Solutions Securing Values™
SUSTAINABILITY REPORT 2005 The year in brief
Contents Trelleborg is a global industrial group Sales by geographical region whose leading positions are based on SEK M Comments by the CEO 3 25,000 advanced polymer technology and in depth Business concept 4 20,000 applications know-how. We develop Organization and management systems high-performance solutions that damp, 15,000 Policies and management systems 6 seal and protect in demanding industrial 10,000 Stakeholders 7 environments. 5,000
Environmental performance Trelleborg was founded in 1905 and 0 2001 2002 2003 2004 2005 Raw materials and input materials 8 its headquarters are located in Trelleborg, Europe North & South America Asia Others Energy 8 Sweden. Today, the Group has about 2005: 71% 22% 5% 2% Water 8 22,000 employees and operations in Land use and biodiversity 9 some 40 countries. Emissions 9 Waste 10 Products 10 Sustainability-related events during 2005 Compliance 11 Transport 11 · 89 facilities certified in accordance with ISO 14001. Social performance · New Group-wide Environmental Forum established. Average number of employees 2003-2005 12 · Trelleborg named one of the year’s climate improvers in Swedish Employees and union membership 12 insurance company Folksam’s Climate Index. Health and safety 12 Training and development 13 · New web-based sustainability reporting adapted to structure Equality and diversity 13 recommended by Global Reporting Initiative (GRI). Human rights and Code of Conduct 14 · Audits in accordance with the Group’s Safety@Work program Community involvement 14 implemented at 49 plants. Product responsibility 14 Sustainability and finance Sustainability-related investments 15 Key figures Sustainability-related costs and 2005 2004 savings 15 Net sales, sek m 24,170 22,912 Sustainability performance – business areas 16 Operating profit, sek m 1,779 1,891 Profit before tax, sek m 1,567 1,604 Scope and reporting principles 18 Net profit, sek m 1,177 1,386 Earnings per share, sek 12.90 15.55 Contact 18 Free cash flow, sek m 950 536 Glossary 19 Free cash flow per share, sek 10.55 6.05 Net debt, sek m –7,236 –6,951 Sustainability data for 2005 have been gathered from Debt/equity ratio, % 72 81 the Group’s production facilities in accordance with the Return on shareholders’ equity, % 12.5 17.2 Group’s standard for environmental reporting. Each plant Average number of employees 21,694 21,675 manager is responsible for assuring the quality of the relevant parameters. The Group’s environment staff unit Operating key figures*) compiles and processes the data. Operating profit, sek m 1,779 1,795 Visit www.trelleborg.com/sustainability to access Profit before tax, sek m 1,567 1,508 complete sustainability information, an interactive infor- Net profit, sek m 1,177 1,122 mation database and a GRI index. Earnings per share, sek 12.90 12.55 Operating margin, (ROS), % 7.2 7.7 This symbol indicates that additional, related information is available at Return on capital employed, (ROA), % 10.8 11.2 www.trelleborg.com Return on shareholders’ equity, % 12.5 13.9 Operating cash flow, sek m 1,788 1,483 Trelleborg AB is a limited liability company. Corporate identity Operating cash flow per share, sek 19.85 16.80 number: 556006-3421. The Group’s headquarters are in Trelleborg, Sweden. Hållbar- Operating cash flow/operating profit, % 101 83 hetsredovisningen finns även på svenska. Net debt/EBITDA, multiple 2.8 2.6 Amounts of money are given in Swedish kronor (sek) EBITDA/net financial items, multiple 12.4 9.2 throughout. Millions of kronor are abbreviated sek m. Unless otherwise stated, figures in parantheses relate to the 2004 *) Based on continuing operations, excluding restructuring costs and impairment losses. fiscal year. Continuing operations denotes current structure, that is, excluding Trenor, which was divested in 2004.
TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 PRESIDENT AND CEO Peter Nilsson
When I am asked what sustainable leadership, with clear goals and feedback. development involves, the answer is We must constantly develop people in the quite straightforward for me. Our organization, at the same time as we sustainability work is an integral part of continuously focus on developing better our business model and contributes to solutions for our customers. In this respect, the fulfillment of financial and other our values give us a common platform. objectives. Trelleborg has a history that goes Key figures improve in back more than one hundred years, and the environment area the long-term perspective is one of our The issues we prioritize in the environment hallmarks. Building long-term success area relate to handling of chemicals, energy requires that financial, environmental consumption, emissions to air, waste and and social issues are handled in a balanced the work environment. A number of key and responsible manner, and we must figures improved during the year, including safeguard this approach to secure the Group’s total energy consumption. continued development and expansion. Our focus on integrated sustainability We are a function-oriented company work continues. During 2005, we further that helps our customers to seal, damp refined our organization, appointing and protect in demanding industrial environmental coordinators in each environments. Our customers and other business area and setting up a Group- stakeholders expect us to assume wide environmental forum. During the responsibility for environmental care and year, we also began a review of the Group’s clarify our Code of Conduct. We have social issues, and to actively contribute to environmental policy in order to intro- been working on the Code for several a sustainable society as we help customers duce clearer targets in our prioritized years, but like everything else, this docu- to develop better solutions. areas, among other aims. We have also ment needs to be refined in pace with The purpose of this sustainability continued the ongoing program to intro- the Group’s development and the external report is to present a picture of where duce the ISO 14001 environmental situation. One of our most important tasks Trelleborg stands regarding sustainability- management system, and a total of 89 during 2006 will be to strengthen imple- related issues, what we view as our pri- plants held certification at year-end. mentation of the Code of Conduct and oritized areas, and our future ambitions. Implementation of the Group’s develop an effective follow-up system. We Our constant aim is to improve and Safety@Work project, in which work- have also strengthened our focus within develop sustainability information. Two environment efforts at our plants are certain risk areas to which we are exposed means for achieving this are the increased reviewed and evaluated, continued as a global and expanding company. amount of in- during 2005. We address risk-management issues formation on The experience Our values systematically and have adopted policies our website and gained from the during 2006 relating to liability and other the fact that we give us a common project has been “ issues. We have also adopted a Whistle- have chosen, highly positive in platform” blower policy to enable every single from this year terms of both the employee to report any suspected on, to follow the structure defined by the number of injuries and the associated irregularities. Global Reporting Initiative. Since 2004, cost savings. It is clear that the issues addressed the sustainability information in our annual During the year, our sustainability within the framework of sustainable report has also been audited by external work received several awards. These development are becoming increasingly auditors. included Trelleborg being named central for us and our business environ- “Climate Improver of the Year” in ment. I foresee significant challenges in Values as governance instruments Swedish insurance company Folksam’s this area, but I also note that we at Trelleborg’s values – Customer focus, Climate index. Trelleborg can bring a high level of Performance, Innovation and Respons- awareness and ambition to the way ibility – are the guiding principles for our Lessons learned and measures taken we approach these challenges. governance and actions throughout the We endeavor to improve continuously and
entire Group, and hence also for our learn from our mistakes. During the year, Trelleborg, March 2006 sustainability work. The values, together we were affected by certain events that with the Group’s Code of Conduct and were not positive, such as a protracted accompanying policies, define Trelleborg’s union related conflict in Sri Lanka. The basic position as a responsible company. conflict was resolved and we have learned We work continuously to clarify what from the incident and subsequent these values signify in day-to-day opera- discussions with various stakeholders. Peter Nilsson tions for Trelleborg employees worldwide. We are reviewing how we can become President and CEO A cornerstone of our multicultural better at avoiding situations of this type and decentralized Group is value-based in the future. Part of this process is to
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Solutions Securing Values™
VALUES •Customer focus •Performance •Innovation •Responsibility
STRATEGIC TARGETS Our efforts to achieve Leading positions in long-term attractive our mission and to segments – to be achieved through: meet expectations •Operational excellence from our customers, Organic growth shareholders and em- VERNANCE • •Value-generating acquisitions ployees rest on three •Target-oriented leadership foundation stones: our values, our strategic
CODE OF CONDUCT targets and our finan- TE GO cial targets. FINANCIAL TARGETS •Annual growth over an economic cycle: 8-10% •Return on capital employed: 15% •Return on shareholders’ equity: 15% •Debt/equity ratio: 75-125% •Operating cash flow 80-90% of
CORPORA operating profit
To seal, damp and protect A considerable portion of Trelleborg’s Global industrial rubber suppliers The Trelleborg Group offers technological operations lie within the framework of No. Company Country solutions that meet three primary customer what is termed the industrial rubber sector. 1 Continental Germany needs: to seal, damp and protect to secure It is estimated that globally this market 2 Hutchinson France investments, processes and people in de- generates sales of approximately sek 500 3 Trelleborg* Sweden manding industrial environments. Based billion annually. The North American 4 Freudenberg Germany on polymer technology and in-depth ap- and European shares combined comprise 5 Bridgestone Japan plications know-how, Trelleborg develops nearly 60 percent. The industrial rubber 6 Tomkins UK products and solutions designed to meet market comprises product areas such as 7 Cooper-Standard US specific needs, often in close collaboration antivibration, hoses and seals. The market 8 Parker-Hannifin USA with customers. The Group’s customers is fragmented, although a gradual process 9 Tokai Japan are primarily found within the aerospace, of consolidation is under way. The share 10 NOK Japan agricultural, automotive, infrastructure/ covered by the ten largest companies has Source: Rubber & Plastic News, July 2005/Trelleborg construction, transportation equipment risen from approximately 10 percent to * Including CRP Group and oil/gas industries, as well as other approximately 25 percent over the past sectors. five years. Trelleborg is playing an active role in this process.
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AEROSPACE
AGRICULTURE
BUSINESS CONCEPT TRANSPORTATION Trelleborg seals, damps EQUIPMENT and protects in demanding SEAL industrial environments throughout the world. We offer our customers DAMP AUTOMOTIVE VERNANCE engineered solutions based on leading polymer PROTECT technology and unique OIL/GAS
CODE OF CONDUCT applications know-how. TE GO
INFRASTRUCTURE/ CONSTRUCTION
OTHER industrY SECTORS CORPORA
Customer-focused organization Synergies generate competitiveness Our values The Group’s solutions are used in many Core industrial expertise and polymer Trelleborg’s basic values are customer focus, different applications and products and technology pervade all of the business performance, innovation and responsi- are consequently aimed at a large number areas, as does the high technology con- bility. In their daily efforts, Group em- of customer groups in many different tent of the products, providing added ployees are guided by the culture and industrial segments. Each business area value for customers. values developed over the years. With focuses on selected customer segments Focused product development, cost- common values, a continuity is estab- and can thereby contribute leading-edge effective production and synergies in lished, necessary in building and main- expertise and applications know-how purchasing and material flows are decisive taining operations that are successful through in-depth knowledge of the cus- for favorable operational results and com- and that can be maintained over the tomer’s situation and needs. mercially successful products and solutions. long term. The decentralized and entrepreneurial To strengthen the Group’s competitiveness, organization provides a strong operation- coordination between business areas is al focus and proximity to our customers. sought in all of these areas. Clear, value-based and target-driven management promotes development and innovation. On a daily basis, the four Trelleborg triangles remind us of our four basic values.
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Trelleborg Automotive Trelleborg Sealing Solutions Trelleborg Engineered Systems Trelleborg Wheel Systems Trelleborg Building Systems Antivibration products, primarily A leading global supplier of Flow systems and engineered Solid industrial tires for forklift Moisture-insulation and sealing for the light-vehicle industry, in high-quality precision seals for solutions for several market seg- trucks and other materials- products for the construction which Trelleborg is a world customers in the industrial, ments, including the process handling equipment, as well as industry and other sectors, leader. automotive and aerospace industry, infrastructure and tires for agricultural and as well as for the consumer sectors. offshore/oil and gas extraction. forestry machines. market.
-Approximately 22,000 employees -109 production plants -External and work-environment responsibility delegated to each plant -Environmental management systems implemented at 89 plants -Environmental coordinators appointed at all plants
Organization models, and following up the Group’s Policies and management systems The direct responsibility for issues rela- environmental policy. The Group’s The Group’s fundamental values and ting to the environment, health and intranet includes a comprehensive Code of Conduct are part of our culture safety is borne locally by each individual sustainability section used to disseminate and shall provide support for day-to-day unit. Each plant has an environmental information. decisions and actions. The Code of coordinator and persons responsible for health and safety. The central corporate environmental Nominations SHAREHOLDERS External function, which is part of Group Staff committee auditors Legal Affairs, is responsible for develop- ment work, coordination and training in Audit committee environment-related matters, and co- BOARD Remunerations committee operates closely with the Human Finance committee Objectives Reports Resources and Risk Management functions and strategies and control regarding health and safety issues. The focus during 2005 was on PRESIDENT AND CEO increased coordination and knowledge
transfer in the environment area between CFO Legal
different parts of the Group. Formal net- Objectives Risk Treasury IR IT Environment management Reports works were established at the regional Activities Internal control Finance Personnel Forecasts and business-area levels. Each business Common Taxes and Group structure values Communications Business area has appointed an environmental Business development overview Remuneration coordinator. These coordinators, together structures Trelleborg Trelleborg Trelleborg Trelleborg Trelleborg with the central corporate environmental Automotive Sealing Engineered Wheel Building Solutions Systems Systems Systems function, are included in a newly formed Business Business Business Business Business Group-wide Environmental Forum, which units units units units units Product Product Product Product Product is charged with the task of identifying areas areas areas areas areas and initiating Group-wide projects, spreading the implementation of good
An explosive “jet fire” can devastate an oil platform in just a few seconds. It causes an explosive inferno so hot that even metals melt. To meet these extreme conditions, Trelleborg has developed a number of flexible products for fire and explosion protection.
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Vision, business concept and objectives environment requirements and require- concerning the content of the sustain- ments imposed by customers, guide the ability report were among the reasons for Values selection of raw materials and suppliers. Trelleborg’s decision to adapt its sustain- Many customers, primarily within the ability report to the Global Reporting Code of conduct automotive and construction industries, Initiative (GRI) structure. have their own lists of unaccepted Policies, manuals and recommendations substances. Each new raw material is evaluated according to these criteria Local control documents before being accepted. Trelleborg is a member of national Plants with ISO 14001 certification industrial organizations in a number of 120 countries, which also entails collabora- Conduct shows what we stand for in 100 regard to the environment, social tion on environmental and work-environ- 80 responsibility and the work environment, ment issues. At the European level, 60 and is supported by separate policies for Trelleborg participates in BLIC, the the environment, work environment and European Rubber industry’s interest 40 contacts with suppliers. The implemen- organization, and in working committees 20 0 tation of the Code of Conduct is a long- on issues including the environment, 2001 2002 2003 2004 2005 term process and the past three years work-environment and chemicals. In Certified Total number of plants have been devoted to describing, explain- Sweden, Trelleborg is a member of the ing and disseminating the Code of Con- Swedish Plastics & Chemicals Federa- duct to employees. This has taken place tion. Through this involvement, via the Group’s intranet and through Trelleborg’s Swedish operations partici- meetings and internal and external pub- pate in the international Responsible lications. The Code of Conduct has Care program of the chemical industry. been translated into some ten different Shareholders and investors languages. Stakeholders Employees Customers During 2005, the Group adopted a Trelleborg’s stakeholders include, among specific “whistle-blower” policy allowing others, customers, employees, society at TRELLEBORG individual employees, regardless of large, official authorities, investors and Authorities Suppliers position, to report irregularities, anony- partners. Trelleborg communicates and partners mously if so desired, and without fear of continuously with these stakeholders at Society retribution. many different levels, in forms ranging The ISO 14001 environmental from more detailed dialogs at personal management standard forms an meetings to general information important cornerstone in Trelleborg’s disseminated, for example, through the sustainability work. At the close of 2005, Group’s website and the stakeholder 89 facilities, out of a total 109, were magazine T-Time. A more detailed certified. Four units underwent certi- dialog creates mutual understanding, fication during 2005. provides an opportunity to exchange Several units have also implemented experiences, and helps to improve and the work-environment management develop sustainability work. system OHSAS 18000. A total of five As a result of discussions with facilities now work in accordance with voluntary organizations and represent- this system. These facilities are located in atives of ethical funds during 2005, the UK, Denmark and France. certain amendments will be made to The Code of Conduct, combined Trelleborg’s Code of Conduct. with the requirements of ISO 14001, The information requirements as well as legal stipulations, work- of various stakeholders and dialogs
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Raw materials and input materials However, it is not yet possible to fully The Group’s total energy costs during The Group’s most important raw replace solvent-based adhesives. To do so 2005 amounted to sek 571 m (437). materials are natural rubber (44 percent), will involve a long-term effort that will synthetic rubber (66 percent), softeners depend on quality, customer require- (oils), fillers (carbon black), curing ments and cooperation with suppliers. Water agents (sulfur and peroxides) and Unvulcanized rubber waste is reused Water is used at Trelleborg’s plants for chemical additives whose purpose is to for as long as possible in production. A cooling, cleaning, pretreatment of metals give the products various characteristics. total of 3,400 tons of waste was recovered (phosphatizing) and sanitation. Some of the substances used are classified internally in production during 2005. In During 2005, the Group consumed as environmental and/or health hazards. addition, a total of 14,000 tons of waste a total of 6.1 million m3 of water (5.1). Within the Group, measures are from external companies was recovered Almost the entire increase of slightly more under way to replace hazardous raw in production. than 900,000 m3 was attributable to one materials with less hazardous alternatives. unit (TSS, Ersmark) that had previously The aim is to eventually fully replace Energy been unable to report its water substances such as lead and hexavalent The Group’s energy consumption is consumption. Most of the water used is chromium, chlorinated solvents, high- principally linked to steam production, pumped from the Group’s own wells or aromatic (HA) oils and certain anti- production processes, ventilation, cooling from watercourses in the vicinity of the oxidants and accelerators. and heating. At most of the Group’s pro- plants. One fourth is municipal drinking Metals are a key constituent in many duction facilities, continuous efforts are water. The Group’s water costs during of the Group’s products. A large number under way to reduce energy use and use 2005 amounted to sek 20.4 m (15.4). of products are components composed energy more efficiently – for both environ- The most important water-related of rubber and metal. To ensure adhesion mental and economic reasons. issues for the Trelleborg Group are to between these materials, solvent-based The Group’s total energy consumption endeavor to use process water more preparations are often used, causing during 2005 amounted to 1,273 GWh efficiently – through recirculation for emissions of volatile organic compounds (1,382). Relative to the increase in sales, example – and, in cases where water is (VOCs). In many products, the company this represents an improvement of 13 discharged directly to groundwater or has been able to replace solvent-based percent compared with 2004. The surface water, to protect the surrounding adhesives with water-based alternatives. improvement is mainly attributable to a area from harmful substances. number of energy-saving measures taken A total of 28 units use some form of tons 2005 2004 at the local level. Examples of such mea- water recovery, and these water-saving sures include the installation of heat measures reduced consumption by 1.8 Natural rubber 73,200 66,000 exchangers to reuse waste heat from million m3 during 2005. The majority of Synthetic rubber 94,400 80,000 production, improved control of ventil- the Group’s plants (64 percent) are Metals 89,650 58,000 ation, shutting down equipment not in connected to municipal wastewater Plastics 19,640 19,400 use, replacing light sources and up- treatment plants. Of the remainder, 21 Softeners grading old equipment. percent have their own treatment plants. HA oils 3,640 4,150 A total of 47 out of 109 plants In the remaining instances, no special other oils 9,250 8,370 reported higher energy consumption than wastewater-treatment measures are Recycled materials 17,400 11,960 in the preceding year. In all cases, the required. In a few individual cases, increase was due to either increased wastewater is treated separately as Solvents production or unusually low winter hazardous waste. Chlorinated 170 260 temperatures in certain regions. Discharges to water are reported Non-chlorinated 5,540 2,176 The most important energy sources under Emissions and Waste. Paints, lacquers, are electricity, natural gas and oil. The glues and adhesives 2,040 2,000 use of oil and coal has declined, mainly Land use and biodiversity Zinc oxide 5,070 3,300 in favor of natural gas. The Group utilizes a total of approximately
Trelleborg’s sustainability work has won several awards, including the 2004 Annual Report, for the second year in a row, being one of five companies’ reports commended with a “best practice” citation in Deloitte’s annual survey of Swedish listed companies’ voluntary reporting.
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540 hectares of land for its production ing. The vulcanizing process also produ- Energy consumption facilities. These facilities are located in ces emissions of vulcanizing fumes con- GWh GWh/SEK M 1,600 0.08 typical large or small industrial areas and taining organic substances. 1,400 0.07 consequently cannot be considered to Reduced energy consumption during 1,200 0.06 have a significant impact on biological the year led to a reduction in related 1,000 0.05 diversity. emissions. See diagram. VOC emissions 800 0.04 Trelleborg has no proprietary rubber also declined, to 1686 tons (1819), 600 0.03 400 0.02 plantations but purchases approximately despite increased production. 200 0.01 70,000 tons of natural rubber annually Direct emissions of carbon dioxide 0 0.00 2001 2002 2003 2004 2005 from suppliers who operate rubber from the Group’s own plants amounted plantations, mainly in Southeast Asia. to 133,400 tons (141,500). The reduc- GWh GWh/Net sales, SEK M Rubber plantations are monocultures tion is primarily attributable to reduced that replace rainforest and thereby affect energy consumption and a reduction in
biological diversity in the local area. the use of oil and coal in favor of natural Energy consumption per source Contamination of soil and/or ground- gas. The Group’s electricity consumption
water has been confirmed at a number of generated some 80,000 tons of indirect Electricity, 47% Trelleborg’s production facilities. In most carbon dioxide emissions. Natural gas, 34% cases, such contamination represents Emissions to water from the Group’s traces of environmental problems dating plants are limited and primarily consist Oil, 15% from earlier periods, caused by long-term of organic materials and metals. Monitor- Coal, 1%
industrial activity at the site. In several ing of discharged water normally focuses Other, 3% instances, this occurred before Trelleborg on chemical oxygen demand (COD), acquired the facility. For this reason, a nutrient substances (phosphorus and ni- number of decontamination projects are trogen) and metals (such as zinc, nickel
under way at Trelleborg facilities where and iron).During 2005, total amounts in Water consumption
previous operators or others are these categories were COD: 725 tons, m3 m3/SEK M responsible. nutrient substances: 19 tons, and metals: 7,000,000 350 Common contaminants are chlorinated 2 tons. 6,000,000 300 solvents and oils. In many instances, soil The total amount of ozone-depleting 5,000,000 250 4,000,000 200 and groundwater contamination is techni- substances in equipment installed in the 3,000,000 150 cally complicated to treat and decontam- Group’s production facilities amounts to 2,000,000 100
ination may take many years. A deconta- approximately 65 tons. No atmospheric 1,000,000 50
mination project is preceded by extensive emissions of ozone-depleting substances 0 0 studies and is always conducted in con- were reported. 2001 2002 2003 2004 2005 sultation with the relevant authorities. m3 water m3/SEK M Decontamination projects are currently Waste in progress at 9 facilities and a further 6 The Group’s aim is to continuously cases are under investigation. reduce the proportion of waste deposited Carbon dioxide emissions Tons Tons/SEK M in landfills, in favor of increased recovery 180,000 9 Emissions of materials and energy. Different countries 160,000 8 Emissions to air from Trelleborg’s plants have widely differing regulations and 140,000 7 120,000 6 mostly consist of CO2, SO2 and NOx policies in this area, which accounts for 100,000 5 linked to energy use, and volatile organic the substantial regional differences that 80,000 4 compounds (VOCs) that result from the also exist within the Group. The most 60,000 3 40,000 2 use of solvent-based products for gluing, progress has been made in Europe. 20,000 1 0 0 painting and lacquering, and metal-process- Activities aimed at reducing waste 2001 2002 2003 2004 2005
CO2 tons CO2 tons/Net sales, SEK M
In Swedish insurance company Folksam’s climate index, which includes 250 listed companies in Sweden, Trelleborg received five stars out of five in2 005. In Folksam’s compilation of Sustainable Swedish Companies of the Year (including Folksam’s Climate Index, Equality Index and Health Index), Trelleborg was ranked 39 of 228 Swedish listed companies and came in fifth place in the category “other industries.” Local Trelleborg companies topped the lists in several Swedish counties (Västerbotten, Örebro, Jönköping and Kalmar).
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VOC emissions amounts are under way at most of the • Water hoses that minimize bacterial Tons Tons/SEK M Group’s facilities, and 70 percent of the development in closed water systems, 2,000 0.100 plants cite reduction of waste and in- • Hoses to remove exhaust fumes from
1,500 0.075 creased energy and materials recovery car-maintenance workshops and as one of their highest-priority environ- similar facilities, 1,000 0.050 mental objectives. • Rubber moldings for windows and Total waste amounts declined slightly 500 0.025 doors that reduce energy consumption during 2005 to 62,350 tons (62,945), in buildings, 0 0.000 despite increased production. The reduction • Rubber membranes used in waste 2001 2002 2003 2004 2005 relative to sales amounted to 6 percent dumps to prevent leakage of environ- VOC total VOC/Net sales, SEK M compared with 2004. A total of 25,700 mentally hazardous substances, tons of waste (26,143), corresponding to • Chemical and fire protection suits 42 percent of total waste, was deposited used in connection with fires and in landfill sites, while some 22,900 tons environmental accidents, went to materials recovery and 9,000 tons • Ergonomic and sound-insulating Total waste to energy recovery. The amount of hazard- flooring Tons Tons/SEK M 80,000 2.8 ous waste totaled 2,750 tons (2,720). 70,000 2.7 The Group’s total waste-management Requirements from the community and 60,000 2.6 costs amounted to sek 44.4 m (44.2). customers regarding products’ environ- 50,000 2.5 The amount of rubber waste from mental characteristics are constantly 40,000 2.4 30,000 2.3 production during 2005 was on par with increasing, including from the automotive 20,000 2.2 the preceding year at around 22,000 and construction industries, where 10,000 2.1 tons. Of this total, 50 percent (47) was detailed contents declarations are required. 0 2.0 2001 2002 2003 2004 2005 disposed of as landfill, 4 percent (7) was There are also chemical limitation lists,
Tons Tons/Net sales, SEK M recycled in the Group’s own production, specific to particular industries or customers. 26 percent (19) was processed by other A number of products have been companies for materials recovery and an subject to lifecycle analyses (LCA). The additional 20 percent (27) for energy Group provides safety and environmental recovery. information for more than 5,000 pro- ducts, including in the form of the Inter- Products national Material Data System (IMDS), Waste management The Group’s business concept is to safety sheets and environmental product provide products and solutions that seal, declarations. Trelleborg participates in a Hazardous waste, 4% damp and protect in demanding environ- number of projects to identify ways to
Recycling, 37% ments. Consequently, Trelleborg’s products improve products’ environmental have many areas of use that directly or performance. Energy recovery, 14% indirectly improve the environment or
Landfill, 42% work environment or that serve to protect Compliance the environment. A total of 89 of the Group’s plants require Other, 3% permits in accordance with local legisla- Examples include: tion. All 18 of the production units in • Components that reduce vibration and Sweden are covered by permit or report- noise in cars, trains and other vehicles, ing requirements. The permits cover the • O-rings that prevent emissions of conditions for emissions to air and water, gaseous substances from fuels and and for waste management. Each year, all solvents, of the Swedish plants covered by permits
By investing in a new system for separating out particles in process water, Trelleborg Sealing Solutions in Tijuana, Mexico has accomplished conside- rable water savings. The cleaned water can now be reused in the process. During 2005, 1.8 million cubic meters of water were saved through similar measures at Trelleborg plants worldwide.
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report on their compliance with the per- disturbances. Both complaints related to mit conditions in separate environmental malodorous emissions to the surroun- reports submitted to their local super- ding area. visory authorities. Similar reporting to the authorities also takes place in a num- Transport ber of other countries. Applications for Transports of raw materials and finished renewal of environmental permits are products – over long distances in many currently in preparation at 40 plants cases – are almost exclusively by truck (including four in Sweden), all of which and ship. Limited quantities of goods are are expected to receive the permits app- transported by rail. Nearly all transports lied for. Infringements of permit con- are handled by external companies. The ditions or environmental or work- most significant environmental impact environment legislation were reported from transports relates to emissions of
from a total of 17 plants (13). In five CO2 and consumption of fossil fuels. cases, these infringements resulted in The Group’s aim in the future is to be fines. Trelleborg’s costs relating to these able to report on the extent of the trans- violations during 2005 amounted to port activities generated by the Group’s approximately sek 1.3 m. The largest operations, and the resultant environ- portion (sek 0.9 m) of this total is the mental impact. result of a lawsuit in the US relating to There are no Group-wide environ- incorrect waste management during the mental requirements regarding transports years 1997-2004. other than those stated in the Group’s The main causes of infringements policy for contacts with suppliers. How- were emissions to sewage water, noise, ever, a number of facilities require that VOC emissions and other emissions to transport firms demonstrate that they air. Two notable infringements related to have environmental management sys- adaptation to new VOC legislation in tems or environmental programs in place. Carquefou-Modyn, France (where an In Sweden, Trelleborg Industri AB, four action plan has now been approved by other major companies and the Swedish the authorities) and non-permitted National Roads Administration participate emissions of particles to water in in a forum to develop a tool for purchasing Runcorn, UK, which resulted in fines sustainable transport. corresponding to approximately sek 140,000. A total of 77 (57) incidents involving spillages or other uncontrolled emissions to the external environment occurred during 2005. None of these incidents caused any significant conse- quences for people or the environment. Minor fires occurred at 22 plants (18); most of them were in mechanical equip- ment and were of limited scope. During the year, two complaints (16) were direc- ted against Trelleborg’s plants by nearby residents and others who experienced
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tions, scientific surveys and the substi- Average number of employees 2003-2005 Trelleborg has operations in some 40 countries tution of hazardous chemicals. and industrial plants in about 25 countries. Ap- Distribution by country 2005 2004 2003 Trelleborg’s Safety@Work program proximately 90 percent of the Group’s employ- France 2,896 ,94 ,753 focuses on the work environment and Sweden 2,451 ,55 ,082 ees work outside Sweden. The average number of employees increased related risks. During 2005, the program UK 2,190 ,404 1,448 was implemented in the US, the UK, US 2,54 ,364 1,910 during the year to 21,694 (21,675). The propor- tion of women was 25 percent (25). Pay and other France and Italy. During 2006, the Spain 1,358 1,402 1,349 compensation amounted to sek 5,599 M (5,606). program will also be advanced in Italy 1,287 1,281 5 The average number of employees in Sweden countries including Mexico, Malta, Germany 1,283 1, 45 amounted to 2,451 (2,558), of whom 31 percent Canada, Sweden, Norway, Denmark, Malta 71 1 192 were women (33). The average number of employ- Spain, the Netherlands, Belgium, the Brazil 48 659 ees in other EU countries was 12,280 (12,417), Czech Republic, Germany, Poland and China 370 603 583 of whom 25 percent were women (23). The aver- Slovakia. Rest of Europe ,066 ,767 1,301 age number of employees in the US was 2,548 Rest of North and The methodology and processes in (2,364), of whom 32 percent were women (32). South America 5 63 482 Safety@Work are based on reciprocal The personnel turnover (excluding layoffs and Other regions 1,735 1,577 1,416 auditing and evaluation between com- retirees) varies between different countries and Total 21,694 21,675 15,855* panies and business areas to best utilize plants and often refl ects the local manpower situ- and disseminate existing knowledge in the ation. The personnel turnover during 2005 was 8 Men 16,246 16,279 12,265 work-environment area within the percent. The majority of plants report a person- Women 5,448 5,396 ,590 Group. The aims of the project include: nel turnover of less than 5 percent per year. * At the end of the year, the Trelleborg Group had • Continuous improvement of the work approximately 20,000 employees. environment, and hence safety, for employees. • Creation of a platform to enable Employees and union membership have been introduced. The case was the continuous improvements. Trelleborg’s policy is to recognize local subject of a study by the organization • Establishing a Group standard. union branches when employees so wish. Swedwatch, which gave Trelleborg a • Increasing exchanges of knowledge More than 50 percent of Trelleborg’s number of recommendations, and whose between Group companies. employees at the Group’s production views have provided valuable assistance • Reducing work-environment-related units have union representation. in the ongoing work in this area. costs. Trelleborg European Works Council Change processes relating to acqui- (TEWC) is active within Europe, with sitions, divestments and rationalizations participants from the European countries are under way continuously within Trelle- During 2005, 49 audits were conducted where Trelleborg has operations. The borg. Accordingly, a key task is to create in accordance with the Safety@Work council meets once each year, and the conditions for change and, with due Blue Grading Model, whereby results are additional meetings can be held if the respect for every employee, reduce uncer- evaluated according to a four-level color- need arises. The council deals with issues tainty and insecurity, while at the same coding system (blue, green, yellow, red). related to personnel, finance, the time ensuring that the company remains Blue indicates that all of Trelleborg’s environment, investments, production, competitive. Approximately 500 employ- standards are being met, while green business development and other issues of ees, mainly in the US, Sweden and the means that there are minor deviations importance for employees. UK, were affected by restructuring but nothing serious. Yellow is a warning During 2004-2005, protracted measures during 2005. flag, and red indicates that the recommend- negotiations between unions and local ation needs to be reviewed or monitored management, involving certain conflicts, Health and safety carefully. In addition, audits employ a were under way at one of Trelleborg’s Measures taken in the work environment points system, with 1,000 as the maxi- plants in Sri Lanka. The conflict was area within the Trelleborg Group encom- mum number of points. In total, 16 eventually resolved, and the unions and pass activities such as training, the provi- different parameters are evaluated, in- company management now have a sion and use of the correct personal safe- cluding legal compliance, follow-up of positive dialog. Collective agreements ty equipment, technical safety installa- accidents, work-environment targets,
Trelleborg participates in a number of different community activities, often of a local nature, that involve coop- eration with neighbors, interest groups and public authorities. Within the educational field, we have cooperated for some years with various universities and schools. This cooperation has resulted in excellent contacts with re- searchers and students, and over the years many students have carried out degree projects and research work – with an environmental focus in some cases – at Trelleborg’s plants. Work during the year included environment strategies for roofing products. Other examples include a learning partnership with the Lund University School of Economics and Manage- ment, which involved financing two postgraduate appointments.
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employee training and ergonomics. The Training and development During 2005, the number of course average points scored by the facilities Managers at Trelleborg are expected to hours per employee at the Group’s audited to date amounted to 762. The function as leaders, with the ability to set production units (85 percent of the total results have been presented to and distinct targets, follow up work performed number of employees) amounted to an discussed by Group Management. and delegate tasks and responsibility to average of 12.7. In addition to specific During 2005, a total of 948 (1,057) the employees under them. A key task courses linked to individual employees’ work-related accidents resulting in more for managers is to ensure that employees tasks, training is conducted by the than one day’s absence from work were continuously develop their skills and are Trelleborg Academy, which is an umbrella registered. Cuts and crushing injuries are stimulated toward further development concept encompassing various Group- the most common, as well as injuries to within the Group. wide training programs. Courses are muscles and limbs. The number of work A Group-wide Talent Management arranged both locally and centrally, accidents resulting in more than one day’s function has been established to enhance sometimes using various e-learning absence per 1,000 employees averaged the focus on employee development programs. Approximately 200 people 52 (57). A total of 57 contract workers within the Group. During the year, four participated in programs within the (67) were victims of accidents at Trelle- key development processes were identified: framework of the Trelleborg Academy borg’s plants. No fatal accidents occurred manager supply, performance/evaluation, during the year. during 2005. competence/training planning and The Trelleborg International Safety committees exist at 101 out recruitment/succession planning. Management Program (TIMP) is available of 109 plants. Plant management partici- Trelleborg has a well-established for managers. The program covers such pates in all but one of these. Reported manager-supply process to define resource areas as company knowledge, business cases of work-related health problems at needs in the short and long term and acumen, communication, leadership and Trelleborg’s facilities continue to show a ensure that the Group satisfies future com- understanding of cultural differences. declining trend. During 2005, 231 work- petence requirements in good time. A TIMP comprises 12 days of training related health problems (343) were review of the manager-supply situation spread over three sessions. During 2005, reported, a decline of slightly more than regarding senior management is conduc- 41 participants (81), including 7 women 30 percent. About 80 percent (63) in- ted annually and reported to the Board. (11), began the TIMP program. volved strain-related injuries, such as back To maintain continuity and profes- Excellence in Manufacturing is a and neck disorders. About 11 percent sional competence, the Group prioritizes global training program aimed at develop- (14) of the health problems were allergies internal recruitment. The objective is for ing participants’ knowledge in areas such and other hypersensitive reactions. In 75 percent of recruitment to take place as optimization of production processes, addition, hearing impairment was involved internally. The level is currently estimated leadership and the interplay between in 3 percent (1) of health problems. at 60-65 percent. production and other areas, such as finance With the objective of creating trans- and quality. The program had 16 part- parency and providing greater opportu- icipants (18). Work-related accidents, Group average nities for job rotation and development, both individually and for the Group as a Equality and diversity 70 whole, an important tool is Trelleborg’s Trelleborg’s workplace policy states that, 60 Internal Job Market, whereby all vacant in regard to recruitment or work assign- 50 positions are advertised via the Group’s ments, the company shall not apply 40 intranet. special treatment to employees on the 30
20 A critical factor for assuring the grounds of gender, religion, age, disab-
10 Group’s long-term success is to have ility, sexual orientation, nationality, polit-
0 processes for recognizing, through clearly ical opinions or social or ethnic origin. 2001 2002 2003 2004 2005 formulated reward systems, employees’ In the equality index for 2005 LWC*/1000 employees performance and contributions to the compiled by Swedish insurance company * LWC (Lost work cases) are defined as work-related accidents resulting in more than 1 day’s absence. fulfillment of objectives. A Group-wide Folksam, Trelleborg placed 102nd out of compensation policy defines the relevant 242 listed Swedish companies. In the parameters. The compensation structure industrial category “Other industries,” is based on a systematic evaluation system. Trelleborg received the grade 1.77, some-
For a number of years, Trelleborg has sponsored the Young Share Investors training program in investing in shares and managing private finances, aimed at 16-19-year-olds. The mentor class SPIE3 at Malmö Borgarskola was awarded the prize for Sweden’s best class in share knowledge in 2005.
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what above the average for the category Community involvement Product responsibility of 1.53. More than 400 women employees During 2005, Trelleborg celebrated its The overwhelming share of the Group’s have managerial positions at senior or centenary, which gave rise to a number products entail very limited risks in their middle management level at Trelleborg’s of activities. Over the year, 32 production use. However, the Group also develops production facilities. plants around the world arranged some products and systems for certain safety- In 2005, the proportion of women form of open-house event, study visits or critical environments. Trelleborg conducts in senior management positions amounted similar for schools, university students, extensive safety efforts regarding products to 20 percent (11) and the number of neighbors, customers, employees and their manufactured for particularly demanding women on the Board corresponded to 18 families. Various Trelleborg companies environments or which otherwise entail percent (18). also contribute to a number of activities increased risk. Existing and new products in their local communities, including are systematically analyzed and evaluated, Human rights and Code of Conduct charity, health, school and sports activities. with the focus on safety-critical products. The Group’s Code of Conduct also covers The Group also collaborates with The Group continuously assesses and human rights, which are described, for several universities and schools and has, responds to the risks that may be associ- example, in the workplace policy. Forma- in recent years, supported numerous ated with new types of products and new lized responsibilities are defined concern- degree and research projects. Among applications. ing human rights. other activities, Trelleborg has entered a The Group provides product infor- Amnesty Business Group conducted “learning partnership” with the Lund mation for a large number of products in a survey of the human-rights work of University School of Economics and the form of labeling, safety-data sheets, major Swedish companies early in 2006. Management, involving the financing of IMDS declarations and environmental Trelleborg participated and had results two post-graduate positions. declarations corresponding to the require- on par with other Swedish industrial In 2005, Trelleborg’s sustainability ments imposed by each customer or mar- companies, which in turn were higher efforts were recognized with several awards. ket. Safety-data sheets include informa- than the average results for all companies. For the second consecutive year, the 2004 tion on the product’s characteristics regard- No violations occurred during the Annual Report was one of five recog- ing the environment, health and safety. year with regard to forced labor or child nized for best practice in Deloitte’s annual The contents are regulated by law and labor. review of voluntary reporting by Swedish requirements vary somewhat between During the year, there were indications listed companies. Trelleborg was also named different markets. For this reason, infor- that the Code of Conduct has not been one of the year’s climate improvers, re- mation is adapted to meet local require- implemented sufficiently fully and that ceiving five stars out of five in Swedish -in ments. the implementation of such a code requires surance company Folksam’s climate index. In accordance with the European extended efforts in the form of communi- In Folksam’s compilation of the Year’s directive on end-of-life vehicles (the ELV cation and discussion.The importance of a Sustainable Companies (including equal- Directive), vehicle components are subject Code of Conduct that is understood, accept- ity, health and climate), Trelleborg placed to recycling requirements. Consequently, ed and adhered to has grown against the 39th out of 228 listed Swedish companies in accordance with requirements from background of Trelleborg’s geographic ex- and also won awards locally in the Swedish the automotive industry, Trelleborg pansion. Consequently, during 2006, counties of Västerbotten, Örebro, Jönköp- supplies environmental declarations in Trelleborg’s Code of Conduct will be re- ing and Kalmar. Some units also received line with IMDS (International Material vised, to then be implemented more fully local recognition for their work-environ- Data System) for a large number of and reviewed in 2007. ment efforts. These were Hal Far (Malta) products. Bribery and corruption are unaccept- and Broomfield, Eugene and Salisbury able behaviors, as is affirmed by the Group’s (all in the US). Code of Conduct. In 2005, a policy regard- ing competition issues was adopted and a related Group-wide training program will be carried out during 2006.
The facility in Clermont-Ferrand, France has set itself the target of reducing the number of workplace accidents to a third within three years. To increase safety awareness among personnel, ten zero-tolerance criteria have been es- tablished. A professional film team has filmed the work at the plant and this has been used as the basis for a training and discussion program on work safety in which all employees have participated.
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Sustainability-related investments Environment-related investments Air-cleaning Sustainability-related investments com- Other 4% equipment 15% prise operational expenditure on assets to Energy efficiency measures 16% prevent or mitigate environmental impact Wastewater treatment 5% and to reduce the consumption of resources. Measures to reduce Waste This also includes investments that im- external management 3% prove health and safety at workplaces. In noise 1% 2005, these investments amounted to sek 70 m (82). The largest proportion of Improvements to work the investments involved measures to im- environment 56% prove the work environment.
Sustainability-related costs and savings Sustainability-related costs refer to costs Distribution of sustainability-related expenses pertaining to the environment and work environment, including measures to Other 5% Soil decontamination 4% prevent, mitigate or repair damage to the External services 5% Administration environment, or measures to improve Fines and 32% sanction health and safety in workplaces. In 2005, fees 1% the Trelleborg Group’s costs in these areas amounted to sek 101 m (84). This Fees to amount includes costs for waste handling authorities 3% Waste and soil decontamination, not previously management 44% Management included in this concept. The largest pro- systems 6% portion of sustainability-related costs comprised waste-management costs and costs for the administration of environ- mental and work-environment efforts, such as costs for environmental manag- ers, permit application procedures and internal training. Direct savings in connection with environmental and work-environment improvements amounted to sek 21 m (21). Examples of savings include decreased consumption of energy and materials, as well as reduced costs for waste handling and water.
14 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 15 Sustainability performance – Business areas
Organization and management systems Energy consumption, Water consumption, VOC emissions, share of Group total share of Group total share of Group total
• Net sales in 2005: sek 9,550 m (9,182). Trelleborg Automotive 499 GWh 1,048,466 m3 1,145 tons Antivibration products, primarily for • Average number of employees in 2005: 9,460 (9,608). the light-vehicles industry, in which • 42 (40) production plants in Europe, North and South Trelleborg is the world leader. America and Asia. 17% • 21 plants have more than 150 employees and 6 have 39% more than 300 employees. 68% • The Head Office is located in South Haven (MI), US. • 36 plants have ISO 14001 certification.
Trelleborg Sealing Solutions • Net sales in 2005: sek 5,166 m (5,009). 130 GWh 1,088,885 m3 62 tons A leading global supplier of high • Average number of employees in 2005: 5,640 (5,708). quality precision seals for custo- • 23 production plants in Europe, North and South America mers in the industrial, automotive and India. A new production plant is under construction in and aerospace sectors. Shanghai, China. The majority of plants have 50-150 employees. 4 units have more than 300 employees. 18% • The Head Office is located in Stuttgart, Germany. 10% 4% • 19 units have ISO 14001 certification.
• Net sales in 2005: sek 4,549 m (3,961). Trelleborg Engineered Systems 279 GWh 664,924 m3 431 tons Flow systems and engineered solutions • Average number of employees in 2005: 3,261 (3,204). for several market segments, including • 24 production plants in Europe, North America, Australia the process industry, infrastructure and and Singapore. The largest plant is in Clermont-Ferrand 25% offshore/oil and gas extraction. (France), with about 630 employees. Most of the units are smaller, with 50-150 employees. 22% • The Head Office is located in Trelleborg, Sweden. 11% • 19 plants have ISO 14001 certification.
• Net sales in 2005: sek 3,023 m (2,933). Trelleborg Wheel Systems 283 GWh 3,018,591 m3 46 tons Solid industrial tires for forklift trucks • Average number of employees in 2005: 1,941 (2,064). and other material-handling equipment, • 7 production plants in Europe, the US and Sri Lanka. 3% as well as tires for agricultural and 4 of these units have more than 200 employees. forestry machines. • The Head Office is located in Tivoli, Italy. 22% • 5 plants have ISO 14001 certification. 49%
• sek m Trelleborg Building Systems Net sales in 2005: 2,304 (2,257). 82 GWh 292,491 m3 2 tons Moisture-insulation and sealing pro- • Average number of employees in 2005: 1,362 (1,453). 7% 5% 0% ducts for the construction industry • 13 production plants in Europe. The plants are relatively and other sectors, as well as for small, with an average of 90 employees. the consumer market. • The Head Office is located in Trelleborg, Sweden. • 10 plants have ISO 14001 certification.
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VOC emissions, Waste, share of CO2 emissions, Sustainability- Work-related accidents Significant events in 2005 share of Group total Group total share of Group total related investments, > 1 day absence/1000 share of Group total employees
• ISO 14001 certification for Witry les Reims (France), Hradek sek m 1,145 tons 27,485 tons 44,205 tons 31.4 (Czech Republic) and Wuxi (China). Trelleborg Automotive 52 56 • OHSAS 18001 certification for Carquefou-Soratech (France) 60 and Coventry (UK). 50 33% • Safety@Work Blue Grading audits conducted at 24 plants. 44% 45% 40 • External environmental audits conducted at 33 plants. 30
20 • Water consumption reduced by 25 percent, primarily through
10 water savings at Wuxi, Carquefou-Soratech and Carmi (US).
0 Group Trelleborg Automotive Trelleborg Sealing Solutions • OHSAS 18001 certification at Helsingør (Denmark). 62 tons 5,878 tons 7,256 tons sek 8.9 m • Safety@Work Blue Grading audits conducted at 14 plants. 52 36 60 • External environmental audits conducted at 20 plants.
50 • It was possible to achieve a 70-percent reduction in VOC
40 emissions thanks to measures including those implemented
30 at Guelph (Canada) and Hal Far (Malta).
20 9% 13% 5% 10
0 Group Trelleborg Sealing Solutions Trelleborg Engineered Systems • ISO 14001 certification for Brisbane (Australia). 431 tons 12,929 tons 32,744 tons sek 15.8 m 52 40 • Safety@Work Blue Grading audits conducted at six plants. 60 • External environmental audits conducted at 20 plants. 50 • Phase-out of dangerous chemicals at Izarra (Spain). 40 • Continued decrease in work-related accidents by 11 23% 30 21% percent compared with 2004. 25% 20 10
0 Group Trelleborg Engineered
• Safety@Work Blue Grading audits conducted at three plants. Trelleborg Wheel Systems 46 tons 8,040 tons 42,685 tons sek 8.1 m • External environmental audits conducted at six plants. 52 105
120 • Significant reduction in work-related accidents thanks to
100 work-environment improvements at Hadsten (Denmark), Kelaniya (Sri Lanka), Sävsjö (Sweden) and Tivoli (Italy). 12% 80 32% 13% 60 • Harmful chemicals replaced at Hadsten and Kelaniya.
40
20
0 Group Trelleborg Wheel Systems Trelleborg Building Systems • Safety@Work Blue Grading audits conducted at two plants. 2 tons 8,019 tons 6,508 tons sek 5.3 m 52 44 • External environmental audits conducted at ten plants. 5% 7% 60 • Reduction in amount of landfill waste by2 0 percent thanks to 50 13% improved waste handling at Bor (Sweden), Minworth (UK), 40 Santander (Spain) and Värnamo (Sweden). 30 • Reduced atmospheric emissions at Mosbach (Germany). 20
10
0 Group Trelleborg Building Systems
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Scope Reporting principles Production plants included in Trelleborg’s Sustainability Report 2005 The Trelleborg Group’s sustainability Each plant supplies data in accordance (number of employees in parentheses): report is published annually and covers with the Group’s standard for sustainability T relleborg A utomotive aspects related to the environment, reporting, and each plant manager is Brazil Guarulhos (752) health, safety and social issues. The aim responsible for quality-assuring the data China Wuxi (245) Czech Republic Dobrovice (63), Hradek (473) is that the report shall give an accurate provided. In addition, further quality France Carquefou-Modyn (427), Carquefou- overview of the Group’s status and controls are performed by the Group’s Polyspace (220), Carquefou-Prodyn (75), Carquefou-Soratech (289),Chemaudin (133), activities in the above areas, as well as environmental staff before the inform- Poix Terron (90), Wirty Les Reims (208), Rethel (169) their business-related consequences. ation is assembled. Data are compared Germany Breuberg (306) Unless stated otherwise, the data with figures from previous years and India Ghaziabad (127) Italy Asti (55), Cirie (236) presented refers to calendar year 2005. with data from similar plants and veri- Mexico Toluca (185) The figures for the preceding year (2004) fied through random sampling against Poland Walbryzch (638) are shown in parentheses. other available information. Slovakia Nova Bana (49) South Korea GyungBuk (250) (prev. Taegu) The report covers the Group’s The sustainability report is not Spain Burgos (137), Cascante (130), Martorell (206), Pamplona (343), Tarazona (81) production facilities, in total 109 (105) externally verified. The information Sweden Sjöbo (102), Kalmar (123) sites. Some units, acquired during 2005, given in the annual report has been Turkey Çerkesköy (212) UK Coventry (125), Leicester (209), West are not yet included. A complete list of examined by the company’s auditors in Thurrock (215), Trowbridge (198 sites included is provided on this page accordance with prevailing practice, and US Benton Harbor (100), Carmi I1 (56), Carmi II2 (94), Dawson (125), Morganfield I (132), under the heading “Plants included.” this also applies to the sustainability- Morganfield II3 (66), Peru (237), Salisbury The report does not cover distribution related information presented in the (36), Sandusky (288), South Haven (123) facilities, warehouses, offices or other annual report. The information in the T relleborg S ealing S olutions operations that have little or no direct annual report fulfills the requirements Brazil Sao Paulo (61) Canada Guelph (149) impact on the environment. Plants that in Swedish law for environmental Denmark Helsingör (365) were divested or where operations ceased information in the Board of Directors’ France Conde sur Noireau (119) India Bangalore (29) during 2005 are not included in the Report. Italy Livorno (208), Rio Saliceto (94), report. This applies to the plants in With regard to the quantitative Spilamberto (15), Torino (164) Malta Hal-Far (707) (prev. Qormi) Ross-on-Wye (UK), Milford Haven (UK), parameters reported, the same reporting Mexico Tijuana (336) Logansport (US) and Österbymo principles apply as in previous years, Poland Czechowice-Dziedzice (283) Sweden Ersmark/Skellefteå (222) (Sweden). unless stated otherwise. In the case UK Ashchurch (339), Bridgewater (139), Newtown (55), Rotherham (105), of carbon dioxide, sulfur dioxide and Swadlincote (208) Changes in reporting: nitrogen oxide emissions resulting from US Broomfield (144), Fort Wayne (266), Somersworth (178), Eugene (22) Beginning with the 2005 report, the burning of fossil fuels, conversion Trelleborg has decided to follow the factors based on the energy content and T relleborg E ngineered S ystems Australia Brisbane (55) (prev. Zillmere) Global Reporting Initiative’s (GRI) quality of the fuel used are employed. Canada Collingwood (45) structure for sustainability reporting. Figures for emissions of VOCs (solvents) France Clermont-Ferrand (630) Germany Rechlin (14) Consequently, the subdivision of the report are based on measurements at the plants Netherlands Ede (57), Hoogezand (38), Sancheville (20), has changed slightly, with additional in- where they occur, but in most cases Ridderkerk (97) Norway Mjöndalen (211) formation provided in accordance with VOC emission data is based on mass- Singapore Singapore (189) the GRI criteria. Certain key figures have balance calculations. The report also Spain Izarra I (69), Izarra II (178) (prev. Izarra) Sweden Forsheda (221), Hemse (80), Mörbylånga also been changed to correspond more includes VOC emissions from paints (102), Trelleborg I4 (450), Trelleborg II5 closely with the GRI guidelines. and lacquers, adhesives and glue. (70), Ystad (89), Örebro (97) UK Hull (51), Runcorn (19), Scunthorpe (22), In previous years’ reporting, the most Knaresborough (59) important key figures were reported in US Clearbrook (102) relation to the number of employees. In T relleborg W heel S ystems the report for 2005, on the other hand, Denmark Hadsten (87) Italy Tivoli (500) net sales are used as the comparative Sri Lanka Kelaniya (434) (prev. Sapugaskanda), figure, except for reporting of work- Malgama (211) (prev. Walgama) Sweden Trelleborg I4 (61), Sävsjö (38) related accidents. The reason for this US Hartville (160) change is that net sales are a more T relleborg B uilding S ystems relevant comparative figure that better Denmark Vejen (73) reflects the development of operations. Finland Vihti (14) Germany Mosbach (107), Lathen (75) Poland Bielsko-Biala (178) Spain Santander (58) Contact: Sweden Bor (65), Höganäs (65), Forsheda6 (109), Flygplansindustrin är en av de mest krävandeRydaholm (83), Värnamo I7 (51), Värnamo Trelleborg Corporate Communications. 8 tätningsmiljöerna. Trelleborg utvecklar polyII - (241) Viktoria Bergman, Senior Vice President, Corporate Communications. UK Minworth (88) Tel: +46 (0) 410-670 00. Mail: [email protected] mera tätningar som förhindrar att en brand sprider sig till exempel från1) Carmimotorn. mixing plant, 2)Carmi moulding plant, 3)Dawsonfabri- Trelleborg Environment. ken, 4)Huvudfabriken, Trelleborg, 5)Trelleborg Industrial Hose, Trelleborg, 6)Trelleborg Forsheda Pipe Seals, 7)Trelleborg Victoria Hellström, Vice President, Environment. Rubber Membranes, Värnamo, 8)Trelleborg Industrial Profile, Tel: +46 (0) 410-670 00. Mail: [email protected] Värnamo
18 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 19 Glossar y
BLIC HA oils SO2 (sulfur dioxide) The Association of European Rubber Manufacturers. Softeners containing a high concentration (>3%) of Sulfur dioxide is formed when petroleum products
Trelleborg participates in the work of the Health & carcinogenic polycyclic aromatic hydrocarbons are burned. SO2 contributes to the acidification of Environment Committee, among other activities. (PAHs). Also known as high-aromatic oils. lakes, watercourses and soils, and causes Website: www.blic.be. coniferous trees to lose their needles. Large Hazardous waste concentrations in the environment are harmful to
Carbon dioxide (CO2) Waste requiring special handling. Different countries human health.
CO2 is formed in all carbon combustion proces- have different definitions and regulations, and ses. The gas is released in substantial amounts national standards are frequently changed, making Sustainability-related costs when petroleum products are used. It is likely that it more difficult to report on hazardous waste. Within These are costs related to measures for preventing, atmospheric emissions of carbon dioxide increase the EU, hazardous waste is classified in accordance reducing or repairing environmental damage directly global warming. with the European Waste Code (EWC). associated with operations. The corresponding measures taken with regard to health and safety in Code of Conduct ISO 14000 the workplace are also included. The costs reported Behavior code for Trelleborg’s employees. Supple- A series of international standards for environmental include, among other items, administration and mented by policies relating to the environment, work- management systems (ISO 14001), life-cycle consulting expenses, fees to authorities, costs for places and relations with suppliers. assessments, environmental audits, environmental introducing and maintaining environmental manage- labeling, environmental performance evaluation and ment systems, and charges for external inspections Environmental aspects environment-related terms and definitions. Many and audits. Beginning with the report for 2005, The parts of an organization’s activities, products plants within the Trelleborg Group are certified in activities relating to cleanup of contaminated soil are or services that interact with the environment. An accordance with ISO 14001. Read more about ISO also included in this concept. overview of the Trelleborg Group’s significant 14001 at www.iso.org. environmental aspects is included in the present Sustainability-related investments report under Sustainability aspects. LCA (Life-Cycle Assessment) These are investments in assets designed to prevent A management tool for assessing and quantifying or mitigate environmental impact and reduce resource Environmental management system the total environmental impact of products and consumption associated with normal operations. The part of the overall management system that activities over their entire lifetime, based on an The corresponding investments made with regard to includes the organizational structure, planning, analysis of the entire life cycle of a particular health and safety in the workplace are also included activities, division of responsibility, practices, material, process, product, technology, service or in this category. Beginning with the report for 2005, procedures and resources for developing, activity. LCA methodology is described in the ISO activities relating to cleanup of contaminated soil are implementing, performing, reviewing and maintaining 14040 standard. reported not as investments but under sustainability- the organization’s environmental policy. ISO 14001 related costs.
is used as the environmental management standard NOX (nitrogen oxides) within the Trelleborg Group. Gaseous oxides formed during combustion VOCs (Volatile Organic Compounds) processes through the oxidation of nitrogen. Harmful The VOCs referred to in this report comprise Global Reporting Initiative (GRI) to human health and the environment. Cause acid non-chlorinated and chlorinated solvents. VOC GRI is an independent international organization rain and eutrophication. emissions contribute to local atmospheric working to develop guidelines for sustainability environmental effects, including the formation of reporting. Read more at www.globalreporting.org. PAHs ground-level ozone. Certain VOCs constitute a direct Polycyclic aromatic hydrocarbons. Some are health risk. GWh carcinogenic. PAHs are released to the atmosphere Gigawatt-hour, 1 billion watt-hours. Unit for from vehicle exhaust fumes and small-scale wood- Work-related accident measuring energy consumption. fueled heating, and in conjunction with vulcanization A work-related accident is a sudden event related to processes in the rubber industry. PAHs also occur in work that gives rise to a physical injury. A typical extremely low concentrations as a result of bitumen injury in the rubber industry is a minor cut or use within Trelleborg Building Systems. crushing injury. Trelleborg reports the number of work-related injuries that give rise to at least one Polyurethane or more days of absence (Lost Work Cases; LWC). Group of polymers with structures linked by urethane The injury rate is then standardized by stating the bridges. At Trelleborg, polyurethane is used for number of such injuries per 1,000 employees O-Rings and solid tires. Various diisocyanates, such (LWC/1,000). as TDI and MDI, are used in the production of polyurethane. Work-related illness A work-related illness is an illness caused by long- PTFE term exposure to a particular factor in the work envi- Polytetrafluoroethylene is a heat-tolerant polymer ronment. Such factors can include repetitive lifting or used in the production of O-Rings at Trelleborg being exposed every day to solvent fumes. Sealing Solutions. The polymer is best-known in everyday life as Teflon, used for example as a surface coating for irons.
18 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 TRELLEBORG AB SUSTAINABILITY REPORT 2 0 0 5 19 Solutions securing values™ by damping, sealing and protecting in demanding environments
Oil rigs in the stormy waters off Russia’s Sakhalin Island are protected from fire by Trelleborg seals. These can withstand temperatures ranging from -39ºC to +1,400ºC while remaining sufficiently flexible to maintain a tight seal during seismic movements, providing two hours of grace during a ”jet fire,” when burning gas creates a flame like that of a welding torch.
Trelleborg provides damping for bridges and other infra- structure constructions. The Larreatagis viaduct in Spain is one kilometer long and 75 meters high and crosses a valley in an earthquakeprone part of Spain. Elastomer bearings damp movements caused by weather conditions and seismic instability and can cope with horizontal move- ments of more than one meter.
Jet aircraft, such as the giant Airbus A 380, are sealed by Trelleborg. The seals in the hydraulic cylinders of the A 380’s crucial primary flight controls can withstand pressures of 350 bar and temperatures ranging from -54ºC to +200ºC. More than 400 different seals help secure the aircraft’s flight performance. The technology behind these seals is also used in fire seals that can withstand flames of 1,100ºC from, for example, engine fires.
Trelleborg AB (publ), Box 153, SE-231 22 Trelleborg Tel: +46 (0) 410-670 00 • Fax: +46 (0) 410-427 63 E-mail: [email protected] • Internet: www.trelleborg.com