Sustainability Report FY2018 Vanderlande Industries Holding B.V. Financial Year 2018

MOVING YOUR BUSINESS FORWARD Contents

About this report 3 Highlights 4 Foreword from the CEO 5 Company profile 6 Core and brand values 7 Company locations 8 Sustainable ambition 10 Stakeholder inclusiveness 12 Materiality assessment 13 Health and safety at work 15 Design safety and ergonomics 18 Employee development and training 20 Employee engagement 22 Energy use (products and systems) 26 Sustainable product design 28 Responsible sourcing 30 Circular solutions 32 Corporate governance 35 GRI content index 38

2 About this report

This report addresses the sustainability approach, position Vanderlande is not obligated by legislation to report on and performance of Vanderlande Industries Holding B.V., a sustainability. However, the company believes in transparency fully owned subsidiary of Toyota Industries Corporation (TICO). and has chosen to voluntarily publish this Sustainability It has been prepared in accordance with the GRI standard: Report. For this reason, it has not been externally assured. core option. Vanderlande acts in a practical way to apply the precautionary This is Vanderlande’s first report in accordance with the GRI principle in its approach while maintaining its competitive standards. For this reason, it should be as a new baseline and position in the market. The company takes account of scientific not compared with the previous report in respect to material evidence and global trends to reduce carbon emissions and to topics and their respective boundaries. act responsibly.

All data refers to Vanderlande’s financial year 2018 (1 January For more information on Vanderlande and its reports, please 2017 to 31 March 2018) and represents every employee refer to www.vanderlande.com. Questions regarding the globally, unless otherwise stated. The financial year has been content of this Sustainability Report can be addressed to extended to 15 months due to the acquisition of Vanderlande [email protected]. by TICO in 2017.

Vanderlande’s previous Sustainability Report was published on 3 June 2015 and covered the financial year 2015 (1 April 2014 to 31 March 2015). The company’s ambition is to now produce a Sustainability Report biennially.

> Vanderlande Sustainability Report FY2018 3 Highlights

Foreword from Sustainable Health and safety at the CEO ambition work

see page 5 see page 10 see page 15

Design safety Employee engagement Sustainable and ergonomics product design

see page 18 see page 22 see page 28

Responsible sourcing Circular solutions GRI content index

see page 30 see page 32 see page 38

4 Foreword from the CEO

It gives me great satisfaction to welcome you to Vanderlande’s latest Sustainability Report. This documents our performance with regard to this topic during FY2018, as well as outlines our overall philosophy, through which we will further strengthen our approach. Sustainability is an integral part of our corporate strategy and provides a strong, long-term basis for doing good business with our customers.

In today’s world, the increasing needs of our growing population create more strain on the planet’s natural resources. As a result, raw materials are becoming increasingly limited in availability. However, the rising levels of digitalisation result in smarter responses from the industry, enhance customer experiences and create insights into sustainability issues, as well as provide intelligent solutions to these challenges.

Innovative and fast-growing companies such as Vanderlande must For example, in the airports market, we recently launched FLEET, strive harder than ever to reduce CO2 emissions, help to establish a flexible baggage handling solution that uses autonomous circular-based economies, look after the long-term wellbeing vehicle technology. It makes a bold statement of intent from of its people, and respect the natural capacity of our planet. By Vanderlande to the industry, due to the high level of innovation driving forward with our vision on sustainability, Vanderlande is involved and the fact that we are delivering FLEET ‘as a service’ to displaying its dedication to being a responsible entity within the our customers. In addition, it contributes strongly to our ‘green’ global community. credentials, because FLEET consumes up to 50% less energy than a traditional baggage system. This means that we not only look after our own needs as a business, but also respect our position in the world and understand the At Vanderlande, we not only focus on our economic and ecological impact of our activities. Sustainability is part of environmental impact, but also on our internal processes and Vanderlande’s everyday working practice and, in this way, we can people. We promote a healthy work environment for every further improve the competitive positions of our customers. It is colleague around the world in line with good welfare standards and already a fundamental part of our design processes and means strive to support their personal growth. Through this approach, we that we look at the materials we use to see if they can be recycled. intend to develop the skills and knowledge that are required both now and long into the future. We are inspired by circular economy principles and see it as our responsibility to cooperate with partners, key customers and other In February 2018, we were awarded the highest rating in the third parties to evolve towards circular systems. Vanderlande can category of ‘Manufacturing and Industry’ in the Best Employer achieve positive outcomes by offering business models, such as Survey (The ). This result is based solely on the ‘managed services’ and integrating our activities along the entire personal feedback of our colleagues, which also shows that we value chain. By doing so, we can expand our areas of influence actively allow our colleagues to speak up about any potential and allow our sustainable approach to become even more visible. issues and respond directly to their opinions. Our people can also help us to make a difference and we want to attract highly motivated employees, who can proactively add We are proud of the progress we have made on sustainability, value and align with our strategic goals. and the recent acquisition of Vanderlande by Toyota Industries Corporation (TICO) creates significant opportunities to investigate Sustainability is given a high priority within our organisation and and develop further initiatives together. TICO has a clear vision it is regularly discussed at board level. Our current structure offers on sustainability and displays an active commitment to corporate transparency and visibility, but we are also continuing with our social responsibility. As a result, we expect that the knowledge- efforts to make sustainable thinking more driven from the bottom sharing and cooperation between both organisations will also up. In recent years, it has been satisfying to see sustainability have positive overlaps in this field. become further embedded within our DNA. Today, all of our employees internationally have the power to make a positive Vanderlande has never been more ready to achieve the targets it impact with regard to our ambitions. has set itself on sustainability, and we hope to pass on the benefits to our customers. With the knowledge, skills and enthusiasm of Due to our market-leading position, Vanderlande is in an ideal our employees and partners, we can look forward to achieving an position to assist our customers in implementing their own exciting programme of activities. sustainability strategies, and we can also exert a positive influence on our suppliers to help us achieve this. Our approach Remo Brunschwiler has already yielded some exciting results and I am delighted that President & CEO Vanderlande we have been helping customers across all of our core markets to realise their sustainable ambitions.

> Vanderlande Sustainability Report FY2018 5 Company profile

Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company is also a leading supplier of process automation solutions for warehouses.

Vanderlande’s baggage handling systems move 3.7 billion pieces development. The two companies have a strong strategic match of luggage around the world per year, in other words 10.1 million and the financial strength of Toyota will help Vanderlande to per day. Its systems are active in 600 airports including 13 of continue with its sustainable profitable growth. the world’s top 20. More than 39 million parcels are sorted by its systems every day, which have been installed for the world’s Vanderlande has more than 5,500 employees, all committed to leading parcel companies. In addition, many of the largest global moving its customers’ businesses forward at diverse locations on e-commerce players and distribution firms have confidence in every continent. With a consistently increasing revenue of more Vanderlande’s efficient and reliable solutions. than 1.4 billion euros, it has established a global reputation over the past seven decades as a highly reliable partner for value- The company focuses on the optimisation of its customers’ added logistic process automation. business processes and competitive positions. Through close cooperation, it strives for the improvement of their operational Group structure activities and the expansion of their logistical achievements. Vanderlande Industries Holding B.V. is a limited liability company Vanderlande’s extensive portfolio of integrated solutions – incorporated and domiciled in The Netherlands and is registered innovative systems, intelligent software and life-cycle services – in the Commercial Register of The Netherlands Chamber of results in the realisation of fast, reliable and efficient automation Commerce under no. 16055699. The address of its registered technology. office is Vanderlandelaan 2, . Vanderlande Industries Holding B.V. is a 100% participating interest of Toyota Industries Vanderlande was acquired in 2017 by a successful, strategic Europe AB. partner, Toyota Industries Corporation. The synergies between the two companies exist with: the cross-selling of products and solutions; product innovations, for example with automated guided vehicles (AGVs); and joining forces in research and

Established >, . billion since   EMPLOYEES REVENUE

Global market leader innovative systems intelligent soƒware life-cycle services

> Atlanta Airport † > London Heathrow Airport AIRPORTS > Hong Kong Int. Airport . AIRPORTS INCLUDING million bags per day  OF THE WORLD’S TOP „ > Amsterdam Airport Schiphol

global > Amazon e-commerce > Lidl WAREHOUSING Many of the largest players > Zalando retailers > Asda

> UPS Largest > Deutsche Post DHL  million parcel PARCEL parcels sorted > TNT and postal > FedEx every day companies  > DPD

6 Core and brand values

WE AIM TO BE THE BEST

CONTINUOUSLY LEARN, DEVELOP AND INNOVATE TAKE PERSONAL RESPONSIBILITY

TO MINIMISE OUR FOOTPRINT WORK TOGETHER AS A TEAM

IN A SAFE AND ENGAGING WORKING ENVIRONMENT

Our core values define Vanderlande. If we have adrive to Our brand values are how our customers define their win, we will finish projects ahead of schedule and beat our experience of working with us. competitors. However, we’re always learning to do things every day better. > Reliable: predictability and trustworthiness are paramount – reliable products, technology, service and We care, not only about our own colleagues, but also people about our customers. Creating a safe base is vital in > Together: we enjoy working as a team and aim to safeguarding everyone’s wellbeing, so we can all work in a support our customers in every way positive environment. > Sustainable: we embrace the triple bottom line commitment to people, planet and profit Teamplay is how we work together, how teams are built > Trendsetter: we surprise our customers with innovative and cooperating effectively at all levels. Finally, ownership solutions to enhance their businesses – and in doing is about performing to the highest level and taking so, set the standard responsibility for your actions. > Best customer value: our customer insight and industry expertise allows us to create added value

Vanderlande headquarters in Veghel, The Netherlands

> Vanderlande Sustainability Report FY2018 7 Company locations

A global presence Although its headquarters are located in Veghel, The Netherlands, Vanderlande’s employees are involved in a variety of activities across the globe. To support them, the company utilises a network of strategically placed offices. From these, more than 100 service teams and many other site-based personnel actively support Vanderlande’s customers with system maintenance, logistics management and business improvement processes.

Vanderlande’s core focus remains project-based and it accepts full responsibility for the supply of materials to these projects. In addition, the company is committed to reducing its environmental impact. It proactively seeks ways to lower both its logistics and transportation costs. In addition, it has organised its supply chain as efficiently as possible in response to international growth, and retains three dedicated centres in Europe, North America and Asia.

Vanderlande has also accommodated the significant growth and further > development of its suppliers. For example, it opened an additional Permanent: 875 manufacturing facility in the USA and sees many exciting future innovations Temporary: 2 within the company’s product groups. These include other companies it has > U acquired with a solution-specific focus, such as Vanderlande Beewen and Vanderlande Smatec.

> Mexico In its supply chain, Vanderlande is currently redesigning its processes in order to manage the company’s growth. The aim is to be more flexible and effective in ordering, manufacturing and shipping, as well as executing installations and commissioning on site. By working in a smarter way, Vanderlande’s daily global activities are contributing to its overall efficiency, and progressing its circular economy ambitions. > Colombia

Consolidated legal entities > Chile Vanderlande Industries Holding B.V., Veghel, The Netherlands — Vanderlande Industries B.V.,Veghel,The Netherlands — Vanderlande Industries Contracting B.V., Veghel, The Netherlands — Equipment Supply International B.V., Veghel, The Netherlands — Vanderlande Beewen Verwaltungs G.m.b.H., Siegen, — Vanderlande Beewen G.m.b.H. & Co., KG, Siegen, Germany — Vanderlande Industries Holding Deutschland Verwaltungs G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries Holding Deutschland G.m.b.H. & Co., KG, Mönchengladbach, Germany — Vanderlande Industries G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries G.m.b.H., Dortmund, Germany — Vanderlande Industries Ltd., Hampton—in—Arden, United Kingdom — Vanderlande Industries Espana S.A. Sociedad Unipersonal, Barcelona, — Vanderlande Industries Santpedor S.L.U., Santpedor, Spain — Vanderlande Industries Logistics Automated Systems (Shanghai) Co., Ltd., Shanghai, — Vanderlande Industries Hong Kong Ltd., Hongkong, China — Vanderlande Industries Private Ltd., New Delhi, — Vanderlande Industries Software Private Ltd, Pune, India — Vanderlande Industries Inc., Marietta GA, USA — Vanderlande Industries BHS, LLC, Marietta GA, USA — Vanderlande Industries Manufacturing USA Inc., Calhoun GA, USA — Vanderlande Industries Singapore Pte, Ltd, Singapore, Singapore — Vanderlande Industries Canada Inc., Vancouver, Canada — Vanderlande Industries S DE RL DE CV Jalisco, Ciudad Granja, Mexico — Libyan Airport Technology Joint Venture Company, Vanderlande offices Tripoli, Libya — Vanderlande Industries OOO (LLC), Moscow, Russia — Vanderlande Industries LLC, Dubai, Dubai — Vanderlande Industries Do Brasil Comercializacao, Vanderlande supply chain centres Importacao e Instalacao de Sistemas de Bagagem Limitada, Sao Paulo, Brasil — Vanderlande Industries Australia Pty, Ltd, Sydney, Australia — Vanderlande Industries Vanderlande site-based teams (Thailand) , Ltd, Bangkok, Thailand — Optosecurity Inc., Quebec City, Canada — Optosecurity Corp., Delaware, USA — Optosecurity B.V., Amsterdam, The Netherlands. Vanderlande has an investment in Smart Robotics (The Netherlands), which is not included in the consolidation.

8 > Veghel, The Netherlands (Headquarters)

> Norway Permanent: 3,234 > Germany Temporary: 349 > Russia

> United Kingdom > Poland

> > Italy Permanent: 425 > Spain > Switzerland Permanent: 144 Temporary: 191 > South Korea > Temporary: 56 USA > United Arab Emirates > Shanghai

> Hong Kong > Oman

> India > Saudi Arabia > Malaysia > Singapore

Permanent: 106 Permanent: 117 Temporary: 2 > Brazil

> Australia > Argentina

Total employees 5,501 Male (Headcount - 31 March 2018) Permanent 4,187 Permanent: 4,901 Temporary 472 Total 4,659 Temporary: 600 Female Female 842 Permanent 714 Full time 645 Temporary 128 Part time 197 Total 842 Male 4,659 Full time 4,376 Part time 283

> Vanderlande Sustainability Report FY2018 9 Sustainable ambition

With the continuous growth and increasing life Vanderlande cares about how its business activities impact on the expectancy of the global population and the environment and the part it plays in resource availability, waste, energy use and climate change. The company is also dedicated rise in average wealth and social opportunities to reducing its energy use, and continuously engages with its of developing nations, natural resource use, customers on a range of initiatives to achieve this. escalating greenhouse gas levels and equality Establishing a circular-based economy issues are becoming a global challenge. Everyone This driver requires governments, businesses and other is required to act responsibly and contribute to organisations to use less scarce raw materials for economic effective solutions. growth. By accelerating the circular economy, outcomes including a reduction in raw material resource use, waste and emissions will help to close energy and material loops, and optimise the use of Vanderlande believes that by working hard today, in joint effort resources. with its employees, customers, suppliers and other stakeholders, it can make a difference for its future and make the world of Vanderlande can contribute to establishing a circular-based tomorrow a better place. By establishing – and working towards economy through its corporate governance, which enables – the company’s long-term ambitions on sustainability, it can proactive cooperation with a multitude of partners both locally continuously drive and challenge itself to perform better every day and globally. The company is also committed to developing based on the following three key global drivers: circular services and products and supporting initiatives that help to accelerate these. Establishing a healthy and fair society This is a fundamental need that drives sustainable development. The three drivers translate to Vanderlande’s pillars of sustainability Clean water and air, and healthy and available food sources are – people, planet and profit – which have been rooted to the core the most primary needs for the world’s population. of the company’s strategy for several years.

The basic UN sustainable development goals aim to eradicate The company is able to share its knowledge and expertise poverty, end hunger, and to ensure clean water and sanitation with partners throughout the entire value chain. By doing for everyone. These goals also go further to build on the need so, sustainability will deliver a range of benefits, broaden for social and economic development that supports the creation Vanderlande’s horizons and create opportunities to respond to a of an inclusive, healthy and fair society, and proactive and rapidly changing world. responsible governance. Vanderlande’s approach incorporates these principles. However, its sustainable ambitions cannot be achieved in isolation. To succeed, Vanderlande must work closely with all A safe base is at the heart of Vanderlande’s business and it believes stakeholders to realise a sustainable business and a better world that the highest levels of health and safety are fundamental. for all communities. Through active engagement and training, the company also develops a working environment in which its employees can Vanderlande believes that embracing sustainability and making continually learn and develop, while Vanderlande believes that this an integral part of its daily activities is the only way to have a strong leadership is the key for a successful and sustainable strong profitable business, to contribute to the protection of the future. planet and to take care of its people. Respecting the natural capacity of our planet The company holds itself accountable for the effect that its This relates to the long-term ability of our ecosystems to maintain activities and decisions have on people and the environment. themselves. It is becoming increasingly evident that the world The company’s ambition is to implement sustainable solutions climate is changing, resulting in an increased risk of floods, worldwide and it considers the processes and work involved in droughts and other natural phenomena that are reported to be achieving these to be both rewarding and worthwhile. strongly related to global warming. Although there are many challenges ahead, Vanderlande is making With the energy transition in progress, steps are being taken to considerable progress in its performance on sustainability and has establish a low-carbon economy. It is important to support the set itself clear targets. With the knowledge, skills and enthusiasm UNFCCC Paris Climate Agreement, which world economies have of employees and partners, it will succeed in achieving significant signed up to, with the outcome of driving down greenhouse gas results. emissions. This currently provides the most pressing example of the need for a collaborative approach towards protecting our planet. “Vanderlande cares about how its business activities impact on the environment and the part it plays in resource availability, waste, energy use and climate change.”

10 Corporate Circular governance solutions

Health and Responsible safety at work sourcing Energy use Design safety products and systems and ergonomics Establishing a circular-based economy

Employee development and training Sustainable product design

Employee engagement

Establishing a healthy and fair society

Respecting the natural capacity of our planet

> Vanderlande Sustainability Report FY2018 11 Stakeholder inclusiveness

Stakeholders Employees Customers As Vanderlande continues to drive its business forward in the pursuit of sustainable development, it actively encourages its stakeholders to join forces in the realisation of common goals. This is because the focus on sustainable development and the impact of business operations are not just about what Vanderlande does in isolation. It involves the entire value chain and the company understands that it is only one of the links in this process.

Vanderlande is confident that through open, transparent and systematic engagement with its stakeholders (including employees, customers, suppliers, local communities, government organisations and industry bodies) it can jointly lead the way. By obtaining feedback from all stakeholders, the company can continuously review and update its strategy, policies and general conduct on sustainability.

To achieve this, Vanderlande regularly connects with its stakeholders via customer engagement, key customer focus programmes, conferences and supplier audits, as well as cooperating on industry initiatives and conducting employee surveys. The key topics raised from engagement relate to a wide Suppliers Other stakeholders range of subjects. As an example, the action to investigate the needs of the company’s more mature employees was developed from the extensive employee surveys. In addition, the internal safety climate surveys led to behavioural programmes being developed and rolled out on a global basis.

Vanderlande has also experienced an increasing demand for the energy management of its systems by engaging with customers. For this report, Vanderlande has identified – and engaged with – internal sustainability representatives by assessing factors such as their expertise, enthusiasm, location and leadership skills.

By exploring the topic of sustainability together, Vanderlande can have a greater impact and create more opportunities for tangible “Vanderlande actively encourages its benefits relating to the environment – both now and in the future. stakeholders to join forces in the realisation of common goals.”

12 Stakeholder engagement (employees) Materiality assessment

Material matrix In sustainability reporting, ‘materiality’ is the principle that The topics in the four upper right-hand sections fall above the determines which topics are sufficiently important to report on. materiality threshold for the purpose of this report and are deemed Through positive stakeholder engagement, and by assessing ‘material’. Those mentioned below the materiality threshold are their input, via a workshop based on GRI reporting principles a considered ‘non-material’. It is important to note that some non- materiality assessment is undertaken. This is used to gather material topics can be mentioned in this report if an overlap or insights into the relative importance of specific economic, other instance of contextual relevance occurs. environmental and social impacts, and highlight where Vanderlande can have the most significant impact. Working with the materiality matrix enables Vanderlande to focus on the areas in which it can have the greatest positive impact, The company’s previous materiality assessment was carried out in minimise negative impacts, and identify emerging issues and new the process of writing its second Sustainability Report (FY2015). leadership opportunities. Targets have been set regarding each of For the FY2018 report, Vanderlande has updated its materiality the materiality topics deemed important by its stakeholders. assessments by reviewing the sustainability issues it faces afresh, reconfirming its long-standing focus areas, and clarifying and Further information about the issues covered by the materiality shaping its strategy. matrix, and corresponding GRI disclosures, can be found in the GRI Content Index (page 38). The materiality matrix maps out topics by their relative importance to sustainable development and Vanderlande’s business success. All topics are categorised based on the three pillars of sustainability – people, planet and profit.

Materiality Assessment Vanderlande FY2018

Circular solutions

Energy use (products and systems) Energy use (manufacturing and Employee development training shipping) Equal opportunity and diversity Health and safety at work Waste management Design safety and ergonomics Employee engagement Product packaging Corporate governance Responsible sourcing Sustainable product design

Quality, reliability and performance Energy use (facilities and Customer-driven solutions and Water management business travel) IT security engagement Supporting local communities Transparancy, accountability Bribery, corruption and business reporting ethics Legislation MINOR MEDIUM HIGH MAJOR Significance of economic, environmental and social impact to sustainable development sustainable to impact social and environmental economic, of Significance

MINOR MEDIUM HIGH MAJOR

Relative importance to Vanderlande business success

People Planet Profit > Vanderlande Sustainability Report FY2018 13 Material topics

14 Health and safety at work

Upholding the highest standards of health and safety is The company’s operations involve a number of high-risk activities, fundamental to all of Vanderlande’s stakeholders, whether it be which – if not strictly controlled – create the potential for fatal in the initial design phase or during daily work activities. Creating or life-changing injuries. In addition, activities can impact on a proactive health and safety culture drives the company’s the health of Vanderlande’s employees in regards to shift work, reputation as a leading international employer and supplier. ergonomics, hazardous substances and business travel.

As Vanderlande continues to grow, it is welcoming many new No matter where it does business, Vanderlande’s expectation is recruits across the globe. Every employee expects – and deserves that every employee can return home safely at the end of every – to work in a safe environment that not only protects them from day. This is non-negotiable and the promotion of a proactive the risk of an accident or ill health, but also promotes good mental approach to health and safety provides the foundation on which health and a healthy lifestyle. Vanderlande’s care for the whole of its approach is developed. its workforce is driven by a basic respect for human rights and the establishment of a fair and equitable society. The boundary of Vanderlande’s health and safety activities are driven by the scope of its global operations. This encompasses all Workforce engagement, active involvement and the promotion of locations around the world, and includes work on Vanderlande’s the right safety behaviours are fundamental to achieving a strong own and third-party sites. As an international company, it health and safety culture. This also ensures that employees are appreciates that cultural maturity and standards can vary, and are committed to promoting high standards and making continual influenced by local legislation, customers, contractors and other improvements. Employee safety climate surveys are utilised in parties, as well as the company’s own teams. the business to identify potential areas for development and benchmarking is also undertaken. It is important to influence a wide range of stakeholders in respect to safety, as the poor performance of one could have a negative Visible safety campaigns are designed to initiate conversations effect on others. Vanderlande has the ability to have a positive regarding safety and communicate coherent safety messages. influence on many of its stakeholders, including its supply chain Vanderlande’s commitment to its people means not only investing partners, and the actions of its employees and customers. As such, in incident prevention, but also looking at long-term ergonomic being a proactive partner can really help to control the outcomes. and social challenges. There is an increasing focus on issues including mental health, fitness and overall wellbeing, which complements Vanderlande’s health and safety activities.

Safety at work campaign

> Vanderlande Sustainability Report FY2018 15 A significant proportion of Vanderlande’s business takes place Health and safety is the responsibility of Vanderlande’s line at customer locations, where it delivers integrated systems and management and is supported by dedicated professionals who services. Therefore, its responsibilities extend to ensuring that provide strategic direction and specialist advice. Vanderlande’s there is effective coordination of health and safety risks on each goal is to promote high standards within all of its business site. This mainly involves the company’s customers, contractors activities in order to eliminate accidents and ill health. This and subcontractors, but can also extend to interactions with is driven through commitment at the top of the organisation visitors, the general public and other parties. and means that everyone has a clear understanding of what is expected of them. In addition, decisions made during the design process (see ‘Design, safety and ergonomics’ on page 18) are extremely important in The company recognises the importance of its managers in terms of their influence on the safety of teams interfacing with implementing high standards. They are responsible for leading a system. As a result, these decisions are integrated through by example and providing adequate resources for the activities the identification and communication of residual risks in the under their control. Influencing the behaviours of Vanderlande’s engineering design phase. managers supports a proactive approach to the execution of critical safety activities. This minimises the risk of accidents, and Vanderlande’s approach is aimed at developing leaders who maintains a strong health and safety culture. can create and contribute to a health and safety culture that delivers high standards and minimises risk. A ‘safe base’ is one Vanderlande’s behavioural safety programme focuses on of Vanderlande’s core values and provides a strong foundation for developing the skills of its senior managers to actively engage its teams. These values are communicated to new recruits during with teams on an ongoing basis and deal with any issues raised. their induction and reviewed as part of their ongoing appraisals. In addition, user-friendly tooling and documentation has been developed in conjunction with operational teams to ensure that it Vanderlande’s philosophy on safety is best summarised by the provides a practical and safe way of working. saying, ‘if it can’t be done safely, then don’t do it’. The company’s CEO leads this through commitments in the corporate health and Until recently, Vanderlande’s approach to health and safety has safety policy, which summarises the importance of safety within been decentralised. In 2017, the company recruited a Global the business – ‘there is no job so important that it may be done Head of HSE (health, safety and the environment) to lead its in an unsafe manner’. This creates a strong and clear message international approach, build a strong network of HSE managers, to employees, contractors and stakeholders that safety is of the share information and best practices, align standards, and drive utmost importance. forward with improvement initiatives.

Safety training

16 Targets

Health and safety at work FY2018 FY2019 FY2020 FY2021 Enhance global HSE and sustainability organisation and roll out strategy √ √ Improve central collection of H&S data √ √ Organise safety climate survey √ √ √ √ Develop and roll-out H&S database √ √ Implement global behavioural safety roadshow √ √ Implement working at height best practice programme √ √ Implement moving machinery best practice programme √ √ Implement electrical safety best practice programme √

Global improvement programmes are focused on safety-critical If management/worker health and safety committees are in place, activities and assisting local teams with tooling and training then this is usually at a site or business unit level. The meetings packages to support their delivery. At a local level, HSE resources are attended by elected or voluntary representatives from the provide support to teams by promoting a positive health and safety workforce, as well as local management and safety team members. culture, planning the implementation of safety requirements, Minutes are taken to ensure that the action points and decisions communicating legal requirements and training needs, and are not only recorded, but also pursued. Due to the structure of the managing incidents. business and its networks, it is currently difficult to identify the exact percentage of workers represented in formal committees, Adhering to legislation is a basic deliverable and this is however this figure has been calculated at approximately 60% enhanced through the implementation of safety toolkits and based on a high level review of teams. training. Vanderlande has been recognised by external parties and customers for delivering high standards in this area. The If there are no formal management/worker meetings in place, company’s safety management systems are based on OHSAS informal gatherings and direct engagement with workers fulfil 18001 and, in time, this will be updated to the new ISO45001 the same purpose. This ensures that all workers have a voice in standard, which has been introduced in 2018. influencing health and safety issues.

Vanderlande is aware that the continued promotion of a positive Vanderlande’s primary concern is for the whole of its workforce, health and safety culture, effective planning, clear communication whatever role they have and in whatever location they work. As structures and the ability to respond quickly to changing situations a responsible organisation, it acknowledges that the actions are critical. Through effective coordination and engagement at of every employee reflect its commitment to health and safety. all levels internally and externally, a solid network structure is The company actively monitors its approach through quality created that can adapt to changing situations and guarantees that management systems, individual representatives and annual everyone continues to stay safe. reporting.

Making the safety management system work effectively involves the need to manage the interfaces with Vanderlande’s stakeholders and promote constructive dialogue with all parties, including customers, subcontractors, employees and other representatives. This ensures that actions are aligned with stakeholder requirements, are appropriate to the activities being undertaken and are continually reviewed.

Vanderlande’s effective engagement programme is important to ensure the health and safety processes, and control measures address the risks and concerns faced by individual workers and teams. The method of engagement will depend on cultural and regional factors, and will include the country, site where the work is taking place and legislative requirements. There is no internal corporate requirement to hold formal health and safety committee “Vanderlande’s commitment to its people meetings, however all locations are required to ensure that this means not only investing in incident is effectively managed to support Vanderlande’s core value of having a safe base. prevention, but also looking at long-term ergonomic and social challenges.”

> Vanderlande Sustainability Report FY2018 17 Design safety and ergonomics

The company’s material handling solutions impact upon the Vanderlande’s approach is aimed at developing products and health and safety of those that interact with them during their solutions that integrate life-cycle safety into the design. Within entire life cycle, which can last over 20 years. Working with its R&D department, a safety competence team is responsible for safe and ergonomic products and systems touches the core of staying up to date with international regulations and certification sustainable business and applies to both Vanderlande’s and its standards. It also creates awareness, develops and rolls out customers’ teams. training programmes, and constantly challenges the safety level of Vanderlande’s systems. Design has a significant impact across the value chain of Vanderlande’s products. Manufacturing, assembly, installation, As an expert in its field, Vanderlande has a responsibility to act in commissioning, operation, maintenance, modifications and the right way and influence global safety standards. With this in dismantling all need to be performed in a safe and responsible mind, a number of the company’s internal design safety experts way. Various legislation and standards apply to design safety and are involved with international standarisation committees, such must be taken into account. as technical committee TC148-WG2 with a focus on redrafting EN 619. Supplying safe solutions is a primary expectation of Vanderlande, its customers and other stakeholders. High standards of health Safety is of paramount importance within the Vanderlande and safety are fundamental, critical to the company’s success, process map for the development of products. In accordance with and have a social impact on the people working with its systems. legal requirements, various review sessions, failure mode effect analyses and risk assessments are integrated into the stage gate Long-term ergonomic and health effects can be influenced by model. This means that residual risks are made available for interfaces with displays and other human factors. Vanderlande’s Vanderlande’s project engineers, who take the focus of safety solutions inherently contain moving parts, heavy items and can from a product to system level. often involve the need to work at height. Moreover, the increased levels of automation, with higher speeds and capacities, result in Integrated design safety is the responsibility of the company’s increasingly complex systems and a higher potential of injury. It is various engineering departments across the globe. To comply with important to manage health and safety issues in the design phase legal and the company’s high standards, performing a health, in order to minimise risk during operations and maintenance. safety and risk assessment is therefore part of the aforementioned process and applies to every product the company designs.

STACK@EASE ergonomic baggage handling device

18 Targets

Design safety and ergonomics FY2018 FY2019 FY2020 FY2021 Create R&D safety design competence team √ Centralise the user interface and ergonomics design competence √ Train one certified machine safety expert √ Implement design safety process review √ Redesign the user experience of two major software products √ Make 80% of sales and technical organisation aware of the added value of √ user-centered design Have user experience design embedded in the organisation √

Delivering a safe system for customers does not stop at the design Vanderlande is investing heavily in smart robotics and it phase. It follows a chain within Vanderlande and encompasses showcased its smart item robotics (SIR) technology at the LogiMAT site implementation and inspection, as well as documentation exhibition in 2017. SIR focuses on the robotised handling of single and certification, which helps to ensure the creation of a safe items during order picking and infeed loading. It is an effective working environment. and low-risk way to gradually introduce robotic technology into an active environment, while retaining high levels of scalability and As a fast-growing company in a rapidly changing market, flexibility. Vanderlande needs to adapt and improve, and continuously learn and understand the world of its customers, and factor in user- Robotising tasks reduces the physical effort required by human centric designs and ergonomic evaluation assessments. Over operators, but increases the cognitive pressure they face. the past decade, it has delivered highly innovative solutions in Supervisory tasks will become more important, resulting in higher line with this approach, including PICK@EASE and STACK@EASE. levels of human-to-device interaction. Systems should, therefore, These have significantly decreased physical stress for employees be optimally designed for use with people – ‘cognitive ergonomics’. during the processes of item picking and baggage handling. Through increased computer intelligence, Vanderlande’s systems can help its customers to make more informed choices, as well as The immediate future also shows that some developments link seamlessly to the company’s global service team. in IT are booming, such as apps on mobile devices, artificial intelligence and big data. By considering the design of aesthetic With its market-leading position and customer base around the and intuitive applications for the user, while designing smart globe, Vanderlande senses an opportunity to optimise working technological solutions, the improvement of human performance conditions for a large number of workers. Alongside the obvious and equipment goes hand in hand. ergonomic factors, the company intends to work closely with customers to optimise other aspects, including environmental Vanderlande also has a User Experience department that designs conditions, as well as behavioural and organisational influences. human-system interactions, and therefore assesses such human Vanderlande’s annual reporting structure, management systems, factors as cognitive and physical ergonomics. It ensures that and dedicated internal and external representatives, also ensure workplaces and user interfaces are not only designed around that it can proactively evaluate its associated activities. business and technical requirements, but also the needs, capabilities and limitations of human operators.

Proven analysis and design methods are used, such as those provided in international standards, for example: ISO 9241, Ergonomics of Human-system Interaction; and EN 1005, Safety of Machinery – Human Physical Performance. The focus on usable software and ergonomic solutions guarantees that everyone who interacts with Vanderlande systems is protected from long-term health issues.

In today’s climate, the scarcity of manual labour and high market demands are increasing the pressure on the distribution “As an expert in its field, Vanderlande has performance of material handling systems. Vanderlande believes that the next generation of ergonomic solutions will also reflect a responsibility to act in the right way and a strong human-machine interface, in which repetitive tasks influence global safety standards.” currently performed by a human operator can be assisted or fully taken over by robots.

> Vanderlande Sustainability Report FY2018 19 Employee development and training

Skilled and dedicated employees are a pivotal factor behind Learning through Vanderlande aligns with the ‘70-20-10’ model. Vanderlande’s success, and at the centre of its ‘How to Win’ This takes a formal approach through structured programmes strategy. The company wants its employees to have confidence in and courses to create an initial knowledge base. The next stage their abilities and to feel passionate about their work, because involves social learning via networks, sharing and coaching to long-term, personal and professional development results in provide insights into how to implement this basic knowledge, and high levels of satisfaction, motivation and engagement. Enabling then experiential learning. Vanderlande is constantly challenged people to develop and expand their capabilities will also have a by its customers to create better products, services and systems positive influence on the company’s future growth. to improve their competitiveness. As a result, there are numerous opportunities for development and training on offer. The company believes in the added value – from both a personal and business perspective – of continuous learning. However, Vanderlande’s HR team also plays an important role in having access to a high standard of education is not equally coordinating the training needs of employees, and facilitating available to all people. For this reason, Vanderlande is keen to learning and development activities at a local level. The concept support the growth of employees at every level globally, which will of the Vanderlande Academy is currently being rolled out to the also help in retaining knowledgeable and talented individuals. company’s major office locations in the USA, Spain, India and China, where its HR teams can create a strong and sustainable Technology is changing and evolving more rapidly than ever. platform for learning. It will also provide easier access to a growing Vanderlande needs to serve its customers in the most effective international pool of talented employees. way and create loyalty to achieve sustainable profitable growth. The company’s employees develop the path to new solutions “In a world of technology, a belief in people” and satisfied customers, however, they need the right knowledge in order to meet the increasing demand for logistic process automation. This applies to both new and more senior employees. A global approach to training is the key to achieving Vanderlande’s preferred one way of working across all of its activities and to Employee development and training within Vanderlande focuses support its growing customer base. However, having the requisite on their current competency, which is based on three pillars: skills is not enough and the application of knowledge is equally knowledge, skills and attitude. Within the HR department, important. The company works with standard processes across the Vanderlande Academy plays an important role in helping the world and the next step is to roll out learning modules on how employees to reach their potential. Its vision is to meet the to apply these. This will further improve Vanderlande’s flexibility requirements of its ‘internal’ customers by providing the and international workload levelling. necessary training programmes and closely mirroring any business developments. This is reflected in its approach – ‘short time to In addition, ‘train-the-trainer’ programmes facilitate growth in knowledge, learn effectively, anytime and anywhere’. local and regional competences. The materials used in these courses are standardised and centrally maintained by the Due to continued growth, a new Vanderlande Academy (certified Academy. Local aspects, such as language courses and specific BREEAM Excellent) building is under construction at the safety standards, are organised by individual office locations. company’s headquarters in The Netherlands. This is scheduled to Vanderlande’s aim is to create the necessary tools and materials open by the end of 2018. The building will house the company’s to keep all employees skilled, motivated and informed throughout growing Academy team of consultants and trainers, and highlights their career – wherever they are located. Vanderlande’s dedication to the development of its employees.

Employee training

20 Targets

Employee development and training FY2018 FY2019 FY2020 FY2021 Establish dedicated learning consultant position to ‘train the trainers’ √ Establish network of specialist parties for training material content √ Roll-out global leadership training √ √ √ √ Build BREEAM excellent academy training centre at HQ √ Ensure global coverage of critical courses √ Steering committee to determine global strategic priority on required competences √ Select new learning management systems tooling √ Continue centralising development and training information, √ covering 80% of employees

Vanderlande faces various challenges, and its activities often Overall, Vanderlande’s approach is forward thinking with the require skills and knowledge that are not within the scope of intention of developing the skills and knowledge that are required educational establishments and cannot be transferred easily. both now and in the future. Internally, the company measures its The increasing speed of developing advanced technology drives progress according to the levels of employee satisfaction. Every Vanderlande’s business and continuous learning is vital. The year, Vanderlande takes part – and performs favourably – in the company’s skilled and dedicated people can become experts ‘best employer’ survey (see ‘Employee engagement’ on page 22). in their fields, as well as improving their ‘soft skills’. Due to the For additional transparency, it also believes that highlighting the company’s fast growth, Vanderlande’s experts can become average number of hours per individual, per annum represents a mentors, teachers and leaders for the next generation of fair way of demonstrating its commitment to employees. employees. At the close of FY2018, Vanderlande had 5,501 employees. The company’s approach to training and development also The company is in the process of internationally aligning the focuses on prospective employees. The global recruitment market registration of training hours. For 3,748 employees in four is challenging in terms of accessing people with the right attitude locations (The Netherlands, United States, India and China), and skills, which is why Vanderlande actively connects with information on training hours is collected centrally. Information schools to promote technical professions from an elementary level from other locations is available, but Vanderlande has decided through to university. It organises guided tours and participates to disclose this when it is also collected centrally. For FY2019, in networks that promote relevant skill sets. It also arranges Vanderlande wants to increase central data collection on seminars for students and an annual event to open up the male- employee development and training to 80%. Data represents dominated technical world to women. FY2018, a 15-month period.

Amount of training hours

Higher management Middle management Other

29.6 27.9 17.1 36.9 20.5 69.5

Male Female Male Female Male Female

Centrally registered Hours of training: Overall average: staff trained: 3,748 76,994 20.5 hours

> Vanderlande Sustainability Report FY2018 21 Employee engagement

Employee engagement is not easily defined. Dedication, focus, Employee engagement is evident across Vanderlande’s global involvement and the drive to go the extra mile are all clear community. The company is involved with each individual through expressions of motivated employees. However, they are not solely the employer-employee relationship. For prospective employees, created by offering fair compensation and benefits. Other needs Vanderlande reaches out via marketing campaigns and other must be met to create a positive working environment. connections. The company believes that strong leadership is the key to engaging its employees. Managers must understand the Vanderlande wants to attract employees into its growing business personal needs, motivations and ambitions of each individual in who proactively add value and align with the company’s strategic their team to inspire them to achieve optimal work results. goals. The global recruitment market is challenging in terms of accessing individuals with the right talent, skills and levels of Vanderlande hopes to increase the levels of engagement from its competence. Even after recruitment, retaining and developing employees by promoting and improving the interpersonal skills employees is crucial in order to keep them engaged, and help of its leaders and focusing on creating and maintaining an open them to add value to the business. and respectful working environment. It is necessary to act from the top-down to create a long-term healthy workspace. This will Vanderlande has an extensive global workforce, and every result in an environment in which everyone feels comfortable and employee has different needs relating to their personal valued, as well as confident that their opinions can be shared. circumstances, culture and expectations. To keep the right people, the company needs to focus on both individual needs Vanderlande’s recruitment department plays an important role in and the interconnectivity within and between teams to maintain maintaining its culture and values. Throughout the recruitment a positive atmosphere. Vanderlande’s business is changing, and process, it ensures that the people it hires match the company’s its employees face ever-increasing external societal demands and core values. A ‘drive to win’, with a sense of ‘team play’ and pressure, which can create turmoil, uncertainty and stress. ‘ownership’ are essential drivers for Vanderlande’s success.

Town Hall meeting in Veghel

22 Level of employee engagement at Vanderlande (Veghel, The Netherlands) 70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% 2013 2014 2015 2016 2017 Engaged % Industry average %

Selecting the right employees, and making them feel at home Vanderlande’s activities, specific local cultures and customs are from the start of their careers, is something the company has a actively recognised and encouraged. strong focus on. There is a small percentage of Vanderlande’s workforce (below In previous years, Vanderlande’s efforts to integrate new 10%) who fall under collective bargaining agreements on an employees into the organisation have increased significantly. industry level. However, applying or following this type of New employee training programmes, e-learning modules, ‘buddy’ agreement is not a standard way of working for the company. systems, company tours and onboarding classes are now a vital part of the way in which it supports new employees and helps to Vanderlande strives to be a good employer, remain competitive familiarise them with the company. and attract the right employees to add value to the business. The terms and conditions of employment meet and/or exceed Vanderlande utilises both central and decentral governance. the legislative standards of the countries it operates in. On an On the one hand, it relies on one way of working and central organisational level, the company follows the Hay job evaluation knowledge building. On the other, personal entrepreneurship is systems for all employees. These include a standard HR cycle an important driver. In addition, due to the international scope of covering such aspects as appraisals, pay reviews and the setting of targets.

Shanghai (China) The 2017 team outing to Shanghai was a huge success. Participants were randomly assigned to different groups and challenged to a series of ‘games’. This helped to increase cohesion between the team members and establish better lines of communication and trust between departments. Overall, it was a great step forward in building trust and inter-departmental relations.

> Vanderlande Sustainability Report FY2018 23 The backbone of the HR organisation is created via standard human The results of Vanderlande’s FY2018 employee satisfaction capital tooling and processes. These are centrally investigated survey highlighted that – at its headquarters in Veghel – 55% and tested before being internationally rolled out. In this way, of participants were ‘engaged’. The company is incredibly Vanderlande can create equal standards and opportunities for all proud of this result, which is significantly higher than the global of its employees. industry figure of 37%. Similar surveys have been performed across Vanderlande’s various locations, and in FY2020, a global In FY2018, the roll-out of Vanderlande’s new human capital employee satisfaction survey will also be carried out. The results management tool Workday was completed. All HR employees will be published in the next Sustainability Report. now work in a standard way via one tool. Appraisals, salary reviews and requests for leave are now processed in a uniform Vanderlande experienced some fluctuations in the engagement way globally. Workday also allows Vanderlande to gain valuable levels of its employees due to certain other factors. These insights regarding its employees worldwide, such as their role in include its rapid growth and new ownership by Toyota Industries the organisation, and their capabilities and aspirations. Corporation, as well as process, cultural and societal changes. Despite being higher than the industry average in terms of staff Vanderlande’s workforce is maturing alongside the company. satisfaction, Vanderlande believes that it is essential for long- Everyone celebrates together when an employee reaches a term sustainability to further increase the connectivity between milestone anniversary, and every year this list gets longer. This its employees. maturing workforce will be an important influence over the coming years. For example, research focusing on site-based service teams has highlighted a point of attention relating to night shifts, which will be addressed in FY2019 and FY2020.

Site visit involving younger employees

24 Targets

Employee engagement FY2018 FY2019 FY2020 FY2021 Recruit employee engagement (HR) officer (UK) √ Employee engagement survey The Netherlands √ √ √ √ Roll out global leadership course √ √ √ √ Deploy activities relating to mature workforce in order to keep them fit for work and √ increase engagement levels Develop and roll-out employee engagement survey for global customer centres √ √ Keep employee engagement level (The Netherlands) above FY2018 level √ √ √

The company strives to create an engaging environment, in their horizons, maximise their potentional, enjoy job mobility, which professional and personal growth go hand in hand. By and undertake personal development programmes, as well as embracing ways for its employees to grow, everyone can share in participate in activities during and after work hours. Vanderlande’s success. Engaging younger employees Vanderlande aims for all employees to broaden their horizons, and In the beginning of 2015, Vanderlande launched an internal to maximise their potential via challenging projects, internal job organisation whose aim is to help the company’s younger mobility, personal development and other activities during and employees to extend and strengthen their networks by bringing after work hours. As such,the company supports team-building them into contact with other like-minded employees. In experiences on both international and local levels. Recent addition, it has been designed to stimulate cross-departmental examples have included the team outing in Shanghai (China), the knowledge-sharing, and personal and professional development. Sydney Run festival (Australia) and the Cursa de la Dona (Spain), This is achieved via a ‘buddy’ system, and through various which is Europe’s largest female sports event. activities such as workshops, lectures, case studies and visits to external companies. For Vanderlande’s employees, opportunities for further engagement are prevalent everywhere. These may arise from a customer that sets ambitious targets, colleagues, or an energetic and respected manager who constanly inspires those around “Vanderlande strives to create an engaging them. Vanderlande wants to enable all employees to broaden environment, in which professional and personal growth go hand in hand.”

Barcelona (Spain) Sydney (Australia) Cursa de la Dona is Europe’s largest female sports event. Eight In 2017, colleagues from the Vanderlande Sydney office cities in Spain all enjoy taking part in popular athletic pursuits, participated in the Sydney Run festival. More staff are joining as well as showing solidarity. In 2017, Vanderlande colleagues every year. Great fun! participated in this unique event and enjoyed the experience!

> Vanderlande Sustainability Report FY2018 25 Energy use (products and systems)

Respecting the natural capacity of the planet is one of The growing demand for quick delivery times across the world, Vanderlande’s three main drivers. It is imperative to support the increasing cost of human labour and expectation for high service UNFCCC Paris Climate Agreement, which has the central aim of levels is increasing the demand for automated material handling strengthening the global response to the threat of climate change. systems. Better insights into energy use will create opportunities The intention of the agreement is driving down the emission to become energy predictive, and help to increase the efficiency of greenhouse gases, and create transparent and supportive within the logistics network. frameworks. Vanderlande wants to support its customers in meeting their Emissions cause a global challenge and generally arise at the sustainability commitments. Energy measurements have been source of the power production. However, the consequences of performed at various customer sites for decades, and a more these impacts do not necessarily occur at the production site structured approach within Vanderlande’s products and systems itself. Users, such as governments and other companies, face has recently been implemented with this in mind. The company the ongoing risk of using energy, for example taxation on carbon focuses on the energy use of its products that have been emissions, which can lead to significant additional costs. developed in-house, and it is making steps to compare its systems on a solution level, where its influence is the largest. As a result of climate change commitments, some countries are creating legislation that drives down the use of energy and During the development of the BLUEVEYOR, Cradle-to-Cradle encourages the production of renewable alternatives. To prevent life-cycle assessments were performed, which generated valuable the further build-up of non-renewable energy supply capacity, insights into energy use. Across an expected 15-year life cycle, the innovative solutions need to be implemented in order to reduce impacts generated from the ‘use phase’ were 85%. This means energy use, as well as focus on local renewable energy supplies. that these are far greater than the impacts caused by, for example, the extraction of raw materials for manufacturing and the shipping The company’s stakeholders already recognise the influence of of equipment. Vanderlande in the design and implementation of products and systems, which enables it to strongly impact on the use of energy The largest contributor by far within the ‘use phase’ relates to at customer sites. the energy consumption of the equipment. This input and other detailed results were used to improve the design of Vanderlande’s The energy use of Vanderlande’s systems has a significant standard products, as well as its predictive calculation models. influence on the life-cycle impact of its products, ranging from The company’s software is also used to optimise the electrical mechanical equipment and controls, through to software and layout and grid connections at future customer sites. hardware. Other challenges must also be addressed.

FLEET

26 Targets

Energy use (products and systems) FY2018 FY2019 FY2020 FY2021 Pilot energy monitoring software at first customer site √ Publish ECoDeMISE report on energy consumption determination methods √ Promote alliances with customers to create joint initiatives √ √ √ √ Roll-out energy monitoring software at five customer sites √ Review and consolidate energy-related demands of key customers √ Improve and validate predictive energy modelling software √ Sell five energy reduction consultancy projects per region √ Set energy reduction objectives for products and systems √ √

Vanderlande expects more energy-related regulations to enter the is aiming to increase its business intelligence capabilities and material handling industry in the coming years. For this reason, it move towards a more predictive approach. In support of this, participated in ECoDeMISE, which was overseen by the Karlsruhe Vanderlande utilises a dedicated data science team to work on Institute of Technology and the partners of the FEM (European these topics. materials handling federation). On a global level, the energy production transition towards a low With this initiative, various research institutes and companies carbon economy is in progress. Moving away from the use of fossil cooperated to create a guideline for the standard calculation and fuels to renewable alternatives will take time to be implemented measurement of energy consumption for various material handling and achieve the desired outcome. In addition, there is much to systems. ECoDeMISE is also a positive example of how competitive accomplish from an innovation perspective. companies are able to cooperate in the pursuit of a worthwhile objective. At the time of writing this report, at an industry level, The potential for Vanderlande’s products to store and recover no standard for comparative measurement is available. For this energy, and to change the way logistic chains are designed, reason, Vanderlande cannot objectively disclose the energy use remains open for further development. However, the targets that of its products. the company has set itself in terms of the energy use of it products and systems are clear. As a responsible organisation, Vanderlande Vanderlande works closely with its customers and suppliers to is dedicated to the continuous evaluation of its performance on develop new solutions and insights. As a result, it has helped energy and has structures in place to assess this correctly. to promote the use of low voltage-driven equipment, which has been implemented to create smaller, more efficient and modular products. Leading by example, Vanderlande will soon roll out a full IE4-supported (super premium efficiency) range of products in each of its market segments.

In addition, the company’s life-cycle services provision offers a comprehensive range of options for customers. Vanderlande’s process engineers work closely with customers to improve the flow of goods, assist with energy-related topics and undertake energy scans. When energy consumption is better understood, opportunities to make savings become more visible.

These range from the smarter use and improved balancing of operational systems, to implementing improved products or switching to different material handling solutions. By making changes to software settings, improving process (batch) control and managing redundancy in the system, it is possible to make them more efficient.

New circular business models create a demand for increased insights into the life cycle of an asset. Not only is energy use a major influencer in the total cost of ownership, but it is also “Vanderlande works closely with its used as input for Vanderlande’s ‘big data’ framework. Combined customers and suppliers to develop new with sensor and flow data, and smart algorithms, the company solutions and insights.”

> Vanderlande Sustainability Report FY2018 27 Sustainable product design

Vanderlande is a vertically integrated solution provider. This role deliverables and a set of decisions that must be made in order to begins with in-house product development, and continues through proceed to the next phase. Vanderlande’s influence is the creation to life-cycle services and dismantling. Product design involves and life cycle of all products that the company has designed the selection of appropriate materials and from a sustainability in-house. perspective includes the consideration of key attributes of those materials such as costs, processing and transportation, hazardous Ecodesign involves the integration of certain environmental content, scarcity and human rights issues in the locations where factors into the design of the company’s products. By improving they are sourced. their design, this can have a spillover effect across Vanderlande’s future installed base for the full life cycle of its products. It has Unless recycled or regenerative materials are used, raw materials not yet been fully implemented by Vanderlande, however certain must be extracted somewhere in the world. Oil spills, soil erosion aspects of the ecodesign philosophy have been integrated into and deforestation are just some of the potential consequences of the design process, and some developments have been executed selecting a specific type of material. in full accordance with these principles.

Over 80% of the company’s impact on the environment is A product undergoes an ongoing change during its life cycle. For determined during the design phase in which a range of example, new legislation can result in the update or redesign materials can be selected. A good design considers a product’s of Vanderlande’s products to meet these changing standards. purpose, including its energy use and potential for repair, reuse, Improved insights arising in the manufacturing processes can remanufacture and recycling. In addition, a design not only focuses also help to remove hazardous substances during production. on the potential waste stream, but also on safe maintenance and Other improvement processes focusing on cost and risk reduction dismantling. mean that Vanderlande continually reviews its products and manufacturing techniques and keeps up with technology changes Product design touches the core of Vanderlande’s business and and development opportunities. it strives for optimal sustainable product design choices. These relate strongly to the circular economy. As a market leader, For the majority of Vanderlande’s equipment, there is a fixed Vanderlande has a responsibility to motivate others to design component structure, combined with moving parts that suffer sustainable products. The impacts of product design can be seen from wear and tear. This makes the company’s products at an early stage, beginning with the extraction of raw materials highly suitable for repair and long-term refurbishments, and and their subsequent transport. improves the longevity of its systems. Alongside mechanical upgrades, software and hardware updates can be performed to All Vanderlande’s products are developed to follow the stage-gate keep Vanderlande’s systems operational and protected in the process in which a design starts with an ‘opportunity’ and ends long term. with a product’s ‘end of life’ stage. Each ‘gate’ comprises a list of

BLUEVEYOR

28 Targets

Sustainable product design FY2018 FY2019 FY2020 FY2021 Redesign TUBTRAX carrier based on circular design principles √ Assess sustainability classification systems √ Apply circular design principles to one major development project √ Apply super premium efficiency class motors (IE4) to high-runners in all market √ segments Move forward with sustainability classification system √ Develop sustainable conveyor belt √ Develop programme and train ten engineers in circular design principles √ Determine way forward for material passport √ Execute R&D sustainable development project per business segment √ √ √

The company is testing the concept of a ‘material passport’ on a process. Vanderlande’s positive spirit has created promising number of products, in which every material is documented. This results in recent years and these can be quantified more effectively contributes towards the circular economy, and creates further using a classification standard. opportunities to recover, recycle and reuse raw materials. Steel is one of the most heavily used materials in Vanderlande products Investing in smarter solutions for waste and finding ways to reuse and it retains an extremely high overall recycling rate. raw materials are not always regulated, but they are increasingly becoming an ethical issue for many companies. Vanderlande Vanderlande’s sustainable design started in 2010 with the hopes that the knowledge it has gained from creating the sofas, BLUEVEYOR, a project that was guided by ecodesign and Cradle-to- for example, will stimulate further innovation and help it move Cradle principles. This concept conveyor achieved a 68% reduction closer towards the circular economy. It is also a strong indication in the carbon footprint compared to the company’s conventional of how the company is proposing to close the loop (particularly in conveyors. A second phase of the BLUEVEYOR (2.0) was released relation to plastic) and turn waste into new products. in 2017, and energy measurements showed a consumption that was up to three times lower than standard conveyors. Within the GRI reporting standards, there is no specific disclosure available relating to sustainable product design. Vanderlande By changing its business models into circular ‘as a service’ is in the process of determining in what way the company can concepts, Vanderlande expects to overcome certain sales provide support to an industry-standard product sustainability limitations. Following successful prototypes and pilots, specific classification. The company believes that this is an industry issue structural changes will help the company to work towards a more involving many stakeholders – in particular in the supply chain circular economy. and waste industry – and needs to be addressed at industry level.

Another positive example is Vanderlande’s new baggage carrier, which is used in airports and constructed of 100% recyclable mono-material. However, baggage carriers of a previous generation that were not designed to the latest standards, cannot be recycled with such ease. Vanderlande has decided to address this issue by putting it in the public eye and is refashioning older carriers into contemporary sofas. The first units have been successfully delivered to Schiphol, Vancouver and Hong Kong airports.

To better evaluate its activities, Vanderlande is in the process of selecting a product sustainability classification system. Before FY2020, a circular design workshop will be organised for a select group of R&D engineers, and BLUEVEYOR developments will continue to create a fully recyclable and low-energy use conveyor belt. This will make it possible to more accurately predict the effect on the company’s footprint, as well as guide its decision-making

> Vanderlande Sustainability Report FY2018 29 Responsible sourcing

Vanderlande believes that establishing a healthy and fair society The switch from utilising a single supply centre in The Netherlands – which is at the heart of responsible sourcing – is a fundamental to three dedicated supply locations has been made in the past need that applies to employees, customers and the global decade. This was originally decided to lower lead times and costs, community. The company also expects its suppliers to fulfil their but reducing Vanderlande’s carbon footprint was an important corporate social responsibilities. side effect. Close cooperation also allows the company to switch to local production sites on each continent that are closer to Material handling solutions are made of physical components, customers, so that less equipment is required to be shipped – and which require raw materials to be extracted, processed, formed over shorter average distances. and treated. To do so, energy is required and waste is created. Vanderlande shares responsibility for minimising these impacts. As part of Vanderlande’s continuous improvement strategy, its Supply and Delivery Excellence programme has been introduced. Vanderlande spends a significant part of its revenue This aims to further optimise the supply chain and create a (approximately 65%) on its supply chain. To produce – or procure global strategy on sourcing. To improve costs and reduce risks, – a product or service, impacts can be seen at locations where Vanderlande wants to increase its expenditure on preferred raw materials are extracted. They are also visible when materials suppliers. In order to facilitate better cooperation, the company are transported to and at manufacturing sites where they are later has made the move from project-based contracts to long-term fashioned into products and systems. framework agreements. These create mutual commitment, insights and increase trust. With its increasing global operations, sustainable product design and processes, as well as its supply chain, Vanderlande has an Vanderlande has continually focused on making the procurement influence on the relative size, location and type of sustainable and supplier code of conduct an essential part of the framework impacts that occur. The company chooses to focus on its own contracts it signs with suppliers. Since FY2018, renewed attention direct activities and those of its direct suppliers. has been directed towards its implementation. This is a starting point for discussions on sustainability and moving closer to Vanderlande’s global supply chain is managed by dedicated achieving these ambitions. Human rights, which translate into centres in Europe, the USA and Asia, which work with local labour conditions, are an important theme within this document. manufacturing and installation companies and suppliers. The ‘one design, one quality’ principle enables Vanderlande to be Vanderlande’s procurement and supplier code of conduct fully flexible in shifting production all over the world. It operates an complies with the basic principles as specified in the UN’s global end-to-end supply chain, in which manufacturing, subcontracting compact platform. It was compiled in line with: international and procurement processes are managed and measured. labour office conventions; the UN’s universal declaration of human

Framework contracts including code of conduct

250 100%

90%

200 80%

70%

150 60%

50%

100 40%

30%

50 20%

10%

0 0% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Number of framework contracts (YTD) Percentage of framework contracts including code of conduct

30 Targets

Responsible sourcing FY2018 FY2019 FY2020 FY2021 Initiate Supply and Delivery Excellence programme √ Audit high-risk suppliers √ √ √ √ Define and create baseline for global supplier classification process √ Reach 25% code of conduct implementation of signed framework contracts √ Integrate Dun & Bradstreet principles in GSC process (supplier risk identification) √

rights and conventions on the rights of the child; the convention to increase the potential scope of its audits to include additional on the elimination of all forms of discrimination against women; topics, such as information security. and the OECD’s guidelines for multinational companies. The code of conduct also concerns the expectations that suppliers have Internally, Vanderlande has compiled a code of conduct for towards Vanderlande. employees that helps them to deal with the ethical dilemmas they may face at work. The company continually promotes strong ethics Vanderlande is committed to ensuring that working conditions and strives to lead by example. To further protect employees, within its supply chain are safe, workers are treated with respect Vanderlande’s whistle-blower policy has recently been updated. and dignity, and manufacturing processes are environmentally Alongside the codes of conduct, employees can easily access responsible. The company’s objective is to increase the level of these documents through Vanderlande’s intranet page. signed codes of conduct to 25% of the framework contracts by FY2019, with the ambition of increasing this up to 70% within five years.

Vanderlande is not reporting on topic specific GRI disclosures at this stage, but estimates that it is more appropriate to disclose the amount of code of conducts signed as part of a supplier framework contract. To assess its activities with regards to responsible sourcing, Vanderlande utilises specific evaluation tools, including: Vanderlande sees significant challenges in the market of ‘off- ongoing supplier audits based on risk priority profiles; code of the-shelf’ commodities, in which the company is a relatively conduct KPIs; and an EcoVadis assessment (EcoVadis is one small player. Its influence is minor, apart from in applying global of the world’s leading platforms for environmental, social and standards and measures. However, the suppliers that Vanderlande ethical performance ratings for global supply chains). At all times, selects to manufacture and deliver the company’s in-house Vanderlande aims to set a good example and display faultless designed parts and equipment are easier to influence, and there ethical behaviour, supported by its partners, and guided by clear is a significant responsibility in this respect. By choosing the right frameworks and codes of conduct. partner and producing the best product, Vanderlande can make a positive impact.

Many of Vanderlande’s projects involve subcontracted labour. All of these are managed with a strong attention to health and safety and subcontractors are managed as if they were Vanderlande’s own employees. Examples include safety toolbox meetings, preventive control measures, personal protective equipment, and creating awareness through active engagement and training.

To close the loop, Vanderlande regularly audits its partners and, based on a risk priority number process, it determines the suppliers that carry the highest risk. The level of risk is based on three factors: the criticality for Vanderlande’s business; the performance of the supplier over a specified period of time; and the expenditure on a supplier per annum. “Vanderlande is committed to ensuring that Alongside other aspects, Vanderlande verifies supplier working conditions within its supply chain agreements and quality manuals, product specifications and quality management systems. In all of its audits, health and safety are safe, workers are treated with respect and is taken into account. In the long term, Vanderlande fully expects dignity, and manufacturing processes are environmentally responsible.”

> Vanderlande Sustainability Report FY2018 31 Circular solutions

For many years, corporations have followed the traditional linear Vanderlande designs and manufactures products that require raw ‘take, make, dispose’ production model in which products are materials, which are supplied from third parties via the supply manufactured, used and then disposed of as waste. However, chain. Its customers currently procure and own Vanderlande with the growing scarcity and depletion of natural resources, products and systems and – as a result – are responsible for any this process cannot continue. Many materials are becoming waste generated during their operation, maintenance and end of increasingly costly and used at a rate that is unsustainable, and life. This includes spare parts, replacements or refurbishments, the percentage that can be recovered by conventional recycling is and means that the crucial aspects of managing materials and not enough to fill the gap. waste are outside of Vanderlande’s control.

Consequences are generated in locations where raw materials Overall, Vanderlande has a limited influence over the sourcing of are sourced, and where waste is handled and disposed of. raw materials and waste management processes at its suppliers. Vanderlande has long recognised that it must evolve from this However, it has a significant influence on the selection of materials linear process to a circular-based model. In this way, materials are and their design in order to enable repairs, reuse, remanufacturing selected not just for their short-term tangible properties, but also and recycling. It can also influence the business models that are for their effect on people, the environment and their capacity for required to create a more circular approach. By improving these, reuse. as well as fine-tuning responsibilities and accountabilities in relation to its products and services, Vanderlande can refine and Establishing a circular-based economy is one of Vanderlande’s support the development of circular solutions. three main drivers. By designing products and services in a circular way, risks will be reduced, opportunities to learn will be To develop market-leading solutions, Vanderlande listens to its created, and the company will become better able to adapt and customers to ensure that the company delivers products and perform optimally every day. A number of positive outcomes can services that meet changing demands and trends. Requirements also be achieved, including a reduction in raw material use, waste from a sustainability perspective are becoming increasingly and emissions, as well as the enhanced use of resources. It will important drivers for customers and link longer term societal also help Vanderlande move towards closing energy and material and environmental challenges with Vanderlande’s growth as a loops. business.

Vanderlande’s stakeholders believe that by creating truly Vanderlande’s development of circular solutions focuses on circular services and products, the company can be both the total cost of ownership alongside the environmental costs. highly successful in the future and create a positive impact This allows it to provide market-leading solutions that support on sustainable development. Vanderlande is highly vertically customers while taking care of everyone’s collective future. The integrated: it not only designs products, but produces, company sees it as its responsibility to cooperate with partners, integrates and installs them, as well as offering services, such as customers and other third parties to evolve towards circular end-of-life upgrades and the dismantling of systems. The systems. It is an opportunity to further integrate its activities company’s influence on circularity has the potential to be along the value chain, and strengthen customer engagement and great within the correct business model, where Vanderlande’s service levels. responsibility across the life cycle of a product is increased.

Closing the loop

RECYCLE

REMANUFACTURE

REUSE

REPAIR

MATERIALS PARTS PRODUCTS USE WASTE 32 Targets

Circular solutions FY2018 FY2019 FY2020 FY2021 Achieve reverse logistics value above € 1 million √ Deliver project with pre-owned equipment √ Support Platform for Accelerating the Circular Economy (PACE) √ Create plan for customer engagement on circularity √ Secure three pay-per-use customer contracts √ Select and roll-out R&D training programme on circular design √ Select circular solutions company disclosure √ Keep reverse logistics value above FY2018 level √ √ √

Vanderlande utilises a three-phase programme to support its FLEET was chosen as the winner of the 2017 inter airport interests. Each phase is an amalgamation of themes, ambitions, Europe Innovation Award in the interTERMINAL category, which initiatives and a corresponding timeline. Themes include Cradle- was voted for by the global airport community. Moreover, it to-Cradle and circular economy principles. By offering innovative received the top distinction in the ‘Red Dot: Best of the Best’ business models such as ‘pay per use’ or ‘products as a service’ competition. In 2018, designers and manufacturers from 59 concepts, Vanderlande’s customers can access the lastest countries submitted more than 6,300 objects to the competition, technology, while helping to keep products, components and which credits the best products manufactured each year. The ‘Best materials operating at the highest level for as long as possible. of the Best’ award is reserved for designs that the panel of experts deems to be of a superior quality. This approach allows Vanderlande to increase the scale of its operations by optimising repairs, reuse, remanufacturing and recycling processess across the global customer and supply base. This enables the company to reduce waste and increase its capabilities to act in a circular way, and Vanderlande believes that this will benefit customers and the environment, as well as contribute towards its ongoing business success.

In line with this, Vanderlande has decided to support the Platform for Accelerating the Circular Economy (PACE) – a public-private collaboration co-chaired by the CEO of Philips, and the heads of the Global Environment Facility and UN Environment. PACE aims to create change at speed and scale by enabling its supporters to broker partnerships that will expand existing, and kick-start new, circular economy projects. To help close the loop and minimise waste, Vanderlande has also challenged itself to reuse equipment, procured items or systems Supporting companies will be able to address cross-cutting that are not consumed in the execution of a project or service. barriers to scale the circular economy through a Global Leaders This process – managed by the company’s Reverse Logistics Network. They will also be able to link networks and knowledge, department – allows Vanderlande to remove materials from a and share best practices and policies across existing institutions. project and return them to its European supply chain centre in Vanderlande has pledged that by 2020 it will have successfully Veghel for future use. launched new solutions and services that fully close the loop by utilising innovative business models. As part of a continuous process, these materials are sorted, itemised and made available as stock, either displayed or stored. A first step towards this is FLEET, a flexible logistics solution In October 2016, the Reverse Logistics department celebrated a that replaces the need for fixed conveyors and sorting systems. milestone. For the first time in its existence, it returned materials It combines Vanderlande’s passion for creating technical innovations that deliver a seamless experience with its desire to use natural resources responsibly. By utilising autonomous vehicles, FLEET facilitates new business models and consumes up to 50% less energy than traditional baggage handling systems. The design of the solution also means that the vehicles can be “By designing products and services in a circular recycled, which contributes to a circular economy. way, risks will be reduced, opportunities to learn will be created, and Vanderlande will perform optimally every day.”

> Vanderlande Sustainability Report FY2018 33 Reverse value

€ 1,600,000

€ 1,400,000

€ 1,200,000

€ 1,000,000

€ 800,000

€ 600,000

€ 400,000

€ 200,000

€ 0 FY2014 FY2015 CY2015 (9 months) CY2016 FY2018 (15 months)

to projects, spare parts, manufacturing, suppliers and anonymous As pledged during the World Economic Forum, Vanderlande is stock with a total value greater than € 1 million over a period of committed to accelerating the circular economy and reporting less than ten months. In 2017, the total value of returned materials in line with GRI principles. Within these principles there is exceeded € 1.5million. currently no specific disclosure relating to circular solutions. For this reason, Vanderlande will report on the reverse value of the Another major advantage of having Reverse Logistics is the Reverse Logistics department. In the coming years, the company support that it delivers to project execution teams and the R&D aims to make improvements on the disclosure and reporting of its department. In cases of missing or damaged materials, equipment progress to accelerate the circular economy. can be obtained with minimal lead times.

An equal initiative is organised directly for Vanderlande’s customers in which systems or products that have become obsolete, can be used again. Through this, the company has been able to help customers in the airport and parcel markets match their changing requirements and reuse equipment from other sites.

34 Corporate governance

Effective leadership, transparency and the delivery of high by setting the standard and facilitating decision bodies, processes standards have formed the basis of Vanderlande’s success. and policies. This will result in gradual change and ensure that They also provide a foundation for meeting increasing societal sustainability becomes ingrained in their actions. demands for strong corporate governance, which will sustain the company’s long-term future. This creates the drive, motivation and To guide a growing organisation, Vanderlande has published opportunity to progress the challenging materiality topics that are its vision, which incorporates three high-level key drivers for critical to Vanderlande’s success. achieving a sustainable society. This is translated into the three pillars of sustainability, with each connecting to specific goals Corporate governance is also an important topic arising from the and targets. Vanderlande has also created the ONE company materiality assessment performed by Vanderlande’s stakeholders. approach. This allows it to execute a larger volume of projects They believe that the way in which the company conducts itself as more effectively, with less risk and to the highest quality. a business has a significant impact on its reputation. Responsible companies such as Vanderlande – with honest working relations By having one approach, culture and set of tools, Vanderlande is and a correct approach – can prevent bribery and corruption, and better equipped to realise growth. This will result in a balanced in doing so, contribute to a fair and equitable society. international workload, and the maximum use of local knowledge and capacity across the company’s supply and engineering centres. Vanderlande believes that it can lead by example to maintain its The ONE company approach will also ensure that Vanderlande reputation. It is growing and adapting globally, and international continues to respect cultural and societal differences, but retain economic and societal differences influence the company’s culture one way of communicating and acting towards customers. This is and way of working. Therefore, the company wants to maintain the also supported by its training programmes on cultural awareness. highest level of cultural respect, and take care of its people in their day-to-day activities, while retaining the one company approach. Vanderlande’s sustainability organisation is still growing, and spreading out with new roles and champions globally. All The influence of sustainability is both internal and external, and employees are role models and everyone is expected to meet the involves employees, customers, suppliers and local communities. company’s high ethical standards. Equality, mutual respect, and Vanderlande is committed to acting responsibly wherever it acting fairly and with integrity are at the core of Vanderlande’s does business. Within the Board, the CTO is responsible for employee code of conduct: Good Business. sustainable topics and oversees the relevant programmes. In 2017, Vanderlande’s policy on this topic was updated and signed In addition, Vanderlande’s HSE activities are now organised on by the CEO. a global scale. With an international workforce and increased mobility, new roles are only filled by the most suitable Vanderlande utilises the potential of its network to actively candidates. To maintain the highest standards, Vanderlande contribute to global sustainability goals. The company believes embeds quality management systems, such as ISO9001, that governance is about supporting and empowering employees, ISO14001 and ISO50001.

Company structure

*Statutory responsibility CEO R. Brunschwiler*

> Global Services > Marketing and Communications

CTO MD A MD WP COO CFO CHRO V. Kwaks A. Manship T. Verkuijlen G. Bossink H. Molenaar* R. Lamberts

> IT Solutions > Sales > Sales > Operations > Finance and Control > Human Resources > R&D > Project Execution > Project Execution > Supply Chain > Legal > Vanderlande > Systems > Services > Services > Manufacturing > ICT and Quality Academy > Sustainability > PG APC > HSE > Global shared > PG FLEET > PG Beewen services > PG Robotics > Continuous > PG Smatec Improvement Board > PG Dinamic

> Vanderlande Sustainability Report FY2018 35 Targets

Corporate governance FY2018 FY2019 FY2020 FY2021

Elect board representative for sustainability √ Create sustainability report, using GRI framework (core) √ Renew and roll-out employee code of conduct and whistle-blower policy √ Achieve ISO50001 at three offices in The Netherlands, United Kingdom and Germany √ Improve EcoVadis rating at HQ: bronze to silver √ Achieve ISO14001 at HQ √ √ Develop sustainability integrated organisation approach and roles √ Set long-term sustainable ambitions and goals (2030 and 2050) √

In 2018, it was also assessed by EcoVadis in terms of its The FEM (European Materials Handling Federation) has represented sustainability rating, achieving a silver rating and the company is manufacturers of material handling, lifting and storage equipment striving for a gold rating in 2020. since it was founded in 1953. Vanderlande is actively involved in this initiative, of which its employee Jan van der Velden was In 2017, the acquisition of Vanderlande by Toyota Industries president from 2012 to 2016. Corporation was a major topic on the agenda of various bodies within the company. In particular, the Works Council was highly Globally, Vanderlande is a member of other associations, such involved in the process, and continues to update and align as the Australian Industry Group and the Confederation of Indian employees regarding important topics, such as strategic market Industry. In addition, the company is a part of the International and business developments, and employment conditions. Association of Airport Executives Canada, the Australian Airports Association and the Airport Operators Association (UK). Vanderlande is a founding father, associate and active board member of the Make Next Platform. This initiative was established By having a strong network, Vanderlande can promote proactive alongside other innovative OEMs to accelerate ‘scale-ups’ in cooperation between a multitude of partners both locally and support of the Dutch manufacturing industry. globally. This will also help the company to achieve its sustainable ambitions, as well as meet the increasing demand for effective Vanderlande is also a member of Brainport Industries and corporate governance. To ensure that Vanderlande is aligned participates in various activities within its branches. The correctly in this area, it closely monitors – and follows up on – cooperation among industry, knowledge and educational its activities through yearly EcoVadis assessments and quality institutions and the government – the so-called ‘triple helix management systems, for example. association’ – is unique and a key driver for the Brainport region’s success in The Netherlands.

“Vanderlande wants to maintain the highest level of cultural respect, and take care of its people in their day-to-day activities, while speaking one company language.”

36 > Vanderlande Sustainability Report FY2018 37 GRI content index

GRI standards GRI disclosure Page Remark

Organisation profile 102-1 Name of the organisation 6 102-2 Activities, brands, products and services 6 102-3 Location of headquarters 8-9 102-4 Location of operations 8-9 102-5 Ownership and legal form 6 102-6 Markets served 6 102-7 Scale of the organisation 6, 8-9 102-8 Information on employees and other workers 8-9 102-9 Supply chain 8-9 102-10 Significant changes to the organisation and its supply 5-6, chain 30-31 102-11 Precautionary principle or approach 3 102-12 External initiatives 10, 17, 20, 26, 27, 30, 31, 33 102-13 Membership of associations 35-36 Strategy 102-14 Statement from senior decision-maker 5 Ethics and integrity 102-16 Values, principles, standards, and norms of behaviour 7 Governance 102-18 Governance structure 35 Stakeholder engagement 102-40 List of stakeholder groups 12 102-41 Collective bargaining agreements 23 102-42 Identifying and selecting stakeholders 12 102-43 Approach to stakeholder engagement 12 102-44 Key topics and concerns raised 12 Reporting practice 102-45 Entities included in the consolidated financial statements 8-9 102-46 Defining report content and topic boundaries 13 102-47 List of material topics 13 102-48 Restatements of information - Not applicable 102-49 Changes in reporting 3, 13 102-50 Reporting period 3 102-51 Date of most recent report 3 102-52 Reporting cycle 3 102-53 Contact point for questions regarding the report 3 102-54 Claims of reporting in accordance with the GRI standards 3 102-55 GRI content index 38-39 102-56 External assurance 3

38 GRI standards GRI disclosure Page Remark

Health and safety at work 103-1 Explanation of the material topic and its boundary 15-17 103-2 The management approach and its components 15-17 103-3 Evaluation of the management approach 15-17 403-1 Workers representation in formal joint management-worker 15-17 Estimated data health and safety committees Design safety 103-1 Explanation of the material topic and its boundary 18-19 and ergonomics 103-2 The management approach and its components 18-19 103-3 Evaluation of the management approach 18-19 416-1 Assessment of the health and safety impacts of product 18-19 Health and safety and service categories risk assesment Employee development 103-1 Explanation of the material topic and its boundary 20-21 and training 103-2 The management approach and its components 20-21 103-3 Evaluation of the management approach 20-21 404-1 Average hours of training per year per employee 20-21 Employee engagement 103-1 Explanation of the material topic and its boundary 22-25 103-2 The management approach and its components 22-25 103-3 Evaluation of the management approach 22-25 - Employee engagement level 22-25 Vanderlande KPI Energy use (products and 103-1 Explanation of the material topic and its boundary 26-27 systems) 103-2 The management approach and its components 26-27 103-3 Evaluation of the management approach 26-27 - No material topic specific information available - Sustainable product design 103-1 Explanation of the material topic and its boundary 28-29 103-2 The management approach and its components 28-29 103-3 Evaluation of the management approach 28-29 - No material topic specific information available - Responsible sourcing 103-1 Explanation of the material topic and its boundary 30-31 103-2 The management approach and its components 30-31 103-3 Evaluation of the management approach 30-31 - Supplier framework agreements with code of conduct 30-31 Vanderlande KPI Circular solutions 103-1 Explanation of the material topic and its boundary 32-34 103-2 The management approach and its components 32-34 103-3 Evaluation of the management approach 32-34 - Reverse logistics value 32-35 Vanderlande KPI Corporate governance 103-1 Explanation of the material topic and its boundary 35-36 103-2 The management approach and its components 35-36 103-3 Evaluation of the management approach 35-36 102-20 Executive-level responsibility for economic, environmental, 35-36 and social topics

> Vanderlande Sustainability Report FY2018 39 Sustainability Report FY2018

Vanderlande Vanderlandelaan 2 5466 RB Veghel The Netherlands

Phone: +31 (0)413 49 49 49 Fax: +31 (0)413 36 29 10 Email: [email protected]

> vanderlande.com