What is gold’s value? Letter from the CEO We at Argor-Heraeus have always given equal value to sustainability and the materials we process. A value that is reflected in the way we all work every day, and that we have now decided to make official in this document. What led us to this decision? Time has shown that we have taken the right path: we are a mature Company, assuming our responsibilities for our economic, social, and environmental impact. Nevertheless, to be socially responsible for all purposes and effects we have understood that it is essential to go beyond the limits of our organisation and that of our business partners. We must transmit our commitment to institutions, to the public, and to the media, i.e., to everyone for which Argor-Heraeus’s commitment to sustainability may have value. Therefore, this first Sustainability Report stems from our desire to offer society at large a presentation made of words, numbers, and images that explain our social-environmental commitment and provide a trans- parent assessment of whether our annual goals for improvement have been achieved. With this important promise, we all pledge to improve the sustainability and efficiency of a market on which we have operated for sixty years. 2 3 ARGOR-HERAEUS SA Overview Via Moree 14 Guide to the report 6 CH-6850 Mendrisio Tel. +41 91 640 53 53 Our history 8 Fax +41 91 646 80 82 Our shareholders 10 [email protected] The Group 11 Corporate governance 12 Our operations 13 Accreditations and recognitions 14 Our stakeholders 16 Our approach to sustainability 20 Economic responsibility Distribution of added value 22 Suppliers of services and accessory products 24 Our customers 26 Environmental responsibility Water consumption 28 Chemical consumption 32 Energy consumption 36 Emissions 40 Waste material, packing materials, noise 42 Social responsibility Composition of personnel 44 Health and safety at the workplace 48 Training 50 Activities with our stakeholders 52 4 5 Guide to the report Scope. In this Sustainability Report, The value of the report’s contents is completeness: we selected indicators This report is organised in two macro - The annual report, organised by first edition, we have chosen for reasons the first such report by the Argor-Heraeus ensured by a careful preliminary that provide a complete picture of sections: the first is descriptive, and subject matter (for example: water con- of completeness to report particularly Group, we have decided to concentrate analysis, which led to selection of the the economic, social, and environmental offers a brief profile of the Company sumption, use of chemicals, etc.), first significant events in terms of social- on Argor-Heraeus SA. performance indicators most represen- impacts generated by our Company; (from historical outline to corporate provide quantitative data in absolute environmental impact, even if occurring We believe that the exclusion of our tative of the Company’s impacts on significance: for many years, Argor- governance) and a general picture of terms for an overall view of the impact outside such three-year horizon. affiliates Argor-Heraeus Deutschland, economic, social, and environmental Heraeus has compiled an enormous its stakeholders, with emphasis on of our business. Then (where possible) Argor-Heraeus Italia, and Argor-Aljba systems. Specifically, these indicators amount of information concerning the impacts that Company operations we have tried to relate such values will not compromise the completeness comply with the following criteria: the processes it performs. In order to have on such parties and how Argor- to a parameter (for example: production) of the report, given that our headquarters provide a full but concise description Heraeus manages relations with them. able to measure the efficiency of in Switzerland employs almost 90% to our stakeholders, we selected The second regards the Company’s our performance trend. As a rule, such of our personnel and processes all of the indicators we consider the most annual report, with details of economic, quantitative data cover a three-year the Group’s precious metals. significant and indispensable for social, and environmental results period; this horizon will be maintained Nevertheless, we intend to include all of forming an opinion/assessment of achieved in the reference period. in future reports. Because this is the our affiliates in subsequent editions. performance in each area; measurability: quantitative indicators will be comparable from year to year. 6 7 Our history 1951 1973 1986 1988 1999 2002 2004 2005 2006 2010 Argor SA is UBS acquires UBS and Heraeus The new Heraeus Entrance of Münze A representative office Argor-Aljba Argor-Heraeus Approval and formed in Chiasso, 100% of Group (Germany) headquarters and Management Österreich to in Chile is opened; is formed in Italia is formed expansion of Mendrisio, Switzerland the Company form a joint venture, in Mendrisio, acquire 100%; complete the new Argor-Heraeus Deutsch - Mendrisio, Switzerland facility creating Switzerland entrance shareholder structure land is formed Switzerland Argor-Heraeus SA is inaugurated of Commerzbank with Heraeus, International Commerzbank, and Management 8 9 Our shareholders The Group Heraeus (26,5%) is a German multi- Commerzbank (26,5%)is a large pri- Münze Österreich (24,3%)%), the fa- national with over 12'000 employees vate German bank with almost 60'000 mous Austrian mint since the 12th and has operated in the precious met- employees, more than 14 million pri- century, is 100% controlled by the Na- als and hi-tech sector for 160 years. vate customers, and a million busi- tional Bank. Its shareholding provides ARGOR-HERAEUS SA Its shareholding provides important ness customers worldwide. As the Group well-established marketing synergies at the industrial level and in shareholder, it provides the Group fi- and commercial know-how, with spe- terms of research and development. nancial know-how and services. cific reference to creating synergies in distribution channels. ARGOR-HERAEUS Deutschland 100% Management (22,7%) Fully paid-up share capital ARGOR-HERAEUS Italia 100% CHF 6'369'000 ARGOR-ALJBA 50% 10 11 Corporate governance Our operations For Argor-Heraeus, We have a lean structure, organised into profit centres: bank products and mining corporate governance (refining and foundry), industrial products (mechanics and semi-finished products), Refining Transformation into finished Alloys and semi-finished products and precious metal services (trading and other services). All of these profit centres are - gold products for the watch industry is an essential tool served by a single financial, control and compliance, personnel, and IT department. - silver - bank ingots (cast and minted) for ensuring correct The application of rules and procedures is guaranteed by: - platinum - Kinebar® Precious Metal Services - palladium - Iridor® products - a dedicated control body, managed by an engineer responsible for safety at management by - coins and medals Diamond-Like-Coatings the workplace, which conducts social-environmental audits of all Company dialong® and dianoir® means of transparent departments. The audits refer to three areas: environmental protection, safety functioning of the at the workplace, and precious metals security, each directly supervised; Company’s directive -a Compliance office, which supervises correct application of laws and of internal rules enacted by management; bodies and internal -a Risk Audit Committee, formed within the Board of Directors, devoted control systems. to controlling risks deriving from the Company’s operations in order to prevent and limit the consequences of unexpected results and to identify and exploit growth opportunities; - internal Due Diligence procedures. 12 13 Accreditations and recognitions Argor-Heraeus is: - a recognised LBMA (London - holder of the Trade, Melter and - accredited by the Swiss Accredi- - a member of the Responsible - a member of the Association - recognised as a Professional Bullion Market Association) Good Assayer License rissued by tation Service (SAS) as a testing Jewellery Council (RJC); Suisse des Fabricants Training Company by the Canton. Delivery Producer and, along the Swiss Central Office for Precious laboratory for analyses of precious et Commerçants des Métaux with only four other companies world - Metals Control; metal alloys; Précieux (ASFCMP); wide, a referee for the control - authorised by the Swiss Financial - a certified and voluntary participant of quality standards of the LBMA Market Supervisory Authority in the Swiss CO emissions Good Delivery List members; ² (FINMA) to operate as a financial reduction programme; broker. This means that the Company - a recognised operator on LME complies with all Swiss anti-money (London), TOCOM (Tokyo), laundering regulations and that COMEX/NYMEX (New York), DMCC it is regularly audited in this regard; (Dubai); STS 423 14 15 Stakeholders Goals 2010 participation instruments As part of its commitment to sustainability, Argor-Heraeus con- Greater confidence in management stantly interacts and dialogues with its internal and external part- Periodic communication in line with the shareholder’s infor- Common strategy and vision ners. This proactive approach began years ago and, thanks to the mation needs (example: monthly data, newsletter) Business development support Sustainability Report, has become an annual means of communi- Shareholders Transparent communication and continuous dialogue Shareholder satisfaction cation