ESG

An overview of our sustainability performance from an environmental, social and product portfolio perspective, from 2018 to 2022

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Area	Unit	2018	2019	2020	2021	2022
SOCIAL							Ambition 2025
Employees ¹
Organizational health score (OHI)	number	58	61	69	72	72	Top quartile¹⁴
Female executives	%	20	18	21	22	26	30
Executive Committee female representation	%	29	33	40	43	50	–
Supervisory Board female representation	%	33	33	38	33	37.5	–
Culture and change ambassadors	number					300	–
Executive vacancies filled internally	%	54	53	60	68	62	–
High potential turnover ²	%	8	4	6	4	N/A	–
Total CEO compensation vs median employee compensation	Ratio	71.3	81.9	126.4	149.0	81.1	–
Total CEO compensation vs mean employee compensation ³	Ratio	56.4	65.0	99.2	115.7	59.8	–
Total employee turnover rate	%	14	14	13	14	15	–
Voluntary employee turnover rate	%	8	7	5	8	9	–
Employees covered by an independent trade union or collective bargaining agreements ⁴	%	56	56	59	49	45	–
Number employees	number	34,500	33,800	32,200	32,800	35,200	–
Diversity: Age by gender
<25	% Female	N/A	32%	32%	29%	31%	–
25 - <35	% Female	N/A	32%	32%	31%	33%	–
35 - <45	% Female	N/A	26%	26%	26%	28%	–
45 - <55	% Female	N/A	25%	25%	23%	23%	–
55 - <65	% Female	N/A	20%	21%	20%	20%	–
≥ 65	% Female	N/A	11%	12%	15%	16%	–
Total	% Female	N/A	25%	25%	26%	27%	–
Diversity: Functions by gender
Facilities	% Female	N/A	53%	46%	44%	46%	–
General Management	% Female	N/A	50%	40%	55%	51%	–
Integrated Supply Chain	% Female	N/A	14%	14%	15%	14%	–
Research Development & Innovation	% Female	N/A	35%	34%	35%	35%	–
Sales & Marketing	% Female	N/A	26%	27%	27%	29%	–
Support	% Female	N/A	55%	54%	54%	55%	–
Diversity: Management level by gender
Executive	% Female	N/A	18%	20%	22%	26%	–
Senior MM level¹⁸	% Female	N/A	27%	27%	28%	31%	–
Junior MM level	% Female	N/A	29%	30%	30%	-	–
G level	% Female	N/A	24%	23%	24%	24%	–
Ungraded	% Female	N/A	N/A	N/A	N/A	25%	–
Diversity: Gender split per region
North America	% Female	N/A	19%	19%	19%	20%	–
South America	% Female	N/A	22%	22%	23%	27%	–
EMEA	% Female	N/A	29%	29%	30%	30%	–
North Asia	% Female	N/A	23%	23%	23%	24%	–
South Asia Pacific	% Female	N/A	19%	19%	20%	21%	–

People and process safety							Ambition level
Fatalities employees	number	0	2	0	1	0	–
Total reportable injury rate employees/temporary workers	/200,000 hours	0.20	0.24	0.23	0.21	0.236	0.2
Lost time injury rate employees/temporary workers	/200,000 hours	0.09	0.08	0.09	0.11	0.126	–
Occupational illness rate employees	/200,000 hours	0.012	0.003	0.010	0.003	0.003	–
Occupational illness frequency rate (OIFR)	/1,000,000 hours	0.05	0.03	0.04	0.01	0.01	–
New Wellness Checkpoint participants	number	446	388	740	1776	115	–
Total illness absence rate employees	%	1.98	2.17	2.59	2.66	3.24	–
Fatalities contractors (temporary workers plus independent)	number	0	0	0	0	0	–
Total reportable injury rate contractors	/200,000 hours	0.18	0.19	0.17	0.12	0.212	–
Lost time injury rate contractors	/200,000 hours	0.07	0.09	0.11	0.08	0.064	–
Life changing injuries	number	3	3	2	2	1	–
Distribution incidents	number	21	26	15	14	12	–
Loss of primary containment – Level 1	number	6	3	6	5	2	–
Loss of primary containment – Level 2	number	63	64	52	67	51	–
Regulatory actions – Level 3	number	2	3	0	2	1	–
Regulatory actions – Level 4	number	1	0	0	0	0	–
Priority substances with management plan	%	100	100	100	100	100	100
Security events Level 3	number	0	0	0	4	0	–

HSE management
Safety incidents (Level 3)	number	0	2	0	2	0	–
Safety incidents (Levels 1, 2, 3)	number	3	3	2	5	1	–
Management audits plus reassurance audits	number	25	32	28	29	33	–
Management audits plus reassurance audits	percentage	–	–	–	–	27	–
Environmental certification ISO 14001⁵	% of manufacturing sites	77	75	76	80	78	–
Health and Safety Management certification - ISO 45001⁵	% of manufacturing sites	55	53	53	57	55	–

AkzoNobel Cares							Ambition 2020-2030
Members of local communities empowered with new skills	number	4,276	4,078	2,669	11,193	24,225	100,000+
AkzoNobel Cares projects	number	126	225	170	182	239	2,000+

ENVIRONMENTAL							Ambition 2030
Energy use and emissions
Total energy use ⁶	1000TJ	6.20	6.02	5.69	6.33	5.91	–
per ton of production	GJ/ton	1.91	1.88	1.83	1.89	1.90	30% less¹⁵
Renewable energy (own operations)	%	31	31	33	37	41	–
Renewable electricity (own operations)	%	38	37	40	45	50	100
Greenhouse gas emissions – Direct CO₂(e) emissions (Scope 1) ⁷	kiloton	62.9	58.3	57.2	64.5	60.1	–
per ton of production	kg/ton	19.42	18.18	18.42	19.27	19.35	–
Greenhouse gas emissions – Indirect CO₂(e) emissions (Scope 2)	kiloton	226.0	183.1	168.2	172.1	147.5	–
per ton of production	kg/ton	69.77	57.13	54.22	51.41	47.45	–
Total Greenhouse gas emissions – Scope 1 and Scope 2 combined CO₂(e) emissions	kiloton	288.92	241.45	225.38	236.60	207.6	50% less ¹⁵
per ton of production		89.19	75.31	72.64	70.68	66.8
Volatile organic compounds (VOC)	kiloton	1.57	1.19	0.95	0.96	0.83	–
per ton of production	kg/ton	0.49	0.37	0.31	0.29	0.27	–
NOx emissions	kiloton	0.1	0.1	0.1	0.07	0.07	–
per ton of production	kg/ton	0.02	0.02	0.02	0.02	0.02	–
SOx emissions	kiloton	0.02	0.04	0.03	0.03	0.03	–
per ton of production	kg/ton	0.01	0.01	0.01	0.01	0.01	–

Resource efficiency
Total waste	kiloton	67	67	62	67	59	–
per ton of production	kg/ton	20.97	21.00	19.96	19.87	18.95	–
Circular use of materials¹⁶	%	52	55	57	58	56	100
Total reusable waste	kiloton	33	34	32	35	29	–
Total non-reusable waste	kiloton	34	33	30	31	30	–
per ton of production	kg/ton	10.63	10.28	9.57	9.39	9.68	–
Hazardous waste total	kiloton	30	29	28	31	28	–
per ton of production	kg/ton	9.13	9.07	8.93	9.19	9.15	–
Non-hazardous waste total	kiloton	37	38	34	36	30	–
Hazardous waste non-reusable	kiloton	15	14	15	17	17	–
per ton of production	kg/ton	4.59	4.46	4.70	4.95	5.36	–
Total Hazardous waste reusable	% of hazardous waste	50	51	47	45	41
Hazardous waste to landfill	kiloton	0.69	0.45	0.23	0.11	0.14	–
per ton of production	kg/ton	0.21	0.14	0.07	0.03	0.05	–
Non-hazardous waste to landfill	kiloton	10.93	9.40	6.22	1.39	1.12
Total waste to landfill	kiloton	11.6	9.8	6.5	1.5	1.3	Zero (<1% of total waste)
Total freshwater use	million m³	9.27	8.05	9.12	9.56	8.63	–
per ton of production	m³/ton	2.86	2.51	2.94	2.86	2.78	–
Total fresh water consumption (excluding water related to product)	million m³				1.27	1.14	–
per ton of production	m³/ton				0.38	0.37	–
COD emissions	kiloton	0.03	0.02	0.02	0.03	0.03	–
per ton of production	kg/ton	0.01	0.01	0.01	0.01	0.01	–

Supplier management							Ambition 2025
PR⁸ suppliers signed Business Partner CoC⁹	% of spend	98	98	98	99	99	–
NPR⁸ suppliers signed Business Partner CoC⁹	% of spend	83	84	89	89	93	–
Suppliers participating in sustainability program	% against baseline	60	65	75	84	77	Close to 100
Suppliers in sustainability program - under development	% against baseline	22	18	24	27	24	–
Suppliers in sustainability program - in line with our expectation	% against baseline	38	47	51	57	52	–
Third party on-site sustainability audits (TfS)¹⁰	number		263	315	313	298	–

PRODUCT PORTFOLIO							Ambition 2030
Sustainable product portfolio and product safety
Sustainable solutions ¹¹	% of revenue				39	40	>50
Eco-premium solutions ¹¹	% of revenue	22	22	21	–	–	–

Value chain emission¹²
Renewable raw materials	% organic RM	5	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	13.8	–
Cradle-to-grave carbon footprint (Scope 1, 2 and 3) - Selected scope 3¹³	million tons	14.3	13.8	12.8	14.7	13.4	–
Cradle-to-grave with selected scope 3 as part of total cradle-to-graven carbon footprint	in % of total carbon footprint	96	96	96	97	95	–
Scope 3 upstream selected categories¹³	million tons	6.5	6.3	5.9	6.8	6.2	–
Scope 3 downstream selected categories	million tons	7.5	7.3	6.7	7.7	7.0	–
Scope 3 - upstream and downstream combined¹⁹	million tons	14.0	13.6	12.6	14.5	13.2	50% less¹⁵
Scope 3, category 1. Purchased goods and services	million tons CO₂ (e) (estimated)	6.5	6.3	5.9	6.8	6.2	–
Scope 3, category 2. Capital goods	million tons CO₂ (e) (estimated)	0.4	0.4	0.4	0.03	0.03	–
Scope 3, category 3. Fuel- and energyrelated activities	million tons CO₂ (e) (estimated)	<0.1	<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	0.2	–
Scope 3, category 5. Waste generated in operations	million tons CO₂ (e) (estimated)	<0.1	<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	<0.1	–
Scope 3, category 7. Employee commuting	million tons CO₂ (e) (estimated)	<0.1	<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	<0.1	–
Scope 3, category 9. Downstream transportation and distribution	million tons CO₂ (e) (estimated)	0.1	0.1	0.1	0.2	0.2	–
Scope 3, category 10. Processing of sold products¹⁷	million tons CO₂ (e) (estimated)	(Included in use)	(Included in use)	(included in use)	(included in use)	5.5	–
Scope 3, category 11. Use of sold products¹⁷	million tons CO₂ (e) (estimated)	5.9	5.7	5.2	6	(included in processing)	–
Scope 3, category 12. End-of-life treatment of sold products	million tons CO₂ (e) (estimated)	1.6	1.6	1.5	1.7	1.5	–
Scope 3, category 13. Downstream leased assets	million tons CO₂ (e) (estimated)	<0.1	<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	<0.1	–
Scope 3, category 15. Investments	million tons CO₂ (e) (estimated)	<0.1	<0.1	<0.1	<0.1	<0.1	–

Notes:

1 – Due to privacy law, such as GDPR, we are not allowed to collect certain diversity data from our employees in certain regions, other than gender. Therefore, we currently only disclose gender diversity at consolidated level.

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

3 – 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.

4 – 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 and engagement in line with company values and HR policies, for example by inclusion in the Code of Conduct.

5 – This percentage covers manufacturing sites under our Global group certification. Some sites are certified against local standards and are not covered in the group certificate. The year-on-year differences can be explained by site closures.

6 – The 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.

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

8 – PR stands for Product-related and NPR for Non-product related.

9 – CoC stands for Code of Conduct.

10 – Third party on-site sustainability audits. This includes Together for Sustainability (TfS) shared audits, cumulative. Includes re-auditing sites in high-risk regions.

11 – 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.

12 – We have restated our 2018-2019 Scope 3 downstream and upstream due to improvement of methodology by better incorporating raw material formulation. The reporting period for Scope 3 remains October-September.

13 – 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.

14 – Since we’re striving to achieve top quartile on an ongoing basis, the OHI ambition is not tied to the 2025 time frame.

15 – Versus 2018 baseline.

16 - The 2020 and 2021 ﬁgures for circular use of materials have been restated, reﬂecting an incorrect classiﬁcation of by-product for one of our production sites.

17 – We changed the reporting category for the joint use and processing stage to category 10 on request of the Science Based Targets initiative (SBTi) and to better reflect in which stage the emissions actually occur.

18 – Since 2022, we merged both Senior and Junior MM levels.