Social Report 2007 3 , We Have Social Contribution Efthimios O

S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 3

About S&B

S&B Industrial Minerals, listed in the Athens Exchange since 1994, is the mother company of a multinational Group of companies with activities in 23 countries in 5 continents.

Utilizing the multiple properties of industrial minerals and through its portfolio of mineral reserves, S&B converts natural resources into more than 2,000 high quality customized value adding solutions for a wide range of applications serving 15 different industrial end-use segments. S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 3

About S&B

S&B Industrial Minerals, listed in the Athens Exchange since 1994, is the mother company of a multinational Group of companies with activities in 23 countries in 5 continents.

2 Management 6 Governance & 11 Economic 14 Human 26 Environment Reporting Letter Management Contribution Resources Parameters

4 Sustainable 8 Stakeholder 20 Health 34 Social G3 Content Index Development Dialogue & Safety Contribution at S&B S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 4

S&B is organized in product Divisions across the various legal entities of the Group.

Bentonite • Perlite • Bauxite • Stollberg • Otavi

All Divisions hold top rank positions in the markets they serve both in Europe and worldwide. They are responsible for driving forward S&B’s market based approach to business and for building comprehensive Market-to-Mine chains, following the needs of the market and working closely with customers.

No1 No1 No1 No1 One of the leading bentonite supplier of bauxite producer of wollastonite producer graded perlite producer casting fluxes suppliers in the E.U worldwide in the E.U. worldwide in Europe

S&B is organized in product Divisions across the various legal entities of the Group.

Bentonite • Perlite • Bauxite • Stollberg • Otavi

Bentonite Perlite Bauxite Stollberg Otavi The Bentonite Division, utilizing the binding, ab- The Perlite Division, with its extensive perlite The Bauxite Division, taking advantage of The Stollberg Division, with the Stollberg The Otavi Division is processing and trading sorbing and rheological properties of ben- reserves, its more than 100 perlite based the special properties of the Greek type brand, is the worldwide market and technol- a variety of specialty minerals under the Otavi tonite, and mixtures of this mineral with other products and a widely spread just-in-time bauxite –of diasporic and boehmitic nature– ogy leader in continuous casting fluxes and re- brand, from its own sources –such as wol- materials, supplies more than 1,000 product distribution network, is the largest raw grad- has been established as the most impor- lated technical products and services for the lastonite– or from its partners worldwide, serv- formulations to foundries, iron ore pelletizing, ed perlite supplier worldwide and an important producer and supplier of high quality steel industry. Its more than 1,000 customized ing the glass, ceramics, refractory and met- oil drilling, civil engineering projects, pet litter tant expanded perlite supplier for various bauxite in Europe, particularly for the non solutions, based on a variety of industrial min- allurgy markets. The Otavi Division is also act- absorbents, paper industry and other spe- applications in Greece, Spain and Bulgaria. metallurgical specialized uses, such as erals and other materials, are applied to the ing as a “window of opportunity” for S&B by Product Divisions cialty applications. With extensive reserves Perlite, mainly used in its expanded state, is Calcium Aluminate and Portland cements, mould during the continuous casting process, developing new businesses on a Market-to- and processing plants across many countries, a lightweight aggregate with outstanding iron and steel industries, mineral wool and facilitating the production of high quality steel. Mine basis. Otavi is striving to be a reliable S&B is the number one producer of bentonite thermal and acoustic insulation properties. It abrasives. S&B is also the base load sup- With its own manufacturing locations span- provider of solutions to its customers by de- in Europe and the second in the world, while is thus used as an ingredient in acoustical plier of metallurgical bauxite for the Greek ning the globe, Stollberg ensures logistics veloping profitable and sustainable supply its brand lines IKO and IBECO and the recently tiles, plasters & mortars, as hydroponics aluminium industry. benefits, product development and technical chains in specialty industrial minerals and acquired CEBO are widely recognized among media or filter aid and as a component for application support nearest to its customers. new geographies. bentonite users. various industrial uses. 2 S&B Industrial Minerals S.A. ihorpoesoa n epnil conduct. responsible and professional our with stakeholders our of respect the gain We Responsibility Social respect. and trust mutual of environment working safe development a their within foster we and people our value We People for Respect future. the for aspirations their share to and customersneeds our satisfy and understand to strive We Intimacy Customer promise. our keep We Integrity Values Our Letter Management Social Report 2007 3 , we have Social Contribution Efthimios O. Vidalis Chief Executive Officer local communities Health & Safety Environment actions were developed and imple- across all stages of our activities in Greece is at work, the concerted efforts of all of us towards our Human Resources human resources, environment safety Chairman of the Board In the area of mented that were based on theSurvey conducted results in 2006. of Irrespective of the its very Employee positive results, Satisfaction such a survey is a source of idearelations generation with for all the continuously S&B improving people. our Moreover, 2007 wasintegration a year of of the further Company’s humanGroup’s resources subsidiaries. systems across the Concerning corporate goal for “zero accidents” continued unabated, as awhich safety result indices of have been continuously improving for many years in a row. This satisfaction, however, was shadowed by awhich fatal happened accident, to an employee of a contractor of ofbauxite operations This Fokida. is incident ours, a in of painful reminder the the long surface road still ahead for the elimination of all accidents at work. Care for the continuously enhanced, with an emphasis on initiatives for the effective andmanagement of in protection biodiversity the main mining sites of our industrial minerals, as well as with very significant investments for further reducing dust we Furthermore, emissions. have efforts to intensified con- vergetheenvironmentalpracticesdictatedbytheCorporatePolicyonQual- ity, Environment and Health & Safety across all activities of the Group. Finally,in the area of our to contribution the made one more significant step in setting up anfor institutional framework our cooperation with them. dialoguestructive with the of We Municipality Milos by have signing the agreement concluded a longfor the but establishment of con- an autonomous development company under the name of “MILOS The Initiative”. purpose of this new formship is of development the the of supporting partner- promotion sustainable activities of the island of Milos, through a form transparent of with engagement the local community. We welcome you to our Social Report of this year, which has the piled with been and the objectivity com- transparency,following possible greatest ofguidelines the As Global Initiative. Reporting you can see, our coverage of the practices and performance of our worldwide activities isously expanding, continu- but of course plenty more has yet to be achieved. We are committed to continue with consistency ourresponsible contribution efforts to for sustainable development. Ulysses P. Kyriacopoulos Economic Contribution Governance & Management Stakeholder Dialogue

his year’s Social Report is entitled our “sustaining future”,to con- vey our conviction that our access to the isresources linked earth’s with inextricably the license”to scarce operate. “social natural

Management Letter Sustainable Development at S&B Equally, it was a year of significant progress in the efforts andof the the results S&B Group in the otherthose relating to two and “society” the pillars which “environment”,to the of Social Re- sustainable development, port at hand is mainly dedicated. 2007 was a strong year for of the development business S&B Group, with robust increases in revenue and profits, with further enhancement of our market positions internationally, with an expansion of opportunities for further growth through acquisitions and new initiatives. As our international presence develops and weleagues, integrate we our expand the systematic new recording and monitoring of col- the performance of all operations in our Group in and theresponsibility, we areas are of challenged corporate to social diffuse and disseminate corporate practices throughout our subsidiaries worldwide, adjusted to local needs and peculiarities. eossetyadsseaial strive for andWeconsistently the improvement systematically continuous of our performance both in Greece, where our environmental and social work is deep rooted and has a long historical tradition andwell as continuity, as in our worldwide operations, which continue to beGroup added mostly to through our acquisitions. Our Social Report is a tool of for accountability the ways we address and manage the commitments mentioned above, documenting and com- municating our practices and our performance in all areas of sustainable development and corporate social responsibility. AlwaysmindfulofthesustainabilityofourGroup,wearecommittedtofos- terourpeople’sdevelopmentwithinasafeworkenvironment,tominimize the impact of our operations on the natural and environment, to gain the respect of the local where communities we operate through continuous dialogueandspecificinvestmentsincommunitydevelopmentandwelfare. T Therefore, our commitment to business development and growth deep into the future, is coupled with the practice of sustainable development, with and accountability This transparency. Report provides to our shareholders and to all other stakeholders our progress and our performance in this continuous This journey. journey of responsible entrepreneurship, that has been part of S&B’s valueits system more all contemporary along, incarnation, expressed continues through today the in three pillars of sustainable development. 4 S&B Industrial Minerals S.A. ot mrc oeigmr hn6%o h ru’ esne n oethan globally. more products and its personnel Group’s of the 80% of 60% than more and covering Germany America Greece, North in operate already through hubs the carrying Such are integration. and Group-wide co-ordinating that by this for hubs importance followed particular regional of The been are systems. formed and has being policies and Safety & procedures Health the Environment, and with systems started internationalization Resources This Human worldwide. subsidiaries all to and procedures systems corporate of integration systematic and gradual Group-wide a by followed is acquisitions, through mainly expansion, international Group’s S&B The years. evolved: few has last it the however, over years, addressed the matter Through a not is responsibility social S&B’s Development. Sustainable to bound contribution today voluntary is its Responsibility to Social Corporate to approach strategic S&B’s utial eeomn tS&B at Development Sustainable au ytmo h owners, the of system value ae ntepersonal the on based rma From fphilanthropy of ihimportant, with u dhoc, ad but initiatives… tradition &’ aus purpose values, S&B’s of oilcontribution social nelne with interlinked t system a …to n business and objectives… taei approach strategic nelne oS&B’s to interlinked t systematic a …to otiuinto contribution Development Sustainable Social Report 2007 5 Social Contribution Health & Safety Environment “S&B’s strong commitment to the on the way to implementation and the end results of Human Resources systematically and comprehensively undertaken by the prevent, protect, restore tainable developmentCompany’s activity and and other activities, achieving such as tourism balance between the Practices Company in these fields Performance these practices The business case forusually Corporate portrayed Social Responsibility usingDevelopment, which at the essentially S&B shows that well-known is long-termfor value triangle the creation shareholders of isphilosophical interlinked, Sustainable abstraction, as to sustainable a development matter practices and the of accountability strategy those and entail. not One of the basic elements ofpresented to the investors refers Group’s to investment proposition as principles of Corporate Social Responsibility and Sustainable Development towards the maximization of the long-term value of the Group”. • Valuing S&B’s people and fostering• their Mitigating development the environmental footprint of the Company’s activities: • Caring for local communities: promoting their balanced and sus- • Human Resources • Occupational Health & Safety • Environment • Social Contribution The Social Reportaccountability & demonstrates performance and communicates what the S&Beach does of Company’s for the above commitment, areas of concern. • • Economic Contribution

Economy Human Resources Development Governance & Management Stakeholder Dialogue Society Value to Customer

Satisfaction

Shareholders

nment

ir Env Care for Society & in the various Corporate Social Responsibility fields of its Environment concern Policies resources: in order to be ablefor to its meet products and, present at and the future same demand of time, improve natural efficiency resources in the use Management Letter Sustainable Development at S&B S&B’s systematic approachCorporate to Social Responsibility and issues is evolutionaryCompany’s reflected Social development every Report, of year published for in thefrom the the past Annual Report. 6 years separately The Social Reportdevelopment covers issues managed all by the relevant Company: • and Governance & important Management sustainable • Stakeholder Dialogue Reporting Strategic approach to Sustainable Development For S&B, as repeatedly stated, ensuring athe sustainable balanced future pursuit requires of economic, environmental andment social through: develop- • • Safeguarding occupational Health & Safety Challenges & Opportunities The key Sustainable Development challenges that• S&B faces Securing are: access to and responsible management of natural The business case for Corporate Social Responsibility at S&B 6 S&B Industrial Minerals S.A. oeo rnilsfrSustain- for Principles of Code • Obliga- and Rights of Charter • Sustain- for Principles of Code • Corporate of Principles S&B • worldwide. subsidiaries all to integrated gradually are these Systems; and Policies Principles, Values, of set a by S&B’s the by as well as exception, no Management with Shareholders Company, all the of of acceptance. interests public development the and long-term responsibility of the social defence is of fair demands System and Governance equal Corporate an S&B by dictated the of objective main on The is emphasis the structure, in changes general from web- apart company’s the site, from available is which revision, this 2001. In in of Principles “S&B the of published first revision Corporate Governance”, S&B which separate booklet 3rd a a with proceed to necessary deemed was it socioeconomic 2007 developments. in reason, this wider For with along evolved has System Governance Corporate S&B’s general. in stakeholders shareholders and the all and Company the of interests the consists safeguarding Directors of while Purpose, its Board according to strategy Group’s the guiding the in mainly of Gover- mission Corporate The the of Principles. trustee nance the as acts Directors of Board The Enterprise. the of Values and Principles the from stem that commitments Company of set a as well as obligations legal overall the comprises System This Governance System. Corporate comprehensive a adopted and developed requirements, has legal any enforcement of the above and over S&B, Governance Corporate Governance oenne&Management & Governance beDvlpet GMEA Development, able SEV Enterprises, of tions IMA-Europe Development, able Governance oprt oilRsosblt susaeefcieymngdtruha prpit raiainlsrcuewihi supported is which structure organizational appropriate an through managed effectively are issues Responsibility Social Corporate Principles Codes & ua eore Manage- Resources Human • Quality, on Policy Corporate • etSse Policies System ment Safety & Health Environment, Policies & Values S&Β Values Improvement Constant elh aey n ult,Isrnerss ea ik,rssof risks risks, risks. Financial Legal and risks, Rights Permit Insurance Quality, and risks, Safety, Transport of risks Health, namely: risks, Environmental risks, arise, Material Raw that risks, Price risks Energy is main which taken the Report, being managing are Risk for measures this website, company’s to the According from Group. available S&B the opera- of the flow on impact cash negative the profitability and statements, financial the activities, significant the tional a have possibly could in that compiled risks the addressing was firm external specialized Report a with cooperation systematic a management, risk Group’s the systematizing about decision Board 2006 a with conformance In Management Risk ikmngmn rcse fteGop eutn rmteinter- environment. the business unstable from national resulting Group, the the to of given processes is management emphasis risk addition, In well. as regulations Greek in the integrated being gradually are obli- that Union legal European the new of gations the to according addressed is which transparency, etfe aaeetsystems management Certified • guid- & procedures Corporate • S 9001:2000ISO 14001:2004, ISO operations Group global of majority the in Safety & Health Quality, Environment, for notes ance Management Procedures Certified & Systems Official Improvement Constant eua eotn codn to according reporting Regular • external and internal Regular • niaosa ru level Group at Indicators Performance and Targets set audits Performance Evaluation Social Report 2007 7 S&B’s Social Contribution . These two coun- , also headed by a top- Germany Health & Safety Environment and one for Committees (Greece, Germany) Management bodies at local level for CSR • Country or Local Plant Managers • Local Health & Safety and Environment Greece Local Health & Safety and Environment Commit- Human Resources operate, one for Corporate Human Resources Division matters (indicators, issues of non-compliance with corporate policies or legislation) ed impact on the business extractive and processing activities arethe supervised and statutory licensed by SupervisingInspectorate in Authorities, Greece, orFinally, similar for major authorities suppliers example in thatness global affect the the operations. are Mining majority monitored of through9001:2000 S&B’s which the core is management busi- implemented procedures by the of Company. ISO tries together represent approximately 57% of theand more Group’s than personnel 80% of Group production worldwide. The levelexecutivereportingtotheCEO,handlesallmattersrelatedtotheCom- pany’s with relations its and employees to the social benefits. personnel’s Among other matters, this Division deals withmentation of the planning systems and and imple- procedures for thedevelopmentofthepersonnel,fortheestablishmentofmodern,transparent continuous training and the systems, application management humanand resources meritocratic of participative processes, as well asresources systems and integration procedures to of the entire corporate S&B human Group. Regular internal audits areEnvironment, Health carried & Safety. out Moreover, yearly every environmentalare audits year conducted in by the third-party(representing areas auditors more of in than most 85%within of Group the total installations S&B framework production) of worldwide, the ISO 14001:2004 certification. • Regular updating of the Group on international legislation and relat- • Supervision of certification in the various• companies of Follow-up the of Group EHS investments • Discussion of significant complaints from local• communities Identification and sharing of best practices Additionally, two tees Economic Contribution (EHS) has Communication Division Management bodies at Group level for CSR • CEO • Corporate Social Responsibility & • Corporate Human Resources Division responsible, among others, which and evaluates selects the best Governance & Management Stakeholder Dialogue Human Resources Committee Pension Plan Committee, Corporate Social Responsibility & Communication Division, Corporate Council for Environment, Health & Safety Health & Safety alternativesforinvestingthefundsoftheGroup’spersonnelPensionPlan. for submitting proposals to the Boarddevelopment concerning of the executives, professional as well assystems for efficient the reward personnel. and benefit • Board of Directors • Human Resources Board Committee • Pension Plan Board Committee • Corporate Council for Environment, Policy-making bodies at Group level for CSR Management Letter Sustainable Development at S&B The internal control system is to safeguardcial, compliance with operational the finan- and risk-management proceduresaddition, the and Group’s controls. financial In statementsworldwide are as audited by well external –third as party– its professionalin auditors, operations conformance with regulatory requirements. The effective operation of the Companypendent system is of secured operational through controls. an inde- Monitoring Organization The The headed by a member of the top-level management team reporting to the Chief Executive Officer (CEO), is responsible forsocial planning policy the and Group’s the environment,coordination health of & all safety related activities. policy This and Divisionpany represents for in the its the Com- relations with external stakeholders andaffairs. handles The all central relevant Environmental Affairs andments Health come & under Safety this Division Depart- as well. been operating since 2005, headed by thesibilities comprises: CEO. Its scope of respon- • Definition of Group strategy on EHS• matters Review of targets and monitoring of Group performance in EHS • The Two Committees concerned with corporate human resourcesoperate at issues Board level: • The 8 S&B Industrial Minerals S.A. tkhle Dialogue Stakeholder oa Communities Local Customers Suppliers & Partners Employees stakeholders The a rudtegoea well. as globe the around eas ar- other to expanding gradually are influence and presence Group’s The Prefecture). Fokida & island (Milos extensive most is activity its where Greece, in significant more is erates communitiesintheareaswhereitop- TheimpactofS&B’sbusinesstolocal ships. relation- long-term close develops it whom with customers, of number small relatively a has S&B services, and products its of nature the to Due etc. horticulture lurgy, metal- materials, building and tions construc- steel-making, like foundries, sectors, industrial various 15 serving solutions specialized 2,000 than more provides Group S&B The world the around countries many to products S&B’s of center export largest the is which in Greece particularly S&B, by service purchased key a also are freights Sea minerals. of transportation the and extraction the in involved providers service are suppliers and partners main S&B’s “Human Resources”). under found be to details them (more workers technicians and were of half than More countries. 14 in employees 2,051 to amounted 2007 in S&B immediateof family The o S&B …of h vlto fSBscoeainwt oa omnte into communities local with cooperation S&B’s of evolution The • continued communities local the with relations and Dialogue • Social in (presented 2006 of 2006). that Report being one recent most conduct- the are ed, Surveys Satisfaction Customer regular addition, In web- sheets, data safety material information, product Through • con- and exhibitions international in participation the plants Through processing the • and mines Group’s the to visits Through • Develop- & Research and Support Technical Sales, S&B’s With • 2007: in continued customers with communication Regular Supply Company’s Department the Purchasing with or Chain as well as Divisions, S&B’s from ple BusinessRegular Development communication and Sales peo- with providing platform state-of-the-art electronic new, a of Operation • (Greek, languages 3 in newsletter corporate of edition Quarterly • congresses, meetings, briefing announcements, Corporate • appraisals performance employee Regular • been having one last Satisfaction Employee Regular the Surveys, • through: continued employees and Management between communication Two-way Talking & Listening 04 otne t operation. its continued 2004, Initiative”, in established “Fokida similar the while Contribution”), in “Social Initiative” “MILOS (see developed the establishment of further the with 2007 was framework institutionalized more a found be Contribution”). “Social to under details (more associations and organizations community local as well as bodies, authority local various through etc. support scientific and technical databases, based etc. Bauxite 2007 Seminar & Alumina 13th 2007, METEC 2007, GIFA like gresses products new for and applications product for support and support technical services, provide to order in people ment systems & policies current Company’s the information on reliable and direct German) English, etc. groups working 2007. during initiated were a practices survey, and measures this of from number findings to response In 2006. in conducted Social Report 2007 9 Social Contribution Health & Safety Environment Human Resources an important stakeholder for the companymining since rights and they concessions provide for access to natural resources, as well as the various permits needed to operate. is based on well-documented Company positions and aimsbuilding two-way at cooperation and information channels. colors & aromas» on the island of Milos with the Hellenicfor Society the Protection of the Environment and the Cultural Heritage Thessaly and «Study of Flora in Milos & Fokida» with the National Agricultural Research Organization and the University of Athens the Board of the Federation and head ofthe Environment. its Working Group for which, since April 2005, is S&B’s CEO. President of whichResponsibility is & Communication. S&B’s Director of Corporate Social Bentonite Association (EUBA) branch of which is being presided by a top-level executive of S&B. Other company executives also participate in various committees of IMA. the participation of S&B’s executives in various committtees. Listening & Talking Regular contact continued through various channels: • ((www.sandb.com) Website • Press Releases and Announcements • Road shows • Annual Bulletin, Annual & Social Report • Service Office Shareholders’ • calls Conference on financial results • State Authorities in all countries of activity of the S&B Group are • Transparent and objective dialogue with the various authorities The most important cooperations in 2007 were: • of Development the and project «With environmental educational • Base studies: «Ghiona Fauna Study» with the University of S&B is an active member of: • The Federation of Greek Industries. S&B’s CEO is a member of • The Greek Mining Enterprises Association (GMEA), President of • The Hellenic Network for Corporate Social Vice- Responsibility, • The – Minerals Association Industrial Europe (IMA), the European • with (Euromines), of Companies Mining Association The European • Various Chambers in Greece and abroad. withRegular communication the media continued in 2007 through: • Press Releases & Announcements • Presentations of Financial Results to financial journalists Economic Contribution tional and/or international coverage with which S&B cooperates and communicates stitutions in Greece and abroad such as: the National Agricultural Research Organization the Uni- versities of Athens,Thessaly, Patras etc. Salonica, Governance & Management Stakeholder Dialogue …of S&B The media include printed and electronic media. S&B actively in participates business associations at nationalEuropean level. and at S&B’s shareholder structure as of March 21,2008, is: 57.4% - Founding family 20.4% - Greek institutional investors - investors 11.9% institutional Foreign 10.3% - Greek private investors S&B’s business is performance covered by Greek and foreign analysts. atPublic Authorities local, national or international level –in alltries 23 of coun- activity of thebut S&B also Group– at E.U. level • NGOs: large organizations of na- • Academia and other scientific in- Media Business Associations Non Governmental Organizations (NGOs) & Academia Public Authorities The stakeholders Shareholders, Investors & Financial Analysts Management Letter Sustainable Development at S&B 10 S&B Industrial Minerals S.A. lrigteCmiso nteiprac ftemnn etrfrtedvlpetadtelong-term the and development the thereafter. initiatives for policy E.U. sector all influencing been mining has and the general, in of industry European importance the sustainability of the in on succeeded 10 Commission Group work Their Hoc 2007. the June Ad alerting The in Commission Group. the this to recommendations of and member conclusions a its submitted was CEO Natural to S&B’s Access Materials; the study Raw Secondary to 10, Group and Resources Hoc Ad the formed, was group working special Environment a Group), the Level and Competitiveness,(High Energy the for initiative E.U. the of framework the within 2007, March In 10 Group Ηoc Ad Sustainable Development. towards dialogue the contribution to S&B’s summarizes below graph The community. business the practices in relevant their principles and such diffusion of the at initiatives aiming in way the Responsibility Corporate Sustainable Social leads principles Development and adopts of and time, supports and same it the associations. At organizations and national and international, European of groups committees working participation in and active its through Development Sustainable on dialogue public the promotes S&B Development Sustainable for dialogue the to contribution S&B’s Εrpa Commission •Εuropean Εrpa Parliament •Εuropean nmn levels many on nepie (SEV) Enterprises Fkd Initiative •Fokida epromote We MlsInitiative •Milos Hlei CSR •Hellenic eeainof Federation •IMA-Europe dialogue •Εuromines •Hellenic Network •GMEA National Global Local Level Level Level Level E.U. Goa eotn Initiative Reporting •Global TeIdsra Minerals Industrial •The soito Sustainable Association utiaiiyReporting Sustainability TeGoa Corporate Global •The oennePrinciples Governance eeomn Charter Development fEtrrssb SEV by Enterprises of eeomn (GMEA) Development nCytln Silica Crystaline on Cd fPrinciples of •Code Catro Rights of •Charter oprinciples, to n Obligations and agreements o Sustainable for eadhere We n codes and •Agreement voluntary Guidelines Social Report 2007 11 69 countries sales in 23 in continents 5 countries across S&Bstartedwiththetraditionalminingactivities,characterizingthelongest part of its history. In the 1990s, S&B shifted its business model, focusing ongainingknowledgeandexperienceaboutitsproductsandthemarkets served by them. It also moved selectively towards vertical in integration, order to serve the end-use markets for some of its products. Today,S&B’smodelisfocusedonacquiringknowledgeandexpertiseabout the of end-use applications its Thus, products. it can provide customized market-led industrial solutions based on industrialvalue minerals, to that the add product performance of processes. industrial its customers and improve their 79 centers distribution installations and

mines

onre foeain ae onre fsales of Countries sales & operations of Countries The expansion of its business activities has been the result of conscious strategicmoves,partnershipsaswellasexpansionintoverticalintegration, whichstartedinthelate1980sandhasbeenintensifiedinthelastdecade. Evolution through time The S&B Group has a history of 74years. It started with twopanies, mining com- Bauxites ParnasseCompany S.A. S.A., and and with the Silver vision of &eral its wealth Baryte founders of Greece, to particularly develop Ores that the of Milos min- Mining andbuilding Fokida. on Since its then, long-term continuous development, S&B has becomemultinational a Group, with more thanacross 5 40 continents. companies in 23 countries Economic Contribution 12 S&B Industrial Minerals S.A. npriua,sre,wt t rdcsadsrie,mr hn15 chart), than related the more in shown services, (as worldwide and sectors industrial different products its with Group, serves, particular, S&B The in of. ingredients are they they products which the environment, to “lend” the also for properties friendly many have Furthermore, environment. minerals the for harmful is which materials, of non-natural use other the replace often quite they en- the as of vironment, protection the to in- contribute actively Moreover, can sustainability. minerals dustrial and competitiveness their on in- impact important decisive other and direct of a having series thus products, a and applications dustrial for materials raw necessary the are general in materials extractive non-energy the and minerals Industrial life. everyday in used products many not of duction are form, pro- natural the for their necessary absolutely in are used they though often even recognizable not are they that fact the to extractive products, due The people. most significance to apparent not the is minerals, which industrial of of that sector, a in active is S&B Development Sustainable to linked Naturally distributed shareholders €9.6 million to compensation to various €74.7 employees benefits million and in h motn n aidbnft eutn rmteepotto of exploitation energy. the geothermal from resulting benefits varied and important the about Milos of community the inform open to aiming an dialogue sincere holding and to committed have they decisions, final before any Hence, prerequisite. taking necessary a local is the island by the acceptance of its community that believe parties realization both project, the this For Milos. of of field geothermal the utilize and operate explore, jointly Power to ultimate goal Public the Corporation with Renewables S.A., the with signed was Understanding of a specifically, Memorandum More Energy. Geothermal of that activity, business ly op- environmentally friend- new, a an into develop up to opening Group the taken for portunity was initiative an 2007, November in Also, the improve and sectors. these all products in customers the its to of processes industrial value add solutions industrial customized 2,000 than more Its others. and horticulture, metallurgy, materials, building construction and making, steel foundries, as such €371.6 to of suppliers l kinds all million for €36.9 contributions and taxes social , million duties Social Report 2007 13 million Social Contribution net profit €23.0 continuing operations Health & Safety Environment million Human Resources Group net profit €26.7 business activity, through the signing ofstanding a with PPC Memorandum Renewables S.A. of with the Under- ultimate goal to exploit, operate and utilize the geothermal field of the Milos -gos Kimolos - island complex. Polyai- • Carve-out of S.A. the subsidiary MOTODYNAMICS commercial The total sales consolidated revenue of the S&B Group reached €535.4 millionin2007,higherby17.5%versus2006.Thenetprofitsreached€26.7 million, while after deducting minority rights they stoodcreased by at 16.2% from the €25.7%, previous financial year. in- Forthecontinuingoperations(afterthedeconsolidationofMotodynamics), which form the basis of for comparison the future, the 2007 sales revenue was by increased million, €448.7 19.8% from 2006, while profits after taxes and minority interests were €23.1million, up by 18.4%. The Industrial Minerals comprise activities 94% of the sales. operations continuing Capital expenditures of the S&B Group within 2007 stood atlion, €29.4 including mil- additions to fixed assets, expenses for exploration, mine development, tunneling and stripping, while another €38.8 million were invested for the acquisitions concluded in 2007. It is important to note that, for the continuing operations, theachieved, Group over has the last decade, compounded averagerates annual in its growth basic financial figures as follows: • 15.5% for sales • 13.2% for EBITDA • 14.9% for earnings per share Economic Contribution million sales continuing operations €448.7 Governance & Management Stakeholder Dialogue million sales total Group €535.4 ocsinforconcession a total of 300 acre mining area. Ltd, for the supply of tons 1.1million of Greek bauxite and for10 a years total to of an alumina refinery under development, south ofin Jeddah Saudi Arabia. a new spray dryer coming on stream in mid-year the German plant and decision to double the capacity of the plant in China. minority interests. B.V. ternational Neuss, Germany. Hill & Griffith in the U.S.A. regionofSardinia,whichisexpectedtobeconvertedtoafull,long-term Management Letter Sustainable Development at S&B Looking to the future, S&B aims for further dynamic businessgeographical development to areas, new new specialty markets and newworldwide. Its applications of vision its is products to becomenies in one the of world, while the at leading the same industrialsustainable time minerals development. investing compa- in its responsible contribution to • Preliminary agreement with Western Way Industrial Development Co. • SignificantincreaseofproductivecapacityintheStollbergDivision,with • PotentialentranceoftheS&BGrouptoanewfriendlytotheenvironment • Acquisition of a 50% share of the company Holland-based CEBO In- • Acquisition of a downstream processing plant for white bentonite in • Acquisitionofthebentoniteandlustrouscarbonprocessingactivitiesof • ControlandtemporarypermitforoperatingabauxitemineintheAlghero Important 2007 business include: highlights • increase in 17.5% sales revenue and 16.2% increase in net profits after For the S&B Group, 2007 was a strong year ofThe had Minerals activities Industrial economic solid development. organic growth in a robust mar- andket in through acquisitions further Moreover, setting. investments the existing businesses, the Group was able tomarket strengthen its positions competitive in mostinitiated on mineral new that opportunities will segments. be addressed further in In 2008. addition, work was 2007 Economic Performance 14 S&B Industrial Minerals S.A. n20,teepoe unvrrt fteCmayremained Company the of 3.4%. rate at low turnover relatively employee the 2007, In Directors. of Board the of members the of four are so and women, are S&B management of team top the members of ten the of out three Furthermore, women. of employment the favour especially not Companydoes the of activities mining the of nature the although women, were people its of 20% 2007, nearly employees. In its development of career planning the in positions covering vacant and in sexes, both for opportunities equal of offering treatment and equal the supports S&B Minerals Industrial in Total Turkey Morocco Spain Hungary India Italy Brazil France China Georgia USA Bulgaria Germany Greece workers. and technicians 58% and personnel 16% Group), administrative the 25% executives, of professional employees and management of are number total rep- the (which of 89% Activities resent total Minerals the Industrial of the Out in employed Bulgaria. contractors’ number and China as Greece, activities in mainly company personnel, in employed indirectly persons 550 were than more Moreover, Africa. as well as America and South North Asia, Europe, in countries 14 in Greece, of em- outside were ployed Minerals which Industrial of 64% S&B globally, of persons 2,051 employees counting Activities the found 2007 of end The S&B of people The Strategy. the and Corporate of Values the Values with Vision, re-aligned and and Mission revisited were Purpose, Department the Resources Survey 2007 Human in Commitment Moreover, Employee of 2006. the year in following a conducted plan and action subsidiaries, an the of man- in resource implementation procedures human corporate company and the of systems incorporation agement further of year a was 2007 Resources Human 2,051 280 436 732 144 112 23 23 45 46 52 57 93 4 4 esne Distribution* Personnel aarfrt esne fIdsra ieasActivities Minerals Industrial of personnel to refer Data * Social Report 2007 15 cess Pro on ti uc nd e I th of on ti ua al Evaluation of the Induction Process Ev Welcoming of the New Employee 3 Preparation of Welcoming the New Employee 2 1 scope of the Department bilities in the new role and the performance expectations organization and policies through an interactive presentation. Company’s production facilities as well as lunch with the CEO. • Presentations of the organizational structure, the products and the • Detailed discussion with the employee regarding his/her responsi- • Meetings with colleagues and associates both inside and outside the • of the new with Familiarization employee the systems human resources • Visit of the new employee to the Group headquarters and to the Step 3: Evaluation of the InductionFour months the following Process hire of the new follow-up structured employee, discussions are conducted between the new employee and the supervisor, and the new employee, the supervisor and the Human Resources departmentseparately,inordertoassesstheintegrationoftheemployee. Always seeking to create bonds with young people who haveademic S&B background, good closely cooperates with ac- renowned Greek and European The Universities. Company organizes internships and visits of university students at the Company’s facilities, conducts company presentations and in participates systematically Career Events of academic in S&B games business participates i.e. or Furthermore, other institutions. by teamsthe Challenge of sponsoring Global The Management students. practicesaforementioned offer to students the opportunity to familiarize themselves with the company activities and allowyoung S&B persons who to might be affiliate part with of its future human resources. Step 2: Welcoming of the NewDepartmentalinductionaccordingtoapredefinedprogramwhichincludes Employee theindicatively following: Step 1: Preparation of Welcoming theMeeting New with Employee the supervisor ofprepare the the new welcoming. hire in order to support and The program induction is before initiated the first employee’s day at work and is 4 completed months after his hiring. It includes the steps: following New Employee Induction Program Furthermore, an induction program ofconducted the aiming at newly a smoother hired and employees more effective is integrationjob in and their in the S&B family. h mlyeslcinpoesicue h vlainof the the includes evaluation process candidates’ The selection employee competencies necessary for the attainment of the specificments job and require- of the strategic goals of the Company, andthe the to candidates’ capabilities respond evaluation to of the challenges of the business alongenvironment, with their affinity to commit to the values. Company’s and This the includes of questionnaires procedure completion personality capability tests which, together with structuredcomplete view interviews, of provide the candidates’ a profiles. The Company has developed reliable selection tools, specially designed and tailored to the needs of S&B, while the candidates’ applications are handled throughout all the stepsthe of HRMS (Human the Resources process Management System) exclusively platform. through Recruitment and Selection The recruitment and selection of personnel isS&B, a as significant the process Company for places especially strong emphasis on matching the candidate with the job offered, soand that their both expectations fulfilled. sides can be satisfied 16 S&B Industrial Minerals S.A. vlae,termi civmnsrwre,tertann needs training determined. plans their development their rewarded, and diagnosed achievements main their evaluated, is employees of performance the Human which com- on “Best and based petencies-behaviors, goals a specific uses awarded 2005, KPMG was - Company prize Initiative” Resources the which for system, This general. in market the of and Company the of needs changing the an System applies praisal and developed has S&B Appraisal Performance h o vlainpoes h efrac pria n h com- the and appraisal performance the process, evaluation job the h comprehensive The management resources human level. in Group at flexibility each some in prevailing require obligations country, and conditions legal and labor the as specific well as cultures, local varying the work, of type and specialization level, educational of different terms in countries, the various resources, the in profiles human employee S&B of dispersion geographical The Systems Resources Human frame- institutional area. and each legal of conditions local social the the account and work into taking adapted be also itmust Resources but human principles, Company to Human common approach on The uniform based active. certainly is is one management resources it apply where regions globally the all to in System aim Management not does Company The hc srglryrvee n dpe nodrt meet to order adapted in regularly reviewed and is which , “WHAT” opn ua eore System Resources Human Company “HOW” Vision Strategic Values nertdPromneAp- Performance Integrated Goals Structure including , Professional Capacities Personal Goals uigti rniinpro,a ela ihptnilprofessional potential with as well S&B. as support outside opportunities with period, them transition provide this to during order in consultants, specialized with cooperation in programs, outplacement redundant made be may who employees offers Company the restructuring, organizational of times In Program Outplacement rsca conditions. institutional social local or the time same the at respecting while country, requirements each legal in by set standards the beyond go clearly which tices, prac- and principles Company’s the with consistent up, set being sively progres- is framework employment an areas, geographical other the In America. North and France Germany, in seated, from is Group apart S&B the applied, of administration corporate being the where Greece already is systems benefits and pensation Roles

d P r la a n w n e Resources i n R Systems

Human g

i n

l e

a m

v e E n t Social Report 2007 17 Social Contribution Health & Safety Environment Human Resources maceutical insurance; group goals, especially for the management staff. or technical staff. • A to and/or linked of bonus yearly directly the individual achievement • A premium or productivity other pay incentive for the administrative • A scheme profit-sharing for S&B’s personnel. • A stock option program for senior staff, in place since 2001. Moreover, in addition to the above various formspensation, of S&B monetary offers com- its employees a series ofsuch additional as: benefits, • Additional Programs for in-patient, out-patient and medical-phar- • of Life/Accident/Loss Income insurance; • Company Pension Plan; • Preventive medicine and check-up programs. These benefits are gradually implemented to all company operations abroad N. (Germany, America, Bulgaria etc). Resources Department, individual as is plans offered either aredevelopment accordingly.Training designed well as group trainingwithin and the Company or through selected educational bodies outside the company. Within the framework ofnances, its under training specific terms, policy, long-term the programs for Companydevelopment professional and also specialization, such as fi- under- and post-graduate studies in business related subjects. In 2007, within the efforts made for theemployees, a continuous development series of of training sessions onresources systems the and company’s labour issues human in general were conducted inhouse by company human resources executives. The trainings were interactive, with various role-plays and case studies, for the in-depth comprehension of the theoriestrainings, and which principles were presented. evaluated These bycessful, will the be participants conducted at as other very company sites suc- within 2008. Economic Contribution Governance & Management Stakeholder Dialogue salaries, velopment. Management Letter Sustainable Development at S&B In addition to the basic part of the compensation, veloped and Company grants has its de- employees additional variable pay including: S&B’s systems for and management the development determination, trans- by possible the highest pay are levels characterized of appropriate parency, objectivity and consistency. The Compensation System’s basic objectives are to: • assure internal consistency and meritocracy in the employees • offer packages remuneration competitive in relation to the market, • safeguard and reliability in objectivity salary and administration de- Within the framework of S&B’s comprehensiveManagement Human Resources Systems, three Local Reward intoday the one Group: in one in and Committees Greece, one Germany in the U.S.A. operate These committees meet at least once per year. Compensation and Benefits In 2007, a two-day in-house training workshopand with Germany the was participation conducted of by 35 Professor S&Bguished Ben executives academic P. Shapiro from specialized of Greece on Harvard marketing Business & School,cessful sales USA, pricing strategies. a and The distin- the subject “Value of to thethe Customer” workshop proposition. feedback was The received the workshop by suc- was the very participants. successful according to Focused Training For the management staff in the particular, diagnosis of their training needs and of their competenciesdeveloped is and achieved behaviors mainly that through the needAppraisal System integrated used to Performance by be the are Company. Weaknesses assessed and These needs the are are between training ap- discussed identified. praisee and and, his/her supervisor, with the of assistance the Human In 2007, about 14,500 training hoursmany were and offered N. in America, Greece, corresponding to Ger- approximatelyof 18.5 training hours per employee. It should be noted thatious this trainings year were again held var- for contractors’ employees as2007 well. special During emphasis was againsafety, given foreign to languages and environment, to health management & issues. The Company is committeddevelopment to opportunities, offer with its the employeeshas belief a training that positive targeted and effect both training onof the its motivation employees. and the effectiveness Training and Development Work-Life Balance Program

Moreover, S&B understands the importance of non-monetary fringe Some other initiatives such as the payment of personal bills through a benefits for the satisfaction, motivation and effectiveness of its workforce company employee, the Vocational Guidance offered to the children of and, thus, the company offers a series of benefits aiming at helping its employees, the installation of car-wash facilities, the modern equipped employees for work-life balance. gym constitute more recent benefits aiming at reinforcing the feeling of security and at helping company employees save time from everyday In fact, S&B was awarded with a “Best Human Resources Ini- tasks. These initiatives are still restricted to employees in Greece. tiative Prize - KPMG 2007” for its initiatives in the category of Work-Life Balance practices. Within the framework of promoting work-life balance, the Company encourages and supports employees to participate The various possibilities offered to employees through the Work-Life in athletic and cultural events. The Company’s participation Balance Program touch on the following issues: in the 2007 European Corporate Games was once again note- • Welfare Management & Development worthy with 23 colleagues-athletes from Athens, Milos and • Flexible working arrangements Fokida competing in 3 events and winning the silver medal • Health & Fitness in table tennis. Worth mentioning is also S&B’s participation • Family in two marathons during 2007: the Duisburg Marathon, in Ger- • Daily Services many and the Classical Athens Marathon, in Greece, where Some of these benefits have a long history at S&B, strengthening its 13 and 5 colleagues participated respectively. social policy and creating an additional feeling of security and safety for the company employees.

S&B Repatriation Model

• Identification of expatriation need • Succession of the expatriate in his current position • Specify duration • Practical relocation issues e As • Determine remuneration package and cost as In si • Integration and adjustment h te gn P gr m Roles and Accountabilities n at of the expatriate in his new role ig io e s n n t e P a D h n a s d

Repatriation

s Strategy

h m

o m

a g n

m i

• Home country re-entry t • Performance management n

n e

i -

n e

t • Exploitation of expatriate’s R • Assignment extension know-how and expertise

Expatriation Policy

The geographical expansion of S&B globally has created the need for the The Expatriation Policy of S&B aims at determining for each expatriate, relocation of some managers abroad, often in faraway locations such as an appropriate package of remuneration and benefits that will help the China or Brazil. The relocation of professionals who are able and willing expatriated employee and his/her family maintain their standard of torelocatetonewgeographicareasoffersthemtheopportunitytoexpand living and their work-life balance. their professional horizons and enrich their experiences, while for S&B it constitutes a necessary prerequisite for the speedier incorporation and Regarding the determination of the remuneration package, the Com- integration of all the companies within the S&B Group and, also, for fur- pany cooperates closely with an internationally renowned consulting Industrial Minerals S.A. ther expansion of the Company internationally. It should be noted that company, which offers all necessary information regarding each coun-

S&B in 2007 the number of expatriates in S&B came up to 14. try of expatriation such as cost of living, special living conditions etc. 18 Social Report 2007 19 Social Contribution Mentee Training Meeting Initiation Definition & Action Plan S&B S&B Health & Safety Environment ing at at ing Report Mentor Training Meeting Progress & Mentor Coaching or nt MentoringMe at Human Resources Program Program Planning Evaluation as an international player in industrial mineralsted highly to commit- the health and safety of itsof employees and the the environment. protection In May 2007 the presentations of the resultsall were completed in 20 locations wherethe the analysis that Survey spotted the was development areas conducted, incountries and following the the various local sites andal the actions that determination were of decided by remedi- the Top Management Team. The presentations were made by the head in eachcooperation location of with HR the executives, and they were followed byments com- and discussions on theactions results. which Out were of defined, 9 the have 25 beenstill finalized remedial in while 16 process are with 50% of the work having been completed. operate in line with Corporate Values, culture,dards, commitments, stan- policies andemployees, practices, with which nofundamental are human rights, as exceptions, binding well as principles for and andS&B’s rights all at corporate pertain work. culture S&B has tohuman no rights such tolerance respect as for forced or violations for compulsory labor,cise of the freedom of right association or basic to collective bargaining, or exer- of child labor, neither has there been any such case in any of its operations. Economic Contribution Governance & Management Stakeholder Dialogue Management Letter Sustainable Development at S&B Human Rights More specifically, the results portrayed the positive imageemployees that have for the Company asterprise a which customer-oriented en- provides high-quality products and services, The main conclusion of the survey, in which more than em- 1,200 ployees participated worldwide, is that S&B’see overall employ- commitment is ranked which isbenchmark, of comprised at 160 and companies more than the top1.4 33% million respondents. of This ranking the reflects the worldwide highment commit- and overall satisfaction of the employees. 2007 was the year ofEmployee the Commitment communication Survey and results analysis thatFall of took of the place 2006. in the Employee Commitment Survey Initiatives to Retain Talents: Mentoring & Interdepartmental Project Assignment Over 80% of the S&B people are employed in countries that endorse the International Labor Organization’s (ILO) Declaration onmental Principles and Funda- Rights at Work (1998), having ratified the eight relevant “fundamental” conventions. In effect, this means that these countries have harmonized their legislation tothese the ILO conventions. requirements In of countries of S&B operations, such asna Chi- and India, that have not harmonized their legislationS&B accordingly, Country Managers are responsible for ensuring that facilities The aim of the Interdepartmental Project Assignment initiativethe was participation of young executives in projects that lay outsidescope of the their in department order to get a view, broader organization cope with new challenges, enrich their knowledge and expand their horizons outside their area of expertise. The Mentoring initiative at S&B was based on theveloped GROW model by de- John Whitmore.and Hence, out Mentoring of the was reporting a line relationshipployee) structured between and the the Mentee Mentor (em- (Senior Manager fromMentoring a was a different process Division). driven by the Mentee,his/her aiming at specific covering development needs,knowledge, while information the and advice Mentor based provided onMentoring did his/her not replace experience. the Supervisor-Subordinate relationship; however, it was a complementary and highly confidential process. In 2007 S&B, within the continuous effort for the further development of its employees, launched the Mentoringment and initiatives. the Project Assign- 20 S&B Industrial Minerals S.A. h agto h e prahtowards approach new the of target The pyramid the of base the at Aiming machinery. and tools of handling incorrect machinery,• of parts mechanical moving uncovered • heights, at out carried work from: deriving • installations, industrial all in occurring those to similar are plants processing minerals in identified hazards usual The explosives. of use the underground of • roof the or slopes pit open from rocks of machinery, fall - the vehicles other • and are heavy-duty of mining movement the underground • and surface with: in associated hazards principal The system. safety S&B’s core of the at are management their for taken company be to need all that measures for the and hazards occupational Assessments the of evaluation proper Risks The activities. Occupational the regularly and revising developing minerals of course the the in of evaluated thoroughly that and as identified are well which hazards, as occupational inherent work has processing extractive the of nature The in out mines. carried the is to minerals close the facilities of Processing an at pace. underground increasing mined ever is bauxite while mines, pit place for open takes in S&B mainly drive” by produced “safe minerals industrial of extraction of The become program they training before special Misses a Near drivers. of truck reporting launching in the Group, and the accidents, within mobilizing and people training all the of were developments important particularly 2007, For a nices nrprso ermse y15 fo 6t 99). to 46 (from 115% by misses near of there reports 2007 in increase in an that was noteworthy is It prevention. accident in workers sensitization of and mobilization the of indicator another is pyramid– misses near Reporting practices. behavior adja- of the ment improve- in and conditions shown unsafe (as of “correction” “pyramid” with drawing), accidents’ cent the of aims bottom It the workplace. the at of in target incidents the any and mid-term, eliminating the and overall expect- minimizing over is reinforce, the and and field, complement Safety of to & ed Health part lowest-grade the in is the made effort initiative to unceasing additional the down from This ending starting and employee. S&B, Officer for Executive a working is Chief all them apply of to in responsibility obligation activities uniform the Group as all well in applied as Participation fully Greece. are stage this at innovative utilizing which work, tools at behavior safe “climate” of a create to is elh&Safety & Health drives, alvlu rmtevr otmo the of bottom very the from up level –a eairbsdsafety behavior-based hnigteattd n eairo mlye oad safety towards employees of behavior and attitude the changing • with procedures, of: and and aim introduced methods the has proactive Company new the additional years applies with recent dealing in of issues, ways safety conventional mentioned above the Beyond Safety. & Health on employees its of training Continuous • procedures, improving constantly and maintaining Establishing, • working safe improving constantly and maintaining in: Establishing, significantly invests • Company the above, the achieve to order In Safety & Health places that from consciousness activities, work all a in Inspiring work • at value, Safety non-negotiable & a Health Safeguarding is • below: Safety listed challenges & primary the Health dictating that states Safety & Health clearly and Environment Quality, on Policy Corporate The lc so rmr motnefralSBpol n sreflected is and for people target corporate S&B the all in for importance work- primary the of in is hazards place various the of minimization or elimination The susa work. at issues methods. working safe and instructions conditions. else. anything above transportation. and processing their to extraction minerals’ 1,000,000 At rmdcltetetcases treatment medical or 100,000 10,000 1,000 ikconditions risk 100 10 Zr Accidents” “Zero iaiiyinjuries Disability ottm injuries time Lost 1 etitdwork Restricted is-i cases First-aid fatality ermisses Near at - ikbehaviors risk . Social Report 2007 21 Hungary Environment Social Contribution facilities, the majority of Health & Safety Milos The vibration measurement program with In perlite expansion plant, a series of measurements Bulgaria, where an investment program is being Human Resources perlite plant, as well as at the bentonite plants in Ritsona France. At the Sardinian perlite plant, in some cases the dust Germany, measurements of inhalable and total dust were taken at the inhouse instrumentation was initiated in 2007dance in with Fokida. In Presidential accor- Decreemachinery were 176/2005, measured 44 and earth-moving measurements will2008. heavy Most continue measurements were through made on operators of heavyery machin- and other vehicles operatingcases in measured exceeded underground marginally mines. the 55% action-taking limit ofby imposed legislation, the and mainly concerned old equipment.are Given factors in that the there methodology of the measuringconsidered procedure, which to are have negatively biasedmeasurement procedure the is measurements, planned to the be entire re-examined ontative a sample of represen- equipment. At the same time, theing possibility of the improv- seats of the old machinery / vehicles will be studied. A relatively small number of measurementsand, was hence, carried the out on sample Milos isbe considered drawn. insufficient Most for of conclusions the measurements to are scheduled for 2008. and concentration was found to be above limits andbe measurements are repeated to and corrective measuresments will have be been taken. and continue Dustinstallations to measure- be in carried out atimplemented for the the Company’s improvement of the work environment. Vibration measurements: Dust measurements: measurements demonstrated substantialdust level improvement, standing at with considerably lowerby the levels than legislation. those In specified observed, the corrective very technical fewcomplete measures conformance instances to were the legislative where taken, requirements. resulting deviations in were At the was carried out,majority showing of measurements improvement wasde-dusting within over system the is past official planned(budget to results. limits be €80,000). and installed The a in new the course of 2008 In all Company plants. TheState BG. measurements Results showed were that in undertakentially all below cases by the inhalable levels dust the specified is by substan- unit legislation, except at for the one Stollberg bagging planttemporary (which position is undergoing in revamping) a andplanned bentonite one to plant. be The equipped Stollberg with aequipment, plant at central a is de-dusting cost of also and €120,000. Moreover, floor at cleaning thea Neuss de-dusting Otavi plant system was installed usingwhile at air-vacuum the (cost Essen €25,000), plant a de-dustingbe system with installed water (budget sprinklers €50,000). will Dust measurements in the work environmentSardinia were also taken at the 17 41 60 24 216 102 264 557 372 929 205 Economic Contribution In ’000s € In ’000s € , noise levels were Germany –particularly in operators of earth Governance & Management Stakeholder Dialogue Fokida From the measurements carried out in Management Letter Sustainable Development at S&B Total GENERAL TOTAL Noise measurements: In certain work positions in Personal protective equipment Other expenditures Monitoring of work environment Milos, it was found that the actualthe exposure use of of workers Personal to Protective noise, Equipment, with isvalue lower (after than the the Presidential instituted Decree 159/2006) ofing 87 places. dB(A) Within at the all scheduled work- plan ofthe further reducing fan noise levels, ventilators atnew the ones Kannava and, also, drying the plant specificationsrevised for were so new as replaced machinery to have with comply been with the legislation above. Fokida 2007 Total Milos 2007 Bentonite processing plants Perlite processing plants Open pit mining works Work environment Health & Safety investments Total Health &amounted to Safety €929 thousand, almost investments double€475.5 the in amount thousand. for 2006 2007 of (for Greece alone) Performance in 2007 The data presented cover the Company’s activitieswith mainly partial in reference Greece, to the activities and performancesubsidiaries. of the Group’s Processing and loading facilities, Itea Personal protective equipment Other expenditures mapped and a relevant riskthe assessment Bentonite, was Stollberg made and for Otavitotal. all divisions, plants It that of is was at found nineexposure plants limit, that in while in in high all noise-leveltective instances work equipment positions there is personal provided. is pro- no excess of the In the Company’s installations in moving machinery– the noise levels imposed by legislation were found to be exceeded. To this end, noise measurements in thevehicle cabin undergoing of repairs every are planned toafter be the made, repair both work, before with and themaintenance objective work of and measuring evaluating the the need effect for of further measures. the 22 S&B Industrial Minerals S.A. n20,tann a ie n plcto a ntttdfor instituted was application and well. given as plant expansion perlite Ritsona the was at Visits Safety Management training 2007, In conditions. risky which to to 25% 17% in practices, and unsafe 2006), behavior to risky in attributed were 208 observations (versus the of shop-floor 59% the in positions Visits working Safety Management 238 in Fokida, and Milos in place: methodology, took specific following the this 2007 of basis the On that actions respective the subse- taken. of be and, to implementation need change situations the work plan organizational unsafe to some quently, identify or to order correction in requiring issues, in Safety con- employees & all the of Health is involvement methodology continuous and new participation the scious of prerequisite fundamental The practices safe/unsafe work quantification of the Barometers for methodology Safety specific • a using Investigation Event Safety • (MSV’s) Visits Safety tools: Management following the • account into takes Report) Social in 2006 the (presented in safety detail behavior-based towards methodology new The Behavior Safe bolts support. roof rock sufficient of circumstances grid all installation in above guarantees actual the used to the despite order found, that, in stressed failures be used, mentioned should method It failures. bolting any to the minimize faces, planned of adjusting is number and greater it cases a 2008, on re-evaluating the For measurements of of installed. 15% number be the in to double and required meas- 2007 were 65 bolts during works. new out underground carried of were safety and of anchoring urements bolt’s degree of the degree and increase the stability check to to reduced aim of the formations baux- with rock cohesion, underground in in especially bolts and rock mines of ite torsion the measuring for tiated torsion: bolt’s rock of Measurements fronts. specific limits the in where work – stop an correct or instances to conditions as 2006, the the so instantly of in intervened 14% supervisors 914 the In – exceeded to 52.5%. were of compared is, mines, that underground increase, the in were gasses taken noxious and air-supply gasses: of measurements 1,394 noxious of of total A and ventilation adequate of Measurements eepi oepoesa their at employees to paid were n20 rga a ini- was program a 2007 In rcdr o ulspl fhaymcieyi negon mines. underground in machinery heavy of supply fuel for Procedure • under- in situations emergency handling for Procedure-instruction drivers • transport for seminar sites driving dumping Safe at • trucks of situations unloading emergency for handling Procedure in • operators – well drivers as of foremen Training for • goals the safety yearly following of below: taken Institution listed indicatively • measures are investigations the the these of of of plan Some action and applied. be procedures to in need changes that measures corrective the and Investigations Event 20 implemented. are analy- measures after necessary level, the low causes, a the at of be sis to found is this safe- Wherever with instructions. compliance ty employees’ require- of safety quantification crucial the permits every each ment of for recording and specified of Observation requirements degree unit. safety work the crucial record Barometers the Safety with The compliance 2006. in 446 to pared Barometers Safety 1,751 2008. of course the in effected be there- to adoption the decided 2008, was April of in and, facili- evaluated Company’s was the Germany at in ties Visits Safety of application the Furthermore, the for taken; future. immediate been the for scheduled already are actions remainder, have measures were actions appropriate corrective which required, for findings, inspections’ instructions. these work of and 60% procedures relevant company with with only also not depart- compliance, but Safety legislation ensure & to Health purpose central the the with by ment, and Fokida and Milos of engi- safety neers the by both held, were audits internal year, every as 2007, In Audits Safety & & Health Health Internal central the of as well as department. underground Safety of foremen adapta- and involvement the the engineers for with study mining method, the standard to under- the devoted bauxite of was tion of year full characteristics A geotechnical mines. special accepted ground the to internationally an classifica- adapted on method, geotechnical based of This is work mines. system difficult tion the underground in in assist support classification to roof rock classification: expected geotechnical introduced, a mass 2007, was of system months rock three last the geotechnical In of Measurements rudmns eea frsu qimn n prpit training appropriate and equipment rescue of renewal mines, ground o dniyn h otcue fincidents of causes root the identifying for 109i oiaad72i io)com- Milos) in 742 and Fokida in (1,009 Social Report 2007 23 Environment Social Contribution Health & Safety Human Resources ated and possible weaknesses are identified.ing The same is train- repeated in2008 a the real program roadFokida trip will employed during be by working S&B, extended hours. whileplanned to for its In Milos. application all is truck also being drivers in Economic Contribution Governance & Management Stakeholder Dialogue - Truck loading in underground mines - Prevention of uncontrolled explosions during- drilling-charging Industrial in noise underground and mines noise protection - Training of electricians in cases- of Safe short-circuiting handling high-voltage of cables explosives - Instructions for safe scaling and- use Training in of dealing explosives with underground emergency- situations, Correct while explosives using charging machinery in underground open- pit Training of mines the and team use dealing of- with appropriate Roof emergency PPE stability situations, during holidays - Training on forklift operation, personal- protection Fire equipment drill and management safety- visits. First aid training - Safe work at heights - Load lifting (manual and mechanical) - Contractors’ work and safety - Truck unloading at crushing station feed silo - Safe truck unloading at bauxite field stocks and feeding silos in Itea facilities - Work safely for sun field drying of bentonite 41 3,687 3,587 Management Letter Sustainable Development at S&B Fokida “Safe Drive” training In November 2006, a novelin training Fokida, program with was the introduced objective assistance of safe of driving. an A start externalers was transporting party, made bauxite and with from 20 the the truckpractical mines driv- part to of Itea the facilities. program The comprisesulator, training where using individual a driving sim- behavior is recorded, evalu- Ritsona Central OfficeAthens 340 The Table below shows the training hours for Company personnel andLocation contractors’ personnel, along with theMilos main subjects covered. Man-hours Subject Health & Safety Training The of publication three new Health & Safety booklets is2008 planned for three concerning risky in activities bauxite underground mines: ofscaling, and transport explosives. drilling-charging h ulcto of in new 2007, The & continued Health publication booklets Safety with a brief but important leaflet titled: “Care safetycolleagues’ for – your Report and Near It Misses”. your was translated into 11 languages and was distributed toaround the all world. Company employees Health & Safety booklets 24 S&B Industrial Minerals S.A. aeyPromneIndicators Performance Safety Frequency: Severity: ubro otwr asx10 days work lost of Number ubro ciet x10 accidents of Number 6 oa ubro okhours work of number Total / 6 oa ubro okhours work of number Total / novn rvro ulcuiiytruck. utility public (2005) a accident of con- driver traffic a a 1 of involving and worker supervision, a own to with (2005) tractor fatality 1 occurred also There accidents: Fatal injuries: Grave and are: injuries These grave accidents. very fatal contain not do diagrams above The 18) 18) (1994) 1 (1982), 2 (1980), 1 18) 20) 1(2007) (2003), 2 (1986), 1 Social Report 2007 25 Environment Social Contribution Health & Safety Human Resources The evolution over the years of accident frequency and severity is shown in the figures opposite. It should be noted thatCompany the employees, and indices shown employees of cover contractors, who do not have their own supervision. Additionally, thesevere accidents and indices fatalities, which are do reported separately. not include very At Group level, the recording of theof same indicators subsidiaries in all installations hascorporate continued, data appear and in a thehowever, figure opposite. in first It this should preliminary context berecording, that mentioned, as relevant well the as differing dealing with manner accidentsboth in of by the the counting worker different and countries, and by the competentnumeric authorities, differentiate result the of safetythus, performance do from not permit country reliable direct to comparisons. country and imports and trades. Furthermore, under currently valid provisions,Company’s the products do not require It “authorization”. isthat since emphasized, 2006 the Company is in communication with itsensure Suppliers, to that theprocess materials would be available purchased and in compliance and with the Regulation, pro- usedviding also, where necessary, the in required information for their the inclusion in production the risk assessment. AtSheets the are being same updated as time, stipulated by the the Regulation. company Safety Data Economic Contribution Governance & Management Stakeholder Dialogue Management Letter Sustainable Development at S&B The Company followed up the evolution of the Regulation up to its adoption in December 2006, and continues to monitor itsfinalization, with development the and objective of contributing to a functional Regulation. On the basis of its stipulations valid today, S&Braw has materials to and certain “register” chemicals it imports and trades andpre-registration is planning their untilRegulation. November Beyond registration, it 2008, has no in“label” obligation the to products accordance it “classify” and manufactures, other than with two of the them which it REACH – Registration, Evaluation, Authorisation of Chemicals In April 2008, all Company facilities inreported, the as E.U., dictated including in those the not Agreement, bound for30-member by their Employers the activities – above in Workers Agreement, 2007. Board, The supervising report the wasthat implementation addressed of a to the summary the Agreement. of It the is report noted, isto transmitted the to National the Health & European Commission, Safety to Institutes. the Member States and Αs mentioned in the 2006 Social Report,S&B the subsidiaries implementation based of in this E.U. Agreement countries, at wasof Group one Environment level of – by the Health the three – Corporate Safety, objectives theManagement. set compliance In in being 2007, the followed all up area employees and of monitored subsidiaries in directlyvoluntary by the Agreement, were top E.U. trained were on briefed the on risks thein of contents general, of exposure and to this were respirable urged crystalline for silica theof dust use Good and of Practices, dust as personal protective foreseen equipment, by as the well Agreement. as for the application Social Dialogue Agreement for theManagement Protection and of Use Employees' of Health Crystalline through Silica the and Correct the Products containing it. Nonetheless, despite constant improvement ofwe the regret to indicators, report, sadly one fatality that occurred toee, a contractor’s employ- when his truck overturnedabandoned during bauxite the open phase pit ofspective mine of unloading the in at particular Fokida. circumstances an of This theing accident, occurrence, reminder is of irre- the a dangers distress- lurking and the unceasing,persistent systematic and effort demanded on the part of everyone,of for the accidents elimination at work. In 2007,the Accident Frequency and Severity Indices reached their lowest levels in the last tenSeverity Index 36.1(in years. comparison to 5.7 The and 38.4 respectively,in Frequency 2006). Index wasThe 3.1 number and of the incidents was 6 (as opposed to 8,work in days 2006), lost and were the 55 total (as opposed to 54 in the previous year). Safety indicators 26 S&B Industrial Minerals S.A. ihteaporaelnsaigo h ra sa etrn a restoring in reclaimed. at long-term, areas as the the over area, ecosystem the self-supporting and of sustainable landscaping appropriate disturbance, visual the minimizing with at much as aims reclamation Land reclamation Land progress. in already is Brazil certifi- in The plant certified. Stollberg eventually the of are cation installations all that being get tar- the 14001:2004, of ISO system to according certified management a environmental apply the produced, of being 85% are than products more Group’s where plants, processing 15 level, Group At management Environmental concern: manage, to upon called is S&B issues, environmental The resources. mineral of use exploitation and efficient the of ensure continuous to time, same improvement the customers at of and, long-term and management mid- demand satisfy the to order thereof, in effective responsible and combination with in resources, mineral and primary environmentalThe land access to Company challenge is the for art the of transportation). product state and processing adopting industrial (mining, applied, activities of spectrum entire are the across technology management is methods environmental and protection advanced practices end, environmental this for To prevention. principle fundamental S&B’s Challenges Group. S&B entire the as for Safety, 2005 & in Health adopted and Environment, Quality, on Policy Corporate the by dictated environmental practices the of integration further for effort the by marked was 2007 Environment ooyadmtosue,frtercaaino h ra where areas the place. of takes reclamation mining the for used, methods tech- and of nology upgrade continuous the is philosophy fundamental S&B’s and identified are of improvement basis the requiring On evaluated. areas subsi- analyzed. data, all and of monitored of these range recorded, whole performance is the environmental diaries covering the indices activities, 54 Group for data collecting By management waste liquid and solid • management water and processing energy • the from emissions dust of management • areas site mining the in biodiversity of management • mining by affected areas the of reclamation land • and resources, mineral of reserves the of management • fproducts of excavated materials of quantities large the of management Social Report 2007 27 0 0 190 3,163.0 1,535.5 4,698.5 10 15 50 Hungary Italy 83.5 465.8 382.3 000 0 198 areas in 2007 areas up to 31/12/2007 00 38 254 288 Land reclamation in the various other countriesframework, depends on the the size legal ofownership, as the well as specific other factors mineralreclamation of deposit, local process nature of the that the determine affected status the areas.bentonite of In deposits Germany, for are instance, small incompleted size, in and a hence relatively theirreclamation. short exploitation In time-span, is Bulgaria, immediately according followed toreclamation the by of national mines is legal not framework, allowedthe before the complete available depletion of deposits,remaining regardless reserves. of the economic value of any 4,067.5 6,583.0 10,650.5 up to 31/12/2007 71.5 Total area affected Reclamation of affected Reclamation of affected 465.8 5,532.0 4,698.5 Greece Germany Bulgaria Milos & Fokida Landshut Kardjali Egyhazaskeszo Sardinia is the required area where either extraction or disposal of overburden material takes place. is defined as the area where reclamation works have been completed or trees planted. is defined as the area used or in use for mining (extraction) and disposal of overburden materials, irrespectively of the reclamation status. 2 2 Affected surface area Active or “in use” mining area Reclaimed surface area TOTAL • • Milos Fokida • Reclamation of affected areas in 2007 the beginning of the activity Total area affected (end of 2007) New areas brought into use in 2007 Land reclamation of affected areas inIn the 1,000 m S&B Group Reclamation of affected areas since Land reclamation of affected areas inIn Greece 1,000 m As shown in the chartsalready and 44% the of relevant the table,restored. total in Of surface Milos the area and remaining 56%, affected Fokida, 52% bytions. is Hence, mining “in the use” has percentage for of been extraction opera- affectedand surface currently available for area reclamation in still Greece, is remaining, no more than 4%. Approximately 90% of the total surface “inof use” for the all Group mining is activities located in Greeceadvanced (Milos and technology Fokida), where the and most developed state over the last of 25 years. the art methods have been 28 S&B Industrial Minerals S.A. h emnblt n erdcino nei ln pce.TeFoki- germinability species. reproduction The endemic plant the and of improvementof the studying “laboratories” for as act also they sites, those at reclamation works of needs the for plants Apart production of foresters. from two by led Milos, and Fokida in operating nurseries, previously mentioned research, Company’s provided the is plant by own the implementation experimentation of and the on support Important irrigation). require not do that plants of use the with resist- plants climatic-territorial of adverse (e.g. conditions to use or grazing) animal the to with ant (e.g. intervention related human to or resistant plants) fire of use the ecosys- with disasters (e.g. natural to the either tem same of endurance the ensure at to mechanisms investigating appropriate environment, time surrounding the in reclaimedareas the of integration the is research such of goal ultimate The as undertaken. being process is biological cycle their elements of reproductive other on as their well on species research the of fundamental many studied, For institutes. research and academic the utable rep- in with collaboration used in be out, carried may are works or reclamation in used future being currently are that plants bi- reproductive of the ology on programs research years, of number a Over of Milos. areas and the Fokida in biodiversity the of protection and management to extractive giv-en is emphasis particular the Greece, in from lies Group S&B footprint the of environmental activities major the that Given planting results. optimum ensure suitable to order appropriate scientific methods, in by of selection the supported reclamation essential is be for thus techniques to is species. reclaimed It being areas the in ecosystem the of restoration sustainable the for parameter crucial A management Biodiversity Amygdaliformis Pyrus in h aeadpoetdspecies protected reclama- and for rare used the species tion, of list enriched continuously the In nursery. plant Company’s the by produced brush- are island “Aegean works Milos reclamation on S&B the in of today used species plants typical All habitat. are wood” they but Milos, on found not are six and native and not shrubs are two (trees, only which of used mosses) out are species plant different 53 Milos, In re- in studied being programs. currently search are species other 25 25 indigenous. the addition, are of In nursery out plant Fokida 22 the rare. in or reproduced threatened plants some and Balkans, the in autochthonous, endemic are them of hydro-seeding. Most or ing plant- for Fokida, in used being currently are species different 40 and Fokida 11,400 respectively. the and 28,200 at were 2007 reclamation works Milos in planted trees of number The Milos. on ery nurs- plant the by seeds of 1,050 collected kg nursery, while were plant Fokida plants the local by from seeds of kg 81 2007, In years. one 13 Milos for the and years 20 for operation in been has nursery plant da ei lnsaerpoue nteCmayspatnurs- plant Company’s the being: in these en-eries, reproduced or are native rare plants IUCN other demic Four 2003 Species. the Threatened in of included List is Red plant the This at nursery. reproduction plant successful Fokida its following added, been has uino h e o-nieospat sd–anyi h initial species. the native in with installation– –mainly vegetation used of plants stages non-indigenous substi- few the the is of set target tution next the know-how, acquired the on Based acaimmaritimum, Pancratium itscreticus Cistus crhlrih arbu euiu,Iris, velutinum, Marrubium heldreich, Acer rsalily. sea or uieu foetidissimma Juniperus Social Report 2007 29 Juniperus phoenicea Study of Flora at MilosThe five-year and research program is (2005-2010) Fokida carried out sites in cooperation with the InstituteForest of Products Mediterranean Technology and Forest the Ecosystems and University ofprises: a) Athens. study It of com- the and reproductiveParnassos-Ghiona biology Milos of regions; b) plant restoration of species vegetation in in the the pseudo-alpine region (Fokida) and under adverse hot-dry conditions (Milos); c) study of the growth performance during hydro-seeding of plant speciesspecies resistant to of animal grazing. interest; d) study of specificBoth type aforementioned plant projectscomprehension have of already the contributed functioning mechanismsronment to of the the (flora local envi- Company’s and reclamation activity. fauna) Suchalso knowledge contribute and, and to data the hence,made) will upgrading of to (i.e. the Environmental accuracytaken Impact optimizing of for Assessment new assessments Studies, mining the projects under- in these areas. The presentation was made during the workTechnical and proceedings of Technological Advice the (SBCTTA), Rio on Treaty July Subsidiary 2–6,the Body 2007 auspices on in of Scientific, Paris, the hosted United by Nations UNESCO, EnvironmentUnion under Program for (UNEP). the It Conservation was of organized Nature by andCouncil IUCN Natural on (International Resources), Minerals on and the Metals). initiative S&B’s of presentation,covered ICMM titled the (International “Conserving positive Biodiversity results in of Milos the & reclamationextensive Fokida”, projects collaboration carried with out reputable by scientific and the research Company, based institutions. on its The significance of the Company’s research workis towards demonstrated conservation by and the management selection of and biodiversity invitation–representing of the S&B European to extractive industry, present through its Euromines– work atgood along a biodiversity with protection conference that practices aiming of implemented to by Rio diffuse the Tinto mining industry. Ghiona Fauna Study A two-year research program (2005-2007)Department was carried out by of the Environment of Agriculture, the Universitysystematically of assess Crop Thessaly, the with fauna the ofmountain, Production objective where the to the wider Company’s area and bauxite ofobservation mines of the fauna are Ghiona (birds Rural located. and mammals) The sites, very near that to the have mining beenindication in as operation to the for actual manythe repercussions regional years, of fauna. extractive is activity a on positive Base studies In order to minimize theactivities, it is environmental crucial, among impact other factors, to caused gain knowledge by on the flora mining and fauna of theCompany’s affected main area. However, extractive for activity the (Fokidavalid sites and of and updated the Milos) data sufficient, areCompany lacking. has In initiated the view following base of study projects: this deficiency, the Juniperus macrocarpa 30 S&B Industrial Minerals S.A. aeil upse 0.I ae hr iceace are discrepancies where rate. recycling cases the improve to In taken are measures 90%. above observed, the for of surpasses and some for recycled ratio materials effectively recycling the are activities paper production some metal and tires, lubricants car batteries, used the lead scrap, as of such sites materials all that from indicate Group collected data performance environmental The the of valorization and handling their ones. non-reuseable of optimization the methods at recycling the aim materials, used waste other to exca- other regard landfilling With for vations. used mainly and inert is waste mineral S&B’s recycling - management Waste reduc- in resulting quality, products’ the of upgrading Continuous • through reserves bauxite and perlite bentonite, of use the Optimizing • mentioned: be can measures following indicatively, the end, this To processes. production the in use effective of their management and efficient resources mineral its the is Group S&B the for concern primary The applications. industrial the various in serving products materials of raw formulation other of number a incorporate Down- bentonite. operations of stream activation the for used is ash mining soda only upstream operations in- In and sectors. materials industrial raw various mineral to of products supplier termediate a as active is Group S&B The materials other and raw of Management months. 15 million about eight in about completed be of to investment foreseen island overall is the an and and euro involve neighbors will immediate agree- project in its The and partners, authorities. cooperation and in employees determine its to basis with the strives ment on Company project made the being this priorities selection of the its Company, of implementation the on by The made installations emissions. promise Company’s a dust follows the closed minimize at a to of granules aiming construction bentonite Milos, the dry for bulk laid for were warehouse foundations the 2007, December In constantly and methods de-dusting modern feasible and the available all For applies Company reclamation. the emissions, mine such of effective minimization or as elimination important as Group, S&B for the issue handling environmental important very materials a is raw products of processing from and generated emissions dust Combating emissions dust Combating xedn h ieieo reserves. of lifetime the extending consequently applications and various in consumption specific of tion required. not are qualities such qualities, wherever material raw mium rationalmixingofvariousqualities,soastoavoidthe“sacrifice”ofthepre- u fte4 nrdet sdi h rdc omlto r ae on based are formulation materials. product such the in used ingredients 10 case 45 which the in of operations, out Stollberg the for noting worth also is ucts prod- new production of the for – etc. waste glass slag, ash, fly – dustries in- other from by-products and wastes of exploitation and utilization The material. overburden of use the for trials Test • de-dusting the collected perlite in fraction of fine the applications Trial of • of reduction the in resulting production, perlite the of Optimization • opn uhrzdb h iityadpy h eeatfee. relevant the pays the and with Ministry contract the the a by signed authorized from Company has materials, arising packaging to of relating 2939/2001 recycling the obligations Law the Greek packaged, the and 94/62/ΕΚ sold with Directive European production compliance of in 1%. portion than Company, less the was percentage for equivalent the Nevertheless, perlite, For export- bulk. was in 98% approximately ed remaining than the less while represented sales, total market of bentonite Greek 2% the the 2007 in in packaged that mentioned sold be products can it example, and minor. typical relatively bulk a is in As materials sold packaging are of consumption products the Company’s therefore the of majority great The dust systematic and regular ones, new Safety). & Health for on chapter (see of out carried need purpose are measurements the the For measures employees. such and of effectiveness its the of of evaluation and training documentation continuous in equipment protective and personal in equipment, anti-pollution in invests itr nvrosuses. various in filters improving. continuously is material raw the of exploitation that which means increasing, continuously is process production perlite the ing dur- generated fraction useful the years recent In rejects. “fine” perlite Social Report 2007 31 S&B’s facilities and at Voudia Bay, Milos open drying fields for bentonite, Moreover, on Milos, where climatic-territorialdue conditions to are limited difficult, rainfall unequally distributedwinds over and the dry year, summers, with the strong have plant species used been in land carefullyFurthermore, reclamation rainwater collected selected in bentonitetonite’s so impermeability), as quarries well (due as as on to roofs of not ben- premises, the is Company’s building used for to sprinkling the roads require and for other irrigation. purposes. For these reasons, strenuous efforts are unceasingly devoted to energy saving. A typical example of investmentsaving in is the 2007, substitution that of the contributes rotary to kilnwith at a energy the fluid Kannava bed site drier, on resulting Milos in an energy saving of about 32%. S&B’s extraction activity, asproducts well require as minimal its quantities ‘dry’ ofmainly processing water. necessary Water of for consumption mineral sprinkling is thethe roads used Company’s for transportation products,Nonetheless, of being aware in of the orderdata importance on of to water water consumption per conservation, reduce ton ofGroup’s product dust facilities. are collected from emissions. the Water management Significant energy saving istions also for achieved the natural by sun-drying exploitingmately of 35% Milos’ bentonite energy climatic in savings, condi- open comparedindustrial fields, to drying resulting the was in energy used approxi- that instead. would be required if The S&B Group’s activities are not energy intensive.ever, The is Group, particularly how- sensitive to issues regarding energyas consumption, much in response to the problemhouse of gasses climate emissions, change, and due because to energy green- costnificant constitutes portion a of sig- total production cost. Energy management 32 S&B Industrial Minerals S.A. xeto fcran specifically designated, certain, deposits. of exception of area the with deposits, bauxite Company’s an the exploitation of covering continuation of deposits the allows issued decision bauxite The Ghiona. of mountain the of in m2 9,244,000 exploitation the for Study petitions Environmental Assessment Impact the the to approval granting The State, Greek by issued Decree, Ministerial Court. Joined the this of cessation the before to referred submitted petitions on Company, the of favor in State of Council the by issued was decision 2007, a June In disputes Judicial 2007 YEAR 2007 - 2000 expenditure Environmental European the to of Ecobilan by delivered Cycle Life (European database out a of establishment carried be the for Commission is which will study, the PricewaterhouseCoopers, of results The clarifica-tion. with oil evaluated and litter, be pet foundries, will pelletization, iron-ore products in bentonite application 4 study, the this Within materials. of and framework energy of products, inputs mineral industrial all consideration 15 into atmos- of taking receptors) the land to and (emissions water impact to environmental phere, the on study a ports sup- financially and to contributes Company the IMA–Europe, Through (LCA) Analysis Life-Cycle 2000 2001 2002 2003 2004 2005 2006 o landscape For reclamation 0.98 1.20 1.20 1.05 1.01 1.12 1.15 1.17 ENVIRONMENTAL i ilo euro) million (in EXPENDITURE purposes o other For 0.34 0.50 0.52 0.50 0.30 0.52 0.43 0.44 ino h opn’ oiincnb on nteGekvrinof version Greek the in (www.sandb.com). found website be its can documenta- position full Company’s the The of annulment. tion its competent the claiming before fine Courts, decision this Administrative above for at the basis against legal appealed activity no has is and for Company’s there that imposed the believes was Company from The 392,000 Milos. € violations of fine environmental a alleged Works, Public Physical Environment, and of Ministry Planning the of decision by 2007, October In uses. various their and products its of analysis the for model develop LCA to an Company the enable will study this expansion-extension of further Moreover, materials. synthetic other to comparison esti- in life-cycle, the of quantification the their throughout products minerals in industrial of assist impact negligible will mated study the that expected is It 2008. completed June be in to foreseen is study The life-cycle. their throughout ucts, prod- of environmental impact the information on of provision with Data), ENVIRONMENTAL i ilo uo i ilo euro) million (in euro) million (in INVESTMENT 0.96 0.39 0.85 1.28 1.00 1.20 1.30 1.00 TOTAL 2.70 2.87 3.00 2.35 2.46 2.30 2.74 1.99 Social Report 2007 33 Environment Social Contribution Health & Safety Human Resources Perlite Expanded perlite, duestability and to non-reactivity, as its wellwithin as its its high capacity pores, to porosity, is retaininsulation a water chemical perfect purposes. product Also, purity, to itscultivations use use for contributes as heat to substratum andcompared reduction in sound to hydroponic conventional in cultivation. water consumption as c) in de-inking ofticity, bentonite recycled is paper; also used d)tainers as because a of protective of radioactive casing itshigh around high pressure material, con- plas- and preventing ensuringcontainers. the the stability application and of impermeability of One of the most important usesal of of bentonite moulding is sand as in bindingucts foundries. materi- such The as use ANTRAPUR, of POLYCARBON and S&B's PRIOCARBONresulted foundry has prod- in the reductionronmental of issue organic in emissions, foundries, acasting with common efficiency. simultaneous envi- improvement in Economic Contribution Governance & Management Stakeholder Dialogue ) and heavy metals contributing to the + 4 Management Letter Sustainable Development at S&B Bauxite The use of bauxiteenvironmental in application, rockwool since this production materialtion is has properties also and special a insula- one high melting-point indirecta temperature, fireproof rendering material. it biological treatment and purification of waste. Zeolite Similar properties tobinds bentonite ammonium ions can (NH be found in zeolite, which In June 2007, the new innovativeBOND bentonite-based was product launched, with the for name use ENVI- inaddition. casting With moulds with the no use requirementnating of for from carbon ENVIBOND, carbon are emissions reduced of and,position, moreover, organic part because of compounds of the ENVIBOND’s origi- volatile com- organicas compounds “cores” generated in from the materials casting used bution mould to is a also cleaner retained. work Equallysmoke environment, significant visible since during is the casting its foundry and contri- looks a cleaner, lighter-colored with molding no sand. Bentonite Swelling, ion-exchange capacity and impermeability toder water bentonite an ren- appropriate material for aapplications, series such of environmental as: a) soil-sealinglong-term of protection Waste of Landfills, ground ensuring and water industrial from effluents pollution; treatment, b) since it in absorbs water heavy metals; Environmental applications of S&B products Many applications of S&B products,nation based of on the physical unique properties combi- ofthe industrial on-going minerals, effort to as develop well innovativecations, as new actively on products contribute and appli- to theSome protection typical of examples the are: environment. 34 S&B Industrial Minerals S.A. oiladclua ieo hs ra n uprstersustainable economic, their supports the and areas in these of actively life cultural participates and social S&B Fokida. and Milos on i.e. located, mainly are operations productive company’s the regions where the on years, focused are past Greece of in developed Reports activities social Social the the in stated repeatedly been has As respectively. Affairs, Local of Heads the / of by and executives or Dept. the Communication by & i.e. Responsibility level, Social local Corporate at the as well as corporate at both executives, responsible policy, the by evaluation sponsoring careful and thorough its after of intitiatives, and organizations, activities of framework series a support the to selects within S&B, year Every safety & health on and work. environment at the on resources, human on S&B’s Greece in Contribution Social mother the of that as significant activities as companies’ be not subsidiary might of world the impact around the faces: many has challenge This contribution. and investment social last of issues with the ing deal- during in Company, the especially for challenge additional an posed globalization, has decade, rapid Group’s S&B The the toward respect, benefit. and collective trust and common mutual com- on long-term based in relations, engaging munity involves operate, so-called to the license” for “social i.e. acceptance, social sustainabili- their for pursuit their constant development, and The ty. heritage balanced cultural their their for environment, natural respect inter- its utmost of communities with the est, with closely works the S&B operations where its located– of are part Greece largest the in where and –particularly founded was Company by record track demonstrated As Company’s the development. Group’s the sustainable of part partner- towards integral and an efforts is relations communities local long-term the of with ships establishment the S&B, For Challenges the of establishment Inititative”. the “MILOS for company association together development of signing common charter the the by of Municipality marked Milos was the operates, with it where communities local engagement the of with forms institutionalized of development the for pursuit S&B’s 2007, In Contribution Social oilpolicy social scmlmnayt h eeatpolicies relevant the to complementary is uprigtelclppltoswt dctoa,clua and cultural educational, with populations local the Supporting • and regions these promote activities that Developing initiatives and • local to support other and technical financial, Providing • the like infrastructure, cultural of works operating and Creating • directions: following the on focused is eeomn.Mr pcfcly &’ oilcontribution social S&B’s specifically, More development. nuigtecmaiiiyo &’ ciiywt te oa eco- local other with activity S&B’s of compatibility the Ensuring • lo- these of development balanced and sustainable the Promoting • on: focused them, with synergy and cooperation of model a in investments, and work systematic dialogue, continuous through responsible conduct, professional commu- and its interest, through local its the of nities of respect the gain to striving continuously is S&B community. local the to impact any positive major where a areas, are have poor Company, subsidiaries may the of very some part the in on hand, other) contribution (financial or or other countries, the developing on in does); based mine a as same way the community local the or cen- environment distribution the affect a not (e.g. does impact ter social local does itself a significant activity as the because have not or activity, the of size the to relative large very are countries some because either Greece, in Company’s te activities other development balanced their to contribute works infrastructure local as as acceptance, well and interest high of initiatives and organizations the and Center Conference Park Milos Mining Vagonetto-Fokis the Museum, Mining Milos oi activities. nomic communities. cal strategy Social Report 2007 35 Social Contribution Fokida Initiative www.infokida.gr 2007, Chamber, Itea, June 2007 October 2007 exhibitions for the promotion of the Olive Tree, as well as the entire region of Fokida as a tourist destination: - Helexpo, Thessaloniki, May - Exhibit of the Fokis - Anuga 2007, Köln,Germany, - Filoxenia, November 2007 • Participation in a series of Health & Safety Environment Human Resources www.vagonetto.gr digital system of guided tours (in 6 languages) • 9,200 visitors • Inauguration of a modern Fokis Mining Park - Vagonetto Economic Contribution by for the “An www.miloscenter.gr Conferences” documentary film Inconvenient Truth” meetings and 22 other events professor Michael Fytikas Senior High School pupils Conference on the “Sustainable Development “the Milos Geopark” Indicators in the Minerals Industry, SDIMI 2007” Milos Conference Center • Screening of Al Gore’s • Sponsoring of 2 “Milos • 3rd International • Presentation of a study on • 5,600 participants • in 4 conferences, 6 day Governance & Management Stakeholder Dialogue in coop- “With “The Flora & “Discover Milos Mining Museum tional / informational brochure on Fauna of Milos” Colors & Scents” the Treasures of Milos” eration with the Hellenic Society for the Protection of the Environment and Cultural Heritage cation program exhibition area program: www.milosminingmuseum.gr • Publication of an educa- • New environmental edu- • 8,000 visitors • Renewal of the first floor • New educational Management Letter Sustainable Development at S&B Within the framework ofanother the important institutionalized year partnerships of action and and infrastructure progress, with works the that main highlights S&B depicted operates in the on following Milos table. and in Fokida, 2007 was «MILOS Initiative»: A new form of partnership In 2007, S&B Industrial Mineralsestablishment S.A. and of the a Milos common Municipalityconclusion signed development of the a company long charter course under of of discussions association thetheir and for deliberations name cooperation. between the of the The two «MILOS partners MILOS forpromotion Inititative». institutionalizing of Initiative sustainable This development is on is the a the island,of through very transparent engagement processes important with and the formal turning structures localplanning point community. MILOS and for Initiative implementing S&B’s aims, projects among contributionproviding others, needed to at for consulting identifying, the the prioritizing, services improvementinterest for for of the people of Milos planning Milos. The infrastructures, first and project undertaken by as “MILOS managing Inititative”iswater the well construction of treatment a various plant, as waste- for programs which at relevant actions ofbe are laid broader already soon. underway The social and its project foundations welfare is are foreseen expected to to be completed before the end of 2008. 1st European Minerals Day: “Discovering the World of Minerals”

S&B Industrial Minerals S.A. participated in the 1st European Min- within the framework of the European Minerals Day was to open up erals Day, organized by the Industrial Minerals Association (IMA-Eu- the Company’s quarries and processing plants on the island for a tour rope) throughout Europe. Goal of the 88 events that took place in of the High School and Senior High School students, the main theme IMA members mining companies’ facilities in 16 European countries, being “Getting to know the World of Industrial Minerals”. was to acquaint the local communities with minerals, and especially the young people and the students in the areas where the compa- In Fokida, S&B organized an event under the title “Getting to nies are present. S&B opened up its facilities on Milos and in Foki- know the World of Bauxite”. The program for this event, due to da to welcome the young people to a “voyage of discovery in the its special content, was organized in cooperation with the Pre- World of Minerals”, on Friday 11th and Tuesday 15th of May 2007. fecture’s Environmental Education Section. A total of about 150 pupils from the high schools of Itea, Amfissa, Lidoriki and Poly- More specifically: drosso visited the Company’s premises in the region on Friday, On Milos, the aim of the educational events organized by S&B May 11th. Management Letter Governance & Management Economic Contribution Human Resources Health & Safety Environment Sustainable Development at S&B Stakeholder Dialogue Social Contribution

Beyondtheinstitutionalizedformsofcooperationandsocialcontribution, S&B continued in 2007, as it does every year, its extensive program of support and contribution to numerous and varying activities, organizations and initiatives, within its strategically selected areas of interest. Educational Activities Some of the most important such actions of 2007 are listed below. • Participation of S&B in Fokida and Milos in the European Minerals Day Local Infrastructure works (see opposite page ) • Support of various educational • Completion of a new water supply events on Milos and in Fokida network offered to the Kastellia village • Students’ summer practice at of Gravia in Fokida S&B’s Fokida site Enterpreneurship • Construction of a new road to the • Participation in the International Day main water spring of Apostolia village of Forestry (March 21), with tree • Support of the 1st Conference of in Fokida planting together with the pupils of “Transparency International Greece” • Completion of a new water supply the Elementary School of Milos and • Support of a study by the network from the Saloula water spring the Milos Forestry Service Foundation for Economic and to the village of Karoutes, in Lidoriki, • Award of the “Anastassia Industrial Research Fokida Antoniadou Scholarship” • Support of the Students in • Financial support for the construction • Support of the Scholarship Fund of International Business and of the of the new building to house the ΑLBA Piraeus University Graduates Fokida Chamber of Industry and • Support of the American Association Commerce Educational Foundation Fulbright • Sponsoring of the 18th Conference • Support of various Local Authorities’ • Sponsorship of one scholarship at of the Association of Top Executives initiatives the American Farm School

Milestones 2007

Protection of the Natural Broader Social Contribution Art and Cultural Heritage Environment • Extension of the “Anastasia • Support of the Cultural Festival of • Sponsoring of the screening of Al Antoniadou-Volunteerism Prize”, so Milos for the 14th consecutive year Gore’s documentary film “An as to include candidates from Milos • Support of cultural and other related Inconvenient Truth” in Athens and citizens in general and not only from organizations on Milos and in Fokida on Milos S&B employees, upon the request • Support of the Hellenic Literary and • Sponsoring of the MMM brochure of the local community Historical Archive (Ε.LIA) on “The Flora & Fauna of Milos” representatives • Sponsoring of the presentation of • Sponsoring of the 3rd International • Support of various social Michalis Modinos’ book “The Great Conference on the “Sustainable organizations for handicapped Abai”, on Milos Development Indicators in the people and also for the homeless Minerals Industry, SDIMI 2007” • Support of the Center for the • Sponsoring of the Conference on Professional Rehabilitation of “Energy and Environment in the Individuals with Special Needs Building Sector”, Milos (12-13 July)

• Presentation of the Company’s work 2007 Report Social on the protection of biodiversity on Milos and in Fokida, at the “Best Practices” section of a Biodiversity Conference, organized by UNESCO in Paris (2-6 July) 37 38 S&B Industrial Minerals S.A. rsn,wt h i oeiiaepvryadieult ntepoetcutiso h world. the of is countries S&B poorest where the in countries inequality are and which poverty among eliminate countries, to 40 aim than well-known the This with more branch. present, in Greek active its is through efforts organization the Actionaid, supported international organization, presents, corporate non-governmental Christmas international offering an of of instead S&B, year, consecutive third a For Hellas Actionaid of Support Responsibil- Social Corporate for Network Greek the of member As • €500,000 Special Re- of amount the offered the 2007, August to S&B In • actions: of series a through fires the from recovery the and disaster alleviation of the for attempts State the to responded country. S&B the of parts large “black hit the devastating that wildfires the as of 2007, because Greek of summer” every of mind the in remain will summer fires year’s Last 2007 the of aftermath the in S&B Olympia at team S&B The orleetefr-itm n orsoetentrlevrnetin Euboea). and environment (Heleia natural areas afflicted the the restore of two to and fire-victims the aim relieve the with to PRAKSIS, NGO the with cooperation in Network the by undertaken Day”, “Next project common the in participated S&B ity, aforementioned Account. same the in sum the deposited employees, financial personal contributions voluntary and from of ered Econo- National of Ministry myandFinance.Ontopofthat,theCompanydoubledtheamountgath- the by up set Victims, Fire for Account lief nMls nafr-rvninatmt & lae h rasur- area the cleaned S&B attempt, fire-prevention a in Milos, On • Karoutes like villages, neighboring to water provided S&B Fokida, In • 2007. of summer and the prevention during fire fighting for fire locally help its offered Company the Moreover, restore to attempts state the to contributed S&B 2008, February In • onigispeie nVui rmbse n dry-shrubs. and bushes from Voudia in premises its rounding region. the in purposes Mu-fire-fighting Fokida for the nicipality by use for available stand-by, on vehicles water-tank its kept S&B months, summer at the those throughout addition, and In Gravia Desphina. of in Inohori assisted in those it like Also, fires, well. local several as fighting farmers stock local to and Kastellia, and 2008. Year Olympic the for ceremony flame-lighting special the a during at Liapis Michalis Culture of Minister the by hon- ored was S&B contribution, this For particular. in hydro-seeding restorationand landscape in know-how special- and Olympic personnel its equipment, volunteering the ized 2008, of March view in in ceremony Olympia, Flame-Lighting ancient of landscape natural the Social Report 2007 39 Social Contribution Marl Health & Safety Environment Durgapur tors, who organize regular clownits vis- to patients, mainly childrenhospital in wards. Siegen Universities applications from Bochum and Siegen Universities Association Students Foundry Foundry Engineering Support Circle people neighboring village local festivals through the workers’ initiative“green a zone” has beeninside created and around theresult, factory. approximately As 78% a oftotal the plant area iswith full more of than greenery 20,000 trees. discharge of water fromby the recycling factory, water dischargesusing and them for irrigatingzone” the mentioned “green above Germany: • Support to Red Noses Clowndoc- • Visits to plants from Bochum and • Student training on civil engineering • Annual of Sponsor University Duisburg • Annual Sponsor of University Clausthal • Monetary help given to indigenous • Promotion of sports activities in the • Sponsoring of prizes in various • “Green revolution” project, whereby • Initiated program targeting at zero India: Human Resources szö ΄ Egyhazaska Economic Contribution Xinyang ties for the children in local villages events – balls, village days voluntary work of S&B Industrial Minerals Kft employees, and with equipment as needed in various community tasks (i.e. snow cleaning) ment by transporting clay soilthe from Company mine to theconstruction main activity road in the newdustrial in- zone water ditch in the Henan area sity students • Sponsored Christmas and Easter par- • Supported the• local football Supported team various local community • Supported the local community with Hungary: China: • Contribution in kind to local govern- • Contribution for the maintenance of • Paid summer training for two univer- o ~ Governance & Management Stakeholder Dialogue Kardjali Guaratinguet that promotes Bulgarian folklore, history and traditions which organizes the traditional Perperikon theatrical festival of the death ofapostle the of national liberty, hero, Vasil Levski, organized by the GovernorKardjali of organizations that provide for under- privileged children, in support of annual Children’s Day for Prevention of Working Accidents, company employees donated clothes and food in support ofClothing the campaign Warm (Campanha do Agasalho) organized by Lar Sa Mirim”, a program developed by the local Mayor, aimed to helpapprentices (16 young to 18 years old) to enter the work market zations which help persons in need Miguel Arcanjo, in support of under- privileged people • Sponsored Melpomena society, • Sponsored the 170-year anniversary Bulgaria: • Sponsored Bulgare festival • During the Company’s Internal Week Brazil: • Donation of toys to various charity • Donations in kind to various organi- • Christmas donation to “Guarda Activities worlwide during 2007 led,severalAlready, of the in especially Group’s subsidiaries, the less developed areas, are doing quite Some a communities. neighboring of lot the in most such terms significant are activities of below. summarized social to contribution their S&B aims at expanding the Group’s social policy the throughout various countries of itson in operations the a basis of gradual and criteria such well as: organized manner, (a) the sizespecific region of where its the are facilities S&B located; (b) activity in the each social impact country of and in especially the (d)identified; relation Company’s activity to in the the level the of size specific region; (c) of social of development the the the local country specific social in local or particularly needs communities the of poorer the countries. Social contribution worldwide Management Letter Sustainable Development at S&B 40 S&B Industrial Minerals S.A. -al [email protected] e-mail: 6296074 210 fax: 6296293 210 tel. 51528 Box P.O. Kifissia, 64 145 str. Metaxa A. 15, Division Communication & Responsibility Social Corporate Kontaxi Myrto Ms. to: feedback your sending by us contact Please reports. contents future the our shape of help will and that feedback comments your appreciate would We einby Design Department Communication S.A. Responsibility & Minerals Social Industrial Corporate – S&B of publication a is report This sda ilr h rdcinpoesi otoldb aaeetsse etfe codn oDNE S 01adDNE S 14001. ISO EN DIN and 9001 ISO EN is DIN chalk to of residue. according product harmful certified no natural of system with The Endorsement management mills. recyclable, the a saw fully for by is regional (Program controlled from paper is certified wood This process PEFC Germany. waste of production in as programs The produced well filler. conservation as recycling) as forest management, internal used local forest and from (pulp sustainable thinnings fibers schemes), from prime Certification taken 100% Forest is of pulp composed the paper, for Tauro timber M-Real The on printed is Report Social S&B’s nabox a in 3 S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 2

Reporting Parameters

S&B’s Social Report 2007 has been compiled according to the 3rd edition of the Global Reporting Initiative Sustainability Guidelines (2006), also taking into account the GRI Mining and Metals Sector Supplement, Pilot Version 1.0 (February 2005).

The S&B Group has been publishing a Social Report for the past six In overview, it is worth noting that CSR related information and data years. This report should be read in conjunction with the Annual is collected and evaluated by the Management and Policy-making Report of which it forms an integral part. The reader should read both bodies at Group level for CSR, as follows: 2007 Reports to form an accurate, balanced, fair and complete opin- • Data for 54 indicators covering Environment, Health & Safety ion about the Company’s strategic and management approach to issues are collected in a uniform manner from all subsidiaries of Sustainable Development issues, as well as the “S&B Principles of the S&B Group since 2004. Corporate Governance” (3rd revision, 2007) and the Company’s web- • Data of the Corporate Human Resources System which, at least site (www.sandb.com) which is constantly updated with new informa- in Greece, is managed through an electronic platform. tion. S&B’s Social Report is not externally assured by a third party. • Social contribution activities which, for the first time in 2007, were reported at Group level using a systematic and harmo- The information and data included in the Social Report cover: nized method. • All legal entities controlled or significantly influenced by the Group • All entities the size or activity of which may have significant impact Careful evaluation of internal and external factors listed below is the on issues, which S&B has identified as material in terms of key to assessing material issues and challenges for Sustainable Sustainable Development Development at Group, or at local level: • Those entities where integration of corporate policies and sys- • The Values, Vision and Purpose of the S&B Group tems has made good progress. For example, new acquisitions of • The Corporate Policy on Quality, Environment, Health & Safety 2007, like CEBO (50% stake) and Hill & Griffith are not yet includ- • S&B Corporate Governance Principles ed in the policies and management systems for Environment, • All other corporate (Group level) or local (subsidiary level) policies Health & Safety and Social impact. and procedures in force • Data for which quality can be controlled, so as to ensure accurate, • The Group’s strategy for Sustainable Development timely and clear information. • Sectoral commitments for Sustainable Development endorsed by S&B In all sections of the Social Report 2007, and in particular where data • The opinion of stakeholders, as voiced and recorded systemati- or performance indicators are reported, the basis of collection and cally by the Company calculation is mentioned, as well as any major changes or revisions • The priorities set by local communities where S&B is active from previous years.

2002 In Accordance C C+ B B+ A A+

Self Declared Mandatory

Third Party Checked

Optional GRI Report Externally Assured Report Externally Assured Report Externally Assured Checked Report Application Levels S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 5

S&B Group - 2007 G3 Content Index

STANDARD DISCLOSURES PART I: Profile Disclosures STANDARD DISCLOSURES PART I: Profile Disclosures Profile Description Social Report Annual report Corporate Profile Description Social Report Annual report Corporate webpage Disclosure 2007 2007 Governance Disclosure 2007 2007 Governance www.sandb.com Principles Principles (edition 2007) (edition 2007) 1. Strategy and Analysis DMA EC Disclosure on Management Approach EC p.4,5,11,12,13 p.30 1.1 Statement from the most senior decision-maker of the organization p.3 p.8 1.2 Description of key impacts, risks, and opportunities. p.5,12 DMA EN Disclosure on Management Approach EN p.5,7,26 ch.7 Environment DMA LA Disclosure on Management Approach LA p.7,14,16,17,20,22,23 ch.7 Health & Safety 2. Organizational Profile DMA HR Disclosure on Management Approach HR p.19 ch.4,8 2.1 Name of the organization. throughout throughout DMA SO Disclosure on Management Approach SO p.7 p.27 ch.6, Appendix Α 2.2 Primary brands, products, and/or services. inside cover p.6-7 DMA PR Disclosure on Management Approach PR p.8,12,33 Quality Assurance, 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, - inside cover inside back cover, Research & Development and joint ventures. p.33 2.4 Location of organization's headquarters. back cover inside cover 2.5 Number of countries where the organization operates, and names of countries with either major operations p.11 p.4,33 STANDARD DISCLOSURES PART I: Profile Disclosures or that are specifically relevant to the sustainability issues covered in the report. Profile Description Social Report Annual report Corporate 2.6 Nature of ownership and legal form. p.9 inside back cover, Disclosure 2007 2007 Governance p.33 Principles 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). p.12 inside cover, (edition 2007) p.6-7 Economic 2.8 Scale of the reporting organization. p.13 p.2,3,33 EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, p.12,13 p.2,3 2.9 Significant changes during the reporting period regarding size, structure, or ownership. inside back cover p.10 donations and other community investments, retained earnings, and payments to capital providers and governments. 2.10 Awards received in the reporting period. p.18, 38, 39 EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant p.14,15,18 locations of operation. 3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. p.3 p.8 EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through p.12 & ch. 3.2 Date of most recent previous report (if any). p.5 commercial, in-kind, or pro bono engagement. social contribution 3.3 Reporting cycle (annual, biennial, etc.) p.5 EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. p.12,13 3.4 Contact point for questions regarding the report or its contents. p.40 3.5 Process for defining report content. inside back cover Environmental 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). inside back cover See GRI Boundary Protocol for further guidance. EN2 Percentage of materials used that are recycled input materials. p.30 3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). inside back cover MM4 Percentage of products(s) derived from secondary materials. p.30 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities inside back cover MM5 Describe policies for assessing the eco-efficiency and sustainability attributes of products (e.g., recyclability, p.32 that can significantly affect comparability from period to period and/or between organizations. material use, energy use, toxicity, etc.) 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques inside back cover underlying estimations applied to the compilation of the Indicators and other information in the report. EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions p.13,31 Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. in energy requirements as a result of these initiatives. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for inside back cover EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. p.28,29 such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods). EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. p.26,27,30 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods inside back cover EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with p.32 applied in the report. environmental laws and regulations. 3.12 Table identifying the location of the Standard Disclosures in the report. inside back cover 3.13 Policy and current practice with regard to seeking external assurance for the report. inside back cover EN30 Total environmental protection expenditures and investments by type. p.32

4. Governance, Commitments, and Engagement Social: Labor Practices and Decent Work 4.1 Governance structure of the organization, including committees under the highest governance body p.6,7 p.27-30 ch.2,5 LA1 Total workforce by employment type, employment contract, and region. p.14 responsible for specific tasks, such as setting strategy or organizational oversight. LA2 Total number and rate of employee turnover by age group, gender, and region. p.14 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. p.28 LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. p.17 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance p.28 body that are independent and/or non-executive members. LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. p.24 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. p. 8,9 inside back cover ch.6 LA10 Average hours of training per year per employee by employee category. p.17,23 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives ch.2 (2.2,2.4) LA11 Programs for skills management and lifelong learning that support the continued employability of employees p.16,17 (including departure arrangements), and the organization's performance (including social and environmental performance). and assist them in managing career endings. 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. ch.2 (2.6,2.7) LA12 Percentage of employees receiving regular performance and career development reviews. p.16 4.7 Process for determining the qualifications and expertise of the members of the highest governance body ch.2 (2.3) LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, p.7,14,17 for guiding the organization's strategy on economic, environmental, and social topics. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, p.2,6,10 throughout minority group membership, and other indicators of diversity. environmental, and social performance and the status of their implementation. the edition 4.9 Procedures of the highest governance body for overseeing the organization's identification and management p.7 ch.4 Social: Human Rights of economic, environmental, and social performance, including relevant risks and opportunities, and adherence HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be p.19 or compliance with internationally agreed standards, codes of conduct, and principles. at significant risk, and actions taken to support these rights. 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, p.28 HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute p.19 environmental, and social performance. 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. p.26 to the elimination of child labor. 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which p.6,10 HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures p.19 the organization subscribes or endorses. to contribute to the elimination of forced or compulsory labor. 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy p.9,10 organizations in which the organization: Social: Society • Has positions in governance bodies; SO5 Public policy positions and participation in public policy development and lobbying. p.10 • Participates in projects or committees; • Provi des substantive funding beyond routine membership dues; or Social: Product Responsibility • Views membership as strategic. 4.14 List of stakeholder groups engaged by the organization. p.8,9 PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, p.25,32 4.15 Basis for identification and selection of stakeholders with whom to engage. p.8,9 and percentage of significant products and services categories subject to such procedures. 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. p.8,9,10 PR3 Type of product and service information required by procedures, and percentage of significant products p.25 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization p.8,9,10,19 has responded to those key topics and concerns, including through its reporting. and services subject to such information requirements. S&B_SR_2007_COVER_[eng]MOD:ENGLISH_Cover 10/31/08 11:15 AM Page 5

S&B Group - 2007 G3 Content Index

Reporting Parameters

2002 In Accordance C C+ B B+ A A+

Self Declared Mandatory

Third Party Checked

Optional GRI Report Externally Assured Report Externally Assured Report Externally Assured Checked Report Application Levels