MBA Polymers Corporate Social Responsibility Report The world s leading sustainable polymer company

Transcription

1 MBA Polymers Corporate Social Responsibility Report The world s leading sustainable polymer company

2 Leading sustainability 1 Introducing MBA Polymers 2 Sustainability Our Vision 3 Sustainability Our policies 4 Our integrated management system for health, safety and welfare Our objectives 5 Being Safe UK China Austria 6 Caring for the environment UK Reducing our own waste The next big step China Austria 7 Being a good neighbour Working with the local community In the UK In China In Austria 8 What our customers expect... and we can deliver We transform post-consumer plastics into high quality raw materials, conserving natural resources, cutting waste and accelerating the transition to a circular economy. MBA Polymers - Corporate Social Responsibility Report 5

3 Who we are... MBA Polymers is the world leader at producing post-consumer recycled plastics from end-of-life durable goods. Our pure, consistent, and reliably available materials provide our customers cost advantage and price stability. We source 100% post-consumer feedstock diverted from landfill or incineration. We save over 80% of the energy and 1-3 tons of CO 2 for each ton of virgin plastics we replace. Our proprietary processes require less than 20% of the energy needed to produce virgin plastic from petrochemicals, saving enormous amounts of greenhouse gases. Major global manufacturers then use our plastics to create more sustainable products for their customers, while committing to a more responsible supply chain. This closed loop supply cycle is taking our world in a direction that can sustain manufacturing and consumption and at the same time protecting our limited natural resources. Of the 250 billion kgs of plastic used annually on a global basis, less than 10% of these plastics from complex waste streams such as durable goods are currently recycled. In comparison, over 90% of the metals, such as steel, copper and aluminium, are recycled from similarly complex waste streams. Plastics are far more valuable than steel on a cost per weight basis but at present are hugely undervalued as recovered materials. We believe this is about to change. By buying post-consumer plastics from MBA, customers are helping conserve natural resources, save energy and reduce the carbon footprint of their products. At the same time they re also demanding the same dependability of supply and quality of product. MBA can help meet all those demands. 250,000,000,000kgs Over 20 years, we have shown a commitment to sustainability and social responsibility. We will continue to sustain our vision through recognising and implementing good practice and encouraging a culture of responsibility and action in everything that we do. MBA Polymers - Corporate Social Responsibility Report 5

4 Our Vision MBA Polymers is changing the way the world sees recycled plastic, creating a highly valuable commodity whilst providing a significant economic benefit, all in a sustainable way. Quite simply, that s our vision. To support that, we have a set of values which are an integral part of the way we work. We believe that if everyone understands these values, then we will have a much stronger culture and in turn a much stronger business. They all create and add value for MBA overall. These are our STAR values...safety...teamwork... Agility...and Respect Safety Safety means that if you are an employee, or visitor to a site, then you should arrive and leave safely. At all times we have a duty to our protect you. We also expect our employees to protect each other, look after each other, wear the correct protective clothing and ensure that when walking round a site they observe the safety rules and encourage others to act safely. Safety is proactive. We encourage staff that if they see someone doing something safely and well, go over and encourage them to continue doing it! Everyone in MBA is encouraged to look after each other, share ideas and protect each other so at the end of a day we all go home safely to our families. Teamwork Teamwork is about the way we do thingsmaximizing the benefits of everyone s individual skills and talents. It s about management teams working together; operators on the shop floor working together to optimise performance; safety teams working on improving site safety; engineering teams helping operations and sales teams working with customers to help find solutions to their problems. Everyone working as a team will help solve problems, create great value and deliver success for MBA and our customers. Agility Thinking quickly and speedily, changing direction, adapting technologies, responding to market changes and answering customer requirements in a fast and effective way all demonstrate agility. Some of our best examples are around technology transfer, where, for example, we ve taken ESR technology developed in Austria and China and used that to transform ASR waste in the UK. Another example is where we ve responded quickly to customer requirements by doing something different and adapting it to meet a customer s needs, turning what was a customer problem into a great new product that gives us a market advantage with a re-cycled solution. We re proud of our ability to think out of the box, coming up with unique solutions, rethinking some of our technology and bringing new solutions to customers. Respect Clearly MBA Polymers respects the environment - taking what is waste material and turning that into virgin polymers, saving natural resources and minimising waste sent to landfill That s respecting our environment. Respect covers a number of areas covered in this report. For example, the work we do with our communities around our Worksop plant where, (for example), we have enabled the local community to use the sports facility adjacent to the plant. But it goes significantly beyond that as you will read in our Working with the local community section. But respect is also about understanding each other. We have operations in China, in Austria and in the UK. We want to understand each other s cultures, how people think, respecting each other and working together to help share ideas and understand their point of view. It s about taking the best concepts and getting better solutions by sharing technology, sharing thoughts and respecting each other. This will ultimately build a stronger company. So taking all of these together we respect the world we live and work in. And beyond that...? We aim to be a lively, stimulating and exciting place to work, where all employees have the courage to question, and all functions and individuals are valued. We can only achieve our goals through clear and regular communication, encouraging creativity and setting clear objectives at every level. We will continually improve and we will continue to be an ethical and responsible company. Sustainability MBA Polymers - Corporate Social Responsibility Report 6

5 Our Policies MBA Polymers believes that to be successful it must act responsibly and with integrity in all its activities. Throughout the world, we re committed to our business being conducted in a way that s consistent and with, and relevant to good practice and sound policies Everyone within the company has a responsibility to ensure we do that wherever we operate in the world We expect all our employees to work with our STAR values and ensure that all our business practices are conducted with integrity We treat our employees fairly and provide a rewarding environment in which they work and develop We respect our customers and suppliers and aim to treat them in an honest and responsible way, wherever we operate We will reduce any negative impacts on the environment that might be linked with our operations or our products, seeking new ways to conserve natural resources and innovating to improve our products and processes. We will be a good neighbour, keeping our own house in good order but also reachingout externally to support and understand our neighbours. We will focus on providing educational and academic support for our employees and engage in projects that will benefit our local communities We will also be on the lookout for opportunities to talk to all our stakeholders whether that be the local football club in Worksop, the Government minister responsible for Climate Change, or an operations director of one of our major customers Our integrated management system for health, safety and welfare Successful environmental, health, safety, and quality management is of prime importance to our business. We are committed to operating in a manner that prevents pollution, prevents accidents or incidents, lapses in product quality, complies with all applicable legal and regulatory requirements, communicates clearly-stated performance objectives and demonstrates continual improvement across all our operations. MBA has a management framework which joins up all aspects of quality, health, safety and the environment. It integrates best practice in all these areas into the operating systems of the business. We provide the necessary resources for the implementation of this integrated system including a responsible director and a team of managers/advisers. The objectives of an integrated system MBA is committed to continually improve in all aspects of its management system and working practices and through the structures established in this system we will seek to understand how we are performing on the key elements of our business and by doing that setting appropriate objectives and targets. MBA s quality, health, safety and environmental improvement targets are agreed and communicated to employees at the beginning of each year. They include targets for such areas as Safety (Reduction of accidents), the Environment (Energy usage and minimizing waste and Quality (Customer service and product quality). Performance against these targets is measured and regularly reviewed by senior management. These reviews consider the overall performance in achieving targets, the factors that have contributed success or failure and new or amended targets. Other SHEQ objectives are also monitored and minimised such as: Compliance with applicable legislation Our carbon footprint Our waste to landfill Our pollution potential - water, air, noise and chemicals All accidents and incidents These objectives are also reviewed annually by senior management to determine if they have been appropriately communicated and understood by all stakeholders. To support these objectives, MBA Polymers uses systems and procedures that deliver the highest standards of performance by ensuring: Well maintained plant and work systems that are safe and without risk to health, the environment or product quality Suitable arrangements for the selection, use, handling, storage and transport of materials and products Information, instruction, training and supervision to enable work to be carried out safely, without risk to the environment and by competently trained people Safe and healthy working environments with adequate welfare facilities Measures to prevent polluting emissions to air, land or water Effective and tested emergency response procedures Proper management of the use of natural resources - such as water Control of noise, dust, smell, vibration, traffic movement or other nuisance which may cause offence to the local community or environment Management of waste disposal including recycling Effective communications And finally as part of this system we have also developed clear safety, health, quality and environmental performance indicators which include: accident and incident performance energy use and carbon footprint performance annual environmental, health, safety, and quality objectives training achievements customer satisfaction audit results and follow-up actions MBA Polymers - Corporate Social Responsibility Report 8 MBA Polymers - Corporate Social Responsibility Report 9

6 Being safe Our greatest assets are every one of our employees. We believe any accident is unacceptable and strive to achieve zero accidents. MBA Polymers is committed to continually improve our safety performance. It is a key business driver and we do all we can to ensure a safe and healthy environment for all who work for us and everyone affected by our business. Equally, it s our aim that the same high standards will be reflected in the design and operation of our plant and equipment. We will achieve this by: Safety Ensuring full compliance with all applicable legislation and best practice guidance. Having management systems and structures in place that consider health and safety risks at every level and in every aspect of the organisation Regular consultation on safety with everyone involved or affected by our operations Creating of a workplace culture which supports a questioning attitude to H&S standards Ensuring staff are suitably trained, competent and have the right safety attitude and awareness Having easily and readily available health and safety advice, information and support Reporting and investigating events openly with the aim of preventing repeat incidents and ensuring continuous improvement Continuous monitoring of operations to ensure they are compliant and risk free Everyone s commitment to Health & Safety improvement should be regarded as something of which we can be justly proud. As part of delivering this policy we managea number of programmes: Risk We maintain a register of Risk Assessments in order to: demonstrate a suitable review all of operating activities identify the associated HSE aspects assess the potential impacts arising from these categorise the impacts to assess their significance put-in-place processes and procedures to minimise the likelihood of the impacts causing injury or environmental damage Employee training and competences We ensure that employees are competent for their positions and can improve their performance by having access to appropriate training, development and coaching. To do this we: Recruit and select candidates that have the necessary mental and physical abilities to do the job or to acquire them through training and experience Ensure a systematic way of identifying health and safety training needs arising from recruitment or change of role, equipment and processes Ensure that skills and training are refreshed periodically Provide adequate information, training, supervision, coaching and mentoring Carry out confidential pre-employment heath assessments necessary to determine competence Provide induction, skills and knowledge training, augmented by professional and further education training as required. Communication, participation and consultation The company consults with employees on a whole range of topics Changes that may substantially affect employee s health and safety Appointments of employees helping apply health and safety law Any information resulting from risk assessments Planning and organisation of any health and safety training Health and safety consequences of the introduction of new technologies MBA Safety Progress MBA Polymers is committed to providing a safe and healthy work environment for all employees. Management systems have been implemented in each plant that give top priority to health, safety, and environmental stewardship. There has been a concerted effort to reduce accidents by increasing safety awareness, and promoting a culture where employees work together to eliminate hazards and follow safe work practices. Efforts to promote a culture of safety have included having active safety committees in each plant, providing regular safety training, conducting regular site inspections with follow up corrective actions, performing detailed accident investigations, completing risk assessments for all work activities, strictly enforcing PPE regulations and implementing 5S housekeeping programs. As a result, the lost time accident rate has shown a steady decline with the exception of 2012 when the UK plant was being commissioned and the workforce was inexperienced and operating unproven equipment. Since 2012 the UK plant as well as the Austria and China plants have continued their efforts resulting in a continued decline in the accident rate. Moving forward the goal is to further reduce the accident rate by strengthening the safety culture, continuing the programs that are in place and remaining diligent to eliminate hazards before they become accidents. MBA Polymers - Corporate Social Responsibility Report 10 MBA Polymers - Corporate Social Responsibility Report 11

7 China Our aim at each and every MBA Polymers plant is to achieve zero incidents or accidents. At our China plant there was one Lost Time Accident (LTA) in a small fire which was contained and had limited impact, but we need to improve on that performance and minimize risk in the future. In meetings run by the General Manager, we analyse and discuss each incident with employees and have taken actions to avoid similar incidents happening in the future. The GM takes a strong personal interest in the subject and undertakes personal plant inspections. In daily operations meetings, safety is always the first item on the agenda. Ultimately a report is made to the Board by the Global Operations Director each quarter. More generally, we operate to all relevant international standards. All new employees are given an induction into the company including safety. We are assessed annually by the Chinese Government s safety at work organisation, Nansha Administration of Work and Safety Bureau. We are also continually looking at ways that we can engage every employee and run a programme called Lessons from Losses where incidents are regularly reviewed and discussed together with relevant facts, figures and photos. Posters are used around the site to highlight good practice. In short, we proactively challenge ourselves and our employees to encourage a strong MBA Polymers safety culture at all times. we proactively challenge ourselves and our employees to encourage a strong MBA Polymers safety culture at all times. MBA Polymers - Corporate Social Responsibility Report 12 MBA Polymers - Corporate Social Responsibility Report 13

8 Austria Our aim at each and every MBA plant is to achieve zero incidents or accidents. At our Austrian plant there were five Lost Time Accidents (LTAs) in 2013 and five in Clearly this is not satisfactory and we are undertaking a number of activities designed to reduce that number. What is significant is that an employee has been hurt at work. That s simply not acceptable. The challenge has been that the incidents have all happened in different processes and different production areas with no overall pattern. For example, an employee lost his balance stepping backwards from a ladder and suffered a stomach injury. A bruised hand was caused by a falling filter cover lid. In meetings run by the Operations Manager, we have analysed and discussed each one with employees. We have taken actions to avoid similar incidents happening in the future. In daily operations meetings, safety is always the first item on the agenda. Ultimately a report is made to the Board by the Global Operations Director each quarter. More generally, we operate to all relevant international standards and have 95 staff (70 production staff) working four shifts a day, 24/7. All new employees are given an induction into the company including safety. We are assessed unannounced by the Austrian Government s Health and Safety Executive concerning labour conditions on the shop floor and legal compliance. We are supported by the Austrian Government s safety at work organisation, the Austrian Accident Insurance Company (AUVA). We are also continually looking at ways that we can engage every employee and run a programme called Lessons from Losses where incidents are discussed together with relevant facts, figures and photos. Operations Manager Daniel Forstner discusses Lessons from Losses with employees MBA Polymers - Corporate Social Responsibility Report 14 MBA Polymers - Corporate Social Responsibility Report 15

9 Caring for the environment Our environmental policy MBA Polymers has identified and communicated the potential environmental impacts of our operations and the methods of preventing and mitigating those impacts to continually improve our environmental performance. The most significant environmental aspects have been identified as: Airborne dust Controlled waste management Chemical storage We are committed to implement all reasonable measures to prevent any negative impact on the environment over which we have control or influence. We set our objectives to reflect this and review them periodically to ensure compliance. All employees shall be trained and competent to take such steps as are necessary to ensure compliance with current legislation and other requirements to which the company subscribes. It is our intention to achieve our business aims whilst satisfying rising environmental standards and encourage the adoption of these principles in our suppliers, users and contractors. We are committed to improving our environmental performance by the continual improvement of our environmental management system. We endeavour to reduce or remove our environmental impacts wherever practical. Breaking new ground There are two important areas where we are really driving the goals and objectives this Environmental Policy and ensuring our activities continue to break new ground. The first is reducing our own waste Our overall business focus is the reduction of plastics waste, but we have recently put a large amount of effort into avoiding sending our own waste products to landfill. For example, of the waste from Worksop: Leaving... So...only 70% 15% 5% 3% 1% 1% 3% 2% is sent to a third party to be processed into SRF (solid recovered fuel) which is a substitute for conventional fuel grades in generating energy is used as an alternative fuel in the production of cement is a P121 by-product - predominately plastic - and sold to plastic composite panel manufacturers in the UK & Europe is waste generated from the extrusion process which is now granulated and sold as a secondary product into plastic compounders is waste generated from the extrusion process which is now granulated and sold as a secondary product into plastic compounders is waste generated from the extrusion process which is now granulated and sold as a secondary product into plastic compounders as Filtercake, which is processed and sent to landfill is general waste and sent to landfill 5% of the material that was original delivered to us is now sent to landfill. MBA Polymers - Corporate Social Responsibility Report 16 MBA Polymers - Corporate Social Responsibility Report 17

10 Our next big step... towards the circular economy A major change to the management of plastic waste in the UK is the coming on stream of European Metal Recycling (EMR s) new recycling facility at Oldbury near Birmingham, which will transform MBA s supply position over the coming months. EMR is the leading recycler in the UK who handle around half the end-of-life vehicles recycled every year in the UK. Recycling of cars has been law for a number of years and is now strictly enforced. Nearly 2 million cars are removed from our roads every year in the UK alone and scrap recycling has become a highly sophisticated multi-billion worldwide business. But cars are not all metal, and a vehicle s complex construction and use of a variety of materials, presents a major recycling challenge. Around 15% of a car these days is plastic. Through their network of facilities EMR safely de-pollute the cars, removing tyres, draining fluids, removing catalytic converters and deploying air bags. What s left is then processed in ten massive shredders situated around the UK to reduce the cars to small pieces, remove the metal, and create what s known as Auto Shredder Residue or ASR. The 75% of a car that is metal can be removed relatively easily...by conventional magnets and other specialised sorting techniques. But recovering the non-metallic remainder a complex mix of rubber, plastic, glass and metals - has been seen as a major barrier to the UK increasing its end-of-life vehicle recycling rate from 85% in 2007, to the 2015 goal set by the Government of 95%. But EMRs new state-of-the-art metal and plastics recovery plant at Oldbury is now set to take a massive step forward, hugely adding to their capability of further separating the waste material for additional recycling and recovery. At around 150 million, it s one of the UK s largest single investments in waste recycling. The Oldbury plant is designed to maximise the recycling of all those commodities and even the reside can become a fuel. That waste will be used to generate electricity for the national grid. EMR have formed a joint venture with Chinook Sciences to build the first commercial scale gasification plant in the country to use ASR feedstock and will be capable of generating up to 30 megawatts of electricity, enough for a medium size town. When the plant is fully on-stream, it will have a capacity of around 500,000 tons, and the material left finally for sending to landfill will be less than one per cent. 50,000 tons of that output is plastic concentrate, which will come to MBA Worksop where it will be further refined into a virgin equivalent polymer. For MBA, getting ready to handle this supply has been a significant challenge. It has meant adding scale, loading up the plant and turning what is normally landfill into sustainable polymers that can add value to our customers and grow our business. This growth has also enabled us to bring more jobs into the business and help us grow and become an even more sustainable company. At Worksop a number of site improvements have been made to be able to handle this increased supply - removing bottlenecks and making important investments to ensure we were going to be able to maximise the output. Around 2 million of improvements have been made to handle the increased supply such as a massive concrete pad which has been added to give 10 times more storage capacity. MBA s own waste stream has also been optimised to minimize landfill. MBA is taking another big step towards closing the loop, not just avoiding landfill, but turning what is waste plastics into renewable applications and more importantly as good as virgin material which has a much higher carbon footprint. So it s about saving carbon, reducing carbon usage and turning waste plastics into new products for the future. The Oldbury plant is now ramping up to full production. Once that is achieved we re considering exporting the technology to other parts of our business around the world. The benefits are not just about increased volume, but improved customer mix, improved yield, a better product and less material going to waste. So everything we re doing is making MBA into a stronger business. MBA Polymers - Corporate Social Responsibility Report 18 MBA Polymers - Corporate Social Responsibility Report 19

11 China All environmental activities at MBA s China plant are controlled by an environmental permit issued by the Ministry of Environmental Protection and the Nansha Environmental Protection Bureau (EPB). The permit gives us the limitations and consents for emissions of dust, Volatile Organic Compounds (VOCs), water and noise. All these activities meet ISO standards and requirements. Austria All environmental activities at MBA s Austrian plant are controlled by an environmental permit issued by the Austrian Environmental Ministry and the local Amstetten District Authority. The permit gives us the limitations and consents for emissions of dust, Volatile Organic Compounds (VOCs), water and noise. Air Water Noise Air Water Noise We have limited dust emissions which are controlled through extraction systems. To ensure compliance, these are monitored and reported on quarterly through an external monitoring agency. We have a similar system for VOC s which are also controlled through extraction and monitored quarterly for compliance. Under local authority consent, the release of our process water is controlled and much of it is recycled resulting in reduced environmental impact. Regular testing is also carried out. Noise emissions are controlled to agreed standards which are regularly monitored. Sound is controlled on site through use of sound walls and restriction on vehicle movements, both of which minimise disruption to the local community. Emissions are monitored to ensure compliance and an independent agency completes and reports quarterly. We have limited dust emissions which are controlled through extraction systems. To ensure compliance, these are monitored and reported on annually through an external monitoring agency. We have a similar system for VOC s which are also controlled through extraction and monitored annually for compliance. Under local authority consent, all our process water is released for treatment at the local water treatment plant. We use a one micron filter for screening. Regular tests are carried out by an external organisation which undertakes quality checks. Noise emissions and monitoring standards are agreed with the local authority. Sound is controlled on site through use of sound walls and restriction on vehicle movements Emissions are monitored to ensure compliance and an independent agency completes and reports annually. All emissions are tested quarterly by an independent agency and reported to the EPB with no issues to date. Overall, we are proud to have achieved an environmental clean sheet over eight years of operations. Daniel Forstner (right) discusses the regular water quality report with Maintenance Manager Christian Holzer MBA Polymers - Corporate Social Responsibility Report 20 MBA Polymers - Corporate Social Responsibility Report 21

12 Reaping the rewards of our six year plan in Austria The Austrian plant has made the journey from paying for the disposal of its waste materials...to significantly improving its commercial returns from selling by-products and higher value plastics... In Austria we have also looked at electronics waste in the round... In a little over six years, MBA Austria has evolved from being loss-making, into the profitable high-technology business that we see in It s been done by adopting the relatively simple principle of maximizing the yield and making a commercial return from as much as possible within the raw source material - Electronic Shredder Residue. This strategy was set up by the By-product Business Director in 2009 and is consequently executed until today. MBA s main business is creating recycled plastics, but we re now converting as much source raw material as possible into other usable materials. MBA Polymers Austria is located in Kematen an-der-ybbs and started commercial operations in early A joint venture with the Austrian Müller- Guttenbrunn Group, the plant produces high-quality post-consumer ABS, HIPS, and PP plastic resins from end-of-life consumer products for reuse in a multitude of applications. The raw material for the plant is waste electrical and electronic equipment (WEEE); waste made up of electronic equipment, computers, printers, mobile phones and so on - the world s fastest growing waste stream. It s achieved its success by making a raft of operational and commercial improvements, but most importantly, a more effective management of by-products. The plant has proved that a business can be developed around ESR to deliver a solid financial performance and a healthy EBITDA margin. It also has the capability of increasing its financial performance over coming years and delivering a market-leading return. The company optimised the management of the waste stream by challenging the status quo and developing a number of initiatives. When the plant started operations, we paid to dispose of nearly 2/3 of the source material and had no system capable of looking at the value of waste streams. So in 2008 we organised ourselves to be able to look at the value we could achieve in the market by using that waste in other ways - energy generation for example. We then had to look at organising this potential into the most beneficial areas and defined that energy generation and selling waste metals would be the key parts of our strategy. In 2010 we started the metals business by investing Euros ¼ million in a water-table capable of capturing the metal-rich by-products and then selling the copper, gold and silver. We re now recovering around 95% of all the metals that come with the original plastic waste From the by-product recovery the whole business optimised its sourcing by developing an in-depth understanding of material compositions, enabling the sourcing team to maximise value to the business. The in-house testing capability started to allocate value to the plastic composition as well as residual metals, giving us real competitive advantage in the ESR waste market. A year later, in 2011, we started to recognise the value from more of the remaining waste as a fuel. The removal of metals meant a cleaner product could be created for energy generation and this could be further enhanced by adding dryers to the process removing moisture content and increasing incineration potential. A former waste stream has now been turned into a fuel - a product that sells for energy production in the cement industry, tele heating and tele cooling. MBA Polymers - Corporate Social Responsibility Report 22 MBA Polymers - Corporate Social Responsibility Report 23

13 Engineering plastics our latest initiative The latest initiative is to recover engineering plastics a range of higher specification saleable products, which will allow the plant to develop revenues even further. These plastics, such as PCABS, PMMA or PA are higher quality, have wider technical capability and therefore attract premium values. The first step of this development is now being carried out by integrating a latest spectroscopic technology a multi-spectrum imaging device which is able to accurately recover material from a complex plastics waste stream. The first of these machines was installed in the Austrian plant in March 2014 and a completely new separation process was developed to integrate this new technology. The technology is being trialled in the ramping up PCABS business with a saleable product being progressively introduced into the market during PCABS is a blend of polycarbonate ( PC ) and acrylonitrile butadiene styrene ( ABS ) that creates a stronger plastic which is used in automotive interior and exterior parts as well as the bodies of electronics. The sales team is now focusing on seeking new customers for these newly developed products. The recent investment in the engineering plastics business will allow the diversification into other polymers by further increasing the number of OEMs we can target. The strategy has been to find green buyers (coffee machines, vacuum cleaners, etc.) and applications in market sectors with a legislative advantage (the automotive EU recycling quota and Blue Angel ) and to further cooperate with leading virgin resin producers. The water table captures efficiently all secondary metals - copper, silver and gold. The Austrian plant has successfully led the way in MBA to ensure that the by-products streams are considered a valuable resource of potential revenue - moving from a negative cost per tonne to a strong positive contribution and sales benefit. We are now leveraging the by-products recovery experience from Austria across the other MBA sites in the UK and China. We are also looking to continuously develop and launch new products, and we have a roadmap of new products which we aim to be launched in the next three years. The next step for us is to develop the potential of PCABS possibly doubling our current production. Every 1% increase in the usage of our waste benefits our return on investment enormously. MBA is unique in being able to extract the degree of value that we are achieving today from ESR. We have the supply and quantity and we have now developed the understanding. By-product Business Director Arthur Schwesig checks if the secondary fuel is clean of metals MBA Polymers - Corporate Social Responsibility Report 24 MBA Polymers - Corporate Social Responsibility Report 25

14 Even with all these improvements, the Austrian plant disposes of nearly 30,000 tonnes (over 50%) of the material it sources and buys. Of this, approximately 15,000 tonnes is material where cost-effective recovery technology exists and a market is present for the recovered material. Recovery is a highly attractive option as it s essentially a free material sourced specifically for its polymer content. Further work on this waste stream and other initiatives will enable us to maintain a higher level of profitability, improve stability and cash flow generation through the economic cycle.. We re now looking at turning on its head a supply situation which 6 years ago was 1/3 use, 2/3 dispose...to 2/3 use, 1/3 dispose. There s also another factor in this developing story. The global electronics equipment industry is a fast-moving, fast-growing market segment which not only represents nearly 5% of the global manufacturing economy, but most importantly for us has a forecast of over 4% CAGR through to So the market and therefore the availability of our source material will continue to grow substantially in the future. The more we focus on yield the better the return on capital will become so this is not only an excellent commercial story but a powerful environmental story as well. The future - with the production of PCABS is set to double next year. MBA Polymers - Corporate Social Responsibility Report 26 MBA Polymers - Corporate Social Responsibility Report 27

15 Being a good neighbour In the UK... Working with the local community We believe that, to be successful as a company, we must act responsibly and with integrity in all areas of our activities. We are committed to ensuring we have a positive impact on the local community wherever we operate in the world. MBA aims to be a good neighbour not just keeping our own house in order but also reaching out to support, aid and relate to those in our neighbourhood. The local communities in which we operate are important elements of what makes us successful. Not only do they provide the core of the people who work for us, both now and in the future, but they also provide the supporting infrastructure that allows us to operate. We will continue to build positive relationships with our local communities. We will support and encourage our employees to participate in activities that will benefit the local communities in which we work and live. We will operate and maintain our sites so that they provide the least possible disruption to their locality and we will operate under conditions that are safe and environmentally sound. MBA is keen to get involved with the local community and share its knowledge about recycling Local Government and Councils are keen to work in partnership with MBA on future initiatives and we have a close relationship with our local MP, John Mann, who has toured the site and receives regular updates on our developments. Local jobs for local people Although we do not restrict our recruitment search to Worksop, we always endeavour to identify what skills are available to us from the local community. We frequently work with local search engines to tap in to this talent before taking our search wider. For example, recent expansion to the plant has allowed us to create the opportunity for 15 new jobs, all of which have been filled by members of the local community. Post 16 Project In conjunction with the local Outwood Academy, MBA have played host to students from their Post 16 group and have been able to accommodate successful work placements providing those students with a good insight into the career of Polymers, something that we which to continue with going forward. Apprenticeship Schemes MBA see great value in the talent created through apprenticeship schemes and are keen to see apprenticeships as a regular feature at its UK Plant. Apprenticeship schemes are currently being compiled for business administration and maintenance. Further Education Colleges MBA works in partnership with local colleges to provide training and education for its employees. Some students enjoy a day release from work to fulfil vocational qualifications and key skills such as HR, engineering, fabrication and welding, accounting and business administration. Summer Graduate Placement In Summer 2013, we held our first Graduate Recruitment Day, from which three students were offered work placements over the summer period working on innovative projects. We aim to incorporate this as an annual event. MBA Family Fun Day In 2013 MBA also hosted its first ever Family Fun Day. The day was centred around educating friends and family of MBA about the value of waste. Children were challenged to collect plastic bottle tops from their normal waste streams and to trade these bottle tops to MBA in return for fun games and prizes. The collected number of bottle tops were then integrated into the MBA feedstock which in turn was converted into product, avoiding waste to landfill. Sports and Social Ground The section of land adjacent to our operational site, which is used for recreational purposes, was part of the site original purchased from Ardagh Glass by MBA Polymers The Worksop Sports and Social club wished to continue to use the facility and MBA had no use for the field. So we gave the Club continued use and in 2010 granted a 30 year lease on the property on a peppercorn rent. The Sports field is major local facility. In the winter it is used by Worksop Town Juniors (Six boys and three Girl s teams, Worksop Town Soccer School on Saturdays for U5`s upwards and Greendale Oak FC who play in a Sunday League. There is also a significant amount of cricket in the summer and is used by Rockware Glass Cricket Club, Firbeck Cricket Club, Redlands Primary School and North Notts College. It is also a multi school venue for cricket, one of three venues in Bassetlaw to stage various schools cricket matches. The Sports Club are currently looking at upgrading their facilities by replacing their pavilion and have recently started fundraising activities. MBA Polymers - Corporate Social Responsibility Report 28 MBA Polymers - Corporate Social Responsibility Report 29

16 In China... In Austria... We have invested in education and skills training and development for a number of employees such as assistance with an MBA qualification. We have also offered work experience for local students for holiday periods. We also launched donations within the company for employees who had personal difficulties, for example, we arranged a collection for an employee who had suffered loss from an earthquake in his hometown. We have assisted staff with a number of informal social events such as Employee Days. We regularly make small donations to the emergency services who would support any community emergency or one that we might have on site. Additionally we have cooperated with the fire services with onsite training. We undertake site tours regularly for interested groups, industry bodies and representatives from the local province. We regularly make small donations to the emergency services, fire, police and ambulance, who would support any emergency in the community. Additionally, we have cooperated with the fire services with onsite training. We have attended the Engineering and Manufacturing Department at the local Higher Technical School at Waidhofen where we have talked to18/19 year olds about a career in MBA and more broadly about the prospects for recycled plastics. We have a target of attracting two or three employees from this school annually. We have invested in education and skills training and development for a number of employees and have also offered work experience for local students for a period in the summer. We undertake site tours regularly for interested groups such as the IWA Congress, and from time to time we have presented on the subject of Recycled Plastics to the Environment Ministry in particular about future collection systems. We have assisted staff with a number of informal social events. MBA Polymers - Corporate Social Responsibility Report 30 MBA Polymers - Corporate Social Responsibility Report 31

17 We see a clear trend towards the use of recyclates together with virgin materials. Answering the call for materials with increased sustainability and increasing resource efficiency is no longer an aspiration, but a business imperative for the automotive industry. Jost Eric Laumeyer, Borealis Global Marketing Manager Engineering Applications. What our customers expect... and we can deliver Over the past decade, sustainability has become one of the most important drivers of innovation. There s been a major rethink on the supply chain for many major consumer products such as cars and domestic appliances for example. Customers purchasing plastic materials today are now demanding very different things from a few years ago. Manufacturers are looking to be in-step with current best practice - meeting increasing end-user demand for materials and applications with enhanced environmental sustainability. This trend is especially pronounced in European markets, stimulated by European policymakers increasing overall recycling targets. So today, any new manufactured product is being designed to offer improved sustainability, whilst continuing to ensure quality, process performance, and cost efficiency on a par with virgin materials. By buying post-consumer plastics from MBA, customers are helping conserve natural resources, save energy and reduce the carbon footprint of their products. Our recycled end products use less than 20% of the energy needed to produce virgin plastic and importantly we are also ensuring that plastic waste is diverted from landfill and transformed into valuable raw materials. Our customers are... Seeking to assist with a solution to climate change... Demanding a responsible approach to managing the world s raw materials Demanding an end to wasteful landfill Wanting to develop solutions applicable to their own particular needs At the same time they re also demanding the same dependability of supply and quality of product. MBA can help meet all those demands. Using pioneering, state-of-the-art technology, we recycle plastic recovered from complex waste streams, including electronic and electrical waste and end-of-life vehicles, transforming it into plastic resins for use in the highest levels of manufacturing. Together with our joint venture partners in the UK, Austria and China, we respect rigorous quality standards throughout our manufacturing activities, ensuring our products match virgin plastics on performance. We can also modify the characteristics of our products to meet customers individual needs. We use advanced, proprietary technology to separate, clean and recycle waste plastics at our three JV plants, and meet the highest levels of quality control at every stage of our manufacturing. We re also committed to providing clarity to customers on the specifications of our products and their compliance with specific standards and legislation. We provide a certificate of analysis for each batch that reaches a customer, together with safety and technical data and its relevant certificates/declarations relating to REACH, (Registration, Evaluation, Authorisation and restriction of Chemicals). REACH exists to protect people and the environment from the use of chemicals, and ensures companies understand and manage risks associated with their use. MBA Polymers - Corporate Social Responsibility Report 32 MBA Polymers - Corporate Social Responsibility Report 33

18 Assisting customers with their aims Every day we are talking to companies for whom sustainability is important. Our major competitive advantage is that we have locked-in and secure supply sources at a level of hundreds or indeed thousands of tons a year. Very few companies can do that, day in...day out...year in...year out. We can supply consistently and at volume. The market is changing, and as more and more manufacturers wish to behave as responsibly as possible, customers are now coming to us. One customers for example is now operating a system where their plastic paint cans are returned to stores around the country, with their aim being to close the loop for their own products. Through this system, they already collect around 50% of all the cans they manufacture, but currently those products are going towards manufacturing base plastics such as garden furniture for example. MBA can offer the potential of an old paint container...becoming a new paint container! Another customer, a leading provider in the fields of polyolefins and base chemicals has recently announced the launch of a new portfolio of polypropylene compound grades composed of 50% post-consumer recycled plastics for a range of automotive applications. This will help fulfill the need for materials with enhanced sustainability whilst ensuring performance on par with virgin materials. They argue that plastics are simply too valuable a resource to discard after use and they must be recycled into new products. We see a clear trend towards the use of recyclates together with virgin materials. Answering the call for materials with increased sustainability and increasing resource efficiency is no longer an aspiration, but a business imperative for the automotive industry. Jost Eric Laumeyer, Borealis Global Marketing Manager Engineering Applications. MBA Polymers - Corporate Social Responsibility Report 34 MBA Polymers - Corporate Social Responsibility Report 35

19 UK MBA Polymers Sandy Lane, Worksop Nottinghamshire United Kingdom S80 3ET Tel: +44 (0) Fax: +44 (0) Austria MBA Polymers Austria Kunststoffverarbeitung GmbH Wipark, 12. Straße Kematen/Ybbs Austria Tel: +43 (0) Fax: +43 (0) China Guangzhou GISE-MBA New Plastics Technology Co., Ltd 1# Guang Jin Road, Huan Shi Xi Rd, Nansha, Guangzhou, China Tel: Fax: MBA Polymers - Corporate Social Responsibility Report 36 MBA Polymers - Corporate Social Responsibility Report 37