sustainability performance report 2014

Committed to Sustainability environmental leadership 4 Letter from CEO 5 About the report 6 Voices from stakeholders 8 About DyStar Vision, mission & core values Worldwide presence At a glance Products and services Memberships Economical performance

14 Governance at DyStar Board of directors Our Commitment To Senior management of contents Two core committees table Code of conduct sustainability Compliance management DyStar strives to be the 16 Sustainability at DyStar Actions environmental and innovation Approach Strategy global leader in our Committee Activities chosen industries. 20 Sustainability priorities Stakeholder engagement Materials assessment

22 Sustainability in numbers Ensure sustainable operations Provide responsible products & services Promote ethical practices

38 Data at a glance 39 GRI® index innovative 52 UNCG index leadership 53 Your views Eric Hopmann C h i e f E x e c u t i v e O f f i c e r

letter from CEO about the report

Dear Stakeholders, munity development initiatives. Donation of This is DyStar’s fifth Sustainability Report performance data owing to its operation food and money in disaster-struck regions, since 2010 when we first began the annual at the earlier location for first six months I have great pleasure in presenting to you helping integrate differently-abled people practice of reporting on our sustainability have been reported. DyStar’s Annual Corporate Sustainability Re- within society, and helping those suffering performance. port for 2014.This marks the fifth year of our from HIV/AIDS are few of the notable activi- In 2013, DyStar acquired the assets and busi- sustainability journey which began in 2010. ties undertaken by DyStar employees during This report presents our triple bottom-line ness of Lenmar Chemical Corporation of Dal- 2014. i.e. Economic, Environment and Social sus- ton, Georgia and the site has been included At DyStar, we take unrelenting efforts to the Sustainable Apparel Coalition which is in tainability performance for the year 2014. in the boundary for Sustainability Report for meet our stakeholders’ expectations. With the process of developing an Apparel Index, Our commitment to financial stability has Our report focuses on the environmental the current reporting period, 2014. over 150 years’ experience, we have been which takes a full life-cycle view of an appar- increased in all three operation regions - and social challenges that matter most to maintaining our business through very ro- el product and identifies all major social and Asia, Europe and America. We continue to our stakeholders who include local com- reporting process bust customer relations, strong technical environmental impacts along the produc- boost our local economy where we operate munities, governments, non-governmen- We follow a content selection process to iden- our entire operations. Any assumptions and expertise and a superior product portfolio tion chain from cradle to grave. We believe through procurement of materials and ser- tal organizations, customers, shareholders, tify the most material topics for our reporting. methodology used for analysis or reporting both in terms of competitiveness and qual- this will help from a more sustainable textile vices from local suppliers. This also helps investors, employees, media, academics, are included in the report as applicable. ity. Our employees' dedication and expertise value chain. us control quality, minimize costs, meet de- contractors, and suppliers. This report serves The entire journey of the sustainability The information and basis for calculation in has been and continues to be a major rea- livery targets and increase efficiency of our as our formal Communication of Progress reporting process is led by DyStar’s Sus- Over the years we have built our core strength this report are based on GRI standards. All of son for this success. We also understand the operations. (COP) to the United Nations Global Com- tainability Committee with support from a in product stewardship which has enabled us the data and information for the reporting fast-evolving consumer awareness towards pact (UNGC) principles. cross-functional team of staff from all pro- increasing need for more information as to to build strong and supportive relationships Our continued commitment to the United duction sites and offices across the world. period has been sourced from the respon- how their clothes have been manufactured, with our widely expanding customer groups. Nations Global Compact (UNGC) ensures We illustrate how sustainability contributes sible business units using representative We identify and understand topics of signifi- the extent of use of chemicals, and the work- We assess all of our products for health & we are representing the highest standards to DyStar’s success and how we as a com- methods. cance to our stakeholders through a range of ing conditions in factories producing these safety impacts at each stage of the product of ethics in our human rights, employment pany create value for our employees, share- stakeholder engagements and reviews along All non-financial data in this report has been clothes. Coupled with the ever-increasing lifecycle –product concept development, practices, anti-corruption and environmen- holders, and partners. with our established internal processes. reported on a 100% basis for companies and number of world-wide regulations in the R&D, registration, manufacturing, marketing tal efforts. At DyStar, we strive to conduct The report has been prepared in accordance joint ventures where we are the primary op- chemicals, dyes and textile industries, this & promotion, storage, distribution and sup- our business activities with the highest pos- with the Global Reporting Initiative (GRI®) G3.1 Our sustainability committee reviews the erator. We use proprietary sustainability data has underpinned our sustainability vision to ply, use & service and disposal, reuse or recy- sible standards of integrity and in line with Guidelines as per the Application level B and content to ensure that coverage is com- management software for collection and improve our own production processes, de- cling. We continue to provide healthier, safer our Code of Conduct. The Code of Conduct covers 30 Core and 14 Additional Indicators. plete, relevant and balanced. We seek align- analysis of sustainability information. The velop innovative products and services and and ecologically compatible products for the sets out our legal and ethical principles ment service for ‘Application Level’ of our re- system involves a two-tier data verification promote sustainable practices along the en- apparel industry. which guide our daily work and help us up- In the next year, we intend to develop our port from GRI. The Application Level Service process in order to have the most accurate tire textile value chain. hold DyStar’s reputation as an employer of At DyStar, we strongly believe, employees are report as per the latest available framework Icon obtained from GRI has been placed on disclosure of sustainability performance. choice and a reliable business partner. of GRI G4 and ‘In Accordance Core’ option. the first page of GRI Content Index. We have In 2010, we published our first Sustainabil- key to what we achieve. We ensure through not sought any external assurance for the feedback ity Report and established concrete goals our actions, that our employees benefit from We recognize that apart from our own un- scope and boundary current sustainability report. for reduction of our operational impacts. their commitment and contribution to our derstanding and analysis, our sustainabil- We solicit your feedback to improve upon success. We provide a working environment of the report Our constant actions in environmental ity goals and objectives depend to a large about our data the reporting process in future years. Any stewardship have helped us reduce energy that recognizes the needs of our multicultur- degree on the feedback we receive from our The report captures the sustainability per- query with respect to this report may be consumption by 21.5% and GHG emission al and geographically-dispersed workforce. stakeholders and readers. We listen to your formance data for the business units, facili- While reporting on key sustainability per- addressed to: [email protected] intensity by 14.8%. We closely monitor our We understand the importance of personal feedback and would be happy to see your ties and subsidiaries that are operationally formance indicators, we have made an at- resource consumption and our major pro- growth for our employees throughout their comments or suggestions in the enclosed and financially controlled by DyStar Group. tempt to apply a uniform approach for data duction plants have reported a continuous careers, and offer opportunities for them to feedback form. collection, measurement and calculation for Operations at the production plant in Hang- reduction in energy intensity over the last 4 enhance their knowledge and skills through Thank you for your support. zhou, China, were discontinued and moved years. We take pride in this achievement as a wide variety of training and development to the plant in Nanjing, China in 2013 and we operate in a challenging environment programs. hence not included in the boundary for the that requires a broad and dynamic product The 2014 online report can be found at: Our strict adherence to health & safety poli- current reporting period. mix due to the constantly changing market With best regards, www.dystarsustainability.com cies and practices has resulted in significant and consumer requirements. Some laboratory activities in Singapore have reduction of Lost Time due to Injury at our For more on sustainability, see: been terminated and hence its sustainability In addition to our commitment to reduce workplaces. We consider this as a very im- www.dystar.com/sustainability data for the current reporting period is not environmental impacts of our own opera- portant achievement in our effort towards available. The laboratory at Corlu, Turkey was tions, we remain focused on inculcating a Zero Accident at Workplace. For more on Global Reporting Initiative, see: closed in July 2014 and shifted to the site of www.globalreporting.org sense of sustainable operations in our value We believe in creating value for the society Eric Hopmann the production plant at Corlu. Sustainability chain partners. We are an active member of through engaging our employees in com- C h i e f E x e c u t i v e O f f i c e r 1 Data from subsidiaries with more than 20 employees has been included in the report.

4 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 5 voices of stakeholders

"We are pleased to share yet another disclosure "Sustainability is the top priority for DyStar in "We live on a 4.5 billion year old earth and we have We also developed our two-fold sustainability strategy to on our sustainability performance with our Research & Development and Global Product done a lot of damage to it. About 70% of the major implement this goal: to not only reduce the impact of our stakeholders. While we continue with our key Safety & Ecology. In 2014 DyStar launched a fisheries have been depleted or are at their biological operations but also to help our customers reduce their im- thrust to ensure that the needs of customers new black dyestuff for wool, Realan® Black limit. Forest cover has been reduced by as much as pact. are fulfilled, we are striving hard to meet and MF-PV, which features a newly developed 50% worldwide. Almost 40% of the world’s population Our results to date can be found in this report. Some of the go beyond our 2020 sustainability targets. chromophore which is completely free of AOX is experiencing serious water shortage. Our natural en- highlights from the past year’s sustainability accomplish- It is a pride and honor to share that despite and heavy metals. This permits ecologically vironment is not for the benefit of us so that we can use ments include: Gerald a near constant production activity in 2014 Dr. Clemens sound dyeing processes and textile products Sherrie and misuse it. Talhoff Grund XU • Our Pietermaritzburg plant in Africa engaged services of vs 2013, our overall energy consumption has which are compliant with all ecological and Today there are four major environmental concerns in VP, GLOBAL VICE PRESIDENT technical requirements. GLOBAL an external agency for segregation of waste into hazard- MANUFACTURING, reduced by 6.7%. We have been able to reduce TECHNOLOGY SUSTAINABILITY the world, specifically: SUPPLY CHAIN, IT & MANAGER ous and non-hazardous. SUSTAINABILITY electricity and steam consumption in several Germany The dye has a very high fixation rate and out- China • Water quality and quantity • Our Nanjing plant in China built a new waste collection & Singapore production plants including Nanjing (China), standing build-up properties delivering great Naucalpan (Mexico), Pietermaritzburg (South benefits for the customer. By using such eco- • Depletion of fossil fuels storage location, totally recycled 83,480kg waste. Africa), Reidsville (USA) and Samutprakarn logically-driven product innovation, custom- • Climate change resulting primarily from fossil fuels • Our Naucalpan plant in Mexico took back plastic con- (Thailand). We have also increased our green ers can reduce the environmental impact of tainers from customers and suppliers. A campaign was • Population growth – eventually exceeding the energy mix by switching to partially renew- their processes by saving chemicals, water run to save energy in electric lighting and use of ”electron- “ earth’s capacity. able energy in Portugal. Our site management and energy." ic equipment. teams, supported by our global sustainability Sustainability management is defined as the inter- team, are busy analysing and taking up spe- section/interaction of environmental, economic, and • At Reidsville in US, reduction of 40% of trash to landfill cific initiatives to further increase our energy social spheres. In working towards sustainability, we was achieved by implementing and further developing efficiency. Their combined efforts have helped must consider and properly implement all of these cri- our recycling program for cardboard, plastic bottles, us conserve nearly 18,000MWh of energy teria. glass, aluminium and paper. making our production and overall operation ”In recent years, legal ecological requirements When we announced our long-term environmental • In our Mem Martins production in Portugal, the use of more energy efficient and hence sustainable. related to our and our customers' products vision years ago, we set our goals to ensure we were pre-heated dispersing agent was reduced. have increased globally. In 2015, for example, We realize that our water consumption needs making measurable progress. Our goal is to reduce our we need to implement GHS – the globally har- Many of the challenges we face in sustainability are im- to be monitored closely and we are taking up impact by 20% by 2020 in four areas: Energy, Water, possible to achieve on our own. We need partnerships with monized system for classification and label- initiatives across the board to further cap our Waste Water, and GHG. companies, governments, customers, NGOs and Academia ling of chemical products – in many regions water intensity. to cooperate and reach our common goal – to reduce our worldwide. For us occupational health, process and plant Dr. Christine impact on the planet." safety are key areas which we take very seri- Lorkowski Additionally there is an increased public con- ous in our global operation. We are very hap- PDM, CUSTOMER cern on sustainability aspects. This concern is ”Sustainability of all sorts is a key task and py to see our total lost injury days going down SERVICE - ECONFIDENCE, not only about chemicals in consumer prod- REACH-MANAGER duty for the Product Management Team. by 90% in 2014. ucts, but also the environmental impact of a TECHNOLOGY / GLOBAL Therefore we work with Product Safety & Ecol- PRODUCT SAFETY & chemicals synthesis and their applications. As we move on to 2015, we will continue to fo- ECOLOGY ogy Teams to ensure that all products not only cus on our sustainability mission, our targets Germany Via DyStar's internal product registration comply with the legal requirements world- for 2020 and we are planning to include our process and extensive analytical monitoring wide, but also go beyond in terms of their own key supply chain aspects into our sustainabil- routines within the econfidence® program, sustainability by complying with voluntary re- "DyStar® Group and DyeCoo Textile Systems ity disclosures." we have implemented a chemical manage- Guido quirements such as e.g. Brand & Retailer RSL’s are collaborating on the development of ment system based on which we are able to Krabbe (Restricted Substances Lists) etc. products, using DyeCoo’s breakthrough tech- GLOBAL PRODUCT nology of substituting carbon dioxide (CO₂) provide our customers with products of high- MANAGER We take considerable efforts through our for water in the dyeing process. DyeCoo Tex- est possible level of quality which are in full VAT DYES econfidence® program to ensure that our tile Systems is the world's first supplier of in- compliance with legal requirements on mar- Germany products are amongst the cleanest available dustrial CO₂ dyeing equipment, which uses “We create growth by developing new solu- keting and use. Our team of experts is busy in the market.” Fanny recycled CO₂ gas instead of water to permeate tions for future challenges of environment. to ensure the provision of appropriate safety Vermandel textiles with dyes. This partnership will pave We care about sustainability reporting as it data sheets (available in 29 different languag- MARKETING the way for more ecological products which creates an excellent platform for demonstrat- es). Ecologically based product recommenda- DIRECTOR will meet the rigorous demands of the indus- ing our performance and shows leadership to Germany tions referring to specific B&R applications are try. This technology offers a huge potential our customers that DyStar is their sustainable "At DyStar, we always seek to ensure that not derived by the experts and provided as a stan- to save water and energy, both of which are partner of choice for dyes, chemicals and only our own operations, but also those of dard on the daily business.” top priorities for the textile dyers. In DyStar, we Julian services.” our Suppliers are sustainable. We lay strong Metcalfe emphasis on policies covering child labour, fully commit to this project to offer the highest sustainable solutions for the textile industry." BUSINESS forced labour, wage management and hu- MANAGER man rights all across our supply chain. We Charlotte, US make sure that the suppliers are screened well Vera to uncover any shortcomings. It is encourag- Huang ing to see new disclosure requirements on sus- VP, GLOBAL PROCUREMENT & GM, tainability in the supply chain by GRI. We are China gearing ourselves to evolve systems that will enable us provide transparent and reliable disclosures on our supply chain."

6 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 7 DyStar is one of the leading global organizations delivering high quality colorants, auxiliary chemicals, and services to the textile, paper and leather about DyStar industry as well as other specialty chemical industries.

vision our worldwide presence We strive to be the environmental and innovation global leader in our chosen industries.

Raunheim Ludwigshafen mission More than 100 years of experience in production and application With the support of our shareholders we aim to invest in our leader- development for textiles dyes and chemicals, has set us up to con- ship to make a difference, by living up to global and legal business Milan sistently grow our business and also venture out into new markets requirements and environmental and social responsibilities and by Porto Istanbul Kyunggi-do Reidsville, NC Corlu Osaka and industries like paper, plastic and other specialty chemicals. reducing the ecological impact of both our own and our customers’ Dalton, GA Charlotte, NC Mem Martins Nanjing Wuxi Cairo Ankleshwar Omuta operations. Karachi Shanghai We will continue to use our expertise and creativity to support the Naucalpan Taipei Navi Mumbai Dhaka Hong Kong competitiveness and business growth of our customers - Brands & Our focus is on quality and resilience for the entire supply chain of Mexico City Samutprakarn Singapore Retailers, Mills, Dye Houses, Printers and Laundries – by bringing to our customers. Through our innovative products and services we Medellin Quito market cost-effective and innovative new products as well as inte- help our supply chain partners to produce low-impact consumer Jakarta Lima Gabus grated technical and environmental solutions. products meeting the highest environmental and quality standards Global Headquarters in the most cost effective way. DyStar Office São Paulo Apiúna Key Production Site Pietermaritzburg

core values

Operates in 22 DyStar at a glance $ Countries RESPONSIBILITY INNOVATION EXCELLENCE 938 million DyStar Group is owned by DyStar Global DyStar operates worldwide and respects a DyStar is committed to continuous inno- The quality of our products and services is a Holdings (Singapore) Pte Ltd, a special pur- USD wide range of legal requirements and cul- vation not only in products and services key factor in our company’s success and un- pose vehicle jointly owned by India-based 2014 Revenue tural circumstances. We are committed to but also in manufacturing techniques and derpins the fulfillment of our corporate goals. Kiri Dyes and Chemicals Limited and Chi- 14 Production conducting our business activities with the business processes in order to deliver envi- na-based Longsheng Group. Facilities in highest levels of integrity and ethical stan- ronmentally compatible products and mini- Our manufacturing processes, products and DyStar operates in 22 countries with 14 pro- dards. We ensure a safe and healthy environ- mize the impact on the environment of our application methods are trend-setting. Our 12 duction facilities in 12 countries. We employ ment for our employees with equal oppor- operations and those of our customers in industry-leading econfidence® program is Countries around 2200 people who manage our op- tunities. We honor the intellectual property the industry sectors we supply. designed not only to provide assurance to 27% erations across the world. The DyStar Group of our competitors. We take our responsi- our customers that the dyes and chemicals America has offices, competence centers and agen- bility seriously to protect the environment. we supply comply with legal requirements 45% Offices & cies in over 50 countries to ensure the avail- Agencies Our products and manufacturing sites are but also to consult so that the selected Asia ability of expertise in all important markets. in over compliant with environmental and other products are compliant with voluntary and brand & retailer RSL (Restricted Substance relevant regulations. The company is headquartered in Singa- 28% 50 List) requirements. The econfidence® pro- Countries pore. . In 2014 our revenue was $938 million Europe gram allows DyStar to build partnerships USD with a share of 45% in Asia, 28% in Eu- along the value chain to foster more sustain- rope and 27% in America. able production in the apparel, textile and leather sectors. Approximately We continue to create a motivating and cre- 2200 ative work environment to attract talented Employees and services oriented employees.

2 For more details on company profile, locations and operations, please refer to our website www.dystar.com or our previous sustainability reports at www.dystar.com/Sustainability

8 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 9 about DyStar

our products our services DyStar offers a wide range of products and services to support not are manufactured and sold in accordance with applicable chemical ECOLOGY SOLUTIONS only the textile value chain but also the leather, paper and specialty legislations such as REACH. DyStar offers many items which com- chemicals industries. Our product innovation has resulted in over ply to industry eco-label standards such as Oeko-Tex® Standard 100 ● Enable our customers to undertake responsible and sustainable pro- 1,500 product-related trademarks across 100 countries worldwide. or individual brand and retailer Restricted Substances Lists (RSLs). duction Our products are designed to provide safe, toxic free and environ- Several “Positive Lists” are published on the DyStar website. ● Advise customers on relevant legislations and ecological issues mentally compatible solutions to our customers. All of our products ● Give guidance on DyStar products suited to meet various ecological DYES specifications and requirements DyStar is the world’s leading supplier of textile dyes. We have by Featured Dyes which highlight their eco-friendly use, cost-effective- far the broadest product range on the market, covering almost all ness are provided in our website. COLOR SOLUTIONS INTERNATIONAL fibers and quality specifications. Details of our wide range of ● Leading provider of color standards and color communication tools for DYES sustainable color communication services & INKS ● Supports brands and retailers by providing color tools, building color palettes, engineering colors and standards, and managing distribution to industry partners REACTIVE DIRECT VAT ACID DISPERSE BASIC MORDANT PIGMENTS DENIM JETTEX® DYES DYES DYES DYES DYES DYES DYES DYES

TESTING SOLUTIONS – TEXANLAB LEVAFIX® SIRIUS® INDANTHREN® TELON® DIANIX® ASTRAZON® DIAMOND IMPERON® DYSTAR INDIGO ● ISO 17025 certified, boutique testing laboratory with experience of testing over 125,000 samples of dyes, chemicals, fabrics and apparel for PROCION® SUPRALAN® PALANIL® CASSULFON® ecological parameters

● Has expertise in ecology testing and analysis according to the require- ments of CPSIA, EU Eco-label and brands & retailers’ RSLs (Restricted REMAZOL® ISOLAN® Substances Lists)

REALAN® SUSTAINABLE TEXTILE SOLUTIONS (for wool) ● Focus on three main components: consultancy, auditing and capacity building AUXILIARIES AUXILIARIES ● Dedicated to assisting brands, retailers and industry partners implement DyStar has a wide range of textile auxiliaries which are designed to sustainable textile production that meets their quality and eco-require- offer solutions for the entire textile wet processing chain – spinning/ ments and makes more efficient use of resources weaving, pretreatment, dyeing, printing, laundry, finishing and coat- SERA® EVO® LAVA® ing. Our product range is categorized as:

Our detailed services profile can be accessed on www.dystar.com/Services LEATHER AND FUR DyStar offers superior quality leather dyes based on our expertise in products. By taking advantage of our specialized services our cus- leather chemistry. Our products are available in several vibrant colors tomers are able to meet a wide range of test specifications and eco- and also help optimize the ecological profile of leather production for logical requirements. Some examples are Oeko-Tex® Standard 100, our clients. We are the original producer of Boehme® Fatliquors and RSLs from various brands and the SG label for leather manufactured Auxiliaries. Our products suit every application from economical shoe without toxic chemicals. upper dyeing to high fastness upholstery leathers and high-fashion

Our detailed product profile can be accessed on www.dystar.com/Products

10 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 11 about DyStar

memberships our economical performance

DyStar is a prime promoter of sustainability in textile value chain and is member of several international organizations driving sustainability DyStar financial performance has seen a considerable improvement Our production has reduced by around 2% this year; however, we in textile, leather and associated industries. this year. Our gross revenue has increased from the previous year by maintained our costs at the same level. This exhibits a high level of around 14%, and has increased for all three operations - Asia, Europe efficiencies in managing our operations. We are very happy to re- CSR, SUSTAINABILITY AND INDUSTRY and America. This has been possible due to our persistent effort port that this year the economic value retained for the company ECOLOGY ORGANIZATIONS ASSOCIATIONS to remain efficient in our operations, deliv ering quality products has increased by over 100%. We are proud to create more economic to our expanding client base and focused approach on R&D and value for our shareholders and this trend of increasing economic ● United Nations Global Compact (UNGC) ● Textile and Fashion Federation (Taff), Singapore innovation. value reinstates our financial sustainability.

● Sustainable Apparel Coalition (SAC) ● Brazilian Association of Chemistry, Brazil

● Textile Exchange ● Association of International Chemical Manufacturers DYSTAR’S ECONOMIC PERFORMANCE (AICM), China ● The Ecological and Toxicological Association of Dyes and Organic Pigments Manufacturers (ETAD®) ● China Dyestuff Industry Association, China ECONOMIC PERFORMANCE 2013 2014

● bluesign® ● Ankleshwar Industries Association, India DIRECT ECONOMIC VALUE GENERATED IN MILLION USD ● Global Apparel, Footwear and Textile Initiative (GAFTI) ● Anyer Merak Cilegon Chemical Manufacturer Association, Indonesia ● Singapore Compact for Corporate Social Responsibility REVENUES 822.86 937.99 ● South African Dyers and Finishers Association, South Africa ● National Committee of Responsible Care®, Indonesia ASIA 372.90 419.18 ● German Chemical Industry Association (VCI), Germany EUROPE 239.98 266.10 ● GOTS (Global Organic Textile Standard) AMERICAS 209.98 252.71 ● Society of Dyers and Colourists (SDC), UK

● American Association of Textiles Chemists and Colorists ECONOMIC VALUE DISTRIBUTED IN MILLION USD (AATCC), USA OPERATING COSTS 638.76 683.48 ● American Apparel and Footwear Association (AAFA), USA. ASIA 356.18 413.92 ● ABIT (Associação Brasileira das Indústrias Têxteis) – Brazilian Association of Textile Industries. EUROPE 164.24 146.09 AMERICAS 118.34 123.47 ● ABIQUIM (Associação Brasileira das Indústrias Químicas) – Brazilian Association of Chemical Industries. EMPLOYEE WAGES AND BENEFITS 107.20 118.03

● SINPROQUIM (Sindicato das Indústrias de Produtos Quími- ASIA 43.34 50.01 cos) – Union of Chemical Products Industries. EUROPE 41.56 42.68 ● ABQCT (Associação Brasileira de Químicos e Coloristas Têx- AMERICAS 22.31 25.34 teis)- Brazilian Association of Textile Colorists and Chemists. PAYMENTS TO PROVIDERS OF CAPITAL 12.55 11.34

PAYMENTS TO GOVERNMENT 14.49 25.01

ECONOMIC VALUE RETAINED 49.87 100.09

Our total expenditure on purchase of materials has gone down this helps us control quality, costs, meet delivery targets and make our year by around 6%, whereas our production has reduced by only operations efficient. Approximately 57% of our total material is pur- 2%. This was possible due to increased practice of recycle and reuse chased locally and almost all of services - IT, transport, maintenance, at some of our production sites. Keeping in line with our past prac- calibration, cleaning, security, freight transport, utilities, insurance, tice, we continue to purchase primarily from our local suppliers. This and consultancy services are sourced locally.

12 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 13 governance at DyStar

board of directors and senior management two core committees Our Board of Directors and Senior Management team comprising PRIMARY RESPONSIBILITY OF THE BOARD INCLUDES: We have two core committees to assist the Board and the senior PRIMARY RESPONSIBILITIES OF THESE COMMITTEES ARE: five members each form the governance structure. Together they management in performing their tasks. ● are responsible for guiding the company to achieve our long terms Oversee the utilization of financial resources goals in a transparent and sustainable manner. ● Decide the appointment and compensation of senior management AUDIT COMMITTEE REMUNERATION COMMITTEE Our board members are industry experts with many years of ex- ● Monitor proper internal control process, risk management ● Ensure Human Resource policies of the Company are consistent pertise in handling corporate affairs and governance. They oversee ● Ensure compliance with laws, business ethics and risk management policies and practices in its principle and aligned with Company’s strategic objectives and support promotion of transparency and good corporate gover- ● Review business plans and the strategic direction of the company nance in the company’s policies and operations. The board is head- ● Supervise the financial reporting and disclosure process ● Review and recommend remuneration framework for the man- ed by a Chairman who is not an executive officer of the company. ● Oversee the hiring, performance and independence of the agement and employees including appointing and defining external auditors remuneration package of senior management ● ● Oversee regulatory compliance, ethics, and whistleblower Define Global Organizational Structure and Development to support Company strategic growth BOARD hotlines OF ● ● Supervise the performance of the internal audit function Ensure Company compliance with laws and best practice in DIRECTORS Human Resource area ● Monitor Global HR initiatives enhancing business continuity, efficiency and organization competitiveness our code of conduct Ruan Manish Xu Amit Yao At DyStar, we strive to conduct our business activities with utmost Our code of conduct also guides us on our management approach Weixiang Kiri Yalin Mukherjee Jianfang integrity and in line with our code of conduct3. The Code of Conduct both for internal stakeholders and external stakeholders. Within the CHAIRMAN DIRECTOR DIRECTOR DIRECTOR DIRECTOR sets out our legal and ethical principles by which to guide our daily organization, it promotes transparent operations, employee satis- work and to help us uphold DyStar’s reputation as the employer of faction & retention, talent attraction, health and safety aspects. Ex- choice and reliable business partner. It is binding for all our employ- ternally, it promotes fair competition, customer satisfaction, respect ees and the entities who are a part of the DyStar Group. for local laws and above all high product and service quality.

The Group CEO and President develops strategic plans and policies communication channels. Simultaneously, our employees are given compliance management in consultation with senior management, which are presented to direct access to senior management to raise their concerns or sug- Being an international organization with operations across 22 coun- Global the Board for approval. Senior management also periodically sen- gest any improvements in our policies or operations through our tries, it is the responsibility of our employee to ensure we conduct our sitize the employees about ethical business practices and DyStar’s Open Door Policy. business activities and transactions with the highest level of integrity Compliance Function expectations through company meetings and various other internal and ethical standards in accordance with all applicable laws and regu- Objectives lations on a global basis. ● Foster a culture of honesty and high ethical SENIOR Our Global Compliance Management Department was set-up to en- standards MANAGEMENT sure adherence to laws and regulations, Environmental, Hazard and ● Evaluate and mitigate risks for the Company Safety (EHS) requirements, rules of actions, established standards, ● Raise awareness among employees on the and social accountability guidelines, code of conduct, company need for adherence to laws and regulations guidelines and management directives by DyStar staff. ● Improve public image of the Company This function is driven by: Gerald Vera ➊ Our Global Compliance Management Officer who is responsible Eric Kevin Tan Victor Talhoff Huang for ensuring compliance to laws and regulations in general at all Hopmann VP, GLOBAL HR, Leendertz VP, GLOBAL MANUFACTUR- VP, GLOBAL GROUP CEO QUALITY & GROUP CFO ING, SUPPLY CHAIN, IT & PROCUREMENT & GM, DyStar entities worldwide. He is supported by the local Compli- COMPLIANCE SUSTAINABILITY GREATER CHINA ance Management officer and a team who are designated offi- DyStar is proud of its internationally certified Management Systems: cers responsible for local compliance management. ISO9001 AND ISO 14001 CERTIFIED MANAGEMENT SYSTEM ➋ Group Legal Counsel, who is responsible for interacting with gov- ADOPTED SA 8000: SOCIAL ACCOUNTABILITY GUIDELINES ernmental authorities in cases of deviation and also advises em- ployees on laws and regulations, and legal considerations in case of deviation and non-compliance.

3For detailed version of our code of conduct please visit www.dystar.com/corporate-social-responsibility

14 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 15 DyStar defines sustainability as a working closed system balancing economic success sustainability at DyStar with social and environment responsibility.

relevance of sustainable actions for DyStar DyStar's approach towards sustainability INDUSTRY At DyStar, we strive to understand our stakeholders’ expectations. consumption of energy, water and other resources, effluents and We understand the key to sustainable business lies in addressing waste generation. The global textile industry is considered to be the single largest contributor to industrial the risks that threaten the common things we value. We are com- waste water and the largest user of pesticides. The social aspects associated with the mitted to address risks to ensure that we play our part as sustain- We are committed to a responsible approach towards maintaining industry have been under scrutiny for a couple of decades since the early 1990s. able business partners to global Brands and Retailers and other the health and safety of our customers, employees, and the local These factors coupled with increasing regulations restricting the use of chemi- important stakeholder groups. communities in which we operate. With these objectives in mind, cals in the textile value chain and consumer preference for sustainable products we design and implement innovative systems, programs and pro- have driven manufacturers towards sustainable production processes. We have aligned our sustainability approach to the overall issues cesses to mitigate any impacts. We also assist our customers in re- faced by the industry and aim to address these issues through co- ducing their environmental impact by providing a wide range of A survey in developed economies, highlighted that around 78% of shop- herent and consistent efforts each year. We measure the environ- sustainable products and ecological solutions for their operations. pers wanted more information as to how their clothes have been manu- mental impact of our own operations in the form of GHG emissions, factured, the extent of use of chemicals, as well as conditions in factories producing these clothes. This evolution in consumer behavior has influ- enced Brands and Retailers to think about the sustainability issues in their supply chain and ways to manage them. OUR RENEWED CORPORATE STRATEGY TO STRENGTHEN SUSTAINABILITY BRAND VALUE In emerging economies, regulations surrounding energy, emissions, water use have also constrained Brands and Retailers to focus on the sustainability aspects of their supply chain. The progressive Brands are gradually demanding more information from their supply chain partners about material usage, energy consumption, carbon emis- sions, water & chemical footprint and labor practices. Product Safety- HOW INDUSTRY TRENDS econfidence® IN SUSTAINABILITY ARE IMPACTING DYSTAR Understanding Reduce DyStar globally caters to the business requirements of such Brands and addressing environmental and Retailers and is aware of its responsibilities towards its customers. stakeholders’ impact of products The dyes and chemicals industry is extremely resource intensive and has a focus on the following aspects from sustainability point of view. expectations & services

SUSTAINABILITY ISSUES IN CHEMICAL AND DYING INDUSTRIES Sustainability at DyStar Energy Waste Achieve and water and pollutant Reduce consumption discharge Voluntary use of Sustainability environmental Targets resources by 2020 Two-fold Occupational Product Compliance health and safety and with laws and Sustainability safety innovation regulation Strategy

As a prominent player in the global Dyes and Chemicals industry, all the aspects mentioned above are highly relevant to DyStar. As a responsible member of this industry, we are committed to continuously moni- toring our environmental and social impacts and implementing strategies to attain the short and long term goals.

16 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 17 sustainability at DyStar Sustainable Process Development sustainability strategy Sustainable DYSTAR SUSTAINABILITY COMMITTEE STRUCTURE Consumption We have strategically embedded sustainability into our daily work and Footprint as an important driver for company growth and products innova- Reduction Eric Wide tion. We have a well-established sustainability management and Working Hopman experience in Chemical & reporting process and set global standards for the environment, Sustainable towards GROUP CEO/ Textile safety and health protection. We evaluate our footprints and aim Product establishing CHAIRMAN Industry for reduction every year. We conduct various types of health and Development closed loop safety trainings from shop floor employees to management teams. systems Sustainable We believe that innovation is one of the best ways to not only de- Education and Services rive value and pass this on to the customers but also create dyes & chemicals that are less harmful to the environment. Our in-house Sustainable innovation center focuses on sustainable product development to Product take advantage of business opportunities by offering our customers Innovation innovative products and solutions that contribute to more sustain- Gerald Ron Clemens John Stephanie Fanny Sherrie Talhoff Pedemonte Grund Easton Schank Vermandel Xu able manufacturing processes. VICE PRESIDENT PRESIDENT SALES GROUP VP TEXTILE SERVICES, HEAD OF MARKETING GLOBAL OF GLOBAL AREA AMERICAS/ TECHNOLOGY ECOLOGY MARKETING DIRECTOR SUSTAINABILITY TWO-FOLD SUSTAINABILITY STRATEGY MANUFACTURING, HEAD OF TEXTILE Germany SOLUTIONS COMMUNICATIONS Germany MANAGER SUPPLY CHAIN, IT SERVICES Great Britain US China & SUSTAINABILITY ...... US ...... Reduce our own Help our customers Singapore ...... Passionate ...... Expertise in 1 operational impact 2 reduce their impact about Knowledge Understands understand- Detailed Expertise in Innovations in about industry public opinion ing customer understanding Detailed Sales & trends, NGOs & & marketing ● Established sustainability structure ● Foundation of econfidence® Sustainability demands on policies & expertise in Service Communities government supply chain & ● Measure environmental performance ● Product safety & environmental compliance Sustainability legislations on manufacturing sustainability ● Implement emission reduction strategies ● Sustainable product innovation Sales and demands Service ● Commitment to reduce our footprint in water, waste, energy, ● Sustainable processing – improving resource efficiency GHG The sustainability committee bring experience from different indus- to speak to DyStar employees, contractors and suppliers and help ● Sustainability Services ● Sustainability Reporting tries and government and aims at generating innovative ideas in all them build sustainability standards and commitment into practice. DyStar’s high performance dyes and chemicals help our customers of our areas of operation. During some visits, committee members visit local community and interested parties, such as non-governmental organizations (NGOs). We have identified energy, greenhouse gas emissions, water and to shorten production time, decrease use of water and energy, im- The committee meets every month to discuss the status of initia- After each visit, the committee shares its observations with stake- waste as the main environmental impacts that we should focus on. prove color consistency and increase right-first-time rates. The high tives as well as to view all the sustainability matrices in the company. holders and the management responsible for respective projects. Our target is to reduce environmental impact in these four areas by fixation levels of DyStar reactive dyes used for cotton textiles, will en- Apart from this, the members also visit production units and offices 20% by 2020. Our aim is to achieve this goal by reducing our impact sure that the highest possible portion of dye stays on the textile and by 2% every year over 10 years from 2010. does not end up in the wastewater. For polyester textiles the DyStar Dianix® Green Range has been specially designed to meet the most sustainability activities stringent requirements of Brands and Retailers as well as delivering excellent application properties and fastness performance. 2014 DYSTAR - SINGAPORE HEADQUARTERS sustainability committee TEAM BUILDING DAY On Nov. 13 2014, DyStar-Singapore organized an outdoor Team In order to provide more focus on sustainability, we have formed a PRIMARY RESPONSIBILITIES OF THE COMMITTEE ARE: Building Day with a theme “Committed to Sustainability “ at Clarke Sustainability Committee for driving the sustainability agenda in the ● Quay. The objective was to strengthen bonding among all employ- company. The committee consists of seven members and is headed Formulate and direct DyStar’s sustainability strategy ees from various departments in the Singapore office. The meeting by our Group CEO and President. While the committee is respon- ● Set sustainability agenda for DyStar Group and identify also focused on teamwork, cooperation, engagement, interaction sible for designing, implementation and monitoring sustainability sustainability goals and initiatives & communication among colleagues across different departments. strategy of the group, the ground level operations are handled by a team which includes heads of Production and Supply Chain and ● Select the GRI® performance indicators for the company and designated sustainability champions in different countries of our review annual sustainability data 2015 DYSTAR - MUMBAI OFFICE AND ANKLESHWAR PLANT operations. Our Global Sustainability Manager is the spokesperson SUSTAINABILITY AND STAKEHOLDER ENGAGEMENT MEETING for the company on sustainability related issues and is responsible ● Review the overall progress of sustainability targets, environ- In March 2015, Global sustainability manager Sherrie Xu visited the and customers. The objective was also to assess whether we are for communicating and executing the company’s strategy to the ment management systems, health and safety, and ethical Mumbai Office and Ankleshwar plant to have sustainability meet- putting our standards into practice. During this visit, the stakeholder external stakeholders and internal sustainability team. code of conduct ings with various departments. The global sustainability team spoke engagement survey was drafted together with the global team. to DyStar employees, conducted trainings and discussed suppliers

18 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 19 sustainability priorities

We consider stakeholder engagement is an stakeholder engagement materials assessment important tool to understand and assess This table presents a comprehensive view of our engagement with the stakeholders. Our global sustainability team has identi- the key sustainability risks of our business. Economic fied a gross list of materiality aspects rele- Since we operate globally across 22 coun- Performance, vant to our business through peer review, Market Presence tries, we understand addressing concerns STAKEHOLDER STAKEHOLDERS' DYSTAR’S MODES OF EXPECTATIONS RESPONSIBILITY ENGAGEMENT stakeholder dialogues, and sectorial reports of our varied multi-stakeholders groups is of GRI®. This was followed by an exercise to key to our sustainable business program. Quality of Invest in research Provide information map those materiality aspects which signifi- To keep ourselves aware of their diverse products and development through various public with a two pronged and private channels cantly influence the assessment and deci- expectations and integrate them with our Minimal environ- approach, ensuring such as our website, sion making of various stakeholder groups. Labor- mental impact of high quality prod- product brochures, so- Training of business goals, we constantly engage with DyStar products ucts, and devel- cial media and updates employees, GROSS LIST Occupational and materials opment of more A similar exercise was conducted with the Health & the stakeholders to collect their inputs on contract OF MATERIAL environmentally Organize meetings and company’s top management. The results of Safety our performance as well as address their Health & safety sustainable prod- seminars for custom- workers ISSUES IDENTIFIED both the exercises were analyzed to identify concerns. This helps us define our roadmap CUSTOMERS impacts of prod- ucts and services. ers on environment, VIA PEER REVIEW ucts on customers Compliance with sustainability and our the key materiality aspects for the company, towards sustainability. Not surprisingly, health and safety products’ ecological AND Appropriate regulations, and la- advantages STAKEHOLDERS many of our stakeholders’ concerns overlap labeling of DyStar beling requirements The results reveal, top management consid- DIALOG with our own, creating a common bond of products based on various Attend industry forums ers operational issues namely ‘Disposal of Ef- standards and reg- and conferences understanding and a solid basis for collabo- ulations. Maintain fluents & Solid Wastes, Environmental Com- customer informa- Conduct regular meet- ration to meet common goals. tion in highly secure ings with customers to pliance, and Water Use’ as very significant to systems. exchange information business. Heath & Our global sustainability team endeavored Safety Impacts Environmental to identify the key stakeholders through a Sustained and Formulate critical Update shareholders on The top management considers it very im- of products, impacts of structured process. We engaged with vari- long-term growth business strategies company performance portant to meet the expectations of its cus- marketing & materials of business for profitability and and sustainability initia- advertising ous stakeholder groups and conducted an sustainability tives through periodic tomers. Accordingly, beyond the operational used practices “Impact on-Affect By” test to conclude the Reasonable return meetings boundary of the business, top management SHAREHOLDERS on investment Timely and effective list of prioritized group of stakeholders. This implementation of considers aspects namely ‘Environmen- such strategies prioritized group of stakeholders can most tal impact of DyStar’s products & services’, significantly influence DyStar’s economic, Create stronger and ‘Health & Safety Impacts of DyStar products long lasting brand environmental and social performance and equity on customers’, ‘Environmental Impact of ma- are, at the same time, most likely to be affect- terials used by DyStar’ as very significant to KEY MATERIALITY Occupational Maintain the Strict adherence to ed by DyStar’s performance. health and safety emphasis on health and safety the business. ASPECTS FOR DYSTAR high standards of regulations. Provision DyStar has designed and implemented Opportunities for workplace health of protective gear and Diposal of FOR 2014 comprehensive and well-defined systems to growth and safety at our regular health checkups effluents, production plants. for the workforce. Con- Environmental Based on the feedback received from our in- engage with its stakeholders. Based on the Reward for perfor- Ensure ethical and tinuous review of the mance fair employment HR policies for fairness impacts of ternal & external stakeholders, industry anal- response received from our stakeholders, we practices and equality products & ysis and top management input, the follow- continue to improve our sustainability perfor- Fair treatment services Encourage an Management interac- ing aspects emerged as the Key Materiality mance to match their expectations. Whenev- open-door policy to tion with employees in

EMPLOYEES provide employees a number of ways on Aspects for DyStar for 2014: er necessary, we also revise these systems at all levels access regular basis

to prepare a more inclusive stakeholder en- to management for ➡ Amount of water ● Environmental impact of materials sharing views and Conducting team build- Compliance with gagement system for the company. offering feedback ing and sustainability marketing and ➡ used, Compliance used by DyStar themed outings for product labeling to national Reward and recog- employees to keep the environmental nize performance motivation levels high legislation ● Health and safety impact of DyStar TOP laws PRIORITIZED LIST OF products on customer An annual award to the MANAGEMENT ➡

STAKEHOLDERS best facility for sustain- FEEDBACK ability- driven initiatives ● Disposal of effluents, solid wastes ● CUSTOMERS ➡ Collaborate on Develop a network Continuous dialogue ● Compliance to national laws for ● SHAREHOLDERS supply of quality of reliable suppliers with our key suppliers ➡ products and and work closely to help them under- environment, marketing and product services with them to source stand and explain issues labeling ● EMPLOYEES high quality prod- relating to quality, Fair selection, ucts and services social, and environmen- Health & Safety Disposal of solid SUPPLIERS and respect for tal performance ● Environmental impact of DyStar ● SUPPLIERS contractual obli- Influence them Impacts of DyStar wastes, Environ- gations to continuously Seek their support and products on mental Impact of products improve their social participation in attain- customers materials used Establish long- and environmental ing DyStar’s sustainabil- term relationships performance ity goals

20 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 21 Optimize our resource consumption and reduce 1. negative enivromental impact sustainability in numbers: ENSURE SUSTAINABLE OPERATIONS

We continue to work to reduce our impact on environment, to engage DYSTAR'S ENERGY CONSUMPTION with the communities where we operate and to generate jobs and business opportunities for local economies. This section provides data on our safety, TOTAL ENERGY 308,715,237 344,901,186 321,831,306 economic, environmental and social performance in 2014. 400,000 400,000 400,000400,000 Based on the outcome of our stakeholder engagement process, our sustainability 350,000 350,000 350,000350,000 strategy has been set to focus on these key issues that have been identified as the most important in order to operate our core business sustainably. During the previous 300,000 300,000 300,000300,000 93,295 86,926 years, we have strived to improve our performances on these issues so as to become a re- DIRECT ENERGY 84,512 250,000 250,000 250,000250,000 liable business partner for our customers, shareholders, suppliers and other key stakeholders.

200,000 200,000 200,000200,000 DyStar believes in continuous improvement We report our sustainability performances across three broad areas: 150,000 150,000 150,000150,000 when it comes to use of materials, energy, INDIRECT ENERGY 224,204 251,606 234,905 ENSURE SUSTAINABLE OPERATIONS 100,000 100,000 100,000100,000 water, discharge of waste, emissions and ef- 1. Optimize our resource consumption and reduce negative enivromental impact fluents. DyStar management is committed Besides benefiting from product mix effects, 50,000 50,000 50,000 50,000 to maintain environmental sustainability in its PROVIDE RESPONSIBLE PRODUCTS & SERVICES we have been able to reduce our energy operations and to meet environmental goals. 2. Provide safe & environmentally friendly products to our customers in a responsible way consumption compared to previous year pri- We have identified the key environmental as- marily due to strong emphasis on monitoring 2012 2013 2014 (Kwh) (Kwh) (Kwh) pects for improvement over a defined times- PROMOTE ETHICAL PRACTICES and managing our energy consumption at cale. We monitor, measure and manage these 3. Promote good governance, improved employee relations and social responsibilities all locations. We undertake energy conserva- UNIT 2012 2013 2014 environmental aspects in various areas of tion campaigns throughout the year where operations such as research &, development, Germany an Environment Management System according to ISO 50001 is under implemen- operational teams at all locations undertake kWh 84,511,631 93,295,159 86,926,074 manufacturing, warehousing, packaging, and tation and should be certified before year end. In the course of this journey towards more TOTAL DIRECT ENERGY various local level initiatives to reduce energy GJ 304,242 335,862 312,933 transportation. We also monitor sourcing of sustainable operations, production sites and offices, with expert support from DyStar’s Process consumption. Some of the notable initiatives raw materials and use of natural resources Development teams, have implemented innovative measures including optimized production kWh 224,203,606 251,606,027 234,905,232 taken by our units this year are: TOTAL INDIRECT ENERGY as well as managing wastes, emissions, efflu- plans, improvement of operational efficiency, application of modern and efficient technologies GJ 807,133 905,782 845,659 ents and their impact on the environment. As to reduce the overall usage of resources and the generation of waste and emissions. The R&D ➊ Nanjing production plant in China: Grid Electricity Purchased kWh 69,383,175 74,979,492 74,504,695 part of its journey towards making its man- and Product Development teams at DyStar continue to develop new products or new applica- ● Optimize operation of energy-intensive agement systems robust, DyStar has imple- tion processes that require less energy and water and result in lower quantities of harmful waste. equipment (air compressor and chiller). The Purchased Steam kWh 154,820,431 176,626,535 160,400,537 mented ISO 14001 certified environmental We continuously monitor our performance in these key areas against the internal benchmarks site has added a new system with 1000kW to avoid waste of energy. According to the esti- TOTAL ENERGY kWh 308,715,237 344,901,186 321,831,306 management system (EMS) at three of its sites established by the management of the company and its board of directors. On the basis of this CONSUMPTION mation, 1.496 million units of electricity can and is considering expanding it further. In assessment, we develop appropriate strategies to address and prioritize relevant issues. be saved. In our offices, laboratories and R&D cen- We have set the target of reducing our ● Optimize the operation parameters of meth- anol distillation to decrease energy consump- ter, electricity is closely monitored and all energy consumption by 20% by 2020 1.1 optimum utilization of energy tion by increasing efficiency of distillation; con- possible measures are taken to reduce the compared to 2010 targets and we are sidering the use of compressed air to replace wastage of electricity. Some of these mea- proud that our energy consumption There is a tremendous impact on Climate ally generated energy has a direct impact on In 2014, our overall energy consumption nitrogen where possible. sures are switching off lights during lunch has already come down by 21.5% from Change due to various energy production climate change through emission of green- reduced by approximately 6.7 % from 2013 ● Replacement of compressors to optimize usage systems in the world. There is an urgent need house gases. levels. The decrease in energy consumption hours or when not in use, replacing exist- 2011 levels. We continue to monitor our to reduce global carbon dioxide (CO2) emis- from 2013 is primarily attributed to the reduc- ➋ Gabus production plant in Indonesia: ing equipment with more energy efficient energy consumption very closely at all With our globally widespread operation, that sion. In 2014, a report from Intergovernmental tion in purchased electricity and steam usage in ● Installation of inverter in agitator motor. ones, maintaining optimal temperature locations. include 14 manufacturing plants mainly pro- Panel on Climate Change (IPCC) stated that the production plants at Nanjing (China), Nau- ● Replacement with LED lamps of air conditioners, use of timer-plug for ducing dyes & auxiliaries and 22 offices & lab- “Warming of the climate system is unequivo- calpan (Mexico), Pietermaritzburg (South Africa), daytime operating, such as ice maker, wa- At DyStar Colors Distribution GmbH, Ger- oratories, our energy requirement is consider- cal and unprecedented, with emissions rising Reidsville (USA) and Samutprakaran (Thailand). ➌ Naucalpan production plant in Mexico: ter dispenser etc., putting stickers on light many we have started implementation of able. We use electricity for lighting, to run our faster than ever before.” This is even more chal- ● Ongoing campaign to save electricity con- switches to increase employees’ awareness, Energy Management System as per ISO lenging because energy demand is continu- machinery, IT systems, air conditioning plant The overall finished goods production quan- sumption in lighting and electronic equipment. 50001 guidelines. The Energy Manage- etc. Large quantities of steam are required for tity in 2014 has reduced by 2.2% in compari- promoting car pool usage at our locations ously increasing. ➍ Dalton and Reidsville production ment System will help to manage energy chemical and physical processes, mainly for son to that in 2013, which has contributed to to optimize fuel consumption in vehicles. units in USA: consumption according to an international Energy consumption is one of the most crit- heating purposes. Most of the energy includ- the reduction of electricity and steam usage. At several places, we have optimized the ● All conventional light bulbs were replaced standard and find additional savings po- ical environmental aspects for our sites. We ing steam is purchased from external suppliers However, other significant factors such as in- with energy-efficient ones. Employees are size of our offices to fit with our manpower therefore monitor energy consumption close- or government agencies; however at some crease in use of renewable power, primarily in trained to conserve energy in office and requirement. This has also helped us avoid tentials. The company will also receive tax ly in our company and have set up effective sites we do use natural gas, diesel and LPG to Portugal, product mix effects and energy effi- plant. Employees are reminded to switch off unnecessary energy consumption. benefits from the state for implementing an energy management programs. With increas- generate steam within the facility. Natural gas ciency measures at other sites have helped re- the lights, computers, printers when they Energy Management System according to leave office. ing costs and limited availability, energy has is also used to heat spray drier systems directly. duce the total consumption of electricity and Our measured savings in year 2014 ISO 50001. ● become a valuable resource. We also realize In addition a small quantity of diesel and LPG steam. In 2014, our total indirect energy cor- Installation of energy efficient air-condition- in are 17,497 MWh. ing and thermostat devices. that consumption especially of convention- is used for transportation. responds to 20198.214 Toe (MT oil equivalent).

22 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 23 Optimize our resource consumption and reduce negative enivromental impact 1. sustainability in numbers: ENSURE SUSTAINABLE OPERATIONS

1.2 manage our GHG emissions EMISSIONS SOURCES ● <1% Diesel - Stationary DyStar was one of the pioneer companies in For the previous GHG assessments, the base Considering the wide geographical spread For DyStar, Scope 2 continues to be the ma- ● 1% Fuel - Stationary ● the dyes and chemical industry to monitor year was maintained as the GHG emission of our operations, we have deployed a cloud jor source of emissions and is responsible 5% LPG - Stationary ● 0% LNG - Stationary its carbon emissions at group level. Our first inventory for 2010. However, since 2011, based sustainability data management tool for 88% of total emissions in 2014. Scope ● 85% Natural Gas - Stationary report was published for the year 2010 and DyStar has changed the data collection for better access, control and increased ac- 1 emissions, with a share of 12 % primarily since then every year we create an annual methodology, using the online software curacy of data collection. The data recorded comprises emissions from stationary com- ● 3% Diesel - Mobile GHG Inventory Report. The assessment is solution with inherent checks for data qual- in this system is reviewed by the site heads bustion, company owned vehicles, refriger- ● 2% Gasoline - Mobile ● conducted as per WRI/WBCSD GHG Protocol ity. Therefore, for the current and future for ensuring accuracy. Further, the assump- ant losses and chemical processes. Within <1% LPG - Mobile Corporate Standard and in accordance with GHG assessments, the base year has been tions used for data models and calculations Scope 1 emissions, natural gas combustion ● 1% Refrigerant Loss

the requirements of ISO 14064 – 1: 2006 changed to 2011. are revised every year as per the latest inter- contributes the largest share. ● 1% Process Emissions standards 4. national guidelines. % BREAKUP OF TOTAL EMISSION – DYSTAR'S GHG EMISSIONS The production plants of DyStar located in var- PRODUCTION & NON PRODUCTION SITES ious parts of the world account for major share The ISO 14064 Standard and GHG Protocol of emissions. In 2014, approximately 97.8 % of EMISSIONS (T CO2e) define three “scopes” for GHG accounting 180,000 180,000180,000180,000 180,000 SITE TYPE the emissions were from the production plants and reporting purposes. These mark a dis- 31,019 SCOPE 1 SCOPE 2 TOTAL % and remainder were from offices and laborato- 160,000 160,000160,000160,000 11% 160,000 18,554 18,654 tinction between direct and indirect emis- SCOPE 1 ries. 12% 12% Offices and Labs Total 1,244 2,223 3,467 2.2% sion sources, with the aim to improve trans- 140,000 140,000140,000140,000 140,000 18,097 13% Our overall emission intensity in 2014 has parency. Such delineation provides utility 120,000 120,000120,000120,000 120,000 Production Sites Totals 17,410 135,415 152,825 97.8% remained similar to that in the previous for different types of organizations and dif- 100,000 100,000100,000100,000 100,000 Total 18,654 137,638 156,292 100% year. However, our intensity in 2014 is still ferent types of climate policies and business 14 % lower than the intensity in the year goals. These three “scopes” are: SCOPE 80,000 280,000 80,000 80,000 142,670 80,000 123,536 141,245 137,638 GHG EMISSION INTENSITY 2011, which was 1.46 MT CO2e per te. 60,000 60,000 60,000 60,000 89% 60,000 87% 88% 88% SCOPE 1 Although the overall emission intensity has re- GHG EMISSION INTENSITY 2011 2012 2013 2014 40,000 40,000 40,000 40,000 40,000 per MT of production Direct GHG Emissions: are those that occur from mained nearly same, the intensity ratios at our sources that owned or operationally controlled 20,000 20,000 20,000 20,000 20,000 TOTAL CO EMISSIONS 173,689 141,633 159,799 156,292 plants have gone down. This shows that our by the company. Reporting these emissions is 2 mandatory for companies. operations are more energy efficient now and PRODUCTION VOLUME 119,116 118,411 127,812 124,890 we are having lower emissions per MT of our 2011 2012 2013 2014 SCOPE 2 EMISSION INTENSITY – production. 173,689 141,633 159,799 156,292 (tonnes CO e / tonne production) 1.46 1.20 1.25 1.25 Electricity Indirect Emission Sources: are those TOTAL CO e TOTAL CO e TOTAL CO e TOTAL CO e 2 2 2 2 2 As we continue to produce intermediates that occur due to purchased energy (in the form % CHANGE with respect to -17.97% 4.53% 0.09% of electricity, steam, heat and cooling) from the previous year and press cakes in-house instead of sourc- grid or district heating or cooling systems. Scope EMISSIONS (tonnes CO e) 2 % CHANGE with respect to ing them our overall efficiency has increased 2 emissions are also mandatory to report. EMISSIONS base year -14.18% SOURCE though the intensity per MT of finished prod- 2011 % 2012 % 2013 % 2014 % ucts remains on the same level like in 2012 SCOPE 3 base year EMISSION INTENSITY AT PRODUCTION PLANTS and 2013. Other Indirect Emission Sources: which oc- cur due to company activity but are not sources SCOPE 1 31,019 11% 18,097 13% 18,554 12% 18,654 12% owned or controlled by the company are called EMISSION INTENSITY EMISSION INTENSITY EMISSION INTENSITY At all locations we continue to work on re- IN DYE PLANTS IN AUXILIARY PLANTS IN ALL PLANTS Scope 3 emissions. E.g. emissions from the trans- SCOPE 2 142,670 89% 123,536 87% 141,245 88% 137,638 88% ducing our absolute emissions in spite of our port of vendors to provide services to the com- product mix. All the initiatives by DyStar to pany. Scope 3 emissions are voluntary for com- Total CO e 2013 2014 2013 2014 2013 2014 2 173,689 141,633 159,799 156,292 reduce energy consumption directly reduce panies to report and are left to the company’s Emissions discretion. Based on the relevance of emission 2.49 2.12 .08 .04 1.25 1.25 our carbon emissions as well. By 2014, we activity in the overall company’s emissions, it may Total GHG emissions for 2014 show a marginal reduction by 1.77 percent compared to 2013. have reduced our emissions by over 10% choose to report or ignore it. With respect to the base year, 2011 the emissions are lower by around 10 percent. from base year – 2011 We remain committed HIGHLIGHTS FROM 2014 GHG ASSESSMENTS to our emission reduction target of 20% on a The above graph and chart depicts the The overall Scope 1 emissions have re- Scope 2 emissions in 2014 have reduced in ● As for the largest plant producing mainly dyes, Ludwigshafen’s emission inten- GHG intensity basis by 2020. total Scope 1 and Scope 2 emissions in mained nearly constant during the peri- comparison to 2013, because of reduction in sity in 2014 has increased by a very slight margin compared to 2013. However, it 2014, in comparison with the emissions in od, 2012 to 2014. The marginal increase usage of purchased electricity and steam. This has reduced compared to 2012. The reason is a higher ratio of in-house synthe- the previous years and the base year, 2011. is due to the increased use of LPG and was due to reduction in production quantity sized Indigo material. Natural Gas for stationary combustion. as well as energy efficiency initiatives under- ● taken in some of the production plants. Emission intensity at Gabus has declined steadily; it has fallen by 3% compared 4 For more details on methodology, boundary and detailed results, kindly refer our website www.dystar.com to 2013 and by 17% with respect to 2012.

24 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 25 Optimize our resource consumption and reduce negative enivromental impact 1. sustainability in numbers: ENSURE SUSTAINABLE OPERATIONS

1.3 water consumption As part of our water management strategy, we focus on three main areas apart from process efficiency: Manufacturers of dyes and chemicals are major consumers of wa- At DyStar, we measure the use of water and constantly strive to find ter – either directly in their manufacturing processes or for heating ways and means to reduce consumption. and cooling. Globally, fresh water has become an extremely limited A. Recycling of Water resource. Industries are competing with local communities for fresh Most of our water requirement is met from public water supply or water supply and consequently the cost of available clean water is from surface water where we draw water from available surface wa- rising. ter bodies. Municipal supply is mostly used in our offices and R&D At DyStar, we strive to recycle water as much as possible without In 2014, we recycled 1,835,488 m3 of water which is 24.1 % of centers. At some sites, we also draw groundwater through pumps compromising on our process or product quality. Our operations our overall water consumption. The recycled quantity of water but its share is very minor in our total water balance. require large quantities of steam. At most sites, we recover the con- in 2014 is around 9% higher compared to 2013. densate and reuse it as process water. Recycled water is also used in WATER INTENSITY the cooling systems which mainly gets evaporated. The rest is used TOTAL WATER RECYCLED & PERCENTAGES (Water consumption in cubic meters per MT of production) for non-production activities such as cleaning of equipment, vessels and floors. Along with energy, water is also a key area in 2012 2013 2014 8585 85 85 our sustainability agenda and we have com- Water for cooling purpose is kept strictly separated from any chem- 7575 75 75 TOTAL WATER mitted to a reduction target of 20% by 2020. ical process. Cooling takes place through indirect heat exchange via 1,691,079 1,691,079 1,835,488 RECYCLED (m3) plate or bundle heat exchanger systems or jackets in reactor vessels 6565 65 65 In 2014, our absolute water consump- and other equipment. Because of this, the cooling water does not % 24.86% 23.74% 24.1% 5555 55 55 tion increased by around 7% from 2013 get contaminated and since it is strictly monitored, it can be directly levels. Our water consumption per MT of 4545 45 45 reused or sent back to rivers. 6,802,705 7,109,298 7,614,932 59 56 61 product has increased from 55m3 per MT 3535 35 35 of production in 2013 to 61m3 in 2014.

2525 25 25 This increase is mainly due to change in our prod- Effluent Management 1515 15 15 uct mix in 2014. This year we produced greater B. volumes of products which are highly water 5 5 5 5 intensive. We discharge our waste water in accordance with the local laws and WASTE WATER DISCHARGED regulations at all our sites. Quality and quantity of discharged water 2012 2013 2014 is maintained within the stipulated limits. All our production plants 2012 2013 2014 either have their own wastewater treatment units or are connected to external facilities. We continuously monitor and analyze our waste TOTAL WASTE WATER 1,552,400 1,691,079 1,835,488 water before discharging it to state certified treatment facilities. DISCHARGED (m3)

We use a variety of techniques – from neutralization, coagulation WATER SOURCES WATER CONSUMPTION WASTE WATER DISCHARGED and sedimentation, aerobic and anaerobic ponds and reactors, AS % OF TOTAL 22.82% 23.04% 24.03% Ground Municipal vacuum evaporator, ultra-filtration to reverse osmosis and other ad- WATER CONSUMED Water CONSUMPTION FROM Water WATER SOURCES (m3) 2012 2013 2014 vanced processes for treatment at various locations. We do not allow 2% any of our wastewater to be reused by other organizations. Ground water consumption 115,599 119,578 127,087 22% Municipal water consumption 1,333,786 1,654,851 1,672,859 Surface water consumption 5,353,361 5,334,869 5,814,986 C. Waste Water Reduction through Process Improvement TOTAL WATER 6,802,705 7,109,298 7,614,932 76% CONSUMPTION Besides the “end of the pipe” approach to treat the total effluent in turing with global supply chain management, we develop smarter the best possible way, we increasingly focus our efforts on minimiz- production plans that allow the minimization of cleaning water from ing waste water generation in the various steps of chemical pro- product change overs. Maximizing batch sizes on the various steps duction respectively on reconditioning and recycling waste water of production also contributes to the reduction of cleaning water Surface fractions on single product or even product stage level. Various ini- volume and to the improvement of overall efficiency. Water tiatives have been started at our manufacturing sites and the results will be reported accordingly. Through close alignment of manufac-

26 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 27 A. B. C. Recycling of Effluent Waste Water Water Management Reduction through Process Improvement Optimize our resource consumption and reduce negative enivromental impact 1. sustainability in numbers: ENSURE SUSTAINABLE OPERATIONS

VARIOUS MODES OF WASTEWATER TREATMENT TOTAL WASTE GENERATED TYPES OF WASTE

PRODUCTION DESTINATION OF TREATMENT TYPES OF WASTES 2012 2013 2014 FACILITY WASTEWATER METHOD Hazardous Waste (MT) 4,099 5,496 6,153 SOUTH AFRICA - Darvill Waste Water Treatment Facility Settling tanks to allow sludge to settle and for treat- 37% PIETERMARTIZBURG ment at stable pH range between 6.5 – 7.5 Non-Hazardous Waste (MT) 3,911 4,256 3,668 Hazardous BRAZIL – APUINA River Itajai Aú Chemical & biological treatment Waste TOTAL WASTE 8,010 9752 9821 63% Nanjing Chemical Industry Park / Semb- Treatment for removal of heavy metals from waste CHINA - NANJING water within the facility. Discharged to third party for Non-Hazardous corp Waste Water Treatment Plant further treatment. Hazardous Waste per t of production 0.035 0.043 0.049 Waste INDIA – ANKLESHWAR No discharge to outside; Zero Discharge Waste water is filtered, passed through ultra-filtration Non-Hazardous waste Plant. and passed through 2 stage Reverse Osmosis system per t of production 0.033 0.033 0.029

Sludge sent for offsite treatment through Overall waste 0.069 0.076 0.079 PORTUGAL - MEMMARTINS licensed contractor. Distillation through a vacuum evaporator per t of production

Neutralizing coagulation and sedimentation; discharge JAPAN – OMUTA Recycled by third party. to external treatment facility (chemical park) KEY INITIATIVES TAKEN BY OUR UNITS FOR WASTE MANAGEMENT IN 2014 THAILAND – SAMUTPRKAM Small amount, fully reused Chemical & biological treatment We dispose all our waste material in accordance with rules and ➋ At Nanjing, China: TURKEY – CORLU River Ergene Biological and chemical treatment regulations set by local governments and the guidelines stated by ● New waste collection & storage location was built and recycle regula- the pollution control boards. Hazardous waste is generally sent to USA – REIDSVILLE Sent to City of Reidsville water treatment Coagulation and pH adjustment in a flocculation tank, tion was established. In total, Nanjing plant recycled 31te of waste.. facility biological treatment and dissolved air flotation licensed contractors for safe disposal. Non-hazardous waste is gen- erally given to waste management services of local municipal au- ● Engaged qualified supplier to recycle some nonconforming prod- USA – DALTON Sent to city of Dalton water treatment Biological and chemical treatment facility thorities. None of these wastes are transported outside the physical uct and waste solvent thereby avoiding the incineration treat- boundaries of the country where the unit is located. Some of the key ment and optimizing utilization of the material. INDONESIA - GABUS No discharge to outside. Flocculation treatment, neutralization, vacuum evapora- Zero discharge to plant tion and spray drying initiatives taken by our units for waste management in year 2014 are: ➌ At Naucalpan, Mexico: CHINA – WUXI Discharge to municipal waste water Flocculation treatment, partial re-use of water treatment plant ➊ At Pietermaritzburg, Africa: ● Plastic containers were taken back from customers and washed and Monitoring and management of effluent within dis- ● Engaged services of a recycling company for segregation of reused. A total 540 containers were recovered in the year 2014. Discharge to chemical park waste water charge limits; cooling water is continuously monitored GERMANY – LUDWIGSHAFEN waste into recyclables and non-recyclables and further into haz- treatment plant (BASF) and discharged directly through the chemical park ➍ USA Production: pipeline system to the Rhine river. ardous and non-hazardous types. This helps in maintaining a ● more accurate account of waste generated. At Reidsville, reduction of 40% of trash to landfill was achieved MEXICO NAUCALPAN Small amount Biochemical treatment and discharge by implementing and further developing our recycling program ● A drive to adopt the three tier system was initiated and re- for cardboard, plastic bottles, glass, aluminum and paper. ports are generated on a monthly basis to show the amount of ● waste generated and the amount we have saved by recycling. At our Dalton unit, a total of 105 lbs of paper and 13 lbs of alumi- 1.4 handling wastes num were recycled. In our manufacturing processes, we generate large quantities of solid posed in a safe and responsible manner to licensed 3rd party dispos- and liquid waste material which are both hazardous and non-hazardous al companies. Such companies are regularly audited and evaluated 1.5 spill management in nature. Hazardous waste mainly consists of packaging material from by our operational and procurement teams. At DyStar, we have well-defined spill management procedures. There LOCATION PRODUCT(S) TOTAL VOLUME raw material supplies as well as of some product residues and residues were a small number of spills in 2013 and have made a concerted ef- OF SPILL The total amount of waste generated is correlating with our produc- OF SPILL SPILLED from the distillation recovery of solvents or from waste water treatment. fort to train our employees and contractors on safe material handling (Annual Number) tion output though it is not proportional – due to product mix ef- Such residues are of liquid or solid nature whereas the packaging material procedures. As a result of this activity, the number of spills has declined Chemical spills on fects and local reclassifications of waste material. There are also one SOUTH AFRICA – 0.842 m3 usually is solid (big bags, pallets, paper bags, in-liners of drums, etc.). We in 2014. Our target is zero spills and we are working towards this goal. cement surface-no PIETERMARITZBURG contamination of soil (6 spills) regard such packaging material as potentially hazardous since it has had time effects like the clean-up of waste water tanks and subsequent contact with chemicals and dyes. Due to the large quantity of packaging disposal of sludge that occur once every few years. Corrective actions have been taken for all the reported spillage inci- Raw materials, mainly material usage, the ratio of our hazardous waste material is more than dents. Spillages are immediately cleaned off and the loss of material TURKEY - chemicals on cement 2.39 m3 In 2014, the amount of total waste increased slightly. Although surface-no contami- 50% of the total waste material. Our non-hazardous waste mainly consists is accounted. The reasons for each event of spill are analyzed and op- KIMYA CORLU (6 spills) the amount of non-hazardous waste decreased significantly nation of soil of paper, typical household waste materials, packaging material and wood- erators are made aware of the impacts and are asked to follow safer the amount of hazardous waste increased. en or plywood pallets that do not get in contact with dyes and chemicals. handling practices in future. Production and maintenance teams have 3.232m3 TOTAL (12 spills) Due to the different product mix and with a higher degree of back- increased their efforts to identify weak points in operation (e.g. faulty At DyStar, we have systems established to ensure that proper col- wards integration, the specific quantity of waste per MT of total fin- seals, open valves, pipe connectors, pressure conditions, handling of lection, storage and handling is done before the waste is being dis ished goods has increased by a small margin. drums and bags) and implemented preventive actions to reduce the risk of spill incidents further.

28 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 29 Provide safe & environmentally friendly products to our customers 2. in a responsible way sustainability in numbers: PROVIDE RESPONSIBLE PRODUCTS & SERVICES

At DyStar, ‘Product Stewardship’ and ‘Industry Outreach’ are the two forces SUSTAINABLE MATERIAL USAGE that define our sustainable products and services endeavor. An important aspect of our product stewardship is sustainable ma- We produce a wide variety of industrial chemicals to cater to our customers in terial usage. Even where our process requirements do not allow the the textile and leather industry. We help reduce costs, shorten lead times and meet use of recycled raw material we ensure that all raw materials are quality and ecological specifications of our customers. Some of these chemicals can utilized in the most efficient way. be harmful to human health if exposure to them is not controlled properly. Material Safe- ty Data Sheets in compliance with the Globally Harmonized System or local implementing Packaging material is recycled wherever possible. In order to make legislations are provided for all our products which give detailed advice on safe handling, use our packaging in total more sustainable, we are constantly reviewing and disposal. Constant attention is given to quality control for potentially hazardous chemicals. Our our packaging requirements and try to either reduce material con- econfidence® program ensures that the risk of harmful contaminants is minimized in our products. At the sumption or to use more sustainable sources for packaging material. same time, it is our aim to provide our customers with the widest range of high quality products and services. Some of the initiatives we have taken in past few years include: ➊ Packaging and selling products in IBC containers of 1000 kg 2.1 product stewardship TRANSPARENCY IN LABELING capacity instead of 50 or 200 kg drum. & COMMUNICATIONS At DyStar, Product Stewardship is an inte- We assess all of our products for health & DyStar has built its core strength in Product ➋ Cleaning and reusing IBC containers which contained raw grated process for identifying, managing safety impacts at each stage of the product Stewardship through continuous research To safeguard our global customers, employees and supply chain materials for finished products. This has helped reduce use and minimizing the environmental, health lifecycle –product concept development, and innovation. Our R&D efforts are driven partners, it is imperative that our labeling practices are consistent of new containers. and safety impacts at every stage of a prod- R&D, registration, manufacturing, marketing by the need to provide healthier, safer and with internationally recognized standards such as CLP and GHS. We ➌ At Pietermaritzburg, South Africa, we have recycled and re- uct’s life cycle. & promotion, warehousing, distribution and more ecologically- compatible products for offer a wide range of products and by following the international used packaging materials of capacities 150 l, 220 l and 1000 l. supply, use and disposal, reuse or recycling. our customers standards, we are able to provide our global customers with details about hazardous components and other relevant information relat- ➍ At Gabus plant in Indonesia, we are reusing waste packag- PRODUCT SAFETY ed to our products. ing materials such as used pallets, used plastic drum & IBC containers. We have reduced the purchase of new packag- At DyStar, making safer products is every- requirements of REACH®. It is an assurance Our REACH registration activities make use DyStar’s Code of Conduct requires that customers are offered envi- ing material by 1.2 t per month. one’s responsibility through all hierarchy that our products are in compliance with of our huge archive of toxicological and ronmentally sustainable product solutions. We take utmost care to levels. We have a common objective to min- chemical and environmental legislation in eco-toxicological testing reports that we ensure that our products are made, handled, transported, and dis- ➎ All products as far as applicable are listed in the recycling imize the environmental, health and safety each market in which they are sold. have generated over many years. These reg- posed of safely. Our commitment to the corporate principles and program for plastic containers. impact at every stage of a product’s life cycle. istrations already cover most of the high vol- goals of maximizing safety and environmental protection guides REACH (the Registration, Evaluation, Autho- ume textile dyes that DyStar supplies to the new product and process development, handling of products, oper- ➏ We are washing and reusing drums at our site in Naucalpan, We have created the econfidence® program rization and Restriction of Chemicals) is the European market. DyStar is now focusing on ation of plants, and responsible use of resources within DyStar Mexico. to cover the product safety and ecology is- European Community Regulation on chem- registrations in the final >1te band. sues associated with the manufacturing and icals and their safe use to protect the envi- DyStar provides substantial information marketing of our products. The program now ronment and health, which came into effect Since the market for textile dyes is dominat- about the safe handling, storage, trans- plays an important role in driving sustainabil- on June 1, 2007. REACH continues to be ed by specialties, the number of REACH-reg- port, use, and disposal of its products to its ity in the textile supply chain. The econfi- the most demanding international chemi- istered chemicals will increase significantly customers, sales partners and distributors. dence program is designed to provide assur- cal legislation. REACH implementation and in the coming years up to the 2018 deadline. DyStar also welcomes the UN activities on ance to our textile customers that the dyes compliance has been a key priority at DyStar In view of this, we have already submitted Information present on development and revision of the “Globally DyStar product labels and chemicals we supply comply with legal even before the legislation came into force. the next registration dossiers to ECHA, un- Harmonized System of Classification, Label- and voluntary requirements, RSL (Restricted der REACH, as we intend to register all indi- ing and Packaging of Chemicals (GHS)” and ● All DyStar product components (over 5000 in- Content, particularly with Substance List) requirements - labels, laws & vidual substances contained in our products its national implementations. dividual chemicals) have been pre-registered regard to substances that logo’s and most importantly, comply to the within the prescribed deadlines. might produce an environ- under the EU REACH Regulation. DyStar reviews and updates its Hazard La- mental or social impact bels as well as Safety Data Sheets, for sub- stances and mixtures, in compliance with ● Safe use of product the national regulations or standards re- ● Disposal of the product and specting individual transitional periods for environmental/social impacts implementation. This helps us ensure that information on physical hazards and toxici- ty from chemicals is available in order to en- hance the protection of human health and the environment during handling, trans- port and use of chemicals, and to facilitate global trade activities.

30 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 31 Provide safe & environmentally friendly products to our customers in a responsible way 2. sustainability in numbers: PROVIDE RESPONSIBLE PRODUCTS & SERVICES

SUSTAINABLE INNOVATION Innovation is one of the core values at DyS- One of the key innovation goals for DyS- full compliance with Oeko Tex® Standard 100 2.1 industry outreach tar. We have an active Research & Develop- tar’s R&D is to help customers achieve new and meets all relevant Restricted Substance DyStar is committed to engagement with several industry associations or groups concerned with improving the sustainability of the textile ment Department tasked with developing milestones in terms of product and process Lists (RSL). It is bluesign® approved. and apparel industries, in particular in the area of better chemical management in supply chains. The details of such collaborations are given new products and processes for synthesis excellence, including shorter or more eco- in our website5. Brief updates on these activities: and application to support our leading mar- nomical dyeing procedures, reduced water The Dianix® XF2 range was also launched ket position. Our rich heritage of over 150 and energy consumption, and lower waste, in 2014. The new Dianix XF2 range consists and manufacturers with participation from Each year DyStar produces a brochure giving years of R&D includes intellectual property water and polluting effects. of five dyes. All dyes have been designed ZDHC (ZERO DISCHARGE OF academics and NGOs. The main objective product selection guidance and recommen- from our previous parent companies. This to offer excellent wet fastness performance HAZARDOUS CHEMICALS) of the SAC is to develop an index, the Higg dations for articles required to comply with has resulted in more than 1,700 patents and In 2014, we launched several new items, on critical polyester fabrics, particularly on In response to increasing pressure from new Index, which takes a full life-cycle view of Oeko-Tex® Standard 100. patent applications worldwide. for example the new Realan® Black MF-PV, polyester microfiber and polyester/elastane regulatory requirements and from NGOs, an apparel product and identifies all major which provides a completely metal free blends. They are able to meet the most de- Brands and Retailers are now requiring greater social and environmental impacts along the We build strategic collaborations with cus- dyeing process for wool. Realan Black MF-PV manding Retailer and Brands specifications chemical disclosure along the supply chain. GLOBAL ORGANIC TEXTILE production chain from cradle to grave. tomers, industry partners, institutes and provides the highest wet processing fast- for high wet-fast outlets, whilst taking into This developing trend to greater transparency STANDARD (GOTS) universities to help us understand and even ness, even higher than Mordant Black PV account the requirements of the relevant DyStar works closely with many of the and traceability is a result of companies having DyStar was one of the first companies to forecast our customers’ needs and ultimate- types and far superior to other Reactive Black RSL’s with their clean eco profile. The dyes Brand and Retailer members of the SAC in to work harder to protect their reputation and have its dyestuffs approved for use on or- ly meet them. Our high performance textile types for wool. are fully compliant with the Oeko-Tex® Stan- creating seasonal color palettes through its brand integrity from negative publicity in the ganic textiles complying with the GOTS dyes and auxiliaries have improved ecolog- dard 100 and are bluesign® approved. The media and on social networks. Color Solutions International business head- Shade and metamerism are identical to Mor- standard. DyStar offers an extensive range of ical and toxicological profiles and are of a Dianix XF2 dyes are characterized by good quartered in Charlotte, NC and in ensuring dant Black PV types with excellent build-up. A recent development has been the for- dyes and auxiliaries which are approved with consistently high quality. This enables our compatibility in exhaustion & diffusion compliance of its products with Restricted Fiber coverage of Realan Black MF-PV is by mation of the Zero Discharge of Hazardous GOTS Version 4.0. customers to apply optimized coloration for best Right-First-Time dyeing of ternary Substance List requirements through its far superior to other Reactive Black types Chemicals (ZDHC) group of Brands and Re- processes and to achieve superior technical, shades at 130 °C and furthermore they show econfidence® program. DyStar’s testing laboratory subsidiary, Tex- tailers who have committed to eliminate haz- environmental and economic performance. and even exceeds Mordant Black PV types. good build-up to dark shades. anlab is one of the few laboratories that has DyStar supports the implementation of the Realan Black MF-PV is APEO and AOX free, in ardous chemicals from their supply chains capabilities of testing Dyes, Chemicals and Chemical Management module of the Higg by 2020. This commitment to zero discharge Auxiliaries for the Textile Chemicals, Auxiliary Index at wet processing facilities through ca- was made in response to a series of reports and Dyes industry as well as for the wet pro- SUSTAINABLE SOLUTIONS FOR ALL FIBERS pacity building programs run by Sustainable and campaigns by Greenpeace. cessing industry to GOTS Standards. Since Textile Solutions. Recently, with the increase in consumer in- DyStar offers Best Available Technology (BAT) solid foundation of textile industry knowl- DyStar is an active member of the Techni- 2007, Texanlab has tested over 2800 samples terest and the establishment of third party to reduce resource consumption and mini- edge, DyStar helps its customers face the cal Advisory Committee (TAC) of the ZDHC for compliance to GOTS standards. It works bluesign® Certification systems a greater focus has mize pollution from textile wet processing. upcoming challenges of the new eco fibers Group and our Sustainable Textile Solutions closely with leading certification agencies to been given by the textile companies to the DyStar innovation processes have addressed and contribute towards realizing sustainabil- business unit provided expert input and on- DyStar is a System organize seminars to build awareness about production of sustainable fibers. New alter- both environmental concerns and econom- ity in the textile supply chain. the-ground assistance in the development of Partner of bluesign® GOTS standards and organic cotton.. natives have been investigated, developed ic realities - such as saving resources, saving an audit protocol for ZDHC. DyStar has creat- and the majority of DyStar products can be In the area of organic cotton, DyStar was and introduced to the market. Challenges costs and meeting the short lead times de- ed a positive list of products in keeping with found in the bluefinder tool established by one of the first companies to get its prod- SUSTAINABLE TEXTILE arise when these fibers have to be processed manded from the textile supply chain. its “Zero Discharge of Hazardous Chemicals” bluesign® technologies ag. DyStar has more ucts accredited for use on GOTS-approved SOLUTIONS (STS) in the industry using the available dyestuffs, commitment. This list includes those DyStar than 900 textile dyes and pigment prepara- With environmentally compliant dyestuffs, cotton and is engaged in updating its list of Sustainable Textile Solutions (STS) is dedicated auxiliaries, and chemicals. products that do not contain as intentional tions, and more than 200 textile auxiliaries highly experienced process expertise and a approved products to GOTS Version 4.0. to assisting Brands, Retailers and industry part- ingredients any of the 11 chemical groups listed in the bluefinder database. This gives ners implement sustainable textile produc- restricted by the ZDHC group. In fact, the vast manufacturers the widest possible choice of tion meeting quality and eco-requirements majority of our products do not contain any quality products to choose from when pro- and making more efficient use of resources. of these chemicals as ingredients. DyStar has ducing bluesign® approved fabric The STS programs focus on three main com- always been committed to the highest stan- ponents: consultancy, auditing and capacity dards of product safety and through its econ- OEKO TEX® building. . The services we offer include: fidence® program is actively supporting the STANDARD objectives of the ZDHC Group. 100 ➊ Restricted Substances Lists (RSL) Compliance Assessment Oeko-Tex® Standard 100 is a testing and certi- SUSTAINABLE APPAREL fication system for textile products operated ➋ ZDHC Benchmarking & Improvement COALITION (SAC) by a global network of franchised laborato- ➌ Textile Mill Efficiency Assessment ries. With over 95,000 certificates issued the DyStar is a member of the Sustainable Ap- ➍ Chemical Inventory Management Oeko-Tex® label is the best known and most parel Coalition (SAC), the collaborative ven- widespread test label for textiles in the world. ture of leading apparel retailers, suppliers 5 www.dystar.com/commitments 32 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 33 Promote good governance, improved employee relations and social responsibilities 3. in numbers: PROMOTE ETHICAL PRACTICES sustainability

3.1 employee relations Our endeavor is to become an “Employer of Choice” in the dyes & chemical Our strong focus on occupational health and safety has been corroborated industry. At DyStar, we believe our people are our most valuable asset. We pro- by significantly reduced number of Lost Days due to injury in 2014. This has re- vide an environment for them to grow and excel in their roles, and where they can duced significantly by 90% compared to 2013. With strict adherence to the health cultivate their expertise and use their knowledge to the fullest. and safety policy and practices, DyStar has successfully ensured zero fatalities in the last three reporting periods. The number of workplace injuries has reduced significantly WORKFORCE TRAINING EMPLOYEE TRAINING HOURS with respect to previous year. This is a significant progress towards safety of our employees at workplace. Only one minor incident of occupational disease was reported this year in our We have foreseen the importance of having a Turkey production plant. skilled and motivated workforce as the com- 40,00040,000 40,000 40,000 pany prepares itself to meet the challenges of growth in our industry. We will need to 35,00035,000 35,000 35,000 35,105 LOST DAYS DUE TO INJURY TOTAL WORKPLACE INJURIES be best prepared with employees, who are 30,00030,000 30,000 30,000 29,437 30 able to multi-task, face stiff competition and 300 300300 300 30 30 30 25,00025,000 25,000 25,000 ensure high productivity. Thus, our focus for 25 250 250250 250 266 25 25 25 2014 was to build a competitive workforce 20,00020,000 20,000 20,000 20 25 across all levels and functions. 200 200200 200 20 20 20 15,00015,000 15,000 15,000 184 15 We regularly review the training require- 150 150150 150 15 15 15 10,00010,000 10,000 11,98310,000 10 ments of employees and based on that an 100 100100 100 10 10 10 15 50005000 5000 5000 annual training calendar is prepared. 5 9 50 5050 50 17.5 5 5 5 Our total training hours increased by over 6000 hours in 2014 from year 2013. 2012 2013 2014 2012 2013 2014 2012 2013 2014 OUR HEALTH & SAFETY PERFORMANCE In 2014, our total workforce remained almost constant at 2200 porary, and contract employees. Our employee turnover rate is Occupational health and safety is an import- direct and long-term health risks by identi- Our strong focus on occupational health and employees from 2195 in 2013. This includes permanent, tem- 0.22% for year 2014. 5 employees left the organization in the year. ant part of our sustainability agenda. Our fying such hazards and providing informa- safety has been corroborated by significantly vision for Occupational Health & Safety is tion, training, and suitable protection. Both reduced number of Lost Days due to injury focused on all stakeholders. This includes our new and experienced employees are trained in 2014. This has reduced significantly by 90% employees, contract workers, haulage con- regularly on health and safety issues through compared to 2013. With strict adherence to 3.2 human rights practices tractors, visitors and neighbors of our sites. safety camps, toolbox talks and safety cam- the health and safety policy and practices, DyStar joined United Nations Global Compact Though we have not carried out any formal DYSTAR'S KEY HUMAN DyStar has developed and implemented a paigns. We ensure that the employees adhere DyStar has successfully ensured zero fatalities (UNGC) with the objective of strengthening assessment of our operations and of our sup- RIGHTS COMMITMENTS policy for plant safety and hazard prevention to our strict measures on PPE usage. Periodi- in the last three reporting periods. The num- our commitment towards sustainability. pliers for human rights violation or risks of ● as part of its “Guidelines for Responsible Care cal medical check-ups, followed by special ber of workplace injuries has reduced signifi- child labor but, we do not support or tolerate The international Labor Organiza- in Environmental Protection and Safety”. We treatment for those suffering from particular cantly with respect to previous year. This is The United Nations Global Compact is a stra- child labor and forced or compulsory labor tion’s (ILO) core labor standards and identify and assess the hazard potential, and health issues are arranged for the employees. a significant progress towards safety of our tegic policy initiative for businesses that are within our operations as well as in our sup- Tripartite Declaration of Principles risks associated with plant design and pro- employees at workplace. Only one minor in- committed to aligning their operations and ply chain. We do not tolerate discrimination concerning Multinational Enterprises We comply with all applicable local and na- cesses. Keeping such risks to the minimum is cident of occupational disease was reported strategies with ten universally accepted prin- based on gender, race, community or sexual and Social Policy (MNE Declaration) tional health, safety regulations and labor one of the essential criteria for the final choice this year in our Turkey production plant. ciples in the areas of human rights, labor, en- orientation. All our employees have the free- ● The Universal Declaration of Human laws, such as COIDA (Africa), OSHACT 18001 of the design and processes. New machines vironment and anti-corruption. dom of association, right to form and join Rights Act 85 of 1993, ISHL (Japan), and OSHA (USA). to be installed on-site and new products to trade unions, and collective bargaining. The We have set out our commitment to the So- ● The OECD Guidelines for Multinational be launched in the market undergo pre-req- representatives of trade unions have access DYSTAR SAFETY RECORD cial Accountability Declaration6 in the form Enterprises uisite safety assessments as per the legal to their members at the workplace. of a directive in the company’s Code of Con- norms. Our subcontractors also have to fol- ● The United Nations Global Compact DETAILS 2012 2013 2014 duct. We analyze and respond to every in- low strict guidelines to work on our sites. The Ten Principles Total Lost Days – Injury 266 184 17.50 fringement of this formal obligation. We also implementation and training is ensured by ● ensure our business partners follow these SA8000 Standards the Ecology, Health, Environment and Safety Total Occupational Disease Incidents 0 0 1 principles while discharge of services to us. ● The Responsible Care Global Charter (EHES) departments at each of our sites. Total Workplace Injuries 9 25 15 We fulfill our responsibility to provide suf- Fatalities 0 0 0 ficient protection to our employees from 6 For detailed Social Accountability Declaration refer to www.dystar.com/corporate-social-responsibility

34 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 35 Promote good governance, improved employee relations and social responsibilities 3. in numbers: PROMOTE ETHICAL PRACTICES sustainability

SOCIAL ACCOUNTABILITY DECLARATION - KEYPOINTS 3.4 compliance ● CHILD LABOR ● DISCRIMINATION ● REMUNERATION DyStar products are in full compliance with these, Corlu (Turkey) and Mem Martins (Por- In all of these reported cases, a proper root DyStar does not support or tolerate DyStar does not tolerate discrimination DyStar ensures that the wages paid the applicable chemical legislation relating tugal) units paid minor administrative fines to cause analysis has been conducted and cor- child labor within its area of responsi- on based on any race, ethnic origin, always meet at least legal or industry to health and safety in the markets in which local authorities for violation of local laws. rective actions have been implemented to bility gender, religion, philosophy, political minimum standards they are manufactured and sold. We sell over avoid any further risk of non-compliance. We or union membership, disability, age or five thousand individual chemicals and have In Nanjing, a penalty of 100000CNY was paid have also upgraded our processes to capture ● ● FORCED LABOR sexual orientation MANAGEMENT SYSTEMS made sure that each of them is pre-regis- on account of disposal of sulphuric acid; an- more relevant information now. We have DyStar does not engage in or support DyStar regularly reviews and checks tered under the EU REACH® Regulation. We other penalty of 200000CNY was paid be- established a central database which is now ● the use of forced labor DISCIPLINARY PRACTICES the adequacy and effectiveness of this strive hard to comply with all local, national cause rain water from the production site was maintained by the Global HSE function. The DyStar does not allow or engage in or directive, and strives to improve its getting mixed with local rain water collecting ● HEALTH AND SAFETY and global environmental laws. We have database includes all relevant data of waste support the use of corporal punish- contents sump. In Corlu, a penalty was imposed be- DyStar does everything it can to provide deployed very stringent processes to under- water, waste materials and by-products from ment, mental or physical coercion and cause a temporary construction space was a safe and healthy working environment stand and study non-compliances of all sorts all manufacturing sites. DyStar’s Global Com- verbal abuse of its employees and carry out root cause analysis of all such being utilized for storing drums. In Mem pliance Management function has also been ● FREEDOM OF ASSOCIATION, RIGHT incidents. Martins, a risk assessment document that had reviewed and re-organized to further increase ● WORKING HOURS TO COLLECTIVE BARGAINING been prepared by a licensed consulted was effectiveness relating to environmental com- DyStar complies with applicable laws DyStar respects the right of all person- During the reporting year, Nanjing (China) found methodologically insufficient. pliances throughout the organization. and standards nel to form and join trade unions and to production unit reported minor incidences of bargain collectively environmental non compliances. Other than

3.3 social initiatives DyStar’s social responsibility has been defined in keeping with the operations, local teams are responsible for identifying and executing main points of SA 8000, an international standard on accountability, social initiatives based on the needs of the local community. Our key and the principles of Responsible Care®. We believe in creating value initiatives with our communities in various geographies are noted for the society through community development activities. In our below:

OUR KEY SOCIAL INITIATIVES

Supporting HIV/AIDS affected in Africa: Community assistance in Mexico: ● Our production unit in Pietermaritzburg, Africa supports Tabitha ● In 2014, we donated clothes and toys to local communities in Ministries that provide assistance to the communities of Pieter- Hidalgo state. maritzburg to care for those affected by HIV/AIDS. They also run ● Made charity contribution to Mexican Red Cross the Hope Centre for orphaned and abandoned children ranging in ages from birth to 6 years old. DyStar makes monthly dona- Community service in India: tions to assist them in their efforts. Total amount donated in ● Our site representative monitors ambient air quality in our local 2014 is ZAR 30,000. community areas.

Helping the disabled in Brazil: Community service in Indonesia: ● Our Brazil production unit donates money to a charitable entity ● Provides drinking water free of cost to local people staying - APAE to support the cause of integrating the differently-able around our facility people into the society. In 2014, we have donated USD 2,000 for ● Donate staple food during Eid celebration the cause. Food donation in USA: ● The employees of DyStar’s production unit in Reidsville donated canned foods to Reidsville food bank at Thanksgiving and Christ- mas. In total around 300 lbs of food was collected. ● Employees donated clothes, toys and shoes for the needy by do- nating to the Salvation Army.

36 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 37 DATA at a glance GRI® Index

G3.1 CONTENT INDEX KPI DESCRIPTION 2012 2013 2014 APPLICATION LEVEL B

ECONOMIC STANDARD DISCLOSURES PART I: PROFILE DISCLOSURES Economic Value Generated (USD) 764,138,154 822,864,771 937,990,000 EC1 Economic Value Distributed (USD) 774,529,892 772,997,639 837,860,000 1. Strategy and Analysis

Total Purchase Value Costs (USD) 526,028,854 706,682,221 643,001,791 PROFILE LEVEL OF LOCATION REASON FOR EXPLANATION EC6 DISCLOSURE DESCRIPTION REPORTING OF DISCLOSURE OMISSION FOR REASON Amount Spent on Local Suppliers (USD) 263,173,985 434,856,785 363,409,558 OF OMISSION Statement from the most senior deci- ENVIRONMENT 1.1 sion-maker of the organization. Full Letter from the CEO

Description of key impacts, risks, and Raw Materials (MT) 103,188 111,275 114,747 1.2 opportunities. Full Letter from the CEO

EN1 Packaging Material (MT) 4,577[1] 4,770 5,679 2. Organizational Profile

Associate Materials (MT) 1,002 1,742 1,942 2.1 Name of the organization. Full About DyStar Direct Energy Consumed (KwH) W 84,511,631 93,295,159 86,926,074 Primary brands, products, and/or About DyStar: Our EN3 2.2 Full Products and Solu- services. tions Direct Energy Consumed (GJ) 304,242 335,862 312,933 Operational structure of the orga- nization, including main divisions, About DyStar: DyStar EN4 Indirect Energy Consumed (KwH) 224,203,606 251,606,027 234,905,232 2.3 operating companies, subsidiaries, and Full at a Glance joint ventures. EN8 Total Water Consumed (m3) 6,802,705 7,109,298 7,614,932 Location of organization's headquar- About DyStar: DyStar 2.4 ters. Full at a Glance EN10 Total Water Recycled (m3) 1,691,079 1,688,019 1,835,488 Number of countries where the Total Direct GHG Emissions – Scope 1 (tCO2e) 18,097 18,554 18,654 organization operates, and names of countries with either major operations About DyStar: DyStar 2.5 or that are specifically relevant to the Full at a Glance EN16 Total Indirect GHG Emissions – Scope 2 (tCO2e) 123,615 141,245 137,638 sustainability issues covered in the report.

Total GHG Intensity (tCO2e/MTof production) 1 1 1 About DyStar: DyStar 2.6 Nature of ownership and legal form. Full at a Glance Total Wastewater Discharged (m3) 1,552,400 1,638,286 1,854,050 Markets served (including geographic EN21 About DyStar: Our 2.7 breakdown, sectors served, and types Full Worldwide Presence Wastewater intensity per t of production 13 13 15 of customers/beneficiaries). About DyStar: DyStar at a Glance; Our Hazardous Waste (MT) 4,099 5,496 6,153 Worldwide Presence; and Our Products and Solutions; Non-Hazardous Waste (MT) 3,911 4,256 3,668 About DyStar: Our Economic Perfor- 2.8 Scale of the reporting organization. Full mance; Sustainability Total Waste 8,010 9,752 9,821 in Numbers: Promote EN22 Ethical Practices: Employee Relations; Hazardous waste per t of production 0 0 0 Annual Production Volume – FG w 40% Indigo Soln: 124,890 Non-Hazardous waste per t of production 0 0 0 MT Significant changes during the report- Overall waste per t of production 0 0 0 2.9 ing period regarding size, structure, or Full About the report: ownership. Scope and Boundary 3 3 3 EN23 Total number and volume of spills 38.1m 0.39 m 3.232 m (14 spills) (3 spills) (12 spills) No related awards 2.10 Awards received in the reporting Full received during the EN30 Environmental Protection Expenditure (USD) 8,147,284 8,971,565 7,191,218 period. reporting period

38 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 39 GRI® Index

EXPLANATION PROFILE LEVEL OF LOCATION REASON FOR PROFILE LEVEL OF LOCATION REASON FOR EXPLANATION DISCLOSURE DESCRIPTION REPORTING OF DISCLOSURE OMISSION FOR REASON DESCRIPTION FOR REASON OF OF OMISSION DISCLOSURE REPORTING OF DISCLOSURE OMISSION OMISSION 3. Report Parameters For organizations that have a unitary board structure, state the number and Governance at 4.3 gender of members of the highest Full DyStar Reporting period (e.g., fiscal/calendar governance body that are independent 3.1 year) for information provided. Full About the Report and/or non-executive members.

Date of most recent previous report Most recent report Mechanisms for shareholders and em- 3.2 (if any). Full was published in ployees to provide recommendations Governance at 2013 4.4 or direction to the highest governance Full DyStar 3.3 Reporting cycle (annual, biennial, etc.). Full About the Report body.

Contact point for questions regarding About the Report: Linkage between compensation for 3.4 the report or its contents. Full Your Views members of the highest governance body, senior managers, and executives Governance at About the Report: 4.5 (including departure arrangements), Full DyStar 3.5 Process for defining report content. Full Reporting Process and the organization's performance (including social and environmental Boundary of the report (e.g., coun- performance). tries, divisions, subsidiaries, leased About the Report: 3.6 facilities, joint ventures, suppliers). Full Scope and Boundary See GRI Boundary Protocol for further Processes in place for the highest Governance at guidance. 4.6 governance body to ensure conflicts of Full interest are avoided. DyStar State any specific limitations on the 3.7 scope or boundary of the report (see Full About the Report: Process for determining the composi- completeness principle for explanation Scope and Boundary tion, qualifications, and expertise of the of scope). members of the highest governance Voice of Stakehold- 4.7 body and its committees, including Full ers Basis for reporting on joint ventures, any consideration of gender and other subsidiaries, leased facilities, out- indicators of diversity. 3.8 sourced operations, and other entities Full About the Report: that can significantly affect compa- Scope and Boundary About DyStar; Gov- rability from period to period and/or Internally developed statements of ernance at DyStar: between organizations. mission or values, codes of conduct, Our code of con- 4.8 and principles relevant to economic, Full duct; Sustainability Data measurement techniques and environmental, and social performance at DyStar: Sustain- the bases of calculations, including as- and the status of their implementation. ability Committee sumptions and techniques underlying 3.9 estimations applied to the compilation Full About the Report: Procedures of the highest governance of the Indicators and other information About our Data body for overseeing the organization's in the report. Explain any decisions not identification and management of About DyStar; Gov- to apply, or to substantially diverge economic, environmental, and social ernance at DyStar: from, the GRI Indicator Protocols. 4.9 performance, including relevant risks Full Our code of con- and opportunities, and adherence or duct; Sustainability Explanation of the effect of any re-state- compliance with internationally agreed at DyStar: Sustain- ments of information provided in standards, codes of conduct, and ability Committee earlier reports, and the reasons for such No re-statements principles. 3.10 re-statement (e.g., mergers/acquisitions, Full have been published change of base years/periods, nature of business, measurement methods). Processes for evaluating the highest About DyStar; governance body's own performance, Sustainability at Significant changes from previous 4.10 particularly with respect to economic, Full DyStar: Sustainabili- reporting periods in the scope, bound- About the Report: environmental, and social perfor- ty Committee 3.11 ary, or measurement methods applied Full Scope and Boundary mance. in the report. Explanation of whether and how the Sustainability at 4.11 precautionary approach or principle is Full DyStar: Sustainabili- Table identifying the location of the addressed by the organization. ty Strategy 3.12 Standard Disclosures in the report. Full GRI Index Governance at Externally developed economic, envi- DyStar: Compliance Policy and current practice with regard About the Report: ronmental, and social charters, princi- 3.13 to seeking external assurance for the Full 4.12 ples, or other initiatives to which the Full Management; report. Reporting Process About DyStar: Mem- organization subscribes or endorses. berships

Memberships in associations (such as 4. Governance, Commitments, and Engagement industry associations) and/or national/ international advocacy organizations in which the organization: * Has positions Governance structure of the organiza- About DyStar: Mem- 4.13 in governance bodies; * Participates Full berships tion, including committees under the Governance at in projects or committees; * Provides 4.1 highest governance body responsible Full DyStar substantive funding beyond routine for specific tasks, such as setting strate- membership dues; or * Views member- gy or organizational oversight. ship as strategic.

Indicate whether the Chair of the Governance at 4.2 highest governance body is also an Full 4.14 List of stakeholder groups engaged by Full Our Sustainability executive officer. DyStar the organization. Priorities

40 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 41 GRI® Index

EXPLANATION PROFILE BASIS FOR IDENTIFICATION AND SELEC- LEVEL OF OUR SUSTAINABILITY REASON FOR EXPLANATION PROFILE LEVEL OF LOCATION REASON FOR TION OF STAKEHOLDERS WITH WHOM TO FOR REASON OF DISCLOSURE DESCRIPTION REPORTING OF DISCLOSURE OMISSION FOR REASON OF DISCLOSURE ENGAGE. REPORTING PRIORITIES OMISSION OMISSION OMISSION

Approaches to stakeholder engage- Our Sustainability 4.15 ment, including frequency of engage- Full DMA LA Disclosure on Management Approach LA ment by type and by stakeholder group. Priorities Key topics and concerns that have been raised through stakeholder engage- Sustainability in Num- 4.16 ment, and how the organization has Full Our Sustainability bers: Promote Ethical responded to those key topics and con- Priorities Employment Full Practices: Employee cerns, including through its reporting. Relations; Voice of Stakeholders Key topics and concerns that have been raised through stakeholder engage- Our Sustainability Sustainability in Num- 4.17 ment, and how the organization has Full Priorities bers: Promote Ethical responded to those key topics and con- Labor/management relations Full Practices: Employee cerns, including through its reporting. Relations; Voice of Stakeholders

Sustainability in Num- bers: Promote Ethical STANDARD DISCLOSURES PART II: DISCLOSURES ON MANAGEMENT APPROACH (DMAs) Aspects Occupational health and safety Full Practices: Employee Relations; Voice of Stakeholders

DMA EC Disclosure on Management Approach EC Sustainability in Num- bers: Promote Ethical Training and education Full Practices: Employee Letter from the CEO; Relations; Voice of Economic performance Full About DyStar: Our Eco- Stakeholders nomic Performance Aspects Sustainability in Num- Letter from the CEO; bers: Promote Ethical Market presence Full About DyStar: Our Eco- Diversity and equal opportunity Full Practices: Employee nomic Performance Relations; Voice of Stakeholders DMA EN Disclosure on Management Approach EN DMA HR Disclosure on Management Approach HR Sustainability at DyS- Sustainability in Materials Full tar: DyStar approach towards Sustainability; Non-discrimination Full Numbers: Promote Voice of Stakeholders Ethical Practices: Hu- man Rights Practices Sustainability at DyS- Energy Full tar: DyStar approach Sustainability in towards Sustainability; Freedom of association and collective Numbers: Promote Voice of Stakeholders bargaining Full Ethical Practices: Hu- Sustainability at DyS- man Rights Practices tar: DyStar approach Water Full towards Sustainability; Sustainability in Numbers: Promote Voice of Stakeholders Child labor Full Ethical Practices: Hu- Sustainability at DyS- man Rights Practices Emissions, effluents and waste Full tar: DyStar approach towards Sustainability; Sustainability in Voice of Stakeholders Prevention of Forced and compulsory Numbers: Promote Full Aspects Sustainability at DyS- labor Ethical Practices: Hu- tar: DyStar approach man Rights Practices Products and services Full towards Sustainability; Voice of Stakeholders Sustainability at DyS- DMA SO Disclosure on Management Approach SO Compliance Full tar: DyStar approach towards Sustainability; Sustainability in Voice of Stakeholders Local communities Full Numbers: Promote Sustainability in Ethical Practices: Social Initiatives Transport Partial Numbers: Sustain- Aspects able Operations Sustainability in Sustainability at DyS- Compliance Full Numbers; Voice of tar: DyStar approach Stakeholders towards Sustainability; Overall Partial Voice of Stakehold- ers; Sustainability in Numbers: Sustainable Operations

42 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 43 GRI® Index

EXPLANATION EXPLANATION PROFILE DESCRIPTION LEVEL OF LOCATION REASON FOR FOR REASON OF PERFORMANCE DESCRIPTION LEVEL OF LOCATION REASON FOR FOR REASON OF DISCLOSURE REPORTING OF DISCLOSURE OMISSION OMISSION INDICATOR REPORTING OF DISCLOSURE OMISSION OMISSION

DMA PR Disclosure on Management Approach PR ENVIRONMENTAL

Sustainability in Materials Numbers: Respon- Customer health and safety Full sible Products and About DyStar: Data at Services: Product EN1 Materials used by weight or volume. Full a Glance Stewardship Sustainability in Sustainability in Numbers: Respon- Numbers: Respon- EN2 Percentage of materials used that are Partial sible Products and Not available Product and service labeling Full sible Products and recycled input materials. Services: Product Services: Product Stewardship: Sustain- Stewardship able Material Usage Aspects Sustainability in Energy Numbers: Respon- Marketing communication Full sible Products and Sustainability in Services: Product Direct energy consumption by primary Full Numbers: Sustainable Stewardship EN3 energy source. Operations: Optimal Utilization of Energy Sustainability in Numbers: Respon- Sustainability in Compliance Full sible Products and Indirect energy consumption by prima- Full Numbers: Sustainable Services: Product EN4 ry source. Operations: Optimal Stewardship Utilization of Energy Sustainability in Energy saved due to conservation and Numbers: Sustainable EN5 efficiency improvements. Fully Operations: Optimal Utilization of Energy STANDARD DISCLOSURES PART III: PERFORMANCE INDICATORS Initiatives to provide energy-efficient or renewable energy based products Sustainability in EN6 and services, and reductions in energy Partial Numbers: Sustainable Not available requirements as a result of these Operations: Optimal ECONOMIC initiatives. Utilization of Energy Sustainability in Economic performance Initiatives to reduce indirect energy Numbers: Sustainable EN7 consumption and reductions achieved. Partial Operations: Optimal Not available Utilization of Energy Direct economic value generated and distributed, including revenues, operating costs, employee compensa- About DyStar: Our Water EC1 tion, donations and other community Partial Economic Perfor- Not available investments, retained earnings, and mance Sustainability in payments to capital providers and Numbers: Sustainable governments. EN8 Total water withdrawal by source. Full Operations: Water Consumption Sustainability at DyStar: DyStar's ap- Sustainability in Financial implications and other risks proach to Sustainabil- Percentage and total volume of water Full Numbers: Sustainable EC2 and opportunities for the organiza- Partial ity; Sustainability in Not available EN10 recycled and reused. Operations: Water tion's activities due to climate change. Numbers: Sustainable Consumption Operations: Optimal Utilization of Energy Emissions, effluents and waste Market Presence Total direct and indirect greenhouse Sustainability in EN16 gas emissions by weight. Full Numbers Range of ratios of standard entry level Sustainability in wage by gender compared to local Numbers: Promote Sustainability in EC5 minimum wage at significant locations Full Ethical Practices: Hu- Numbers: Sustainable of operation. man Rights Practices Initiatives to reduce greenhouse gas Operations: Manage EN18 emissions and reductions achieved. Full our Emissions; and Policy, practices, and proportion of About DyStar: Our Optimal Utilization of EC6 spending on locally-based suppliers at Partial Economic Perfor- Proprietary Energy significant locations of operation. mance; Data at a information Glance Sustainability in Total water discharge by quality and Numbers: Sustain- EN21 destination. Full able Operations: Indirect economic impacts Water Consumption

Sustainability in Understanding and describing Sustainability in Numbers: Promote EN22 Total weight of waste by type and Full Numbers: Sustain- EC9 significant indirect economic impacts, Partial Ethical Practices: Not available disposal method. able Operations: including the extent of impacts. Social Initiatives Handling Wastes

44 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 45 GRI® Index

EXPLANATION PERFORMANCE LEVEL OF LOCATION REASON FOR PERFORMANCE LEVEL OF LOCATION REASON FOR EXPLANATION INDICATOR DESCRIPTION REPORTING OF DISCLOSURE OMISSION FOR REASON OF DESCRIPTION FOR THE REASON OMISSION INDICATOR REPORTING OF DISCLOSURE OMISSION OF OMISSION

Sustainability in Sustainability in Total number and volume of significant Numbers: Sustain- Numbers: Promote EN23 Full Health and safety topics covered in Ethical Practices: Em- spills. able Operations: Spill LA9 Full Management formal agreements with trade unions. ployee Relations: Our Health and Safety Performance Products and services Training and education Sustainability in Initiatives to mitigate environmental Numbers: Respon- Average hours of training per year per Sustainability in sible Products and LA10 employee by employee category. Full Numbers EN26 impacts of products and services, and Partial Services: Product Not material extent of impact mitigation. Stewardship; and Industry Outreach SOCIAL: Human Rights Sustainability in Percentage of products sold and their Numbers: Respon- Investment and procurement practices EN27 packaging materials that are reclaimed Partial sible Products and Not available by category. Services: Product Stewardship: Sustain- Percentage of significant suppliers, Sustainability in able Material Usage contractors and other business Numbers: Promote HR2 partners that have undergone human Partial Ethical Practices: Hu- Not available Compliance rights screening, and actions taken. man Rights Practices

Monetary value of significant fines Sustainability in Freedom of association and collective bargaining EN28 and total number of non-monetary Full Numbers: Promote sanctions for non-compliance with Ethical Practices: Operations identified in which the environmental laws and regulations. Compliance right to exercise freedom of association Sustainability in HR5 and collective bargaining may be at Full Numbers: Promote Overall significant risk, and actions taken to Ethical Practices: Hu- support these rights. man Rights Practices Total environmental protection expen- Sustainability in EN30 ditures and investments by type. Full Numbers Child Labor

Operations identified as having signif- Sustainability in SOCIAL: Labor Practices and Decent Work icant risk for incidents of child labor, Numbers: Promote HR6 and measures taken to contribute to Full Ethical Practices: Hu- the elimination of child labor. man Rights Practices Employment

Sustainability in Prevention of forced and compulsory labor Total workforce by employment type, Partial Numbers: Promote Not available LA1 employment contract, and region. Ethical Practices: Operations identified as having Employee Relations Sustainability in significant risk for incidents of forced Numbers: Promote HR7 or compulsory labor, and measures to Full Ethical Practices: Hu- Total number and rate of employee Sustainability in contribute to the elimination of forced Numbers: Promote or compulsory labor. man Rights Practices LA2 turnover by age group, gender, and Partial Ethical Practices: Not available region. Employee Relations SOCIAL: Society Labor/management relations Local communities Sustainability in Percentage of employees covered by Numbers: Promote LA4 collective bargaining agreements. Full Ethical Practices: Hu- Percentage of operations with imple- Sustainability in man Rights Practices mented local community engagement, Numbers: Promote SO1 impact assessments, and development Fully Ethical Practices: programs. Social Initiatives Occupational health and safety Anti-competitive behavior Percentage of total workforce Sustainability at represented in formal joint manage- Total number of legal actions for About DyStar: Mis- ment-worker health and safety com- DyStar: Sustainability sion; and Core Values: LA6 Partial Strategy & Commit- Not available anti-competitive behavior, anti-trust, Full Responsibility; Gov- mittees that help monitor and advise tee: Sustainability SO7 and monopoly practices and their on occupational health and safety outcomes. ernance at DyStar: programs. Committee Code of Conduct

Sustainability in Compliance Rates of injury, occupational diseases, Numbers: Promote LA7 lost days, and absenteeism, and num- Full Ethical Practices: Em- Monetary value of significant fines ber of work-related fatalities by region ployee Relations: Our and total number of non-monetary and by gender. Health and Safety SO8 sanctions for non-compliance with Full None Performance laws and regulations.

46 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 47 GRI® Index UNCG Index

EXPLANATION PERFORMANCE DESCRIPTION LEVEL OF LOCATION REASON FOR FOR THE REASON THE TEN PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT INDICATOR REPORTING OF DISCLOSURE OMISSION OF OMISSION

SOCIAL: Product Responsibility UNGC Description Page / Section Principle Customer health and safety

Life cycle stages in which health and Sustainability Support and respect pro- safety impacts of products and services in Numbers: Sustainability in Numbers - Human Rights Practices; Governance at are assessed for improvement, and Responsible 1 tection of internationally DyStar – Our Code of Conduct PR1 percentage of significant products and Full Products and proclaimed human rights services categories subject to such Services: Product procedures. Stewardship

Make sure business is not Total number of incidents of non-com- Sustainability in Numbers - Human Rights Practices; Governance at pliance with regulations and voluntary 2 complicit in human rights DyStar – Our Code of Conduct PR2 codes concerning health and safety im- Full None abuses pacts of products and services during their life cycle, by type of outcomes. Uphold freedom of asso- Product and service labeling ciation and the effective Sustainability in Numbers - Human Rights Practices; Governance at 3 DyStar – Our Code of Conduct Sustainability recognition of the right to Type of product and service infor- in Numbers: collective bargaining mation required by procedures, and Responsible PR3 percentage of significant products and Full Products and services subject to such information Services: Product requirements. Stewardship Support elimination of all Sustainability in Numbers - Human Rights Practices; Governance at 4 forms of forced and com- DyStar – Our Code of Conduct Total number of incidents of non-com- pulsory labor pliance with regulations and voluntary PR4 codes concerning product and service Full None information and labeling, by type of outcomes. Support effective abolition Sustainability in Numbers - Human Rights Practices; Governance at 5 Marketing communications of child labor DyStar – Our Code of Conduct

Programs for adherence to laws, stan- Sustainability dards, and voluntary codes related to in Numbers: PR6 marketing communications, including Fully Responsible Eliminate discrimination in advertising, promotion, and sponsor- Products and Sustainability in Numbers - Human Rights Practices; Governance at Services: Product 6 employment and occupa- DyStar – Our Code of Conduct ship. Stewardship tion

Total number of incidents of non-com- pliance with regulations and voluntary codes concerning marketing com- Support a precautionary PR7 munications, including advertising, Full None Sustainability in Numbers - Sustainable Operations and Responsible promotion, and sponsorship by type of 7 approach to environmental Products outcomes. challenges

Compliance Undertake initiatives to Sustainability in Numbers - Sustainable Operations and Responsible Sustainability Monetary value of significant fines for 8 promote greater environ- Products non-compliance with laws and regula- in Numbers: mental responsibility PR9 Full Promote Ethical tions concerning the provision and use Practices: Com- of products and services. pliance Encourage the develop- ment and diffusion of Sustainability in Numbers - Sustainable Operations and Responsible 9 environmentally friendly Products technologies

Work against all forms of 10 corruption, including extor- Sustainability in Numbers - Human Rights Practices tion and bribery

48 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 49 your views

Your feedback is important to help us improve our sustainability performances as well as future reporting. Please find time to answer the following questions:

1. How are you related to DyStar? Choose any of the below options: ¡ Employee ¡ Shareholder ¡ Customer ¡ Supplier ¡ Regulatory Body ¡ Local Community ¡ Industry Association ¡ Media ¡ Others (please specify)______

2. Your view of the reporting quality (Check in the appropriate circle) ¡ Excellent ¡Good ¡Needs Improvement ¡Poor

3. Which of the following aspects are ‘Excellent” or “Good”? (You can check more than one) ¡ Layout & Design ¡Quality of Information provided ¡Neutrality ¡Ease of understanding ¡Information Flow/navigation

4. Which of the following aspects are “Poor” or “Needs improvement”? (You can tick more than one) ¡ Layout & Design ¡Quality of Information provided ¡Neutrality ¡Ease of understanding ¡Information Flow/navigation

5. How do you rate our following sustainability performances? (a) Economic Performance ¡Excellent ¡Good ¡Needs Improvement ¡Poor

(b) Environmental Performance ¡Excellent ¡Good ¡Needs Improvement ¡Poor

(c) People Performance ¡Excellent ¡Good ¡Needs Improvement ¡Poor

(d) Product Performance ¡Excellent ¡Good ¡Needs Improvement ¡Poor

(e) Social Performance ¡Excellent ¡Good ¡Needs Improvement ¡Poor

6. Any other comments/ suggestions______

______

______

7. Details of the respondent:

a. Name:______

b. Company:______

c. Contact Details (email/phone number):______

Please email your responses to: Ms Sherrie Xu, Global Sustainability Manager, DyStar Singapore Pte Ltd Email: [email protected]

50 DyStar sustainability performance report 2014 DyStar sustainability performance report 2014 51 Committed to sustainability At DyStar, our products and services help customers worldwide reduce costs, shorten lead times and meet stringent quality and ecological specifications.

Raunheim Ludwigshafen

Milan Porto Istanbul Kyunggi-do Reidsville, NC Corlu Osaka Dalton, GA Charlotte, NC Mem Martins Nanjing Wuxi Cairo Ankleshwar Omuta Karachi Shanghai Naucalpan Taipei Navi Mumbai Dhaka Hong Kong Mexico City Samutprakarn Medellin Singapore Quito Jakarta Lima Gabus Global Headquarters DyStar Office São Paulo Apiúna Key Production Site Pietermaritzburg

Information and our technical advice - whether verbal, in writing or by way of trials - are given in good faith but without warranty, and this also applies where proprietary rights of third parties are involved. Our advice does not release you from the obligation to check its validity and to test our products as to their suitability for the intended processes and uses. The application, use and processing of our products and the products manufactured by you on the basis of our technical advice are beyond our control and, therefore, entirely your own responsibility. Our products are sold in accordance with our General Conditions of Sale and Delivery.

Bluesign is registered trademark of bluesign technologies ag, Switzerland. ETAD is registered trademark of The Ecological and Toxicological Association of Dyes and Organic Pigments Manufacturers (ETAD), Switzerland. GRI is registered trademark of Stichting Global Reporting Initiative, The Netherlands. Öko-Tex is registered trademark of Forschungsinstitut Hohenstein Prof. Dr. Jürgen Mecheels GmbH & Co. KG, Germany. REACH is registered trademark of The European Union, represented by the European Commission, Belgium.

Astrazon, Boehme, Cassulfon, Dianix, Evo, Imperon, Indanthren, Isolan, Jettex, Lava, Levafix, Palanil, Procion, Realan, Remazol, Sera, Sirius, and Supralan are registered trademarks of DyStar Colours Distribution GmbH, Germany.

Global Headquarters DyStar Singapore Pte Ltd

Tel: +65 66 71 28 00 Fax: +65 66 59 13 28 [email protected] www.DyStar.com 100.0001.00.1508