Carbon Management through the Value Chain Apprehension of the urgency of the climate change problem prompted AkzoNobel to establish a Carbon Policy in 2009. AkzoNobel recognizes that the effects of climate change are likely to have fundamental impacts on the global environment, society and the economics of industrial activity. We need to move beyond controlling emissions from our own operations towards managing – throughout our product chain – the strategic risks arising from dependence on fossil fuels and fossil-based raw materials. In line with our commitment to develop eco-efficient solutions for customers, the company acknowledges that managing our carbon footprint through innovative products, technology and energy management constitutes both a business opportunity and a social imperative. Our target is a 10% reduction in cradle-to-gate carbon footprint per metric ton of product by 2015 (as compared to 2009), with an ambition to grow to a 20-25% reduction by 2020. We further aim to restrict the absolute scope 1 & 2 (own operations) greenhouse gas emissions of our current business portfolio rise to no higher than extrapolated 2008 levels. Carbon policy research initiated in 2007 emphasized that the impact of carbon on our business extends well beyond emissions from our own production processes. Early in 2008, we embarked on a coordinated program to develop a carbon footprint policy and framework relevant to the whole of our diverse business portfolio. The framework was tested with the World Resources Institute and several Dutch and Swedish NGOs, and is described in more detail in the AkzoNobel 2012 Report. AkzoNobel’s Carbon Policy – Targets and Ambitions AkzoNobel will measure the cradle-to-gate carbon footprint of its key value chains in 2009 and update these measurements every three years. AkzoNobel will reduce its cradle-to-gate carbon footprint by 10% per metric ton of product by 2015 compared to 2009. AkzoNobel aims to restrict its absolute scope 1 & 2 greenhouse gas emissions (based on its current business portfolio) to no higher than 2008 levels, by offsetting organic growth with energy efficiency and fuel mix improvements. AkzoNobel strives to facilitate a paradigm shift in carbon management through continuous innovation, aiming to reduce cradle-to-gate carbon footprint by 20-25% per ton of product by 2020 (as compared to 2009). AkzoNobel will continue to provide carbon-efficient solutions to customers, contributing to the existing AkzoNobel objective of 30% annual sales from eco-premium solutions by 2015. Since 2007, we publicly disclose our Policy, Management and Performance on Energy Efficiency and Carbon Footprint by our annual reporting to the Carbon Disclosure Project (CDP). Our 2007-2012 Reports to CDP can be found here. An assessment of our carbon footprint cradle to gate can be found in our Annual Report.