Sustainability and CSR Report 2014 1 Sustainability and CSR Report 2014

“Our employees are helping companies around the world to develop products that are used safely by millions of people every day.”

WOLFHART HAUSER Chief Executive Officer

At the heart of our corporate mission show a reduction in our CO2e emissions per employee over the previous year. The Group’s improved disclosure score and values lies our commitment to our in the Carbon Disclosure Project is a further validation of customers, people, communities, our improved data collection, details of which are on pages environment and investors. 5 and 6. I would like to take this opportunity to thank all our employees We help our clients to ensure the quality and safety of their for their continued hard work in helping Intertek achieve this products, assets and processes; to protect their brands and great progress towards our sustainability targets. enable their success in the global marketplace. Our employees are helping companies around the world to develop products that are used safely by millions of people every day and in all our communications with employees, we emphasise the value of the work they are doing for business, people and the planet as a whole. Our people have a wide range of skills but share common WOLFHART HAUSER values of integrity, honesty and respect for others. This is Chief Executive Officer demonstrated by the many charitable and community activities our colleagues engage in – just a few examples of which are highlighted in this report. We now employ more than 38,000 people around the world – an increase of 4% over the previous year. We take the safety For more detail of our employees and all those affected by our operations very 2 Our business seriously and are constantly improving the way we monitor our How we are making a positive contribution to health and safety performance and the management of H&S the planet through our work for clients. globally at Intertek. While I am pleased to report a reduction in lost time injuries compared with 2013, we remain focused 3 Our people on educating our people in this area, with a view to achieving Our commitment to the welfare and development our goal of zero lost time injuries. of our people. Throughout this report, you can read how our services are 5 Our environment helping customers to manage their operations and produce Taking responsibility for our impact on the environment. products and services in a sustainable and ethical manner. In 6 Our communities our own operations, we continue to improve our processes for Giving back to the communities touched by our business. collecting and monitoring our emissions data which for 2014, SUSTAINABILITY AND CSR REPORT 2014 2

Our business IMPROVING NUTRITION FOR PEOPLE WORLDWIDE The Global Alliance for Improved Nutrition (‘GAIN’) was Intertek helps many of the world’s largest multinational launched in 2002 to focus on finding and delivering solutions corporations and best-known brands to improve the social, for the complex problem of malnutrition. Through food ethical and environmental impact of their products, services fortification and other strategies, GAIN delivers affordable and supply chains. nutritious foods to 811 million people in more than 40 countries In March 2014, Intertek held the 14th Ethical Sourcing Forum and aims to reach 1 billion people by 2015. The GAIN Premix for leading organisations to address emerging supply chain Facility (‘GPF’), founded in 2009, helps food fortification SUSTAINABILITY AND CSR REPORT 2014 trends and challenges. The ES Forum, themed ‘20 Years of CSR projects to access a more cost-effective way of procuring high Transparency: Then and Now’, focused on how social media is quality vitamin and mineral premix. transforming the face of corporate social responsibility as Intertek has been a key partner with GAIN since the launch citizens worldwide have unprecedented access to information of GPF, auditing potential blenders and suppliers and checking on the behaviour of corporations. that they meet minimum standards. To ensure the premix SUPPORTING COMMUNITIES THROUGH OUR WORK contains the correct level of micronutrients to be of benefit In Hong Kong, Intertek has been sponsoring the leading fashion to people’s health and to maintain quality throughout the brand Kate Spade & Company, on a programme that supports supply chain, Intertek also assists with analytical services and a group of more than 150 artisans in Masoro, Rwanda, whose checks samples from every order a customer places with the skills have become the foundation of a new business that is GPF. Globally, premix sourced by the GPF in partnership with reshaping the community’s quality of life. Intertek’s Centre Intertek has helped to improve the health of 150 million people of New Technology is providing its expert testing services over the past year. to support this programme, on a pro bono basis, to help HELPING BUSINESSES TO REDUCE THEIR FOOTPRINT these artisans build a trusted, successful brand. Intertek works with a number of organisations to analyse the In 2014 Intertek was awarded a contract with the Portland environmental impact of their products and services. In 2014, Development Commission (‘PDC’), in Oregon, USA, to perform we completed a project for a German chemical company which testing and certification for clean technology products. The supplies glycerin (an ingredient used in many personal care PDC and the City of Portland were awarded federal funding products) in bulk containers. These containers are usually to assist in the integration of clean technology as part of an thrown away after one use but the company introduced initiative to accelerate innovation and production, and thereby a return and refill system. Intertek’s analysis revealed that this stimulate job growth in the region. Intertek will be the sole reduces their packaging by 86% and achieves a 68% reduction testing provider for local manufacturers of products relating in their carbon footprint. This independent verification of the to clean technologies such as batteries, electric vehicles, benefits encouraged the company’s customers and others lighting, green buildings, energy efficiency and solar power. in its supply chain to accept this innovation. PROTECTING CITIZENS AGAINST COUNTERFEIT GOODS We are currently working with a leading manufacturer Intertek is a member of The Certification Industry Against of PET plastic (polyethylene terephthalate) to analyse the Counterfeiting (‘CIAC’), an international network of certification carbon footprint of its new production plant in Belgium. organisations committed to stopping the worldwide Intertek measures the electricity and gas the new factory takes proliferation of products bearing counterfeit certification marks to produce one tonne of PET, the quantities of raw materials that may endanger public health and safety. As part of CIAC, required and the emissions and wastes that result. This is then Intertek actively participates in Operation Overshock, a strategic compared to existing data from the top PET producers in and coordinated effort between INTERPOL and its certification Europe, enabling us to verify that the new factory achieves a industry partners, to detect and dismantle transnational and lower carbon footprint per tonne of PET than existing factories, organised counterfeiting networks. due to its new design efficiencies. Since 2011, Intertek has progressively gained international STEWARDSHIP AND GOVERNANCE recognition in the field of anti-counterfeit medicines through Intertek’s Board of Directors oversees and is responsible its activities in Switzerland, the Philippines, Mozambique and for the Group’s strategy, performance and risk management. the UAE. The Intertek lab in Basel, Switzerland was instrumental The Board acknowledges the importance of diversity in in bringing a resolution to the fake medicine crisis in 2012 at the boardroom as a driver of good governance. As at the Punjab Institute of Cardiology hospital in the Lahore region, 31 December 2014, the Board’s composition was 20% which claimed the lives of over 120 heart patients who had female and 80% male and for the senior leadership group been treated with counterfeit antihypertensive medicines. (121 people), 23% female and 77% male. To read more about Intertek worked closely with the government of Punjab our Board diversity see page 57 of the full Annual Report. to rapidly identify and withdraw the suspect drugs among Sustainability and CSR are integrated into Intertek through commonly used products such as Isotab (isosorbide nitrate), policy deployment. Our operations and support functions Lipitor (atorvastatin calcium), Cardiovastin (simvastatin), are responsible for identifying and evaluating risks applicable Alfagril (clopidogrel), Concort (amlodipine) or Soloprin (aspirin). to their areas of the business and the design and operation This work, and our subsequent activity in the field of of suitable internal controls (see ‘Principal Risks’ on pages anti-counterfeit medicines led to the Intertek lab in Basel, 11 to 17 of the full Annual Report). The Board has overall Switzerland being added, in October 2014, to the World Health accountability for Intertek’s sustainability and CSR, with Group- Organisation list of Prequalified Quality Control Laboratories wide strategy and implementation being the responsibility of considered acceptable for use by United Nations agencies. the Group Vice President, Human Resources. 3 Sustainability and CSR Report 2014 continued

Our people Our goal is to ensure that all potential leaders of Intertek are provided with appropriate people skills to grow our business, More than 20,400 employees responded to our 2013 global hire and retain the best people and provide career growth employee survey and their feedback indicated that overall for future leadership positions. Our talent mapping process engagement had increased by 2% on the previous year. is critical to the future success of our organisation to meet During 2014 we continued to focus on the three main areas business strategy growth needs. that our people felt most strongly about: clarity of our strategy, social and environmental responsibility, and performance The Intertek Executive Academy, which was established in management and reward. Our sector business line leaders 2012 to develop our next generation of global leadership for have been provided with toolkits to help them communicate our future business growth, has to date seen 71 participants and embed their local strategy. Our management teams have develop their careers. More than half of those have analysed their local feedback to identify specific areas for subsequently moved into more senior leadership positions. improvement in their countries. This has led to a number of Further progress was also made during the year with country new employee initiatives including focus groups, improved level schemes such as: workplace environmental practices, mentoring and community projects, and sports, social and recreation clubs. In the UK, • The launch of our UK Management Development Programme. we are piloting a network of Corporate Social Responsibility The 10-month course has so far welcomed 69 participants Champions to coordinate our environmental and charitable with the first cohort due to complete the Programme in activities in the region. March 2015. • In Hong Kong, around 100 managers and supervisors are ATTRACTING AND RETAINING TALENT currently taking part in a three-year programme to develop Our aim is to attract, select, and promote the best available our future talent pool in the country and several workshops people who engage in and share the mission and values of have been held during the year on subjects such as project Intertek. Prospective employees are sourced through a variety management and consultative marketing. of channels, depending on the location and role, in compliance • In China, we have training programmes to develop our people with local regulations for fair recruitment practices and equal at all levels, including our Induction Camp, Knowledge Centre, opportunities. Jobs at Intertek are advertised via our website and long-term senior leadership development programmes (intertek.com/careers), recruitment agencies, social media, with international business schools. Intertek has been voted as print advertisements, professional bodies and associations, one of the ‘100 Best HRM companies’ in China in the annual and schools, colleges and universities. Where possible, we fill HRM survey initiated by 51Job.com for a seventh year running. vacancies from within the Company first, in order to offer people career growth and progress within the Group. Intertek In 2014, Intertek offered over 1,300 online training courses to is an Equal Opportunities Employer and all qualified applicants 26,000 employees in 68 different countries. Of these, 400 were are considered for employment regardless of race, colour, developed through collaboration with internal subject-matter religion, physical ability, gender or national origin. experts across the various Intertek businesses. During the year over 130,000 online courses were completed by 17,000 INCLUSION AND DIVERSITY employees and since implementation, over 340,000 courses Intertek’s employment policies and practices operate within have been completed. a framework which reflects a culture of merit where decisions are based on the individual’s ability to perform in relation to the PROFESSIONAL CONDUCT needs of the business. These policies complement and conform One of our primary business objectives is to help our customers to local and national laws, regulations and codes of practice. meet quality standards for virtually any market in the world and We act to apply all employment policies and practices, including protect them against risk by ensuring compliance with local, recruitment, promotion, reward, working conditions and national and international laws. The accuracy and validity of performance management related policies, in a way that is reports and certificates that we provide to our customers and informed, fair and objective. As such, our inclusion and diversity maintaining the trust and confidence of our customers, their policy acts to eliminate discrimination so that our employees customers and others impacted by our work, are therefore of are treated fairly and feel respected and included in our utmost importance to us. workplaces. We are committed to maintaining high standards All those working for or on behalf of Intertek are required of fairness, respect and safety and adhere to the principles to sign our Code of Ethics upon joining the Company or before of the UN Convention on Human Rights and the International commencing work on our behalf, confirming acceptance of Labour Organisation’s core conventions. the high standards expected of them in all business dealings. INVESTING IN OUR PEOPLE The Code requires that employees act with integrity and in an Training helps us to strengthen the most important pillar of open, honest, ethical and socially responsible manner. It is the our organisation – our employees. We encourage our people responsibility of each Intertek employee or person acting on to grow within Intertek by learning new skills to help them Intertek’s behalf to understand and apply the Intertek Code advance their careers, contribute to social mobility and deliver of Ethics in their own job role, their part of the business and the best possible service to our customers. location. All employees are required to complete our Code of Ethics training course annually. SUSTAINABILITY AND CSR REPORT 2014 4

Intertek is committed to maintaining a culture where issues HEALTH & SAFETY of integrity and professional ethics can be raised and discussed Intertek considers the health, safety and welfare of its openly and has a strict policy of zero-tolerance regarding employees, clients and third parties connected with its business breaches of compliance policy. We have a well-publicised to be of paramount importance. The Company’s aim is to hotline for all employees, contractors and others representing achieve zero lost time injuries and Intertek is committed to the Intertek, to enable confidential reporting of suspected continuous review and improvement of its health and safety misconduct or breaches of the Code. performance. All employees are given training on health and safety matters, including emergency response procedures and

During 2014 there were 31 hotline reports of non-compliance SUSTAINABILITY AND CSR REPORT 2014 intervention and reporting of accidents, incidents and near which were substantiated claims requiring remedial action. misses. Where relevant, all employees and contractors are Reports of non-compliance are closely monitored and the provided with personal protection equipment when performing Audit & Risk Committee periodically reviews the outcomes work for the Company. of the hotline and compliance reports on behalf of the Board. Lines of communication for health and safety matters exist INTERTEK TOTAL WORKFORCE BY GENDER at every Intertek location globally. This includes a dedicated fire warden, first-aider and health and safety representative. These Female representatives enable us to not only investigate incidents and Male 64% 36% prescribe preventive and corrective actions but also disseminate safety information through toolbox talks and continual improvement programmes. During 2014 we achieved a 16% reduction in lost time injuries and medical treatment injuries. One fatality was recorded in Burkina Faso in West Africa. This happened when the employee was struck by a vehicle while undertaking a work-related errand. In response to this incident, an awareness campaign about pedestrian road safety was communicated to all At 31 December 2014 Intertek employed 38,407 people, employees in the region. an increase of 4% over the previous year. 2014 2013 2012 FEMALE:MALE BY REGION Occupational fatalities 1 2 1

Americas 8,921 Female Lost time injuries rate* 0.25 0.34 0.43 Male Medical treatment 6,448 injuries rate* 0.34 0.36 0.38 * Rates refer to the number of lost-time injuries and medical treatment injuries occurring per 2,473 200,000 hours worked. A lost-time injury is an accident which resulted in the employee being unable to work for more than four consecutive days. Asia 19,292 We have continued to strengthen the process for reporting 11,151 information relating to accidents, incidents and near misses through developing an online reporting tool, which is expected 8,141 to be implemented in early 2015. The resultant insights will be EMEA 10,194 shared globally to help reduce our accident rates and also increase efficiency in our operations globally. 6,972

3,222

Intertek’s gender diversity reflects the industries and qualification profiles typical of individuals working in the countries and business lines in which we operate.

REVENUE AND HEADCOUNT

2,093 2014 Revenue (£m) 38,407 Headcount 2,184 2013 36,864 2,054 2012 34,882 1,749 2011 31,712 Intertek employees in São Paulo, Brazil learn how to operate 1,374 2010 fire-fighting equipment. 27,04 4 Total number of Intertek employees over the last five years in relation to revenue shows continuing growth in employment. 5 Sustainability and CSR Report 2014 continued

Our environment As for Scope 3 emissions (indirect GHG emissions from sources not owned or directly controlled by Intertek but which relate to Intertek performs a vital role in helping its clients to sustain our activities) Intertek sites continue, where possible, to reduce the environment and tackle climate change. Equally, within waste going to landfill, recycle and reduce water consumption. Intertek’s own operations, there are controls in place to This year, our site in Perth, Australia was recognised for its minimise the Group’s impact on the environment through contribution to tackling the challenge of water scarcity (see utilising renewable sources of energy, reducing energy inset). We are also committed to utilising our in-house consumption in our buildings and facilities, implementing teleconferencing facilities to reduce our travel emissions. ‘green’ waste management practices, minimising business travel, carbon offsetting and operating quality management As a further validation of Intertek’s commitment to tackling systems. To support this effort, our Environmental and Climate climate change across the business, in 2014 Intertek in Japan Change Policy is implemented through country management, was awarded the ‘S-Ranking’ from the Tokyo Metropolitan to ensure compliance with local guidelines and regulations. Government for the second year running. The Tokyo Government assesses Conformity Assessment Bodies (‘CABs’), For 2014, Intertek’s electricity consumption was reported to be of which Intertek is one, on their GHG emissions. It then 241,900 MWh (6.30 MWh per employee) and gas consumption publishes the results on its website so that organisations can was reported to be 101,471 MWh (2.64 MWh per employee). consider this ranking when selecting a CAB to work with. In 2013, Intertek developed its Greenhouse Gas (‘GHG’) Only eight out of 40 CABs achieved the S-rank grade. emissions accounting and reporting to include all Intertek Intertek also participates in waste reduction and recycling operations worldwide. In 2014 we focused on improving the activities and programmes with non-profit organisations quality of information captured and determining how this data in Hong Kong. In 2014 Intertek received the ’Low Carbon can add value to the business. More details are given below. Operation Programme’ label from the World Wildlife Fund The levels of GHG emissions have been calculated using the and the ‘Green Office’ award from the World Green guidelines of the GHG protocol and DEFRA and relate to the Organisation, which encourages and audits businesses’ reporting period 1 October 2013 to 30 September 2014. environmental initiatives.

1 CO2e emissions from activities for which Intertek is responsible include: Intertek’s Minerals facility in Perth, Australia, was recognised for its outstanding water saving efforts by the Western GHG Emissions Australian Government as part of its Water Efficiency 1 (tonnes of CO2e) Management Programme. The site was able to reduce Scope 1 the combustion of fuel 48,921 its usage by utilising water previously sent to waste as a operation of facilities 11,230 by-product of deionized water production. Intertek received Scope 2 purchase of electricity, both Platinum and Champion Awards (the Champion heat or steam 142,510 Awards are presented to businesses achieving Platinum Outside of or Gold for two consecutive years). Scopes 607 Total emissions 203,268

Intensity ratios 2 2014 CO2e per employee 5.29 2 2013 CO2e per employee 5.75

1. CO2e – Carbon dioxide equivalent. 2. GHG emissions under the Kyoto protocol include fuel testing, fuel consumption and mileage, use of fire extinguishers, release of refrigerants and coolants, nitrous oxide usage, steam and heat co-generation and steam import, in addition to electricity and gas consumption. In order to provide a more complete picture of our global GHG emissions, actual data was compiled for all our major operating countries and for the smaller sites that were unable to provide data, some figures were extrapolated. Extrapolation was based on equivalent activity data (electricity and gas consumption) of From left: Mia Davies, WA Water Minister, Rob Chapman Intertek Operations Manager Western Australia and Water Corporation CEO, Sue Murphy. a single employee and then multiplied by the number of people at that site. Actual data was used for minor contributions such as fugitive emissions (refrigerant and coolant leaks). Where sites provided data covering only part of the year, figures were extrapolated linearly to cover the full year. SUSTAINABILITY AND CSR REPORT 2014 6

BETTER DATA Our communities Improved data collection has enabled us to identify opportunities to increase internal efficiencies. A good example The communities in which we live and work are important of this is the introduction of our LENS smart meter energy to us and as an organisation, we are mindful of giving back to saving system at our Geelen site in the Netherlands (the biggest our neighbourhoods. Intertek’s involvement in local community energy user in our European operations) where significant or charitable causes is determined at a local level by our energy efficiencies have already been achieved. As our GHG Country Managers, who support and encourage employee emissions accounting develops further, we expect further good participation. Many of our employees also contribute their practice to emerge to further consolidate our commitment to personal time to volunteering and fundraising for charity. SUSTAINABILITY AND CSR REPORT 2014 tackling climate change. Some of the activities in which Intertek and its employees STANDARDS participated during 2014 included: Many Intertek sites are certified to ISO 14001. This • A co-operation agreement with Llamada Solidaria, a NGO environmental management system supports the continuous in Spain that helps investigate new treatments for adults improvement of energy consumption and waste and water and children with rare or complex diseases. management, helping to reduce the impact of risk to the • In addition to annual donations to the Children with Leukemia environment, control costs and improve environmental Foundation, employees in Turkey raised £455 for families performance. As part of Intertek’s environmental management affected by the coal mine disaster in Soma, Manisa, in May. system, there are strict controls in place to manage the • On 18 July, Intertek employees in South Africa celebrated handling, storage and disposal of harmful and hazardous Mandela Day by taking part in a number of community substances to minimise the risk of their release into the volunteering activities to carry forward Nelson Mandela’s environment. Intertek employees are fully trained in the safe vision of democracy, freedom, equality, diversity, handling of such substances and are provided with appropriate reconciliation, and respect. equipment and clothing to protect themselves and reduce the • Intertek employees in the US took part in the Hood to Coast risk to the environment. A critical element of enabling Relay, a 199 mile race that starts from the foot of Mount continuous improvement is the reporting of all incidents which Hood, the tallest peak in Oregon and ends at the Pacific all employees are required to do. Ocean. The race, which involved 20,000 participants from COMMUNICATION all 50 US states, raised over US$500,000 for cancer research, General good practice and sustainability initiatives in Intertek treatment and support services. are communicated to all our employees. Increasingly, Intertek • Some of the many events which took place at Intertek sites are introducing ‘green teams’ that seek innovative ways locations in Canada were an aeroplane pull in Hamilton, to engage people into projects that support the delivery of which raised CAN$800 for MacMaster Hospital’s kids’ Intertek’s sustainability strategy. All employees are made charity ‘MacKids’, and CAN$3,250 in company and employee aware of Intertek’s Sustainability and CSR policy, of which donations to the Club des petits déjeuners de Montreal-Est, the environment is an important element. a charity that funds local community projects and enables access to healthy food for children and teenagers.

The mural outside Intertek’s office in New Delhi, created by a local village artisan from recycled materials. Intertek employees in Hamilton, Ontario, participate in the annual Miracle Plane Pull for the McMaster Children’s Hospital. 7 Sustainability and CSR Report 2014 continued

• In China, Intertek experts held seminars and lectures • In India, Intertek commissioned a mural, created largely from throughout the year for senior citizens on the subject of food recycled material, to adorn the wall of the main entrance to safety, food allergies and home safety. They also provided One Intertek House in New Delhi. The mural was created by seminars for parents and community residents, covering safety a local village artisan through Art Kommune, a renowned art aspects of toys, food and cosmetics and held educational platform that supports artisans from all over the world. seminars for students at our Electrical lab in Shanghai. • Intertek experts in Japan discussed renewable energy and • In Chile, Intertek held careers seminars for students of other topics as part of an ‘Environment Experience Festival’ Santo Tomas College, provided internships to students of for seven local schools in Chuo-ku, Tokyo. The event, which a local technical college in co-operation with the Liguria received 1,500 visitors, was to raise young people’s awareness Investment Enterprise, and donated reagents to the of environmental issues through interactive experiences. chemistry lab of a local school. • One hundred Intertek employees in Jakarta donated 30 litres • Across Australia and the Solomon Islands, our businesses and of blood to the Pelang Merah (Indonesian Red Cross). employees raised more than AUS$1,800 through a number of charitable events during the year, including ‘Movember’, the moustache-growing fundraising event. • Intertek continued its work with the Leatherhead Hub in the UK, to share skills and resources in support of students and staff of local schools. Employees across the UK also took part in events to raise funds for local charities and donated to local food banks. • Intertek employees in Germany donated around €8,500 to various charities and supported the Christmas campaign ‘Geschenk mit Herz’ (‘A heartfelt gift’), sponsored by Humedica, a Kaufbeuren-based charity organisation. Volunteers assembled thousands of parcels containing gifts, learning and teaching materials, food and toys for Intertek employees in Jakarta donate blood to the Indonesian Red Cross. disadvantaged children who live in regions affected by crisis and war. Sustainability and CSR Intertek’s Sustainability and CSR report was developed with reference to Global Reporting Initiative (GRI) G3.1 guidelines, which provide a recommended framework and indicators for reporting. A table outlining the GRI standard disclosures is provided at the end of this document. All data used for performance indicators is representative of the Group, unless stated otherwise.

This Sustainability and CSR Report was approved by the Intertek Board on 27 February 2015. By order of the Board.

Employees in Germany volunteer to help Humedica’s Christmas Campaign

• In Hong Kong, our people took part in many events WOLFHART HAUSER throughout the year, including blood donations, charity Chief Executive Officer fundraising, supporting the Ronald McDonald children’s care home, elderly care and youth development programmes. The Hong Kong Red Cross awarded Intertek with the ‘Caring Company’ logo for the third consecutive year in 2014.

Intertek Group plc 25 Savile Row London W1S 2ES United Kingdom t: +44 20 7396 3400 f: +44 20 7396 3480 e: [email protected] www.intertek.com

Offering a broad range of certification and accreditation marks accepted in markets around the world. Intertek’s mark of quality.