More value from fewer resources Trevor Solomon Global
More value from fewer resources Trevor Solomon Global PSRA Manager Akzo. Nobel
Akzo. Nobel today North America 15% Asia Pacific 25% Mature Europe 38% Latin America 11% Emerging Europe 8% Revenue by end-user segment Buildings and Infrastructure 44% Transportation 16% Consumer Goods 16% Industrial 24% Other countries 3% Revenue by Business Area Decorative Paints 28% Performance Coatings 38% Specialty Chemicals 34% 2 Sustainability | Planet Possible
Dow Jones Sustainability Index Leader of the Industry Ranked No. 1 + Leader of the Materials Industry (350 companies) Positioned among the top three Awarded the Industry Leaders, Gold Class distinction for excellent sustainability performance by Robeco. SAM Dow Jones Sustainability Index Most respected independent benchmark of around 2, 000 leading companies from 60 industries Assessed criteria: • Economic: Corporate risk, customer relationship management, risk and crisis management • Environmental: Reporting, product stewardship, operational eco-efficiency, climate strategy • Social: Human capital development, talent attraction and retention, occupational health and safety Sustainability | Planet Possible 3
Sustainability is at the heart of our business Our commitment to doing more with less
Sustainability | Planet Possible 5
Global trends impacting our key market segments Population growth Urbanization Climate Change Natural resource constraints
Planet Possible Our strategy Sustainable business Resource efficiency Capable, engaged people Sustainability | Planet Possible 7
Our Targets Delivering impact across the value chain of revenue by 2020 from products that are more sustainable for our customers than the products of our competitors more efficient resource and energy use across the entire value chain by 2020 (measured by carbon footprint reduction) A new indicator measuring how efficiently we generate value (expressed as gross profit divided by cradle-to-grave carbon footprint) Sustainability | Planet Possible 8
Sustainable Innovation End-user segments Sustainability Direction of Sustainability = Business Innovation spend Business = Sustainability (2. 5% of 2014 revenue) End-user segment trends, combined with sustainability, direct our innovation spend Sustainability | Planet Possible 9
Dulux Light and space Intersleek antifouling Reflects up to twice as much light back into your room, saving on energy costs Our “tough on slime” coatings cut carbon and costs for ships Chelates Rediset™ WMX We supply chelates used in detergents which lower the environmental impact of dishwashing Rediset WMX reduces energy costs of road-laying by 20% and limits worker exposure to fumes
Ecosel Asphalt. Protection COOL CHEMISTRY An additive for road salt which can reduce the development of frost damage by up to 50% Our COOL CHEMISTRY coatings feature special pigments that reflect infrared energy, while still absorbing visible light energy Dulux Guardian Interchar® 1120 A premium, low VOC and low-odor soft sheen emulsion for interior walls which fights common household bacteria Interchar® 1120 offers an environmentally friendly solution for protection of structural steelwork
Managing sustainability effectively Carbon intensity in our own scope is relatively low
Akzo. Nobel and The Gold Standard Akzo. Nobel with The FRe. MCo Group created the first award-winning Gold Standard methodology for commercial shipping when using our Intersleek techbology • The methodology is the first of it’s kind for both shipping and carbon credit arena…and was not an easy task! • The project has delivered it’s first credits verifying 126, 785 tonnes of avoided CO 2 emissions from 16 individual vessels • All of the carbon credits are given to the ship owners involved in order to promote further investment in energy-efficient technology • Focus of the business case was the credibility of the GS process that could in turn be used to give credibility to the carbon-reduction potential of our technology 13
Co-Benefits of Carbon Credits Akzo. Nobels’ total energy requirement is ~9 trillion Wh per year 9 trillion Wh is equivalent to 1. 7 M tonnes HFO or 5. 5 M tonnes CO 2 The issuance of carbon credits confirms that Intersleek reduces CO 2 emissions on average by 9% Average fuel consumption of a vessel is around 50 tonnes of HFO per day or 15, 000 tonnes per year Intersleek is currently applied to about 5% of the worlds’ commercial fleet Annual saving for the fleet due to Intersleek is around 3 M tonnes HFO or 9. 5 M tonnes CO 2 One product from a low energy portion of Akzo. Nobel offsets the whole of Akzo. Nobel by almost twice
Conclusions Sustainability is business and business is sustainability Our industry must deliver much more value from much fewer resources Sustainability requires collaboration throughout the value chain Sustainability is a major business driver Sustainability | Planet Possible 15
More value from fewer resources Sustainability
- Slides: 16