Sustainability Report FY2018 Vanderlande Industries Holding B.V. Financial Year 2018 MOVING YOUR BUSINESS FORWARD Contents About this report 3 Highlights 4 Foreword from the CEO 5 Company profile 6 Core and brand values 7 Company locations 8 Sustainable ambition 10 Stakeholder inclusiveness 12 Materiality assessment 13 Health and safety at work 15 Design safety and ergonomics 18 Employee development and training 20 Employee engagement 22 Energy use (products and systems) 26 Sustainable product design 28 Responsible sourcing 30 Circular solutions 32 Corporate governance 35 GRI content index 38 2 About this report This report addresses the sustainability approach, position Vanderlande is not obligated by legislation to report on and performance of Vanderlande Industries Holding B.V., a sustainability. However, the company believes in transparency fully owned subsidiary of Toyota Industries Corporation (TICO). and has chosen to voluntarily publish this Sustainability It has been prepared in accordance with the GRI standard: Report. For this reason, it has not been externally assured. core option. Vanderlande acts in a practical way to apply the precautionary This is Vanderlande’s first report in accordance with the GRI principle in its approach while maintaining its competitive standards. For this reason, it should be as a new baseline and position in the market. The company takes account of scientific not compared with the previous report in respect to material evidence and global trends to reduce carbon emissions and to topics and their respective boundaries. act responsibly. All data refers to Vanderlande’s financial year 2018 (1 January For more information on Vanderlande and its reports, please 2017 to 31 March 2018) and represents every employee refer to www.vanderlande.com. Questions regarding the globally, unless otherwise stated. The financial year has been content of this Sustainability Report can be addressed to extended to 15 months due to the acquisition of Vanderlande [email protected]. by TICO in 2017. Vanderlande’s previous Sustainability Report was published on 3 June 2015 and covered the financial year 2015 (1 April 2014 to 31 March 2015). The company’s ambition is to now produce a Sustainability Report biennially. > Vanderlande Sustainability Report FY2018 3 Highlights Foreword from Sustainable Health and safety at the CEO ambition work see page 5 see page 10 see page 15 Design safety Employee engagement Sustainable and ergonomics product design see page 18 see page 22 see page 28 Responsible sourcing Circular solutions GRI content index see page 30 see page 32 see page 38 4 Foreword from the CEO It gives me great satisfaction to welcome you to Vanderlande’s latest Sustainability Report. This documents our performance with regard to this topic during FY2018, as well as outlines our overall philosophy, through which we will further strengthen our approach. Sustainability is an integral part of our corporate strategy and provides a strong, long-term basis for doing good business with our customers. In today’s world, the increasing needs of our growing population create more strain on the planet’s natural resources. As a result, raw materials are becoming increasingly limited in availability. However, the rising levels of digitalisation result in smarter responses from the industry, enhance customer experiences and create insights into sustainability issues, as well as provide intelligent solutions to these challenges. Innovative and fast-growing companies such as Vanderlande must For example, in the airports market, we recently launched FLEET, strive harder than ever to reduce CO2 emissions, help to establish a flexible baggage handling solution that uses autonomous circular-based economies, look after the long-term wellbeing vehicle technology. It makes a bold statement of intent from of its people, and respect the natural capacity of our planet. By Vanderlande to the industry, due to the high level of innovation driving forward with our vision on sustainability, Vanderlande is involved and the fact that we are delivering FLEET ‘as a service’ to displaying its dedication to being a responsible entity within the our customers. In addition, it contributes strongly to our ‘green’ global community. credentials, because FLEET consumes up to 50% less energy than a traditional baggage system. This means that we not only look after our own needs as a business, but also respect our position in the world and understand the At Vanderlande, we not only focus on our economic and ecological impact of our activities. Sustainability is part of environmental impact, but also on our internal processes and Vanderlande’s everyday working practice and, in this way, we can people. We promote a healthy work environment for every further improve the competitive positions of our customers. It is colleague around the world in line with good welfare standards and already a fundamental part of our design processes and means strive to support their personal growth. Through this approach, we that we look at the materials we use to see if they can be recycled. intend to develop the skills and knowledge that are required both now and long into the future. We are inspired by circular economy principles and see it as our responsibility to cooperate with partners, key customers and other In February 2018, we were awarded the highest rating in the third parties to evolve towards circular systems. Vanderlande can category of ‘Manufacturing and Industry’ in the Best Employer achieve positive outcomes by offering business models, such as Survey (The Netherlands). This result is based solely on the ‘managed services’ and integrating our activities along the entire personal feedback of our colleagues, which also shows that we value chain. By doing so, we can expand our areas of influence actively allow our colleagues to speak up about any potential and allow our sustainable approach to become even more visible. issues and respond directly to their opinions. Our people can also help us to make a difference and we want to attract highly motivated employees, who can proactively add We are proud of the progress we have made on sustainability, value and align with our strategic goals. and the recent acquisition of Vanderlande by Toyota Industries Corporation (TICO) creates significant opportunities to investigate Sustainability is given a high priority within our organisation and and develop further initiatives together. TICO has a clear vision it is regularly discussed at board level. Our current structure offers on sustainability and displays an active commitment to corporate transparency and visibility, but we are also continuing with our social responsibility. As a result, we expect that the knowledge- efforts to make sustainable thinking more driven from the bottom sharing and cooperation between both organisations will also up. In recent years, it has been satisfying to see sustainability have positive overlaps in this field. become further embedded within our DNA. Today, all of our employees internationally have the power to make a positive Vanderlande has never been more ready to achieve the targets it impact with regard to our ambitions. has set itself on sustainability, and we hope to pass on the benefits to our customers. With the knowledge, skills and enthusiasm of Due to our market-leading position, Vanderlande is in an ideal our employees and partners, we can look forward to achieving an position to assist our customers in implementing their own exciting programme of activities. sustainability strategies, and we can also exert a positive influence on our suppliers to help us achieve this. Our approach Remo Brunschwiler has already yielded some exciting results and I am delighted that President & CEO Vanderlande we have been helping customers across all of our core markets to realise their sustainable ambitions. > Vanderlande Sustainability Report FY2018 5 Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company is also a leading supplier of process automation solutions for warehouses. Vanderlande’s baggage handling systems move 3.7 billion pieces development. The two companies have a strong strategic match of luggage around the world per year, in other words 10.1 million and the financial strength of Toyota will help Vanderlande to per day. Its systems are active in 600 airports including 13 of continue with its sustainable profitable growth. the world’s top 20. More than 39 million parcels are sorted by its systems every day, which have been installed for the world’s Vanderlande has more than 5,500 employees, all committed to leading parcel companies. In addition, many of the largest global moving its customers’ businesses forward at diverse locations on e-commerce players and distribution firms have confidence in every continent. With a consistently increasing revenue of more Vanderlande’s efficient and reliable solutions. than 1.4 billion euros, it has established a global reputation over the past seven decades as a highly reliable partner for value- The company focuses on the optimisation of its customers’ added logistic process automation. business processes and competitive positions. Through close cooperation, it strives for the improvement of their operational Group structure activities and the expansion of their logistical achievements. Vanderlande Industries Holding B.V. is a limited liability company Vanderlande’s extensive portfolio