Reporting principles
ESG
An overview of our sustainability performance from an economic, environmental and social perspective, from 2016 to 2020
People
Area |
Unit |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
Ambition 2025 |
Employees |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| Sustainable solutions 15 | % of revenue | 39 | >50 | |||||
| Eco-premium solutions 16 | % of revenue | 21 | 21 | 22 | 22 | 21 | – | – |
Value chain emission21 |
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| 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 |
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Age by gender |
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Age groups |
2019
|
2020
|
2021
|
| <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 |
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Functions |
2019
|
2020
|
2021
|
| 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 |
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Management level |
2019
|
2020
|
2021
|
| 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.
