MATERIAL HANDLING FOR A TRIPLE BOTTOM LINE

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1 MATERIAL HANDLING FOR A TRIPLE BOTTOM LINE our strategy of innovation

2 People, Planet, Profit CUTTING OPERATIONAL COSTS AND CARBON EMISSIONS INCREASING PRODUCTIVITY BY PRIORITISING EMPLOYEE WELLBEING Taking quality to a higher level over and over again CLOSER TO THE CUSTOMER BY RECRUITING LOCALLY A call to action

3 People, Planet, Profit Anyone in business knows how competitive global markets are today. Growing a successful business depends on supporting customers to continually improve their own competitiveness, delivering high quality products and services to them as fast as possible. Meeting these challenges is the promise at the heart of our business. Every day, we deliver reliable and costeffective systems and services that will give our customers this crucial competitive edge, ensuring performance and profitability. However, profit is not the single measure of business success. At Vanderlande Industries, we are taking the lead in our industry to set targets beyond the traditional single bottom line, also measuring ecological and social criteria working towards the triple bottom line. We have placed this triple bottom line commitment to People, Planet and Profit at the core of our business strategy. We have done this because we believe these elements can be in perfect harmony with each other and still make perfect business sense. In fact, our approach is already yielding compelling results. How do we achieve this? Through a strategy of continuous innovation. A TRIPLE BOTTOM LINE

4 Innovating energy efficiency: CUTTING operational costs and carbon emissions Optimizing energy efficiency is a must for any business working to maximize its efforts to achieve the triple bottom line. Not only does this lower operational costs, it also reduces the carbon footprint. Supporting energy efficiencies within our customers logistics processes is therefore a top priority at Vanderlande Industries and its supplier base. VANDERLANDE INDUSTRIES WORKED DIRECTLY WITH OUR ENGINEERS TO CREATE AN ENERGY-EFFICIENT SYSTEM THAT HAS LITERALLY HELPED SAVE US HUNDREDS OF THOUSANDS OF DOLLARS IN ENERGY COSTS. Don Ehrenholz, Vice President, Airport Operations and Engineering, Vancouver International Airport A great example is our Energy Scan program, which has realized energy reductions in excess of 50%. This is done by combining smarter mechatronic subsystem designs with energy-efficient motors and belts, and tuning control systems that automatically switch off subsystems under no-load conditions. Similarly, innovations designed for our energy-efficient GREENVEYOR conveyor belt system have achieved energy savings of more than 30%. These technologies are now being incorporated in the development of our other products, so they too can save more energy. At Vanderlande Industries, we pursue the strategy of innovation to ensure that we deliver our promise to save energy and reduce carbon emissions. It s not only good for our planet; it makes good business sense for our customers.

5 Innovating ergonomics technologies: Increasing productivity by prioritising employee wellbeing Employees who are cared for are healthier, happier and more motivated - and consequently have a significantly higher engagement with the business. Alongside education and training programs, this inevitably leads to higher productivity. OUR PICK@EASE WORKSTATIONS ARE DESIGNED WITH A PLATFORM THAT MOVES AUTOMATICALLY TO THE IDEAL HEIGHT FOR EACH OPERATOR. THIS ENSURES THAT OPERATORS STAY COMFORTABLE AND FATIGUE-FREE, WITH a VERY LOW RISK OF PHYSICAL INJURy. In places where people work daily with high-tech tools and heavy duty machinery, the importance of a safe and healthy working environment is paramount. It s a responsibility that Vanderlande Industries takes very seriously. As an industry leader, we ve set ourselves high standards in this regard. A key area of employee health where Vanderlande Industries leads the industry is ergonomics. We have invested significant time, resources and research in designing our products so that they best fit the movements and cognitive abilities of their individual users. For example, our workstations enable operators to maintain high productivity for sustained working periods. They encourage high accuracy and safety by utilizing pick-to-light displays, detection light grids and touch screens. Together this creates a fatigue-free work environment for operators, which significantly reduces the likelihood of RSI. The business benefit of this innovative approach is clear; healthier, happier employees will help a business become more competitive.

6 Innovating material flows: Taking quality to a higher level over and over again Delivering the highest quality solutions without compromise is always the top priority at Vanderlande Industries. This extends right through to the materials we use to create our products. It goes without saying that our innovation strategy is modelled around a concept of the circular economy, known as Cradle to Cradle design. Under the Cradle to Cradle principles, we assess our materials not only by their tangible properties, but also by their effects on humans, the environment and their capacity for being recycled. This approach has already resulted in a great product, the BLUEVEYOR conveyor belt system, which is the first such system in the world. We are also already piloting a reverse logistics program in the Netherlands where outdated products and mechanical system parts are collected and sorted and all components reused and recycled for the manufacturing of new products. OUR BLUEVEYOR IS THE FIRST CONVEYOR BELT SYSTEM IN THE WORLD TO BE DESIGNED ACCORDING TO CRADLE TO CRADLE PRINCIPLES. SILVER CERTIFIED, IT IS COMPLETELY FREE FROM ANY HARMFUL OR TOXIC MATERIALS SUCH AS PVC AND HAS BEEN DESIGNED FOR FULL DISASSEMBLY AT END-OF-LIFE. It is our firm belief that in time our Cradle to Cradle products will outperform all of their predecessors in terms of energy and material usage, durability, noise, price and total cost of ownership. SILVER

7 Innovating our services internationally: CLOSER TO THE CUSTOMER BY RECRUITING LOCALLY As an international company, Vanderlande Industries knows that however cutting edge our global solutions may be, they will only succeed if they work in local settings. The structure of our business is built around this fact. Vanderlande Industries maintains direct contact with our customers through a network of international customer centres, which allows them to do business in their own language and cultural setting. Our on-site service teams are staffed locally which enhances the understanding of local customer needs. This approach allows us to offer a robust, cost-effective, local solution that gives our customers confidence. This comes with all the benefits of our international reputation for innovation, reliability, availability, performance and low cost of ownership. It also directly stimulates local economies further, through job creation, education and other investments. Through playing an active role in local community development, and investing in education as part of our global corporate responsibility program, Vanderlande Industries further extends its commitment to being good corporate citizens, taking care of people and planet as we work towards sustainable profit. Together, Mahogany and Vanderlande Industries have ensured the local operation for OR Tambo International Airport, and Cape Town International Airport has achieved the maximum BEE score in terms of South AfricaN empowerment laws. not only through the local ownership component, but also through broader measures such as the sponsorship of local students with education and the training and developing of staff. Taurai Muranda Managing Director, Mahogany

8 A call to action Our strategy of innovation is focused around a commitment to a triple bottom line. This means caring for people physically as they work, through ergonomically designed equipment that reduces stress and increases productivity. For the planet, it means always working creatively to find altogether new ways of doing things. A growing scarcity of raw materials combined with a raft of strict new laws to protect the environment will demand a new approach to product development and methods of manufacture. As the global economy enters a dynamic new phase, it is clear that many businesses will face great challenges. It is our firm belief that companies who respond to these challenges, rooted in the principles of Cradle to Cradle, will prosper as a result. As we take our business forward in pursuit of this vision, we actively encourage our customers, suppliers and affiliates to join us and work with us in this exploration of new technologies, processes and innovations. What s most exciting is that this approach will result in positive effects on our environment right now, as well as in the future. Your challenge is also ours. The solution is a strategy of innovation. For People, for Planet, and for Profit. A call to action

9 2012 Vanderlande Industries - This information is subject to change without notice. All rights reserved. ElcaMedia CSR Sustainability Consultancy Vanderlande Industries Vanderlandelaan RB Veghel P.O. box AA Veghel The Netherlands Phone: +31 (0) Fax: +31 (0) corporate.responsibility@vanderlande.com

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