SUPPORTING GLOBAL GOALS
SUSTAINABILITY REPORT 2015
SUSTAINABILITY REPORT 2015
CONTENT
06 Group Chief Executive Officer’s Message 08 Vision, Mission & Values
ORGANISATIONAL PROFILE 12 Ownership & Legal Form 12 Locations 13 Number of Employees 14 Primary Brands, Products & Services 15 Market Segments & Industries Served 16 Product Impact
SUPPORTING GLOBAL GOALS 18 Sustainability Vision 20 Sustainability Approach 22 Stakeholder Engagements 23 Materiality 24 Community Engagement 26 External Partnerships & Participations
SUSTAINABLE IMPACTS 28 A Better Source 36 Zero Harm, Zero Waste 37 Innovation For Sustainable Development 42 Green Packaging / Carbon Net Positive
SUSTAINABILITY DASHBOARD 44 Habitability 52 Prosperity 55 Profitability
56 GRI G4 INDEX TABLE
5 A Message From Our Group Chief Executive Officer
"I did then what I knew how to do. Now that I know better, I do better.” - Maya Angelou (1928-2014)
perating a business in a responsible O and sustainable manner has come at a more pivotal time than ever. With 2015 being the year that saw the global adoption of the Paris Agreement and the formal acceptance of 17 measurable Sustainable Development Goals (SDGs) - what was merely a growing consensus has become a unified pursuit for long-term solutions to some of the greatest challenges mankind faces. To be achieved by 2030, the measurable goals range from ending world poverty to achieving gender equality, increasing sustainable consumption and production, providing clean water and sanitation to addressing climate change actions among others. That said, the narrative today is about the best and quickest way to achieve these goals.
6 Emery Oleochemicals 2015 Sustainability Report Cincinnati, USA Loxstedt, Germany Telok Panglima Garang, Malaysia
At Emery Oleochemicals, even before the My role outside the company as the President formalisation of the 2030 Global Goals, we looked of Global Compact Malaysia provides me with to define the field by focusing on key operational a different lens with which to view the breadth issues and sought out opportunities that allow us of influence Corporate Sustainability can offer. to best deliver positive, social impact as part of Establishing more private-public partnerships conducting our business. Last year, we focused on while aligning business operations with universally implementing ‘traceability’ which is consistent with accepted principles in the areas of human rights, the SDG’s Goal 12: Responsible Consumption and labour, environment and anti-corruption is a Production. In the reporting period, 81% of the palm redefinition of the model of successful leadership. oil procured was found to be traceable, surpassing our intended goal. In addition, the partnerships we Maya Angelou said, "I did then what I knew how sought were increasingly based on goals for the to do. Now that I know better, I do better.” I am common good, while leveraging our knowledge. fortunate enough to be in the leadership position By becoming a local partner to the United Nations of an industry-leading company as well as a United through our support of Bluenumber, we saw the Nations sustainability initiative. It gives me a greater benefits of increasing the visibility of farmers and perspective on the long sustainability journey agribusinesses and their sustainable practices. we have to undertake; I "know better", now, so We now have an opportunity to participate in am trying to "do better” in my unique capacity. capacity-building with them while continuing to develop real-world solutions in crop care. While our 2015 Sustainability Report underscores much of the invaluable work we have done, it is Adopting the Global Goals in 2016 and being guided the journey of nurturing lifelong advocates of by purposes that go beyond manufacturing and sustainable living – in and out of our workplace – immediate shareholder value generation are both that motivates us to keep getting better. And I know strategic and visionary. For me, the Global Goals my leadership aspiration is the same as yours. represent a catalyst in shaping a future driven by innovation and new market opportunities. I continue Let’s continue to reach for those Global Goals! to believe that in order to be the market leaders of tomorrow, we have to think and behave differently. Ramesh Kana
7 Vision, Mission, Values
ne of Emery Oleochemicals’ early locations was by the Ohio River, which O aided the transportation of raw materials and products. In the mid- 1880s, the factory relocated to a site in St. Bernard where it remains today after more than a century. Since then, it has developed into a cutting-edge facility. It sits next to the Mill Creek and along a railway system that connects it to the rest of the world. This is an indication that Emery Oleochemicals is destined to reach further and wider than its hometown of Cincinnati.
Today, Emery Oleochemicals has more than 900 employees worldwide, all working to build a business that will have a long-term impact on the world. Our vision, mission and values were formed to meet the goal of achieving sustainability for more than our stakeholders’ interests, although they remain one of our highest priorities. We have our sights set on a wider horizon and we want to effect significant changes for the entire world. We aim to create value with our existence in more ways than just providing sustainable products to the marketplace.
It is in line with these global goals that we have pledged to support the Sustainable Development Goals (SDGs), newly introduced by the United Nations in September 2015. The SDGs call for “concerted efforts towards building an inclusive, sustainable and resilient future for people and planet” by the year 2030. When we widen our perspective and set higher goals, we find that there is so much more that we can contribute.
8 Emery Oleochemicals 2015 Sustainability Report After considering our capacity as a natural-based chemicals manufacturing company, we have presently pledged to contribute to achieving six SDGs:
Goal 8 : Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Goal 9 : Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
Goal 12 : Ensure sustainable consumption and production patterns.
Goal 13 : Take urgent action to combat climate change and its impacts.
Goal 15 : Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
Goal 17 : Strengthen the means of implementation and revitalise the global partnership for sustainable development.
9 To support this commitment, we will leverage our scientific and innovative advancements to create sustainable products and we will continue to evolve better practices that could be a benchmark for the industry and beyond. We also engage with other corporations to advocate responsible operation as a way of life for moving forward, with a shared sustainability agenda to propel us closer to these goals.
Moving forward, in 2016 we are shifting our sustainability focus to support the SDGs, through :
Increased efforts to fulfill regulatory compliance to obtain licenses to operate in more locations and sites;
Implementing initiatives that go beyond regulatory compliance to explore risks and opportunities in material sustainable development issues, such as responsible feedstock sourcing, water, energy and waste management, supply chain management and sustainability paradigm enhancement;
Improvements in mainstream initiatives, such as better and clearer reporting and fulfilling customer requests;
Leading change by creating or partnering in innovative sustainable product development and projects involving our suppliers and customers.
We are therefore dedicated to “Supporting Global Goals”. As always, we take advantage of opportunities throughout our entire supply chain - from feedstock procurement to product manufacturing, and thereafter - to offer both immediate benefits as well as far-reaching influence on long-term global sustainability.
10 Emery Oleochemicals 2015 Sustainability Report Organisational Profile
11 Ownership and Legal Form
Emery Oleochemicals is jointly owned by Sime Darby Plantation and PTT Global Chemicals, each with a 50 percent stake. We oversee our vast global presence through our regional offices in the USA and Germany, and from our headquarters in Malaysia.
This report is written ‘in accordance’ with the GRI G4 Reporting Principles (core option) guidelines and includes disclosure for our key manufacturing sites in Malaysia, the USA and Germany. Our Düsseldorf operation was divested in 2015 and data in this report have been adjusted to exclude any of its contribution.
Locations
ermany S
alaysia
Contact : 5 Emery Oleochemicals 2 Headquarters 20 Emery Oleochemicals Group 741 Level 5, Building E, Peremba Square Saujana Resort, Section U2 40150 Shah Alam, Selangor, Malaysia
1 1 1 1 1 Emery Oleochemicals (M) Sdn Bhd 164 Telok Panglima Garang Lot 4, Jalan Perak, Kawasan Perusahaan Telok Panglima2015 Garang 42500 Selangor, Malaysia 905 Emery Oleochemicals LLC 2015 4900243 Este Avenue,41 284 Cincinnati,Ohio,2015 93 39 132 USA, 452322015 405 84 489
201 2 2 2 201 22 5 2 201 0 501 Emery Oleochemicals GmbH 201 21 5 252 201 2 5 2 0 201 5 55 Paul Thomas Str. 56, 40599 Düsseldorf, Germany 2012 211 2 2012 2 2 0 2012 0 2
2011 2 2 2011 2 2011 10
12 Emery Oleochemicals 2015 Sustainability Report
21 211 21 2 209
21 22 21 22 23%
2011 2012 201 201 2015
77%
2 55 01 2 696
1 5 98.5%
2011 2012 201 201 2015
2 2 2 5 0 32.3%
2011 2012 201 201 2015 ermany S
ermany alaysia ermany S S alaysia alaysia ermany S
alaysia ermany S 5 20 2 alaysia 741
5 5 20 2 20 2 Total Workforce 1 1 741 1 741 1 1 164 5 2 20 741 2015 1 1 1 5 1 1 1 1 1 164 1 1 905 2 20 164 741 1 1 1 1 1 164 2015 2015 243 41 284 2015 93 39 132 2015 405 2015 84 489
2015 201 2 2 2905201 1 1 22 5 2 201 0 501 1 1 1 164 905 201 21 5 252 905201 2 5 2 0 201 5 55 2015 2015 243 41 284 2015 93 201239 132 211 2015 2 405 2012 842 489 2 0 2012 0 2 Workforce By Region2015 243 41 284 2015 93 39 132 2015 405 84 489 201 2 2015 2432 2 201 41 284 201522 2011 5 93 2 39 2 132 201 2 2015 0 2011405 2 90584501489 2011 10 Region North America201 2 Europe 2 2 201 Asia22 Pacific 5 2 201 0 501 201 21 201 5 2 252 201 2 2 201 2 5 22 2 0 5 2 201 201 5 0 55 501 201 21 5 252 201 2 5 2 0 201 5 55 201 21 52015252 243201 412 5284 2015 2 0 93 39201 132 5 2015 55405 84 489 2012 211 2 2012 2 2 0 2012 0 2 2012 211 201 2 2 2012 20122 2 2 201 2211 0 22 20125 2 2 0 2012201 2 0 2 2501 0 2012 0 2 2011 2 2 2011 2 2011 10 201 21 5 252 201 2 5 2 0 201 5 55 2011 2 2 2011 20112 2 2011 2 10 2011 2 2011 10 21 211 21 2 209 2012 211 2 2012 2 2 0 2012 0 2
2011 2 2 2011 21 2 22 21 22 2011 23% 10
2011 2012 201 201 2015
21 211Workforce21 21 211 2 21 By 209Other2 209 Demographics 77%
21 22 21 21 22 22 21 23%22 23% 21 211 21 2 209 21 211 21 2 2 209 55 01 2 696 Managerial Positions 21 22 21 22 23% 2011 2012 2011201 2012201 201 201521 201 22 2015 21 22 23% Number of 2011 201277% 201 201 20112015 2012 201 201 2015 employees in 77% 2 55 01 2 696 77% 2 55 01 2 696Non-Managerial Positions 77% 2 55 01 2 1 696 5 98.5% 2 55 01 2 696 2011 2012 201 201 2015 % of employees who are local citizens % of women employed in managerial positions
1 5 98.5% 1 5 1 98.5% 5 2 2 98.5% 2 5 0 32.3% 2011 2012 201 201 2015 2011 2012 201 201 2015 2011 2012 201 201 2015 2011 1 2012 201 5 201 2015 98.5%
2 2 2 5 0 32.3% 13 2 2 2 5 0 201132.3% 2012 201 201 2015 2 2 2 5 0 32.3% 2011 2012 201 201 2015 2011 2012 201 201 2015
2011 2012 201 201 2015 2 2 2 5 0 32.3%
2011 2012 201 201 2015 Emery Oleochemicals’ Primary Brands, Products & Services
mery Oleochemicals offers superior natural-based Our products are derived from renewable E solutions through six different business platforms: feedstock, mainly natural oils and fats Agro Green; Bio-Lubricants; Eco-Friendly Polyols; Green such as palm kernel oil, palm oil and Polymer Additives; Home & Personal Wellness and OleoBasics. More than 3,000 products make up the gamut tallow. Today, our growing portfolio of of commodity, semi-specialty and specialty chemicals sustainable solutions includes Roundtable in our product portfolio. With such a comprehensive on Sustainable Palm Oil certification for product range, we are able to cater to niche applications, Segregated (SG) and Mass Balance (MB) whether to improve process efficiencies or develop high- grades, which are increasingly sought performance end-products. after by food, home and personal care manufacturers. Our customisable and innovative solutions are in demand by numerous high growth sectors; among others, the Our steadfast progress in the global marketplace construction, automotive, lubricant, agriculture, food and is sustained by our access to renewable resources, beverage, packaging, pharmaceutical, home and personal network of expansive operations, industry expertise and care, textiles, electrical and electronics industries. commodity chemicals foundation. We remain committed Supported by our Technical Development Centres in to developing solutions that not only create sustainable the USA and Germany, and the Product and Application industrial and end-consumer products, but also have Development teams in Malaysia and Japan, we are able lasting and widespread influence on global sustainability. to engage with customers in exclusive or joint solution developments.
Business 6 Platforms >3000 products
commodity semi-specialty and specialty chemicals
14 Emery Oleochemicals 2015 Sustainability Report Market Segments & Industries Served CREATING VALUE with our natural-based solutions
Crop Livestock Organic Home & Turfs and Protection Farming Farming Garden Ornamentals
Automotive Greases Industrial Metal Oilfields Lubricants Workings
Automotive Building & Furniture & Packaging Construction Bedding
Automotive Building & Coatings & Electronics Packaging Toys & Sports Construction Inks Equipment
Body Care Cosmetics Detergents Hair Care Oral Care
Coatings & Food & Paper Pharmaceuticals Textiles & Adhesives Beverages Leathers
15 Product Impact
mery Oleochemicals ensures our manufacturing As a manufacturer that is concerned with the wider impact E practices are in compliance with international laws of our products, even after they leave our manufacturing and regulations. Our products are REACH-compliant where facilities, we utilise a sales system to avoid selling to applicable and come with safety data sheets that detail customers with questionable practices. Our screening mandatory chemical management specifications. We also criteria is based on data provided by sanctioned government offer products that are Halal and kosher certified, as well as institutions. pharmaceutical and RSPO grades. In 2015, we achieved full compliance with regulatory standards and no case of non- compliance was reported during this period.
Although we are Business to Business (B2B), our solutions appear in many everyday products available to end users. Being natural-based provides several competitive advantages for our product range and they primarily are:
Greener and safer products for both the environment and users, due to Some of our natural-based solutions are are ingredients recyclable, thus extending usability life and reducing carbon footprint
Viable alternatives to non-natural-based derivatives with equal or better performance capabilities
16 Emery Oleochemicals 2015 Sustainability Report Supporting Global Goals
17 Sustainability Vision
mery Oleochemicals’ vision is to become the industry leader in natural-based chemicals. We envision E this occurring in a world in which sustainability is a given and we have played a vital role in making it so. Our solutions are the outcome of avid research and development. We continue to advance the science of chemicals, but also make breakthroughs in how our products impact the environment, society and the economy. Our solutions are innovative and sustainable, and also affordable to allow for mass implementation. We believe that this will allow us to maintain business viability while still preserving the world for generations to come.
This is our sustainability vision: to grow and create value by acting sustainably to achieve planet habitability, people prosperity and financial profitability. It is an equilibrium that is not always easy - but not impossible - to achieve. It is also a vision that has global impacts. We recognise that our actions and decisions could have far-reaching consequences and we take accountability for them.
Our products and practices take into account their long-term effect on the environment and society.
18 Emery Oleochemicals 2015 Sustainability Report This is our sustainability vision: To grow and create value by acting sustainably to achieve planet habitability, people prosperity and financial profitability.
Our global sustainability vision continues to be supported by four pillars:
OUR SUSTAINABILITY PILLARS
Embedding Sustainable Being a Preferred Partner Supply Chains to create, nurture and maintain strategic to transition sustainable practices into an 1 partnerships with key stakeholders to 3 ecient and responsible supply chain meet and advance sustainability agendas. management system.
Future-Proofing Our Environment Ensuring Sustainable Product Stewardship to respect and protect the environment and biodiversity around us and strive to to o er products that protect 2 continuously reduce our ecological 4 environmental and societal interest footprint. while contributing to profitability.
We have undertaken the responsibility to ensure Leading this charge is our Sustainability Steering sustainable sourcing, manufacturing and distribution, Committee, directed by our Group Chief Executive which could one day serve as an example for the Officer who also is the company's Chief Sustainability industry at large. Our products and practices take into Officer. We constantly realign our leadership strategy, account their long-term effect on the environment daily operations, policies and procedures to achieve and society. A product has to be socially responsible our sustainability vision. We also embed this into our and ethically sound throughout its entire lifecycle. corporate culture so that our employees embrace the same ideals.
19 Sustainability Approach
fter Emery Oleochemicals decided to undertake global goals, we re-examined our approach to sustainability and A realigned it with our new, higher ambitions. Our sustainability approach is divided into three aspects, each with its accompanying action.
PEOPLE PROCESS IMPACT THINK ACT INSPIRE SUSTAINABLY INNOVATIVELY CHANGE
We adopt a mindset that We follow up on our We inspire other thinks sustainably when ideas and decisions with corporations to adopt making daily, operational innovative actions. responsible practices by and strategic decisions. Throughout the value leading by example. For We will always lead with chain, we have executed instance, we are the intention of adding numerous creative outspoken advocates of value to the improvements and RSPO-certified environment, society introduced various derivatives. We are also and business. innovations in line with embarking on initiatives our sustainability goals, to promote haze-free such as sustainable products to address the sourcing, waste recurring transboundary reduction, green product haze pollution in South breakthroughs, carbon East Asia. osetting initiatives, etc.
Sustainability Commitments
eing present in three different regions – Asia, Therefore, it is important that our corporate B USA and Europe – grants us the unique culture is compatible with our company’s opportunity to influence the widespread course sustainability commitments. In 2014, Emery of sustainability. Our workforce comprises more Oleochemicals incorporated sustainability than 900 personnel spread across more than 50 targets to ensure that we do not waver from our countries. This wide network allows us to aspire sustainability goals. towards greater sustainability goals.
20 Emery Oleochemicals 2015 Sustainability Report Our Sustainability Goals
Reduce sustainability risks 1 Produce innovative and affordable 2 undertaken by our partners and us. sustainable derivatives and ingredients. From feedstock to product, sustainability occurs throughout the entire supply chain Our products and solutions are designed and beyond. to support our clients’ sustainability goals. When sustainability challenges arise, we work together with customers to overcome them.
4 Hone a “responsible business” 3 Create a culture of responsible model. and sustainable practices for our internal and external stakeholders A responsible business defines sustainability to meet our short-term and mid- in a broader sense - people, planet and profit. term targets. We continue to hone our business model to cater to the evolving sustainability needs in We work to build a culture of integrity, these three aspects. mutual respect and social responsibility among our employees, customers, suppliers, investors, policymakers, NGOs, and business partners.
Emery Oleochemicals’ earliest history was a Telok Panglima Garang sites respectively to business based on a local renewable feedstock – diversify our energy sources and incorporate making candles from tallow, a by-product of the more renewable energy into our total food animal processing industry in Cincinnati. consumption. Over the years, expediency had transformed into a fundamental value that drives our business As a business with worldwide presence, we strategy. From feedstock to post-sales, we make realise the effect we could have on the state of everyday strategic and operational decisions the earth and its population in the future. We conscious of their sustainability impacts. have therefore voluntarily committed to the responsibility of ensuring the long-term well- For instance, we invested in geothermal heating being of our employees, the communities across and an on-site biogas plant in our Loxstedt and the world and the global environment.
Sustainability Commitments Progress Dashboard
2015 Status 2017 Status
50% key suppliers self-audited against 100% key suppliers self-audited against In SUPPLY CHAINS Achieved Sourcing with Respect Guidelines. Sourcing with Respect Guidelines. Progress
Increase the uptake of sustainable palm Produce 5 innovative solutions that improve SUSTAINABLE In products by offering commercially viable Achieved environmental and social impact while Progress PRODUCTS RSPO MB & SG Grade solutions. increasing profitability.
Establish 3 key initiatives that embed a Establish 3 programmes that further culture of sustainability and responsible strengthens Emery Oleochemicals’ In PARTNERSHIPS Achieved business within internal and external responsible business mindset and practices Progress stakeholders and create win-win with a focus on internal stakeholders. partnerships.
21 With shared global sustainability goals, there are mutually beneficial outcomes for all stakeholders who are involved with our business.
Stakeholder Engagements
he support of our stakeholders is vital to achieve our Our reporting process is also subject to regular T global sustainability ambitions. Therefore, Emery assessment and improvement to achieve clarity and Oleochemicals engages in active dialogue and practices transparency. transparency with all our stakeholders to earn their trust. Each stakeholder is unique, with varying expectations and This engagement provides Emery Oleochemicals with needs that constantly change. It is our responsibility to direct insights into any stakeholder issues or concerns. keep abreast of this evolution so that our decisions meet An open exchange of knowledge also helps us enhance current requirements. We adjust our business to achieve our business. When we are challenged to implement new an optimum situation to best cater to all parties involved. ideas and overcome any issues, we are able to accomplish With shared global sustainability goals, there are mutually continual improvements for the benefit of our business beneficial outcomes for all stakeholders who are involved and our stakeholders. with our business.
Frequent and diverse efforts provide us with the Sta ehol ers pproach ey Sustainability oncerns opportunity to properly gauge the effect of our actions • Product & Service Quality and decisions. Examples of our engagement methods Customers • Environmental, Social & Community Impacts include dynamic dialogues, town hall sessions, site tours • Meetings • Sustainability Certifications and suggestion schemes. One-on-one discussions are • Townhalls Shareholders • Ethics & Corporate Values also organised with certain stakeholders to seek more • Corporate Governance specific feedback. The subject of sustainability and • Site Tours responsible supply chain practices are key topics in these • Audits • Health & Safety engagement activities. Employees • Talent Management • Dialogues • Labour Rights
• Feedback forms Emery Oleochemicals also takes advantage of various Policymakers • Creating Economic & Social Opportunities • Suggestion schemes expertise and unique perspectives provided by our Business Partners • Supply Chain Management stakeholders. Subject matter experts of varied credentials – including academicians, NGO members, investors and Communities • Environmental & Social Impacts industry counterparts – are consulted to enhance our NGOs • Accountability & Transparency sustainability efforts. Examples of how we engage with stakeholders
22 Emery Oleochemicals 2015 Sustainability Report To ensure that our efforts are comprehensive and no Materiality essential aspects are inadvertently omitted, we have identified the following list of areas that require our attention:
s the needs of the global environment evolve, so A should sustainability efforts. Therefore, Emery Oleochemicals engages in continuous improvements Aspect Boundary External entities affected
in our business practices and customer solutions. Within Outside Organisation Organisation This ensures that our business and solutions provide effective benefits to shareholders, employees, Economic er ormance customers, community and the planet. ar et resence n irect Economic mpacts ocal communities at all our sites rocurement ractices As sustainability is the underlying value that governs aterials the rest of our corporate values, it is present Ener y throughout our entire value chain: each part works ater individually and together to produce positive social and io i ersity ocal communities at all our sites environmental outcomes. Emissions ocal communities at all our sites E luents aste ocal communities at all our sites Our approaches and practices evolve to suit ro ucts Ser ices current sustainability priorities, and yet we remain a ransport ocal communities at all our sites highly viable business. We are keenly aware of our Employment responsibility to continuously communicate material abour ana ement Relations information to stakeholders without reservation, Occupational ealth Sa ety so that they can form accurate conclusions about rainin E ucation our business. Sustainable business practices i ersity E ual Opportunity require accountability and transparency, and Emery abour ractices rie ance echanisms Oleochemicals has established specific mechanisms on iscrimination for that purpose. ssessment
Materiality Matrix
The Materiality Matrix is one of the mechanisms we use to determine sustainability issues that are of importance to our different stakeholders.
These questions guide us in our analysis: • What sustainability issues impact our business? • What is the extent of this impact to our business? • How do our stakeholders view these issues?
Feedback is solicited from key senior management personnel from around the world, who serve in cross-functional roles and are the most capable in representing our various stakeholders’ perspectives. mportance to Sta ehol ers mportance to The matrix has helped us define the following priorities according
to our company stakeholders and business needs: Product Safety;
mportance to Emery Oleochemicals business Supply Chain Governance; Community Health & Safety; Corporate Governance; Occupational Health & Safety, and Responsible Governance Ethics Product Stewardship 1> Corporate Governance 9> Product Safety Selling. When benchmarking our materiality matrix with other 2> Company Values 10> Responsible Selling industry counterparts, it was found that these priorities are Community Engagement 3> Community Health and Safety Supply Chain similar, hence consistent with the industry. 4> Community Development 11> Responsible Sourcing 12> Supply Chain Governance People 5> Talent Management and Development Environment The Materiality Matrix further confirms the relevance of our 6> Recruitment and Retention 13> Climate Change and Energy 7> Compensation and Benefits 14> Water and Biodiversity Sustainability Pillars and guides us to concentrate efforts and 15> Waste OHS resources in areas of greatest concern. 8> Occupational Health and Safety
* Customers, Shareholders, Policymakers, Employees, Business Partners and Community 23 Community Engagement
hile we work to preserve environmental quality, and maintain economic prosperity and business viability, we also contribute to W community well-being; such is sustainability in its broader sense. Emery Oleochemicals engages with the community at large in sustainability efforts so that together we will be able to progress toward a sustainable society with a high quality of life.
Our community programmes include:
Community Dialogue
We organise and facilitate dialogues between the community and authorities. In Cincinnati, a Community Advisory Panel meets about six times a year, during which representatives from the company, subject matter experts and the surrounding communities discuss issues concerning the residents in the area.
Similarly, the Teluk Panglima Garang site hosts quarterly dialogues between local village heads and ministry representatives, the municipal council and utility providers.
24 Emery Oleochemicals 2015 Sustainability Report “Sungai Manggis” “Emery Class” River Conservation School Programme
Over the last four years, we have provided tuition, revision and teaching materials to a secondary (high) school located near the Telok Panglima Garang factory, and we also fund motivational camps for the students. Our team members volunteer their time to mentor the children and guide them in their personal development.
We adopted the river that runs next to the Telok Panglima Garang site and have taken it upon ourselves to clean, maintain and monitor the portion of the river from our site to the water gate, to ensure that all discharged water is in compliance with environmental standards.
Orphanage & Volunteer Programmes
Causes for children are one of Emery Oleochemicals’ greatest passions. Our team at Cincinnati has been active contributors to the St. Joseph Orphanage for many years, and we look forward to the annual Christmas Toy Drive to help fulfill the wish list of every St. Joseph child.
Our team members also volunteer time at the Cincinnati Ronald McDonald House, which provides accommodation and food to help families who have a child receiving treatment at the nearby Cincinnati Children’s Hospital.
On 15 August 2015, our Malaysian team organised a sports carnival at Morib Beach, Banting, attended by nearly 160 children from three different orphanages. The event was intended to encourage sportsmanship and explore the potential of the enthusiastic participants.
25 External Partnerships &
Participations eing an active member in several relevant B sustainability organisations and programmes is a way of contributing our support to global goals. It facilitates the exchange of experience and expertise with others who share a similar agenda. This leveraging of one another’s strength has and will continue to help us in our progress for more sustainable corporate practices.
In January 2016, Emery Oleochemicals’ Group Chief Executive Officer (GCEO), Ramesh Kana, was elected the President of the Global Compact Local Network Malaysia (GCLN-MY), the local chapter of United Nations Global Compact (UNGC). UNGC is an international platform conceived by the United Nations to promote sustainable corporate policies and practices. With 12,000 signatories from 170 countries, the UNGC is the world’s largest corporate sustainability initiative. The Malaysian chapter was launched in 2008 and has been fast gaining support and participants from the local business community.
With our GCEO leading this initiative, Emery Oleochemicals will be further entrenched in regional and international initiatives to promote corporate sustainability. This has reinforced our commitment and multiplied our efforts to achieve global sustainability goals.
26 Emery Oleochemicals 2015 Sustainability Report Sustainable Impacts
27 he value chain of a chemical business T is complex and has many potential sustainability risks. However, for a responsible business, it also presents numerous opportunities that could be used to push sustainability efforts on a global level. It is therefore vital to Emery Oleochemicals to identify even the smallest of sustainability risks and drive behaviourial change throughout the entire value chain, whether internally or with external parties.
We have dissected our value chain to gain a comprehensive understanding of each component and have embarked on initiatives at each stage to effect positive sustainability impacts.
1. A BETTER SOURCE
The “Sourcing with Respect” Guidelines (SRG) is a tool we use to determine our suppliers’ social and environmental practices, relative to core principles upheld by Emery Initiatives to improve Oleochemicals. All suppliers are required to undergo an online incorporation of social and self-assessment that encompasses areas of human rights, labour, environment and corruption. Feedstock suppliers, whose environmental footprints contracts are worth USD5 million or more, and other suppliers, whose contracts exceed USD500,000, must provide documented caused by upstream proof of their claims. feedstock, products and
Since its implementation in 2014, the SRG has proven to be a services, into our supply valuable tool to determine the sustainability standards upheld by chain. all our suppliers. This has allowed us to gauge the sustainability levels of the entire value chain, starting from raw material sources. By understanding the environmental footprints of our upstream suppliers, we are better able to engage in responsible sourcing and comprehend the total environmental impact of our business.
The intent of the SRG is not to discharge non-compliant suppliers immediately. Instead, to encourage widespread sustainable practices, we work with suppliers who fall short to work towards compliance in a time-bound plan. However, we maintain a zero- tolerance policy in corruption and labour issues.
The SRG will be reviewed every three years to ensure that its criteria are up-to-date with the needs of the environment and community.
28 Emery Oleochemicals 2015 Sustainability Report The intent of the SRG is to encourage widespread Respect or our planet an the natural sustainable practices. 1 en ironment hich 2 supports present an Respect or uture enerations human i nity an ecent Our or in SRG con itions Values
utual respect ith suppliers hich e 3 nurture to ether
SRG
29 "Sourcing with Respect" 125 suppliers were requested Response to complete the SRG self- assessment via an online Dashboards sustainability platform.
HUMAN RIGHTS
HUMAN1% 5% RIGHTS
Overall completion status 1% 5%
3% 25% 63% 40%
40% Global 54% 54% 9%
4% 3% 4% 41% 38% LABOUR 96% Asia Pacific LABOUR 96%
18% 1% 5% 4% 1% 5% 4% 26% 68% 96% 94%
Europe 96% 94% 6%
8% 2% 2% 1% 4% 11% 76% 2% 2% 1% 4% North 36% 5% America 69% 36% 27% 69% 59% 27% 59% 30 Emery Oleochemicals 2015 Sustainability Report CORRUPTION
No No No Response No Response No No Response 7% 5% 2% 2% 13% 2%
Yes Yes Yes 45% 45% 35%
In compliance In compliance In compliance with local & with local & with local & national laws national laws national laws 46% 48% 50%
Does your organisation have a Does your organisation have an Does your organisation have a policy of anti-competitive practices? anti-corruption and bribery policy? whistle blowing policy?
ISO 14001 RSPO RSPO 24% 18% 43% ENVIRONMENT Completed Global Asia Pacific
Yes No Response No Response No 3% 2% 5% 6% RSPO RSPO
N/A 14% 19% 3%
Yes Europe North America 47% In compliance No with local & SUPPLIER CERTIFICATIONS 78% national laws 45%
Has your organisation adopted an Has your organisation received environmental policy? any significant environmental fines in the reporting period?
2 4 ISO 14001 RSPO RSPO
24% 18% 43% 7
Completed Global Asia Pacific 35 14 RSPO RSPO 19% 3%
Europe North America 10 RESPONDENTS BY CATEGORY SUPPLIER CERTIFICATIONS
31
2 4
7
35 14
10 RESPONDENTS BY CATEGORY Tallow By converting waste mery Oleochemicals has been We only obtain feedstock from tallow into useful products, E using tallow as feedstock since suppliers who are in compliance we fully utilise the the first candle we ever produced. with the industry’s strict hygiene and Upcycling of this waste product from environmental standards regulated source product and the food animal processing industry by national and trade associations. reduce waste. occurs mainly in our North American Furthermore, suppliers who are in and European manufacturing sites. By compliance with the AFOA Trade Rules converting waste into useful products, (USA) or GROFOR or NOFOTA Trade we fully utilise the source product and Rules (European Union) are given reduce waste. preference.
Certified Derivatives Manufacturers
Certified Certified Certified Consumer Goods Plantations Mills Refineries Producers
Palm Oil and Palm Kernel Oil When Emery Oleochemicals alm oil and palm kernal oil are this feedstock is produced with due procures palm oil, key P ubiquitous ingredients in everyday consideration for the environment. items, from food to personal care The Roundtable on Sustainable Palm considerations include products. They make up a large portion Oil (RSPO) is the most widely used RSPO certification or of our feedstock. The oil palm has an certification standard for palm oil. Its incredibly high yield, multiple times that criteria supports these eight principles: oils with supply chain of other vegetable oil sources. It requires transparency, compliance with laws, long- traceability. the use of significantly less land to term financial viability, implementation produce the same amount of oil. of best practices, environmental responsibility, responsible employment, Increasing concern for the environment, responsible new planting, and continuous however, has rightfully led to certification improvement. schemes for palm oil, ensuring that
32 Emery Oleochemicals 2015 Sustainability Report RSPO Besides being a beneficiary of the Roundtable on Sustainable Palm Oil scheme, we represent the ASEAN Oleomanufacturing Group in Task Force the RSPO Supply Chain Certified Review Task Force. Through our participation, we contribute industry insights and actively strive Member towards worldwide implementation of sustainable oleochemicals.
Action-oriented RSPO advocate
We undertake an active role to promote awareness among industry players regarding the importance and commercial viability of RSPO-certified products. On 16 November 2015, we hosted a site tour of our Telok Panglima Garang facility for 30 international delegates who participated in the RSPO Roundtable 13 Conference in Kuala Lumpur. It was an opportunity for us to share our insights into industry trends and how they are influencing our sustainability agenda.
The tour included a visit to our fatty alcohol manufacturing facility, where efforts are underway to commercialise RSPO SG-grade products. Following that, a demonstration of our SG-grade products under the EMERCOL® brand led to the opportunity for discussion and exchanging of ideas among the attendees, further strengthening industry-wide partnerships to promote sustainable palm oil.
Commercial producer of RSPO SG-grade Fatty Alcohols
Emery Oleochemicals took the pioneering initiative to produce commercial quantities of SG-grade fatty alcohols. Our success has contributed to the increasing availability of SG-grade products in the market, and in turn encourages sourcing of sustainable materials from the industry.
33 Traceability
Traceability is defined by the Codex Alimentarius In 2015, we set out to improve the traceability Commission as “the ability to follow the of our palm oil feedstock by engaging actively movement of a food through specified stage(s) with our suppliers. The total amount of palm of production, processing and distribution”. oil procured from our various suppliers last year Being able to track and trace this movement is was 139,888.71MT, 81% of which was traceable, important, not only for regulatory compliance, far surpassing our target of 50%. This amount of but to also manage sustainability risks traceable oil is contributed by the top 8 refineries throughout the entire value chain, increase and 71 mills in our supply chain. quality control and address inefficiencies quickly and accurately.
34 Emery Oleochemicals 2015 Sustainability Report In 2015, we set out to improve the traceability of our palm oil feedstock by engaging actively with our suppliers.
Location of upstream traceable refineries and mills (Malaysia)
PERLIS 8 REFINERIES
KEDAH 71 MILLS
1% 3% PENANG 3% KELANTAN PERAK TERENGGANU
23% PAHANG 27% 21% SELANGOR
11% NEGERI SEMBILAN
MELAKA JOHOR 10% 1%
Refineries
Mills
The total amount of palm oil procured from our various suppliers last year was 139,888.71MT, 81% of which was traceable, far surpassing our target of 50%.
35 2. ZERO HARM; ZERO WASTE
Initiatives to reduce safety risks, resource wastage and waste All of our manufacturing sites operate at the same generation, and increase second high standards and efficiency. The lean manufacturing life application of byproducts. approach adopted throughout the entire production process helps us to reduce resource consumption and waste production. We practice strict monitoring and Safety, Health and Environment (SHE) systems are control over our energy usage, water utilisation and put in place to safeguard the well-being of our disposal, and all types of emissions from our sites. employees in all our manufacturing facilities, as This results in effective minimisation of environmental well as the communities in which they are located impacts that could otherwise be the result of our and the surrounding environment. The health and manufacturing activities. safety environment of the company’s premises and the surrounding areas takes topmost precedence. By We actively develop and invest in methods to reduce conducting frequent evaluations based on internal and resource consumption and upcycle waste products external standards, we continually seek opportunities for during the production stage. For instance, our Loxstedt ongoing improvement. site received an ISO 50001 certificate for an energy management system and our Telok Panglima Garang Our employees are vital contributors to the facility includes a biogas plant that converts wastewater enhancement of our production process. They are into an energy source. Future engagement of external empowered to identify any sustainability risks or areas energy providers will take into consideration their for improvement. sustainability values and whether their business strategies include carbon reduction and renewable energy development.
Biogas Plant The biogas plant at our TPG plant has at Telok been operational since Panglima 2011. Garang
It uses a high-rate anaerobic The plant demonstrates In 2015, the TPG digester technology to high performance but a low site used above treat wastewater and waste carbon footprint, and is the biomass. In the process, it first of its kind to be used 7 million kWh generates biogas, adding yet in South East Asia by an of renewable energy another renewable energy oleochemical company. produced by the biogas source to our portfolio. plant.
36 Emery Oleochemicals 2015 Sustainability Report 3. INNOVATION FOR SUSTAINABLE DEVELOPMENT
Initiatives to drive innovation that lead to the development of products which can impact global sustainable development issues; subsequently, to promote sustainability opportunities afforded by these products.
Emery Oleochemicals is at the forefront of green chemistry innovations. We use renewable natural-based feedstock to develop high-performance products with superior eco-profile.
Sustainability needs and customer requirements keep changing, and our solutions are evolving along with them. Research and development is therefore a key component in our business, into which we channel significant resources. In an effort to create distinct and customisable solutions for customers, our regional Technical Development Centres are tasked with making technological breakthroughs. The outcome is continual innovative and superior solutions, many of which surpass the sustainability criteria of the present.
We have expanded our Asia Pacific and European portfolio to include variants for all products that are RSPO-certified for Mass Balance (MB); our EMERCOL™ series are available in Segregation (SG) grade, and there are near-future plans to extend the SG grade to other brands.
Through exclusive or joint collaborations with customers from numerous high-growth industries, we have created products that meet strict customer pre-requisites and comply with increasingly stringent environmental regulations around the world. In the following pages are a few examples of our recent innovations.
37 Lubricants
Designing natural-based solutions in polymers
Over the last few years, Emery Oleochemicals has developed new internal and external lubricant systems for PVC and other resins. The new internal lubricants LOXIOL® G 59 and LOXIOL® G 62 can be used in combination with the new external lubricants, such as LOXIOL® 2899, LOXIOL® G 25 or LOXIOL® G 24. These products are based on renewable feedstock, and show low volatility and maximum performance in the manufacturing of window profiles, pipes, technical and general purpose profiles, foamed sheets and fittings. These specially developed external lubricants are a new alternative to the traditional paraffin and Fischer-Tropsch waxes. Their advantages include the backing of a reliable and secure supply chain, and a high content of renewable raw materials (LOXIOL® 2899, 85% renewable; LOXIOL® G 25, 86% renewable; LOXIOL® G 24, 100% renewable).
These products are based on renewable feedstock, and show low volatility and maximum performance in the manufacturing of window profiles, pipes, technical and general purpose profiles, foamed sheets and fittings.
38 Emery Oleochemicals 2015 Sustainability Report Lubricants Lubricants
Growing the regulatory compliance of our ester portfolio
Emery Oleochemicals' Bio-Lubricants platform is growing the regulatory compliance on its ester portfolio. A broad number of products have been listed on the Lubricant Substance Classification (LuSC) list of the European Eco Label (EEL) with a focus on usage in environmentally acceptable lubricants.
The EEL is currently the most demanding eco label for lubricants on a global comparison. The guidelines require data about biodegradability, bioaccumulation, toxicity, technical performance and renewability to be eligible to carry the logo of the EEL, the marguerite. The EEL is granted only for finished lubricants.
In order to suport formulators and marketers, the EEL LuSC-list indicates all approved base stocks, additives and components to formulate an EEL compliant product. The components on this list have to fulfill the same stringent criteria mentioned above.
Our Bio-Lubricants platform has so far successfully registered 10 products for inclusion on the LuSC-list which is verified by a letter from the competent body in the Netherlands, the IVAM institute located in Amsterdam.
The EEL will undergo a revision in 2016/2017 and Emery Oleochemicals has been requested to participate in this project.
Esters are the only base stocks to fulfill the request for renewable content and exhibit other technical benefits for the development of finished fluids :
• Most esters are readily bio-degradable as measured by OECD 301 tests.
• Esters offer highest compatibility with other base stocks.
• Esters can be designed towards certain properties : • VG ISO 10 – 1000 base fluids available. • Optimum low temperature flow properties. • Good to excellent oxidation stability. • Superior lubrication properties.
• High technical performance in combination with additive packs from major additive suppliers.
39 Control of Pests of Honey Bee Hives using Fatty Acids
Honey bees are semi-domesticated insects within the Apis As part of our efforts to develop real-world solutions, Emery genus. In North America and Europe, the primary managed Oleochemicals is evaluating the use of several fatty acid species is the European or Italian honey bee, A. mellifera, known blends to control varroa mites. This widespread hive pest for their gentleness and high honey production. Although the transmits diseases, reduces the productivity of adult bees, and global value of the honey produced was USD7 billion in 2013, injures both larval and adult bees. The varroa mite reproduces their value as pollinators is estimated at USD165 billion, as exclusively in brood cells, feeding on the larval bee as it approximately one-third of all the plants eaten by humans develops over 21 to 24 days. depend on bee pollination. Based on preliminary research that showed varroa mites were Since 2006, honey bees have received considerable attention more sensitive to fatty acids than honey bees, the Agro Green when colonies were noticed to lack adult bees. This syndrome team conducted more detailed studies to further clarify these became known as Colony Collapse Disorder (CCD) and data. Additional lab testing with the fatty acid blends showed sparked a public interest in the health of honey bees. Reports that the varroa mites could be killed at concentrations that of CCD colony losses have waned since 2010, but many were safe to the honey bees. This was particularly true for beekeepers continue to report annual losses greater than 15% pelargonic (nonanoic) acid, and future testing will focus on this of the colony, which is considered a recoverable loss. fatty acid.
One suspect for honey bee losses is pesticides, including An effective active ingredient is only part of the story, neonicotinoids, or neonics. However, this does not consider however. They must be in a form and at a concentration that is other stresses such as pests and diseases, poor nutrition, acceptable for the conditions in a honey bee hive. Currently, and hive management. In particular, the varroa mite (Varroa the Agro Green team is working on both semi-solid and destructor) is implicated as a major contributor to honey bee liquid applications. Both use food-grade materials and it is deaths. anticipated that the product will be acceptable during honey production. Testing is on-going. 40 Emery Oleochemicals 2015 Sustainability Report Bio-Pesticides
As part of our efforts to develop real-world solutions, Emery Oleochemicals is evaluating the use of several fatty acid blends to control varroa mites. This widespread hive pest transmits diseases, reduces the productivity of adult bees, and injures both larval and adult bees. The varroa mite reproduces exclusively in brood cells, feeding on the larval bee as it develops over 21 to 24 days.
Figure 1: The honey bee on the left has a Figure 2: A larval bee has been removed from its varroa mite (red circle) attached to its body brood cell after it died as a result of the varroa just behind its head. This bee is also suffering mites (red circles). from Deformed Wing Virus, which is one of the diseases transmitted by varroa mites. The honey bee on the right is healthy.
41 4. GREEN PACKAGING
Initiatives to use eco-friendly bags for product packaging and enabling right-sizing of our product packages based on customer requirements.
We will continue to explore new environmentally friendly recycled materials to be used as our product packaging. Moving forward, we will work with customers to right-size packaging based on their needs. This will subsequently minimise the usage of packaging material, and condense the volume and weight of packages. As a result, energy consumption and greenhouse gas emissions from product transport will be reduced. Packaging material recycling will also be increased.
5. CARBON NET POSITIVE
Initiatives to mitigate our contribution to climate change risks by consciously offsetting our internal and external logistic-related carbon footprint.
We pledge to conscientiously track the carbon footprint of our entire operations, and where possible, to reduce it with better industry practices, new technology adoption and innovative solutions.
One of the many logistics-related solutions that we have adopted is to give preference to transportation companies that include carbon reduction in their sustainability plans, which also encourages our suppliers to adopt better sustainability practices.
In other aspects, we will further alleviate the impact of our logistic-related activities by seeking opportunities for biodiversity development and promoting sharing economy among our stakeholders.
42 Emery Oleochemicals 2015 Sustainability Report Sustainability Dashboard
43 Habitability
Overview The oleochemical industry is highly regulated with excellent industry ustainability requires managing our resources to S meet present needs without compromising that of standards in place. This has bolstered the future. As our presence expands further in the world, our progress in sustainability. Beyond we are ever more keenly aware that how we manage the fundamental practices, we also our operations will affect future generations and the environment. take additional steps to realise our sustainability aspiration. We have pledged to support global goals, which will lead to the preservation of planet habitability indefinitely. Comprehensive environmental impact assessments are conducted at every location in which we establish a presence. Exploration works, mine modelling and local stakeholders engagement contribute to sustainable utilisation of the land. The resources we consume are closely monitored to prevent overuse. We also diversify and rely on renewable resources whenever possible; for instance, geothermal energy and biogas are part of our company’s energy portfolio.
Our manufacturing sites adopt a Our manufacturing sites are risk management model to reduce ISO 14001 certified, and are the risk of adverse environmental monitored to prevent deviation and social impacts. from the set criteria.
Our North America site includes a Only treated wastewater is certified wildlife habitat zone for discharged. Monarch butterflies.
44 Emery Oleochemicals 2015 Sustainability Report Environmental Materials Used By Weight or Volume
Rene ableRene able aterials aterials ats ats Oils Oils (’000 (’000 mT) mT) on rene able on rene able materials materials hemicals hemicals rocessin rocessin i s i s (’000 (’000 mT) mT)
309309 228228 20152015 20152015
445445 100100 20142014 20142014
458458 9090 20132013 20132013 Rene able aterials ats Oils (’000 mT) on rene able materials hemicals rocessin i s (’000 mT) 522522 3434 20122012 20122012 309 228 529529 3838 20112011 2015 20112011 2015
445 100 2014 2014
458 90 2013 2013 otal otal uel uel consumption consumption rom rom non rene able non rene able sources sources Rene ableRene able sources sources ener y ener y consumption consumption ithin ithin or anisation or anisation 522 34 2012 2012 000 000 m m ElectricityElectricity 000 000 h h otal otal uel uel consumption consumption rom rom rene able rene able sources sources 000 000 m m Rene ableRene able ener y ener y io as io as iomass iomass 529 38 2011 2011 1 0 1 0 1 1511 151 0 0 1 101 10 1 0 1 0 1,0561,056 Energy Consumption128,318128,318 within the Organisation20 5 20 5 11 011 0 203,547203,547 25,72225,722 1 5 1 1 5 1 1 2 51 2 51 1 1 1 2 2 0 0 otal uel consumption rom non rene able sources Rene able sources ener y consumption ithin or anisation 1 1 000 m Electricity 000 h otal uel consumption rom rene able sources 000 m Rene able ener y io as iomass 20132013 20142014 20152015 20112011 20122012 20132013 20142014 20152015 20112011 20122012 20132013 20142014 20152015 1 0 20112011 20122012 20132013 1 15120142014 20152015 0 NotNot monitored monitored in 2011 in 2011 & 2012 & 2012 1 10 1 0 1,056 128,318 20 5 11 0 203,547 25,722 1 5 1 1 2 5 1 1 2 i ht i ht uel uel oil oil or or erosene erosene iesel iesel or or asoil asoil 000 000 liters liters 0 otal otal ener y ener y consumption consumption 000 000 20152015 3,909,5133,909,513 5 5 1 20152015 1,079,1481,079,148 20142014 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 267267 2011 2012 2013 2014 2015 Not monitored in 2011 & 2012 20142014 20132013 i ht2 2 2 2 uel oil1 51 or 5 erosene iesel or asoil 000 liters 20112011 20122012 20132013 20142014 20152015 20132013 otal ener y consumption 000 NotNot monitored2015 monitored in 2011 in 2011 & 2012 & 2012 3,909,513 5 otal otal uel uel consumption consumption rom rom 20122012 non rene ablenon rene able sources sources in in 2015 1,079,148 oules oules2014 or ormultiples multiples 267 20112011 2014 2013 2 2 1 5 2011 2012 2013 2014 2015 2013 Not monitored in 2011 & 2012
otal uel consumption rom 2012 non rene able sources in oules or multiples 2011
45 1%1% 19%19%
ReportReport stan ar s stan ar s metho olo ies metho olo ies an an assumptionsassumptions use use 1% 20122012 ui elines ui elines to e ra to e ra E s E s on ersion on ersion actors actors or ompany or ompany Reportin Reportin 19% etho olo y etho olo y aper aper or Emission or Emission actors actors 25 able25 able 11 11 iea or countries non membercountries malaysia iea or countries non membercountries malaysia epa o cleanener y ocuments e ri ips e R 201 epa o cleanener y ocuments e ri ips e R 201 80%80% 2 1 0 year0 Summary ables p 2 1 0 year0 Summary ables p 20152015 um eltbun esamt e ener ie e politi htm um eltbun esamt e ener ie e politi htm
Report stan ar s metho olo ies an assumptions use
2012 ui elines to e ra E s on ersion actors or ompany Reportin etho olo y aper or Emission actors 25 able 11 iea or countries non membercountries malaysia epa o cleanener y ocuments e ri ips e R 201 80% 2 1 0 year0 Summary ables p 2015 um eltbun esamt e ener ie e politi htm Rene able aterials ats Oils (’000 mT) on rene able materials hemicals rocessin i s (’000 mT)
309 228 2015 2015
445 100 2014 2014 Rene able aterials ats Oils (’000 mT) on rene able materials hemicals rocessin i s (’000 mT) Rene able aterials ats Oils (’000 mT) on rene able materials hemicals rocessin i s (’000 mT) 458 90 2013 2013 309 228 309 228 2015 2015 522 34 2015 2012 2015 2012 445 100 445 100 2014 2014 529 38 2014 2011 2014 2011 458458 9090 2013 2013 2013 2013 522 34 522 34 2012 2012 2012 2012 otal uel consumption rom non rene able sources Rene able sources ener y consumption ithin or anisation 529 38 529 38 2011 2011 2011 2011 000 m Electricity 000 h otal uel consumption rom rene able sources 000 m Rene able ener y io as iomass Energy Consumption within the Organisation 1 0 1 151 0 1 10 1 0 1,056 128,318 20 5 11 0 203,547 otal uel consumption rom non rene able sources Rene able sources ener y consumption ithin or anisation 25,722 otal uel consumption rom non rene able sources 1 5 1 1 2 5 1 1 Rene able sources ener y consumption ithin or anisation 2 0 000 m Electricity 000 h otal uel consumption rom rene able sources 000 m Rene able ener y io as iomass 000 m Electricity 000 h otal uel consumption rom rene able sources 000 m Rene able ener y io as iomass 1 0 1 10 1 0 1 151 0 1 10 1 0 1 151 1 0 1,056 128,318 1 0 1,056 128,318 20 5 203,547 2013 2014 2015 11 0 2011 2012 2013 2014 2015 20 5 203,5472011 2012 2013 2014 2015 11 0 2011 2012 2013 2014 2015 25,722 Not monitored in 2011 & 2012 1 5 1 1 2 5 1 1 2 25,722 1 5 1 1 2 5 1 1 2 0 0 i ht uel oil or erosene iesel or asoil 000 liters 1 otal ener y consumption 000 1 2015 3,909,513 5 2013 2014 2015 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Not monitored in 2011 & 2012 2011 2012 2013 20152014 2015 1,079,148 Not monitored in 2011 & 2012 2014 267 i ht uel oil or erosene iesel or asoil 000 liters i ht uel oil or erosene iesel or asoil 000 liters 2014 otal ener y consumption 000 2015 3,909,5132013 otal ener y consumption 000 2 2 2015 3,909,513 5 1 5 5 2011 2012 2013 2014 2015 2013 Not monitored in 2011 & 2012 2015 1,079,148 2015 1,079,148 2014 2014 otal uel consumption rom 267 2012 267 non rene able sources in 2014 oules or multiples 2014 2013 2 2 2013 2011 2 2 1 5 1 5 2011 2012 2013 2014 2015 2013 2011 2012 2013 2014 2015 Not monitored in 2011 & 2012 2013 Not monitored in 2011 & 2012 otal uel consumption rom otal uel consumption rom 2012 non rene able sources in 2012 non rene able sources in oules or multiples oules or multiples 2011 2011
1% Report standards, methodologies, and 19% assumptions used • 2012 Guidelines to Defra / DECC’s 1% GHG Conversion Factors for Company 1% Report stan ar s metho olo ies an Reportingassumptions use 19% 2012 ui elines• Methodology to e ra E s Paper on ersion for Emission actors19% or ompany Reportin Factors, Pg 25, Table 11 etho olo y aper or Emission actors 25 able 11 iea or countries non membercountries malaysia • www.iea.org/countries/non- epa o cleanener y ocuments e ri ips e R 201 membercountries/malaysia/ 80% 2 1 0 year0 Summary ables p 2015 Report stan ar s metho olo ies an Report stan ar s metho olo ies an um eltbun esamt e ener ie e politi htm• www.epa.gov/cleanenergy/ assumptions use assumptions use documents/egridzips/ 2012 ui elines to e ra E s on ersion actors eGRID2012V1_0_year09_ or2012 ompany ui elines Reportin to e ra E s on ersion actors or ompany Reportin SummaryTables.pdf etho olo y aper or Emission actors 25 able 11 etho olo y aper or Emission actors 25 able 11 • www.umweltbundesamt.de/energie-e/ iea or countries non membercountries malaysia iea or countries non membercountries malaysia politik.htm epa o cleanener y ocuments e ri ips e R 201 80% 2 1 0 year0 Summary ables p epa o cleanener y ocuments e ri ips e R 201 80% 2 1 0 year0 Summary ables p 2015 um eltbun esamt e ener ie e politi htm 2015 um eltbun esamt e ener ie e politi htm 46 Emery Oleochemicals 2015 Sustainability Report Total Water Withdrawal by Source (‘000 m3)
otal otal 000 000 mm
2011 2012 201 201 2015 2011 2012 201 201 2015 3,882 3,798 3,847 3,975 3,637 3,882 3,798 3,847 3,975 3,637
roun ater 000 m
roun ater 000 m
2011 2012 201 475 385 340 2011 2012 201
475 201 385 2015 340 1,437 249
201 2015 1,437 249
Volume of recycled water Water used in our cooling towers are continuously recycled.
47 Emissions (‘000 tCO2)
Direct Greenhouse Gas (Ghg) Emissions (Scope 1) Energy Indirect Ghg Emissions (Scope 2) Direct Greenhouse(CO2, HFC, Gas PFC, (Ghg) NOx) Emissions (’000 tCO (Scope2) 1) Energy Indirect Ghg(’000 Emissions tCO2) (Scope 2) (CO2, HFC, PFC, NOx) (’000 tCO2) (’000 tCO2) 2011 2012 2013 2011 2012 2013 2011421 2012199 2013229 2011242 2012232 2013226 421 199 229 242 232 226
2014 2015 2014 2015 2014281 2015309 2014197 201587 281 309 197 87
Total Ghg Emissions Amount of Ozone - Depleting Substances (kg) Total Ghg(’000 Emissions tCO2) Amount of Ozone - Depleting Substances (kg) (’000 tCO2) 2011 338kg 2011 2012 2013 2011 338kg 2011 2012 2013 664 432 445 2012 306kg 664 432 445 2012 306kg
2013 440kg 2014 2015 2013 440kg 2014 2015 479 396 2014 1,900kg 479 396 2014 1,900kg
2015 5,219kg 2015 5,219kg
Reduction Of Greenhouse Gas We reduced our total Ghg (Ghg) Emissions emissions through concentrated efforts including :
Use of renewable Improved steam Switching to Motor power energy for boilers boiler combustion cleaner consumption Use of renewable Improvedand insulation steam Switchingrefrigerants to Motoroptimisation power energy for boilers boiler combustione ciency cleaner consumption and insulation refrigerants optimisation e ciency
48 Emery Oleochemicals 2015 Sustainability Report NOx, SOx and Other Significant Air Emissions
NOx HFC/PFC 5
10 10 97 1 0
2011 2012 201 201 2015 2011 2012 201 201 2015
SOx VOC 1
2 2 26
1 1 1 1
2011 2012 201 201 2015 2011 2012 201 201 2015
2 Dust 15 14
2011 2012 201 201 2015 49 Total Water Discharge by Quality and Destination
hemical O y en eman iolo ical O y en eman
2015 5,019 2015 1,874 201 14,559 201 4,765 201 7,464 201 3,867 2012 2,668 2012 1,645 2011 2,758 2011 1,802
hemical O y en eman iolo ical O y en eman
2015 5,019 2015 1,634 1,874 hemical O y en eman 1,511 iolo ical385 O y en eman 201 14,559 201 4,765 2015 1,230 5,019 2015475 1,874 201 7,464 201 201 1,149 1,044 14,559 201 3,867 4,765 2012 2,668 201 2012 7,464 201 1,645 3,867 2012 2,668 2012 1,645 2011 2,758 2011 1,802 2011 2,758 2011 1,802
0 0 0 1,634 1,634 1,5112011 2012 201 201 2015 385 2011 2012 201 201 2015 1,511 385 1,230 475 1,149 1,044 1,230 475 reate aste ater ntreate aste ater 1,149 1,044
0 0 0
2011 2012 201 201 2015 2011 2012 201 201 2015 0 0 0 reate aste ater ntreate aste ater 2011 2012 201 201 2015 2011 2012 201 201 2015
reate aste ater ntreate aste ater 50 Emery Oleochemicals 2015 Sustainability Report Total Weight of Waste by Type and Disposal Method 15,967 20,774 13,018 18,867 20,985 8,276 13,361 8,682 9,315 15,851
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Total General Waste Generated Total General Waste Recycled 272 401 422 580 172 2,514 2,005 1,985 1,619 178 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Total Hazardous Waste Disposed Total Hazardous Waste Recycled
Amount of Energy Produced from Biogas (kWH)
2015 7,145,124
2014
2013 17,212 7,767 2012 3,241 5,271 1,929 2011 2011 2012 2013 2014 2015
Non Hazardous Waste To Landfill 51 Prosperity Labour Practices and Decent Work
he long-term success of any company is dependent variety of formal and on-the-job training, and peer and mentor T on its employees. Therefore, the well-being of Emery coaching. Inter-departmental placements, cross-functional Oleochemicals’ employees is never compromised in the exposure and regional relocations all serve to provide a running of our business. breadth of work experience. Employees are empowered to determine and pursue their development needs in advancing their careers. The compensation and benefits that all our employees receive are in compliance with high international labour standards. Our employees receive health coverage (medical, dental, life All management grade employees are required to submit and disability insurance), education loans, pension schemes an annual due diligence report on the areas under their and car schemes. Depending on the employee’s job scope supervision, in the form of a Letter of Representation, that and responsibility, flexible working hours options are available checks for compliance with company code and values. Open to facilitate work-life balance. We have a compensation and direct reporting mechanisms are in place to detect and and benefits philosophy that provides market-competitive eliminate any occurrence of non-compliance. remuneration and benefits package for our employees. We are happy to note that has been no incidence of corruption. Professional and personal development is an integral part of To ensure that this continues, we are regularly audited any employment at Emery Oleochemicals. Guided by our internally and by shareholders. core values and competency model, employee development focuses on Individual Development Plans (IDP), targeting technical, functional and management skills. This includes a The well-being of Emery Oleochemicals’ employees is never compromised in the running of our business.
Employee Attrition
otal otal or orce or orce attrition attrition otal or orce attrition
2011 20122012 201 201 201 201 20152015 2011 2012 201 201 2015 10.9%10.9% 10.9%
omen or orce attrition omen or orce attrition omen or orce attrition
2011 2012 201 201 2015 2011 2012 201 201 2015 2011 44.5% 2012 201 201 2015 44.5% 44.5%
en or orce attrition en or orce attrition en or orce attrition
2011 2012 201 201 2015 2011 2012 201 201 2015 2011 2012 201 201 3.6%2015 3.6% 3.6%
52 Emery Oleochemicals 2015 Sustainability Report
S 2 months S 2 months S alaysia 2 months 1 month alaysia 1 month alaysia 1 month
inimum notice perio s re ar in operational chan es inimum notice perio s re ar in operational chan es inimum notice perio s re ar in operational chan es Total training hours for sta (Non-managers)
Training & Development 25,000
Total20,000 training hours for sta (Non-managers) 15,00025,000 Total training hours 10,00020,000 25,000 7,244 5,00015,000 20,000 Total training hours 10,000 25,000 0 15,000 7,244 12,950 2011 2012 2013 2014 2015 5,000 10,00020,000
Total training0 hours for managers 5,00015,000 12,950 2011 2012 2013 2014 2015 15,000 10,0000
2011 2012 2013 2014 2015 Total10,000 training hours for managers 5,000 5,00015,000 3,289 0
2011 2012 2013 2014 2015 10,000 0 2011 2012 2013 2014 2015 5,000 3,289
0 2011 2012 2013 2014 2015
Percentage of Employees with Regular Performance and Development Plans
Percentage of Employees with Regular Performance and Development Plans 86% 86% 88% 78% 92%
2011 2012 2013 2014 2015 86% 86% 88% 78% 92%
2011 2012 2013 2014 2015
Professional and personal development is an integral part of any employment at Emery Oleochemicals. Guided by our core values and competency model, employee development focuses on Individual Development Plans (IDP), targetting technical, functional and management skills.
53 Health & Safety
otal Recor able n ury Rate R R ur manufacturing facilities operate on strict O Safety, Health and Environment (SHE) standards, which are superior to industry standards or laws and regulations determined by the local 1.87 authorities. As our vision is to be a global leader in an industry with a manufacturing component, it is vital that SHE practices are integrated across our entire business. Our SHE professionals are vigilant in safeguarding health and safety at all our sites, including that of their occupants and surroundings. 2011 2012 201 201 2015
Regular SHE committee meetings are conducted at each Emery Oleochemicals’ manufacturing otal Recor able n ury re uency R facility at an average of 25 times each year. The agenda includes safety enhancements, accident prevention and general improvements in SHE matters. Comprising managerial and non-managerial personnel, the committee monitors, assesses and 0.48 works to improve health and safety at the workplace. Furthermore, employees are empowered to actively participate in the management of sustainability risks, including health and safety concerns and 2011 2012 201 201 2015 environmental consequences. We rely on all our employees to ensure that every consideration is given to the SHE aspect of the Emery Oleochemicals n ury bsence re uency workplace.
Employees are empowered to actively participate in the management of sustainability risks, including health and safety concerns and environmental consequences. 3.35
2011 2012 201 201 2015
Our Safety, Health and Environment (SHE) professionals are vigilant in safeguarding health and safety at all our sites, including that of their occupants and surroundings.
or or e 54 Emery Oleochemicals 2015 Sustainability Report 2011 2012 2011 2012 Relate ours atal in millons cci ents 1 0 1.9 1.85
2015 201 201 2015 201 201 0 0 0 1.730 3.015 1.9 3
Sic ness bsence re uency
3.2% 3.3% 6 .1 % 8.5% 6.8%
2011 2012 201 201 2015 otal Recor able n ury Rate R R otal Recor able n ury Rate R R 1.87 1.87 2011 2012 201 201 2015 2011 2012 201 201 2015
otal Recor able n ury re uency R otal Recor able n ury re uency R 0.48 0.48 2011 2012 201 201 2015 2011 2012 201 201 2015
n ury bsence re uency n ury bsence re uency
3.35 3.35 2011 2012 201 201 2015 2011 2012 201 201 2015
or or e Relate 2011 2012 2011 2012 or ours atal or e Relate 2011 2012 in millons 2011 2012 cci ents 1 0 ours 1.9 1.85 atal in millons cci ents 1 0 1.9 1.85 2015 201 201 2015 201 201 20150 201 0 201 0 1.7302015 3.015201 1.9201 3 0 0 0 1.730 3.015 1.9 3
Sic ness bsence re uency Sic ness bsence re uency
3.2% 3.3% 6 .1 % 8.5% 6.8% 3.2% 3.3% 6 .1 % 8.5% 6.8% 2011 2012 201 201 2015 2011 2012 201 201 2015
710,119 million Profitability 2015 Financial Data : Net Revenue (USD)
263,883 million 237,049 million 209,187 million
Global North Asia Europe America Pacific
55 GRI G4 Index Table
This report is produced based on ‘in accordance’ - Core GRI G4 Reporting Principles, for the year 2015 and covers disclosure for the listed entities below:
Code Description Page
G4-1 Provide a statement from the most senior decision-maker of the organisation about the relevance of sustainability to the 6 organisation and the organisations strategy for addressing sustainability.
G4-2 Provide a description of key impacts, risks & opportunities. 9, 10, 18, 19, 20, 21, 23
G4-3 Report the name of the organisation. 12
G4-4 Report the primary brands, products & services. 14
G4-5 Report the location of the organisations HQ. 12
G4-6 Report the number of countries where the organisation operates and names of countries where either the organisation 12 has significant operations or that are specifically relevant to the sustainability topics covered in the report.
G4-7 Report the nature of ownership and legal form. 12
G4-8 Report the markets served (including geographic breakdown, sectors served and types of customers and beneficiaries). 15
G4-9 Report the scale of the organisation including : 13 • Total number of employees • Total number of operations • Net sales • Quantity of products or services provided
G4-10 • Report the total number of permanent employees by employment type and gender. 13 • Report the total workforce by region and gender.
G4-11 Report the percentage of total employees covered by collective bargaining agreements. 52
G4-12 Describe the organisations supply chain. 32
G4-14 Report whether and how the precautionary approach or principle is addressed by the organisation. 20
G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the 26 organisation subscribes or which it endorses.
G4-16 List memberships of associations in which the organisation : 26 • Participates in projects or committees • Views membership as strategic
G4-18 a) Explain the process for defining the report content and the Aspect Boundaries. 23 b) Explain how the organisation has implemented the Reporting Principles for Defining Report Content.
G4-19 List all the material Aspects identified in the process for defining report content. 23
GG4-20 For each material Aspect, report the Aspect Boundary within the organisation as follows : 23 • Report whether the Aspect is material within the organisation • Report any specific limitation regarding the Aspect Boundary within the organisation
G4-21 For each material Aspect, report the Aspect Boundary outside the organisation as follows : 23 • Report whether the Aspect is material outside of the organisation • If the Aspect is material outside the organisation, identify the elements for which the Aspect is material
G4-24 Provide a list of stakeholder groups engaged by the organisation. 22
G4-25 Report the basis for identification and selection of stakeholders with whom to engage. 22
G4-26 Report the organisation’s approach to stakeholder engagement, including frequency of engagement by type and by 22 stakeholder group and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organisation has 22 responded to those key topics and concerns, including through its reporting.
G4-28 Reporting period for information provided. 12
G4-29 Date of the most recent previous report. 45
G4-30 Reporting cycle. 12
G4-31 Provide the contact point for questions regarding the report or its contents. 58
G4-32 a) Report the ‘in accordance’ option the organisation has chosen. 12
56 Emery Oleochemicals 2015 Sustainability Report Code Description Page
G4-34 Report the governance structure of the organisation, including committees of the highest governance body. 19 Identify any committees responsible for decision making on economic, environmental and social impacts.
G4-37 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and 19 social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.
G4-38 Report the composition of the highest governance body and its committees. 19
G4-42 Report the highest governance body’s and senior executives roles in the development, approval, and updating of 19 organisations purpose, value or mission statements, strategies, policies and goals related to economic, environmental and social impacts.
G4-45 a) Report the highest governance body’s role in the identification and management of economic, environmental and 19 social impacts, risks and opportunities. b) Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks and opportunities.
G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organisation’s risk management processes 19 for economic, environmental and social topics.
G4-56 Describe the organisation’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. 8
EC6 a) Report the percentage of senior management at significant locations of operation that are hired from the local 13 community. b) Report the definition of ‘senior management’ used. c) Report the organisation’s geographical definition of ‘local’. d) Report the definition used for ‘significant locations of operation’.
EN1 a) Report the total weight or volume of materials that are used to produce and package the organisation’s primary 45 products and services during the reporting period, by : - Non-renewable materials used - Renewable materials used
EN3 a) Report total fuel consumption from non-renewable sources in joules or multiples, including fuel types used. 46 b) Report total fuel consumption from renewable fuel sources in joules or multiples, including fuel types used. c) Report in joules, watt-hours or multiples, the total: - Electricity consumption - Steam consumption e) Report total energy consumption in joules or multiples. f) Report standards, methodologies, and assumptions used. g) Report the source of the conversion factors used.
EN8 a) Report the total volume of water withdrawn from the following sources : 47 - Ground water - Waste water from another organisation - Municipal water supplies or other water utilities b) Report standards, methodologies, and assumptions used.
EN9 a) Report the total number of water sources significantly affected by withdrawal by type : 47 - Size of water source - Whether or not the source is designated as a protected area (nationally or internationally) b) Report standards, methodologies, and assumptions used.
EN15 a) Report gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such 48 as purchases, sales, or transfers of offsets or allowances. b) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all). e) Report standards, methodologies, and assumptions used.
EN16 a) Report gross energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent, independent of any GHG 48 trades, such as purchases, sales, or transfers of offsets or allowances. b) Report gases included in the calculation, if available. d) Report standards, methodologies, and assumptions used.
EN19 a) Report the amount of GHG emissions reductions achieved as a direct result of initiatives to reduce emissions, 48 in metric tons of CO2 equivalent. b) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all). d) Report standards, methodologies, and assumptions used.
EN20 a) Report production, imports, and exports of ODS in metric tons of CFC-11 equivalent. 49 c) Report standards, methodologies, and assumptions used.
57 GRI G4 Index Table
Code Description Page
EN21 a) Report the amount of significant air emissions, in kilograms or multiples for each of the following: 49 - NOX - SOX - Volatile organic compounds (VOC) - Other standard categories of air emissions identified in relevant regulations b) Report standards, methodologies, and assumptions used.
EN22 a) Report the total volume of planned and unplanned water discharges by: 50 - Destination - Quality of the water including treatment method b) Report standards, methodologies, and assumptions used.
EN23 a) Report the total weight of hazardous and non-hazardous waste, by the following disposal methods: 53 - Recycling - Landfill b) Report how the waste disposal method has been determined: - Disposed of directly by the organisation or otherwise directly confirmed
EN25 a) Report the total weight for each of the following: 53 - Hazardous waste treated b) Report the percentage of hazardous waste shipped internationally.
EN27 a) Report quantitatively the extent to which environmental impacts of products and services have been mitigated during 44 the reporting period.
LA1 b) Report the total number and rate of employee turnover during the reporting period, by age group, 52 gender and region.
LA4 a) Report the minimum number of weeks’ notice typically provided to employees and their elected representatives prior 52 to the implementation of significant operational changes that could substantially affect them. b) For organisations with collective bargaining agreements, report whether the notice period and provisions for consultation and negotiation are specified in collective agreements.
LA6 a) Report types of injury, injury rate (IR), occupational diseases rate (ODR), lost day rate (LDR), absentee rate (AR) and 54 work-related fatalities, for the total workforce (that is, total employees plus supervised workers).
LA9 a) Report the average hours of training that the organisation’s employees have undertaken during the reporting period, by: 53 - Gender - Employee category
LA11 a) Report the percentage of total employees by gender and by employee category who received a regular performance 53 and career development review during the reporting period.
SO3 a) Report the total number and percentage of operations assessed for risks related to corruption. 53 b) Report the significant risks related to corruption identified through the risk assessment.
For further enquiries please contact : Mr. Faroze Nadar, Global Sustainability Lead, Global Corporate Sustainability, Emery Oleochemicals Contact Point T : +60 3 7844 9262 (DL) +60 3 7844 9333 (GL) F : +60 3 7844 9334 M : +60 12 235 0875 E : [email protected]
58 Emery Oleochemicals 2015 Sustainability Report
Printed with soy ink on 100% recycled paper.