SUSTAINABILITY REPORT 2002 An overview of Trelleborg’s activities in areas related to the environment, health and social responsibility Innehållsförteckning Trelleborg in

Trelleborg in brief 2 brief President’s message 4

Organization, management system and ground rules 6 This is Trelleborg Trelleborg is a global industrial company that manufactures products largely Performance in the sustainability area based on the many application areas for rubber. Environment The Group has approximately 15,000 employees in 40 countries. The head Five years in brief 10 office is in Trelleborg, southern Sweden. The CEO is Fredrik Arp and the Chair- Environmental objectives 10 man of the Board of Directors is Anders Narvinger. Laws and conditions 10 Trelleborg AB was founded in 1905 and has built up leading-edge expertise in polymer technology and its areas of application. During the past few years, Utilization of natural resources 11 Trelleborg has successfully concentrated its operations to a core of four industrial Emissions to air and water 13 business areas within which understanding of customer needs and expertise in Waste 14 polymer technology are mutually reinforcing. Today, operations focus on customers Products and the environment 14 in the automotive, construction and other industries. Transports and the environment 15 Trelleborg endeavors to achieve market leadership within clearly demarcated Suppliers and the environment 15 product and market areas. Today, products with leading positions account for When things did not go as planned 15 approximately 80% of the core operations’ sales.

Health and social responsibility Employees in many countries 16 Personal development and participation 16 Contacts with the community 16 Work environment 18

Environment and finance Environment-related costs 19 Environment-related investments 19 Environment-related savings 19

Performance of Trelleborg’s business areas Trelleborg Automotive 20 Trelleborg Wheel Systems 21 Trelleborg Engineered Systems 22 Trelleborg Building Systems 23 Important sustainability work under development 24

Accounting principles and glossary 26 Key figures 2002 2001

Net sales, SEK M 17 630 18 760 Operating profit, excluding noncomparable items, SEK M 1 021 1 134 Profit after net financial items, excluding noncomparable items, SEK M 902 976 Production: Trelleborg AB Cash flow from operations, SEK M 1 036 1 395 Return on capital employed, excluding Questions regarding the Sustainability Report will be goodwill amortization, % 11,7 12,2 answered by Vice President, Environmental affairs, Return on shareholders’ equity, % 5,5 6,3 Return on shareholders’ equity, excluding Torbjörn Brorson noncomparable items, % 8,3 8,9 Equity/assets ratio, % 48,1 44,2 E-mail: [email protected] Earnings per share, SEK 4,75 5,35

Hållbarhetsredovisningen finns även på svenska Highlights during the year for sustainable development

Trelleborg formulates a Code of Conduct and related policies.

Trelleborg publishes its first Sustainability Report.

The Group has now introduced the ISO 14001 environmental management standard at 47 plants.

Many plants are applying measures to improve the work environment and reduce environmental impact.

The Group engages in extensive cooperation with universities and institutes of technology in the environmental area.

Business concept Based on its extensive knowledge of polymer technology, markets and customers, Trelleborg develops, manufactures and markets function- ally oriented products, systems and services.

Objective Trelleborg’s goal is to capture leading positions and create economies of scale within the areas of research and development, production, marketing and service.

Solid strategic platform Vision Trelleborg’s operations are based on four Trelleborg’s vision is to be one of the leading strategic cornerstones that serve as guide- global industrial companies within primarily lines for continued expansion: the polymer area by offering: •Focused operations. •Our customers products, systems and • Leading positions in attractive segments. services of the highest total value. •Decentralized organization. •Our employees a stimulating work •Strongly results-oriented. environment in which to develop. •Our shareholders a favorable long-term return on their investment.

3 CEO Fredrik Arp:

“Sustainable development is about economic growth, social development and a healthy environment”

We are pleased to present Trelleborg’s first Sustainability Report Sustainable development is about economic growth, social development and a healthy environment. Both individual com- panies and the business community as a whole play a decisive role in this work. Unfortunately, it cannot be denied that the initial years of the new millennium have We do not regard environ- been characterized by a difficult eco- nomic climate for the world in general ”ment and social respon- and for individual companies. At Trelleborg, we work to create sibility as an optional financial value-added for our stakeholders without compromising the high standards activity but as something we set in terms of our environmental and social responsibilities. The latter commit- that is integral to every- ment is generally known as Corporate thing we do Social Responsibility (CSR). We do not regard CSR as an optional activity but as something that is integral to everything we do. It is Trelleborg’s ” wish to continue to be welcomed as a respected company in all areas.

Successful focus on environmental management systems As we review the handling of environmental issues within the Group in a five-year perspective, it is pleasing to note that our efforts to establish a systematic approach in our environmental work have been successful. We now have 47 plants with certified environmental management systems (based on ISO 14001), and the number of certified plants is growing steadily. The focus on environmental management systems has been timely, and the Group is well prepared to meet increasing demands in

4 the environmental area, including those from key customers in universities, schools, sports associations and philanthropic the automotive industry. Both the Group as a whole and the organizations. During 2002, we worked on the development of individual plants show positive results in a number of areas guidelines relating to the environment, health and social respon- relating to improved environmental performance. Reduced sibility. I am therefore pleased to be able to present, in this emissions, fewer work-related accidents and more efficient Sustainability Report, the Group’s Code of Conduct and new waste management are examples of our success in these areas. sets of guidelines relating to the workplace and the company’s relations with suppliers. Our aim is to send clear signals via Products with reduced environmental impact these documents to our employees and other stakeholders. By focusing on research and development, we develop products Now we are facing a new year that will also bring many with new characteristics. In many cases, the result of product challenges. Together with issues relating to finance, production development is not only that products have better technical char- structure and development of new products, the aspects con- acteristics but also that their environmental impact is reduced. Our cerning the natural environment, the work environment and new waterproofing materials, for ex- social relations remain important for ample, with their longer lifetime and Our efforts to estab- us. I hope that both our employees and lower weight, cause less environmental our external stakeholders will enjoy impact during their lifetime. Regardless ”lish a systematic reading Trelleborg’s Sustainability Report. of these successes, there are a number You are also welcome to visit our of significant environmental and work- approach in our envi- Internet website, which contains more environment aspects that will be part information about the Group’s activi- of the picture for many years to come. ronmental work have ties in this area. One example is society’s focus on chemi- cal issues, with explicit demands that been successful Trelleborg, March 2003 substitutes be found for hazardous sub- stances in processes and products. The demands for more efficient ” use of natural resources are also a challenge that affects us in regard to both energy utilization and waste-management issues.

Code of Conduct Fredrik Arp President and CEO Within the social area, we are constantly working to implement measures relating to the health, safety and personal development of employees. We also engage in socially oriented activities at various levels. This may, for example, involve contacts with

5 Organization, management systems and ground rules

Organization Environmental management Sustainability work within the Trelleborg systems Group is decentralized in many respects, Trelleborg’s environmental management and based on the circumstances at the systems are based on the principle that various plants. Formal responsibility for each production facility introduces and issues relating to the environment, health maintains an environmental management and safety, and for social issues, resides system in accordance with the require- within the various line organizations. All ments set forth in ISO 14001. During of Trelleborg’s plants have environmental the years 1998-2002, Trelleborg imple- managers or environmental coordinators. mented numerous measures to introduce Responsibility mainly rests with the site ISO 14001, and a total of 47 plants are managers, who are required to manage currently certified. At many of these plants, their operations in accordance with: the environmental management system •Trelleborg’s values, Code of Conduct is integrated with the quality and work- and policies, environment systems. • Legal and other requirements, •Standards and guidelines issued by Ground rules the Trelleborg Group, The Group’s environmental policy, pub- • The requirements set forth in the lished in 1998, sets forth the basic ground environmental management standard rules for the environmental and work- ISO 14001. environment areas. To ensure that our ambitions are realized and to follow up what is happening, a number of steering Number of plants with ISO 14001 certification documents are used at both the Group and local levels. Certified plants 50 During 2002, we complemented the

40 environmental policy with a Code of Conduct that defines the ground rules 30 from an overall perspective. The Group 20 also adopted a Workplace policy and a Supplier-relationship policy during the 10 year. These undertakings relate to employee 0 health, safety, personal development and 1997 1998 1999 20002001 2002 participation. It is also important that Trelleborg ISO 14001 certificates by country plays a positive role in social devel-

Brazil 2% Mexico 2% opments in the countries where USA 13% Sweden 34% the Group is active. This may, for example, involve partici- Norway 2% Italy 2% pation in networks, open contacts with neighbors and France 13% residents of municipalities, Canada 2% financial support to various Denmark 2% Netherlands 4% UK 13% organizations and coopera- Spain 10% tion with schools and universities.

6 7 Code of conduct Business at Trelleborg will be conducted in Vision, business concept and objective accordance with the following principles: •We respect the rights of the indi- vidual, act in accordance with fair business, marketing and advertising practices and are committed to con- Core values tinuously developing the safety and quality of our products. •We respect the rule of law, conduct our business with integrity and honesty and Code of conduct are accountable for our actions. •We continually work to reduce our impact on the environment and health. •We do not engage in illegal industry cooperation. Supplier- Environmental Workplace relationship •We do not accept the offering, request policy policy policy Future policies or acceptance of bribes. We encourage our employees to avoid situations in which loyalty to the company may Local steering documents (policies, manuals, procedures, instructions, etc.) come into conflict with other, per- sonal interests.

8 Organization, management systems and ground rules

Workplace Policy •We shall economize on energy, water •We shall evaluate environmental per- Our fundamental principle is that we and other natural resources. The en- formance by monitoring emissions and respect our employees and their human vironmental aspects shall be taken though frequent environmental audits. rights. into account whenever we choose raw We will continually strive to improve materials, chemical products and dis- our environmental performance. •We will not apply special treatment tribution systems. to employees in regard to employment •We shall minimize waste and emissions Supplier Relationship Policy or work assignments on the basis of from our production plants and from Trelleborg is committed to work with gender, race, religion, age, disability, our other activities. suppliers who adhere to our quality sexual orientation, nationality, political •We shall have safe workplaces and requirements and business principles. opinion, or social or ethnic origin. ensure that our personnel training We will strive to support positive changes •We will respect our employees’ right programs prepare our employees to in regard to quality, the natural environ- to be represented by unions and perform their work in the best pos- ment and the work environment. other employee representatives. sible way. •We will continue to work together •In our research and development •We will support and continuously with our employees to create safe operations, we shall strive for envi- evaluate the performance of our workplaces. We will provide the rel- ronmentally sound technologies, suppliers. evant safety training. products and packaging. •We will encourage suppliers to imple- •Wages and salaries will be paid as •Whenever we change processes, plants ment certifiable quality and environ- agreed and on time. Overtime will and products, we shall use the opportu- mental-management systems. be properly compensated. We will nity to make environmental adaptations. •We will insist that suppliers follow recognize good performance and •We shall maintain sound emergency legal requirements, relevant to their extra efforts. preparedness by systematically evalu- operations, and continuously work to •We recognize the need for a healthy ating the risk of accidents, fires and reduce environmental and health balance to be maintained between uncontrolled emissions to the envi- impacts from processes, services and work and free time for all employees. ronment. products. •We do not allow child labor. The •We shall inform customers, suppliers •We will include environmental and minimum age for working in our and contractors about our environ- social requirements in contracts with operations will be the age of 15, and mental work and, in cooperation suppliers. Specifically we do not allow: not younger than the compulsory with them, strive to achieve mutual (I) discrimination of employees, (II) school age in individual countries. improvements. unsafe working conditions, (III) child •We do not allow the use of illegal •We shall provide open and objective labor, (IV) illegal forced labor, (V) forced labor in any of our operations. information about our environmental conscious breach of environmental work to our employees, the general laws. In any incidences of non-compliance public and the authorities. • When a supplier is found not to be with our policies, employees are encour- •We shall comply with current environ- following an agreed specification, we aged and expected to report them to mental legislation and develop long- will consider appropriate actions, management for corrective actions. term plans related to national and in- including demands for corrective ternational legislation in the areas of measures, or termination of the rela- Environmental Policy the environment, health and safety. tionship. Based on our approach to environmental •We shall comply with the require- issues, we are dedicated to complying ments of ISO 14001 and/or EMAS with national and international commit- at our existing production plants. ments that strive for a sustainable society Tasks and responsibilities within the over the long term. Our objective is that framework of the environmental- the activities of the Trelleborg Group management system shall be clarified. shall not harm the environment or have Environmental objectives and action a negative effect on human health. plans shall be prepared at every plant.

9 Performance in the sustainability area Environment

Five years in brief Environmental objectives The focus of Trelleborg’s operations has The various plants define their own short- changed during the past five years due to term and long-term environmental objec- the acquisition of many companies in tives and action plans. These are followed the polymer industry. At the same time, up not only at the local level but also operations in the areas of mining and through the Group’s environmental distribution have been divested. An exami- reporting system. The most common nation of the environmental performance objectives for 2002 related to: of the Group as a whole shows that figures •Introduction of ISO 14001 and for parameters such as energy consump- training in environmental and safety

Five-year summary

Energy consumption Carbon dioxide VOC emissions Waste quantity Work-related emissions accidents Year GWh GWh/ Tons Tons/ Tons Tons/ Tons Tons/ Accidents leading employee employee employee employee to sick leave per 1,000 employees 1998 623 0.04 85,000 6.1 516 0.04 25,500 1.8 64 1999 760 0.06 101,400 8.0 505 0.04 31,700 2.5 43 2000 1012 0.08 129,200 10.5 1,189 0.1 33,000 2.7 54 2001 1135 0.07 146,360 9.0 1,528 0.1 43,390 2.6 58 2002 1164 0.08 129,000 8.7 1,735 0.1 47,360 3.2 58

tion, atmospheric emissions and waste issues. During 2002, 14 plants were quantities have increased in absolute certified. terms. This is attributable not only to the •Measures to achieve energy and water Group’s expansion, but also to the fact that savings. the production focus of the newly acquired •Finding substitutes for chemicals that operations generates emissions and other represent a hazard to health and the forms of environmental impact. This ap- environment. plies, for example, to atmospheric emis- •Reduced waste quantities and improved sions of solvents (VOCs) and greenhouse waste management. gases (carbon dioxide). The reader may •Improved work environments and also note that the environmental impact fewer work-related accidents. Risk per employee has shown a certain degree assessments were performed at many of variation over the past three years. plants in Europe and training programs The introduction of environmental were implemented. During 2002, the management systems and more stringent Group invested approximately SEK 34 M environmental legislation has had the effect in measures to create safer workplaces. of reducing environmental impact per em- •Reduced atmospheric emissions. ployee at a number of plants. A more com- Among other items, the objectives prehensive reporting system and reductions included investments in air-cleaning in the number of personnel have the oppo- equipment. Investments aimed at site effect on key figures. In the Sustain- reducing atmospheric emissions ability Report, we elucidate the environ- amounted to some SEK 16 M in 2002. mental, health and social aspects as they re- late to the Group and the business areas by Legal requirements and conditions describing a number of parameters in the The Group has about 80 production units shorter and longer perspective. in Europe, Asia, and North and South

10 America. The majority of plants require soil contamination. Trelleborg, for example, ity. Studies and measures to increase the permits according to national law and are surveys the soil and groundwater situation efficiency of energy use were implemented subject to regular inspections by the local in conjunction with the acquisition of at several locations. Nearly 60% of authorities. Some smaller units are not clas- companies. The soil situation has been plants report lower or similar levels of sified as requiring permits. The majority of examined at many of Trelleborg’s plants, consumption compared with previous production plants have permits with expiry and various types of soil and groundwater years. In the case of plants that report dates at the end of the 1990s. During contamination have been identified in a higher energy consumption, the main 2002, existing permits were updated and number of cases. Contaminants such as reason for the change is increased pro- applications for new permits submitted in heavy metals, oils and solvents reflect the duction. Energy costs amounted to SEK respect of approximately 25 plants. In- long history of the rubber industry, and 358 M during 2002. fringements of specific permit conditions decontamination measures have been occurred at plants in Turkey (emissions to initiated or already completed at a num- Water consumption air), Germany (storage of hazardous waste), ber of plants (see table on page 12). Water is employed at Trelleborg’s plants the US (waste, wastewater, work environ- Decontamination costs are reported in for cooling, cleaning, purifying metals ment), Sweden (noise, late environmental the “Environment and finance” section (phosphatizing), and sanitation. During reporting), the UK (emissions to air), Italy of this report. 2002, the Group’s plants consumed 5.4 (noise), Spain (noise, wastewater), China million m3 of water (5.7). Some water is (noise, wastewater), France (noise, waste- Energy use purchased from municipalities or cities, water, Legionnaires’ disease), and the Within Trelleborg, energy is used for but approximately 70% is pumped from Netherlands (inadequate fire safety). heating, steam production, ventilation, the Group’s own wells or from water- cooling, processes, equipment operation courses in the vicinity of the plants. Water Utilization of natural resources and transportation. The Group’s total consumption remains high at some of Soil-related issues energy consumption during 2002 (exclud- the Group’s plants. Water costs amounted Stricter legislation, high decontamination ing transports) amounted to 1,164 GWh to approximately SEK 16 M during 2002. costs and increasing environmental (1,135), which is about the same as the awareness have prompted many companies figure for 2001. The most important Raw materials and chemical products to apply preventive measures to prevent energy sources are fossil fuels and electric- Trelleborg uses substantial amounts of

11 Performance in the sustainability area

raw materials and chemical products. hazardous substances or restricting their high-aromatic (HA) oils and certain The risk to people and the environment use to closed processes. At Trelleborg, the antioxidants and accelerators has declined can be reduced by eliminating the use of use of heavy metals, chlorinated solvents, over the years. Areas where we have

Energy consumption distributed by energy source Plants with substantial energy consumption Plants with substantial water consumption

3 Other 1% Energy consumption (GWh) Water consumption (1000 x m ) 550 3,000 Oil 21% 500 450 2,500 400 350 2,000 Electricity 300 1,500 44% 250 200 1,000 150 100 500 50 0 0 rg d t a xi r i rg y t Tivoli efou be an spor nd Wu ste nts Tivoli and Wux o II lleborg Iartville reu err ska r pla err lleborg I Natural gas 32% Tre H Carqu B t-F gan uga Leicethe Hartville Värnam BreubeSanduskTre Carquefou Coal 2% rmon Lo ap O ont-F LogansporOther plants Cle S Clerm

Plant Type of contaminant Status Trelleborg I, Sweden Heavy metals, solvents. Extensive surveys and decontamination performed 1995-2000. Results of solvent decontamination being monitored via regular sampling. Small quantities of heavy metals remain in the area. Trelleborg Trebolit, Sweden Creosote contamination, probably Comprehensive surveys conducted during 2000-2002, the results dating from the beginning of the of which were communicated to the authorities. Decontamination 20th century. Trelleborg AB took methods, costs and financing currently being investigated. No over operations in 1998. industrial operations currently conducted at the plant. Ridderkerk, Netherlands Oil and solvents. Decontamination initiated in 1992. Supplementary soil surveys in progress. Ede, Netherlands Oil. Two underground tanks removed and decontamination initiated. Vejen, Denmark Tar products in soil and The contamination in question occurred more than 30 years ago. groundwater. Detailed surveys have been performed. Pilot trials using biological treatment techniques have proved successful. Installation of full- scale treatment equipment being discussed with the environmental authorities. Breuberg, Germany Chlorinated solvents. Decontamination initiated in 1989. Groundwater pumped up and filtered. Hoogezand, Netherlands Oil. Decontamination in progress since 1998. Expected to be completed in 2003. Evergem, Belgium Oil, solvents. Decontamination of oil using the “pump and treat” method is under way and expected to be completed in 2003. During 2002, detailed surveys were conducted and extensive contamination with chlorinated solvents was discovered. Tivoli, Italy Chlorinated and non-chlorinated Highly detailed surveys conducted during 1998-2000. solvents in groundwater. Surroundings protected by pumping up and treating contaminated water. The measures taken have not yet affected the contaminant concentration in the groundwater. Asti, Italy Chlorinated solvents. Decontamination initiated. Hartville, OH, USA Oil. Trelleborg does not own the Oil in a monitoring well is pumped up regularly. land area. Sandusky, MI, USA Chlorinated solvents. Decontamination using “pump and treat” method in progress since 1987. South Haven, MI, USA Solvents (xylene, ethylbenzene, Initial cleanup completed. Decontamination measures to be chlorinated solvents). continued during 2001-2005. Dawson, GA, USA Chlorinated solvents (trichlorethylene). Surveys performed. Decontamination not yet initiated.

12 achieved considerable success include Raw materials and chemical products reduction of the zinc oxide content in some rubber mixes, the use of “environ- Raw material/chemical product 2001 (tons) 2002 (tons) mental oils” instead of HA oils and the introduction of nitrosamine-free vulcani- Natural rubber 47,200 58,100 zation systems. The switchover to “envi- Various types of synthetic rubber 66,400 55,700 ronmental oils” (PAH <3%) continued Plastics 14,000 11,000 during the year, and softeners of this Softeners (HA oils and other types of oils) 11,600 12,500 type now account for 60% of total use. Solvents 1,500 1,800 However, for technical, financial and Paints, glues and adhesives 1,300 1,600 quality-related reasons, it can sometimes Zinc oxide 3,000 3,100 be difficult to make the desired changes, Diisocyanates 290 740 since the substitute materials tested can Recovered materials used as lead to inferior product characteristics. raw materials (rubber, plastics) 5,600 10,080 The use of recovered materials in products has increased. This applies in particular to recovered plastics. At some plants, carbon dioxide emissions arising from bors of the plant in Trelleborg (Trelleborg I) recovered materials constitute a substan- energy use during 2002 amounted to have complained repeatedly about unpleas- tial component in new products. At the 129,000 tons (146,400 ), which is a ant odors from the so-called “Hot-Stretch” plant in Rechlin, Germany, for example, reduction compared with earlier years. plant. The company was able to reduce the fenders are produced from recovered Plant closures and more efficient energy odor problems to a minimum by changing polyethylene plastic. use contributed to the reduction. Emis- the chemicals in the recipe, and the com- sions of sulfur dioxide and nitrogen oxides plaints from neighbors have now ceased. Emissions to air and water Trelleborg’s plants emit a number of differ- ent substances to the atmosphere. Solvents Plants with substantial emissions of VOCs Plants with substantial emissions of CO (VOCs) and carbon dioxide are of par- 2 VOC emissions (tons) CO2 emissions (tons) ticular interest. 450 50,000 Emissions of VOCs within the Group 400 350 40,000 during 2002 amounted to approximately 300 30,000 1,730 tons (1,390), which represents an 250 200 20,000 increase compared with 2001. The increase 150 is due to a combination of increased pro- 100 10,000 50 duction and improved reporting prin- 0 0 t ell g t and ere bad audin Tivoli Wuxi and ciples. Each plant now also reports the Guarlhos err wbridge Martor Zillm Hartville err Carquefou ont-F Tro Loganspor SahibaChem Singapore Trelleborg I BreuberCarquefouont-F LogansporMorganfield Other plants Sapugaskanda Other plants solvent content in paints, adhesives and Clerm Clerm glue. Development work is under way within the Group to enable a switchover (NOx) from energy production during Discharges to water from the Group’s to water-based solvents in applications 2002 amounted to 477 tons (455)and plants are limited. Measurements of vari- where rubber and metal are bonded. While 152 tons (162) respectively. Heavy-grade ous wastewater parameters are taken at some progress has been made, develop- heating oil with a high sulfur content is about 25 plants, usually in order to moni- ment is being slowed down by factors still used at some plants. tor chemical oxygen demand (COD), such as the limited availability of solvent- Atmospheric emissions from vulca- nutrients (phosphorus and nitrogen) and free alternatives, cost and quality aspects. nizing processes and other processes in metals (such as zinc, nickel and iron). Emissions of the greenhouse gas car- which rubber, dipping solutions or other During the year, COD discharges bon dioxide are caused primarily by substances are heated may be experienced amounted to approximately 1,700 tons. transports and the combustion of fossil as troublesome by people living or working The largest single COD discharge was fuels in the Group’s energy plants. Total nearby. During the past few years, neigh- reported from the plant in Carquefou,

13 Performance in the sustainability area

France. Discharges of heavy metals from France is sent to the plant in Spain, Plants with substantial amounts of waste amount to a few tons per year. Most of where it is used in new products. Trials Waste (tons) the plants are connected to municipal are also under way to evaluate various 25,000

wastewater treatment plants, and there methods of recycling rubber waste or using 20,000 are internal wastewater treatment plants it for energy recovery. Some 58% of the 15,000 at a number of plants. No problems approximately 16,800 tons of rubber 10,000 occurred in treatment plants or recipients waste generated during 2002 was depos- during 2002. ited in landfills. A number of Trelleborg’s 5,000 plants have agreements with destruction 0 a g s y and Tivoli ock lleborg I err Izarr öganä Övriga Waste facilities where the rubber waste is burned Tre ont-F Carquefou Breubert ThurrTrowbridgeH Sandusk Wes Clerm Waste-related issues are important for and the energy it contains is recovered. Trelleborg both in financial terms and This solution accounts for some 14% of from a sustainability perspective. Large the rubber waste. The proportion of rub- Waste-management methods

volumes of waste are produced within ber waste recycled into new products at Recycled waste Waste to (materials recovery/ landfill the Group and a substantial portion of Trelleborg’s plants during 2002 was energy reovery) 38% 58% this waste is deposited in landfills, which about 3%, while approximately 24% was is undesirable from an environmental transferred to external companies for viewpoint. In many countries, legislation various forms of recycling. In Sweden, now promotes the aim that waste-manage- for example, worn-out agricultural tires ment should focus on materials-recovery are collected through a centralized collec- and energy recovery, which places con- tion system (Svensk Däckåtervinning). Hazardous waste to destruction 4% siderable demands on the rubber industry. The disposal of rubber waste was essen- The Group’s total waste during 2002 tially identical compared with the preced- amounted to 47,400 tons (43,400), of ing year. composition of products, or bans on the which 27,000 tons (22,600) were disposed Packaging waste from Trelleborg’s use of certain hazardous substances in of as landfill. About 16,900 tons (16,000) plants is collected via centralized systems products. Trelleborg is participating in a were source-sorted and used for materials in several countries in Europe. Trelleborg number of projects with other companies recovery or energy recovery. The total is affiliated to such systems in Sweden, aimed at finding ways of presenting the amount of hazardous waste produced Spain, Italy, Belgium and the UK. environmental performance of products during the year amounted to 2,100 tons in an appropriate manner. Some of (2,400). Waste-management costs totaled Products and the environment Trelleborg’s products have favorable SEK 33.4 M. Demands from the automotive and con- properties from an environmental per- At many of the Group’s plants, efforts struction industries for information con- spective. Examples include: are under way to reduce amounts of cerning the environmental and health • components that reduce vibration waste. An interesting cooperative project properties of products have increased. and noise in vehicles, was initiated during the year between the These demands may, for example, relate •rubber and plastic strips that contrib- plants in Clermont-Ferrand (France) and to certified environmental management ute to noise suppression and energy Izarra (Spain), whereby rubber waste systems, declarations concerning the savings,

14 •rubber sheeting used in landfill sites and its suppliers are currently under way. to prevent hazardous substances from For example, environmental and health leaching out, issues are now increasingly being included • fenders made from recycled plastic, in assessments of suppliers. During 2002, • chemical- and fire-resistant clothing a supplier-relationship policy was intro- that is used for fire-fighting and dealing duced within the Group. with environmental accidents, • systems for recovering gasoline fumes When things did not go as planned when filling up at service stations. During 2002, a total of 62 (63) spillages, fires or other uncontrolled emissions to A small number of products have under- the environment were reported. All the gone life-cycle assessments (LCAs). The incidents were of limited scope, and the Group submits safety and environmental impact on people or the environment information for a large number of products was negligible. A number of minor fires – in the form of safety data sheets and that occurred were extinguished on site environmental product declarations, for by process personnel. A steam boiler ex- example. The number of environmentally ploded at Trelleborg I, causing consider- labeled products is low. able material damage but no injuries to personnel. Transports and the environment During the year, some 25 plants were In the case of many of the Group’s inventoried and classified based on their plants, more than 90% of transports are damage-prevention measures. A general by truck. A limited quantity of goods is manual on risk management was pro- transported by rail, sea or air. A number duced, and remedial measures have been of measures have been taken to reduce taken, or are planned, at a number of the environmental impact from transports, plants. and a number of plants now require At the production units, 30 (65) transport companies to demonstrate that complaints were received during 2002 they have environmental programs or from nearby residents or other persons environmental management systems. inconvenienced by our plants. The com- plaints primarily concerned offensive odors Suppliers and the environment (6 complaints) and noise (13 complaints). The environmental performance of the Complaints concerning offensive odors raw materials, products and services pur- at Trelleborg I ceased during 2002. chased by Trelleborg impacts indirectly on the environmental performance of the entire Group. Various activities related to the interaction between Trelleborg

15 Health and social responsibility

Employees in many countries As an example of a global training pro- Trelleborg has operations in more than gram, the Trelleborg International Man- 40 countries and production units in 21 agement Program (TIMP) is directed at countries. About 87% of the Group’s managers in various countries. Some 40 approximately 15,000 employees work persons from various Group units par- outside Sweden. The proportion of ticipate each year. Knowledge of the women in the Group is around 22%. company, personal development, cultural Approximately 200 women employees aspects and environmental and social issues hold positions in middle or senior man- are among the topics addressed in TIMP. agement, and the proportion of female Another Group-wide training initiative is managers varies between 0% and 50% at Trelleborg Academy, an interactive training the different plants. The proportion of package aimed at all employees, which women managers is below 10% at about can be accessed on the Group’s intranet. one third of the Group’s plants. The Training programs in the environmental Trelleborg Board of Directors includes and safety areas are held at the Group’s one woman and the senior management plants on a regular basis. During 2002, group includes one female employee. the number of training hours per em- As a result of fluctuations in business ployee in these areas averaged 4.4 (4.3). conditions, combined with company Many training programs are conducted acquisitions and divestments, the number in conjunction with the introduction of of employees at Trelleborg increases or ISO 14001. decreases at different times. During 2002, Surveys of employee satisfaction with growth through corporate acquisitions their work and workplace have become was limited, and the workforce was more frequent within the Trelleborg Distribution of employees by country reduced through structural changes, for Group. Surveys of this type were con-

Other countries 14% France 19% example in the UK, the US, Germany ducted at 26 plants during 2002.

Brazil 4% and Mexico. During the year, a number Italy 4% of production plants were closed and China 4% production of certain products was geo- USA 14% Sri Lanka 5% graphically redistributed. In conjunction with processes of change it is important Spain 8% that the people affected receive satisfac- Germany 7% Sweden 13% UK 9% tory information about the changes. Personnel turnover (redundancies not included) ranges from 0% to more than 50% at the various plants. More than half of the units show a personnel turn- Contacts with the community over of less than 10%. The average age of Trelleborg has established well-functioning personnel at the production plants ranges collaboration with universities and col- from 29-48 years. At approximately 55% leges in Sweden and other countries. of the units, the average age is higher During the year, cooperation with the than 41 years. International Institute for Industrial Environmental Economics (IIIEE) at Personal development and Lund University was intensified. Several participation of Trelleborg’s plants serve as reference Information and training are essential for plants for students and researchers, and the development of employees in an or- the Group contributes to a professorship ganization that is growing and changing. at the Institute. Together with some 25

16 companies and other organizations, authorities. In Sri Lanka the company national and national forums. Together Trelleborg participates in the Global took part in National Environment Day, with other rubber companies in Sweden, Environmental Ethical Partnership and representatives from the Hartville Trelleborg has developed instructional (GEEP). The purpose of GEEP is to create plant in the US participated in the Health materials on the subject of rubber tech- dialog and disseminate knowledge and Awareness at the Planet conference. nology, including a book containing a research aimed at promoting innovative Trelleborg Environmental Affairs has detailed section on the environment and thinking and developing new strategies given presentations on the Group’s health in the rubber industry. in response to the challenges related to sustainability work in a number of inter- the concept of sustainable development. The Group also participates in a number of environmental activities in cooperation Degree projects and reports with authorities, industry organizations and other companies. An example is the 2000 chemical industry’s international envi- • The rubber industry and extended as case study. LUMES, Lund University. ronmental program, Responsible Care. producer’s responsibility framework. •Health and environmental risks from LUMES, Lund University. chemicals in the rubber industry – a collec- A number of Trelleborg’s plants •Energy use and energy management in tion of examples. Ecological Department, participate, together with other local tire manufacturing: The Trelleborg 1 case. Lund University. companies, in the development of envi- LUMES, Lund University. •Energy survey at Trelleborg Agri. Malmö • Labeling agricultural tires at Trelleborg University. ronmental management systems, envi- company: possibilities and constraints. •Activation of rubber crumb. ENEA ronment-related training and other LUMES, Lund University. Research Institute, Italy. activities. During 2002, for example, 2001 2002 the units in Carquefou and Poix Terron •Can the grey men go green? -– A study of •Tires – a threat to our environment? Eco- the expectation gap between financial logical Department, Lund University. (France), Kalmar and Bor (Sweden), analysts and Trelleborg AB with regard to •Environmental communication in the Sandusky (US) and Leicester (UK) took environmental reporting. School of Econom- rubber industry. IIIEE, Lund University. part in meetings and training programs ics, Lund University. •Impact of IPP on Trelleborg Wheel Systems. •Environmental reporting. Trelleborg AB LUMES, Lund University. together with other companies and

17 Health and social responsibility

Work environment Risk assessments of machines and equip- Cases of impaired hearing and other Over the years, the work environment at ment have been performed at a number medical conditions were also reported. Trelleborg’s plants has improved in many of units, and approximately 85% of plants Trelleborg is participating in several ways. Despite the many measures that have safety committees. international studies aimed at clarifying have been implemented, there are still a During 2002, 206 (203) cases of the health risks in the rubber industry. number of work-environment aspects work-related illness were reported within that continue to demand close attention. the Group. Approximately 65% of these Some examples of these aspects are: illnesses related to the locomotive organs and consisted of various strain-related •Exposure to chemicals, solvents and injuries, involving the back and neck, for vulcanizing fumes example. About 12% of illnesses were •Heavy lifting and repetitive tasks and caused by exposure to chemical products, noise and involved, for example, allergies and •Cuts, burns and crushing injuries other reactions due to oversensitivity.

The risks associated with the work envi- Accidents with >1 day sick-leave/1000 employees ronment are reflected in the statistics. Accidents/1000 employees During 2002, 740 (769) employees suf- 100 fered work-related accidents that resulted 80 in more than one day’s absence from Average work. Total reported absence caused by 60 58

accidents amounted to around 17,200 40 (15,000) days. The number of work- 20 related accidents leading to more than one day’s absence from work per 1,000 0 Automotive Wheel Engineered Building employees averaged 58 (58). A total of Systems Systems Systems 38 (70) external contract workers suffered

accidents while working at Trelleborg’s Number of accidents and days of sick-leave plants. The accident rate varies between Number Days of sick-leave business areas. Wheel Systems had the 10,000 Number of accidents highest rate, with 74 accidents resulting 9,000 8,000 in absence per 1,000 employees. 7,000 Many of the work-related accidents 6,000 5,000 related to muscle strains caused by heavy 4,000 lifting, and injuries resulting from falls, 3,000 2,000 cuts, burns and crushing. Activities are 1,000 under way in all business areas to reduce 0 Automotive Wheel Engineered Building the number of work-related accidents. Systems Systems Systems

18 Environment and finance

Environment-related costs preventive measures and work-environment During 2002, environment- and work- improvements, amounted to SEK 67.9 M environment-related costs and investments (60.8), which corresponds to around 9% amounted to a total of approximately SEK (9) of the Group’s total investments. Major 138 M (131). Costs for energy and water investment expenditures were made, for Environment-related investments totaled approximately SEK 373 M (373). example, at the plants in Tivoli, Italy, Measures to reduce external noise, 8% Costs for environmental work amounted Värnamo, Sweden and Leicester, UK. Improved waste management, 3% Air-cleaning to SEK 73.1 M (70.4), which corresponds equipment, to about 2% of combined costs for sales, Environment-related savings 24% administration and research (SAR). The In many cases, the introduction of an environmental management system enables Waste- administrative costs include costs for water environmental departments, permit a unit to identify opportunities for savings treatment, 11% – for example due to the more efficient applications, fees to authorities, costs for Soil de- the introduction and maintenance of utilization of energy and water, reduced Improvements to work contamination, environment, 50% 4% environmental management systems and quantities of waste and the reuse of recov- purchased consulting services. During ered materials. Reported savings during the year, the Group paid around SEK 33.3 2002 amounted to around SEK 15 M (8). Environment-related costs M (36.2) for handling, transport and dis- The largest savings were made in Izarra posal of waste. Costs for decontamination (Spain) and Hartville (US), and related Fees to authorities, 6% External services 5% Environmental of soil and groundwater amounted to to waste management. management systems, 7% Administration, approximately SEK 3 M (6). No substantial 34% provisions for environmental work were made during the year.

Environment-related investments Waste management, Fines and Total environment-related investments 48% sanction charges, during 2002, including treatment plants, 0.3%

19 Trelleborg Automotive

Trelleborg Automotive is the Group’s largest business area, with approximately 8,900 employees. Key products are anti- vibration systems for vehicles and sound- absorbing products for brakes. The business area has some 40 production plants located throughout the world.

Organization and management Key figures

systems 2002 2001 There are local environmental coordinators Energy consumption 552 GWh (48% of Group total) 518 GWh at Automotive’s plants worldwide. Within Water consumption 832,100 m3 (22% of Group total) 1,288,670 m3 Automotive USA there are specialists Emissions of VOCs to air 1,240 tons (72% of Group total) 960 tons Recycled waste 7,670 tons (45% of Group total) 5,630 tons with overall responsibility for permits, Landfilled waste 11,600 tons (64% of Group total) 11,600 tons work environment and safety issues, and Accident rate 53/1,000 employees (Group average: 58/1,000 employees) 53/1,000 employees auditing of environmental management Number of ISO 14001 certificates 21 (45% of Group certifications) 10 systems. The business area has 21 plants that are certified in accordance with ISO more than 400 employees. Energy con- (lead, for example) were implemented at 14001. The following plants obtained sumption and emissions of greenhouse Asti, Chemaudin, Guarlhos, Leicester,

certification during 2002: Polyspace, gases (CO2) are considerable, and the Logansport, Morganfield II, Pamplona Soratech and Poix Terron (France), Benton business area also predominates within and Trowbridge. Waste management was Harbor, Sandusky, Dawson and Salisbury the Group in terms of atmospheric emis- improved at around 15 plants. A number (US), Guarlhos (Brazil), Trowbridge sions of solvents and waste quantities. of plants, including Coventry, report (UK), Toluca (Mexico) and Cascante The frequency of work-related accidents energy savings. Training related to the (Spain). The automotive industry imposes is below the Group average. external environment and the work envi- stringent requirements, including ISO ronment was given at most of the business 14001 certification and environmental Important events during the year area’s plants. Several units began work on product declarations in accordance with In Leicester, a new plant for industrial introducing a work-environment standard the International Material Data System antivibration applications was constructed, (OSHAS 18001). A catalytic system for (IMDS). in conjunction with which measures cleaning solvent emissions was installed were taken to reduce solvent use. Improve- at the plant in Kalmar, Sweden. Noise- Sustainability performance ments to the work environment and ergo- reduction measures were implemented at Trelleborg Automotive has many produc- nomic measures were implemented at the Wuxi, Guarlhos and Carquefou plants, ing units, some of which have a large the plants in Benton Harbor and Peru. among others. number of employees. Ten plants have Measures to replace chemicals that are more than 250 employees, and four have hazardous to the environment and health

Atmospheric emissions (tons) CO2 emissions (tons) Waste (tons) Accidents/1,000 employees

NOx SO2 VOC Total waste Landfilled waste 1,300 70,000 25,000 100 1,200 90 60,000 1,100 20,000 80 1,000 900 50,000 70 800 40,000 15,000 60 700 50 600 30,000 500 10,000 40 400 20,000 30 300 5,000 20 200 10,000 100 10 0 0 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

20 Trelleborg Wheel Systems

Trelleborg Wheel Systems has slightly more than 2,400 employees and manu- factures wheels and wheel rims for forest and agricultural machines, as well as forklift trucks and other materials-han- dling equipment. The business area has eight manufacturing plants in Europe, the US and Southeast Asia.

Organization and management Key figures systems 2002 2001 There are environmental coordinators at Energy consumption 315 GWh (28% of Group total) 336 GWh 3 3 all plants within Wheel Systems. Five Water consumption 3,299,070 m (65% of Group total) 3,467,500 m plants within Wheel Systems – which Emissions of VOCs to air 69 tons (4% of Group total) 98 tons Recycled waste 3,680 tons (22% of Group total) 4,990 tons corresponds to 60% of all units – are cer- Landfilled waste 2,250 tons (8% of Group total) 3,290 tons tified in accordance with ISO 14001. Accident rate 74/1,000 employees (Group average: 58/1,000 employees) 73/1,000 employees The unit in Hartville (US) was certified Number of ISO 14001 certificates 5 (10% of Group certifications) 4 during 2002. were removed. Personnel at the Hadsten Sustainability performance plant, together with the authorities, The manufacture of tractor tires and worked on a project concerning the inte- other types of tires gives rise to substantial gration of immigrants at workplaces. water and energy consumption, atmo- Active measures relating to a new alcohol spheric emissions and waste. Wheel and drugs policy were also undertaken at Systems uses relatively large amounts of Hadsten. The odor problems at the chlorinated solvents. Heavy manual Trelleborg I plant were remedied and work is common and the accident rate is complaints from neighbors ceased. A high. Two of the business area’s plants waste-management project was imple- have more than 400 employees. mented in Hartville, and personnel at the plant in Sri Lanka received instruction Important events during the year in the environment and safety areas, and The major portion of the plant in certain hazardous substances in the rubber Evergem (Belgium) was closed, and the mix were replaced. Preventive fire-protec- operations were moved to Sri Lanka and tion measures were implemented in Spain. At the plant in Tivoli, noise-reduc- Hoogezand. tion measures were implemented and four old transformers containing PCBs

Atmospheric emissions (tons) CO2 emissions (tons) Waste (tons) Accidents/1,000 employees

NOx SO2 VOC Total waste Landfilled waste 500 70,000 25,000 100 90 60,000 400 20,000 80 50,000 70 300 40,000 15,000 60 50 200 30,000 10,000 40 20,000 30 100 5,000 20 10,000 10 0 0 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

21 Trelleborg Engineered Systems

Trelleborg Engineered Systems has approximately 2,800 employees, and manufactures industrial hose, polymers for infrastructural projects, rubber sheet- ing, rubber flooring, road-marking tape, and protective equipment. The business area has 18 manufacturing plants in Europe, Canada, Australia and Singapore.

Organization and management Key figures

systems 2002 2001 Each of the various plants has an environ- Energy consumption 179 GWh (16% of Group total) 191 GWh mental coordinator. At the Trelleborg Water consumption 626,780 m3 (13% of Group total) 592,700 m3 plant there is a specialist Environmental Emissions of VOCs to air 419 tons (24% of Group total) 330 tons Recycled waste 3,100 tons (18% of Group total) 2,950 tons Technology organization to support Landfilled waste 5,370 tons (20% of Group total) 5,612 tons Engineered Systems, among other organi- Accident rate 65/1,000 employees (Group average: 58/1,000 employees) 68/1,000 employees zations. In Izarra there is an environmental Number of ISO 14001 certificates 14 (30% of Group certifications) 12 specialist who works in part with Group- wide issues. A total of 14 plants within emits large quantities of solvents and safety areas. The Izarra and Clermont- the business area – which corresponds to shows substantial energy consumption. Ferrand plants are cooperating on measures 60% of all units – are certified in accor- The business area’s accident rate is above relating to the recovery of mixed rubber. dance with ISO 14001. During 2002, the Group average. Ergonomic measures were implemented the plants in Ede (Netherlands) and in Ystad and the use of HA oils has been Clermont-Ferrand (France) obtained Important events during the year reduced at Trelleborg I. A substantial in- certification. One plant in Mexico and one plant in vestment was made at the unit in Runcorn the UK were divested. In Clermont- to reduce dust exposure in workplaces. Sustainability performance Ferrand, an energy-supply project (the Risk assessments and safety measures Most of the units within Engineered trigeneration project) is under way that relating to machines were implemented Systems have 50-150 employees. The will result in reduced atmospheric emis- in Izarra, Örebro and Hemse. average number of employees is about sions and reduced water consumption. 130 per unit. The plants in Mjöndalen, Personnel at the plants in Hull, Mjöndalen, Izarra and Clermont-Ferrand are the Ridderkerk and Collingwood worked on largest, with approximately 300-635 ways of reducing the risks associated employees. In a Group-wide perspective, with the use of solvents and chemical Engineered Systems’ energy consumption products. In Singapore, a project known and carbon dioxide emissions are moder- as “5S” is being conducted and employees ate. The plant in Clermont-Ferrand have received training in the health and

Atmospheric emissions (tons) CO2 emissions (tons) Waste (tons) Accidents/1,000 employees

NOx SO2 VOC Total waste Landfilled waste 500 70,000 25,000 100 90 60,000 400 20,000 80 50,000 70 300 40,000 15,000 60 50 200 30,000 10,000 40 20,000 30 100 5,000 20 10,000 10 0 0 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

22 Trelleborg Building Systems

Trelleborg Building Systems has about 1,200 employees and manufactures rubber sheeting for roofs and for sealing landfills, bitumen-based sealing layers for roofs and bridge membranes, and sealing strips. The business area has 12 manufacturing plants in Europe.

Organization and management Key figures systems 2002 2001 Each of the various plants has an environ- Energy consumption 88 GWh (8% of Group total) 84 GWh 3 3 mental coordinator, and at the production Water consumption 338,780 m (7% of Group total) 394,000 m units in the Värnamo region in Sweden Emissions of VOCs to air 3 tons (0.1% of Group total) 0.1 tons Recycled waste 2,400 tons (14% of Group total) 2,210 tons there is overall collaboration between the Landfilled waste 2,040 tons (7% of Group total) 2,125 tons environmental coordinators on matters Accident rate 34/1,000 employees (Group average: 58/1,000 employees) 47/1,000 employees concerning the environment and health. Number of ISO 14001 certificates 7 (15% of Group certifications) 7 For example, environmental audits are performed on a jointly organized basis. Systems is below the average for the reduced amounts of waste. Fire protection Seven units within the business area, Trelleborg Group. was improved in Mosbach. Chemicals which corresponds to 60% of all units, handling at the Rydaholm plant was are certified in accordance with ISO Important events during the year reduced substantially. 14001. No additional units were certified Risk assessments of workplace safety during 2002. were carried out at the Swedish units, and managers and other personnel received Sustainability performance training in the external-environment and The production units within Building work-environment areas. Training was Systems are relatively small (average of also given to key personnel involved in 70 employees), and there is only one the transport of hazardous goods. At the mixing section within the business area. Värnamo II plant, investments were This means that environmental impacts made in measures designed to save water in the form of energy and water con- and energy. It is estimated that water sumption and waste are relatively low. consumption will be reduced by approxi- Atmospheric emissions of solvents and mately 85% as a result of the measures. carbon dioxide are limited. The quan- In Bor, buildings for the storage of waste tity of waste recycled is relatively high. and peroxide were constructed. Minworth The accident rate within Building reports reduced energy consumption and

Atmospheric emissions (tons) CO2 emissions (tons) Waste (tons) Accidents/1,000 employees

NOx SO2 VOC Total waste Landfilled waste 50 70,000 25,000 100 90 60,000 40 20,000 80 50,000 70 30 40,000 15,000 60 50 20 30,000 10,000 40 20,000 30 10 5,000 20 10,000 10 0 0 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

23 Important sustainability work under development

Trelleborg’s operations impact on the scope for bringing about changes is simple symbols, how we perceive our environment and people’s health in a limited, at least in the short term. The successes and setbacks in a five-year number of ways. In some cases, through table below, which covers the environ- perspective. systematic efforts, we can reduce ment, health and social relations, shows
Improved situation. environmental impact and achieve how we view these aspects from a Group  Unchanged situation. safer workplaces. In other areas, our perspective. We have also shown, using  Worsened situation.

Environmental aspect Priority Examples of environmental, Threats and opportunities Trend Comments level health and other impacts 1998-2002 Location Disturbance due to noise, A number of the Group’s plants are Disturbances have de- ■ transports and unpleasant located in urban areas. There can be  clined substantially at a odors. complaints from neighbors. number of plants, such as Trelleborg I. Some problems persist at a number of plants. Soil and groundwater Historic contamination of soil There is contamination at about 15 A number of minor ● and groundwater. Oils, heavy plants. Soil decontamination is  cleanups have been metals and solvents are ex- expensive and takes a long time. performed. New con- amples of contaminants. tamination has been discovered. Consumption of natu- Environmental impact from Through the more efficient use of raw Use of resources has ral resources (raw ■ rubber plantations during materials, the Group can save money  become more efficient materials) production of natural rubber. and reduce environmental impact. at many plants. This is Utilization of nonrenewable still an area with poten- resources during production tial for improvement. of synthetic rubbers and other polymers. Consumption of Utilization of nonrenewable Energy prices are a significant factor for Successful energy sav- natural resources ● energy resources (oil, natural production costs. Energy costs  ings programs have been (water, energy) gas). Clean water is a scarce increased substantially during 2002. implemented at some resource in many countries. plants. The potential for saving energy has not been fully exploited in the Group. The same ap- plies to water. Use of chemical Hazardous substances are Demands are increasing from the au- The use of hazardous products ● common in the rubber industry. thorities and customers for a reduction
substances has decrea- Environmental and health risks of the environmental and health risks sed and handling has can result from the handling of caused by chemicals. Substitution mea- become safer. toxic and persistent chemicals. sures can be expensive and technically difficult to implement. Emissions to air Carbon dioxide from the Carbon dioxide taxes and trading in Many plants have imple- ● Group’s energy plants emissions rights are expected to
mented measures to re- contributes to the greenhouse progressively generate costs for the duce solvent emissions. effect. Solvent emissions Group. Legislation to reduce emissions In a 10-year perspective, cause local formation of to air is becoming increasingly strict. emissions have de- photochemical oxidants, The tolerance level of nearby residents creased substantially at among other effects. Dust, is expected to decline. a number of plants. Dis- vulcanizing fumes and odors turbance caused by dust can cause a local environ- and vulcanizing fumes mental impact. has declined. Carbon dioxide emissions have declined somewhat. Noise (outdoors) Neighbors may be disturbed. Noise-reduction measures can be diffi- Unchanged situation, ■ Limit values for noise may be cult and expensive to implement.  with a total of about 10 exceeded. complaints per year at approximately 10 plants. Emissions to water Municipal treatment plants Emissions to water are limited and Essentially unchanged ▼ and watercourses can be wastewater is treated internally at a  situation. Improved affected by chemical prod- number of units. Investments in improved wastewater treatment ucts and other emissions. wastewater treatment may be required has been introduced at at some plants. some plants.

24 ● High priority ■ Medium priority ▼ Low priority

Environmental aspect Priority Examples of environmental, Threats and opportunities Trend Comments level health and other impacts 1998-2002 Waste Waste generation is a wastage Waste issues have high priority in many Waste management has ● of natural resources. Landfill countries. For the Group this means in-
improved at the majority capacity has already been creased costs and demands for waste of plants. The intro- exceeded in some countries. reduction and recovery/recycling. duction of ISO 14001 Incineration can produce is a key driving force in emissions of air pollutants. this context. The develop- Storage and transport of ment of methods for hazardous waste can lead to handling rubber waste health-related and environ- is becoming increasingly mental risks. important. Spills, fires and Serious injury to people in In recent years, the Group has been  Preventive risk reduction unforeseen situations ■ the vicinity can result from spared from spills and fires resulting in measures have become fires and uncontrolled serious injury. Some major fires have increasingly important as emissions. occurred during the past few years how- insurance costs have ever, and minor spills and leakages risen. Assessments have occur. been made and manuals prepared in order to con- solidate preventive work. Products Products whose useful life is Demands from customers, particularly Substitution of hazard- ● over generate waste. The in the automotive and construction  ous substances (e.g. products contain chemical industries, for information on products’ HA oils and accelerators substances that can spread environmental and health properties that form nitrosamines) in the environment. However, are increasing. has improved the prop- many of the Group’s products erties of some products contribute to a better environ- from the environmental ment (reduced noise and vibra- viewpoint. Safety and tion, energy savings, etc.). environmental informa- tion is provided for many products. Packaging Packaging generates waste Environmentally compatible packaging Essentially unchanged ▼ at customer premises. solutions often increase customer satis-  situation. faction and reduce environmental impact. Transports Use of nonrenewable natural Transports of raw materials and finished Some good initiatives ■ resources (fossil fuels). Emis- products are substantial within the  have been taken to re- sions of greenhouse gases Group. The environmental impact of duce the environmental and air pollutants. transports has only been studied at impact of transports. a few plants. Continued efforts are required to survey the effects of transports. Work environment Exposure to chemicals in the Demands from the authorities, employ- Over the years, the work risks ● rubber industry can lead to ees and trade unions for a safe work  environment in the rub- allergies, respiratory illnesses environment continue to be high. ber industry has im- and other health problems. proved considerably. Crushing injuries, cuts and However, the accident burns are common. Heavy lift- rate is still high and ing and repetitive tasks can numerous sources of lead to strain-related injuries. risk remain, relating to Noise can result in hearing chemical products, impairment. Stress can lead heavy lifting and repeti- to psychosocial illnesses. tive work, for example. Values and relations Poor working conditions and There has been an increasing focus Trelleborg’s overall val- at workplaces ● a lack of respect for human during recent years on issues relating  ues, Code of Conduct rights have a negative effect to ethics, morals and human rights, and and Workplace Policy on employees and give the more rigorous demands are coming were introduced during company a bad reputation. from stakeholders and society at large. 2002. Social commitment Commitment on the part of Demands for social commitment on the Trelleborg participates, ■ the Group to environmental part of industry are increasing. The
both locally and in a and social issues can have Group’s image as a good corporate citi- broader context, in vari- a positive impact at the local zen and an attractive employer could be ous social activities. level. strengthened. Contacts with universi- ties and institutes of technology pertaining to sustainability issues have been expanded. Suppliers The work environment, social Inappropriate behavior on the part of The introduction of envi- ■ conditions and environmental suppliers can harm Trelleborg’s reputa-  ronmental management impact of suppliers indirectly tion and result in increased costs. systems has also in- affect Trelleborg’s sustainability creased the focus on performance. the environmental work of suppliers. A Group- wide supplier policy has been prepared.

25 Accounting principles

Contents of Sustainability Report company’s environmental situation to the extent Bow and Skelton (UK) are omitted from the The Trelleborg Group’s Sustainability Report for required by Swedish legislation regarding environ- report. Previously, the Triton and Admiral plants 2002 covers aspects relating to the environment, mental information in the Board of Directors’ (West Thurrock, UK) were covered in a separate health, safety and social issues. Trelleborg’s ambi- Report. Compared with the Annual Report, the report. This year, they are combined under the tion is that the report, together with supplementary Sustainability Report contains supplementary and designation “West Thurrock.” The Group’s com- information, will provide employees and external more detailed information. In addition, a global bined environmental performance is given for a stakeholders with a clear picture of the Group’s perspective on environmental issues is adopted number of central parameters, and the four busi- activities in these areas and their business-related in the Sustainability Report, while the information ness areas are reported separately for a number consequences. We hope that the report will be of in the Annual Report focuses on the Swedish of key parameters. For certain parameters, figures interest to various categories of stakeholders, and operations, in accordance with Swedish law. are given for those plants that have the greatest we welcome readers’ comments and suggestions for impact on the Group’s combined results. A total future improvements. The current report is sched- Scope of the Sustainability Report of 82 organizations throughout the world con- uled for publication in April 2003 and will be The Trelleborg Group comprises Group Manage- tributed to the report. The plants named in the accessible, together with Trelleborg’s Annual Report, ment, four business areas and a minority interest table below are included in the Sustainability on the Group’s website: www.trelleborg.com. Both in Trenor (Trelleborg’s former distribution sector). Report. The number of employees at each plant reports are published in Swedish and English, In this Sustainability Report, “Trelleborg” refers is given in parentheses. and can be ordered from the Group’s Corporate to the Group’s four business areas. Trenor is not Communications Department. In accordance included in the report. Nor are the distribution Accounting principles with standard reporting practice, Trelleborg AB operations within Trelleborg Goodall (US) included Trelleborg’s Sustainability Report is not based on also reports on any significant events that have in the report. any particular international guidelines for envi- occurred between the close of the fiscal year and The Sustainability Report covers performance ronmental reporting. The choice of the param- the completion of the Sustainability Report. relating to the environment, health, safety and eters reported and the method of reporting are social conditions at the production units world- partly based on the Global Reporting Initiative Division of environmental information wide. Operations that belonged to the Group (GRI, 2000) and Deloitte & Touche’s Checklist between Annual Report and Sustainability during the entire fiscal year are reported. No 2000. Each plant supplies data in accordance with Report information is provided on operations that were the Group’s standard for sustainability reporting, The Trelleborg Group’s Annual Report for 2002 closed down or divested during 2002. For this and each plant manager is responsible for quality- provides general information about the reason, the plants in Evergem (Belgium), and assuring the data provided. Data are compared

Plants included in the Sustainability Report (number of employees in parentheses) Automotive Wheel Systems Italy Asti (76) Denmark Hadsten (110) Netherlands Hoogezand (62) Germany Breuberg (496), Nastätten (71) Sweden Trelleborg I1) (276), Sävsjö (43) Spain Burgos (94), Cascante (110), Martorell (195), Italy Tivoli (543) Pamplona (268), Tarazona (46) USA Hartville (204) Sweden Sjöbo (82), Kalmar (126) Sri Lanka Sapugaskanda (448), Walgama (229) UK Coventry (213), Leicester (292), Engineered Systems West Thurrock (313), Trowbridge (283) France Clermont-Ferrand (635) Netherlands Ede (66), Ridderkerk (105) France Carquefou-Modyn (391), Carguefou-Polyspace Norway Mjöndalen (199) (182), Carquefou-Prodyn (71), Carquefou- Soratech (425), Chemaudin (172), Poix Terron Spain Izarra (298), Santander (64) 1) 7) (81), Witry Les Reims (217) Sweden Hemse (83), Trelleborg I (133), Trelleborg II (109), Ystad (108), Örebro (109) Turkey Cerkezhöy (126) UK Hull (60), Runcorn (26), Scunthorpe (16) Czech Republic Dobrovice (17) Germany Rechlin (13) USA Benton Harbor (175), Carmi I4) (71), Carmi II5) Canada Collingwood (50) (135), Dawson (124), Kent (18), Logansport Singapore Singapore (189) (415), Morganfield I (220), Morganfield II6) Australia Brisbane (54) (118), Peru (224), Salisbury (35), Sandusky Building Systems (299), South Haven (134) Sweden Bor (64), Höganäs (84), Rydaholm (78), Värnamo I 2) Mexico Toluca (130) (145), Värnamo II3) (154), Österbymo (24) Denmark Vejen (39) Brazil Diadema (91), Guarulhos (388) Finland Vihti (13) India Sahibabad (122) Germany Mosbach (90), Papenburg (77) China Wuxi (560) UK Minworth (76)

1) Central plant, Trelleborg, Sweden 2) Central plant, Värnamo 3) Norregårds fabriken, Värnamo 4) Carmi mixing plant 5) Carmi moulding plant 6) Dawson plant 7) Trelleborg E plant

26 Glossary

with figures from previous years and are verified, BLIC the entire life cycle of a particular material, process, The Association of European Rubber Manufacturers. product, technology, service or activity. LCA method- by random sampling, against the plants’ environ- Trelleborg participates in the work of the Health & ology is described in ISO 14040. mental reports to the authorities and data supplied Environment Committee, among other activities. in conjunction with the environmental reviews Nitrosamines Carbon dioxide (CO ) Substances that can cause cancer in animals and hu- conducted in preparation for the introduction of 2 CO2 is formed in all carbon combustion processes. mans. Formed during certain vulcanization processes. ISO 14001. The information in the present report The gas is released in substantial amounts when NO (nitrogen oxides) refers to the year 2002. Key figures are presented petroleum products are used. It is likely that atmo- X spheric emissions of carbon dioxide increase global Gaseous oxides formed during combustion processes in text, tables and diagrams. Where appropriate, warming (greenhouse effect). through the oxidation of nitrogen. Harmful to human data for 2001 are provided in parentheses following health and the environment. Cause acid rain and the information for 2002. CFCs and HCFCs eutrophication. Substances that destroy the atmospheric ozone layer. This year’s Sustainability Report represents a They are used, for example, in air-conditioning plants. PAHs further development of the environmental reports Polyaromatic hydrocarbons. Some are carcinogenic. from previous years. The same reporting principles Code of Conduct PAHs are released to the atmosphere from vehicle Behavior code for Trelleborg’s employees. Supple- exhaust fumes and small-scale wood-fueled heating, apply in the case of parameters reported in previous mented by policies relating to the environment, and in conjunction with vulcanization processes in years. In the case of carbon dioxide, sulfur dioxide workplaces and relations with suppliers. the rubber industry. PAHs also occur in extremely and nitrogen oxide emissions resulting from the low concentrations in conjunction with bitumen use Environmental aspects within Trelleborg Building Systems. burning of fossil fuels, conversion factors based The parts of an organization’s activities, products or on the energy content and quality of the fuel services that interact with the environment. An over- Polyurethane used are employed. Figures for emissions of view of the Trelleborg Group’s key environmental Group of polymers with structures linked by urethane aspects is included in the present report. bridges. At Trelleborg, polyurethane is used for coating VOCs (solvents) are based on measurements at rollers and for solid tires. Various diisocyanates, such the plants where they occur, but in most cases Environmental management system as TDI or MDI, are used in the production process. VOC emission data is based on mass-balance The part of the overall management system that includes the organizational structure, planning, SGI calculations. In this year’s report, VOC emissions activities, distribution of responsibility, practices, Swedish Rubber Industry Association (Svenska gummi- from paints and lacquers, adhesives and glue procedures and resources for developing, implement- industriföreningen). Trelleborg AB participates in SIG’s have been handled in a more consistent manner, ing, performing, reviewing and maintaining the Environment Committee, among other activities. organization’s environmental policy. ISO 14001 is which has resulted in a reported increase in the used as the environmental management standard SO2 (sulfur dioxide) total amount of VOCs. within the Trelleborg Group. Sulfur dioxide is formed when petroleum products

are burned. SO2 contributes to the acidification of Global Reporting Initiative (GRI) Terms and definitions lakes, streams and soils, and causes coniferous trees GRI is an organization working toward a method to shed their needles. Large concentrations in the Environment-related costs for overall reporting and assessment of an operation, environment are harmful to human health. These are costs related to measures for preventing, including the social and environmental perspectives, as well as financial aspects. VOC s (Volatile Organic Compounds) reducing or repairing environmental damage The VOCs referred to in this report comprise directly associated with operations. The corre- GWh unchlorinated and chlorinated solvents. VOC emis- sponding measures taken with regard to health Gigawatt-hour, 1 billion watt-hours. sions contribute to local atmospheric environmental effects, including the formation of ground-level and safety in the workplace are also included. HA oils ozone. Many VOCs constitute a direct health risk. The costs reported include, among other items, Softeners containing a high concentration (>3%) of administration and external-consulting expenses, carcinogenic polyaromatic hydrocarbons (PAHs). Work-related accident A work-related accident is a sudden event related to fees to authorities, costs for introducing and Hazardous waste work that gives rise to a wound or other physical maintaining environmental management systems, Waste requiring special handling. Different countries injury. A typical injury in the rubber industry is a and charges for external inspections and audits. have different definitions and regulations, and national minor cut or crushing injury. Trelleborg reports the standards are frequently changed, making it more number of work-related injuries that give rise to one difficult to report on hazardous waste. Within the or more days of absence, called Lost Work Cases Environment-related investments EU, hazardous waste is classified in accordance with (LWCs). The injury rate is then normed by stating These are investments in assets designed to prevent, the European Waste Code (EWC). the number of such injuries per 1,000 employees (LWC/1,000). reduce or repair damage to the environment ISO 14000 associated with operations. The corresponding A series of international standards for environmental Work-related illness investments made with regard to health and management systems (ISO 14001), life-cycle assess- A work-related illness is an illness caused by long-term ments, environmental audits, environmental labeling, exposure to a particular factor in the work environ- safety in the workplace are also included. environmental performance evaluation and environ- ment. Such factors can include repetitive lifting or ment-related terms and definitions. Many plants being exposed every day to solvent fumes. Environment-related provisions within the Trelleborg Group are certified in accor- dance with ISO 14001. These are financial provisions to cover liabilities and allocations for known commitments and nec- LCA (Life Cycle Assessment) essary measures to prevent, reduce or repair damage A management tool for assessing and quantifying the total environmental impact of products and activi- to the environment associated with operations. ties over their entire lifetime, based on an analysis of

27 Further information about Trelleborg AB Questions regarding the Sustainability Report will be answered by Vice President, Environmental Affairs, Torbjörn Brorson, [email protected] Printed publications can be ordered by telephoning +46 410-670 09, or via e-mail: [email protected]

Internet A detailed Sustainability Report can be accessed on our website: www.trelleborg.com

Annual Report The Trelleborg Group T-TIME Annual Report for 2002. Trelleborg’s stakeholder magazine, T-TIME, is published four times a year.

Trelleborg AB will also be publishing the following financial reports for fiscal year 2003: Interim report for the period January 1-March 31 April 24 Interim report for the period January 1-June 30 July 22 Interim report for the period January 1-September 30 October 22 Year-end report for 2003 February 5, 2004

Trelleborg AB (publ), P.O. Box 153, SE-231 22 Trelleborg, Sweden

Tel. +46 410 670 00 • Fax. +46 410 427 63 Malmö AB, RHR Reklambyrå E-mail: [email protected] Internet: www.trelleborg.com