ESG

An overview of our sustainability performance from an economic, environmental and social perspective, from 2016 to 2021

People

Area

Unit

2016

2017

2018

2019

2020

2021

Ambition 2025

                 

Employees

               
Organizational Health Score (OHI) score     58 61 69 72 Top quartile (75)
Female executives1, 17 % 19 19 20 18 21 22 30
Executive vacancies filled internally1 % 61 74 54 53 60 68
High potential turnover1 13 % 4 5 8 4 6 4
Total CEO compensation vs median employee
compensation
Ratio 71.4 70.3 71.3 81.9 126.4  
Total CEO compensation vs mean employee
compensation 11
Ratio 60.2 58.6 56.4 65.0 99.2 115.7
Total employee turnover rate1 % 12 13 14 14 13 14
Voluntary employee turnover rate1 % 7 6 8 7 5 8
Employees covered by an independent trade union or collective bargaining agreements1, 8 % 70 65 56 56 59 49
Number employees number              36,300       35,700       34,500       33,800          32,200              32,800
                 

People, process and product safety

               
Fatalities employees number 0 0 0 2 0 1
Total reportable injury rate employees/temporary workers /200,000 hours 0.26 0.20 0.20 0.24 0.23 0.21
Lost time injury rate employees/temporary workers /200,000 hours 0.13 0.06 0.09 0.08 0.09 0.11
Occupational illness rate employees /200,000 hours   0.01 0.012 0.003 0.010 0.003
Occupational illness frequency rate (OIFR)  /1,000,000 hours 0.06 0.05 0.05 0.03 0.04 0.01
New Wellness Checkpoint participants number                   795            465            446            388 740 1.776
Total illness absence rate employees % 1.84 1.92 1.98 2.17 2.59 2.66  
Fatalities contractors (temporary workers plus independent) number 0 1 0 0 0 0
Total reportable injury rate contractors /200,000 hours 0.29 0.12 0.18 0.19 0.17 0.12
Lost time injury rate contractors /200,000 hours 0.11 0.06 0.07 0.09 0.11 0.08
Life changing injuries number   2 3 3 2 2
Distribution incidents number 23 16 21 26 15 14  
Loss of primary containment – Level 17 number 5 5 6 3 6 5
Loss of primary containment – Level 2 number 45 43 63 64 52 67
Process safety event (include near misses)  – Level 3 number 666 1200 1583 970 1250 1621
Regulatory actions – Level 3 number 0 0 2 3 0 2
Regulatory actions – Level 4 number 0 0 1 0 0 0 0
Priority substances with management plan % 33 67 100 100 100 100 100
Security incidents Level 3 number           4
                 

HSE management

               
Safety incidents (Level 3) number 0 1 0 2 0 2
Safety incidents (Levels 1, 2, 3) number 0 2 3 3 2 5
Management audits plus reassurance audits number 34 32 25 32 28 29
Environmental certification  ISO 14001 14 % of manufacturing sites 78 76 77 75 76 80
Health and Safety Management certification - ISO 4500114 % of manufacturing sites 53 53 55 53 53 57
                 

AkzoNobel Cares

              2020-2025
Community people trained number 2,041 2,863 4,276 4,078 2,669 11,193 35.000
Projects number 157 224 126 225 170 182 1.000

Planet

Area

Unit

2016

2017

2018

2019

2020

2021

Ambition 2030

                 

Energy use and emissions

               
Total energy use 20 1000TJ 6.32 6.39 6.20 6.02 5.69 6.33
 per ton of production GJ/ton 1.91 1.88 1.91 1.88 1.83 1.89 30% less18
Renewable energy (own operations) % 27 30 31 31 33 37
Renewable electricity (own operations) % 34 37 38 37 40 45 100
Greenhouse gas emissions – Direct CO2(e) emissions (Scope 1)9 kiloton 72.72 69.66 62.90 58.29 57.16 64.51
 per ton of production kg/ton 21.96 20.53 19.42 18.18 18.42 19.27
Greenhouse gas emissions – Indirect CO2(e) emissions (Scope 2) kiloton 244.3 237.8 226.0 183.1 168.2 172.1
 per ton of production kg/ton 73.78 70.11 69.77 57.13 54.21 51.40
VOC kiloton 2.00 1.71 1.57 1.19 0.95 0.96
 per ton of production kg/ton 0.60 0.50 0.49 0.37 0.31 0.29
NOx emissions kiloton 0.1 0.1 0.1 0.1 0.1 0.07
 per ton of production kg/ton 0.02 0.02 0.02 0.02 0.02 0.02
SOx emissions kiloton 0.03 0.03 0.02 0.04 0.03 0.03
 per ton of production kg/ton 0.01 0.01 0.01 0.01 0.01 0.01
                 

Resource efficiency

               
Total waste kiloton 85 77 67 67 62 67
 per ton of production kg/ton 25.65 22.77 20.97 21.00 19.96 19.87
Total waste - circular %   51 52 55 58 59 100
Total reusable waste kiloton 42 37 33 34 32 35
Total non-reusable waste kiloton 43 40 34 33 30 31
 per ton of production kg/ton 12.92 11.90 10.63 10.28 9.57 9.39
Hazardous waste total kiloton 35 33 30 29 28 31
 per ton of production kg/ton 10.72 9.76 9.13 9.07 8.93 9.19
Hazardous waste non-reusable kiloton 15 16 15 14 15 17
 per ton of production kg/ton 4.62 4.64 4.59 4.46 4.70 4.95
Total Hazardous waste reusable % of hazardous waste - - - - - 45  
Hazardous waste to landfill kiloton estimates 0.7 0.6 0.69 0.45 0.23 0.11
 per ton of production kg/ton 0.20 0.17 0.21 0.14 0.07 0.03
Fresh water use million m3 9.61 9.62 9.27 8.05 9.12 9.56
per ton of production m3/ton 2.90 2.84 2.86 2.51 2.94 2.86
Fresh water consumption million m3           1,27
per ton of production m3/ton           0,38
COD emissions kiloton 0.04 0.03 0.03 0.02 0.02 0.03
per ton of production kg/ton 0.01 0.01 0.01 0.01 0.01 0.01
                 

Supplier management

               
PR5 suppliers signed Business Partner CoC1,2 % of spend 99 97 98 98 98 99
NPR6 suppliers signed Business Partner CoC1,2 % of spend 86 86 83 84 89 89
Suppliers participating in sustainability program % against baseline     60 65 75 84
Suppliers in sustainability program - under development % against baseline     22 18 24 27  
Suppliers in sustainability program - in line with our expectations % against baseline     38 47 51 57
Third party on-site sustainability audits (TfS)5 number       263 315 313

Paint

Area

Unit

2016

2017

2018

2019

2020

2021

Ambition 2030

                 

Sustainable product portfolio

               
Sustainable solutions 15 % of revenue           39 >50
Eco-premium solutions 16 % of revenue 21 21 22 22 21
                 

Value chain emission21

               
Renewable raw materials % organic RM 6 5 5 5 5    
 Cradle-to-grave carbon footprint
(Scope 1, 2 and 3) - Total
million tons     14.9 14.4 13.4 15.1
 Cradle-to-grave carbon footprint
(Scope 1, 2 and 3) - Selected scope 319
million tons     14.3 13.8 12.8 14.7
Cradle-to-grave with selected scope 3 as part of total cradle-to-grave carbon footprint in % of total carbon footprint     96 96 96 97  
Scope 3, category 1. Purchased goods and services million tons CO2 (e) (estimated)     6.5 6.3 5.9 6.8
Scope 3, category 2. Capital goods million tons CO2 (e) (estimated)     0.4 0.4 0.4 0.03
Scope 3, category 3. Fuel- and energyrelated activities million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 4. Upstream transportation and distribution million tons CO2 (e) (estimated)     0.0 0.0 0.1 0.2
Scope 3, category 5. Waste generated in operations million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 6. Business travel  million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 7. Employee commuting million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 8. Upstream leased assets million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 9. Downstream transportation and distribution million tons CO2 (e) (estimated)     0.1 0.1 0.1 0.2
Scope 3, category 10. Processing of sold products million tons CO2 (e) (estimated)     (Included in use) (Included in use) (included in use) (included in use)
Scope 3, category 11. Use of sold products  million tons CO2 (e) (estimated)     5.9 5.7 5.2 6
Scope 3, category 12. End-of-life treatment of sold products million tons CO2 (e) (estimated)     1.6 1.6 1.5 1.7
Scope 3, category 13. Downstream leased assets million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 14. Franchises million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1
Scope 3, category 15. Investments million tons CO2 (e) (estimated)     <0.1 <0.1 <0.1 <0.1

 

Diversity metrics

     

Age by gender

     

Age groups

2019
Female

2020
Female

2021
Female

<25 32% 32% 29%
25 - <35 32% 32% 31%
35 - <45 26% 26% 26%
45 - <55 25% 25% 23%
55 - <65 20% 21% 20%
≥ 65 11% 12% 15%
Total 25% 25% 26%
       

Functions per gender

     

Functions

2019
Female

2020
Female

2021
Female

Facilities 53% 46% 44%
General Management 50% 40% 55%
Integrated Supply Chain 14% 14% 15%
Research  Development & Innovation 35% 34% 35%
Sales & Marketing 26% 27% 27%
Support 55% 54% 54%
Total 25% 25% 26%
       

Management level by gender

     

Management level 

2019
Female

2020
Female

2021
Female

Executive 18% 20% 22%
Senior MM level 27% 27% 28%
Junior MM level 29% 30% 30%
G level 24% 23% 24%
Ungraded N/A N/A N/A

Notes:

1.  2015-2017 data includes discontinued operations

2.  CoC = Code of Conduct

3.  SSBS = Supplier Sustainability Balanced Scorecard. Baseline is 2018 (new KPI).

4.  Includes TfS shared assessments, cumulative.

5.  Third party on-site sustainability audits. Includes TfS shared audits, cumulative. Includes re-auditing sites in high risk regions. No separate data available for previous years due to chemicals divestment.

6.  NPR = Non-product related

7.  Definition change 2016

8. We operate in some countries where the right to exercise freedom of association and collective bargaining may be at risk. We ensure that systems are in place for employee involvement/ engagement in line with company values and HR policies, for example by inclusion in the Code of Conduct.

9. We have restated our 2018 Scope 1 emissions due to a temporary database outage in the prior year leading to misstated values.

10. We have restated 2018-2019 Scope 3 downstream and upstream due to improvement of methodology by better incorporating raw material formulation. 

11. The 2020 increase is mainly due to the 2020 Performance Incentive Plan payment. Without this one-off special payment the ratio would have been 62.3. The 2021 CEO pay ratio seems to be higher due to the reappointment grant of 17,500 shares and a lower average salary per employee. Without the reappointment grant, the ratio would be 82.4. 

13. In 2020 we changed the definition of our high potential turnover as follows: High performers (scoring a 4 or 5 in their P&DD for the past 2 years) who leave the organisation voluntarily or as part of a redundancy.

14. This % covers manufacturing sites under Global group certification. Some sites are certified against local standards and are not covered in the group certificate 

15. & 16. As of 2021, we report on sustainable solutions instead of eco-premium solutions. The reporting period for both eco-premium as well as sustainable solutions is November-October.

17. Percentage of women at executive level, a pay grade level at AkzoNobel, which excludes the Executive Committee.

18. Versus baseline 2018. 

19. This includes: Upstream Category 1 (purchased goods and services including packaging), Downstream: Category 10 - processing of sold products; Category 11 - use of sold products; Category 12 - end-of-life treatment of sold products and VOC emissions in processing/use                                                                     

20. 2021 number includes a baseline shift of 199 TJ, or 3.5%, due to central procurement of electricity, elevating part of the stores organization above the materiality level.

21. We use the reporting period of 1 October to 30 September for Scope 3 carbon footprint as the calculations are based on multiple data sources which requires more time to prepare, review and audit.


Get the full picture for 2021

For a detailed summary of our financial and sustainability performance in 2021, read the online version of our integrated Report 2021.