worker safety and can provide better bottom-line benefits for converters in the long term. For Sheetfed commercial and packaging applications: XCURA™ and XCURA™ LED – the XCURA line of inks are low energy UV curable inks for sheetfed and web offset presses; XCURA LED inks cure using low maintenance and energy efficient LED lamps, while the XCURA inks cure using low energy (LE or HUV) lamp technology. Both are suitable for commercial and non-food packaging applications. For Paper & Board packaging applications: In EMEA... Flint Group proudly announced PremoNova® – free from VOC (volatile organic compounds), excluded TMDD that is classified R52/53, which is harmful to aquatic organisms and may cause longterm adverse effects in the aquatic environment, and also ethoxylates of TMDD. PremoNova is a food packaging compliant ink with regulatory compliance and full traceability. In North America... The PremoCorr™ series of low maintenance inks for the Corrugated Marketplace. This ink series does not require the use of additional amines on press. This enables lower VOCs at our customer sites. For Flexible Packaging applications: In EMEA... PreCoat FMET P13 / PVC TopCoat HSL for aluminium lids and pharmaceutical blister packs and VarioLam PU Whites and Inks – specifically designed to address the Swiss government’s request for better recycling. Further developments were made for high performance flexo inks to allow the usage of anilox rollers with reduced ink transfer – reduced volume, reduced transfer directly linked to a reduction of solvent being evaporated which equals less energy for drying and reduced exhaust air. S.A.F.E.R. Model... Trends S U S T A I N A B I L I T Y. . . - Recyclability - Biodegradability - Compostability - Down-gauging thinner films - Biorenewable content A ESTHETICS... - Improved print fidelity - Expanded designer colour gamut - High strength colours - Special effects F U N C T I O N A L I T Y. . . - Resealable - Improved barrier / freshness protection Products Raw materials in reality… Flint Group Packaging and Narrow Web employs many standard practices in the development of our products. In addition, we utilise the S.A.F.E.R. Model to further ensure our products are safe, of high quality, functional, efficient, and meet regulatory demands. These pillars represent what our customers want from us and what we strive to achieve in product development for ourselves. But this is only data – the actual materials, of course, are assured by the suppliers and checked in many ways by our manufacturing sites and laboratories. Touching on each of these pillars during our ideation phase enables a culture of product leadership and product stewardship. The formulators carefully choose the materials they use depending on the attributes required by the particular application. For example, food packaging selection of raw material is made according to the legal and voluntary requirements to minimise the risk by reducing any chance of exceeding the allowed migration limits into the packaged food. Product integrity and product safety Finished products – are they made correctly? Our product development and operations processes are only one aspect leading to the delivery of high quality products focused on our customers’ needs. Throughout the entire chain, Flint Group Packaging and Narrow Web reviews the integrity of our products – ensuring our products are safe for specific applications. Once a product has been formulated and tested, our various site Operations teams ensure that the manufacturing methods employed comply with the GMP requirements. Particular care is taken to avoid any chance of cross-contamination. Such care is essential to protect the physical integrity of the product as well as avoiding rejection at the quality control stage. - Modified atmosphere packaging - Active packaging - Edible & soluble films - Intelligent packaging - Easy open / close - Multifunctional E F F I C I E N C Y. . . Using the regulatory information collected from our suppliers (including Safety Data Sheets and Technical Data Sheets), we use a detailed, secure database which supplies the information to create Flint Group Safety Data Sheets that comply with the latest CLP/REACH/GHS legislation requirements. The same database enables divisional regulatory officers to check the substance details and ensure that the particular regulation, brand owner demands and other specifications are met – including for Food Packaging Compliance. - Reduction in materials - High speed - Removing secondary processing - Universality R E G U L A T O R Y. . . - Food safety - Government Compliance - Brand Compliance 26 Full traceability of each and every batch of product is possible – and has been successfully tested – down to the particular batch of material used. Delivery and transport packaging, while protecting the finished products, also requires careful planning and the correct packaging materials used. Packaging, including pallets, must not allow any substances to enter the ink products and compromise the product integrity. Check and correct - a test of Integrity… For example – Food Packaging Legislation Flint Group manufactures and sells food packaging compliant inks specifically formulated and tested for use in these sensitive printing applications, which include both flexo and offset. The Legislation for Food Packaging requires, as part of the Good Manufacturing Practice (GMP) legislation, that “Adequate Information” to be passed down the value chain to enable the producer and user of the packaging to issue a Declaration of Compliance for the food packaging. For the ink maker, the confidence in their products that enables the converter to be able to assess the risk and compliance is supported by passing such “information” onto the Converter – without passing on our intellectual property – the formulation in the form of an Enhanced Statement of Composition (ESoC). At all sites, internal audits (including 5 Star audits and external ISO 90001, 14001 and, in some cases, 18001) are rigorously employed to confirm that the correct practices are ongoing thus preserving the base integrity of the processes. We welcome our customers to visit and audit our manufacturing facilities to satisfy their own confidence in Flint Group and its products. The chain of integrity… None of the activities described above can consistently take place and provide the product integrity we achieve without people. From formulators via material suppliers, Operations and Quality assurance supported by the wider Regulatory teams depend on the individual members of staff responsibly employing their own high level of professionalism and showing dependable integrity in their individual roles. Improving productivity, reducing waste... In 2014 Flint Group participated in a special development team focusing further on expanded gamut as REVO for Narrow Web printing was launched by Gidue in the autumn of 2014... In today’s highly competitive industry, there is a massive push for innovation or projects that are set up to further improve the industry’s productivity and to reduce waste, which has an additional environmentally sound benefit. The fact is that both are driving the need to improve the profitability of our industry. But let’s look at productivity: what impact does ink have in today’s Narrow Web world? We know there is a constant drive for shorter runs, more differentiation and enhanced “shelf impact” – the numbers of colourful labels needed are not reduced. In fact – a short survey among converters says that the need for 8-10 colour jobs is increasing and today’s industry average is clearly above six colours minimum. Colourful designs may imply that the wider colour gamut to be used the better, but how to handle this in a controlled and repeatable fashion? The widest colour gamut one can use is obviously to mix stronger colours, with as clean shades as possible. But how practical is it to always have to use special blended / mixed shades? They are, no doubt, a problem for productivity – unless the printer is geared up with a proper ink management / mixing programme, which will easily handle custom-made mixes. But special mixed shades will still have an impact on press productivity because ink / chambers need to be changed and every minute counts. For example, Esko Graphics’ programme, Equinox, is a technology which uses expanded colour gamut repro (or fixed palette). With 7 colours constantly used in the press, printers can run continuously as there is no need to change anilox or ink (doctor) – just the plate cylinder. There will be no need for special colours or colour matching, as the programme uses the seven colour separation pre-press to digitally reproduce up to 90% of PMS colours. The colour matching is done in the repro – and all special shades are created using the seven “fixed”, although, normally, any given shade consists of three out of the seven colours. To print fine line process printing requires a certain skill set as a printer, and will ask a lot from the registration control and pressure control of the print. For example, just 2% extra dot gain (due to “over pressure” of the plate) may result in a shade variation. But the benefits in increased productivity are quite impressive – and if no “proper” ink management system is in place, this will also result in less substrate waste (colour matching on press) as well as cost savings in reduced ink wasted. Tests we have been involved with are proving that, with a UV flexo ink such as, for example, Flexocure® ANCORA™, the use of CMYK + Orange, Green and Violet will reach up to 90% of the Pantone® mixed shades, with a tolerance of Delta E < 2. So colour “variation” is potentially visible – as the human trained eye can detect colour variations at much smaller numbers. We can state that, with seven colour repro, and a good set-up of plate mounting and handling, job changes are much more quickly executed and a wide colour gamut is achieved. This technique also enables printers to bundle multiple jobs to be run simultaneously, offering new possibilities to produce short run work efficiently and very cost-effectively. The vibrant colours possible by using a wider colour gamut will enhance print quality, ensure brand colour consistency and improve shelf appeal. Therefore, it improves value in many ways. It does require the highest colour density achievable today in UV flexo ink using formulations that make it possible to achieve process densities using ultra fine anilox roll cell structures, which allow you to run very fine line screen counts, up to 225 lpi, creating the highest possible print quality. What are the key performance indicators you want to improve when it comes to ink handling? How can we develop an ink technique that helps you improve your productivity? Contact our experts and let’s discuss. Maybe we already have a solution that would help you. We are proud partner of the REVO project – which is a very tangible way to demonstrate the benefits of expanded colour gamut. REVO is a group of suppliers who have joined together to facilitate a complete turnkey package. REVO utilises the functionalities of expanded colour gamut to its optimum, with a state of the art digitalisation of the whole printing process. REVO is a concept that takes flexo narrow web a step further. Agnieszka Zielinska Laboratory Technician Global Colour Centre - Poland 27 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Focus on energy efficiency and high-performance products Flint Group Flexographic Products continually works on improving product efficiency, to reduce waste and lowering our consumption of energy. That’s why processes are reconsidered, special training is organised and the development of new, sustainable products is continually pushed... Energy efficiency In 2013, the Willstaett site of Flint Group established an energy management system and attained the energy management certificate ISO 50001. This certificate is based on the management system model of continuous improvement, which is as also used for other well-known industry standards. To achieve this certificate, a number of energy-saving possibilities were defined and actions initiated to reduce energy consumption. In 2014, these activities were strongly pushed. Comprehensive training programmes were organised at all company levels to ensure improvement of energy efficiency. Via the company’s suggestion programme, every employee in every role and function can contribute to the energy management system. For years 2014 to 2016, energy key performance indicators were fixed for the Willstaett site; due to their high commitment, the 18 members of the energy team managed to achieve these objectives by the end of 2014. The consumption rate of electricity, natural gas, compressed air, hot water and steam per production unit was significantly reduced. Technical as well as organisational measures were crucial for this success. Thus the structured approach to the elimination of unnecessary energy consumption, which is fixed in the ISO 50001, has already paid off and is an important element of environmental protection. 28 With the implementation of several management systems, a constant optimisation of waste management and the development of energy efficient products and processing methods at all German locations of Flint Group Flexographic Products significantly contribute to environmental protection and the climate policy objectives of the German government. High-performance products In close cooperation with customers, Flint Group Flexographic Products’ scientists strive to constantly develop new and innovative products. Sustainability remains an important consideration in this process, ensuring we provide highly efficient products that deliver outstanding quality. In this way the company again introduced a number of printing plates and devices in 2014: The new flexographic printing plate, nyloflex® ACE UP Digital, is specifically designed for use with water-based inks in corrugated preprint and aseptic packaging printing. The plate displays a long run life and stability in printing, resulting in significantly increased efficiency. The low surface tack of the plate ensures a reduced attraction of paper dust and dirt, which enhances the productivity and durability of the plate. All these characteristics help to reduce waste and to improve economic efficiency. The new flexographic printing plate, nyloflex® NEF Digital, has been developed by exposure with the nyloflex® NExT LED technology, for printing of flexible packaging and labels. Major advantages of this plate include short exposure and quick washout times, which enhance productivity of the plate processing. Additional benefits are the excellent process stability as well as the reliability and consistency in plate processing, and in print. The overall environmental outcome is the reduction of energy consumption and waste. Close partnerships with customers, distributors and industry experts... Flexographic Products, long-standing and successful cooperation with distributor Macchingraf SRL At the end of June 2014, the Italian distributor, Macchingraf SRL, visited Willstaett in Baden (Germany) with a group of customers. At this site, Flint Group manufactures photopolymer printing plates as well as packaging inks. The visiting programme included a factory tour and presentations about the latest products and current technology trends in the packaging market. The initiative to drive production efficiencies in plate processing to the next level was well received and deemed to be one of the most important topics. With the nyloflex® APP equipment, Flint Group has developed a fully automated premium processing line with outstanding productivity and consistency, including a washer, dryer and light finisher. The efficient automation and advanced level of standardisation leads to a considerably improved plate and print quality. In terms of standardisation, automation is a big step forward, which enables trade shops and printers to minimise process tolerances. At the same time, mistakes can be reduced with the result of a lower complaint rate and reduced costs. The user-friendly handling enables easy control of all operations. The visitors were also highly interested in Flint Group’s nyloflex® NExT exposure technology, which utilises a high intensity UV-A LED light source to conduct rapid crosslinking of the photopolymer surface before oxygen inhibition can occur. The high UV-A output results in a flat top dot structure and a virtual 1:1 image reproduction from the digital file to the finished plate. In flexible packaging, printing plates exposed with this technology allow excellent ink transfer, particularly in solids. In corrugated printing, fluting will considerably be reduced as the LED exposure allows a better control of the relief profile. Macchingraf SRL has been successfully distributing Flint Group products since the 1960s, and were awarded the honour of “distributor of the year” in 2003 and 2012. “I am very pleased that Flint Group has Macchingraf as a partner in Italy,” says Eberhard Huter, Vice President Sales EMEA at Flint Group Flexographic Products. “The professionalism of its management and teams, together with their cutting-edge approaches in technical and commercial service as well as marketing, ensure our sustainable market success long-term.” Francesco Sangiorgi, Sales Director and Flexo Business Driver of Macchingraf, stated: “Our Italian customers were very pleased with the hospitality received from Flint Group and absolutely impressed by the innovative technological solutions presented in a very concrete and direct manner. Once again, they confirmed their confidence in Flint Group as a partner for repro houses and printers with the aim of standing out in the market for quality and productivity.” Pad printing – innovation group meet... At the end of April 2014, around a dozen attendees came together in Stuttgart, Germany, for the second meeting of the working group Innovation Pad Printing. The event was hosted by Flint Group, one of the founding members of this community of interests. The target of the work group, which was newly established in October 2013, is to facilitate better networking of experts comprising of diverse suppliers, institutes and research organisations. The initiative will provide customers with a platform from which they can receive support with questions as well as solutions to problems - with members meeting on a regular basis. Additionally, participants will be able to use this platform as a means to optimise their processes, thus reduce costs, and to conduct training programmes. Innovation will be promoted and better utilised. And last, but not least, a website will be created with links to the involved organisations and provides the opportunity for visitors to ask questions or make suggestions. The spokesperson for the working group Innovation Pad Printing is Juergen Veser, Technical Service, Flint Group Flexographic Products. He will be supported by Peter Gailing, Sieb- und Tampondruck Gailing, and Ralf Ruebenach, Marabu. 29 Flint Group Flexographic Products’ distributor symposium – Porsche Museum, Stuttgart, December 2014 About 80 visitors came to Flint Group Flexographic Products’ distributor symposium, which took place in accordance with the motto “Passion for Technology” on 3rd and 4th December 2014, in Stuttgart. Flexographic Products launches innovative new app INFO*FLEX 2014 witnessed Flint Group Flexographic Products launch its first FlexoToolboxTM App for iPhone, iPad and Android devices, which is now commercially available to the global market. This interactive collection of tools incorporates many different functions for simplifying and standardising flexo prepress, plate making and process control. The app can assist platemakers with tasks ranging from the calculation of plate distortion to the control of processing parameters, such as solvent balance or monitoring UVA intensity, and the determination of sleeve diameters. With these and a myriad of other helpful functions and tips at the push of a button, a considerable simplification of work is provided to the customer. Thus, Flint Group has created a unique tool for anyone working in prepress or press-side functions in the printing industry. The FlexoToolboxTM App can be obtained free of charge in the Apple App Store and in the Google Play Store. 30 Day 1 of the conference was dedicated to automation. During a live demo in the Flint Group technology centre, participants could catch up on the benefits of the new nyloflex® Automated Plate Processor (APP). This fully automated processing line with premium equipment, as well as outstanding productivity and consistency, includes a washer, dryer and light finisher. The efficient automation and advanced level of standardisation leads to a significant reduction of the total processing time of more than 35%, compared with stand-alone devices. In terms of standardisation, automation is a big step forward, which enables the minimisation of process tolerances. At the same time, mistakes can be reduced with the result of a lower complaint rate and reduced costs. The user-friendly handling enables an easy control of all operations. For the presentations of the second day, meeting rooms in the exclusive Porsche Museum in Stuttgart were used, providing a fantastic location that truly reflected Flint Group’s sophisticated motto. Aryan Moelker, the new President of Flint Group Flexographic Products, took the opportunity to introduce himself to the distributors and to give an overview on the latest developments in the company. Also, great interest was raised with the presentation from Markus Bauschulte, Technical Sales Director, Windmoeller & Hoelscher KG, on global market trends and technologies in flexo and gravure printing, as well as a presentation from Bernd Sanning, Head of Service & Innovation at Flexicon AG, on print qualification programmes of brand owners. In addition, experts from Flint Group Flexographic Products informed the audience on new developments with rotec® sleeves and adapters, the FlexoToolboxTM app and the recently introduced partner platform on the internet site. An update on flat top dot technologies and the nyloflex® NExT technology for corrugated printed was given. This exposure technology utilises a high intensity UV-A LED light source to conduct rapid crosslinking of the photopolymer surface before oxygen inhibition can occur, resulting in a virtual 1:1 image reproduction from the digital file to the finished plate. In flexible packaging, printing plates exposed with this technology allow excellent ink transfer, particularly in solids. Especially in corrugated printing, fluting will considerably be reduced. Finally, visitors were also very interested in the lecture on the nyloflex® NEF Digital printing plate, which has been specifically designed for the efficient creation of flat top dots and the excellent reproduction of surface screenings. The printing plate, which was introduced in August 2014, shows an outstanding quality in the highlight areas. It allows for a reduced bump-up, hence increasing the image contrast. The ink lay-down can be significantly improved and a high solid ink density can be achieved when surface screens are applied. The result is a brilliant print performance on film, foil and coated paper substrates. Compared with conventional plates, exposure times are considerably shorter. F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Continually improving the way we work... Flint Group’s Print Media business is formed by the powerful combination of inks, printing blankets, pressroom chemicals, pigments and, most of all, the people who bring them all together for our customers. How does Flint Group balance the products we make with our focus on safety, society, the economy and the environment? How do we manufacture products, which do require chemicals even as we maximise use of naturally renewable resources, while maintaining a strong, sustainable business that customers depend on and trust? The answer: people. Print Media’s employees envision and realise products and programmes that address these complex considerations. People Flint Group employees are charged with continually improving the way we work and the products that result from this process. Over and over, they rise above expectations. From a sustainability perspective, their focus can be grouped into two categories: First are the safety, health and environmental programmes and processes by which we manage our business. Flint Group is committed to meeting and/or exceeding all local, regional, national and international regulatory requirements related to the environment, and to the health and safety of our employees, our customers who use our products, and consumers. The second category encompasses products that are environmentally compliant and competitively advantageous, as well as the service and support that back each product. We also provide best practice guidance about the optimal use of printing consumables to help customers minimise waste and maximise their operational sustainability efforts. The other end of the supply chain is equally important. Our employees ensure that every raw material used by Flint Group undergoes a review process based on recognised health and safety standards. Our teams design product formulas that utilise renewable resources where technically feasible. The search for ways to incorporate more renewable materials into our products is an ongoing process. Industry Recognition Behind the innovations and improvements within Flint Group are teams of scientists, engineers, product managers, sales and technical personnel, and many others. Often their efforts have far-reaching impact, and, at times, industry accolades make this impact known. In 2014, the spotlight shone on Kevin Kingman, Technical Director Heatset Inks in the United States. Antonio Veértiz Silva Production Operative Transfer Media - Mexico Supporting Employees to Support Communities Shortly after participating in Flint Group’s Phoenix global leadership training programme (see Building our Organisation pg. 36), Anila Ruseti, Global Treasurer based in the USA, had an idea: put her newly learned leadership tools into action to affect change. Her focus, which eventually became known as project CONNECT, began at her Plymouth, Michigan, work site. honoured Kevin with the 2014 Technical Achievement Award. Kevin’s efforts have resulted in, among other success stories, five patents, the launch of Flint Group’s versatile Arroweb™ Ink System, and the AgriWeb product line that maximises the use of renewable materials in a heatset ink. Anila assembled and led a steering committee of employees with diverse strengths and interests. The group envisioned numerous workplace activities that encompass wellness, charitable giving and much more. The team surveyed employees, assessed company needs and combined the results to plan a year of rewarding, healthy, educational and interactive events. Everyone has a hand in CONNECT’s success. Both site management and its employees dedicate resources to bringing these activities to fruition. The events are often as fun as they are beneficial, building a stronger community within Flint Group while helping the community beyond. The future With the CONNECT steering committee, Anila designed a structure for project CONNECT that is both formal and flexible. This will keep the organisation sustainable long-term even while employees, on a purely voluntary basis, assume year-long leadership roles and coordinate activities based on interests and needs that arise. Flint Group’s US Connect team Anila Ruseti pictured bottom row, third from right 32 Though based in North America, Kevin’s impact is felt worldwide as he travels the globe to share best practices and provide formulary, technical and product guidance to customers. About thirty years ago, Kevin Kingman worked during the day to support his college education, which he pursued at night. His degree: chemistry. His employer: Flint Group. While Kevin finished his studies, his career at Flint Group took off. Products Throughout his years with Flint Group, Kevin has done a great deal for the company and the industry. That was underscored by the National Association of Printing Ink Manufacturers’ technical arm, NPIRI, which Pressroom Chemicals In the continued spirit of developing products that support a sustainable planet without sacrificing performance, 2014 ushered in a variety of newtechnology products, including the examples described below. Washes Flint Group North America launched Varn® Ecolo-Wash™ 401 press wash for heatset and coldset web printers. This ultra-low-VOC press wash was designed without aromatic or halogen-based solvents. It meets printers’ strict standards while complying with the most stringent environmental regulations. The product also limits waste by lowering usage amounts compared to many products on the market. With less than 100 grams of VOCs per litre, Varn Ecolo-Wash 401 is a powerful product for the pressroom and the planet. In addition, Flint Group expanded the global reach of Varn® Enviroflex™ System for anilox roller cleaning. All Enviroflex cleaners offer a mild-alkaline pH, and options include cleaners with less than 100 grams per litre VOCs. The Enviroflex System cleaners virtually eliminate the need for second-pass printing and soda blasting reducing cleaning times by up to 40%. All this makes life easier for printers and decreases materials added to the waste stream during the printing process. In fact, minimising waste is an ongoing focus for Flint Group’s Transfer Media business. In 2014, Asheville, North Carolina, USA, continued their resourceful solution to one of sleeve manufacturing’s most high-volume waste items: rubber scrap. First, some background: as rubber tubes for sleeves are trimmed to size, rubber waste is created. As a global leader of printing sleeves, Flint Group manufactures and trims a great deal of tubes. The waste can add up. Meanwhile, in an entirely separate production area, employees use rubber cement – a key component of transfer media manufacturing that is typically manufactured by other companies. Thanks to Asheville’s sustainability team, that has changed. Asheville now uses the rubber scraps to make rubber cement. Doing so makes great use of our existing resources and keeps rubber scraps out of the landfill. Programmes Silicones Flint Group launched a new type of silicone technology in Europe that drastically reduces the amount of silicone oil required to offer the performance characteristics that our customers expect. The new silicone not only increases mileage and provides other important performance benefits, it also reduces waste by 20% versus typical silicone products on the market. Fountain Solutions Also in Europe, Flint Group launched Varn® AF 4000 to comply with the most stringent environmental standards. AF 4000 fount is Fogra-certified and has earned OEM approval from all major press manufacturers. It has also received accreditation from independent testing institute, ISEGA, confirms that printing can safely and confidently use the product when printing food packaging. The fount produces less than 5% VOCs of vapour pressure by European definition. Also, importantly for the environment and for safer workplaces, the product dramatically reduces the need for alcohol, in many cases eliminating it completely. Suitable for use with all plates, inks and dampening systems, Varn® AF 4000 limits waste by enabling quick start-ups and reducing ink consumption. Flint Group believes that change occurs in small steps and large leaps. Throughout Print Media and the company, a combination of programmes local and international, employee-driven and management-driven, ensures we leave no stone unturned when it comes to benefiting our business, our environment and our employees. A couple of examples follow: Containers with Lower Carbon Footprint In 2014, Flint Group North America saved over 4,000 tons of greenhouse gas emissions with one key move: buying high-quality, reconditioned steel containers. This isn’t new to the company. We have been purchasing multiuse containers for years, with our greenhouse gas emissions savings increasing incrementally each year. Since 2012, this container programme has saved almost 12,000 tons of greenhouse gas emissions. Cleaning, reconditioning and reusing containers consumes less energy than producing new ones. In addition, retired containers are recycled, decreasing the amount of landfill and the overall environmental impact of container manufacturing. The calibre of the containers we buy also ensures that the quality and delivery of our products are not sacrificed. Flint Group, our customers and the environment all benefit. Blankets & Sleeves Our Commitment Scientists and engineers in our Transfer Media Division refine and improve our blankets and sleeves to yield operational advantages for customers as well as environmentally friendly benefits such as reduced waste. In 2014, such advances included dayGraphica 5700 and dayGraphica 4600 for heatset printers and dayGraphica 4100 UV Red for sheetfed and web offset printers. As a global supplier of inks, blankets, pressroom chemicals and pigments, Print Media is committed to providing products that keep our customers competitive. And, as inhabitants of this planet, we are committed to good stewardship of our resources for today… and for future generations. 33 FLIN G TR OGURPO U SPU SSTUASI N LB I TIYL I R 20 F LT I N T AAIBNI A T YE PROERPTO R T 1240 1 5 4 Social: 34 CONTENTS: 36. Building our organisation – Flint Group is committed to the development and valorisation of employees’ knowledge and capabilities 39. Safety – Providing the knowledge, competence and desire to work safely 42. Social Sustainability – Using employee skills and expertise to build team spirit and creativity within our own organisation and the world around us... 46. Supply chain – Building a clear picture of the sustainability impact remains fundamental to maintaining a profitable sustainable business F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Building our organisation... Our people are essential factor to the long-term success of our organisation. Responsible people Integrity policies and practices are therefore a fundamental part of our culture and all we do. We operate & Compliance ethically with respect for our employees and their interests and rights, with the intent to enable all of them to perform to their full potential. We are strongly convinced that the interests of the company and its employees must always walk together. In order to achieve our ambitious goals, we need to have consistent people processes and a clear strategy for managing our employees effectively. 36 Flint Group Mexico Inks team Our people strategy is based on four elements – all fully driven by the Flint Group strategy and our business unit strategies around the world: A. Leadership B. Team and Individual Performance - Drive increasingly high standards of integrity and compliance - Strengthening of a performance-oriented and knowledge-sharing culture - Developing leadership competence and confidence with crossfunctional and international perspectives - Continuous improvement in safety, quality, customer service, productivity and cost - Ensure we have the right people in the right roles at the right time – with the right mix of internal succession and key hires - Effective change management – motivate the “stayers” by providing challenging development opportunities - Systematic capability and talent review process – robust delivery of actions - Communication channels optimised – with consistency and authenticity – and alignment to strategy and values C. Employee Engagement - Opportunities to develop skills, capabilities, talents and experiences - Equipping our people with required tools, skills and knowledge, effective performance reviews with aligned goals and regular feedback between manager and employee “how is it going?” discussions - Career discussions, mentoring, coaching and development plans, consistent with the business needs - Variable pay plans with the “right” level of line of sight and targets / payments A. Leadership Capability and Talent Review Process It is a clear “win - win” for the company and its people if employees can be encouraged to grow and develop to their maximum capability. We have implemented a formal Capability and Talent Review (CTR) process. The key objectives in this process are to identify: - The organisation design follows strategy and is fit for purpose The capability of our people Opportunities for growth in these capabilities Succession planning options Actions required – training, development, hiring, etc. We utilise this CTR process mainly at the top three levels of the organisation together with emerging talent – and will use this further as we learn from experience. The manager and selected employees who have the desire and personal drive to grow and develop sit together and build an understanding of current capabilities and gaps and future aspirations. From that - Valuing team and individual contribution with effective recognition programmes - Professional management of salary, bonus and benefits D. Effective organisations - Driven by segment and functional strategies - Clarity of roles and responsibilities - Pragmatic utilisation of skills and knowledge - Recruitment of new talents with diverse backgrounds understanding, assisted by the use of Flint Group Leadership competencies, the manager and the employee build a “Talent on a Page” (TOAP) document. This TOAP, together with a succession plan for key roles, provides important building blocks for the CTR and resulting action plan. These plans are reviewed with the CEO and the VP Global Human Resources and Communications – follow-up is completed at the very least on an annual basis. Flint Group is committed to the development and valorisation of employees’ knowledge and capabilities. In a world characterised by fast and continuous changes, all organisations are becoming subject to increasing demands and challenges. Valuing people with investment in training – especially related to integrity and compliance, safety improvement, leadership development, negotiating skills and high performing teams – is a strategic factor to attract and retain the best employees and ensure the achievement of business objectives and change management. The Phoenix leadership programme has now included over 100 managers who have completed or are participating in the programme. We will continue to invest in training and development over the coming years in order to strengthen the company’s competitive advantage. We also have a world-class e-learning platform, whereby employees can Flint Group’s Phoenix training programme continues to soar... The roll out of Flint Group’s Phoenix programme – designed to deliver the future leaders of the company – continued to gather momentum in 2014 with two further programmes running throughout the year. Building on the success of previous courses, Flint Group initiated two new classes in 2014 with teams from Europe and the Americas joining forces to enrol on the development course. Phoenix is a four-module series designed to build leadership capability aligned with Flint Group’s Critical Success Factors. Participants for this programme are selected by nominations made by Senior Leadership and approved by the Executive Management Team (EMT). All modules are designed to be facilitated by internationally recognised global trainers as well as by our internal trainers. The programme requires a long-term commitment from employees and features workshops of varying lengths, project work, coaching, mentoring, team projects and project presentations over a period of 12–18 months. 37 sign up for a broad curriculum of around 300 courses, 500 full-length books and 300 short (3 to 10 minute) videos. These courses range from topics as diverse as “Financials for the non-financial managers” to project management, computer software training and leadership effectiveness. This training is provided at no cost to our people and we encourage all employees to pick training relevant to their job and interests. Some of the course offerings are in eight languages in addition to English and we want to further broaden these language offerings in future, subject to demand. B. Team and Individual Performance With around 140 locations in over 40 countries employing around 6,800 people in very varied roles, it is fundamental to the continuing success of Flint Group that we have robust but simple-to-use processes to ensure that all teams and individuals have clear goals aligned to strategy and to our critical success factors, Balanced Scorecard and vital actions, which help us all prioritise what we do every day. Effective alignment of teams and individuals means competitive advantage in a global company of the size and complexity of Flint Group. Our tremendous “can do” culture, shaped by strategy and clarity of goals and priorities, contributes massively to Flint being a leading business in our chosen markets. communications through “Town Hall” meetings, Visions newsletter, divisional and regional newsletters, CEO Comment and regular briefings on performance and key issues. With change in our business now almost a daily event, the need for regular open and authentic communication is more important than ever in building an environment where people are proud to work for Flint Group. Employee surveys are an opportunity for the employees to play an active role in shaping the future. We have started measuring employee engagement, confidence and job satisfaction through structured, confidential surveys in LATAM, Australia / New Zealand, Packaging North America, Sweden and the Netherlands – and will continue to plan to do more of this measurement with resulting actions going forward. Whilst the overall scoring of engagement in these surveys was reasonable, we know we have a great deal of work to do to build engagement to world-class levels, which is not surprising given the scale of continuous change the business has been through over the last three years and well before that. We aim to celebrate success more often and to continue to improve the ways in which we recognise the contribution of teams and individuals. D. Building Effective Organisations The Performance Log is a simple process that focuses on what needs to be done and how these actions should be achieved. Integrity, complete commitment to safety improvement, customer responsiveness, fairness and transparency are all hallmarks of high quality leadership behaviours that we insist on – so the “how” things get done is important. The Performance Log process applies to all our managers and professional staff – and we encourage appropriate performance management processes to apply through our operations and supply chain organisations globally. We believe in regular “how is it going?” conversations between managers and their people – and the Performance Log facilitates this. Together with our performance management system, we offer 360° feedback as an effective tool to improve participants’ awareness of their leadership behaviour through broad insight from managers, peers / colleagues, co-workers and customers. This feedback offers a chance of reflection on strengths and development needs and therefore facilitates personal growth. C. Employee Engagement Left: Tomasz Samborski 38 Right: Radosław Zasiadczyk Warehouse Operatives, Lodz - Poland We aim to create an environment where our people are motivated to give their best and enjoy meeting the opportunities and challenges posed by customers, global and regional economies, trading conditions in the industries we serve, competitive activity, the need to keep mind on task and work safely…and so on. The immediate line manager or supervisor has a key role in the creation of a productive, high performing team environment – assisted by the company leadership with regular In order to improve value for our customers, shareholders and employees, organisational design and company culture must follow strategy, and our strategy must be driven by our business plans for the markets we choose to serve and the complex world we operate in together with our customers, investors, suppliers and competitors. Organising our routes to market efficiently, building our functional expertise and striking the right balance between local, regional and global roles is challenging. What is crucial is for senior leadership to provide clarity on roles and responsibilities to avoid confusion, misalignment with strategy and wasted time, effort and resources. Overall Our people are vital to the implementation of our business strategy and, at Flint Group make a huge contribution to our success. The commitment of all employees is crucial for us and we want our people to feel valued, engaged, proud and respected. It is the responsibility of leaders at all levels in Flint Group to inspire, serve as role models and shape the culture and the right environment for those who want work to be more than just a job – to be an experience that is motivational, challenging and gives the satisfaction of working in a great team. Russell Taylor Senior Vice President, Human Resources, Communication & Integrity & Compliance F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Providing providing the knowledge competence and desire to work safely... Our safety vision is to create an injury- and illness-free workplace where everyone goes home safe and healthy after each day’s work. At Flint Group, we believe that “no job is worth getting hurt for”. Flint Group’s policies, standards, programmes and targets we set are important to our safety success. While these move our performance forward, our journey towards a zero-injury culture is strongest when everyone knows that they make a difference and when all employees and contractors have the knowledge, competence and desire to work safely. Flint Group’s safety strategy takes an integrated approach to building a zero-injury culture, and it all begins with leadership. demonstrating, encouraging and rewarding safe, desired behaviours. It is important to ensure that leaders are well trained and highly capable, and that they clearly understand their role. Flint Group meetings, from Executive Management Team meetings through to shift change meetings at operations, all begin with a Safety Review. There is an expectation at Flint Group that leaders not only talk about safety but demonstrate their commitment by their actions. When our leaders take visible ownership for safety, it sets the tone for our safety culture. It establishes the level of risk that will be accepted and it encourages employees and contractors to participate in all aspects of safety management. 2 Report: All incidents are reported, thoroughly investigated and reviewed for lessons learned. We need to ensure that the culture at all of our operations is one that encourages the reporting of incidents, including near misses and other leading safety indicators. Flint Group utilises a consistent approach to investigate the root of incidents. Our safety management systems help us integrate our Safety, Health and Environment Management areas. The better we do this, the more successful we will be at making our performance sustainable, both in terms of personal injury elimination and increased competence in process safety management. 3 Involve: Employees and contractors are actively involved in all areas of safety management. They see and manage the risks in the workplace each day. While safety management must be led from the top, all Flint Group employees and contractors must be accountable and empowered to ensure safety success. Our approach to achieving a zero-injury culture has five core focus areas: 4 Manage: Process safety risk management and assessing risks within our processes is an ongoing assessment used to understand the risks our employees and contactors are exposed to daily. All employees 1 Lead: Strong leadership affects all elements of safety performance by Adrian Fradley Wet Batch Maker - Chemical Production Facility Manchester, UK 39 Occupational Safety 2014 Flint Group Safety Pyramid Total Incidence Rate Flint Group measures progress towards our goal of zero injuries with a variety of indicators, including our total injury rate (TIR). Our TIR calculations include injury data for all employees and all on-site contractors. Flint Group’s TIR is significantly lower than most printing ink industry averages. Total Recordable Injuries - 64 2.50 First Aid Cases - 875 Near Misses - 3,783 2.00 Corrective Actions Completed - 14,273 Flint Group TIR Rate (Total Incidence Rate) Safety Related Activities - 236,938 1.50 TIR = 200,000 X Number of Recordable Injuries / Hours Worked (Where 200,000 = 100 employees working 2,000 hours per year) 2007 2008 2009 2010 2011 2012 2013 2014 2.07 1.70 1.38 1.42 0.93 0.74 0.72 1.00 0.82 Safety Levels 0.50 Global Rolling TIR 2014 Flint Group Safety Pyramid 0.00 The Safety Pyramid represents safety activities employees are actively involved with. The stronger the base of the pyramid, the fewer incidents we’ll have. Over time, Flint Group has had a notable increase in “Positive Safety Interactions”, which include behavioural observations, safety inspections, hazard reviews, risk assessments, safety meetings, incident investigations and other worthwhile safety activities completed by all employees. In any industry, unsafe behaviours account for many of the workplace incidents. In 2009, Flint Group introduced Safe Start™ as a core training element focused on safety awareness and behaviours. This, combined with improved incident investigations and root cause analyses, has driven the injury rate lower over the last few years. Still, safety is a journey, not a destination. We continually assess risks and update our training to maintain awareness and safe behaviours and continue to build a safety culture –“Zero by Choice, not by Chance”. I.B. Safety Says... •Safety is our goal...what’s yours? •Did you work safely today...or were you only lucky? •Don’t leave safety at work, remember to take it home! •Safety doesn’t happen by accident! •Remember to lift with your legs, not your back! •A safe act today could prevent pain tomorrow! •Reporting a near miss helps prevent a real accident! 40 2007 2008 2009 2010 are expected to participate in safety management at Flint Group by identifying and reducing risks within each facility. 5 Comply: Flint Group ensures compliance to our own standards, as well as global and regional laws and regulations. Flint Group’s teams maintain a thorough awareness of compliance needs, putting training and systems in place so each site can work towards and maintain full compliance. Flint Group Global Injury Reduction Flint Group measures various process risks throughout the year and we are able to identify and group into specific risk clusters. One such cluster identified forklift activities as an area for improvement. As a direct result, in 2014 we launched the Pedestrian Awareness Programme in all Flint Group locations. Across the globe, pedestrians walking and working inside manufacturing locations began wearing highly visible vests, hats, arm bands and other high-visibility items. In addition, the programme required site management to conduct pedestrian vs. forklift risk assessments and implement formal pedestrian and forklift traffic plans. The Future: Integrity & Compliance Boosts Flint Group’s Safety, Health & Environmental (SHE) Efforts In 2014, Flint Group strengthened its Integrity and Compliance (I&C) programme. Integrity and compliance affect every aspect of our business, and safety is no exception. As one of the workstreams for the I&C programme, the following project scopes were created and will be implemented throughout 2015: Permits & Licences: - Third party expert audit of all Flint Group locations on environmental and operational permits & licenses. 2011 2012 2013 2014 - Documentation of all facility permits and licences. The design of the database will allow automatic renewal e-mail notification prior to the expiration of dates and alerts for those that have expired. SHE Regulatory & Compliance: - 3rd party expert to conduct a complex safety, health & environmental audit for compliance with regulatory and regional legislation for manufacturing and administration facilities. Environmental Phase I: - 3rd party expert to conduct an Environmental Phase I assessment for all current Flint Group facilities and / or properties in order to confirm or identify potential Recognised Environmental Concerns (RECs). SHE Management System: - Flint Group is committed to developing a Safety, Health & Environmental Management System that is compliant with OECD Guidelines for Multinational Enterprises, and constructed such that it will also be compliant with ISO 14001 (Environmental Management) and OHSAS 18001 (Safety & Health Management) standards. Carrying out a base line assessment of all manufacturing facilities within a 12-month period is an ambitious plan, but it is well worth the effort. The full process will result in a new SHE Management System, providing better-thanever tools for all of our global locations. Global systems. Valuable insights. Improvements and enhancements – each effort gets us closer to a zero-injury workplace. We are proud of our accomplishments this far, but we are even more eager to continue to improve year after year. Nothing we do is worth getting hurt for... “Nothing we do is worth getting hurt for” is Flint Group’s highest maxim with regard to the employee’s safety. Safety must come first, always. A safe and injury-free workplace has to be offered to everyone. The company does a lot to commit to this self-imposed obligation. There are, for instance, the SHE managers and safety officers at every Flint Group location worldwide who have the responsibility to implement the company’s Safety, Health and Environmental Management System, and to take care of a proper risk and safety strategy. On the basis of these courses, participants are trained and motivated with focus on their special tasks in the company. The wide-ranging training contents are specifically designed to Flint Group’s requirements. Spontaneous discussions broaden the participants’ horizons and enable a bigger picture of the operational situation. A good example of the relevance of safety is the annual meeting of the German SHE managers and safety officers. Since 2005, they have met once a year in the small Palatine town, Maikammer, where the German Employer’s Liability Insurance Association runs a training centre. Each year, the 25 safety representatives go to a three-day retreat for training and to exchange ideas. These seminars are organised by the SHE department of Flint Group in Willstaett in close cooperation with counterparts of the Employer’s Liability Insurance Association. - The psychological backgrounds, influencing safe or unsafe behaviour, of employees. Latin America: Safety Training for Everyone - A workshop, demonstrating the dangers when dealing with flammable substances and the necessary rules. Safety by choice, not by chance. This is the crux of what makes safe behaviours sustainable, and it requires that employees be actively engaged in the safety process. Employees’ involvement creates an empowered and accountable culture, not to mention a culture where safety observations are encouraged by management. The seminars cover a broad range of areas, for example - The key role of risk assessments, with main emphasis on the analysis of specific situations. With these professional training sessions, the safety experts are provided with the necessary prerequisites to perform an excellent job and the foundation upon which to steadily improve Flint Group’s precautions for a safer working environment. Encouraging employees to be proactive towards their health... The annual Health & Wellness Fair at Arden, North Carolina in the US is held each year in the month of October. All employees and family members, regardless of whether they are covered by Flint Group’s health benefits, are eligible for free health screenings. The event is held on-site from 7:00 am to 5:00 pm allowing employees on all three shifts to attend. During the past few years we have held a “colouring contest” for employees’ children to help promote the fair, with a panel of judges selecting first, second and third place winners. Around 200–250 individuals visit the fair each year (including family members). By conducting an on-site Health & Wellness Fair, our aim is to: - Provide an educational vehicle for promotion of good health practices - Encourage employees to be proactive towards their health - Enhance employee morale and promote participation The health fair is also a great way to offer employees information and activities that help to educate them and offer suggestions for healthier living through a variety of health topics. Health fairs can also offer valuable health screenings to detect health issues early, before they become serious. By holding wellness-related activities within work hours shows that management has a commitment to supporting the health and wellbeing of our employees Latin America... Our teams in Latin America have also been very active in promoting employee wellbeing – operating weeklong SHE-related training covering the three pillars of sustainability (economic, social and environmental). During these training weeks employees were given training and presentations on a diverse range of subjects including, healthy eating, financial planning, recycling, keep-fit and aerobics. Employees in Chile and Peru were also invited to take part in influenza vaccinations organised by the company. With that culture as her backdrop, Gladys Vergara, Executive Secretary and 12-year employee at Flint Group’s Santiago, Chile facility, did not hesitate to voice a suggestion: augment the site’s existing fire-safety training–which was already fully compliant with local regulations–with interactive fire-extinguisher training for each and every employee of the site. Replete with small, controlled fires extinguished by the employees, always under direct supervision, the training taught each team member how to hold and manoeuvre fire extinguishers safely and correctly. Like so many safety lessons learned, fire extinguisher training will make employees safer at work and at home. The training will now be a yearly event for everyone at the site. Employees like Ms Vergara, supported by management who listen and incorporate new ideas, help make Flint Group safe by choice, not by chance. 41 Social sustainability and community awareness... F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 At Flint Group we aim to create an environment where our people and teams are motivated to India: World Environment Day, one tree at a time give their best and enjoy meeting the opportunities and challenges posed by the world around The United Nations launched “World Environment Day” in 1972 to encourage awareness of environmental challenges and ways to respond to them. Observed on 5th June each year, the day is observed in more than 100 countries. us. We are committed to the development of teams and individuals and firmly believe that we can only grow as an organisation by allowing and enabling our people and teams to grow with us. As such, employees are encouraged to not only use their skills and expertise to build team spirit and creativity within our own organisation but also the world beyond it... US: Flint Group donates $25,000 to the “Hole in the Wall Gang” children’s charity... towards the children’s camp to support their various programmes throughout the year and to ensure that the camp runs smoothly. The Hole in the Wall Gang Camp was founded in 1988 by the late movie star Paul Newman with one simple premise in mind, that every child, no matter their illness, could experience the transformational spirit and friendships that go hand in hand with camp. US: Flint Group and its employees combine to donate nearly $25,000 to United Way charity The Hole in the Wall Gang Camp is dedicated to providing a “different kind of healing” to seriously ill children and their families throughout the Northeast of the US, free of charge. It’s a community that celebrates the fun, friendship and spirit of childhood. The foundation’s goal is to ensure that every child with a serious medical condition has the chance to experience the world of possibilities that camp has to offer. Through the generosity of others, The Hole in the Wall Gang Camp community provides this unique healing experience to kids in need and their families, including those who may not be able to come to Camp. Following on from last year, Flint Group once again donated $25,000 For over 20 years Flint Group and its employees have supported the work of the United Way, making a positive improvement to countless lives and communities. 2014 was no exception with Flint Group employees donating close to US$15,000 to this charitable organisation: A figure supplemented by a US$10,000 company donation ensuring that Flint Group and its generous employees contributed close to US$25,000 in 2014 to assist United Way in the great work they do. United Way is the world’s largest privately funded non-profit. With 2.6 million volunteers and 9.6 million donors around the world, United Way raises more than US$5 billion every year to create community solutions that improve life for everyone, impacting the lives of up to 50 million people every year. One such celebration occurred at Flint Group’s Hosur, India, site in 2014, encouraged by the local Operations Manager, A Ramkumar. As part of the day’s events, employees planted a tree near the facility and committed to adopting practices that support a healthy environment for the planet and the workplace. For example, employees embraced a “go-green” approach to the way they manage resources each day. That includes everything from reducing paper consumption, reducing energy by turning off lights and monitors not in use, and taking other steps large and small that can positively impact our planet. A Sreenivas Goud, Hosur Site Manager, notes: “A year has passed and we remain committed” – to both the small, personal resolutions as well as bigger efforts. A few of the site’s environmental improvements completed since World Environment Day include converting traditional interior and exterior mercury lamps to LED lighting and adding variable frequency drives to ventilator systems, mixers and other equipment. Back to the tree: planting is not completely new to Hosur. Fruit trees thrive in a well-maintained garden area. When the fruit is ready to enjoy, employees share the harvest. 43 Flint Group provides disaster relief in Serbia In April 2014, the coastal Chilean city of Valparaíso was devastated by a huge fire that swept through the hills. The flames started in the La Pólvora neighbourhood, and quickly spread to other surrounding areas due to the strong winds. Thousands of homes were destroyed, 12,500 people left homeless, 15 were killed and more than 500 people were injured. UK: The Italian Job... Not to be confused with the popular film…this “Italian Job” is a car rally in aid of children’s charities and is supported annually by a retired employee of Flint Group. In 1990, even before the movie remake was made, The Italian Job Mini Car Rally was launched, giving participants the chance of an adventure holiday on four wheels, as well as raising money for a children’s charity. The money raised goes to nominated children’s projects. In 2014 they supported Variety, the Children’s Charity, which provides help to sick, disabled and disadvantaged children to reach their full potential by purchasing wheelchairs and holiday coaches. It is considered to be the worst urban fire in Chile’s history. Many of those whose houses were destroyed were in lower socio-economic classes and did not have insurance. Flooding affected towns and villages across the whole of Serbia Thanks to the enthusiastic support and commitment of the rally participants over the 21 rallies so far, more than €2.2 million has been raised for young people in the UK. Former employee Geoff Giles is one such participant and, after taking early retirement 5 years ago, he has driven his mini from the UK to Italy in the rally 5 times in total. This year he will raise close to €2,000 in aid of the charity. His total journey from start to finish is around 3,500 km and will take two weeks to complete. Flint Group played its part in supporting the charity work by sponsoring Geoff with a cheque for €350. Our hope and plan is to do the same in 2015 – and encourage other Flint Group facilities to also participate in this great cause. For more information, visit www.italianjob.com As news of the tragedy spread to the people of Chile, the country rallied together to donate items and to volunteer in the clean-up. Some employees of one of Flint Group Chile’s Narrow Web clients lived in the affected hills with their families, and had their homes ravaged by the fires, losing everything. They reached out for help, and one of the items that they requested that they really needed were calefonts – heaters that provide hot water for the household. Flint Group Chile purchased three new calefonts to donate to the families, knowing that they were really needed and much appreciated by those affected. Since then, the houses have all been completely re-constructed and we are happy to report that the families are doing well. Impacting on whole communities within the country Following serious flooding in May of 2014 that hit towns and villages across the whole of Serbia, Flint Group provided disaster relief and support. Three months worth of rain fell in three days in Serbia. At least 25,000 people had been evacuated, and many more were forced to flee from the flooded region. At least 30 people died and tens of thousands were left homeless in the worst flooding to hit the Balkans since records began (over 120 years ago). Damage was estimated in hundreds of millions of euros. Flint Group management recognised the size of the disaster, the impact on the lives of ordinary people and the need to act in solidarity by donating 450,000 RSD to Gornji Milanovac’s Red Cross organisation to support local community efforts to overcome this very difficult situation. The donation was specified for use only for most urgent needs, including: - Water, food for adults and babies in need, hygiene items for all evacuated people 44 Support for families affected by Chile’s devastating Valparaíso fire... - Disinfectant chemicals for cleaning houses and fields flooded by the water and roads - Repair supplies for rebuilding and fixing houses. The fire in Chile ravaged through Valparaíso causing widespread devastation... UK: Super Flint Group... Latin America: Turning Refuse into Refuge... Flint Group’s Latin American teams have worked hard to reuse the materials others would call refuse and repurpose this to help the local communities in which they operate. Our branches in Chile, Brazil and Argentina have partnerships with non-governmental organisations for the donation of non-hazardous waste for recycling. In Brazil, 26 tons of recyclable materials were donated during 2014 generating income through a community organised initiative located close to the facility. Besides that, Brazil also promotes a campaign to collect empty toiletry Focus on the San José Foundation... packaging (toothpaste, floss, toothbrushes and mouth wash) with all items collected donated to a children’s cancer center support that maintains a partnership with a company that pays for this material and recycles it. During 2014, more than 8 kg of materials were collected. In Flint Group Argentina, we also donated to a Hospital-run campaign that aims to build a hostel for the families of children with diseases requiring long treatment or hospitalisation. In total our Latin American teams donated over 55 tons of non-hazardous waste in 2014. Zach Simpson, son of John Simpson (pictured below), an employee at Flint Group’s pressroom chemical production site in Manchester, UK, recently decided to donate all his birthday presents to the Manchester Mission Christmas appeal – which provides thousands of toys to the region’s hardest-hit households at Christmas. Zach, who suffers from muscular dystrophy, told his parents he wanted a birthday party but no presents for himself. On hearing of this gesture fellow employees really got behind the drive, contributing presents and toys to the campaign with over 100 people attending his super hero themed birthday bash. As a result of this, Zach handed over three sackfuls of gifts for children who have gone without at Christmas. “La Zulmira” Orphanage Chile... Years ago, an employee from Flint Group’s Santiago, Chile, facility organised the site’s support of the environment and of children in need. The initiative first began in the administrative offices only but quickly spread to the manufacturing area as well. San José Foundation is a non-profit adoption agency founded in 1994. The organisation’s major source of fundraising comes through their “Bota por mi Vida” (Bin for my Life) paper recycling system. As part of that programme, Flint Group places paper collection boxes throughout the office, typically next to printers – always a major hub of paper recycling opportunities. When the boxes are full, the Foundation takes them to a recycling facility. For every 45 kg of paper recycled, San José receives 30 nappies or 15 baby bottles – a meaningful aid to those helped by the agency. The environment was significantly aided as well. For the latest year of data available, the San José Foundation recycled enough to save: - 128.040 trees - 41.425 MWh of energy - 199.577 M3 of water - 94.147 mt3 landfill “Lar Zulmira” is an orphanage situated close to Flint Group’s site in Chile where 20 boys and girls under the age of 18 currently live. Being a non-governmental institution the orphanage receives no state support and must therefore generate its own funding - relying heavily on donations and volunteer work from the local community. Flint Group and its team in Chile have been heavily involved with the Lar Zulmira for a number of years with several of its team volunteering their time with Flint Group also joining them to support and assist with fundraising efforts. In 2014, Flint Group and its employees donated more than 617 items of toys and clothing and generated more than 100 kilos of food. - 7.532 tons of greenhouse gases Our Chilean employees continue to work with the San José Foundation to turn typical office waste into a helpful tool for children and the environment. And the great work doesn’t stop there… employees continue to donate food, clothes and money to help “Lar Zulmira” to carry on doing this priceless work! 45 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Flint Group’s supply chain Understanding our supply chain, both upstream and downstream, is vital to reducing risk, lowering our social and environmental impact and ensuring the ongoing success of our business. Overall, the majority of our activities focus on formulation management, which spans multiple processes including mixing, separating, cutting and blending. With more than 60% of our revenue directly linked to our purchased raw materials, building a clear picture of the sustainability impacts generated by our raw material supply chain is fundamental to maintaining a profitable, sustainable business. Flint Group has a long-standing focus on understanding the impacts of our supply chain. We have now conducted detailed self-assessment questionnaires (based on UN Global Compact guidelines) with our raw materials suppliers for over six years. We are pleased to see that other companies in our industry have begun taking similar steps. Improving the sustainability of our collective supply chains is a joint responsibility and we still have a journey ahead of us, so it is important that we all pull in the same direction. We have exceeded our 2014 target for completion of supplier questionnaires, with more than 90% of our suppliers (by global raw material spend) having now submitted responses. Although we have increased our spend by just 1% year on year, this has expanded our supplier portfolio by some 10%. This is a standard occurrence in our industry and means that an increasing number of suppliers must participate in our programme. Since this includes many small to mediumsized businesses, it is important that we support them in complying with our standards. We now include almost 600 suppliers in our programme, which delivers better visibility of our entire supply chain. Due to expanding the reach of the programme, our suppliers’ overall sustainability score has dropped slightly in some areas, while in other areas we have seen continuous improvement. 46 40 Smith Mathapan Wet Batch Maker - Chemical Production Facility Manchester, UK In particular, we improved by: - Implementing a strong focus on labour practices among tier suppliers - Helping suppliers to develop human rights standards - Ensuring that a growing number of suppliers adopt environmental policies based on recognised external standards - Achieving ISO 14001 accreditation across all of our major sites. Areas requiring more focus (following on from our supplier questionnaires): - Supporting our suppliers in implementing human rights and equality policies - Continuously improving our sustainability policy to generate measurable, positive change among our suppliers. In 2014, we improved the process of providing feedback to our suppliers, giving them an insight into how their scores compare with other similar businesses across our supply chain. Our suppliers welcomed this peer comparison, which we believe will act as a further incentive to improve. As we move forward in 2015, we will continue to partner with our suppliers to help them meet the Flint Group sustainability standards. It is vital that we take our suppliers with us on our sustainability journey. Jan Paul van der Velde SVP Procurement, Sustainability, IT and Regulatory Labour Practice Flint Group’s Supplier Questionnaire 96% have an Equal rights / opportunities policy 2013 - 98% The Flint Group supplier sustainability questionnaire is based on the UN Global Compact’s ten principles, and is divided into four categories: Monitoring has remained at 94% 2013 - 94% 100% 90% 80% 70% 83% now audit their supply chain based on these principles 60% 50% 40% 30% 20% 0% 10% 2013 - 50% >94% supports / respects International Human Rights Human Rights Labour practices - The Labour chapter of the UN Global Compact consists of five principles (one shared with Human Rights). We ask our suppliers to answer 24 detailed questions to cover these four principles. 95% now have detailed (company) policies on the subject 2013 - 94% 23% have external accreditation 2013 - 23% 90% 100% 90% 100% 80% 70% 60% 50% 40% 30% 20% 10% 92% now have detailed company policies 2013 - 91% Coverage 80% 70% 60% 50% 40% 30% 20% 89% of spend is now covered by a sustainability questionnaire 2013 - 86% 10% Human rights - The Human Rights chapter of the UN Global Compact consists of two principles. We have asked our suppliers to answer 12 detailed questions covering these two principles. Environment - The Environmental chapter of the UN Global Compact consists of three principles. We ask our suppliers to answer 34 detailed questions to cover the three principles. Anti-corruption - The Anti-corruption chapter of the UN Global Compact consists of one principle. We ask our suppliers to answer two detailed questions to cover this principle (as well as associated questions under Environment and Labour). 2015 Actions based on 2014 Status Depth - Roll out “external code of conduct” programme based on the Flint Group Code of Conduct; reach a minimum of 80% of our global raw material spend by 2015 (this initiative relates to all suppliers that agree to respect the Flint Group Code of Conduct) 88% now have an environmental policy 2013 - 84% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 66% now have a sustainability policy 2013 - 69% Environment - Increase coverage to our global packaging suppliers (2014) and prepare for a 2015 addition of logistics service providers. Our 2015 goal is to reach 92% (2% up from 2014) of the combined spend. 52% now have an Environmental policy based on external standards 2013 - 44% 24% based on internal standards 2013 - 28% 43% have ISO 14001 2013 - 37% 91% utilise a waste reduction programme 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 2013 - 90% 47 F L I N T G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 5 Measuring sustainability Each year we review how we can improve on our reporting. In this report we have made major upgrades on the way we measure water usage. We have also improved the way we measure waste and increased the scope which has led to slightly different numbers than previously reported. You could argue that is not very helpful, as the comparative changes through the journey. We believe that on any journey you should question the status quo and seek new and better ways of going forward. This sometimes means you upgrade from things you were doing and this includes improving on measurement; in most cases this has resulted in stricter reporting or a wider scope. Areas that were important in the past, as they were key focus areas, have continued to prove themselves and have become part of our Balanced scorecard and incorporated as part of our “normal business practices”. Agnieszka Wudzinska Laboratory Technician Global Colour Centre - Poland 48 Are all measurements perfect? No, we still believe we need to improve on our measurement of the social chapter and, while we made major steps forward on waste, we still believe we should improve on this over time. Also while our water usage measurement significantly improved, we still have an issue discriminating between water as a “raw material” versus a process and manufacturing aid. Also how do we report on the significant amount of work undertaken to improve on the quality of water and recycling before discharge? The key message remains, this year better than last year, next year better than this year – evolution to ensure we build a more sustainable model each year. Jan Paul van der Velde Senior Vice President Procurement, Sustainability, Regulatory and IT Economic: 2010 2011 2012 2013 2014 1,541 1,919 2,041 1,962 2,506 21% 28% 30% 30% 37% 6 41 Employee Certificate Programme Annual reconfirmation of the Code of Conduct Number of Employees involved % of total Flint Group population Integrity Assurance Policy cases raised and resolved Number of cases not reported 4 4 Actions taken not reported 3 dismissals 4 dismissals Number of risks identified and with action plan not reported 50 50 50 32 Of which are in highest risk category not reported 16 16 16 9 2010 2011 2012 2013 2014 Print Media not reported not reported 55 343* 48 Packaging not reported not reported 13 4 8 Flexographic Products not reported not reported 1 2 2 4 dismissals, 1 demotion, 1 suspension 4 dismissals, 6 disciplinary, 1 resignation Risk and Compliance process Environment: Products introduced with better sustainability footprint *R&D at its best... a key product evolution increased the eco-friendliness of a high number of Print Media Products without negative impact on performance Waste (in mT) Hazardous not reported not reported not reported 539.6 404 Dry Waste not reported 16.9 18 11.6 11.5 Recycled Waste not reported not reported not reported 0.6 2.1 Water Consumption m3 not reported 3,531,519 3,268,284 3,465,544 3,631,680 Carbon Dioxide Emissions (in 1000 mT) Scope 1 Emissions 31.1 29.5 28.1 29.6 30.95 Scope 2 Emissions 152.9 148.6 143.5 133.1 130.30 Total Outbound travel / transport (kg CO2e) 184 178.1 171.6 162.7 161.25 not reported not reported 2,501,093 2,304,621 3,080,276 Classification and labelling REACH substances pre-registered not reported 2,715 2,715 2,722 2,725 2010 registration not reported Done 11 Done 11 Done 11 Done 11 2013 registration not reported In progress Done 13 2018 registration not reported not reported not reported 75 in progress 89 in progress 2010 2011 2012 2013 2014 not reported not reported not reported 75,569 96,842 1.42 0.93 0.74 0.72 0.82 not reported 62% 72% 79% 80% Social: Hours training spend Safety TIR Average UN Global Compact Score Suppliers (max. 100) All Done - including 4 updates All Done - including 4 updates Published August 2015. 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