SOLUTIONS FOR A BETTER WORLD
SUSTAINABILITY REPORT 2018 Sustainability Report – Solutions for a better world IN THIS REPORT:
OUR SUSTAINABILITY VALUE PROPOSITION Read more on page 4 Supporting our customers’ sustainability needs with our industry-leading sustainability value proposition
OUR PEOPLE Read more on page 8
Ensuring our people are engaged, inspired, energised and working in a safe environment
OUR COMMUNITIES Read more on page 16
Engaging and partnering with the local communities in which we operate
OUR ENVIRONMENT Read more on page 20
Demonstrating our commitment to reducing the environmental impact of our operations
TRACKING OUR PROGRESS WITH THE UN SDGS Read more on page 30 Demonstrating our alignment with the United Nations Sustainable Development Goals
OUR SUSTAINABILITY GOVERNANCE Read more on page 34 Making continuous progress in sustainability through an appropriate organisational focus
B Intertek Group plc Sustainability Report 2018 SUSTAINABILITY REPORT
We are a purpose-led organisation where sustainability is at the heart of what guides us every single day.”
André Lacroix Chief Executive Officer
At Intertek, our purpose is to make the world Furthermore, we share how, through our global network a better and safer place by bringing quality of sustainability experts, and safety to life. This is the true meaning clients have come to rely of what we stand for. on us to help them understand, achieve and validate their own sustainability goals, ‘Doing business the right way’ positively impacts everyone’s both existing and emerging. is core to our differentiated 5x5 lives today – and the lives of strategy that creates sustainable those that will follow. As the world’s only complete value and growth opportunities Total Quality Assurance (TQA) Making the world a better and for all our stakeholders – our solution provider, Intertek is safer place is what guides us clients and their customers, our ideally positioned to support every single day. True to our employees, our investors, and the its customers’ sustainability Ever Better discipline, we are communities across the world priorities by helping them deeply committed to minimising where we operate. manage and mitigate risk, our environmental impacts, to operate effectively and act Sustainability is truly important operating with integrity by doing responsibly across their for our people and Intertek business the right way, and to global operations. operations around the world. pursuing our corporate social We are passionate about responsibility (CSR) activities Our customers trust us to progressing our sustainability through living our strong values evaluate the quality, safety and agenda as well as helping our everyday everywhere. sustainability of their products, customers progress their own operations and services which In our 2018 report, we share how sustainability agendas. helps them protect their brands our dedicated colleagues around and gain competitive advantage. We are proud to lead the global the world work passionately to quality assurance industry make significant progress on This is particularly important responsibly, energised about the sustainability priorities we to me, as creating sustainable how we contribute to society, articulated last year. growth for all is one of our and how what we do at Intertek core values and is the guiding
Intertek Group plc Sustainability Report 2018 1 Sustainability Report – Solutions for a better world SUSTAINABILITY REPORT continued
principle we pursue on a daily customers improve the quality, framework; the heightened basis to bring quality, safety safety and sustainability of their prevalence of ‘duty of care’ and sustainability to life inside products and services. legislation in France; and the the operations of our clients. newly updated California During 2018, new regulatory Proposition 65 List of SUSTAINABLE SOLUTIONS developments created the restricted chemicals. FOR A CHANGING WORLD need to develop innovative As new risks emerge in a sustainability solutions based, for Over recent years, sustainability fast-changing and increasingly instance, on the announcement issues have dramatically complex world, we continue by the UK Government of a new grown in importance as drivers to seek and explore new and mandatory Streamlined Energy of consumer choice. In fact, innovative ways of helping and Carbon Reporting (SECR) according to research from
2 POSITIVE IMPACT ON OUR PEOPLE, SUPPLIERS AND COMMUNITIES
1 3 SUPPORTING COMPREHENSIVE OUR CLIENTS’ NON-FINANCIAL SUSTAINABILITY ESG KPIS PRIORITIES OUR SUSTAINABILITY PRIORITIES
5 4 CORE TO ALIGNING TO THE EVERYTHING UN SUSTAINABLE WE DO GOALS
2 Intertek Group plc Sustainability Report 2018 Nielsen, 73% of global millennials on our UK gender pay gap for Committee and I receive regular are willing to pay a price premium the first time; we have seen reports on the progress of every for sustainable offerings. good progress on our health and sustainability priority, covering safety monitoring and during my internal initiatives as well as the Within this broad context, visits around the Group I have sustainability services we offer we have deepened our focus been inspired by the quality of to our clients. Our Board is deeply inside the organisation and our local community activities. engaged and kept up to date on I am proud about the excellent our progress. progress on all aspects of our 3 Comprehensive sustainability agenda in 2018, non‑financial ESG KPIs Each of our Countries and based on the five priorities we In our 2017 Sustainability Business Lines define their own defined last year. Report, we showed how sustainability agendas, which are sustainability is embedded into tied to our Group priorities and 1 Supporting our clients’ our Group strategy. We have focused on their local operations sustainability priorities improved our environmental and communities. We have launched a global reporting which enabled us to Intertek Sustainability brand to During 2018, we have broadened improve our Investor Relations improve the awareness of our our network of Sustainability engagement activities with industry-leading sustainable Champions across our Countries institutions that pursue solutions. We recognise the and Business Lines and we have sustainable investment need for the customers of our encouraged our Sustainability strategies. We also benchmarked clients to be sure about the Champions to focus on all our environmental, social, sustainability of products and aspects of our sustainability governance (ESG) performance services they buy and we have agenda, true to our Ever and we were delighted to be developed a set of Intertek Better discipline. recognised by the MSCI, with Sustainability certification a rating of AAA. In 2019 and beyond, we will marks. We launched our first continue to deliver progress on Sustainability marks – Clean Air 4 Aligning to the UN our own sustainability agenda – certification and Zero Waste Sustainable Development and to help our clients progress to Landfill certification – in Goals (UN SDGs) on theirs. September 2018 (see customer Measuring progress on a regular story on page 7). basis is central to our company We strongly believe that making performance management the world better and safer by 2 Positive impact on our approach based on factual bringing quality, safety and people, our suppliers leading and lagging indicators. sustainability to life is the true and communities We developed our reporting meaning of what we stand for. Our sustainability agenda is progress on the UN SDGs for very energising for our our core Business Lines and colleagues and the progress Countries, effectively engaging we have made is commendable: employees and leaders with the we have broadened our appropriate ESG metrics. company‑wide network of André Lacroix Sustainability Champions; 5 Core to everything Chief Executive Officer we have rolled-out globally our we do ‘10X Way!’ training programme To lead by example and ensure to accelerate the growth of continuous progress, I chair our people; we have reported our monthly Sustainability
Intertek Group plc Sustainability Report 2018 3 Sustainability Report – Solutions for a better world OUR SUSTAINABILITY VALUE PROPOSITION
As the world’s only complete Total Quality Assurance provider, Intertek is ideally positioned to support its customers‘ existing and emerging sustainability priorities by helping them identify, manage and mitigate risk, operate effectively and act responsibly across their global operations.
Companies are increasingly for Total Quality Assurance Through our global network facing challenges driven (TQA) solutions that enable of sustainability experts and by growing complexities in organisations across a wide integrated ATIC solutions, their operations, sourcing, range of sectors to keep Intertek is uniquely placed to manufacturing and distribution. ahead of emerging help organisations understand, As consumers’ expectations sustainability requirements. achieve and validate their of corporate responsibility existing and emerging evolve, demand is growing sustainability goals.
TOTAL QUALITY. ASSURED. ATIC solutions extending beyond quality and compliance to deliver sustainable solutions for every industry.
ASSURANCE Intertek’s sustainability assurance services offer a solutions-driven and holistic approach to adoption of increasingly prominent environmental, social and economic best practices.
TESTING Increased scrutiny and demand for transparency and safety of products, food, chemicals, packaging and processes has led to the necessity for testing and analysis services that support and validate sustainable claims.
INSPECTION Our inspections help clients protect their financial, branding and legal interests throughout the value chain.
CERTIFICATION Intertek’s certification and verification programmes help customers to ensure that their products, assets, processes and services meet leading standards and requirements.
4 Intertek Group plc Sustainability Report 2018 Our passion for the sustainability In this section, we provide competitive advantage. We not agenda, proven supply chain highlights of the ATIC only provide valuable insight into expertise, global network sustainability solutions Intertek our clients’ current sustainability and on-the-ground local offers and specific programmes needs. We also identify emerging knowledge means we can we launched in 2018 to address trends, enabling our customers give our customers increased the needs of our clients. to manage sustainability that is transparency to help them material to their business and We list full details of our manage the social, ethical and to safeguard their reputation. sustainability value proposition environmental risks in their Intertek’s TQA promise extends on our Group website at processes and supply chains. to our ATIC sustainability www.intertek.com/ At the same time, we support services, applicable to all sustainability/services. their ability to operate effectively industries and sectors. and act responsibly. Our customers trust us to ensure quality, safety and sustainability in their business, to protect their brands and to help them gain
INTEGRATED GLOBAL SUSTAINABILITY SERVICES
EXTENDED PRODUCER LIFE CYCLE RESPONSIBILITY ASSESSMENT
At Intertek our integrated SUPPLY CHAIN VOC RESILIENCE CERTIFICATION global services offer everything our clients need to manage emerging sustainability requirements GLOBAL ECO-LABELLING & INGREDIENT for products, assets, RECYCLABILITY SUSTAINABILITY TRANSPARENCY SERVICES materials, processes and organisations. Read more at RESPONSIBLE AUDITING www.intertek.com/ SOURCING sustainability
REPORTING & ENVIRONMENTAL DATA ASSURANCE TESTING
Intertek Group plc Sustainability Report 2018 5 Sustainability Report – Solutions for a better world OUR SUSTAINABILITY VALUE PROPOSITION continued
SUSTAINABILITY SERVICES: SCIENCE-BASED METRICS AND MATERIALITY Our sustainability services are now integrated and delivered under the new Intertek Sustainability brand. These services support the growing demand from companies to measure, track, evaluate and report those sustainability metrics that are material to their business. Intertek enables clients to navigate reporting frameworks and evaluate data accordingly, whether for reporting or to meet reduction targets and regulatory requirements. For example, OUR SUSTAINABILITY are constantly evaluating and as part of its commitment to BRAND improving our own processes sustainability, Mitsubishi Electric We have offered sustainability and initiatives, as well as the Sales Canada (MESCA) retained services for over 20 years, services we offer our customers. Intertek to evaluate its Scope 1, and in June 2018, we officially An internal programme is in Scope 2 and material categories unveiled our new Intertek place to harness the power in Scope 3 greenhouse gas (GHG) Sustainability brand at the of Intertek’s global network emissions for their entire product Sustainable Brands (SB’18) of experts and maintain the sales network. conference in Vancouver. consistency and quality of This brand serves to SUSTAINABILITY our sustainability services. In communicate Intertek’s CERTIFICATION MARK 2018, Intertek sustainability sustainability proposition In addition to the Sustainability teams developed an internal to the market, helping our brand, Intertek launched the and centralised location on clients understand, achieve Sustainability certification mark our Group intranet to provide and validate their social in 2018 to serve as the identifier access to resources, templates and environmental goals. of the Sustainability certification and programmes. ATIC toolkits, schemes we deliver through our The launch highlighted the describing sustainability services, innovative ATIC solutions. strength of our existing have been developed across Assurance, Testing, Inspection, all Intertek Business Lines and SUSTAINABILITY Certification (ATIC) sustainability are available to all colleagues CERTIFICATION MARK: services and provided a to ensure we can connect CLEAN AIR platform to introduce new customers to the support and Formerly known as ‘ETL programmes being developed services they need. Training of Environmental VOC Certification’, to meet continuously evolving Intertek employees on existing Clean Air uses a global network demands. Sustainability is core and new sustainability services of ISO 17025-accredited testing to our business and true to is underway, with continued labs to validate the level of our Ever Better discipline. We emphasis throughout 2019.
6 Intertek Group plc Sustainability Report 2018 Sustainability brand launch
volatile organic compound (VOC) SUSTAINABILITY ACQUIRING LEADING emissions from products such as CERTIFICATION MARK: ZERO COMPANIES FURTHER flooring, furniture, drywall, paint WASTE TO LANDFILL STRENGTHENS CYBER and foam insulation. Zero Waste to Landfill, a SECURITY CAPABILITIES programme developed and Following the acquisitions One of the first programmes executed through Intertek’s of Acumen and EWA Canada to be inaugurated into the new Business Assurance team, in 2017, Intertek further Intertek Sustainability mark, uses the Intertek Sustainability strengthened its cyber security the Clean Air mark responds certification mark to help clients capabilities during 2018 with to growing client demand display their compliance with and the acquisition of NTA Monitor, for product testing solutions their continued commitment to a leading network security that support better indoor air the programme. The Electrolux and assurance services provider quality. Manufacturer Purple plant in São Carlos (Brazil) has that is based in the UK and Mattress uses the Intertek achieved the highest-level Malaysia. This acquisition builds Clean Air certification mark to certification (‘Zero Waste’) for Intertek’s presence, both in demonstrate that there are diverting 99.9% of its waste the UK and globally, within no emissions from its bedding from landfill. It is a proud the security assurance and products that may harm adopter of the programme certification market. purchasers or their families. and the Intertek Sustainability certification mark.
VERIFIED CERTIFIED ERO WASTE CLEAN AIR GOLD TO LANDFILL
THIS PRODUCT WAS MANUFACTURED IN A ZERO WASTE TO LANDFILL CERTIFIED FACILITY
Intertek Group plc Sustainability Report 2018 7 Sustainability Report – Solutions for a better world OUR PEOPLE
We are focused on ensuring that our strategy and culture give our people the right platform, not only to grow and develop their careers, but also to be involved in socially responsible activities that support our purpose to make the world a better place by bringing quality and safety to life everyday.
Our 44,720 passionate Intertek Energising, inspiring the business, with a focus on people deliver sustainable and engaging our delivering support, tools and value through unmatched talented people skills to drive 10X Performance. expertise and quality of work To seize the exciting growth The continued roll out of the for our customers globally opportunities arising from training across the entire and on a daily basis. They our Total Quality Assurance organisation aims to ensure contribute to the success of our (TQA) value proposition, we everyone has the tools, customers’ products, services continually invest in the growth processes and principles to and operations, enabling us to of our people. We aim to hire, create sustainable growth for succeed in our vision of being inspire, engage and retain the all. To supplement the face-to- the world’s most trusted partner best people to power our 5x5 face event, embed learning and for Quality Assurance. strategy, providing them with consistently deliver the message, the skills to grow our business. To achieve this, our 5x5 we also developed eLearning With an Ever Better mindset we differentiated strategy energises modules, available to all our encourage them continuously our people to take Intertek 44,720 employees via our digital to learn new skills that help to new heights, to deliver our Learning Management System. them advance their careers and customer promise and live our deliver our customer promise. values. We foster a company Our talent-mapping process is culture where our people are critical to our future success recognised for being inspired in delivering our strategy and to find innovative ways of fostering our culture and values continually developing services throughout Intertek. ROLLED OUT TO OVER and solutions for our customers. Training In this section, we detail the 36,000 Following the successful launch ways in which we seek to of our ‘The 10X Way!’ training INTERTEK PEOPLE engage and inspire our people, to Intertek leaders in 2017, ensuring the frameworks are we continued the global roll out in place for them to succeed of this unique programme to over in a safe working environment 36,000 of our people in 2018. and ultimately making them The content of the training proud to work for Intertek. workshops was based on internal feedback that identified the key development needs across
8 Intertek Group plc Sustainability Report 2018 In order to further support INCLUSION, DIVERSITY a highly engaged and high- AND GENDER EQUALITY 44,720 performing workforce of To live our values and be experts, we continue to embed sustainable and inclusive global EMPLOYEES our performance and growth family that values diversity, conversation with ‘My 10X we apply all employment policies Sarah Journey’, which replaced our and practices in a way that is Administration previous appraisal process. informed, fair and objective. This transformational new This covers all policies relating development plan creates better to recruitment, promotion, quality conversations during reward, working conditions performance reviews, helping and performance management. to better clarify expectations, Our inclusion and diversity policy foster continual improvement eliminates discrimination to and inspire individual progress. ensure that our employees are In addition to ‘The 10X Way!’, treated fairly, feeling respected we provide a range of and included in our workplaces. in‑house and external learning We are committed to maintaining opportunities to provide the highest standards of fairness, Graham employees with the skills respect and safety. We adhere Project Support Leader and expertise they need to to the principles of the UN deliver our TQA brand promise. Convention on Human Rights We operate across a wide range and the International Labour of sectors requiring different Organization’s core conventions. types of technical training, We recognise the importance education and support, of gender diversity, not only in including apprenticeships management but across all levels and internship programmes, of our business. In line with the as well as college degrees and Hampton-Alexander Review, professional qualifications. as well as supporting gender UK Living Wage diversity on our Board, in June In the UK, we were accredited in 2018 we contributed our data Jincy April 2018 as a Real Living Wage on the gender balance across Operations Coordinator employer, in accordance with the our senior executive team and Assistant guidelines of the Living Wage their direct reports, as shown Foundation. We will continue to in the table on page 10. align our directly employed staff At Intertek, we are proud to be with the Real Living Wage UK, an equal opportunities employer. and are working towards aligning We consider all qualified third-party contractor staff with applicants for employment the recommended guidelines.
Intertek Group plc Sustainability Report 2018 9 Sustainability Report – Solutions for a better world OUR PEOPLE continued
OUR VALUES We will continue to promote and endorse fair, consistent WE ARE A WE CREATE and thoughtful working GLOBAL FAMILY SUSTAINABLE practices that are in THAT VALUES GROWTH accordance with our values. DIVERSITY FOR ALL
WE ALWAYS DO WE TRUST WE OWN AND THE RIGHT THING EACH OTHER SHAPE WITH PRECISION, AND HAVE FUN OUR FUTURE PACE AND WINNING PASSION TOGETHER
regardless of gender, ethnicity, and employ various ways of UK GENDER PAY GAP religion, age, disabilities and sourcing talented people. The gender pay gap measures other protected characteristics. These include recruitment the difference between the agencies, social media, printed pay and bonuses of men and We reach out to prospective advertisements, employee women across an organisation, employees in a variety of referrals, professional bodies irrespective of role and level ways, depending on location and associations, schools, of seniority. This is different and role, in compliance with colleges and universities. to equal pay, which is the legal local regulations for fair To offer people career growth requirement to pay the same to recruitment practices and and progression within the men and women who are doing equal opportunities. We post Group, we seek wherever equal work. At Intertek, men and vacancies on our website possible to fill vacancies from women are paid equally for doing (www.intertek. com/careers) within the Company first. equivalent roles.
2017 2018 Male Female Male Female Board 7 3 7 3 Executive Management 11 2 11 3 Team (Exec) Direct reports (DR) 91 19 95 24 Combined: Exec + DR 102 21 106 27
Data submitted as at 30 June 2018.
10 Intertek Group plc Sustainability Report 2018 9,044 3,393 12,185 8,708 7,753 3,637
INTERTEK TQA EXPERTS BY REGION Following the publication of our 12,437 20,893gender pay gap 11,390results in 2018, Americas Asia EMEA (inc. Central) 9,044 3,393 12,185 8,708 7,753 3,637 we committed to a number of Male measures to ensure we provide Female an energising workplace, free of any gender bias, where employees can flourish based on their talent and effort. To strengthen this, we ensure 35% that our shortlists of65% external- hire candidates have a balance of gender diversity. We also provide flexible working where possible and provide mentorship 12,437 20,893 11,390 to women to address the gap in Americas Asia EMEA (inc. Central) gender numbers at senior levels. Male It is vital that our workforce Female represents the best available INTERTEK TQA EXPERTS BY GENDER talent, reflects the communities
Male (28,982) in which we operate and is free of gender or other biases. 35% 65% Female (15,738) We remain committed to equality. DOING BUSINESS THE RIGHT WAY Our vision to be the world’s most trusted partner for 2,184 2,093 2,166Quality2,567 Assurance2,769 is2,801 at the 36,864 38,407 41,434 42,452 43,906 44,720 heart of everything we do at Intertek. We can only deliver that vision if we operate with Intertek’sMale (28,982) gender diversity reflects the industries and qualification integrity to maintain the trust profilesFemale (15,738) typical of individuals working in the countries and business and confidence of all of our lines in which we operate. stakeholders, including our shareholders, our customers, our people and the communities REVENUE AND HEADCOUNT and environment in which we 2013 2014 2015operate.2016 Integral2017 to this2018 is ‘Doing 2,184 2,093 2,166 2,567 2,769 2,801 36,864 38,407 41,434 42,452 43,906 44,720 Revenue (£m) Business the Right Way’; our Headcount internal risk, control, compliance and quality programme.
2013 2014 2015 2016 2017 2018
Revenue (£m) Headcount Intertek Group plc Sustainability Report 2018 11 Sustainability Report – Solutions for a better world OUR PEOPLE continued
At Intertek, ‘Doing Business We have a culture in which This training covers the Code the Right Way’ means living all issues relevant to our and other important professional our values, having the highest professional conduct and our conduct areas, such as data standards of ethics and integrity Code of Ethics can be raised security and operational controls. in how we conduct ourselves and discussed openly without When completing the training, every day, everywhere and in recrimination. We operate a strict all employees are required to every situation. The programme zero-tolerance policy regarding sign a certificate confirming includes processes, tools and any breach of our Code of Ethics their understanding that any training to ensure that: and any behaviour that fails breaches of the Code will result to meet our expected standards in disciplinary action that may • our people work in a safe of integrity as a trusted leader include summary dismissal of and inclusive environment, in the quality assurance industry. the employee concerned. • the services we provide and the contracts we enter To support this policy in action, Whistleblowing hotline into are delivered with all people working for, or on To empower our people and integrity and in line with our behalf of Intertek are required stakeholders to voice any commitment to Total Quality, to sign our Code of Ethics upon concerns about breaches of the joining the Company or before Code or of any of our policies • every colleague commits commencing work on our behalf. (including our Labour and Human to the highest standards of This confirms their acceptance Rights Policy and Modern Slavery professional conduct; and of the high standards expected Policy), we have a well-publicised • we deliver sustainable of them in all business dealings. hotline which can be used by growth by managing our risks The Code sets clear expectations all employees, contractors and and doing the right thing that people working for our others representing Intertek, for the longer term. business must act at all times or by third parties such as our Ethics, integrity and with integrity and in an open, customers or people who are professional conduct honest, ethical and socially affected by our operations. responsible manner. A vital part of ‘Doing Business the This whistleblowing hotline is Right Way’ is our commitment to Intertek employees or people run by an independent, external upholding the highest standards acting on Intertek’s behalf are provider. It is multi-language of integrity and professional responsible for applying the and is accessible by phone and ethics. This commitment is Code in their own job role, their by email to all employees 24 embedded in the Group’s culture part of the business and location. hours a day. Those concerned through the integrity principles are encouraged to report any To support their continuing set out in our Code of Ethics conduct, compliance, integrity understanding, all of our people (‘the Code’), available at or ethical concerns using the are required to complete our www.intertek.com/investors/ hotline. Information posters are comprehensive online ‘Doing governance/code-of-ethics. present in all of our sites. This also covers health and Business the Right Way’ training safety, anti-bribery, labour course annually. and human rights.
12 Intertek Group plc Sustainability Report 2018 Intertek ensures that our colleagues are fully engaged in a safe working environment
Intertek Group plc Sustainability Report 2018 13 Sustainability Report – Solutions for a better world OUR PEOPLE continued
If a report is made to the hotline, HEALTH AND SAFETY it is followed up by Intertek’s A key corporate goal is to ensure Compliance officers. Our Group that our people are fully engaged 17% Compliance function, which is in a safe working environment. REDUCTION IN MEDICAL independent of our operational Managing the health, safety and TREATMENT INCIDENTS businesses and reports directly welfare of our people, clients to our Group General Counsel, and third parties connected We believe our move to proactive fully investigates all reports with the business is therefore reporting of Hazard Observations received. Provided there is no a top priority for us. Intertek is has led to improved health, conflict of interest, all reports committed to the continuous safety and environmental (HSE) are also notified immediately to review and improvement of its awareness at our locations, our Group Ethics & Compliance health and safety performance resulting in incidents previously Committee, which consists of and works towards achieving recorded as ‘Near Miss’ being our CEO, CFO, EVP for HR and zero incidents. more accurately recorded as Group General Counsel. This Hazard Observations. We believe During 2018 we aligned our ensures the effective resolution that the increases seen in First recent acquisitions’ Health and both of individual issues and Aid incident reporting are also Safety (H&S) processes with of any systemic or process linked with greater awareness our own to ensure complete improvements that can be made and reporting overall. First Aid visibility of H&S incidents across to address them. is a very clear type of incident the Group. We also implemented and is now being reported more During 2018, 158 reports of further H&S processes, enabling comprehensively. non-compliance with the Code all Intertek sites to report and were made to our hotline. track relevant activities with our We are constantly improving our Of those reports, 45 were updated Global H&S Platform. tracking and reporting. During substantiated and required 2018, we improved the time In 2018, we continued to grow remedial action. Of those for reporting and reviewing the number of proactive Hazard substantiated claims: incidents, meaning that we can Observations we recorded, respond more quickly and avoid • there were no substantiated broadening engagement across future issues earlier. Our monthly grievances relating to human all countries and achieving an reporting is now enhanced and rights, labour practices or overall reduction in our total richer, including ratios of Hazard societal impact breaches; recordable incident rate (TRIR) of Observations with relation 5bps. It is encouraging that our • there were no environmental to employee headcount for TRIR continues to reduce year incidents; example. Sadly, one fatality was on year. • there were no reported recorded in China. This occurred violations of the rights of when a project manager fell indigenous people; and down a hoisting shaft on a • there were no cases of construction site. discrimination.
14 Intertek Group plc Sustainability Report 2018 2018 2017 % change Hazard Observation 9,155 7,758 18% Near Miss 2,207 2,544 (13)% First Aid 1,094 874 25% Lost time incidents 137 104 32% Medical treatment incidents 149 180 (17)% Fatalities 1 1 – Total recordable incident rate (TRIR)* 0.65 0.70 (5)bps
* Rates refer to the number of lost time incidents (LTIs), medical treatment incidents (MTIs) and fatalities occurring per 200,000 hours worked. Note: Overall total recordable incidents (TRI) increased by 2, but would have shown a reduction in like-for-like reporting. In 2018 we have included data for our acquired environmental service company, ABC Analitic.
all employees and contractors SUPPORTING OUR CLIENTS are provided with personal IN HEALTH AND SAFETY protection equipment People Assurance services Intertek is committed when performing work for In 2018, Intertek expanded to the continuous review the Company. its People Assurance services with the acquisition of Alchemy and improvement of To ensure that we can operate Systems, a leading Software-as- its health and safety safely, there is a dedicated fire a-Service (SaaS) company. performance and works warden, first-aider and health towards achieving and safety representative at Alchemy offers software zero incidents.” each Intertek location. These learning and compliance representatives are empowered solutions for the food industry. We go to great lengths to train not only to investigate incidents In a world of increasingly complex all our employees on health and and implement preventative and supply chains and distribution safety matters, including as corrective actions, but also to channels, employees are key in part of our induction process disseminate safety information driving operational excellence emergency response procedures, through training and continual in multi-site organisations. intervention and reporting improvement programmes to There is therefore a growing of accidents, incidents and target identified specific areas demand for bespoke People near misses. Where relevant, of concern. Assurance solutions to identify, monitor and efficiently close critical skills gaps among frontline employees. These solutions offer an efficient and innovative platform to help our clients achieve their sustainability goals, especially in food safety and workplace safety and compliance.
Intertek Group plc Sustainability Report 2018 15 Sustainability Report – Solutions for a better world OUR COMMUNITIES
The role we play in supporting more In this section, we have selected some examples from across sustainable communities in which we operate the world to show how our is vital to the success of our business. passionate Intertek colleagues have engaged with and Fostering good relationships provides benefits supported local communities beyond reputation, in areas including during 2018. recruitment, local education and engagement. This is because our passionate and dedicated colleagues are proud of improving the lives of the people and communities around them.
CANADA: CREATIVE DAY Volunteers from across the water bottles, including water FOR SOCIAL GOOD – business liaise with schools to coolers and good quality ALCHEMY SYSTEMS collect and then circulate a list tap water. Intertek’s newly acquired People of much needed items to all HONG KONG: SUPPORT Assurance business Alchemy employees. In 2018, following CLIENT’S CHARITY EVENT Systems, in partnership with this communication, Intertek Although Hong Kong is one of Capacity Canada, Conestoga Turkey employees donated the wealthiest cities in the world, College, Him & Her, Manulife supplies including stationery, income disparity is increasing Financial and the local creative toys, educational materials, and the city’s wealth gap is community, provides free reading books, shoes, boots and at its widest in 45 years. Our marketing communications work coats to the schools. Thanks to colleagues at Intertek in Hong to charities from across Canada the combined efforts of all, and Kong were happy to join their through Creative Day the generous donations, more client, A.S. Watson, in taking for Social Good (CD4SG). than 100 students were helped time to visit elderly care homes. as a result of the programme. CD4SG brings together teams Everyone who took part is proud of art directors, writers, account UK: REUSABLE WATER to have had the opportunity managers and other creative BOTTLES FOR ALL CALEB to assist people in need and professionals who donate BRETT EMPLOYEES take part in a valued client’s key their time for two days. They To reduce the impact of single- charity event. guide graphic design and use plastic products on the HONG KONG: ACTION TO public relations students from environment, all employees at RECYCLE PLASTIC WASTE Conestoga College through the Caleb Brett in the UK have been Intertek Hong Kong took part professional creative process. issued with branded multi-use in the ‘10 Tonne Challenge’, water bottles to use at home as TURKEY: SUPPORT RURAL a city-wide plastic recycling well as at work. Simultaneously, SCHOOLS initiative supported by the Hong the company removed single-use Intertek Turkey supports an Kong Environmental Protection cups from all sites. Managers ongoing initiative for local Department. A large recycling have also been asked to look at schools in poorer rural regions station was placed in Intertek’s other alternatives to single-use through employee donations. Hong Kong office to ensure our
16 Intertek Group plc Sustainability Report 2018 Supporting rural schools in Turkey
100 Creative Day for Social Good in Canada STUDENTS WERE SUPPORTED BY OUR PROGRAMME FOR RURAL SCHOOLS IN TURKEY
1,300 colleagues recycle their used plastic. The plastic waste collected will be remade into tote bags and other products. The recycling process and tote bag production also provide work CSR event to support the elderly in Hong Kong opportunities for the community, and the proceeds from the sale of the bags are donated to support the elderly and the poor. TAIWAN: SUPPORTING MARINE HABITATS AND WILDLIFE During 2018, colleagues in Taiwan took part in several activities focused on the preservation of marine wildlife. This included 100 Intertek
Intertek Group plc Sustainability Report 2018 17 Sustainability Report – Solutions for a better world OUR COMMUNITIES continued
employees participating in CHINA: FUNDING RAISING FUNDS TO PROTECT coastal clean-up activities over EDUCATION FOR THE POOR WOMEN AT RISK OF a weekend, as well as delivering 2018 is the 11th year in which TRAFFICKING sustainable management Intertek China has campaigned The Intertek team based in services to clients designed to to raise funds for poor students Allentown, Pennsylvania, notably reduce marine pollution and in Chongming District, Shanghai. engaged with Women At Risk protect coastal ecosystems. Over this time, Intertek (WAR) International during colleagues have provided 30 2018. This Michigan based TAIWAN: BUTTERFLY students with support and non-profit organisation creates HABITAT CONSERVATION financial assistance, from primary ‘circles of protection’ around In November, Intertek colleagues school through to university. people at risk, using a range of and their families teamed up culturally sensitive projects and with The Butterfly Conservation KERALA: PROVIDING RELIEF partnership to fund and provide Society of Taiwan to protect FOLLOWING FLOODING safe places to heal from abuse, habitat in the Jian-nang butterfly In August 2018, severe flooding trafficking and other forms garden in Taipei. The Intertek caused havoc in the Southern of exploitation. The Intertek team worked to clear away Indian state of Kerala, leading team sold unique items made overgrowing plants around the to widespread destruction of by women at risk and people park, providing space for more property and the tragic loss of rescued from slavery, raising over butterfly-friendly vines and close to 500 lives. US$1,000 – enough to pay plants to thrive. Butterflies play Intertek colleagues responded for more than three months in key roles in plant pollination, to the needs of survivors an overseas safe house for a and help to promote natural following the disaster, with woman rescued from trafficking. ecological balance. On the day of voluntary deductions from their the event, volunteers from the monthly salary and the provision Society were on hand to provide of clothes, food, medicines, insights on the importance of toiletries and more. Our facilities environmental conservation. team consolidated these SURINAME: CALEB BRETT donations into more than 400 aid SPONSORS KNOWLEDGE packages for distribution across AND EDUCATION the most affected villages of Intertek Caleb Brett was one Annamanada and Poovathussery of the Gold Sponsors for the and the nearby town of Salakudi. Petroleum Engineering Student Chapter at the Anton de Kom University in Suriname, when it participated in the 2018 PetroBowl competition – a quiz challenge between different universities relating to competencies, expertise and technical knowledge in the Oil & Gas industry.
18 Intertek Group plc Sustainability Report 2018 Supporting relief efforts in Kerala
Butterfly habitat conservation in Taiwan 400 AID PACKAGES PROVIDED BY INTERTEK FOR FLOOD SURVIVORS IN KERALA
Woman at risk: ‘Circles of protection’
40 INTERTEK TAIWAN COLLEAGUES VOLUNTEER TO PROTECT LOCAL BUTTERFLY HABITAT 30 STUDENTS IN CHINA HAVE RECEIVED SUPPORT AND FINANCIAL ASSISTANCE FROM PRIMARY SCHOOL THROUGH TO UNIVERSITY
Intertek Group plc Sustainability Report 2018 19 Sustainability Report – Solutions for a better world OUR ENVIRONMENT
Our environmental mission is to provide a better quality of life today and a more environmentally responsible world tomorrow. We will do this by continually improving our business performance in line with our Ever Better discipline to minimise the impact of our operations on the environment.
Intertek’s environmental software allows for site‑level energy tracking to reduce carbon emissions.” 492 INTERTEK SITES IMPROVED THEIR NATURAL RESOURCE EFFICIENCY.
OUR APPROACH Last year, Intertek implemented • utilising renewable energy Intertek’s focus is deeply a Global Sustainability sources, committed to minimising our Environmental Software • implementing green waste environmental impact. platform. This is optimised management practices, To do so, we monitor site-level specifically to provide Intertek • carrying out efficient water activities across a range of with the reporting, analytics and management, environmental metrics and auditability to support site‑level work with our sites to reduce sustainability initiatives and • minimising business travel; energy consumption and limit corporate reporting. and greenhouse gas (GHG) emissions. • operating quality Our teams globally regularly Intertek plays an important role management systems. upload and monitor their data in raising awareness of climate within the environmental change and national resource To support this effort, our software. This provides them constraints among its employees, Environmental and Climate with the deep intelligence they suppliers and customers. As such, Change policy is implemented by need to understand their our aim is to improve operational country management to ensure local environmental impact. and natural-resource efficiency compliance with local guidelines That enables them to assess in a consistent manner across all and regulations. how they can manage their our sites. consumption through:
20 Intertek Group plc Sustainability Report 2018 Through setting meaningful to 30 September 2018. The 2018. This has resulted in a objective targets and tracking corresponding average number restatement to our 2017 base accurately, we can ensure of employees for this period year, reducing CO2 per employee that we are minimising our was 44,255. from 5.08 to 4.42. environmental footprint while Due to the wider scope and As a Total Quality Assurance providing our key stakeholders depth of reporting from 2017 (TQA) provider, we carry out with the data they need to onwards, and the increased testing on behalf of our clients understand our performance. attention to detail and diligence which involves the direct OUR DATA across all Intertek sites, we consumption of fuel or the direct Our annual GHG reporting cycle made continual refinements to release of emissions through runs from 1 October 2017 our environmental data during testing procedures. Our clients
1 CO2e emissions from activities for which Intertek is responsible include:
1 GHG Emissions (tonnes of CO2e) 2018 2017 (restated) Scope 1 Fugitive Emissions 5,034 4,993
Mobile Combustion – Owned Fleet 25,637 24,357 Stationary Combustion 24,715 24,877 Purchased and Used Electricity Scope 2 (location-based) 117,706 121,376 Purchased and Used Electricity (market-based) 124,269 126,527 Purchased Heat and Steam 1,625 1,573 Scope 3 Energy-Related Activities 7,616 12,274 Total emissions (location-based) 182,333 189,451 Total emissions (market-based) 188,896 194,602 Outside of scope Biomass 628 947 Fugitive Emissions 2,512 3,457 Total emissions (location-based) including outside of scope 185,473 193,855 Total emissions (market-based) including outside of scope 192,036 199,006
Intensity ratio – Scope 1,2,3 emissions
CO2 per employee (location-based) 4.12 4.42
CO2 per employee (market-based) 4.27 4.54 Average # of employees during reported period 44,255 42,828
1. CO2e – Carbon dioxide equivalent.
Intertek Group plc Sustainability Report 2018 21 Sustainability Report – Solutions for a better world OUR ENVIRONMENT continued
‘Environmental Reporting Guidelines: including 242,485 MWh mandatory greenhouse gas TOTAL ELECTRICITY Intertek uses the most emissions reporting guidance’. CONSUMPTION up-to-date GHG emission IN 2018 In compliance with the above factors available for standards, Intertek uses the each country.” most up-to-date GHG emission 5.48 MWh factors available for each PER EMPLOYEE require the tests we perform country and type of activity. to help them determine the The emission factors are sourced safety, quality and environmental from the relevant government efficiency of their products. department in each country. While this increases our overall Where local emission factors Group reported emissions, it has are not available, the platform a positive longer-term impact on uses default emission factors the item being tested. provided by the International For 2018, Intertek’s electricity Energy Agency (IEA), GHG consumption was reported to be Protocol, the UK’s Department we engaged with a reputable 242,485 MWh (5.48 MWh per for Environment, Food and third-party vendor to carry employee). Gas consumption Rural Affairs (DEFRA) and the out a materiality assessment was reported to be 64,796 MWh US Environmental Protection to determine which Scope 3 (1.46 MWh per employee). Agency (US EPA). emissions, as defined by the GHG In 2017 we set our first SCOPE 3 MATERIALITY Protocol, are relevant to Intertek. emissions target which was ASSESSMENT The relevance of each of the to reduce CO emissions per As part of our ongoing 2 15 categories was established employee by 5% by 2020 versus improvements to our based on the Intertek business our 2017 base year. Our progress environmental data tracking model. Data was then collected during 2018 resulted in an and reporting, during 2018 overall reduction in emissions of 3.8% whilst at the same time we saw a growth in employee ASSESSMENT OF INTERTEK SCOPE 3 MATERIALITY headcount of 3.3%, as such
our CO2 per employee reduced by 6.9%. As a result of this Purchased Goods & Services reduction we are extending our Fuel and Energy-Related Activities target to be a 5% decrease in
CO2 per employee from 2018 Employee Commuting to 2023. Capital Goods Intertek’s reporting complies with the methodologies outlined Business Travel by the GHG Protocol ‘Corporate Upstream Transportation & Distribution Accounting and Reporting Standard’, ISO 140064-1, Waste Generated in Operations 5% materiality and the UK Government’s Threshold
22 Intertek Group plc Sustainability Report 2018 and analysed to assess the footprint. As such, the materiality Intertek, five were deemed to be materiality of those that were of each GHG Protocol category material as they each represent determined to be relevant. The was set as 5% of total Scope 3 more than 5% of the total Scope available information and data emissions in order to ensure 3 emissions. During 2019, Scope from each relevant category that future data gathering 3 data under the five material was then used to calculate an and reduction strategies will categories will be assessed in estimate of the total global be focused on the most further detail with the objective emissions in those categories. impactful areas. of reporting on these categories as part of Intertek’s future global The review established that After determining that seven emissions reporting. Scope 3 emissions are a material categories were relevant to portion of Intertek’s total
CATEGORY RELEVANCE MATERIAL DETAILS 1. Purchased Good & Services Emissions associated with goods and services that Intertek procures through routine operational expenditure 2. Fuel and Energy-Related Emissions associated with transmission losses Activities from electricity 3. Employee Commuting Emissions associated with employees commuting to work 4. Capital Goods Emissions associated with goods and services that Intertek procures through capital expenditure 5. Business Travel Emissions from travel undertaken by employees on company business 6. Upstream Transportation – Emissions associated with shipping and & Distribution transportation of goods 7. Waste Generated in – Emissions associated with disposal of waste Operations generated 8. Upstream Leased Assets – Not considered relevant due to limited sub‑leasing of Intertek assets 9. Downstream Transportation – Not considered relevant due to Intertek being & Distribution a service provider 10. Processing of Sold Products – Not considered relevant due to Intertek being a service provider 11. Use of Sold Products – Not considered relevant due to Intertek being a service provider 12. End-of-Life Treatment of – Not considered relevant due to Intertek being Sold Products a service provider 13. Downstream Leased Assets – Not considered relevant due to limited sub- leasing of Intertek assets 14. Franchises – Not considered relevant due to no franchises in operation 15. Investments – Intertek has employee pension schemes but due to their external management, under GHG guidelines these can be excluded
Intertek Group plc Sustainability Report 2018 23 Sustainability Report – Solutions for a better world OUR ENVIRONMENT continued
LCA evaluation of products Evaluating GHG data
SUPPORTING OUR CLIENTS the product from the selection reduction targets. As an example, IN ENVIRONMENTAL of materials and shipping Intertek’s sustainability experts MANAGEMENT networks to recycling, reuse have been retained by Mitsubishi Our Sustainability Services and end-of-life management. Electric Sales Canada to collect provide multiple ways in Environmentally conscious and data, calculate and report their which we can support our accountable business practices Scope 1, 2 and 3 GHG emissions clients achieve their are essential to our client’s for the country’s entire sales environmental monitoring vision and they intend to use network. Intertek is collecting and management goals: the science-based metrics from and evaluating data, not only for the LCA to continuously improve regional sales offices, but also Life Cycle Assessment their impacts and meet corporate such Scope 3 categories as the Life Cycle Assessment (LCA) has sustainability goals. upstream purchase of goods and emerged as an essential and transportation, business travel widely recognised framework Carbon Footprint and employee commuting as well to understand and measure Assessment for Mitsubishi as the downstream distribution the environmental and carbon Electric Sales network and use. The project impacts of a product, material Canada (MESCA) involves supporting internal or process. LCA tools can be As part of the global push teams to collect the correct leveraged to support value chain to reduce GHG emissions, information, to perform technical decision-making, production organisations are assessing their reviews of data and calculations optimisation, innovation in design carbon impacts through science- in accordance with the GHG and end-of-life management. based metrics that provide Protocol and ISO standards, and Intertek is working with a popular accurate and reliable information to prepare a report outlining global e-commerce company to key decision-makers and the science-based metrics. to assess the cradle-to-grave stakeholders. Mitsubishi Electric Sales Canada impacts of their core product. Intertek’s sustainability teams is undertaking this in-depth The evaluation offers insight into are working with companies to analysis as part of its corporate the environmental impacts and determine or validate their GHG sustainability initiatives and avoided impacts associated with emissions throughout their entire carbon reduction goals. value chain and achieve carbon-
24 Intertek Group plc Sustainability Report 2018 Management of wastewater PET Plastic resin
Wastewater global discharged into the sanitary Novel approach to PET regulatory requirements sewer to protect important plastic manufacturing study for Roche infrastructure, human health As part of its strong commitment Intertek worked with and impacts on the environment. to sustainability, OCTAL, a F. Hoffmann-La Roche Ltd As a global healthcare business, global PET resin manufacturer, (Roche) in Switzerland this company is a leader in has developed innovative and to identify wastewater sustainability and committed efficient means of producing pollutant discharge limits in to promoting healthy lives PET plastic that reduces multiple jurisdictions worldwide. and wellbeing for all. environmental impact Managing the prevention of through an overall reduction Intertek’s research into regulation wastewater pollution from in carbon emissions. preventing wastewater pollution industrial, institutional and ensures access to information Intertek worked with OCTAL commercial sources is an on key environmental regulatory to carry out a carbon footprint important environmental mechanisms that are crucial to analysis, demonstrating its novel mechanism to protect fresh Roche’s customers’ operations. approach to PET manufacture and groundwater resources It also provides insight into and new technologies. OCTAL against harmful and restricted evolving sustainability targets also enlisted Intertek to evaluate substances. Municipalities across various jurisdictions. the environmental impacts and regional jurisdictions associated with end-of-life across the world regulate and recycling. This contrasts enforce specific concentrations with traditional disposal via of subject pollutants and landfill and demonstrates the substances that can be Intertek worked with effectiveness of the recycling OCTAL to carry out programme in reducing the a carbon footprint overall carbon footprint of PET analysis, demonstrating plastic products. its novel approach to PET manufacture and new technologies.”
Intertek Group plc Sustainability Report 2018 25 Sustainability Report – Solutions for a better world OUR ENVIRONMENT continued
OUR GLOBAL ENVIRONMENTAL ACHIEVEMENTS 2018
As we operate a decentralised business model, it’s our local teams who look for ways to become more environmentally efficient and reduce the impact of operations. Here we provide some examples of our achievements in 2018. Through actively performance managing our GHG emissions in 2019, we hope to make further improvements.
3 1 4
2 6
5
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26 Intertek Group plc Sustainability Report 2018 1 TRANSPORTATION 3 CANADA, BC 6 TURKEY TECHNOLOGIES, UK OPERATIONS, In Turkey feasibility studies COMMODITIES Intertek Transportation are underway for a solar Technologies UK was awarded In Canada, Intertek partnered energy project. certification to the ISO 14001 with a plastic recycling company to recycle all used 7 GHANA, TARKWA Environmental Management MINERALS and to BS OHSAS 18001 sample bags. Occupational Health and In Ghana, Intertek planted 4 INTERTEK CALEB BRETT 500 trees on site. Safety Management DENMARK, KALUNDBORG standards. In Denmark, Intertek recycles 8 AUSTRALIA, HONG KONG, JAPAN, NEW ZEALAND, 2 MALTA cooling water during RON SOUTH KOREA, TAIWAN petroleum analysis. Intertek in Malta moved Intertek upgraded to LED offices in August 2018. 5 DOMINICAN REPUBLIC lighting in labs in these The new office is equipped In the Dominican Republic the countries. with double glazing apertures Accuvio system is used to and LED lighting. monitor petrol and electricity consumption.
Intertek Group plc Sustainability Report 2018 27 Sustainability Report – Solutions for a better world OUR ENVIRONMENT continued
INDEPENDENT ASSURANCE We do not accept or assume Summary of work performed STATEMENT TO INTERTEK any responsibility for any other The procedures we performed GROUP PLC MANAGEMENT purpose or to any other person were based on our professional We have performed a limited or organisation. Any reliance any judgement and included the assurance engagement on such third party may place on steps outlined below: selected performance data the Report is entirely at its 1. Interviewed a selection of presented on page 21 of the own risk. management to understand Intertek Group plc (“Intertek Our assurance engagement the management of Group”) Annual Report 2018 has been planned and greenhouse gas data within (“the Report”). performed in accordance with the organisation. Respective responsibilities the International Standard 2. Reviewed a selection of Intertek Group management is for Assurance Engagements management documentation responsible for the collection (ISAE) 3000 Revised, Assurance and reporting tools including and presentation of the Engagements Other Than Audits guidance documents. information within the Report. or Reviews of Historical Financial Intertek Group management is Information. The Report has 3. Performed a review of also responsible for the design, been evaluated against the the Accuvio online data implementation and maintenance following criteria (collectively collection tool, including of internal controls relevant to “the Criteria”): testing outputs and selected the preparation of the Report, conversions made within Completeness so that it is free from material the tool. • Whether all material data misstatement, whether due to sources have been included fraud or error. 4. Reviewed underlying and that boundary definitions documentation for a sample Our responsibility, in accordance have been appropriately of site-level data points. with our engagement terms with interpreted and applied. Intertek Group management, 5. Reviewed and challenged Consistency is to carry out a ‘limited level’ the validation and collation • Whether the Intertek Group assurance engagement on the processes undertaken by scope and definitions for the selected data (“the Subject Intertek Group management Subject Matter Information Matter Information”) outlined in relation to the Subject have been consistently under the following headings Matter Information. applied to the data. in the Report: 6. Reviewed the Report for Accuracy • Greenhouse gas emissions – the appropriate presentation • Whether site and business- scope 1; of the Subject Matter level data have been Information, including the • Greenhouse gas emissions – accurately collated by discussion of limitations scope 2; and Intertek Group management and assumptions relating • Greenhouse gas emissions – at a Global level. to the data presented. intensity ratio. • Whether there is supporting information for the data reported by sites and businesses to Intertek Group management at a Global level.
28 Intertek Group plc Sustainability Report 2018 Limitations of our review The responsibility for the We confirm annually to Intertek Our evidence gathering prevention and detection of Group whether there have procedures were designed fraud, error and non-compliance been any events, including to obtain a ‘limited level’ with laws or regulations the provision of prohibited of assurance (as set out in rests with Intertek Group services that could impair our ISAE3000 (Revised)) on which management. Our work should independence or objectivity. to base our conclusions. The not be relied upon to disclose There were no such events or extent of evidence gathering all such material misstatements, services in 2018. Our assurance procedures performed is less frauds, errors or instances of team has been drawn from than that of a reasonable non-compliance that may exist. our global Climate Change assurance engagement (such as and Sustainability Services Conclusion a financial audit) and therefore Practice, which undertakes Based on the procedures we a lower level of assurance engagements similar to this have performed and the evidence is provided. with a number of significant UK we have obtained, nothing has and international businesses. Completion of our testing come to our attention that activities has involved placing causes us to believe that the Ernst & Young LLP reliance on Intertek Group’s Subject Matter Information London controls for managing and was not prepared, in all material 4 March 2019 reporting sustainability respects, in accordance with the 1. Parts A and B of the IESBA Code, and information, with the degree Criteria, which were applied by the International Standard on Quality of reliance informed by the management. Control 1 (ISQC1). results of our review of the Our independence effectiveness of these controls. We have implemented measures We have not sought to review to comply with the applicable systems and controls at Intertek independence and professional Group beyond those used competence rules as articulated for selected data (defined by the IFAC Code of Ethics for as the Subject Matter Professional Accountants and Information above). ISQC11. EY’s independence The scope of our engagement policies apply to the firm, was limited to the reporting partners and professional staff. period, and therefore 2018 These policies prohibit any performance only. financial interests in our clients that would or might be seen to impair independence. Each year, partners and staff are required to confirm their compliance with the firm’s policies.
Intertek Group plc Sustainability Report 2018 29 Sustainability Report – Solutions for a better world TRACKING OUR PROGRESS WITH THE UN SDGs
As a purpose-led organisation and Total Quality Assurance provider, we are in a strong position to align INTERTEK ACTIVITIES with each of the United Nations ALIGNED TO ALL UN SDGs
Sustainable Development Goals • Charity and community (‘UN SDGs’). This is due both to the support initiatives internal activities we carry out for our people, our communities and the environment, and to the sustainability services we provide • Charity and community support initiatives to our customers.
We use the UN SDGs as a third party, independent framework to track our Country and Business Line progress in sustainability. In our 2017 report, • Food testing services we announced that from 2018 each of our major for our clients Business Lines and Countries will provide quarterly • Colleague health and updates on their progress towards achieving the wellbeing programmes UN SDGs that they have chosen to align with and embed in their daily activities.
A wide and impressive range of goals is targeted • 10X training and development across the organisation. Quantitative and for Intertek colleagues qualitative reporting demonstrated during the year • Community education support how our countries have contributed to the goals. initiatives Here we provide an overview of many of the Group’s activities across all the UN SDGs. We also include examples of highlights from the year on a • Workplace Gender Equality selection of the goals, from both an internal and a report Australia client services perspective. • EDGE certifications provided to clients in Australia • Real-time inequality monitoring system in France LOOKING AHEAD We will continue to update stakeholders • Water quality testing services on our progress on the UN SDGs, providing for our clients annual examples of our activities across • Intertek China partners WWF different Business Lines and Countries, both from an internal and a client perspective.
30 Intertek Group plc Sustainability Report 2018 • Installation of Stem Battery • Environmental audit Solution in US services for clients • Intertek certified several leading • Environmental monitoring and regional quality alliances in China control in Intertek locations • Environmental audits, training • Fitting labs with LED lighting and services for our clients
• Commitment to UK • Charity and community Living Wage support initiatives • Charity and community support initiatives
• Commitment to • Charity and community ‘Doing Business support initiatives the Right Way’
• Commitment to inclusion • Commitment to ‘Doing and diversity policy Business the Right Way’
• Charity and community • Global network of support initiatives Sustainability Champions drive engagement with UN SDGs locally • Charity and community support initiatives
• Waste initiatives in the US, Australia, UK, Hong Kong • Verifying new sustainable materials in Hong Kong • Supporting sustainable production of plastics
Intertek Group plc Sustainability Report 2018 31 Sustainability Report – Solutions for a better world TRACKING OUR PROGRESS WITH THE UN SDGs continued
MAKING OUR OWN PROGRESS WITH THE UN SDGS…
INSTALLATION OF A STEM CLIMATE ACTION REDUCING GENDER BATTERY SOLUTION ABC Analitic, Intertek’s leading INEQUALITY The United States has a environmental services company Intertek first produced a Gender significant role to play in based in Mexico, received the Pay Gap report in 2017 for its Intertek’s energy use and how government’s Certificate of UK operations. We are highly we are meeting the carbon Environmental Compliance committed to reducing the pay reduction goals outlined in in June. In achieving this, we gap and improving our gender this report. reaffirmed our commitment to balance across the whole caring for and preserving the organisation globally. We therefore continue to environment. The Certification implement better ways for all We have, for example, ensured in Environmental Compliance of our US-based locations to compliant reporting to the is an evaluation strategy used reduce their energy consumption. Australian Government to help improve the quality of These activities are fully aligned Workplace Gender Equality sustainable processes, products to the Affordable and Clean Agency and implemented a and services. Energy goal, focusing on energy permanent system to monitor efficiency projects and clean inequalities in France. energy purchasing options. In addition, we provide our In October 2018, Intertek’s Lake clients with key auditing Forest California site installed services for Gender Equality, a Stem battery system which such as Economic Dividends is designed to reduce peak for Gender Equality (EDGE). energy demand. This battery Intertek is the first certification storage system also plays a part body fully approved to certify in strengthening the California companies against the EDGE electricity grid by supporting standard, which is the only global renewable energy in the state. assessment methodology and business certification standard for gender equality.
32 Intertek Group plc Sustainability Report 2018 … AND SUPPORTING OUR CLIENTS’ PROGRESS WITH SUSTAINABILITY SERVICES Responding to crisis averts more – give clients access to environmental disaster an interconnected knowledge When several dead manatees base that provides solutions were spotted in rivers in the to everything from regulatory Mexican state of Tabasco, a team issues to supply chain challenges. WATER QUALITY TESTING from Intertek ABC Analitic quickly Total Quality Assurance SERVICES rose to the challenge of testing validation of sustainable Our wide range of water the water for toxins. When no material testing services assists clients high levels of toxic substances In Hong Kong, our client operating in all water-related were found through conventional manufactures Chitosan yarn, a sectors, including water approaches, the team needed to sustainable new material that’s utilities, industry, Oil & Gas, develop and implement a series based on a natural compound ports and harbours, food, power of entirely new tests in just derived from the shells of generation, desalination and five days. crab and shellfish. Intertek has pharmaceuticals. We help our Because our labs are capable of created a unique and innovative clients use practical technologies quickly processing the complex testing method both to verify to explore water properties and matrices required in these the material’s existence within produce quality improvements. instances, our involvement yarn and to assure its recycling Partnership with WWF China was mission-critical in enabling lifecycle. This Total Quality Intertek China established a local government bodies to Assurance solution validates partnership with the World make informed decisions and the material’s anti-bacterial, Wide Fund for Nature (WWF act quickly to prevent wider odour repellent and China) in 2017, and since then environmental impacts. biodegradable properties. has participated in a project First ‘Water Footprint’ Green called ‘WWF Water Management Leaf Mark awarded Innovation Action’. By providing A product developed by the Ming water management solutions Fai Group, the leading company to the textile industry, Intertek in the Chinese hotel industry’s aims to improve corporations’ RESPONSIBLE PRODUCT consumer goods sector, has water use efficiency within PRODUCTION received the first water footprint their value chain and pollutant Intertek is at the forefront Green Leaf mark. The Reeco discharge conditions, as well as of ensuring the safe and product reduces the foam reducing water related crises and sustainable execution and produced in the laundry process, adverse environmental impacts delivery of products to cutting washing time and water in manufacturing operations. their intended markets. Our consumption to reflect the key We continue to offer training capabilities in a range of importance of addressing water services to increase textile industries – including electrical scarcity. The Green Leaf mark companies’ water risk awareness. and electronic products, medical award follows Intertek’s work devices, IT and telecoms, toys evaluating the life cycle and games, juvenile products, of the Reeco product, from textiles and apparel, food and manufacture to implementation.
Intertek Group plc Sustainability Report 2018 33 Sustainability Report – Solutions for a better world OUR SUSTAINABILITY GOVERNANCE
At Intertek, sustainability is core to our Business Line network: • Engaging the sales business and everything we do. We are organisation within the constantly evaluating and improving our Business Line to ensure it is aware of all the sustainability processes, both in the services that we offer to services that can be offered our customers and in our own business to customers. processes and initiatives. • Working with colleagues globally to help develop In 2017 we established a set To enhance engagement across our suite of sustainability of five Group sustainability our sustainability initiatives, services. priorities, linked to our 5x5 the Committee is supported • Helping to generate new differentiated strategy for by a network of Sustainability and innovative ways of growth. We further developed Champions across our major offering sustainability these over 2018, under the Countries and Business Lines. services to our customers. leadership of the Sustainability Their roles include: Operating Committee. We aim to expand this network Country network: over time to include more THE SUSTAINABILITY • Seeking opportunities to Countries and Business Lines, OPERATING COMMITTEE act sustainably, through enhancing engagement The purpose of the Sustainability energy efficiency and cost across our business in Operating Committee (the reductions across energy, sustainability activities. ‘Committee’) is to advance water and waste usage. Our people are passionate about Intertek’s initiatives, both in our • Engaging with people locally their work and are proud to external sustainability services to drive positive behaviours be involved in activities which for clients and our internal throughout the organisation generate a positive impact for sustainability activities. The core as well as through society and the environment. elements the Committee focuses encouraging sustainability Each of our Countries and on include: engagement with local Business Lines defines its stakeholders. • Oversight of the development own sustainability agenda, of Intertek’s sustainability • Maintaining best-in-class tied to our Group priorities. service offerings; internal labour and human This ensures that the objectives • Oversight of the progress rights practices, activity and activities being performed made on internal monitoring and improving locally are understood, and sustainability activities, social sustainability metrics. that we benefit from best including Intertek’s practice globally. environmental footprint, GHG emissions, contribution to the UN SDGs, tracking and reporting of key ESG metrics and reporting to the Executive Management Team and the Board.
34 Intertek Group plc Sustainability Report 2018 SUSTAINABILITY NETWORK
Group CEO
Updates Board monthly Executive Management Team
Updates Updates annually uarterly Sustainability Operating Committee
Sustainability Data Social HR Sustainability Lead E ternal Reporting Sustainability Services
Updates monthly
Country Champions: 15 countries Business Line Champions: 10 BLs
RESPONSIBLE INVESTMENT As appropriate, acquired in the continuously improving Generating sustainable, long- businesses will be provided and ever-changing areas of term returns is a key enabler of with access to our Group working conditions, human rights our 5x5 strategy for growth. Environmental Data Software and environmental conditions in We achieve this by means of and will be required to submit the supply chain. a Responsible Investment their environmental data as part In 2018 we held two ESF events, (‘RI’) approach. RI includes the of the ongoing reporting cycle. one in New York and one in evaluation of ‘ESG’ risks as part SUPPORTING OUR CLIENTS – London. These covered, among of the investment process. ETHICAL SOURCING FORUM other topics, Modern Slavery ESG due diligence forms a key Our Sustainability value and hidden labour risks in the UK part of our acquisition review proposition also supports our and US, as well as global supply process. We also use it when clients in their supply chain chain trends. assessing capital expenditure risk assessments. In the UK, a panel of industry decisions on new and innovative Since 2001, Intertek’s Global experts who were invited to ATIC services. We ensure that Business Assurance business speak and take part in roundtable we have identified potential line has leveraged its supply discussions included: ESG risks and have in place chain expertise in shaping the corresponding mitigation plans • Ethical Trade Manager, Ethical Sourcing Forum (ESF). and remedies. Our investment Sainsbury’s Group; This is an industry-leading event process, in line with our focused on supply chain social • Head of Global Ethical Policy, overall Group strategy, ensures responsibility and responsible/ BBC Studios; that we maintain the right ethical sourcing. The conference’s balance between performance • Director of Operations, main theme, ‘Be Part of the and sustainability. Gangmasters Labour Solution’, emphasises ESF’s role Abuse Authority;
Intertek Group plc Sustainability Report 2018 35 Sustainability Report – Solutions for a better world OUR SUSTAINABILITY GOVERNANCE continued
• Human Rights, Modern via labour agencies is increasing Going forward, the Intertek Slavery and Responsible organisational risks such as Business Assurance team Sourcing Consultant; and compromised brand reputation will build on these events. • Intertek Group General and reduced visibility and control It is scheduling future Ethical Counsel and Head of during sourcing and due Sourcing Forums in 2019 in key Risk & Compliance. diligence practices. sourcing markets. The forum provided an opportunity In the US, the panel included for senior compliance and ethical a representative of the US sourcing representatives from UK government, Senior Policy Advisor brands and retailers to discuss and Forced Labour Programmes, US learn about the risks of sourcing department of Homeland Security from the UK, especially around the Investigations, providing different subject of worker exploitation. perspectives on business and This topic is important because the government initiatives. current access to a labour market
Global Reporting Initiative (GRI) guidelines provide a recommended framework and indicators for reporting. A table outlining the GRI standard disclosures is provided on our corporate website at www.intertek.com/about/ corporate-responsibility/. All data used for performance indicators is representative of the GRI Guidelines.
36 Intertek Group plc Sustainability Report 2018 Read more at www.intertek.com/ sustainability INTERTEK GROUP PLC 33 Cavendish Square, Tel +44 20 7396 3400 London, W1G 0PS [email protected] United Kingdom intertek.com