_CORPORATE SOCIAL RESPONSIBILITY REPORT 2011

Transcription

1 _CORPORATE SOCIAL RESPONSIBILITY REPORT 2011 Ahrend. Humanising_Spaces

2 _CONTENTS Corporate profile 3 Management Report for the financial year Introduction 8 Ahrend 2020 Cradle to Cradle certified 8 Key figures relating to CSR 10 Vision, Mission and Ambition 10 Ahrend and Corporate Social Responsibility 11 Planet 14 Objectives 14 Closing the loop 14 CO 2 reduction 17 Process improvements and certificates 18 People 20 Objective 20 Working conditions 20 Suppliers/supply chain 21 Profit 22 Objective 22 Strategy 22 Sponsorship and social commitment 22 About this section of the report 23 Definitions 23 GRI Index 23 Group companies 24 Members of the Supervisory Board 25 Members of the Board of Management 25 Reference projects 26 Corporate Social Responsibility report

3 _CORPORATE PROFILE GRI Together with customers, architects, and other 2.1 partners, Koninklijke Ahrend NV furnishes environments in which people are encouraged to perform to the best of their ability. Ahrend ensures that 2.6 people can work and learn professionally, productively and pleasantly in attractive, functional and sustainable working, learning and living environments in which people are key. Ahrend seeks to be sustainable in every meaning of the word. In all its decisions and actions it takes into account the impact on people, planet and profit. It is Ahrend s wish to have closed the product and production loops, to be CO 2 neutral by The product range of Ahrend as a designer and manufacturer of recognisable, timeless Dutch Design furniture includes chairs such as the Ahrend 350, the Ahrend 250 and the legendary Revolt; table systems such as Mehes and Ahrend 500 which are used all over the world; and many other awardwinning chairs, tables and storage systems. For further information please visit our website: The enterprise was founded by Jacobus Ahrend in The articles of association of the present company date from 22 November 1967, and were last amended on 22 August The company has its registered office in Amsterdam; Amsterdam Trade Register AHREND REVOLT Corporate Social Responsibility report

4 _ MANAGEMENT REPORT FOR THE FINANCIAL YEAR 2011 MARKET SITUATION AND EVOLUTION OF SALES GRI The Netherlands 2.7 Profit: While the export-based sectors were able to benefit from a recovery in global trade in 2010, exports from the Netherlands were under pressure in This development was reflected in overall economic activity. In total, the commercial market grew by 1.1% in A slight contraction is foreseen in Despite these difficult market conditions, Ahrend was able to considerably increase its sales in the commercial market, thanks in part to the acquisition of Aspa in the summer of Education and Public Sectors: Sales in the education and public sectors were approximately 12.8% below budget and 9.1% less than in the previous year. Healthcare: Healthcare was one of the few sectors with steady growth. A key driver was the ageing population, which is creating increasing demand for medical help. The sector, therefore, grew by 4.1% in Ahrend s sales in the healthcare sector were also above the level of the previous year. Belgium Despite the poor state of the economy, Ahrend enjoyed a good year on the Belgian market in 2011, with significant growth in sales compared with Orders from the Flemish authorities and the European Commission contributed to this. The order book at the end of 2011 was at the same level as a year earlier. United Kingdom Thanks to their niche positions, Ahrend UK and Techo UK suffered hardly any adverse effects from difficult market conditions. Ahrend UK performed well in the upper-middle and top segments of the market with sales at a level well above that of the previous year. Techo UK also performed above expectations, achieving a clear improvement in results. International International sales were at a similar level to the previous year, although performance differed from country to country. Sales grew strongly in Germany but fell in Spain. The size and composition of the sales teams in these other countries were adjusted in earlier years to allow greater efficiency in operations. The combination of Ahrend and Techo gives Ahrend a unique sales network in Europe and they complement each other excellently in terms of geographical markets and products. Between them, the two businesses offer a complete range, from high-end design furniture for the upper market segments to functional and sustainable furniture for the middle segment; with our international operations and partners providing complete furnishing advice and service in all cases. FINANCIAL PERFORMANCE More information on the Financial developments is avail- able at Dutch organisation KvK. PERSONNEL AND ORGANISATION Central and Eastern Europe Ahrend s Czech subsidiary, Techo, supplies customers in the Czech Republic, Slovakia, Romania, Hungary and other countries, while also focusing on Georgia, Russia and the Ukraine. The home markets of the Czech Republic and Slovakia both showed strong growth compared with 2010 and there were attractive projects in both Hungary and Georgia. GRI Ahrend s workforce fell in The total number of personnel, including temporary staff, at 2.9 LA1 31 December 2011 was 1,209 against 1,262 at LA7 the end of The average age increased from 44.7 years in 2010 to 45.6 years in Sickness absenteeism also increased during the year to 7.3% in 2011 compared with 5.5% in Corporate Social Responsibility report

5 _ MANAGEMENT REPORT FOR THE FINANCIAL YEAR 2011 Completion of the acquisition of the ASPA activities The acquisition of ASPA was concluded in 2011 with the closure of the ASPA factory in Tilburg. Many of ASPA s customers were visited and informed about the continuity of deliveries and the quality of service. A substantial majority of the delivery agreements were subsequently transferred. Organisation It was decided in the spring of 2011 to add two new positions, those of Chief Commercial Officer and Chief Supply Chain Officer, to strengthen the Board of Management. The two positions were filled in 2011 on the appointment of Mr E. Sterken and Mr M. Cornelissen. Mr J. de Bruin stood down as CEO and was succeeded by Mr J. van Meerbeeck, formerly a member of the Supervisory Board. Mr R. Verspuij was appointed to succeed Mr F. Sonnemans as CFO on 1 February In 2011, management completed a strategic study which led to a carefully prepared change process that will be started in the spring of The plan encompasses an overall improvement of organisational structures and processes, product range and market approach in order to achieve a comprehensive improvement in results. Employee participation Co-operation and consultations with the new works councils elected in 2010 were good in Instruction and training/management development LEAN Manufacturing is applied in Ahrend s factories. This programme not only results in more efficient manufacturing and lower costs but also involves an intensive training programme for all those involved. Integrated Health Management Ahrend started Integrated Health Management in A contract with a single centralised Health & Safety Service was concluded on 1 January An integrated health management committee was formed to set up projects and initiatives in this area. Please see the People section in the CSR section of this report (from page 20) for further information on our Human Resources policy. The Loungescape and XXXX_Sofa lounge products, the Ahrend 340 visitor s chair and an updated Ahrend 750 lounge programme were also launched on the soft seating market. The Ahrend Four_Two line in the desk product range was expanded further. Finally, a new workstation electrification and cable management range and a number of new sustainable powder coatings (including the C2C gold paint) were developed In 2011 Ahrend also won eight design awards for its new products from the Chicago Athenaeum and Goed Industrieel Ontwerp. CORPORATE SOCIAL RESPONSIBILITY Planet For years Ahrend has been one of the frontrunners in the environmental field within its industry. Environmental policy plays a central and integral role in corporate policy, with corresponding results. Ahrend is continuing to maintain its environmental priorities as set out in the Corporate Social Responsibility Report. People Ahrend s social policy is not limited to offering good employment conditions and excellent career and development opportunities for its personnel. Ahrend s current Humanising_Spaces pay-off expresses its philosophy and represents its promise to the users of its products and services. Profit Making a profit means being able to continue to invest in sustainable new manufacturing processes, products and services. Please see the Corporate Social Responsibility Report on page 8 for further information on Ahrend s CSR policy. Another positive achievement was that Ahrend emerged as winner for the second year running in the trading companies category of the Transparency Benchmark, the annual survey of transparency in annual reporting carried out for the Ministry of Economic Affairs. PROSPECTS PRODUCT INNOVATION GRI Ahrend maintained its strategy of continuous 2.10 product innovation and improvement during The new Ahrend 2020 office chair announced in the previous year enjoyed a successful start. GRI Prospects are mixed. No general economic recovery is expected in the sectors and regions 1.1 where Ahrend operates in The role of the Dutch government and the spending cuts it is currently making are a significant part of this. On the other hand, confidence and a willingness to invest seem to Corporate Social Responsibility report

6 _ MANAGEMENT REPORT FOR THE FINANCIAL YEAR 2011 be returning to a number of larger international companies. Conditions in Ahrend s second home market, Central and Eastern Europe, are also not expected to improve. A strategy which concentrates on international key accounts has been selected to deal with this. A number of geographical markets which have been entered recently are expected to make a positive contribution to turnover. Ahrend will implement the change project in 2012 to make its processes simple, effective and customer-focused. It will also considerably reduce expense levels. This will eventually lay the foundation for healthy structural profitability and create a basis for Ahrend s future ambitions in its home markets and elsewhere. As part of the change process, Ahrend announced a restructuring in February 2012 and some 175 jobs are expected to disappear during the next two years as part of this. Ahrend will also move further along the path of continuous improvement and innovation in its product range. In this way, Ahrend wants to confirm its leading position as a furnisher. Amsterdam, 10 May 2012 Board of Management Koninklijke Ahrend NV Joost van Meerbeeck Maarten Cornelissen Eugène Sterken Rolf Verspuij AHREND 2020 Corporate Social Responsibility report

7 The Netherlands Institute of Ecology Location Number of workplaces 180 Wageningen, The Netherlands The Netherlands Institute of Ecology (NIOO-KNAW) studies how living organisms interact with each other and their environments in the oceans, on land and in fresh water. It was therefore self-evident that the new office in Wageningen should meet strict requirements with respect to sustainability, environmental friendliness and reuse. The natural choice here was Ahrend s Cradle to Cradle certified office tables and chairs. This is furniture that follows closed-loop cycles from new to new and is produced through processes that spare the environment in every conceivable way. Corporate Social Responsibility report

8 _ CORPORATE SOCIAL RESPONSIBILITY REPORT INTRODUCTION Corporate Social Responsibility (CSR) one of the pillars of Ahrend s business operations. CSR means that Ahrend pays due attention to People, Planet and Profit and the interaction between them. Ahrend has an excellent track record in these areas. We want to continually improve our performance by making use of new insights and technologies and by focussing on clear and, where possible, quantifiable objectives. It is vital for CSR, in all its facets, to be an integral part of our organisation so that it becomes second nature not only for our staff but also for our suppliers and clients. CSR achievements Ahrend is the first Cradle to Cradle Company as furnisher in the world. This meant the following for our operations in 2011: PEOPLE Healthy, productive and pleasant work by making the best use of our own furnishing solutions and Cradle to Cradle (C2C) certified furniture. Specific measures to promote health management. PLANET Achieving and maintaining C2C certificates for four Ahrend product lines (see below for details). PROFIT Measures aimed at improving results. Tightening group strategy. AHREND 2020 CRADLE TO CRADLE CERTIFIED AHREND was dominated by concretization or our Cradle to Cradle (C2C) philiosophy. Our latest office chair, Ahrend 2020, has been C2C certified and we have maintained our certificates for the Ahrend 230 and Ahrend 250 chair and the Ahrend 500 table systems. The only way to obtain C2C certification is if well thought-out, future-oriented structural choices from Cradle to Cradle, taking account of all the stages before, during and after the production process. Safe products and healthy environments and the optimum reuse of high quality materials are crucial requirements for C2C. Ahrend takes concrete steps to ensure the sustainability of Corporate Social Responsibility report

9 _ CORPORATE SOCIAL RESPONSIBILITY REPORT products, processes and services and they have to fulfill stringent, exact criteria to qualify for C2C certificates. Important points for attention include the selection of safe, high-quality recyclable materials, the use of renewable energy and purification of water. Our Next Life services are also highly regarded in the market. We take back chairs, cabinets and tables and give them a new lease of life. With chairs, we do this by carrying out a Re_fit, for example by reupholstering chairs and/or fitting new armrests. Cabinets are given a new coat of paint (after the old paint has been stripped off in an environmentally-friendly manner) and the mechanisms are checked. This dramatically reduces the environmental effects of these Re_fit products, which are also considerably cheaper than, and come with the same warranty as, new products. Our Cradle to Cradle products have a high trade-in value at the end of their life cycle. This unique and above all sustainable quality makes Cradle to Cradle products a good investment in every respect. CSR MEASURES AND OBJECTIVES FOR THE NEXT FEW YEARS PEOPLE To be known as an attractive employer among the relevant target groups To continue promoting health management PLANET To achieve CO 2 -neutral production by 2020 To obtain additional C2C certificates (2011 and beyond) To fully close product life cycle loops (2020) Profit To restore profitability after a difficult economic period In order to achieve these objectives, Ahrend interacts very closely with its stakeholders, including clients, suppliers, architects and designers. OUR CRADLE TO CRADLE-PRODUCTS HAVE A HIGH TRADE-IN VALUE AT THE END OF THEIR LIFE CYCLE. THIS UNIQUE AND ABOVE ALL SUSTAINABLE QUALITY MAKES CRADLE TO CRADLE PRODUCTS A GOOD INVEST- MENT IN EVERY RESPECT. Corporate Social Responsibility report

10 _ CORPORATE SOCIAL RESPONSIBILITY REPORT KEY FIGURES RELATING TO CSR Sickness absenteeism 7.3% 5.5% 5.4% CO 2 emissions (tonnes CO 2 ) 2,662 3,575 2,725 Water consumption (1,000 m 3 ) 16,707 17,022 19,044 Solvents (tonnes) Net sales (millions of euros) GRI VISION, MISSION AND AMBITION Ahrend s Vision HOW DO WE SEE THE WORLD? Give people space and they will blossom and develop. Give them room to interact and new and durable forms of co-operation and co-existence will emerge. Ahrend s Mission WHAT ROLE DO WE WANT TO PLAY? Ahrend shapes sustainable working, learning and living environments that are stimulating to the people who use them. Ahrend creates lasting conditions that enable people to excel, both individually and in interaction with others. This process revolves around stakeholders: Ahrend continually interacts with them to create lasting added value in dynamic environments. Ahrend Ambitie WHAT ROLE DO WE WANT TO PLAY? Ahrend wants to develop into a specialist best in class - in contemporary working, learning and living environments and to become European market leader in furnishing of purposeful environments focusing on the people and communities that use them. As a necessary adjunct, Ahrend aims to be sustainable in every sense of the word. This will enable us to give shape to further growth and to contribute to a sustainable society. AHREND 500 Corporate Social Responsibility report

11 _ CORPORATE SOCIAL RESPONSIBILITY REPORT AHREND AND CORPORATE SOCIAL RESPONSIBILITY Starting points for Corporate Social Responsibility CSR IS AN INTEGRAL PART OF ALL ASPECTS OF OUR BUSINESS OPERATIONS CSR HAS A BEARING ON ALL OUR PRODUCTS AND SERVICES CSR IS IMPORTANT FOR AND AFFECTS ALL STAKEHOLDERS CSR objectives Ahrend wants to become the best company in the professional furnishings industry in Europe in the field of Corporate Social Responsibility and to be known and recognised as such in 2020 by at least 60% of its stakeholders, including purchasers, architects, specifiers and designers. 1. As part of the C2C philosophy and as the world s first C2C Company in the industry, we want to have fully closed product life cycle loops by We want to be an attractive employer and to be known as such among our stakeholders, including our employees and the labour market. 3. By 2020, we want our production processes to be CO 2 - neutral and where possible to produce more energy than we consume. Ahrend s policy is based on the UN Universal Declaration of Human Rights, the Conventions of the ILO (International Labour Organization) and the UN Global Compact. AHREND WANTS TO ENCOURAGE SUSTAINABLE DEVELOPMENT IN THE VALUE CHAIN PARTNERSHIPS HAVE BEEN SET UP THERE ARE MORE TO COME GRI Ahrend gives priority to topics that have the 4.14 biggest impact on the interests of its stakeholders, on the environment and on society. Ahrend gives priority to topics that are closely related to the core processes and services that help us achieve our objectives. To put this into practice, Ahrend invites clients, suppliers, partners, local residents, local authorities and other stakeholders to take part in a dialogue on the CSR topics which significantly impact them. Ahrend wants to encourage sustainable development in the value chain. Partnerships have been set up, and there are more to come. For example, Ahrend works with companies such as Van Gansewinkel to close the loop of product life cycles; it involves its suppliers in the development of products with C2C certification and seeks innovative solutions with them. Ahrend has also developed a joint C2C knowledge platform with Desso, Mosa and Interwand and together Corporate Social Responsibility report

12 _ CORPORATE SOCIAL RESPONSIBILITY REPORT World first with supplier PPG In close co-operation with Ahrend, PPG Industrial Coatings B.V. (the Netherlands) has developed a number of powder coatings according to the Cradle to Cradle philosophy. A number of red substances have been replaced with particles that are not harmful to either humans or the environment. Eric de Bruin, Product manager at PPG: We were pleased to join this venture in view of our very long-standing relationship with Ahrend. We see Cradle to Cradle developments as an excellent opportunity to again be in the lead in coatings, special products and services in the industrial market. With Ahrend, PPG is also proud of the result achieved and the clear growing interest for this type of product in the market. Cradle to Cradle at Park in Hoofddorp We offer various Cradle to Cradle (C2C) suppliers a platform in our Technical Pavilion. We selected Ahrend as a leading C2C manufacturer of office furniture because at Ahrend sustainability goes hand in hand with functionality and creativity, says Wilko Andrik, concept developer at Delta. Park in Hoofddorp is the first full-service C2C working environment in the Netherlands. The building will be completely furnished by Ahrend in with customers it develops specific solutions that protect the environment while saving costs. The sustainability process is a learning process for all those involved at Ahrend and for its stakeholders. Ahrend aims to further develop the awareness and competencies of its staff in the area of sustainability. There are special employee training courses for this purpose, an internal information campaign has been launched, a CSR ambassador network has been set up and Ahrend also continually provides information on the intranet. Ahrend is actively involved in the communities where it has plants and/or showrooms. Ahrend staff takes part in local networks that work for sustainability and social involvement and actively maintain relationships with all relevant stakeholders. In addition, Ahrend is active in a large number of national networks and forums on sustainability and CSR in the Netherlands. Ahrend believes that it can achieve its mission better and more easily if it joins hands with other trendsetting companies and if government also opts for a sustainable policy. This is expressed in many ways, including co-operation with other sustainable trendsetters in the Dutch Cradle to Cradle learning community, membership of MVO Nederland (the Dutch organisation for corporate social responsibility). DELTA PARK 20 20, HOOFDDORP, THE NETHERLANDS Corporate Social Responsibility report

13 _ CORPORATE SOCIAL RESPONSIBILITY REPORT Ahrend is also the co-founder of De Groene Zaak ( the Green Cause ) a lobby group for entrepreneurs which aims to accelerate sustainability initiatives in the Netherlands. ISO 26000, CSR guidance The new worldwide standard for Corporate Social Responsibility is ISO 26000, Guidance on Social Responsibility. Ahrend is an active member of the NEN ISO Standardisation Committee and made a substantial contribution to the realisation of this standard, which was published in November The Dutch version was introduced on 9 December Ahrend started applying these guidelines straight away in early Ahrend s CSR policy was fully restructured in accordance with ISO and, at the same time, all implementation practices set out in ISO were applied to all processes throughout the organisation. ISO was linked to the ISO guidance on the relevance and significance of all environmental aspects. This combines Ahrend s strong environmental performance with the effectiveness of the ISO framework. International implementation expert for ISO 26000, Hans Kröder, is overseeing the ISO process. In 2011 Ahrend contributed to the ISO self-declaration, NPR This is managed by NEN and was developed in co-operation with MVO Nederland by a committee including representatives of VNO-NCW (employers organisation), the Ministry of Economic Affairs, Agriculture and Innovation, FNV Vakcentrale (trade union body) and Ahrend. NPR 9026 is aimed at all types of organisations that use ISO and that want to announce this internally and externally. In December 2011, Ahrend was one of the first ten companies to publish its ISO self-declaration on the official NEN Publishing Platform. There is more about ISO at Ahrend on our website ISO Furnished by Ahrend means different things: PEOPLE Inspirational working environment Greater satisfaction and motivation: - interiors suited for Smart Working - productivity - ergonomics - healthy working environment Attractive employer Employee satisfaction Greater employability Flexibility PLANET Sustainable services and concepts: - Efficient use of space - Next Life C2C / green engineering Lower CO 2 emissions Longer product life cycle Safe materials Recyclable materials PROFIT Lagere Total Cost of Ownership Lower operating costs Efficient use of space Corporate identity gain Lower energy consumption Sustainable clients Ahrend has ambitious CSR objectives but is also keen to help its clients achieve their own sustainability ambitions with its products and services by extending the life cycle of its products, saving space and improving the quality of working, learning and living environments. AHREND HAS AMBITIOUS CSR OBJECTIVES BUT IS ALSO KEEN TO HELP ITS CLIENTS ACHIEVE THEIR OWN SUSTAINABILITY AMBITIONS Corporate Social Responsibility report

14 _ CORPORATE SOCIAL RESPONSIBILITY REPORT Planet OBJECTIVES 1. Ahrend has set itself the objective of fully closing product life cycle loops by 2020, by applying the Cradle to Cradle philosophy. 2. Ahrend has also set itself the objective of achieving CO 2 - neutral production by 2020 and where possible of becoming a producer instead of a consumer of energy. The objective for 2012 is to reduce CO 2 emissions by 75% compared with the reference year 1990 while the objective for 2014 is to achieve a reduction of 85% compared with the same year. We will continue to operate in accordance with certified systems (ISO 9001, ISO 14001, EMAS, FSC [No ] and PEFC [No ]) and to work on permanently improving our processes. Ahrend has published environmental reports for its manufacturing locations since These environmental reports detail the environmental progress that we have made and can be found at planet environmental reports. Closing the loop 1. CRADLE TO CRADLE (C2C) Since 2008, we have been busy setting up our business operations in accordance with the Cradle to Cradle philosophy. This philosophy is based on manufacturing techniques that do not require any waste to landfill or burning of waste. It distinguishes between two cycles for reuse: the biosphere in which materials and products must either be composted, serve as food or be given a new life, and the technosphere in which they must serve as the raw materials for new products. A precondition is for materials to be defined as safe, green energy must be used, water consumption must be limited and water must be decontaminated. According to this principle, Ahrend wants to have fully closed its product life cycle loops by The objective in 2011 was to generate 45% of sales from C2C products. The actual figure in 2011 was 35% because we GRI In March 2011, Ahrend received the Cradle 2.10 to Cradle Company Award in Berlin for its outstanding performance in the sustainability of its operations. Ahrend is the only furnishing company to have won this prize. In the meantime, Ahrend has been awarded four Cradle to Cradle certificates. In order to qualify for these certificates, products have to meet very strict and exact (i.e. objectively measurable) requirements relating to the choice of materials, manufacturing process, assembly/disassembly and reuse. We drew up an inventory of all the materials we use and assessed them in terms of quality and safety for human beings and the environment throughout all the phases of the product life cycle. Based on this analysis, we have asked the whole supply chain (not only first-tier but also second- and third-tier suppliers) to specify their usage of raw materials. Ahrend has sent suppliers information, forms and objectives relating to Cradle to Cradle. The consultancy firm EPEA evaluates the information received with the aim of optimising processes, promoting the use of high quality materials in the supply chain and realising an optimum product chain. have set up a C2C innovation process at the material levels. We use one of our core materials, powder coating paint, for almost every product. As we regard C2C innovations in the supply chain as just as significant as cradling our product lines, we went through an intensive innovation process with our powder coating paint supplier PPG Coatings in This led in March 2012 to a world first in powder coating paint: the first safe and affordable powder paint suitable for C2C gold applications. 2. HAZARDOUS SUBSTANCES As part of its aim to remove all substances that may be hazardous for human beings or the environment entirely from the manufacturing process, Ahrend has drawn up a blacklist. IN MARCH 2011, AHREND RECEIVED THE CRADLE TO CRADLE COMPANY AWARD IN BERLIN Corporate Social Responsibility report

15 _ CORPORATE SOCIAL RESPONSIBILITY REPORT GRI We give this list to our suppliers and require PR1 them to stop using these hazardous substances. EN26 3. EXTENDING PRODUCT LIFE WITH AHREND NEXT LIFE From the point of view of sustainability and customer satisfaction, it is a good idea to extend the life of cabinets, tables and chairs as far as possible. Next Life makes this possible for Ahrend s customers. Next Life was applied successfully in 2011 in the for-profit sector and government organisations in the Netherlands and in other countries. Next Life comprises the following alternatives: Re_fresh: thorough cleaning of chairs, tables and cabinets. Re_fit: reupholstering chairs or fitting them with an entirely new back and/or seat; replacing the armrests, base or other parts; stripping paint and repainting cabinets and replacing cabinet doors. Ahrend put a paint stripping line into operation in 2010 to ensure that this process is environmentally safe. Re_turn: Re_use (one-on-one re-use of product or parts) or Re_cycle (products are picked up and disassembled and the materials are re-used). Ahrend products have a high trade-in value which encourages them to be returned. 4. ECODESIGN Ecodesign means that the design phase gives consideration to the possibility of re-using the product (or parts of it) after it is discarded. The Ahrend 220 office chair was launched on the market back in It was the first product to be designed and produced in accordance with Ecodesign principles. A product life cycle has several phases. in each phase of a product s life cycle less energy and less material can be used, less waste and lower emissions generated and products and materials can be re-used. We see Ecodesign as a logical step in managing and where possible reducing the environmental impact of products. Our processes make as little use as possible of non-renewable raw materials and as much use as possible of recycled materials. 5. ECOBASE 2.0 Ecobase 2.0 is a tool that makes the environmental impact of each individual component of a product visible. It is also a very practical tool for active application in product development and for analysis. This information is available for all Ahrend products. Standard product configurations and Next Life scenarios are available as standard in Ecobase. AHREND WASTE MANAGEMENT Ahrend is very thorough in its waste management. Not only Corporate Social Responsibility report

16 _ CORPORATE SOCIAL RESPONSIBILITY REPORT are waste materials separated by Ahrend staff or employees of waste services provider Van Gansewinkel who are posted to our locations but, together with our waste services provider, we also look at where further improvements can be made. Under the motto of zero waste to landfill, we commissioned Van Gansewinkel to analyse all of our waste flows. As a result of this analysis, none of our waste is dumped and all materials are re-used as material or as a source of energy. We endeavour to optimise the re-use of materials in accordance with the objectives of a C2C company. GRI 7. WATER CONSUMPTION EN8 We use groundwater for our manufacturing processes. We have made significant investments to reduce the amount of water used in our processes (cooling water, water for washing and rinsing). In 2011, 315 m 3 (2%) less groundwater was used compared with Hazardous waste (1,000 kg) 320,0 50,1 42,1 51, Difference compared to 1990: -84% (Increase over 2010 was as a result of project-based disposals) 125,0 8. PACKAGING Products are packaged to protect them during transport. As required by the Packaging, Paper and Cardboard Decree, Ahrend reports the amount of packaging that it imports and that is taken up on the Dutch market each year. The reports are made in the context of our participation in the Foundation for Industrial Packaging in the Netherlands (BVNL). Ahrend takes back packaging material. By minimising and re-using packaging, the use of packaging material can be reduced as much as possible. Ahrend endeavours to reduce the amount of packaging, to use materials that have less impact on the environment and to recycle and re-use packaging. Waterconsumption (1,000 m 3 ) 68,8 17, Difference compared with 1990: -87% 16, WE HAVE MADE SIGNIFICANT INVESTMENTS TO REDUCE THE AMOUNT OF WATER USED IN OUR PROCESSES IRDETO ACCES HOOFDDORP, THE NETHERLANDS Corporate Social Responsibility report

17 _ CORPORATE SOCIAL RESPONSIBILITY REPORT GRI CO 2 -neutral production in 2020 EN5 1. CO 2 -REDUCTION EN16 CO 2 is generated by a number of different processes and at Ahrend the main source is the com- EN29 bustion of natural gas. In recent years, Ahrend has systematically reduced its CO 2 emissions. In 2011, our manufacturing units achieved a reduction of 71% (913 tonnes) compared to the reference year of In addition, in 2011 Ahrend offset tonnes of CO 2 in the form of sustainable projects from the Climate Neutral Group to neutralise emissions from its fleet of vehicles. RIJKSDIENST VOOR CULTUREEL ERFGOED AMERSFOORT, THE NETHERLANDS Ahrend has been actively reducing its energy consumption at source. In relation to CO 2 reduction, we have been using ten heat pumps since 2010 so that energy released in (cooling)processes can be (re-)used in (heating)processes. Some Ahrend furniture manufacturing processes require products to be cooled and at other points they need to be heated; these heat pumps allow us to use energy more efficiently. GRI 2. LONG-TERM AGREEMENT ON ENERGY EF- EN4 FICIENCY FOR OTHER INDUSTRIES (MJA-OI) EN5 The Long-Term Agreement on Energy Efficiency for Other Industries (MJA-OI) is a contract between the government and a number of individual companies such as the Ahrend manufacturing companies to improve their energy efficiency. The primary objective is a drastic reduction of CO 2 emissions. The agreements were signed by participating companies, including the Ahrend manufacturing companies, the Ministry of Economic Affairs and Agentschap NL. The most recent version of these agreements, MJA 3, involves a 2% annual improvement in energy efficiency until 2020, reducing energy used in the supply chain and the use of renewable sources of energy. Greenhouse gases (1,000 ton) 9,38 9,30 3,58 2, Difference compared with 1990: -72% BELASTINGDIENST, ROTTERDAM, THE NETHERLANDS 3. AHREND FACILITY CARE AND CONSULTANCY Ahrend Facility Care and Consultancy provides advice and services for a sustainable interior that has less of an impact on the environment and leads to lower operating costs. These services revolve around the Ahrend Interior Life Cycle. In all stages of this cycle from design and advice, via supply and assembly, to recycling Ahrend supplies services including Workstation Innovation and Consultancy, cable management, internal and external removals, assembly, maintenance and Next Life. 4. CO 2 ST: SUSTAINABLE FURNISHING Many organisations will base the move to Smart Working on financial arguments: savings on office accommodation and mobility expenses. But according to furnisher Ahrend which Corporate Social Responsibility report

18 _ CORPORATE SOCIAL RESPONSIBILITY REPORT has introduced the concept of Sustainable Smart Working considerable savings can also be made in the ecological footprint. Ahrend s online calculation module CO 2 ST allows organisations to calculate how much money and CO 2 they could save if they move to Sustainable Smart Working. Process improvements and certificates 1. MANAGEMENT SYSTEMS Ahrend is making an effort to reduce its impact on people and the environment as much as possible. For this purpose, we make use of certified Quality, Health & Safety and Environment management systems such as ISO and ISO Ahrend wants to limit its influence on possible climate change by improving its energy efficiency, using green electricity and adhering to the Long-Term Agreements (MJAs). In addition, we have already achieved spectacular results in reducing the use of solvents, collecting used packaging material from customers, cutting the number of road transport trips and limiting the use of water. from Ahrend in the knowledge that the material comes from sustainably managed forests and that its origins have been monitored. Since 2011 all Melaform and Melamine sheets have been supplied with PEFC timber. In this way, Ahrend is encouraging the use of sustainable wood. 4. ENVIRONMENTAL REPORTS Ahrend has published environmental reports for both of its Dutch manufacturing facilities since Please visit our website 5. CSR AMBASSADORS In order to put CSR on the agenda in all departments of the organisation, Ahrend has appointed forty CSR ambassadors. In 2011, the CSR ambassadors were given a communication obligation as well as the challenge of promoting Ahrend s CSR policy (in particular Cradle to Cradle, Next Life and the Sustainable New Way of Working) in entirely their own way. 2. EMAS EMAS stands for European Eco Management and Audit Scheme, which is a management tool companies and organisations can use to evaluate, report, improve and validate their environmental performance. EMAS was designed to identify proactive organisations and to reward them if they go beyond the requirements of environmental legislation by continually improving the way in which they deal with the environment. Ahrend was validated for EMAS3 in FSC and PEFC In order to be able to offer products made with sustainable wood, Ahrend is certified in the FSC and PEFC Chain of Custody (CoC). The chief objective of FSC and PEFC CoC certification is to ensure that the FSC and PEFC certified wood material is followed throughout the manufacturing chain. This allows our customers to opt for FSC and PEFC certified products 6. COMPOSITION LABELS ON ALL PRODUCTS Composition labels are available for all Ahrend products. All materials used and their absolute and relative share in the total weight are now well-documented and are clear at a glance to purchasers. 7. NETWORKING AND CO-OPERATION Networking is all about staying in touch with the market and society, whether this means clients, government bodies, employees, suppliers or other stakeholders. Co-operation is putting our heads together with partners to find alternative materials and processes that have less of an impact on the environment. Some examples are our intensive co-operation with Desso, Interwand, Mosa and numerous government bodies on various CSR themes. Together with our C2C partners, we have been organising Cradle to Cradle Cafés since 2009 where we demonstrate to government and businesses what a Cradle to Cradle interior means. AHREND IS EMAS VALIDATED AND USES ONLY SUSTAINABLE WOOD Corporate Social Responsibility report

19 _ CORPORATE SOCIAL RESPONSIBILITY REPORT GRI 8. EMISSIONS TO AIR EN20 Manufacturing companies often emit several types of air emissions such as Volatile Organic Compounds. We have drastically reduced the quantities of air emissions in relation to the reference year of Technical details are available in the Environmental Reports of our manufacturing companies ,9 Design criteria AHREND OFFICE FURNITURE: is sustainable and easy to disassemble can be easily revitalised for a Next Life consists of a limited number of materials contains CFC-free types of foam (using H 2 O/CO 2 as a blowing agent) Solvents (ton) 5,4 6, Difference compared with 1990: -94% (The one-off rise was a result of bringing upholstery orders in house) does not contain any wood from primary forests contains recyclable synthetic materials such as polypropylene, polyethylene and PA6 contains components that can be replaced, including the upholstery DELTA PSYCHIATRISCH CENTRUM ZORGBOULEVARD ROTTERDAM-ZUID, THE NETHERLANDS is spray-painted using low-solvent or solvent-free coatings AHREND DRASTICALLY REDUCED THE QUANTITIES OF AIR EMISSIONS IN RELATION TO THE REFERENCE YEAR OF 2000 Corporate Social Responsibility report

20 _ CORPORATE SOCIAL RESPONSIBILITY REPORT People OBJECTIVE Ahrend wants to be an attractive employer and also to be perceived as such. Being able to do meaningful and productive work is an essential part of human existence. Starting in 2011, Ahrend has formulated and implemented its HR policy based on the new ISO guidance standard, which puts working conditions at the centre of business operations. 1. HUMAN RIGHTS The basis for Ahrend s policy is formed by the UN Universal Declaration of Human Rights, the Conventions of the ILO (International Labour Organization) and the UN Global Compact. For Ahrend, People means above all subscribing to the UN Universal Declaration of Human Rights. Ahrend offers equal rights to all individuals. The term equal rights relates to aspects such as the safety of products and workplaces, the right to privacy, the right to fair remuneration and our self-imposed commitment to act with integrity. 2. WORKING CONDITIONS Ahrend creates sustainable, ergonomic and high quality working environments for its customers and employees. Ahrend offers them the facilities they need to maximise their performance. Ahrend wants to be an attractive and preferred employer for its staff and for potential employees. The Ahrend culture is result-oriented and takes a no-nonsense approach. Initiative and a proactive attitude are encouraged. 3. HEALTH AND SAFETY Measures aimed at creating a safe and healthy working environment and working conditions are developed for each company division. The requirements they must meet are more complex for a manufacturing environment than for a sales organisation. Ahrend conducts a variety of programmes for education, training, advice, prevention and risk management. GRI 4. SICKNESS ABSENCE AND INTEGRATED LA7 HEALTH MANAGEMENT Ahrend feels a responsibility for its personnel. Based on that responsibility Ahrend seeks to do everything in its power to avoid people becoming incapacitated. It is a shared responsibility of employers and employees to ensure that people remain or become healthy. Ahrend therefore deploys activities aimed at promoting mental and physical health. Ahrend uses one Health and Safety organisation and its professional network. 5. INSTRUCTION AND TRAINING Targeted instruction and training programmes are used to improve employability and enhance the motivation of our staff. The training offered by Ahrend is tailored as much as possible to employee talents and fields of interest and the needs of the organisation. It is a responsibility of management and staff to discuss employability and to take targeted action. 6. DIVERSITY To the extent allowed by the general terms of employment, work structures and organisational forms, Ahrend recognises the character of individual employees and groups of employees. We aim to be a reflection of society at large. Ahrend endeavours to avoid all forms of discrimination, inappropriate conduct and intimidation. Ahrend does not have specific programmes to encourage diversity; the company believes that natural processes have allowed it to develop a degree of diversity that is suited to the organisation and to the supply on the labour market. Ahrend is always willing to provide special facilities for specific target groups such as people with a disability or impairment or people in long-term unemployment. GRI 7. CONSULTATION 4.4 Ahrend encourages well-functioning internal representative consultative bodies while taking account of the applicable legislation (in particular the Works Councils Act) and developments in society. Works councils are involved in policy development at an early stage. Alongside these collective forms of consultation, employees can exert influence on the decision-making process within their own working environment in staff meetings. Moreover, each employee is entitled to at least one performance review per year with his or her superior. Meetings are organised to discuss developments that affect the entire company as soon as they take place. Our staff is regularly informed of news within the organisation by means of communication instruments such as our staff magazine and notices on the Atrium (intranet). 8. INTEGRATED HANDLING OF COMPLAINTS Ahrend offers external parties, including customers, the opportunity to report complaints. Complaints are recorded in accordance with NEN/ISO 10002:2004. There are two complaints handling procedures. One (PRO-334) is for product and process complaints; the other (PRO-530) is for complaints and suggestions for improvements that lead to corrective and preventive measures in our Quality, Health & Safety and Environmental Systems (KAM management system). Our manufacturing companies APZ and APS are certified for ISO 9001 and ISO Our KAM management system incorporates a detailed description Corporate Social Responsibility report

21 _ CORPORATE SOCIAL RESPONSIBILITY REPORT of the procedures for complaints handling. Complaints are handled in accordance with the procedure described in Aftercare which is part of the ISO 9001 quality manual. An ISO 9001 audit is conducted by Lloyd s twice a year. 9. SUPPLIERS/SUPPLY CHAIN Ahrend s purchasing policy is aimed at ensuring that the supply chain in which it operates is sustainable. To accomplish this, Ahrend sets high sustainability standards for its suppliers. Ahrend uses questionnaires to monitor the social and ecological efforts of its main suppliers. Because Ahrend has a large number of suppliers, we started with those who supply our raw materials and semi-manufactures, constituting 80% of our purchases. These suppliers are located in the European Union. As soon as Ahrend has a picture of the efforts of its suppliers, together we will draw up an improvement programme. Working with its suppliers, Ahrend wants the products and services in its value chain to be sustainable. Given Ahrend s CSR ambitions, we feel it is important that our suppliers also meet certain minimum social and ecological requirements in addition to economic criteria such as price, quality and delivery time. Key criteria for Ahrend s purchasing policy are the UN Declaration of Human Rights, the ILO Conventions (Fundamental SPECIALE BASISSCHOOL DE WISSEL HOORN, THE NETHERLANDS Corporate Social Responsibility report

22 _ CORPORATE SOCIAL RESPONSIBILITY REPORT principles and rights at work) and the CSR principles in ISO Ahrend thus also supports the principles of the UN Global Compact. Ahrend s environmental objectives for 2020 are key drivers for working with suppliers to close product life cycle loops and ensuring that production is CO 2 -neutral. Ahrend prefers to enter into long-term relationships and collaborate intensively with its product-related suppliers to improve the joint CSR performance level. Ahrend s purchasing department works to continually improve purchasing structures and processes so as to achieve shorter processing times and higher profitability, with the focus on sustainable products, components and services. Purchasing works closely with Design and Production and wherever possible advises on new sustainable alternatives. When Ahrend encourages its suppliers to make sustainable innovations, this not infrequently results in pilot projects involving customers and architectural firms as well. Each year Ahrend organises conferences with its most important suppliers where knowledge in the field of sustainable innovations is shared. Ahrend s business dealings with its suppliers are always on an ethical standard. There is no bribery or corrupt practice. Ahrend is transparent about product specifications and the effects on people, the environment and society. Ahrend wants to use its CSR policy to influence procurement in the Netherlands, to stimulate fellow members of the Dutch Association of Purchasing Management (NEVI) and to inform them of sustainable alternatives. Profit OBJECTIVE Ahrend strives for sustainable growth while observing its social and ecological responsibilities. For a commercial company such as Ahrend, making a profit forms the basis of continuity. Ahrend also aims to be an active participant in the communities in which it operates and to contribute towards numerous valuable social initiatives. STRATEGY The strategy to achieve continuity is founded on a number of cornerstones. For further information on our growth strategy, please see the Management Report (page 4). SPONSORSHIP AND SOCIAL COMMITMENT Ahrend applies the following criteria to sponsorship: Sponsored projects must serve a social purpose and/or must be aimed at reaching at least one of our target groups (business, government, healthcare, education or specifiers such as young architects or designers). Sponsored projects must fit within Ahrend s CSR policy and contribute to a positive image of Ahrend. Ahrend wants its products to contribute to sustainability, architecture, design and/or culture in the workplace. Sponsored projects must preferably have a direct link with Ahrend s activities: encouraging the use of healthy, sustainable furnishing concepts for offices, hospitals and schools. Ahrend supports numerous social projects and initiatives: Ahrend is closely involved as a sponsor in various activities where the proceeds are donated to the KiKa foundation (a childhood cancer charity). The object of the Ahrend Fund (part of the Prince Bernhard Cultuurfonds) is to support exceptional projects in the field of industrial design and architecture and to award scholarships to young visual artists, architects and designers. This fund has assets of 250,000 and the annual income it generates is used to support projects. Ahrend helps young designers to develop their talent, for instance by commissioning them to design products (Design Academy Eindhoven). A wide range of left-over materials are given to certain schools at no cost to give maximum support to their practical teaching. Ahrend plays an active role as a training company and offers facilities for visits to acquaint pupils and students with the industry and with our field of work. GRI Background 1.1 Ahrend has two manufacturing facilities in the 1.2 Netherlands. Ahrend Produktiebedrijf Sint- 2.5 Oedenrode designs and manufactures tables, desks, drawers and cabinets. Ahrend Produktiebedrijf Zwanenburg designs and manufactures desks, conference and visitor s chairs, partitions, tabletops and school furniture. In addition Ahrend has manufacturing facilities in Prague through its subsidiary Techo. Ahrend designs, develops, manufactures and distributes furnishing products and services for the professional market. Ahrend sells directly to businesses and institutions, working regularly with external architects and designers. Ahrend s manufacturing processes include the processing of steel and other materials (such as plastics, foams and upholstery) into chairs, tables, cabinets and other storage systems for use in offices (government bodies, commercial services Corporate Social Responsibility report