S U S T a I N a B I L I T Y R E P O

SUSTAINABILITY R E P O R T 2003 Trelleborg in brief 3 Highlights during the year for sustainable development

Comments by the CEO 4 ISO 14001 environmental management system introduced Organization, management at 82 plants system and ground rules 6 Introduction of work-environment management system Performance in the sustainability area (OHSAS 18001) initiated within Group Environment 10 Continued activities to replace substances that are Five years in brief 10 hazardous to the environment and health with less Goal-oriented work 10 hazardous substances Many challenges for Trelleborg 11 Many plants show improved environmental performance, for Utilization of natural resources 13 example in the form of reduced atmospheric emissions and Emissions to air and water 14 lower energy consumption Waste 15 Products and the environment 16 Cooperation with universities on sustainability issues Transports and the environment 16 25 recently acquired plants within Trelleborg Sealing Suppliers and sustainable development 17 Solutions are included in the 2003 Sustainability Report When things did not go as planned 17

Health and social responsibility 18 Responsible enterprise 18 Trelleborg exists globally 18 Equality and diversity 19 The manager as leader 19 Enhancing competence 20 Social contacts 20 Work environment aspects 21

Environment and finance 22 Environment-related costs 22 Environment-related investments 22 Environment-related savings 22

Sustainability performance of Trelleborg’s business areas 23 Trelleborg Automotive 23 Trelleborg Wheel Systems 24 Trelleborg Engineered Systems 25 Trelleborg Building Systems 26 Trelleborg AB is a public company. Corporate registration number 556006-3421. Domiciled in Trelleborg, Sweden. Trelleborg Sealing Solutions 27 Hållbarhetsredovisningen finns även på svenska. Figures given in parentheses refer to 2002 unless stated otherwise. Amounts of money are given in Swedish kronor (SEK) Important sustainability work throughout. Thousands of kronor are abbreviated as SEK 000s and millions of kronor as SEK M. under development 28 Production: Trelleborg AB Translation: The Bugli Company AB, Stockholm Reporting principles and Questions concerning the Sustainability Report will be answered by environmental coordinator Torbjörn Brorson. definitions 30 E-mail: [email protected]

2 3 Trelleborg in brief

A global industrial group Trelleborg is a global industrial group with spearhead expertise in polymer technology combined with a high level of industrial know- how in functional solutions and systems that meet the needs of our customers. The Group has approximately 21,000 employees in some 40 countries. The head office is in Trelleborg, Sweden. Trelleborg AB was founded in 1905 and the Trelleborg share has been listed on Stockholmsbörsen’s A list since 1964.

Leading technology – leading positions Trelleborg endeavors to achieve market leadership within clearly demarcated product and market areas. Today, the Group is one of the world’s largest industrial rubber producers, and products with leading market positions (ranked 1-3) account for approximately 90 percent of Group sales. Trelleborg is a world leader in antivibration products for light vehicles, among Key figures 2003 2002 other products. Net sales, SEK M 17,960 17,630 Well positioned for future growth Operating profit, SEK M 1,208 946 The concentration of operations initiated in 1999 was essentially completed during 2003. Profit after net financial items, SEK M 1,091 677

Strategic acquisitions and divestments have Net profit, SEK M 702 410 positioned Trelleborg as a focused industrial group. During the year, a new business area, Earnings per share, SEK 8.40 4.75 Trelleborg Sealing Solutions, was formed as a Unrestricted cash flow per share, SEK 11.30 8.60 result of the acquisition of the precision-seals Debt/equity ratio, % 111 40 division of Smiths Group Plc of the UK. The acquisition has brought additional leading Return on shareholders’ equity, % 9.5 5.5 positions to Trelleborg, as well as a stable Average number of employees 15,855 14,885 platform for further growth.

Business concept Based on its extensive knowledge of polymer technology, markets and customers, Trelleborg develops, manufactures and markets functionally oriented products, systems and services.

Objective Trelleborg’s objective is to capture leading positions and create economies of scale within the areas of research and development, production, marketing and service.

Solid strategic platform Vision • Organic growth Trelleborg’s vision is to be a leading global industrial company, primarily within the polymer • Leading positions in attractive area, by offering: segments and markets • our customers the highest total value in terms of products, systems and services • Optimized operations • our employees a challenging work environment in which to develop • Acquisitions providing synergies • our shareholders a favorable long-term return on their investment

2 3 President and CEO Fredrik Arp:“Society’s trust and respect are vital for financial sucess”

ultures and values shift over time and space, and financial success is not always synonymous with the respect and trust of the world at large. It has become increasingly clear to Trelleborg and other companies that the role of industry and trade is in the process of changing. It is no longer sufficient to create jobs, generate profits and pay taxes. Customers, investors and employees expect more than this from Trelleborg. They expect us to be actively involved in environmental concerns, social issues and work content – in other words, to engage in activities aimed at creating a sustainable society, and to achieve this within the framework of maintained profitability. A key issue in this context is whether traditional methods of doing business can be combined with the sustainability perspective, and whether this is in the interests of all stakeholders. We believe that good business and responsible enterprise complement each other extremely well.

Efficient use of resources and raw materials is good for our cost-efficiency and the environment. Most people take for granted that they should not need to risk their health in their workplace, and it is also obvious that safe and well-organized workplaces create more efficient production conditions. It has also become increasingly apparent that young and well-educated employees, in particular, are demanding ever higher standards from their company, its products and its conduct. They want more than just a pay packet from their employer. Our customers, too, are increasingly formalizing the demands they place on us. This is especially true of the environment area. The automotive industry, for example, requires us to demonstrate a systematic approach to environmental work, declare the contents of our products, and make active efforts to eliminate constituents that are hazardous to health and the environment.

The process of introducing the Group’s Code of Conduct continued during 2003, and a number of control documents were produced. The basic premise of our Code of Conduct is that we respect the rights of the individual, without question, and strictly adhere to local laws and regulations.

4 5 “Society’s trust and President and CEO Fredrik Arp respect are vital for financial sucess”

In addition, we seek to ensure that all business decisions are defensible from a social, environmental and ethical perspective. However, it is by no means easy to achieve success in efforts related to the environment, the work environment and social commitment, and we realize that we are only in the initial stage of these endeavors, which require commitment from management and other personnel and a long-term action program. Moreover, the activities in question must be carried out systematically, based on a clear strategy, objectives and distribution of responsibilities. In the end, we must be able to evaluate our progress and setbacks and report what has happened in a clear and credible manner.

In this year’s Sustainability Report, we use key figures and descriptions to show what has happened in the environment and work-environment areas over a shorter and longer time perspective, as well as reporting on a number of different activities in the social area. I particularly wish to highlight the fact that we are now seeing clear results from the introduction of the ISO 14001 environmental management standard at the various plants. Trelleborg has 82 plants in more than 20 countries with ISO 14001 certification, and the environmental management systems are creating structure in sustainability work, generating substantive savings and reducing environmental impact. The environmental management systems also function as an admission ticket when the company is competing for key delivery contracts in various markets.

Perhaps we can conclude by returning to the question of whether a company can simul- taneously be successful in business terms and be above reproach in its conduct, and whether this benefits all of its stakeholders. My answer is yes, I believe this is possible, and I am convinced that this is how a modern company must operate. I hope that readers of this year’s sustainability report will gain a balanced view of how we work in these areas. In particular, I hope that our more than 6,000 new employees will be able to increase their knowledge of and confidence in Trelleborg’s approach to issues related to the environment, health, safety and society at large.

Trelleborg, March 2004

Fredrik Arp President and CEO

4 5 Organization, management systems and ground rules

Organization and responsibility on a number of fundamental principles, Trelleborg is a rapidly expanding global in- overall guidelines and follow-up systems, but dustrial group. During the most recent ten- individual work tasks are strongly decentra- year period, the Group has grown through lized. This requires that the Group’s managers a large number of acquisitions. In 2003, and employees accept their responsibilities Trelleborg implemented one its largest take- and administer them in a manner that benefits over transactions ever when it acquired the Group as a whole. Sustainability work Polymer Sealing Systems from Smiths Group within Trelleborg is also decentralized and is in the United Kingdom, adding approxi- based on the different conditions faced by mately 6,000 new employees to the work- the individual plants and varying demands force. We are thus a multicultural corporate from local communities. Formal responsibility group, with more than 100 production units, for matters related to the environment, health tens of thousands of different products and, and safety, and for social issues, rests with the not least importantly, a substantial number respective line organizations. This means of demanding customers. that the site managers for each plant have the main responsibility for these issues. Certain A variety of values and priorities must there- of these men and women are full-time specia- fore be harmonized within a uniform cor- lists in the external or work environment, porate culture. Trelleborg’s organizational but duties in these areas are often combined structure and responsibility culture are based with other responsibilities. Examples include

Group staff functions Finance Corporate Communications Environmental Affairs Treasury Legal Affairs President & CEO Human Resources Taxes and Group Structure Business Development

Trelleborg Automotive Trelleborg Wheel Systems Trelleborg Engineered Systems Trelleborg Building Systems Trelleborg Sealing Solutions Antivibration products, primarily Solid industrial tires for forklift Flow systems and engineering Moisture-insulation and sealing A leading global supplier of for the light-vehicle industry, trucks and other material- solutions for several market seg- products for the construction high-quality precision seals for where Trelleborg is a world handling equipment, as well as ments, including the process industry and other sectors, as customers in the industrial, leader. special tires for agricultural and industry, infrastructure and well as for the consumer automotive and aerospace forestry machinery. offshore/oil and gas extraction. market. sectors.

-Approximately 21,000 employees -More than 100 production plants -External and work environment responsibility delegated to each plant -Environmental management systems implemented at 82 plants -Environmental coordinators appointed at all plants

6 7 Organization, management systems and ground rules

managers with dual responsibility for the external and work environment, or for the Vision, business concept and objective external environment and quality.

Group-wide values and guidelines The external environment, work environment and safety are areas that are stringently Core Values regulated by national and international legislation. Naturally, the fundamental requirement for all Group plants is that they follow the law with as much of a long-term perspec- Code of Conduct tive as possible. Furthermore, customer demands on our products in regard to the environment, health and safety shall be met. Supplier Environmental Workplace Future A number of Group-wide documents have Relationship Policy Policy Policies been produced on the subject of core values, Policy ethics and sustainable development to aid site managers, environmental coordinators and other employees. In this regard, the following Local control documents (policies, manuals, procedures, instructions etc.) documents play a key role: • Trelleborg’s Core Values and Code of Conduct. The Core Values are perceived as a natural element of everyday work and cover the concepts of customer focus, per- One of the Group’s environmental auditors, José-Luis Losa, at work. formance, innovation and responsibility. The Code of Conduct defines the Trelle- borg principles in regard to human rights, the environment, health and business ethics. • In the sustainability area, Trelleborg applies three main policies. The Environ- mental Policy, which was introduced in 1998, covers the environment, health and safety. This was supplemented in 2002 with a Workplace Policy and a Supplier Relationship Policy. In accordance with the demands of ISO 14001, detailed local environmental policies exist at all ISO 14001-certified plants. • Trelleborg has Group-wide environmental management systems and a corporate EMS manual. Through the introduction of certified environmental management systems, the individual plants form components in the system. • Finally, a number of binding Group standards and advisory guidelines (position papers) have been established. These control documents are complemented by plant-specific routines and instructions.

6 7 Organization, management systems and ground rules

Environmental management systems a whole. Many units have elected to �� Since 1998, when the program was combine or integrate their environ- initiated, 82 Group plants have been certi- mental management systems with ��

fied in accordance with the ISO 14001 quality and work-environment systems, �� environmental standard, which is a corner- which can often be advantageous. Most �� stone of Trelleborg’s work in the sustain- of the Group’s plants have ISO 9000, ability area. With the exception of plants QS 9000 or other quality systems. �� with few employees, or which are excluded • Savings and increased efficiency in �� for other special reasons, the goal is that regard to the utilization of such � �� all Group plants will be certified as part resources as energy and water. Many of the program. During 2003, 15 units examples are included in the present in Poland, Germany, Spain, Sri Lanka, sustainability report. Singapore, Italy and Turkey were certified. • Fulfillment of customers’ environ-

mental requirements and facilitation ISO 14001-certified plants by country Over the years, Trelleborg has gained a of communications with customers, (% of total number of certificates) great deal of experience from its implemen- authorities and local communities. 12% 2% 24% Sweden tation and maintenance of environmental • Increased cooperation and a greater 2% UK 4% US management systems. The lessons learned exchange of know-how and experience France have been positive and, among other between different Group operations. 4% Spain 4% Netherlands benefits, have resulted in: For example, during the year, environ- Denmark Italy 7% • A more structured approach to mental conferences were arranged in 17% Canada Mexico environmental work at individual Spain and the UK, which were Others 8% plants and throughout Trelleborg as attended by personnel representing 30 16%

During the year, Trelleborg Sealing Solutions’ plant in Malta received a prestigious environmental award.

8 9 Organization, management systems and ground rules

Plants with ISO 14001 Plants with OHSAS Plants with quality Plants with integrated Plants with integrated No. of internal No. of third-party 18001 systems1) systems for QEHS2) systems for QE3) environmental audits environmental audits in 2003 in 2003

82 2 93 24 35 505 119

1) ISO 9000, QS 9000, ISO TS 16949, Ford Q1 and other systems. 2) Quality, environment and work environment. 3) Quality and environment.

Group plants. Environmental audits, number of employees have taken part In recent years, standards for management involving participants from different in internal courses on environmental systems have also been introduced in the units, are conducted regularly. management systems and have been work-environment area. Within Trelle- approved as environmental auditors. borg, the OHSAS 18001 standard is being • Individual employee know-how about We have also produced instructional introduced and two plants in the UK environmental issues has increased. materials, and information is available (Bridgewater and Rotherham) have been Extensive training has been given and to employees on the subjects of certified. The Group plant in Helsingør, many employees have participated in environmental management and Denmark, has completed the first stage different external courses about the environmental auditing and, more of the certification process. A number of environment. For example, 40 specifically, on environmental issues in units are working to introduce a work- employees in Canada have been the rubber industry. The Group’s intra- environment standard. approved as environmental auditors in net system (Trellnet) is of key accordance with ISO 14012/19001, importance in this context. EARA or equivalent standards. A large

8 9 Performance in the sustainability area – environment

Number of employees at Trelleborg's plants Production, processes and plants perspective, it can be seen that the Group Number of plants A large number of polymers are produced as a whole has had both successes and 50 and processed within the Trelleborg Group. setbacks. Naturally, the Group’s expansion 40 While rubber is the dominant product, and the operational focus on polymers leave 30 substantial amounts of polyurethane, PVC, their mark in the statistics. As a result, the 20 polyethene and other plastics are also pro- absolute values for energy consumption and 10 duced. At a few plants, the main activity is other parameters have increased during the 0 metal-processing. Read more about Trelle- past few years. However, in such areas as 0-49 50-149 150-299 300-449 >450 Number of employees per plant borg’s production and processes on the better waste management, safer use of Group’s website, www.trelleborg.com. chemicals and reduced atmospheric Five years in brief emissions, clear improvements can be noted. �� Production takes place at about 100 plants A number of individual plants also show a �� worldwide. While most of the units are in clear improvement in environmental per- �� Europe and North America, about 10 plants formance in a number of other areas. At the �� are located in China, Sri Lanka, Brazil and end of the sustainability report we provide �� other countries. Many plants have only 50- an overview of a number of different �� 150 employees, but the Group also includes sustainability aspects and how we perceive

�� plants with many hundreds of employees. the trend over the past five years. The

�� The largest production plants are Group’s website provides an opportunity for �� Carquefou, France (about 1,000 employees), interested readers to follow developments �� Malta (about 800), Clermont-Ferrand, in the interactive sustainability report (see �� France (about 640), Wuxi, China (about under Sustainability Report). �� 525), Tivoli, Italy (about 525), Trelleborg, �� Sweden (about 515) and Ashchurch, UK Goal-oriented environmental work

�� (about 430). Within the framework of the environmental management system, the various � Five years in brief plants define their own environmental � �� Trelleborg’s operations impact on the ex- objectives and action plans. These are ternal environment through the utilization followed up not only at the local level but �� of natural resources, the use of chemical also through the Group’s environmental

� products, atmospheric emissions, noise in reporting system. The most common the vicinity of plants, the generation of solid objectives for 2003 related to: and liquid waste and the environmental im- • Organizational aspects and training pro- � pact of transports and products. In addition, grams, particularly the introduction of historical contamination of soil and ground- ISO 14001, OHSAS 18001 and training

� water occurs. If these environmental aspects in environmental and safety issues. �� are examined over a relatively long time • Measures to reduce the consumption

Environmental performance 1999-2003

Year Energy consumption Carbon dioxide emissions VOC emissions Waste amounts GWh GWh/employee Tons Tons/employees Tons Tons/employee Tons Tons/employee 1999 760 0.06 101,400 8.0 505 0.04 31,700 2.5

2000 1,012 0.08 129,200 10.5 1,189 0.1 33,000 2.7

2001 1,135 0.07 146,300 9.0 1,528 0.1 43,390 2.7

2002 1,164 0.08 129,000 8.7 1,735 0.1 47,360 3.2

2003 1,263 0.06 140,500 6.9 1,517 0.07 48,400 2.4

10 11 Performance in the sustainability area – environment

of natural resources, especially energy, active in the environmental area. Trelleborg’s stances that could present a serious risk. water and various materials. largest customers are within the automotive The legislation is under discussion in the • Measures to improve the efficiency of industry, which places stringent demands EU. waste management and reduce amounts on its suppliers. The following are some • Companies such as Ford, GM and of waste. examples of environmental requirements Toyota require that subcontractors obtain • Measures to improve work environments that Trelleborg must take into consideration: ISO 14001 certification within the near and reduce the number of work-related • Various types of legislation aimed at re- future. Trelleborg is well equipped to accidents, for example by finding sub- ducing amounts of waste and ensuring meet such requirements. Many car com- stitutes for hazardous substances in that waste is disposed of in a safe and panies require components supplied by processes and products. resource-efficient manner. Within the subcontractors to be free from certain • Reducing atmospheric emissions, thereby EU, the depositing of burnable waste in specified substances that present a health also reducing problems in the vicinity of landfill sites will be prohibited in the or environmental hazard. This may, for plants. near future. This means that Trelleborg example, relate to heavy metals or other and other rubber companies will have to hazardous substances. While such In many cases, managers and personnel ensure that rubber waste is not landfilled requirements can often be met without successfully achieved the objectives they had but reused in an environmentally any major problems, it can sometimes defined. For 2003, 86 percent of plants acceptable manner. This will be an happen that the product’s characteristics reported that they fully or partially achieved enormous challenge for the entire are changed for the worse by the sub- their primary environmental objective. For industry. stitution. Within Trelleborg, many objective number two, the corresponding • Legislation aimed at reducing the health hazardous substances have gradually been figure was 79 percent, and for objective and environmental hazards from the use phased out, but work still remains to be number three it was 90 percent. The main of various chemical products. An done in this area. focus of the individual plants’ environmen- example of this is the use of various new • The car industry now requires that the tal objectives for 2004 resembles those for chemical products, as set forth, for content of the components that go into fiscal 2003 in many respects. example, in the new chemical strategy cars be declared almost down to the last adopted by the European Parliament. A molecule. Behind the requirement is Trelleborg faces many challenges key new element is that the industry will legislation stipulating that cars must be Demands from society and customers be given the responsibility of performing safely recyclable when they reach the end Contributing to a sustainable society is be- risk assessments of chemical products. A of their service life. To make this work, coming increasingly important for the ge- system known as REACH (Registration, a number of car companies have jointly neral public and various interest groups. Evaluation and Authorization of created a system known as the Inter- Most companies face both questions and Chemicals) is to be established for this national Material Data System (IMDS). demands from many different sources. A purpose. REACH requires companies Trelleborg provides data on a large number of new initiatives from the that produce or import chemical sub- number of rubber and plastic products to authorities in various countries affect Trelle- stances to provide basic information and this system. borg’s operations. Trelleborg’s industrial test data, and authorization will be re- customers have also become increasingly quired for each type of use of certain sub-

Tons/employee

10 11 Performance in the sustainability area – environment

Environmental and work-environment fully or partly renewed at about 33 plants �� legislation during 2004. Infringements of specific �� The majority of the Group’s plants require permit conditions occurred at plants in �� permits according to national law in the the UK (inadequate safety training, atmo- countries where they are located, and are spheric emissions, poor traffic safety), subject to regular inspections by the Spain (external noise, Legionnaires’

�� authorities. Some smaller units are not disease, wastewater), the US (discharges

�� classified as requiring permits. Many to wastewater, work-environment �� plants report emissions data and the extent deficiencies, production without environ- �� to which permit conditions are met in se- mental permits, atmospheric emissions), parate annual environmental reports that France (discharges to wastewater, are subject to approval by the inspection Legionnaires’ disease), Sweden (oil spills), authorities. China (external noise), Italy (work- environment deficiencies, discharges to The majority of production plants have wastewater), Mexico (discharges to waste- permits dating from the end of the 1990s. water) and the Netherlands (work- During 2003, existing permits were up- environment deficiencies and storage of dated and applications for new permits hazardous substances, soil contamination). submitted in respect of approximately 35 The infringements did not lead to plants. The environmental permits will be significant measures on the part of the

12 13 Performance in the sustainability area – environment

authorities. In a few cases, fines or penalty rubber industry, and we are gradually charges were imposed. Trelleborg paid a dealing with this legacy from the past. �� combined total of SEK 0.8 M during Examples of soil contaminants are heavy �� 2003. metals, oils and solvents.

�� Utilization of natural resources Decontamination measures have been �� Soil-related issues initiated or already completed at a num- �� In many cases, contamination of soils and ber of plants, as shown in detail in the �� groundwater is technically complicated to table below. Active decontamination

remedy. Possible cleanup measures are pre- measures or inspections are in progress at �� ceded by time-consuming investigations, about 10 plants. Decontamination costs �� and many discussions with environmental are reported in the “Environment and �� authorities. The actual cleanup process finance” section of this report. �� may then take many years, often with sub- �� stantial financial consequences. A natural Energy use �� component of the environmental manage- The most important energy sources for �� Trelleborg are fossil fuels (oil, natural ment systems at Trelleborg’s plants is pre- �� venting contamination from occurring. gas and coal) and electricity. Within the �� Group, energy is used for heating, steam � However, existing contamination at some � � �� production, ventilation, cooling, processes, �� 20 units reflects the long history of the �� Overview of most important soil and groundwater contamination problems

Plant Type of contaminant* Status Trelleborg I, Sweden Heavy metals, solvents. Surveys and decontamination performed during 1995-2000. Results of solvent decontamination being monitored via regular sampling. Small quantities of heavy metals remain in the area. Trelleborg Trebolit, Sweden Creosote contamination dating from Surveys and trials of decontamination methods conducted during 2000-2003. Decontamination the beginning of the 20th century. methods, costs and financing currently being investigated. Ridderkerk, Netherlands Oil and solvents. Decontamination has been carried out in stages since 1992. Vejen, Denmark Tar products in soil and The contamination in question occurred more than 30 years ago. Detailed surveys have been groundwater. performed. Installation of full-scale biological treatment facility is being discussed with the environmental authorities. Helsingör, Denmark Trichlorethylene. Historical contamination for which the City of Helsingør bears responsibility. Some decontamination work under way. Breuberg, Germany Chlorinated solvents. Decontamination initiated in 1989. Groundwater pumped up and filtered. Hoogezand, Netherlands Diesel and process oils. Cleanup of diesel oil under way since 1998. Supplementary surveys carried out during 2003. Evergem, Belgium Oil, solvents. During 2002-2003, detailed surveys were conducted and extensive contamination with chlorinated solvents was discovered. Surveys are continuing and various trials are under way to find a suitable decontamination method. Cleanups of oil and solvents in other areas of the plant are in progress or have been completed. Tivoli, Italy Chlorinated and non-chlorinated The surroundings are protected by pumping up and treating contaminated water. solvents in groundwater. Asti, Italy Chlorinated solvents. Trelleborg Decontamination initiated. Responsibility rests with the property owner. does not own the property. Pamplona, Spain Oil. Soil examinations in progress. Ross-on-Wye, UK Chlorinated solvents. No measures being taken at present. Hartville, US Oil. Trelleborg does not own Oil in a monitoring well is pumped up regularly. the land area. Sandusky, US Chlorinated solvents. Decontamination using “pump and treat” method in progress since 1987. South Haven, US Solvents (xylene, ethylbenzene, Decontamination measures in progress. chlorinated solvents). Dawson, US Chlorinated solvents (trichlorethylene). Surveys performed. Decontamination not yet initiated.

*Most contamination took place before Trelleborg acquired the facilities.

12 13 Performance in the sustainability area – environment

equipment operation and transportation. The Consumption of raw materials and chemical products Group’s total energy consumption during Raw material/chemical product 2001 (tons) 2002 (tons) 2003 (tons) 2003 (excluding transports) amounted to Natural rubber 47,200 58,100 66,000 1,263 GWh (1,164). Although this is an increase in absolute terms compared with Synthetic rubber 66,400 55,700 67,600 2002, energy use per employee declined. Oil Plastics 14,000 11,000 12,300 consumption declined, while consumption of Softeners (HA oils and other oils) 11,600 12,500 11,800 natural gas increased. Utilizing energy more Solvents 1,500 1,800 1,740 efficiently is a natural component in the im- Paints, lacquers, glues and adhesives 1,300 1,600 3,700 provement efforts of the majority of produc- Zinc oxides 3,000 3,100 2,800 tion units. More than 50 plants report reduced energy use compared with 2002, and Diisocyanates 290 740 550 energy savings amount to more than 130 Recovered materials used as raw materials GWh. Large-scale measures are involved when (rubber, plastics) 5,600 10,080 7,740 a new plant has been built (Leicester, UK) or a complete energy-supply system has been million m3 during the year. Water costs affecting the technical properties of the replaced (Clermont-Ferrand, France). Other amounted to approximately SEK 17 M (16) rubber. Biopolymers such as dextran introduce energy-saving measures relate, for example, to during 2003. a biologically degradable element into the compressed air, machines, operating time and rubber. In addition, they replace carbon black, ventilation systems, among other factors. In Raw materials and chemical products a chemical product that is produced from the case of plants that report higher energy The production of products based on rubber fossil fuels. Biopolymers also lead to reduced consumption, the main reason for the change and other polymers involves the use of large emissions of the greenhouse gas carbon is increased production. Energy costs amoun- quantities of raw materials and chemical pro- dioxide. ted to approximately SEK 397 M (358) ducts. Some of these substances are classified during 2003. as environmental and health hazards, while Emissions to air and water others do not have such negative character- As a result of Trelleborg’s energy-production Water consumption istics. We note increasing interest from plants, vulcanizing processes, painting and Water is used at Trelleborg’s plants for cooling, employees, customers and the community at lacquering and metal processing, the Group’s cleaning, purifying metals (phosphatizing), large in these issues, and a number of plants plants emit a number of different substances and sanitation. During 2003, the Group’s report measures aimed at replacing hazardous to the atmosphere. Of particular interest are plants consumed 4.9 million m3 of water substances with less hazardous ones. The use solvents (VOCs), dust, odor-causing sub- (5.4). In many locations, water is purchased of heavy metals (such as lead), chlorinated stances and carbon dioxide. Emissions of from municipalities or cities, but the major solvents, high-aromatic oils (HA oils) and VOCs during 2003 amounted to approx- portion (approximately 70 percent) is pumped certain antioxidants and accelerators declined imately 1,517 tons (1,730), which represents from the Group’s own wells or from water- at a number of units during 2003. The use of a decrease compared with 2002. Installation “environmental salt” in salt baths eliminates the formation of nitrosamines, and such �� measures have been applied, for example, at �� the plants in Värnamo (Sweden). Other ��

�� measures have also been implemented to prevent the formation of nitrosamines in �� vulcanizing processes. The switchover to �� “environmental oils” (HA oils with a PAH �� <3percent) is continuing, and softeners of this type now account for approximately 60 � � � �� percent of total use. Substantial use is made �� of recovered materials and at some plants �� recovered materials constitute a substantial component in new products. courses in the vicinity of the plants. Water of air-cleaning equipment and a switchover to consumption remained high at some of the Promising research work on biopolymers is water-based paints and lacquers contributed Group’s plants, and a number of acquired being conducted at the plant in Tivoli (Italy) to the decrease. Emissions of carbon dioxide companies led to a further increase in con- after it was discovered that dextran, a form are caused primarily by transports and the sumption. Water-saving measures at some 40 of glucose, could be added to rubber mixes combustion of fossil fuels in the Group’s units reduced consumption by about 0.7 under certain circumstances without adversely energy plants. Total carbon dioxide emissions 14 15 Performance in the sustainability area – environment

management costs totaled SEK 35.4 M (33.4). At many of the Group’s plants, efforts are under way to reduce amounts of waste, and more than 35 units report reduced waste amounts compared with the preceding year. Approximately 18,500 tons (16,800) of waste was generated in production during 2003, of which about 54 percent was deposited in landfills, which was less than in the preceding year. Rubber is recycled through energy recovery (incineration) and materials recovery. Approximately 15 percent (14) of total rubber waste was used for energy recovery. The proportion of rubber waste reused in new arising from energy use during 2003 amoun- hundred tons. The largest COD emissions products at Trelleborg’s plants was approx- ted to 140,000 tons (129,000), which is an total for a single plant was reported from the imately 4 percent (3). About 27 percent (24) increase compared with previous years. The plant in Carquefou, France. Emissions of of rubber waste was transferred to external increase is primarily attributable to the incor- heavy metals amount to a few tons per year. companies for various forms of recycling. poration of more than 25 new plants within Most of the plants are connected to municipal the Group. However, carbon dioxide wastewater treatment plants, and there are in- Recycling also takes place in the product emissions per employee declined, and some ternal wastewater treatment plants at plants chain. In Sweden, for example, worn-out 40 production units report a total reduction that perform phosphatizing and other metal- agricultural tires are collected through a of approximately 12,000 tons in carbon processing operations. A few minor problems centralized collection system (Svensk Däck- dioxide emissions. Emissions of sulfur dioxide in treatment plants or difficulties complying återvinning AB). Packaging waste from and nitrogen oxides from energy production with certain limit values were reported from

during 2003 amounted to 401 tons (477) and plants in Spain, Mexico, the US and Italy. �� 1,143 tons (152) respectively. Emissions of sulfur dioxide and nitrogen oxides have shown Waste a declining trend for several years, partly due Large volumes of waste are produced within to a switchover to low-sulfur heating oil at a the Group and a substantial portion of this number of plants. waste is deposited in landfills, which is un- desirable from an environmental viewpoint. �� Emissions to water from the Group’s plants Legislation in many countries is now focused

are limited and primarily consist of organic on efforts to manage waste through materials- �� materials and metals. Measurements of various recovery and energy recovery, which places �� enormous demands on the rubber industry. It �� can be noted that the volume of waste deposited in landfills declined during the year, while �� the proportion of waste used for materials re- �� covery or energy recovery is increasing. How- �� ever, different countries exhibit major differen- �� ces in the level of their ambition to reduce �� amounts of landfilled waste, and this is re- �� flected in the figures for the proportion of �� waste consigned to landfills for Trelleborg’s �� different business areas. � � � � � � �� The Group’s total waste during 2003 �� amounted to 48,400 tons (47,400), of which wastewater parameters are taken at about 25 23,900 tons (27,000) were disposed of as Trelleborg’s plants is collected via centralized plants, usually in order to monitor chemical landfill. About 21,800 tons (16,900) were systems in a number of countries in Europe. oxygen demand (COD), nutrients source-sorted and used for materials recovery Trelleborg is, for example, affiliated to such (phosphorus and nitrogen) and metals (such or energy recovery. The total amount of systems in Sweden, Spain, Italy, Belgium and as zinc, nickel and iron). During the year, hazardous waste produced during 2003 the UK. measured COD emissions amounted to a few amounted to 1,850 tons (2,100). Waste-

14 15 Performance in the sustainability area – environment

Products and the environment from an environmental perspective, A number of products have undergone Rubber and polymer products have both including, for example: life-cycle assessments (LCAs). During favorable and less favorable characteristics • O-rings that prevent leaking of gaseous 2003, more than 30 such assessments from an environmental point of view. The substances to the atmosphere from fuels were conducted. The number of products less favorable aspects include the fact that, and solvents, bearing environmental seals of approval with the exception of natural rubber raw • components that reduce vibration in accordance with official systems is less material, the materials are largely based and noise in cars, trains and other than ten. However, the Group submits on raw materials produced synthetically vehicles, safety and environmental information for from fossil fuels. Various chemicals with • rubber and plastic strips that contribute more than 5,000 products – in the form negative environmental and health aspects to noise suppression and energy of IMDS data and environmental product are used in the processes and, to some savings, declarations. extent, in the products. In addition, • rubber sheeting used in waste tips to systems for the recovery of energy and prevent hazardous substances from Transports and the environment materials are not yet fully developed. leaching out, Some ten plants conduct regular • fenders made from recycled plastic, calculations of atmospheric emissions Demands from society and customers • chemical- and fire-resistant clothing caused by various types of transports. concerning the environmental properties that is used for fire-fighting and dealing However, to date, we do not have a of products are continually increasing and with environmental accidents, comprehensive view of the environmental Trelleborg is participating in a number • hose systems for recovering gasoline effects of transports of raw materials and of projects aimed at improving the fumes when vehicles fill up at service finished products. At most of the Group’s environmental performance of products. stations. plants, more than 90 percent of transports However, it can also be affirmed that are by truck. A limited quantity of goods many products have favorable properties is transported by rail, sea or air. A number

16 17 Performance in the sustainability area – environment

of measures have been taken to reduce the environmental performance through repaired. During the year, some 30 plants environmental impact from transports, questionnaires and visits/audits. Some were inventoried and classified based on and a number of plants now require plants (about 15 percent) have also begun their damage-prevention measures, such transport companies to demonstrate that to include work-environment and social as fire prevention and monitoring. In they have environmental programs or aspects in their assessments of suppliers. total, approximately 55 plants have been environmental management systems. inventoried during the past two years. When things did not go as planned Suppliers and sustainable During each year of operations, events At the production units, 33 (30) development take place that were not planned and complaints were received during The sustainability performance of the could entail risks for the environment and 2003 from nearby residents or other raw materials, products and services people’s health. During 2003, a total of 61 persons inconvenienced by our plants. purchased by Trelleborg impacts indirectly (62) spillages, fires or other uncontrolled The complaints primarily concerned on the environmental performance of the emissions to the environment occurred. unpleasant-smelling local emissions (3 entire Group. Various activities related The incidents were of limited scope, and complaints) and noise (15 complaints). to the interaction between Trelleborg the impact on people or the environment and its suppliers are currently under was negligible. At 17 plants, small-scale way. For example, environmental and fires occurred. These did not result in any health issues are now increasingly being sizeable effect on buildings or equipment. included in assessments of suppliers. In Värnamo, Sweden, an air-cleaning Approximately 45 percent of plants system was destroyed by fire. Following stipulate environmental requirements consultation with the environmental in their agreements with suppliers, and authorities, it was possible for production approximately 50 percent assess suppliers’ to continue while the equipment was

16 17 Performance in the sustainability area – health and social responsibility

Responsible enterprise as well as personal development and More than ever, companies are expected to participation in work. accept their social responsibility. However, • Trelleborg’s positive participation in responsible enterprise is nothing new for society in countries in which we work. Trelleborg. Ethical standards, business skills, We do this through various networks, in social responsibility and environmental open contacts with neighbors and local awareness have long been hallmarks of the inhabitants, and in cooperation with company’s operations. What has happened universities and schools. in recent years is simply that we have forma- lized our commitments in these areas. Using Trelleborg’s employees are active certain fundamental values, the Group’s worldwide Code of Conduct, policies and other control Creating an environment that attracts and documents, we have drawn up shared values develops skilled employees, raises commit- for our employees worldwide. We believe ment and stimulates people to provide our responsibility entails attaining a balance superior performance is a major challenge between the social, environmental and for a global company. Naturally, the challenge economic aspects encompassed by the becomes particularly great in a company that concept of sustainable development. By so is growing organically and via major acqui- doing, we take into consideration the rising sitions. In 2003, Trelleborg gained more demands and expectations in these areas than 6,000 new employees in a large number from customers, shareholders and employees. of countries, with the result that various integration programs have high priority. We During 2003, we worked to propagate our now have a workforce of about 21,000 fundamental values among employees and employees, operations in more than 40 others affected by Trelleborg’s operations. We countries, and industrial facilities in some 25 also further developed the Group’s moni- countries. Overall, some 87 percent of the toring systems to identify areas where im- workforce is employed outside Sweden. provements are needed. Key data and ana- lyses of Trelleborg’s performance in terms of 2003 was dominated by corporate acqui- environment, health and social responsibility sitions; at the same time, however, restruc- are available on our website and elsewhere. turing measures led to personnel cutbacks at Sustainable development at Trelleborg means certain facilities. Workforce reductions were that we focus on: introduced in, for example, the UK, the US, • The interaction of operations with human Sweden and Germany. Some manufacturing health and the environment, in a local plants were closed and some production and global perspective. work was redistributed geographically. Oper- • Employee health and workplace safety, ations during the fiscal year also involved the

18 19 Performance in the sustainability area – health and social responsibility the sustainability area – health and social responsibility

completion or ongoing construction of new mutual respect among people, and the need distinct targets, follow up work and delegate plants. In Leicester in the UK, Trelleborg to make optimal use of the skills available tasks and responsibility to their co-workers. Industrial AVS recently inaugurated its new within the company and to meet specific le- Accordingly, one important task is for em- plant. This entailed the relocation of opera- gislative requirements in certain countries. ployees to continuously develop their skills tions to the outskirts of the city, leading to Trelleborg aims to offer equal opportunities and be stimulated toward further develop- the closure of the centrally located plant, and rights for everybody, irrespective of ment in the Group. This process is taking which dated from 1915. gender, nationality or ethnic origin, age, place in a continuously changing world, which means that leadership issues and the �� supply of managers are ongoing processes �� in the company. To retain continuity and �� occupational skills, Trelleborg strongly em- �� phasizes internal recruitment, and manage- �� ment resources are surveyed every year. An- �� other aim is to encourage the exchange of �� skills and experience among the various parts �� of the operations. The Trelleborg Inter- �� national Management Program (TIMP) is �� available for managers at an early stage in This change is positive in terms of produc- sexual orientation, or religion. It may be their management career. tion, the environment and the work environ- noted that the proportion of women in the ment. In conjunction with the various pro- Group is low but it is probably comparable Company knowledge, business acumen, cesses of change, it is crucial that those with other companies in the same industry. communication, leadership and understand- affected receive adequate information about The incorporation of Trelleborg Sealing ing of cultural differences are example of changes. Personnel turnover (redundancies Solutions increased the percentage of components included in TIMP. About 40 not included) varies among the different women in the Group from about 22 to 27 people from all the Group’s business areas countries and plants and frequently reflects percent. More than 400 women employees participate each year in a 12- day course local labor market conditions. Most units have managerial positions at senior and spread over three sessions. reported less than 10-percent personnel middle management levels. The percentage turnover. The average age for personnel at of women managers has increased in all Excellence in Manufacturing is a training manufacturing plants varies from 23 to 49. business areas during the past three years. program that was prepared and launched in At about 15 of the units, the average age is Studies of employee work satisfaction were 2003. The program covers all business areas higher than 45. The lowest average age (<32) conducted during the year at 43 percent of and is aimed at developing participants’ know- is found among employees in Mexico, Sri facilities. ledge in areas such as optimization of produc- Lanka, Poland and Turkey. tion processes, leadership and the interplay Managers as leaders of production with areas such as finance and Equality and diversity Managers at Trelleborg are expected to quality. The program encompasses 20 people Equality and diversity are areas that involve function as leaders, with the ability to set annually. Each participant has a personal internal coach to further improve training

18 19 Performance in the sustainability area – health and social responsibility

Enhancing skills The Group also participates in a number Employees have numerous opportunities of environmental activities with to enhance their skills. Many participate authorities, industry organizations and in various courses directly linked to their other companies. In Sweden, Trelleborg work assignments. The courses may in- has cooperated with other companies and volve, for example, technical aspects of the Swedish Environmental Protection various production equipment, legal re- Agency in conducting a survey of the en- quirements and quality, health, safety and vironmental situation in the rubber indu- the environment. Courses in the environ- stry. Another example is the chemical ment and safety areas are conducted industry’s international environmental regularly at the plants. The number of program (Responsible Care), to which we course hours in environment and safety contribute annual reporting data. per employee amounted to an average of 5.0 (4.4) in 2003. A number of plants are participating, with other local companies, in the development Employees are also offered skills develop- of environmental management systems, ment via the Trelleborg Academy, which is environmental training and other activities. an umbrella organization for various of MICLU (a coordination body at the Examples of these activities include Group-wide training programs. The university that deals with sustainability sponsoring of educational materials in courses are arranged locally and centrally, issues). Cooperation with the university environmental con- sometimes using various e-learning results in good contacts with researchers servation, traffic safety programs. During 2003, a number of new and students, and over the years many stu- for children, research interactive courses were introduced on dents have conducted degree and research on muscular diseases, Trellnet. work at Trelleborg’s facilities, focusing on sporting activities for the environment. children, car-free days, Social contacts As part of Trelleborg’s sustainability work, Degree projects and reports we participate in various social activities. 2003 - Sulphur-Utilizing Microorganisms in Biotechnological Application. Rubber Recycling and Many of these are local and involve co- Vanadium Reduction. PhD Thesis. Department of Biotechnology, Lund University, Sweden. operation with neighbors, schools and - Determinant factors for the success of environmental management accounting in in- authorities. In the training area, we have dustry. Case study Trelleborg AB. IIIEE, Lund University. worked over a number of years with - Health risks, prevention and rehabilitation in the rubber industry. YMK, Lund University. various universities and schools. Among - Is it worth investing in the health of personnel? School of Economics, Lund University. other activities, environment specialists 2002 - Sustainability reporting. Content and scope in conventional annual reports. Örebro University. from Trelleborg have conducted presen- - Strategic environmental Communication. Case study within the rubber industry – Corpo- tations and lectured in France, Spain, rate environmental reports and corporate websites. IIIEE, Lund University. Colombia and Sweden. The close involve- - Tires – a threat to our environment? Ecological department, Lund University. ment with Lund University in Sweden is - Impact of the Integrated Product Policy on Trelleborg Wheel Systems. Lumes, Lund an example of how the company, the stu- University, Sweden. 2001 - Environmental Report. Trelleborg AB as case study. Lund Institute of Technology, dents and the university benefit from such Sweden. cooperation. Trelleborg’s Board chairman, - Energy survey at Trelleborg Agri. Malmö University, Malmö. Anders Narvinger, is also chairman of the - Can the grey men go green? A study of the expectation gap between financial analysts Lund Institute of Technology, while Trelle- and Trelleborg AB with regard to environmental reporting. School of economics, Lund University, Sweden. borg’s Environmental Coordinator, - Health and environmental risks from chemicals in the rubber industry - a collection of Torbjörn Brorson, is visiting professor in examples. Ecological Department, Lund University. the International Institute for Industrial 2000 - Labelling agricultural tyres at Trelleborg Company: Possibilities and constraints. Lumes, Environmental Economics (IIIEE) at Lund University, Sweden. - Energy use and energy management in tyre manufacturing: Trelleborg I case. Lumes, Lund University, and is part of the edu- Lund University, Sweden. cational council in the Faculty of Natural - Life cycle analysis of shims. Institute of Technology. Kalmar University. Sciences, as well as being on the board 1999 - The rubber industry and extended producers responsibility framework. Lumes, Lund University, Sweden. 20 21 Performance in the sustainability area – health and social responsibility

air quality programs, Health Awareness reporting the lowest work-related accident ment was involved in 14 percent of the Day and numerous other events. During frequency. The number of work-related illnesses. Trelleborg is participating in a 2003, a number of plants received awards accidents involving more than one day’s number of epidemiological studies de- for their environmental and safety work, absence per 1,000 employees averaged 51 signed to survey the health risks in the including the plants in Pamplona (Spain), (58). Overall, 78 (38) contractors were rubber industry. During 2003, researchers Sandusky (US), Malta and Swadlincote victims of accidents at Trelleborg’s at Lund University presented a number of (UK). facilities. Fatal accidents occurred during ongoing studies of the health risks in the the year at two of Trelleborg’s facilities. In rubber industry. As a result of these Work environment issues Denmark, an employee died following a studies, preventive measures were taken at Work environment issues are always at the high-level fall, while in Sweden the death Trelleborg’s facilities in Värnamo to elimi- forefront in society and companies. Many occurred during maintenance work inside nate exposure to carcinogenic nitrosamines programs have been conducted in the work a machine. Activities are in progress in all in the work environment. environment area in the Trelleborg Group. business areas to minimize the number The measures encompass, for example, of accidents, and investments aimed at training, the use of correct personal safety improving the work environment and equipment, technical safety installations, safety amounted to about SEK 36 M scientific surveys and the substitution of in 2003. Examples of activities are risk hazardous chemicals. assessments, surveys of exposure to various substances in the work environment, in Many of the measures have produced the cooperation with researchers, installation desired results, although there are still a of technical safety measures and the intro- number of work environment aspects that duction of management systems in the require continuing attention. Examples of work environment area. A number of such aspects include: facilities are already certified in line with • Exposure to chemical substances, OHSAS 18001, which is a management detergents and vulcanizing fumes. standard focusing on health and safety. • Heavy lifting and repetitive work. A number of facilities are currently • Workplace noise. introducing this standard. Safety • Accidents resulting in cuts, burns and committees are active at about 90 percent crushing injuries. of all plants.

��

� � � � ��

During 2003, we registered 1,069 (740) During 2003, 396 (206) work-related work-related accidents that resulted in illnesses were reported at Trelleborg’s more than one day’s absence. Combined, production plants. About 70 percent of accidents accounted for 18,400 (17,200) the illnesses were localized to movement days of absence. Cuts, burns and crushing organs and consisted of various types of injuries are the most common cause, but strain-related disorders, such as back and injuries to muscles and limbs are also neck disorders. About 8 percent of the common. Accident frequency varies among illnesses were allergies and other hyper- the different business areas, with TSS sensitive reactions. Also, hearing impair-

20 21 Performance in the sustainability area – environment and finance

Environment-related costs Environment-related savings Environment-related and work-environ- In many cases, the introduction of ment costs, plus related investments, environmental management systems totaled some SEK 127 M (138) in 2003. permits a facility to identify potential Costs for energy and water were some savings – for example through more SEK 414 M (373). Costs arising from en- efficient use of energy and water, reduced vironmental work (including waste costs) waste volumes and utilization of recovered totaled SEK 74.8 M (73.1), corresponding to about 2 percent (2) of costs for sales, �� administration and research (SAR). �� Administrative costs included costs for �� environmental departments, permit �� applications, and fees to authorities, costs arising from the implementation and �� maintenance of environmental manage- �� ment systems and consulting services �� purchased. During the year, the Group �� paid about SEK 35.4 M (33.3) for the �� handling, transport and disposal of waste. �� No major provisions were made for environmental measures during the year. materials. The reported savings during the year totaled about SEK 9.5 M (15). Environment-related investments Reduced energy consumption resulted in Total environment-related investments, in- substantial savings, for example, at the cluding treatment plants, preventive pro- units in Ashchurch, Asti, Coventry, grams and investments in work-environ- Dawson, Sjöbo, West Thurrock and ment improvements totaled SEK 51.8 Tivoli. A number of units also pursued (67.9) in 2003, or about 7 percent (9) of programs to cut water consumption, with total investment. Substantial investment Carquefou-Soratech, Sahibabad and programs were conducted at the plants in, Värnamo II reporting savings in this area. for example, Clermont-Ferrand and Another means by which a number of Carquefou (France) and Tivoli (Italy). The plants achieved savings was through re- construction of new facilities often entails ducing waste volumes and creating more considerable investments in preventive efficient waste management procedures. measures. Decontamination of soil and ground-water cost about SEK 2 M (3).

22 23 Sustainability performance Trelleborg the sustainability area – environment and finance Automotive

Trelleborg Automotive is a world leader in the development and manufacture of polymer-based components and systems for noise and vibration suppression in light vehicles. The business area has 40 production plants in Europe, North and South America and Asia. The head office is in South Haven (Mi) in the US. The business area has approximately 8,500 employees.

Organization and management atmospheric emissions of greenhouse gases

systems (CO2) and solvents are considerable. The As in the other business areas, there are frequency of work-related accidents is �� local environmental coordinators at Trelle- below the Group average. �� borg Automotive’s plants. Within Auto- �� motive USA there are specialists with over- Important events during the year �� all responsibility for environment and Measures to reduce energy use were imple- �� work environment issues. The business mented at Asti, Carmi I, Carquefou- �� area has 28 plants that are certified in Prodyn, Dawson, Toluca and Sahibabad, �� accordance with ISO 14001, which corre- among other plants. Training programs �� sponds to some 70 percent of all units. and technical measures aimed at impro- � The following plants obtained certification ving the work environment were imple- �� during 2003: Cerkezhöj (Turkey), mented at a number of plants, including

�� Breuberg (Germany), Pamplona (Spain), Benton Harbor, Carmi II, Morganfield I, and Peru, Carmi I and Carmi II (US). Carquefou-Modyn, Cascante, Cerkezhöj, Diadema, Trowbridge and Guarlhos. The Sustainability performance Guarlhos plant also switched to natural �� It is of particular interest for Trelleborg gas as an energy source, which has reduced �� Automotive that the automotive industry atmospheric emissions. Measures to im- �� imposes stringent environmental require- prove chemicals-handling safety were �� ments, and that key customers were introduced at Diadema, Leicester, �� demanding ISO certification of plants Martorell, Morganfield II, Rethel, Wuxi �� before the end of 2003. In view of the and West Thurrock, among other plants. �� stringent requirements for the recovery of In Wuxi, water consumption in the �� components in cars imposed by the “end- phosphatizing plant was considerably � �� of-life-for-vehicles” directive (ELV) for reduced. A number of plants received cars, Trelleborg provides the automotive write-ups in the local press for their industry with environmental product environmental measures. The ISO 14001 �� declarations for many of its products in certification of the plant in Salisbury, UK, �� accordance with the International Material for example, was described in a feature Data System (IMDS). As a result of its article. At the new plant in Leicester, the �� size, the business area makes a substantial use of trichloroethylene was phased out �� contribution, in absolute terms, to Trelle- and atmospheric emissions of solvents �� borg’s overall environmental impact. were reduced to a minimum by installing Twelve plants have more than 150 an effective treatment facility. �� employees, and six have more than 300 � employees. Energy consumption and ��

�� Key figures 2003 2002 Energy consumption 500 GWh (40% of Group total) 552 GWh �� Water consumption 992,000 m3 (21% of Group total) 832,100 m3 �� Emissions of VOCs to air 888 tons (57 % of Group total) 1,240 tons �� Recycled waste 7,220 tons (38% of Group total) 7,670 tons �� Landfilled waste 11,700 tons (49% of Group total) 17,400 tons ��

�� Accident rate 45/1,000 employees (Group average: 51/1 000 employees) 53/1,000 employees �� Number of ISO 14001 certificates 28 (34% of Group certifications) 21 � ��

22 23 Sustainability performance Trelleborg Wheel Systems

Trelleborg Wheel Systems is a leading global supplier of tires and complete wheel systems for forest and agricultural machines, forklift trucks and other transport vehicles. The business area has some 2,100 employees and seven manufacturing plants in Europe, the US and Southeast Asia. The head office is in Rome.

Organization and management Important events during the year systems Work aimed at improving systems and There are environmental coordinators routines for monitoring atmospheric �� at all plants within Trelleborg Wheel solvent emissions was carried out �� Systems. Six plants within Wheel Systems in Hartville. Preparations for the �� are certified in accordance with ISO introduction of ISO 14001 at the plants �� 14001, which corresponds to 86 percent in Sri Lanka resulted in a large number �� of all units. The units in Sävsjö (Sweden) of environmental and work-environment

�� and Walgama (Sri Lanka) were certified measures. Nitrosamine-forming

� during 2003. accelerators were eliminated and the use �� of HA oils was reduced. Atmospheric

�� Sustainability performance emissions were also reduced. Technical The production of large tractor tires and measures were implemented to reduce other types of tires is relatively resource- noise and vibrations. Examples of other �� intensive. Accordingly, production equip- measures taken include the purification �� ment and plants within the business area of drinking water, the introduction of �� are fairly large. Two of the units have hygienic meals and traffic safety. Improved �� about 200 employees and three units have fire safety was introduced in Sävsjö. In �� more than 300 employees. The environ- Tivoli, three transformers containing �� mental impact in the form of water and PCBs were removed. Two underground �� energy consumption, atmospheric tanks were dug up, asbestos was removed � �� emissions and waste is substantial. Heavy and safety measures on machines were manual work is common and the accident implemented. At Trelleborg I, the number rate is the highest in the Group. During of work-related accidents declined and �� the past few years, the introduction of ISO the environment-disturbing hot-stretch �� 14001, among other measures, has plant was closed. The plant in Evergem �� resulted in clear improvements in the (Belgium) has now been closed down, and �� business area’s environmental per- the necessary soil examinations are being �� formance. carried out in cooperation with the

�� environmental authorities and researchers.

� ��

�� Key figures 2003 2002 Energy consumption 299 GWh (24% of Group total) 315 GWh �� Water consumption 2,948,000 m3 (60% of Group total) 3,299,070 m3 �� Emissions of VOCs to air 95 tons (6% of Group total) 69 tons �� Recycled waste 3,785 tons (20% of Group total) 3,680 tons �� Landfilled waste 1,558 tons (6% of Group total) 2,250 tons ��

�� Accident rate 108/1,000 employees (Group average: 51/1,000 employees) 74/1,000 emlpoyees �� Number of ISO 14001 certificates 6 (7% of Group certifications) 5 � ��

24 25 Sustainability performance Trelleborg Engineered Systems

Trelleborg Engineered Systems is a leading global supplier of safe flow systems, support bearings, coatings, seals and protective equipment. The business area has approximately 2,900 employees and nearly 20 manufacturing plants in Europe, Canada, Australia and Singapore. The head office is in Trelleborg, Sweden.

Organization and management Important events during the year systems The energy supply project (trigeneration Each of the various plants has an project) in Clermont-Ferrand has reduced �� environmental coordinator. At the water consumption and emissions �� Trelleborg plant there is a specialist of NOx, CO2 and SO2 by nearly 70 �� Environmental Technology organization percent. During the past four years, the �� to support Engineered Systems, among amount of waste consigned to landfills �� other organizations. In Izarra there is an in Collingwood has been reduced by

�� environmental specialist who works in at least 50 percent. Transports between

� part with Group-wide issues. A total of 16 the plants in Hemse and Havdhem have �� plants within the business area are certified been reduced from four per day to one

�� in accordance with ISO 14001, which per day. Work-environment and safety corresponds to approximately 85 percent training courses were provided in Ede, of all units. During 2003, the Hercules Clermont-Ferrand, Izarra, Rechlin, �� plant (Singapore) and the Hoogezand Runcorn, Singapore, Santander and �� plant (Netherlands) obtained certification. Zillmere, among other locations. Several �� environmental and work-environment �� projects focusing on waste and energy �� Sustainability performance �� The largest plant in the business area, were implemented at Trelleborg I. �� with approximately 630 employees, is Extrusion facilitated by lead was �� in Clermont-Ferrand (France). Most discontinued during the year at Trelleborg � �� of the units within Engineered Systems II. Measures relating to hazardous are smaller, with 50-150 employees. In chemicals were also implemented in a Group-wide perspective, Engineered Mjöndalen, Ridderkerk and Örebro. �� Systems’ energy consumption and carbon �� dioxide emissions are moderate. Emissions �� of solvents (VOCs) are relatively high, but �� declined during 2003. The business area’s �� accident rate is above the Group average,

�� but declined during the year.

� ��

�� Key figures 2003 2002 Energy consumption 217 GWh (17% of Group total) 179 GWh �� Water consumption 487,000 m3 (10% of Group total) 626,780 m3 �� Emissions of VOCs to air 319 tons (21% of Group total) 419 tons �� Recycled waste 3,260 tons (17% av of Group total) 3,100 tons �� Landfilled waste 5,490 tons (23% of Group total) 5,370 tons ��

�� Accident rate 50/1,000 employees (Group average: 51/1,000 employees) 65/1,000 employees �� Number of ISO 14001 certificates 16 (20% of Group certifications) 14 � ��

24 25 Sustainability performance Trelleborg Building Systems

Trelleborg Building Systems is a leading supplier of polymer- and bitumen-based building products, such as sealing strips, sealing layers for roofs and for sealing landfills, and sealing systems for concrete and plastic pipes. The business area has about 1,200 employees and conducts operations at about 15 manufacturing plants in Europe. The head office is in Trelleborg, Sweden.

Organization and management that are produced help to reduce energy systems consumption in buildings, while some of Each of the various plants has an environ- the sealing-layer materials are used in ways �� mental, quality and work-environment that protect the environment – in landfill �� coordinator. The environmental coordi- sites, for example. �� nators cooperate on issues related to en-

�� vironmental management systems, permits Important events during the year and safety. For example, coordinated en- In Höganäs, the use of chemical additives �� vironmental audits are performed at the in the cooling water was reduced, and a �� plants in the Värnamo region. Eight units switch was made from landfilling of waste � within the business area are certified in to incineration. In the new extrusion line �� accordance with ISO 14001, which installed in Mosbach, the salt used in the �� corresponds to about 60 percent of all salt bath is recovered. Salt consumption units. The plant in Vejen (Denmark) was and emissions to the wastewater system certified during 2003. have been reduced by 90 percent. Risk �� assessments of the work environment were �� Sustainability performance performed in Värnamo, and environ- �� The production units within Building mentally friendly salt was introduced. �� Systems are relatively small, with an At Värnamo II, a successful system for �� average of 75 employees. Due to the focus recovering heat and energy was installed. �� of the business area’s operations, environ- At Vejen, waste amounts were reduced. �� mental impacts in the form of energy and During 2003, the business area acquired �� water consumption and waste are relatively units in Germany (ETU) and the UK �� low. Solvent emissions are extremely low (Telford), and the Pipe Seals unit was and atmospheric emissions of carbon formed at the beginning of the year, with

�� dioxide are moderate. The quantity of production in Forsheda (Sweden) and waste recycled increased considerably Poland. Activities are in progress aimed �� during the year, while water consumption at transferring mixing capacity from �� was halved. The accident rate within Värnamo I to Forsheda. A plant in Spain �� Building Systems is below the average for (Santander) was transferred to Building

�� the Trelleborg Group. The sealing strips Systems during the year.

��

� ��

�� Key figures 2003 2002 Energy consumption 73 GWh (6% of Group total) 88 GWh �� Water consumption 177,000 m3 (4% of Group total) 338,800 m3 �� Emissions of VOCs to air 2 tons (0,1% of Group total) 3 tons �� Recycled waste 3,208 tons (17% of Group total) 2,400 tons �� Landfilled waste 1,309 tons (5% of Group total) 2,040 tons �� Accident rate 45/1,000 employees (Group average: �� 51/1,000 employees) 34/1,000 employees �� Number of ISO 14001 certificates 8 (10% av koncernens certifikat) 7 � ��

26 27 Sustainability performance Trelleborg Sealing Solutions

Trelleborg Sealing Solutions is a leading global supplier of precision seals for industrial, automotive and aerospace markets. The business area has approximately 6,700 employees and conducts operations at some 30 production plants in Europe, the US and Mexico, among other locations. The head office is in Stuttgart, Germany.

Organization and management generally small dimensions of the products, systems the environmental impact caused by Sealing Solutions previously belonged to Sealing Solutions is less than for several of �� the Smiths Group industrial concern in the other business areas within Trelleborg. �� the UK. In many respects, this company However, solvents are used extensively and had organized its environmental and the business area landfills a relatively large �� work-environment activities on the same amount of waste. The waste from one of �� lines as Trelleborg. The introduction of the main products – PTFE, or Teflon – is �� environmental management systems is at present difficult to recycle. assigned a high priority, and environ- �� mental-performance data are collected Important events during the year � regularly and published in an annual en- In Ashchurch, training was given in �� vironmental report. Each of the different quality and environmental management. �� plants within Sealing Solutions has an en- Two major spillages of oil in Ashchurch vironmental, quality and work-environ- were prevented from spreading due to ment coordinator, and in the UK and the emergency planning and technical measures. Energy savings relating to com- �� US there are environmental specialists who work in a supervisory capacity covering pressed air were implemented in Bridge- �� several plants. Twenty-three units within water. Energy projects were also imple- �� the business area are certified in accord- mented in Broomfield, Conde sur �� ance with ISO 14001, which corresponds Noireau, Knareborough, Turin and �� to about 77 percent of all units. The plants Tijuana. Measures to reduce amounts of �� waste were initiated at a number of units, �� in Warsaw (Poland), Conde sur Noireau (France), and Rio Saliceto and Turin including Warsaw, Fort Wayne, Tijuana �� and Ross-on-Wye. Sealing Solutions is a � (Italy) were certified in accordance with �� the OHSAS 18001 work-environment significant employer in Malta. For its standard during 2003. proactive environmental work, Sealing Solutions was presented with the Environ- �� Sustainability performance ment Award in Industry 2003. Health and �� Most of the production units within safety issues are constantly in focus, and

�� Sealing Solutions have 50-150 employees. this is exemplified by the introduction of Six units are relatively large, with more management systems (OHSAS 18001) in �� than 300 employees. Both rubber poly- Helsingør and Bridgewater. A thermal �� mers and plastics such as polyurethane are oxidizer installed at the Somersworth handled within Sealing Solutions. As a plant has reduced atmospheric emissions. �� result of the focus of production and the � ��

�� Key figures 2003 2002* Energy consumption 173 GWh (14% of Group total) – �� Water consumption 126,000 m3 (3% of Group total) – �� Emissions of VOCs to air 238 tons (15% of Group total) – �� Recycled waste 1,660 tons (9% of Group total) – �� Landfilled waste 3,800 tons (16% of Group total) – �� Accident rate 44/1,000 employees (Group average: �� 51/1,000 employees) – �� Number of ISO 14001 certificates 23 (28% of Group certifications) – � �� * Following the acquisition of the precision-seals division of Smiths Group Plc of the UK during 2003, Trelleborg Sealing Solutions is incorporated as a new business area within the Trelleborg Group. 26 27 Important sustainability work under development

In both the short and the long term, Trelle- This year’s Sustainability Report shows that borg’s processes, products and services interact Trelleborg is on the right track in many areas. with the external environment. Aspects that It is clear that a number of small but significant affect the environment, health and social steps in the right direction have been taken at conditions change over time, and through our plants throughout the world. The over- systematic efforts we can reduce environmental view in the table below, which covers the impact and create safer workplaces. Customer environment, health and social conditions, requirements, more stringent environmental shows how we view these aspects from a Group legislation and increased insight into the perspective. We have also shown, using simple importance of sustainability issues in society symbols, how we perceive our successes and are forcing most industrial companies to make setbacks in a five-year perspective. improvements to processes and products.

ãImproved situation âUnchanged situation äWorsened situation pLow priority 3⁄4Medium priority High priority

Environmental Priority Examples of environme- Threats and Trend Comments aspect level ntal, health and other opportunities 1998-2003 impacts

Location Disturbance due to noise, A number of the Group’s plants Disturbances have declined transports and unpleasant odors. are located in the central parts of substantially at a number of various urban areas. Complaints are plants. Some complaints are received from neighbors. still received from neighbors.

Soil and groundwater Historic contamination of soil There is contamination at about Time-consuming investigations and groundwater. Oils, heavy 20 plants. Soil decontamination is and cleanups are in progress. metals and solvents are expensive and takes a long time. New instances of contamination examples of contaminants. have been discovered during the past few years.

Consumption of natural Environmental impact from rubber High degree of dependence on raw Use of raw materials has resources (raw materials) plantations during production materials based on fossil carbon become more efficient at of natural rubber. Utilization of compounds. Through the more many plants. nonrenewable resources during efficient use of raw materials, the production of synthetic rubbers Group can save money and reduce and other polymers. environmental impact.

Consumption of natural Utilization of nonrenewable The Group mainly uses fossil Energy-saving programs have resources (water, energy) energy resources (oil, natural fuels (oil, natural gas, coal). been implemented at many gas). Clean water is a scarce plants. The proportion of oil resource in many countries. used as a fuel has decreased, while that of natural gas has increased.

Use of chemical products Hazardous substances are Demands are increasing from the Many plants report that the use common in the rubber industry. authorities and customers for a of hazardous substances has Environmental and health risks reduction of the environmental and decreased and handling has can result from the handling of health risks caused by chemicals. become safer. toxic and persistent chemicals. However, remedial measures can be expensive and technically difficult to implement. Emissions to air Carbon dioxide from the Group’s Carbon dioxide taxes and trading Many plants have implemented energy plants contributes to in emissions rights are expected measures to reduce emissions the greenhouse effect. Solvent to progressively generate costs for of solvents and other emissions cause local formation the Group. Legislation to reduce atmospheric pollutants. Carbon of photochemical oxidants, emissions to air is becoming dioxide emissions have also among other effects. Dust, increasingly strict. The tolerance declined in recent years. vulcanizing fumes and odors level of nearby residents is can cause a local environmental expected to decline. impact. Noise (outdoors) Neighbors may be disturbed. Noise-reduction measures can A certain number of complaints Limit values for noise may be be difficult and expensive to have been received, but exceeded. implement. The noise issue is complaints about noise are becoming increasingly prominent in relatively common. many countries.

28 29 Important sustainability work under development

Emissions to water Municipal treatment plants and Emissions to water are limited Improved wastewater watercourses can be affected and wastewater is treated treatment has been introduced by chemical products and other internally at a number of units. at some plants, but minor emissions. Metals, nutrient salts problems with the quality of and biological materials are wastewater occur in certain examples of contaminants. locations.

Waste Landfill capacity has already been Waste issues have high priority Improved waste management exceeded in a number of countries. in many countries. For the Group has been implemented at Incineration can produce emissions this means increased costs and the majority of plants. The of air pollutants. Storage and demands for waste reduction proportion of waste consigned transport of hazardous waste and recovery/ to landfills has declined at can lead to health-related and recycling. many locations within the environmental risks. Group.

Spills, fires and unforeseen Serious injury to people in the Minor incidents involving fires, Preventive risk reduction situations vicinity can result from fires and spills and leakages occur measures are being imple- uncontrolled emissions. relatively commonly within the mented Group-wide. Fire in- Group. Demands from insurance cidents and spillages have companies for preventive decreased in recent years. measures are increasing. The costs involved may be high.

Products Products whose useful life is over Demands are increasing from Substitution of hazardous generate waste. The products customers, particularly in the substances has improved contain chemical substances that automotive and construction the characteristics of can spread in the environment. industries, for information on certain products from an However, many of the Group’s products’ environmental and environmental viewpoint. products contribute to a better health characteristics. Environmental information is environment provided for many products.

Packaging Packaging generates waste at Environmentally compatible Essentially unchanged customer premises. packaging solutions often situation. Reuse of transport increase customer satisfaction packaging is not uncommon. and reduce environmental impact.

Transports Use of nonrenewable natural Transports of raw materials The environmental impact resources (fossil fuels). Emissions and finished products are of transports has not been of greenhouse gases and air substantial within the Group. adequately surveyed. pollutants.

Work environment risks Exposure to chemicals in the rubber Demands from the authorities, Over the years, the work industry can lead to allergies, employees and trade unions environment in the rubber respiratory diseases and other for a safe work environment industry has improved health problems. Crushing injuries, continue to be high. considerably. However, the cuts and burns are common. Heavy accident rate is still high and lifting and repetitive tasks can lead numerous sources of risk to strain-related injuries. Noise can remain, relating to chemical result in hearing impairment. Stress products, heavy lifting and can lead to psychosocial illnesses. repetitive work, for example.

Values and relations at Poor working conditions and a lack Various corporate scandals have During the past few years, a workplaces of respect for human rights have a increased the focus on issues number of actions have been negative effect on employees and relating to ethics, morals and taken to introduce Trelleborg’s give the company a bad reputation. human rights, and demands Code of Conduct and Workplace from stakeholders and society Policy. at large are becoming more rigorous.

Social commitment Commitment on the part of the Demands for social commitment Trelleborg participates in Group to environmental and social on the part of industry are various community-related issues can have a positive impact increasing. The image as a activities in a number of at the local level. good corporate citizen and an countries. Commitment to attractive employer could be sustainability issues jointly strengthened by a proactive with universities and institutes company. of technology remains at a high level.

Suppliers The work environment, social Inappropriate behavior on the An increasing number of conditions and environmental part of suppliers can harm plants within Trelleborg report impact of suppliers indirectly Trelleborg’s reputation and that they impose various affect Trelleborg’s sustainability result in increased costs. environmental requirements on performance. suppliers.

28 29 Reporting principles

Plants included in the Sustainability Report (number of employees in parentheses) Contents of Sustainability Report Automotive The Trelleborg Group’s Sustainability Report for Italy Asti (74) 2003 covers aspects relating to the environment, Germany Breuberg (428) health, safety and social issues. Trelleborg’s am- Spain Burgos (114), Cascante (105), Martorell (211), Pamplona (317), Tarazona (96) bition is that the report, together with supple- Sweden Sjöbo (88), Kalmar (115) mentary information, will provide employees and UK Coventry (168), Leicester (206), West Thurrock (268), Trowbridge (246) external stakeholders with a clear picture of the France Carquefou-Modyn (428), Carquefou-Polyspace (176), Carquefou-Prodyn (73), Carquefou- Group’s activities in the above-named areas, and their commercial consequences. We hope that the Soratech (407), Poix Terron (83), Wirty Les Reims (211), Rethel (177) report will be of interest to various categories of Turkey Cerkezhöy (124) stakeholders, and we welcome readers’ comments Czech Republic Dobrovice (24) and suggestions for future improvements. The US Benton Harbor (146), Carmi I4) (64), Carmi II5) (133), Dawson (120), Kent (18), Logansport current report is scheduled for publication in (438), Morganfield I (214), Morganfield II6), Peru (211), Salisbury (38), Sandusky (267), April 2003 and will be accessible, together with South Haven (128) Trelleborg’s Annual Report, on the Group’s Mexico Toluca (117) website:www.trelleborg.com. Both reports are Brazil Diadema (99), Guarlho (464) published in Swedish and English, and can be India Sahibabad (212) ordered from the Group’s Corporate Communi- China Wuxi (526) cations Department. In accordance with standard Wheel Systems reporting practice, Trelleborg AB also reports on Denmark Hadsten (100) any significant events that have occurred between Sweden Trelleborg I1) (351), Sävsjö (42) the close of the fiscal year and the completion of Italy Tivoli (550) the Sustainability Report. US Hartville (185) Sri Lanka Sapugaskanda (437), Walgama (219) Division of environmental information

between Annual Report and Sustainability Engineered Systems Report France Clermont-Ferrand (638) The Trelleborg Group’s Annual Report for 2003 Netherlands Ede (65), Ridderkerk (99), Hoogezand (50) provides general information about the company’s Norway Mjöndalen (207) environmental situation in accordance with the Spain Izarra (288) requirements in Swedish legislation regarding Sweden Hemse (75), Trelleborg I1) (164), Trelleborg II5) (73), Ystad (112), Örebro (104) environmental information in the Board of UK Hull (67), Runcorn (26), Scunthorpe (12) Directors’ Report. Compared with the Annual Germany Rechlin (13) Report, the Sustainability Report contains supple- Canada Collingwood (48) mentary and more detailed information. In Singapore Singapore (193) addition, a global perspective on environmental Australia Zillmere (54) issues is adopted in the Sustainability Report, Building Systems while the information in the Annual Report Sweden Bor (64), Höganäs (71), Rydaholm (81), Värnamo I2) (145), Värnamo II3) (153), Österbymo (21) focuses on the Swedish operations, in accordance Denmark Vejen (37) with Swedish law. Finland Vihti (13) Germany Mosbach (95), Papenburg (77) Scope of the Sustainability Report The Trelleborg Group comprises Group Manage- UK Minworth (68) ment, four business areas and a minority interest Spain Santander (70) in Trenor (Trelleborg’s former distribution sector). Sealing Solutions In this Sustainability Report, “Trelleborg” refers UK Ashchurch (436), Bridgewater (118), Cranleigh (23), Knaresborough (33), Milford Haven (69), to the Group’s five business areas. Trenor is not Newtown (138), Ross-on-Wye (147), Rotherham (85), Swadlincote (304) included in the report. See the table for the plants France Conde sur Noireau (127) included in the report. Two plants in West Sweden Forsheda (388), Mörbylånga (199), Ersmark (212) Thurrock report jointly, as do three plants in Denmark Helsingör (341) Malta. Given in parentheses is the number of em- Italy Livorno (161), Rio Saliceto, Turin (143) ployees at each plant. The distribution operations Poland Warszawa (74) within Trelleborg Goodall (US) are not included Malta Malta (793) in the report. The Sustainability Report covers US Broomfield (123), Fort Wayne (234), Somersworth (181), Eugene (18) performance relating to the environment, health, Canada Guelph (143) safety and social conditions at the production Mexico Tijuana (386) units worldwide. Operations that belonged to the 1) Main plant, Trelleborg, Sweden. 2) Main plant, Värnamo. 3) Norregård plant, Värnamo. group for most of the fiscal year are reported. For 4) Carmi mixing plant. 5) Carmi moulding plant. 6) Dawson plant. 7) Trelleborg E plant.

30 31 Terms, definitions and clarifications

the plants within Trelleborg Sealing Solutions, Terms and definitions Global Reporting Initiative (GRI) oxidation of nitrogen. Harmful to data for the entire fiscal year are given, despite the Environment-related costs GRI is an organization working human health and the environment. Asti (74) These are costs related to measures toward a method for overall reporting Cause acid rain and eutrophication. Breuberg (428) fact that the acquisition formally occurred during for preventing, reducing or repairing and assessment of an operation, in- the latter part of the year. No information is environmental damage directly cluding the social and environmental PAHs Burgos (114), Cascante (105), Martorell (211), Pamplona (317), Tarazona (96) associated with operations. The perspectives, as well as financial Polyaromatic hydrocarbons. Some provided on operations that were closed down or Sjöbo (88), Kalmar (115) corresponding measures taken with aspects. are carcinogenic. PAHs are released divested during 2003. This means that the plants regard to health and safety in the to the atmosphere from vehicle Coventry (168), Leicester (206), West Thurrock (268), Trowbridge (246) in Nastätten (Germany) and Kent (US) are workplace are also included. The GWh exhaust fumes and small-scale wood- Carquefou-Modyn (428), Carquefou-Polyspace (176), Carquefou-Prodyn (73), Carquefou- costs reported include, among other Gigawatt-hour, 1 billion watt-hours. fueled heating, and in conjunction omitted from the report. A few smaller plants are items, administration and external- with vulcanization processes in the Soratech (407), Poix Terron (83), Wirty Les Reims (211), Rethel (177) also omitted from the report. For a number of consulting expenses, fees to HA oils rubber industry. PAHs also occur Cerkezhöy (124) central parameters, the Group’s combined authorities, costs for introducing Softeners containing a high concen- in extremely low concentrations in and maintaining environmental tration (>3%) of carcinogenic poly- conjunction with bitumen use within Dobrovice (24) environmental performance is reported. Separate management systems, and charges aromatic hydrocarbons (PAHs). Trelleborg Building Systems. 4) 5) Benton Harbor (146), Carmi I (64), Carmi II (133), Dawson (120), Kent (18), Logansport data are also provided for the five business areas in for external inspections and audits. (438), Morganfield I (214), Morganfield II6), Peru (211), Salisbury (38), Sandusky (267), IIIEE Polyurethane respect of a number of key parameters. For certain Environment-related investments The International Institute for Group of polymers with structures South Haven (128) parameters, figures are given for those plants that These are investments in assets Industrial Environmental Economics linked by urethane bridges. At Toluca (117) have the greatest impact on the Group’s combined designed to prevent, reduce or repair (IIIEE) is a research institute at Lund Trelleborg, polyurethane is used for damage to the environment University in Sweden. Trelleborg has O-Rings and for solid tires. Various Diadema (99), Guarlho (464) results. A total of 103 (82) organizations through- associated with operations. The worked in cooperation with the diisocyanates, such as TDI or MDI, Sahibabad (212) out the world contributed to the report. The corresponding investments made institute for a number of years and are used in the production process. with regard to health and safety in plants named in the table on the preceding page supports its research and teaching Wuxi (526) the workplace are also included. activities. A number of students PTFE are included in the Sustainability Report. have produced postgraduate Polytetrafluoroethylene is a heat- Environment-related provisions dissertations based on Trelleborg’s tolerant polymer used in the pro- Hadsten (100) These are financial provisions to operations. The institute’s website is duction of O-Rings at Trelleborg Trelleborg I1) (351), Sävsjö (42) Reporting principles cover liabilities and allocations for at www.iiiee.lu.se. Sealing Solutions. The polymer is Trelleborg’s Sustainability Report is not based on known commitments and necessary best-known in everyday life as Teflon, Tivoli (550) any particular international guidelines for en- measures to prevent, reduce or repair Hazardous waste used for example as a surface coating Hartville (185) damage to the environment Waste requiring special handling. for irons. vironmental reporting. The choice of the para- associated with operations. Different countries have different Sapugaskanda (437), Walgama (219) meters reported and the method of reporting are definitions and regulations, and SGI Clarifications national standards are frequently Swedish Rubber Industry Association partly based on the Global Reporting Initiative BLIC changed, making it more difficult to (Svenska gummiindustriföreningen). Clermont-Ferrand (638) (GRI, 2002) and Deloitte & Touche (Checklist The Association of European Rubber report on hazardous waste. Within Trelleborg AB participates in SIG’s Ede (65), Ridderkerk (99), Hoogezand (50) 2003). Each plant supplies data in accordance Manufacturers. Trelleborg partici- the EU, hazardous waste is classified Environment Committee, among Mjöndalen (207) pates in the work of the Health & in accordance with the European other activities. with the Group’s standard for sustainability Environment Committee, among Waste Code (EWC). Izarra (288) reporting, and each plant manager is responsible other activities. Website: www.blic.be. SO2 (sulfur dioxide) Hemse (75), Trelleborg I1) (164), Trelleborg II5) (73), Ystad (112), Örebro (104) for quality-assuring the data provided. Data are ISO 14000 Sulfur dioxide is formed when Carbon dioxide (CO ) A series of international standards for petroleum products are burned. SO Hull (67), Runcorn (26), Scunthorpe (12) compared with figures from previous years and 2 2 CO2 is formed in all carbon com- environmental management systems contributes to the acidification of Rechlin (13) are verified, by random sampling, against the bustion processes. The gas is released (ISO 14001), life-cycle assessments, lakes, streams and soil, and causes in substantial amounts when petrol- environmental audits, environmental coniferous trees to shed their needles. Collingwood (48) plants’ environmental reports to the authorities eum products are used. It is likely labeling, environmental performance Large concentrations in the environ- Singapore (193) and data supplied in conjunction with the en- that atmospheric emissions of carbon evaluation and environment-related ment are harmful to human health. vironmental reviews conducted in preparation for dioxide increase global warming terms and definitions. Many plants Zillmere (54) (greenhouse effect). within the Trelleborg Group are VOC s (Volatile Organic Compounds) the introduction of ISO 14001. The information certified in accordance with ISO The VOCs referred to in this report Code of Conduct 14001. Read more about ISO 14001 comprise unchlorinated and Bor (64), Höganäs (71), Rydaholm (81), Värnamo I2) (145), Värnamo II3) (153), Österbymo (21) in the present report refers to the year 2003. Key figures are presented in text, tables and diagrams. Behavior code for Trelleborg’s at www.iso.org. chlorinated solvents. VOC emissions Vejen (37) employees. Supplemented by policies contribute to local atmospheric Where appropriate, data for 2002 are provided relating to the environment, work- LCA (Life Cycle Assessment) environmental effects, including the Vihti (13) in parentheses following the information for places and relations with suppliers. A management tool for assessing and formation of ground-level ozone. Mosbach (95), Papenburg (77) quantifying the total environmental Many VOCs constitute a direct 2003. This year’s Sustainability Report represents Minworth (68) Environmental aspects impact of products and activities health risk. a further development of the environmental The parts of an organization’s over their entire lifetime, based on Santander (70) reports from previous years. The same reporting activities, products or services that an analysis of the entire life cycle of a Work-related accident interact with the environment. An particular material, process, product, A work-related accident is a sudden principles apply in the case of parameters reported overview of the Trelleborg Group’s technology, service or activity. LCA event related to work that gives rise Ashchurch (436), Bridgewater (118), Cranleigh (23), Knaresborough (33), Milford Haven (69), in previous years. In the case of carbon dioxide, key environmental aspects is in- methodology is described in ISO to a wound or other physical injury. Newtown (138), Ross-on-Wye (147), Rotherham (85), Swadlincote (304) sulfur dioxide and nitrogen oxide emissions cluded in the present report. 14040. A typical injury in the rubber industry is a minor cut or crushing injury. Conde sur Noireau (127) resulting from the burning of fossil fuels, Environmental management system Legionella Trelleborg reports the number of Forsheda (388), Mörbylånga (199), Ersmark (212) conversion factors based on the energy content The part of the overall management Bacterial respiratory infection work-related injuries that give rise to system that includes the (Legionnaires’ disease). one or more days of absence, called Helsingör (341) and quality of the fuel used are employed. Figures organizational structure, planning, Lost Work Cases (LWCs). The injury Livorno (161), Rio Saliceto, Turin (143) for emissions of VOCs (solvents) are based on activities, distribution of responsi- Nitrosamines rate is then normed by stating the measurements at the plants where they occur, but bility, practices, procedures and Substances that can cause cancer in number of such injuries per 1,000 Warszawa (74) resources for developing, implemen- animals and humans. Formed during employees (LWC/1,000). Malta (793) in most cases VOC emission data is based on mass- ting, performing, reviewing and certain vulcanization processes. maintaining the organization’s Work-related illness Broomfield (123), Fort Wayne (234), Somersworth (181), Eugene (18) balance calculations. The report also includes environmental policy. ISO 14001 NO (nitrogen oxides) A work-related illness is an illness VOC emissions from paints and lacquers, X Guelph (143) is used as the environmental Gaseous oxides formed during caused by long-term exposure to a adhesives and glue. management standard within the Tijuana (386) combustion processes through the particular factor in the work environ- Trelleborg Group. ment. Such factors can include repetitive lifting or being exposed every day to solvent fumes.

30 3131 Further information about Trelleborg AB Printed publications can be ordered by telephoning +46 410-670 09, or via e-mail: [email protected].

Annual Report Internet Trelleborg’s Annual Report can be ordered Up-to-date information can be accessed by telephoning +46 410-670 09, or via on our website: www.trelleborg.com. e-mail: [email protected].

T-TIME Trelleborg’s stakeholder magazine, T-TIME, is published four times a year.

Group center Business areas

Trelleborg AB (publ) Trelleborg Automotive Trelleborg Engineered Systems Trelleborg Sealing Solutions Box 153 400 Aylworth Avenue SE-231 81 Trelleborg Handwerkstraße 5-7 SE-231 22 Trelleborg US-South Haven, MI 49090 Street address: Henry Dunkers gata 1 DE-70565 Stuttgart Street address: Tel: +1 616 637 2116 Tel: +46 410-510 00 Tel: +49 711 786 40 00 Henry Dunkers gata 2 Fax: +1 616 637 8315 Fax: +46 410-71 15 21 Fax: +49 711 783 31 71 Tel: +46 410-670 00 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Fax: +46 410-427 63 Internet: www.trelleborg.com Trelleborg Wheel Systems Trelleborg Building Systems E-mail: [email protected] Via Naz, Tiburtina, 143 SE-231 81 Trelleborg IT-00010 Villa Adriana (Rome) Street address: Henry Dunkers gata 1 Trelleborg Treasury Tel: +39 774 38 41 Tel: +46 410-510 00 Box 7365 Fax: +39 774 38 48 02 Fax: +46 410-189 81 SE-103 90 Stockholm E-mail: [email protected] E-mail: [email protected] Street address: Norrlandsgatan 20 Tel: +46 8-440 35 00 Fax: +46 8-440 35 48 E-mail: [email protected]

Trelleborg AB (publ), Box 153, SE-231 22 Trelleborg, Sweden Tel: +46 410-670 00 • Fax: +46 410-427 63

E-mail: [email protected] • Internet: www.trelleborg.com Trelleborg Corporate Communications. RHR Communication, Malmö.