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Clariant Sustainability Report 2011

CLArIANt fIgureS
Key FIguReS Sales eBItDA before exceptionals eBItDA margin before exceptionals (%) Net income Basic earnings per share Operating cash flow Investment in property, plant and equipment research & Development costs total assets total equity equity ratio (%) Net financial debt gearing ratio 2 (%) employees
1 2

2011 1
CHF m

2010
CHF m

7 370 975 13.2 251 0.86 206 370 176 9 081 3 026 33.3 1 740 58 22 149

7 120 901 12.7 191 0.81 642 224 135 5 921 1 806 30.5 126 7 16 176

Including Sd-Chemie Net financial debt to equity

SaLeS by buSIneSS unIt


CHF m

SaLeS by RegIon
CHF m

total 2011: 7 370 Industrial & Consumer Specialties 1 473 20 % Masterbatches 1 124 15 % Pigments textile Chemicals Oil & Mining Services Leather Services
1

total 2011: 7 370


europe 3 029 41 % Middle east & Africa North America 642 9%

958 13 %

973 13 % 675 620 265 456 491 9% 8% 4%


Asia/Pacific 1 597 22 % Latin America 1 144 15 %

Performance Chemicals 1 293 18 % functional Materials 2 Catalysis & energy 2


1

6% 7%

Performance Chemicals includes the Business units Additives, Detergents & Intermediates, emulsions, Paper Specialties. 2 May December 2011

Cover photo this photograph was taken by Jo rttger at Clariants Corporate Headquarters in Pratteln, Switzerland. In the background it shows an artwork of the British artist Charlotte Mann.
Clariant Sustainability Report 2011

Clariant Sustainability Report 2011

www.charlottemann.co.uk

Foreword Sustainability Management and Objectives


04 High priority of sustainability in corporate strategy 05 Clariant Sustainability Policy 06 Environmental goals for 2020 07 Opportunities and risks of sustainability strategy 07 Sustainability management at Clariant

Page 02 Page 04

The Clariant Group


10 Business performance 13 Organization 15 Corporate Governance 18 Precise environmental targets for 2020 20 Responsible action, obligations and commitment

Page 10

Clariant and the Environment


22 Materials used 24 Reducing energy consumption with future-oriented programs 26 Energy consumption 27 Water usage 28 Thorough analysis of uncontaminated cooling water 31 Atmospheric emissions 33 Waste 34 Renaturalizing the Catawba River in the US State of North Carolina 36 Biodiversity 37 Investments in environmental protection

Page 22

Human Resources and Occupational Health and Safety


38 39 40 42 44 Employees Compensation Employee policies Upholding corporate values to drive motivation Training and personnel development 45 45 46 49 Occupational safety Active prevention management Most occupational accidents can be prevented Recording of events relevant to process safety in accordance with CEFIC criteria

Page 38

Product Stewardship
50 51 51 52 Product analysis Product evaluation Product information EcoTain a holistic concept ranging from product development to final disposal 54 Marketing 54 Transport and packaging 55 Intelligent testing and ethical working practices innovative approaches to substance analysis 57 Customer protection

Page 50

Clariant and Society


58 Respect for human rights 59 Corporate citizenship 62 Effects on local economies 62 Economic commitment 63 Anti-corruption policy 63 Fines

Page 58

Reporting Framework and Explanatory Notes GRI Content Index

Page 64 Page 67

Clariant sustainability report 2011

DeAr reADers,

Despite the challenging economic environment, we have once again intensified our efforts in 2011 to achieve sustainable management. In our Business Units and regions, we are optimizing a large number of activities to meet sustainability objectives. We do this because Clariant attaches a high priority to sustainable, business actions, in terms of the environment, society, and employees as well as other aspects. Accordingly, in 2011 we achieved further goals to reduce emissions and the concentration of pollutants in the environment. In addition, for the first time we defined concrete goals for the period ending in 2020, objectives we intend to measure ourselves against. Our aim is to reduce energy consumption in the Clariant Group by 30percent and CO2 emissions and waste accumulation by 45percent, each compared with 2005 levels. These efforts represent an important condition for meeting our responsibilities. At the same time, they offer us an opportunity to lay the foundation, both operationally and technologically, for sustainable, profitable and socially acceptable growth. Over the next few years, we will invest more than ever before in innovative products for current and future megatrends. We are convinced that only those companies that manage sustainably and act responsibly will be successful in the long term. We are therefore bringing the Clariant Group systematically in line with the criteria of sustainability and of corporate and social responsibility. Our products and production processes are using resources and energy more and more efficiently and are thus continually reducing our impact on the environment. The innovations that have been and are being developed for our Business Units play a key role in this positive trend. Our customers are the primary beneficiaries of these innovations, and more and more of them are also operating their companies in accordance with sustainable management criteria.

Foreword

Clariant does not limit its focus on sustainability strictly to product safety and environmental protection. Occupational safety, employee satisfaction, and a good balance between societal and corporate interests are aspects that have equal priority. This all represents sustainability to Clariant, and is why Clariant nurtures an ongoing, regular dialogue with interest groups that have a stake in our company our stakeholders. By implementing these measures and policies, we are determined to make a contribution towards meeting the global challenges of our time: an adequate food supply, clean water, environmentally compatible energy generation and economical energy consumption, climate protection, and last but not least quality of life for a growing world population. In the past year, we announced that we will also devote more attention to communicating information about all of these activities and reporting transparently on the subject of sustainability at Clariant. And we have followed through on our promise. The structure of this sustainability report has been optimized and the content expanded. You will find a greater amount of data and facts relating to sustainability management than was included in last years report. Nevertheless we have a long road ahead of us, one which we persist on.

Hariolf Kottmann Chief Executive Officer

Clariant sustainability report 2011

sUsTAINABIlITY mANAGemeNT AND OBjeCTIves

Population growth, improved living standards, and globalization have created opportunities but have also generated challenges. The need for raw materials, for example, is increasing while total available resources are shrinking. This means that the current generation must manage existing resources much more efficiently and responsibly so that future generations may still have comparable opportunities for development. Globalization also puts increasing pressure on peoples willingness and ability to work, and involves considerable individual and social changes. even today many people are highly stressed by the increasingly rapid changes in the world around them with associated psychological and physical consequences. A modern and sustainably successful company is not only in a position to counteract these effects, it is required to do so. We are already very actively involved in this area with appropriate programs. The social responsibility expected of a globally operating chemical company requires that Clariant act to achieve more than just the purely business goals supported by its shareholders. It must also focus on conserving resources, protecting the environment, creating a pleasant and performanceenhancing workplace, and treating people with respect. Clariant is aware of the fact that the path to sustainable management involves considerable effort. The market demand for sustainable products will continue to grow. Clariants aim is to meet current market needs and to exceed expectations, if at all

possible. Clariants purchasing organization will play a key role in this regard by giving greater consideration to sustainability when purchasing supplies and materials.

HigH priority oF sustainability in corporate strategy


Clariant has committed itself 100 percent to the principle of sustainable corporate growth whether in production, shipping and distribution, or in the utilization of products and services. As a leading specialty chemical company, Clariant does not limit itself to compliance with legal requirements. It also participates in a number of voluntary sustainability programs including self-commitments under the Global responsible Care Charter and the Global Product strategy.

sustainability management and objectives

ClaRIaNT SuSTaINabIlITy POlICy Commitment & Clariant Excellence


Clariant is committed to ethical and sustainable operation and development in all business activities in accordance with the principles of the responsible Care Initiative and Clariants own Code of Conduct. Clariant strives for a business culture of continuous improvement as well as for sustainable competitiveness and top performance consistent with Clariants ethical standards. programs. The system complies with IsO 9001, IsO 14001, OHsAs 18001, and responsible Care. Achieving and maintaining a high level of quality across all aspects of our businesses, our esH-related activities, social responsibility and responsible Care is our understanding of Corporate sustainability.

Risk and Emergency Management


Comprehensive assessment of risks related to our operations and products is a prerequisite for our business processes. A local and global emergency organization is in place to ensure comprehensive emergency management and response.

Compliance
Compliance with laws, international standards, internal regulations, and Clariants Code of Conduct are basic requirements for all our activities. Clariant appreciates voluntary initiatives and provides appropriate support to develop effective and efficient safety, health, and environmental regulations.

Innovation and Product Stewardship


We are convinced that it will be essential for our success to continue to understand our customers needs. Innovation and customer focus are the keys to our business. We are constantly developing new and improved products and services to add value to our customers and to our environment. At the same time, we make sure that the safety of our products during their entire life cycle is always ensured for employees, customers, the public, and the environment.

Responsibility
Clariant bears ethical responsibility for sustainable, economical, environmental, and fair business practices. Corporate social responsibility is therefore an integral component of our companys corporate philosophy. All Clariant employees are educated and trained to assume responsibility in line with their function, level of authority and qualifications.

Safety and Environment


One of Clariants most important objectives in its global activities is the safety and the protection of people and the environment. We set protection goals which are valid throughout the entire group, and monitor and evaluate all aspects of our activities.

Clariants Management System


Clariants certified management system adheres to all internal and external standards to which Clariant subscribes, and forms the companys documented structural framework as the basis for our objectives and

Sustainable Operation and Processes


We take measures to reduce environmental, safety, and health risks and strive to avoid waste during production, storage, distribution, and use of our products. This includes the efficient use of energy and resources and the continuous improvement of our processes, in order to minimize the impact of our activities on the environment.
continued on page 6

Clariant sustainability report 2011

continued from page 5

Third-Party Management
Our aim is to establish mutually beneficial relationships with our third-party suppliers and contractors, in order to support our businesses on the basis of our internal esHQ standards, which include Corporate social responsibility and responsible Care. We encourage our suppliers and service providers to adopt standards comparable to Clariants policies.

Communication
Clariant fosters a culture of proactive and transparent communication as the key to relationships based on trust. All stakeholders are regularly informed about our activities, our objectives, and our esHQ performance. We systematically identify the concerns and expectations of our stakeholders.

Monitoring and Review


We monitor and review all business aspects and processes including responsible Care issues at regular intervals. Keeping a close watch on our quality and performance is an integral part of our business processes and strategic planning and is one of our top priorities.

Clariant is very committed to environmental protection and safety in all areas of activity. Its own environmental, safety and health (esH) regulations are based on the charters objectives. In addition, Clariant plants throughout the world have been certified under IsO9001, IsO14001, and OHsAs 18001. each production facility must comply strictly with the Clariant Groups esH guidelines for environmentally compatible and safe business operations. In addition, Clariant has a global system for incident reporting and emergency management. Treating customers, employees, and other fellow human beings and the environment responsibly strengthens partnerships with the groups on which success ultimately depends in the current market environment

as well as in the future. selecting, training, and qualifying suitable employees is a top priority from the standpoint of continuous improvement. With its specific employee development programs, Clariant provides its employees with the skills and resources they need in order to work more efficiently and innovatively.

more effective, or increasing communication with stakeholders. some goals, however, are quantitative by nature, such as continuously reducing specific water and energy consumption, waste and noxious emissions. Clariant has set new targets for these crucial, clearly definable and measurable indicators, and Group management will measure itself according to whether these targets are reached. In setting environmental goals for 2020 based on reference values for 2005 Clariant has defined binding long-term company targets for the first time. The potential reductions that the company is aiming to achieve by 2020 represent obligatory benchmarks for all activities within the Clariant Group and will give the company a greater focus on sustainable management than

environmental goals For 2020


Clariant takes responsibility for the environment, employees, customers, and society with the clearly stated intention of achieving our sustainability objectives. some of these goals are qualitative in nature, such as increasing plant safety and improving products through ongoing research, making programs for employee development even

sustainability management and objectives

ever before. This signal is intended to have more than just an internal effect. It is also a commitment to the public that Clariant will be even more dependable, reliable, and deserving of trust than in the past. If our strong efforts should make it possible to achieve and sustain these targets earlier than 2020, the company will not hesitate to reformulate its goals. The targets are relative quantities in order to avoid distortion based on production fluctuations. The values are therefore always defined in relation to the volume of goods produced (see also page 18). Clariants environmental goals for 2020: energy consumption to be cut by 30percent Direct CO2 emissions to be reduced by 45percent Direct and indirect emissions of greenhouse gases to decrease by 35percent Water usage to be reduced by 25percent The volume of effluents to drop by 40percent The volume of waste to fall by 45percent

strategy is desirable and reasonable from both a societal and economic perspective, but in order for it to be affordable in the long run, a companys sustainability efforts must result in lower current expenses (such as for energy) and additional sales (due to greater demand for sustainable products, for example). Clariants business opportunities lie in the development of innovative products that require fewer and fewer raw materials, but a greater proportion of renewable resources that can be produced with less and less risk while generating smaller and smaller volumes of waste. Their potential impact on people and the environment as they are used must also be continually reduced. Clariants business risks primarily involve the possibility that the market will not reward the company for its level of care and effort, and will turn to lower-priced products. Clariant can counter this potential response by convincing customers that its products and production methods are desirable because they help protect the environment and safeguard our economic future. A good example of the relationship between effort and opportunity is the uniform and binding regulation for the registration, evaluation, authorization, and restriction of chemicals (reACH) that now applies throughout the european Union. This regulation harmonizes and simplifies the chemical laws of individual member states (see also page 51). Only chemical substances that have been previously registered and analyzed for potential risks may be marketed within the territory covered by the eU regulation.

reACH therefore involves substantial additional cost and labor for the registration and evaluation activities. On the other hand, reACH also represents opportunities for companies to differentiate themselves from other suppliers. reACH plays a key role in enhancing protection of human health, the environment and consumers. By complying with this legislation, Clariant offers greater benefits to its customers through a higher level of communication and detailed customer-oriented information on the use of its products. The overall effect of reACH will be to strengthen customer and supplier loyalty which also fosters sustainable corporate growth. The regulation is also a catalyst for the development of new and better products. Clariant will take advantage of this opportunity.

sustainability management at clariant


Clariant has developed an efficient management system for successful implementation of its sustainability strategy. It is an integral part of the Group-wide process planning and corporate planning system. It involves an ongoing compliance review to verify that actual business development complies with regulations. All employees are responsible for proper operation of this system in line with their particular function, position, and qualifications. At the same time, Clariant

opportunities and risks oF sustainability strategy


sustainability costs money and resources. more complicated production processes, more expensive raw materials, cleaner and more efficient plants, and programs for employees and other interest groups require investments, some of them substantial, and frequently trigger ongoing expenses. This

Clariant sustainability report 2011

A focus on sustainable management is firmly anchored in Clariants business strategy.


CHRISTIAN KOHlPAINTNER, MEMBER OF THE ExECUTIvE COMMITTEE

has established appropriate incentives that are linked to this system. Bonuses for employees, for example, are also partly tied to specific targets in the area of sustainability. Guidelines for ensuring product and production safety are an essential component of the management system. The goal is to limit the impact of business on the environment, health, and safety to the greatest extent possible. Protection of people and the environment is a top priority in all our activities. This is reflected in an extensive body of regulations and programs within the management system and in a Group-wide risk measurement system. regular training sessions for employees are held. Processes, procedures and measures are also continuously monitored through internal and external audits. All of Clariants plants around the world are scrutinized for potential risks and optimization opportunities. The results of these studies are included in the Group-wide risk control system, analyzed for urgency and relevance and then implemented accordingly. Clariant can also respond to incidents immediately and highly effectively through its efficient emergency management system, which includes a comprehensive catalog of actions to be taken. In addition, esH criteria play an important role in Clariants business relationships. suppliers, outsourcing partner and service providers undergo spot checks for compliance with these standards. The careful selection process that is part of procurement management is based not only on economic criteria, but also on purchasing and produc-

tion processes, as well as delivery routes and systems in relation to sustainability objectives. Clariant works with customers to improve the entire process chain. Clariants corporate risk management system determines levels of risk and encourages entrepreneurial thinking within the Group. In the course of this process, all opportunities and risks are evaluated with regard to the short- and medium-term objectives defined by the Board of Directors. risk management examines these analyses for relevance, consistency and accuracy in order to then decide on potential optimization measures. risk assessment is carried out annually and supplemented by quarterly updates and interim reporting, as necessary. The system also guarantees that all significant risks are reported to the executive Committee and the Board of Directors. Another function of risk management is to inform, educate and motivate employees. If necessary, the Clariant risk management system makes it possible to specify counter measures and assign responsibilities quickly. The corresponding regulations are based on the standard of the Institute of risk management and benchmarked to the enterprise risk management Integrated Framework of the Committee of sponsoring Organizations of the Treadway Commission (COsO). The results of risk assessments are consolidated, and the risks are then evaluated by the executive Committee and the Board of Directors. http://www.coso.org

Comprehensive risk management for achieving sustainability objectives Dealing with risks is very important at Clariant. Comprehensive risk identification and assessment is therefore the prerequisite for all of Clariants sustainability activities. When assessing the risks that may arise during development, manufacture, storage, and transport of products, human health and environmental protection have absolute priority. risk mitigation and prevention is carried out using specialized management approaches tailored to the particular area. measures are carefully assessed in order to achieve the best possible cost-benefit ratio. These measures are implemented by all employees, according to their function, level of authority, specialized knowledge, and education and training. A positive attitude toward sustainability is encouraged through open dialogue. Continuous improvement is achieved by using the best available technology that is economically justifiable. This applies particularly to the development of new and optimized products, processes and services. Clariant has an emergency management system that works together with the appropriate authorities to control and limit the impact of unusual incidents or events. employees, the authorities, customers, shareholders and the general public are regularly informed about Clariants sustainability performance. Compliance with the principles and guidelines on sustainable and responsible action is reviewed using a recurring audit program that also includes specific steps to be taken and the successful results of those measures.

sustainability management and objectives

Clariant has also established stringent targets in the area of procurement, in an effort to achieve sustainable management. Clariants sustainability standards are apparent in its purchasing strategies, procurement policies, and general guidelines:

strict energy management, with continuous development and optimization. Increase in the proportion of renewable raw materials. Active waste management at all Clariant production sites; i.e., the choice of a waste management company is also a waste management approach via its procurement. joint development of innovative projects in collaboration with selected suppliers. Clariants suppliers are an important part of the worldwide Clariant network. They are therefore expected to apply the same standards in the areas of human rights, working conditions, environmental protection, and corruption prevention as Clariant itself. Clariant also expects that its suppliers will show initiative in striving to achieve sustainability. This means cooperating actively to reduce the environmental footprint by optimizing the procurement chain appropriately. For Clariant, respect for these values is a pre-condition for continuation of business relationships.

Plants are audited at regular intervals.

By establishing a series of regulations and programs, Clariants objective is to permanently strengthen safety, assuming responsibility for people and the environment, and business success. Clariant defines its own comprehensive safety standards and guidelines relating to product safety, manufacturing safety and process safety; these extend beyond the scope of national regulations. A large proportion of these guidelines relates solely to plant safety. The system ensures a high level of safety in procurement, processing, and storage operations as well as in the distribution of raw materials and products. The management system is designed to identify and record risks on an ongoing basis. It is used to control potential risks in the entire production process from suppliers to receiving to manufacturing to shipping

and waste disposal. All identified and assessed risks are documented in a risk portfolio, in order to be able to determine and control potential risk. This forms the basis for determining improvement measures and the corresponding investment requirements. risk assessment is carried out annually and supplemented by quarterly updates and interim reporting, as necessary. Plants are audited at regular intervals, depending on the potential risks and local changes. Units involving chemical processes are audited at least every three years. All of Clariants facilities buildings, warehouses, production plants and energy supply systems are audited to verify guideline implementation, compliance, and effectiveness. The composition of the audit teams may vary. Depending on the type of audit, auditors may be internal esH and production experts, independent external auditors, or insurance company specialists.

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Clariant sustainability report 2011

THe ClArIANT GrOUP

Clariant is a global leader in the field of specialty chemicals. In the fiscal year 2011, Clariants business structure consisted of 12 Business Units: Additives; Catalysis & Energy; Emulsions, Detergents & Intermediates; Functional Materials; Industrial & Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; and Textile Chemicals. Including Sd-Chemie AG, which was acquired in 2011, the Swiss-based Clariant Group consists of more than 200 operational companies worldwide with a total of around 22 100 employees. Group sales in 2011 came to more than CHF7.3billion.

0.30 for the year under review; net financial expense was CHF 125 million. The company made donations in cash to those in need and in kind to charitable campaigns in the low single-digit million range. more information can be found in the Clariant 2011 Annual report on page 100. raw material costs, which increased significantly in 2011, were largely passed on to customers through price increases. Clariant also put into practice its plan to strengthen both the portfolio and future potential through external growth. In 2011 the Clariant Group acquired sd-Chemie AG, a global and highly innovative specialty chemical company based in munich, Germany. The operating fundamentals of the sd-Chemie transaction underscore how advantageous the acquisition is for Clariant. Group sales will increase by about 20percent. sd-Chemie will be consolidated for the first time on the basis of a full fiscal year in 2012.

business perFormance
The positive business trend at Clariant in 2010 continued in fiscal year 2011. Clariant was able to benefit from its restructuring efforts in recent years. Although progress in the areas of profitability, internal and external growth was slowed by a subdued macro-economic environment, Clariant made headway on its strategic path to sustainable and profitable growth. This is confirmed by the numbers reported at the end of 2011. Despite clearly more negative currency effects and a noticeable economic slowdown in the second half of 2011, full-year Group

sales of CHF 7.37 billion represented a 3.5percent increase over 2010, and eBITDA (earnings before interest, depreciation, and amortization) before exceptional items totaled CHF975million, an improvement of as much as 8.2percent. Given this excellent overall picture, Clariant was able to report positive results on almost all levels and in most business areas following the tough restructuring process carried out in 2009 and 2010. The savings obtained through the Clariant excellence initiative, for example, have totaled CHF 163 million since 2009. Clariant expects to pay a dividend of CHF

tHe clariant group

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KEy ECOnOMIC InDICATOrS


CHF m

2007 8 533 812 628 1 960 211 71 509 0.25 7 285 2 372 32.6 20 931

2008 8 071 783 691 1 759 184 138 356 0.25 5 946 1 987 33.4 20 102

2009 6 614 495 263 1 757 150 101 1 140 0 6 092 1 896 31.1 17 536

2010 7 120 901 646 1 646 135 123 716 0 5 921 1 806 30.5 16 176

2011 1 7 370 975 786 1 623 176 173 1 199 0.30 3 9 081 3 026 33.3 22 149

Group sales eBITDA before exceptionals eBITDA Personnel expenses r&D investments Financial result liquid funds Dividends per share (in CHF) Total assets equity 2 equity ratio (%) employees
including sd-Chemie 2 including minority interests 3 Payment as reduction in par value. subject to approval at the Annual General meeting.
1

In addition, Clariant is expecting integration to result in an additional increase in eBITDA of CHF 90, to 115 million, by 2013, as the result of integration-based synergies and Clariant excellence initiatives. With this acquisition, Clariant now offers a very wide range of specialty chemical products. The company has more than 10 000 products and, based on client request, has highly individualized lines in the portfolio, that have unique specifications. The number of products thus varies, depending on precise client demand. Profitable growth and sustainability: the watchwords of our business Despite restructuring efforts and the challenging economic environment, the goal of sustainability is an integral part of Clariants corporate strategy. sustainability-oriented management substantially enhances pro-

ductivity and international competitiveness. At the same, time sustainable management limits the impact on people, the environment and resources. The value that it generates also benefits Clariants shareholders and satisfies the needs and demands of capital markets. Climate change has not had a measurable effect on Clariants activities to date. However, the company is strengthening its efforts to reduce its impact on climate-determining factors as much as possible. The business opportunities for Clariant lie in the development of innovative products that require fewer and fewer materials as well as a greater proportion of renewable materials produced by processes that consume less and less energy. After all, the issue of climate change, which has been a focus of public discussion in recent years, has led to greater environmental awareness and an increase in the demand for sustain-

able products, even in the area of specialty chemicals. As long as the market is willing to pay a higher price for these products, which is often the case, Clariant sees definite growth potential in this area in the coming years. During the difficult years of restructuring in the Clariant Group, all efforts and resources were focused on restoring the companys productivity and economic competitiveness, and putting it on a foundation that would remain stable for many years to come. The long-term security of current jobs was a top priority, from both an economic and a social perspective. That is also an aspect of sustainability.

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Clariant sustainability report 2011

EMPLOyEE BEnEFITS AT CLArIAnT


CHF m

2005 507

2006 495

2007 515

2008 478

2009 484

2010 443

2011 538

Pension provisions (employee retirement plan obligations)

SALES By rEGIOn
CHF m

2005 4 191 1 120 1 052 1 365

2006 4 333 1 143 1 149 1 475

2007 4 616 1 102 1 262 1 553

2008 4 313 994 1 261 1 503

2009 3 334 792 1 138 1 350

2010 3 529 860 1 199 1 532

2011 3 671 958 1 144 1 597

emeA (europe, middle east, Africa) North America latin America Asia/Pacific

In 2012 and 2013, Clariant will carefully analyze its employee pension plan and other benefits and will optimize them, as necessary. Clariant has always considered the following to be very important: A state-of-the-art occupational pension system. Benefits beyond those required by law, such as extended time-off for raising children, subsequent to statutory parental leave, or for caring for family members who are ill or disabled. Further details about this can be found in the Clariant Annual report 2011, on pages 103 to 122. Global positioning sustainable management also includes the issue of subsidies. Clariant did not receive any significant public funding in 2011. sustainability also means contributing in a positive way to the development of the local economy through the companys own business activities at each location. As a producer of specialty chemicals, Clariant must purchase its raw materials wherever they are available in the quality and purity it requires, and wherever the purchase prices ensure Clariants competitiveness.

However, all other products that need not meet such requirements are largely purchased locally, where Clariants plants are located. Clariants activities as an employer, as a customer for local products and services, and as a payer of taxes and fees support local economic development in the respective regions and countries, which is particularly important in regions with emerging economies. Clariant thus helps raise the living standards of the population in each area, both directly and indirectly, by creating added value. Clariant is not aware of any significant negative effects resulting from such activities. The same is true of undesirable effects of local production regional or supraregional. No negative effects of this type were identified in 2011 or in previous years.

The ongoing process of globalization is forcing companies with international operations to adapt their organizations and strategies more and more quickly to changing conditions. In recent years, Clariant has thus systematically adapted its production footprint to the changing global economic parameters. The company has a presence on all continents, with 152 locations in 42 countries. The focus for the future which is also reflected in the Clariant Groups growth strategy is on expanding market share in high-growth emerging countries in Asia and latin America. Clariant as a producer of specialty chemicals delivers exclusively to companies in the manufacturing sector that also process these chemicals. Companies outside the manufacturing sector are only supplied in rare individual cases, but no private clients. The Clariant Group has seen a definite shift in regional sales percentages in recent years. As a result of dynamic economic growth in emerging markets, sales have increased significantly in these regions when measured against Group sales. This

tHe clariant group

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increase in sales percentages was especially pronounced in latin America and Asia/ Pacific. Whereas latin America generated only 13.0 percent and Asia/Pacific only 17.1 percent of sales in 2005, these figures had risen to 15.5 and 21.7 percent, respectively, by 2011. Notably, China now accounts for a much higher percentage of Clariant Group sales. six years ago Chinas share was still comparatively small at 3.4 percent, but by 2011 it had risen to as much as 6.0percent. sales from the traditional industrial nations of North America and europe declined accordingly. Whereas these nations accounted for a total of 63.4 percent in 2005, their share had contracted to 54.1 percent by 2011.

The Catalysis & Energy Business Unit is a leading supplier of catalysts for the chemical, petrochemical, polymer, refinery and automotive industries. Detergents & Intermediates is one of the most important producers of key raw materials for detergents and household cleaners as well as chemical intermediates. The Emulsions Business Unit is one of the most important suppliers of latex/polymer dispersions for paints, coatings, adhesives, sealants, and for the textile, leather, and paper industries. The Functional Materials Business Unit is a leading manufacturer of specialty products and solutions for improving product and efficiency characteristics in various industries. The Industrial & Consumer Specialties Business Unit is one of the most important suppliers of specialty chemicals and application solutions for the consumer care sector and for industrial markets. The Leather Services Business Unit is one of the leading suppliers in the market for chemicals and services of the leather processing industry. The Masterbatches Business Unit is among the global leaders in the manufacture of dye and additive concentrates and specialty compounds for the plastics industry.

The Oil & Mining Services Business Unit is a leading provider of products and services for the petroleum, refinery, and mining industries. Paper Specialties is among the largest providers of products for optical brightness, color, coating and thickness of paper. The Pigments Business Unit is is among the leading global suppliers of organic pigments, pigment preparations and dyes used for coatings, printing inks, plastics, and other special applications. The Textile Chemicals Business Unit supplies specialty chemicals for the pretreatment, dyeing, printing and finishing of textiles. In 2011, Clariant acquired sd-Chemie AG, which enabled it to own two attractive high-margin businesses. In 2011, the newly acquired Business Units of Functional materials and Catalysis & energy generated an eBITDA return of almost 13 and 22percent, respectively. sd-Chemie also has outstanding expertise in technologies of the future and innovation. Overall, Clariant increased Group sales and performance by about 20percent as a result of the acquisition. Clariant expects an additional CHF90 to 115million increase in eBITDA as a result of integration-related synergies and Clariant excellence initiatives by 2013.

organization
Clariant is an important international supplier of specialty chemicals. In some areas, it is the market leader, and in other areas it competes with companies that have similar market shares. There is some outsourcing of business activities takes part to same extend. The outsourcing specialists have to accept the same strict rules that are mandatory for suppliers and service providers. The Clariant Group is organized in the following Business Units: The Additives Business Unit is a leading provider of flame retardants, waxes, and polymer additives for effects in plastics, coatings, and other applications.

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Clariant sustainability report 2011

Organizational Structure
Executive Committee Corporate Center

Business Units

Business Services

Group Technology Services Group IT Services Group Technology Services

Service Centers

Additives

Leather Services

Group Finance Services

Europe

Catalysis & Energy

Masterbatches

Group Hr Services

Group Logistic Services

Middle East & Africa

Detergents & Intermediates

Oil & Mining Services

Group Communications Services

Group Procurement Services

Japan

Emulsions

Paper Specialties

Group Legal Services

Group Product Stewardship

Greater China

Functional Materials

Pigments

Latin America

South East Asia

Industrial & Consumer Specialties

Textile Chemicals

north America

India

The organizational structure shown here in addition to Business Units, Business services, Group Technology services and service Centers for the Corporate Center also includes functions such as

Controlling, Accounting, Treasury, Tax, Hr, legal, Business Development, Group Communications & Investor relations as well as esHA (environment, safety, Health Affairs).

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CLArIAnT wOrLDwIDE

Countries where Clariant is represented For an overview of countries in which the company is active with (primary) operating facilities, see the Annual report, pages 154-157.

corporate governance
Clariants corporate governance principles define the management structure, organization, and processes of the Clariant Group that provide transparency as well as ensure sustainable long-term success. The Group is committed to swiss and international standards of corporate governance and follows the rules set out in the swiss Code of Best Practices for Corporate Governance and in

the sIX swiss exchange corporate governance directive. Clariant conducts its business in compliance with the applicable laws and rules of free competition and rejects corruption in any form. Clariant avoids conflicts of interest and ensures that corporate assets will not be used improperly. Clariant strives for sustainability in all areas and at every process level. The Articles of Association, Bylaws of the Board of Directors and Clariant Code of Conduct can be viewed online at www.governance.clariant.com.

Ownership structure The business activities of Clariant AG are conducted by the companies in the Clariant Group. ClariantAG, a holding company established under swiss law, owns all Clariant Group companies worldwide, either directly or indirectly. except as noted below, the shares of these companies are not publicly traded.

16

Clariant sustainability report 2011

Clariant AG holds a 63.4 percent interest in Clariant Chemicals (India) ltd, based in Thane, India, and a 75 percent stake in Clariant (Pakistan) ltd, based in Karachi, Pakistan. In addition, ClariantAG how holds 100percent of sd-Chemie AG, a company based in munich, Germany, which was acquired on 21 April 2011. Clariant became sole owner upon registration on 30 November 2011 of the squeeze-out resolution passed by the extraordinary general meeting of sd-Chemie AG on 22November2011. An overview of the most important companies in the Clariant Group is in the Clariant 2011 Annual report, on pages 154 to 157. As of 31 December 2011, the former shareholders of sd-Chemie AG who had exchanged their shares in April 2011 for Clariant shares and are related through family or other ties (specifically the Wamsler, Winterstein, schweighart and stockhausen families) together owned 15.127percent of Clariants share capital. In addition, the following shareholders held a participation of 3percent or more of the total share capital: Fidelity management & research, Boston (UsA), 5.23 percent (2010: 5.23 percent); Teachers Insurance and Annuity Association of America College retirement equity Fund (TIAA-CreF), New York (UsA), 3.097percent

(2010: < 3percent); Cs Asset management Funds AG, Zurich (switzerland), 3.0184percent (2010: 3.04 percent). No other shareholder was registered as holding 3 percent or more of the total share capital. These transactions, which were reported to the stock exchange Disclosure Office pursuant to Art.20 of the stock exchange Act, can be viewed on the sIX swiss exchange reporting platform: http://www.six-exchangeregulation.com/obligations/disclosure/major_shareholders_de.html. As of 31 December 2011, the nominal share capital of Clariant AG was CHF 1 183 009 016, fully paid and divided into 295 752 254 registered shares, each with a nominal value of CHF 4.00. ClariantAG shares have been listed on the sIX swiss exchange since 1995 (symbol: ClN, IsINNo.: CH0012142631). Clariant AG does not issue non-voting equity securities (Genussscheine). The companys share capital may be increased by a maximum of CHF159 995 324 by issue of a corresponding maximum of 39 998 831 registered shares with a nominal value of CHF 4.00 each. These must be paid for in cash through the exercise of conversion or warrant rights granted to their holders in connection with bonds issued by the company or one of its subsidiaries. The details are set out in Article 5b of the Articles of Association. The Articles of Asso-

ciation are available on the Clariant website at www.governance.clariant.com. Of these 39 998 831 shares, 35 086 549 are allocated to a CHF300million senior unsecured convertible bond issued on 2 july 2009. A total of 1169 shares were issued in 2011 by single exercises of the conversion right. The convertible bond will mature on 7july2014, and the conversion price is CHF8.55. Management structure The Board of Directors of Clariant AG is the highest management body and consists of a minimum of six and a maximum of twelve members, each of whom serves for a threeyear term. re-election is possible. The Board of Directors consists of the Chairman, one or more vice Chairmen, and the other members. No non-executive member of the Board of Directors held a senior management position at ClariantAG or any Clariant Group company between 2008 and 2011 or has any significant business relationships with Clariant AG or any other Clariant Group company. The Board of Directors forms the following committees from among its members: Chairmans Committee Compensation Committee Audit Committee Technology and Innovation Committee

tHe clariant group

17

The Board of Directors appoints the Chairman, vice Chairman or Chairmen, and members of the committees. The Board of Directors meets at least once a quarter. The CeO, CFO, and other members of the executive Committee and/or other employees and third parties regularly attend the meetings of the Board of Directors at the invitation of the Chairman for the purpose of reporting or imparting information. each committee has a written charter outlining its duties and responsibilities. The committees charters are published on Clariants website (www. clariant.com/committees). The committees report on their activities and results to the Board of Directors. They prepare the business of the Board of Directors in their respective areas. The Chairmans Committee (CC) comprises the Chairman, the vice Chairman, and a third member of the Board of Directors. The Committee prepares the meetings of the Board of Directors and meets as needed. It makes decisions on financial and other matters delegated to it by the Board of Directors in accordance with the Bylaws of the Board of Directors. It also makes decisions on matters that would normally be handled by the Board of Directors but cannot be postponed. The CC draws up principles for the selection of candidates for election and re-election to

the Board of Directors and for the office of CeO, and prepares the corresponding recommendations. The CC also considers and submits to the Board of Directors the CeOs proposals concerning candidates for executive Committee positions. The Board of Directors has delegated the executive management of the Clariant Group to the CeO and the other members of the executive Committee. The executive Committee is mainly responsible for implementing and monitoring Group strategy, for the financial and operational management of the Group, and for the efficiency of the Groups structure and organization. The members of the executive Committee are appointed by the Board of Directors on the recommendation of the Chairmans Committee. The executive Committee consists of the CeO, the CFO, and three additional members. The executive Committee meets regularly at the Corporate Center in Pratteln or at other Clariant sites worldwide. It uses such meetings away from headquarters as an opportunity to discuss business performance with local company management in person. Only one member of the executive Committee, the CeO, is a member of the Board of Directors. The members of the executive Committee do not have other jobs, advisory functions or hold other offices. There are no management contracts with third parties. The members of the executive Committee are all male and are profiled in the Annual report of ClariantAG.

Management training and qualification The management of the Clariant Group, local plant management, and ultimately every individual employee is part of a continuous improvement process. Through the provisions, processes, regulations and instructions that comprise the management system and through training and qualification programs, Clariant ensures that employees have the skills required for their respective jobs. employees can therefore review their own actions and results as well as those of their fellow employees and can identify potential for improvement. risks and opportunities are also identified and appropriate measures initiated on this basis. environmental protection and safety are integral parts of the responsibility assumed by Group management, local CeOs, plant managers, department heads, and every employee. each employee is required to follow regulations in his or her particular sphere of responsibility, develop processes and procedures, and make sure that important information is passed on and that the necessary documentation is kept. A sense of responsibility and commitment to improvement is encouraged by supervisors and managers. employees are familiarized with tasks and challenges and how they relate to corporate policy, strategy, and objectives. everybody who takes part in

18

Clariant sustainability report 2011

45 %
Percentage of waste generated by Clariant that it intends on eliminating by 2020.

PRECISE ENvIRONMENTal TaRGETS FOR 2020 Optimizing costly and complex processes offers broad potential for savings
Our abilities improve to fit the task at hand. This is why Clariant seeks not merely to improve its efforts in areas important to sustainability, but also to set challenging goals for itself that are not only achievable wherever possible, irrespective of economic and corporate developments but which can also be regarded as industry benchmarks. such aims are particularly meaningful in areas where decisive criteria can be clearly defined as precise target figures, for example, in energy consumption, water usage and generated waste volumes. Clariant is striving not only to significantly reduce the absolute quantities of waste it produces; rather, it defines its sustainability goals primarily on the basis of relative variables. The Company strives for improvement based on the produced amount, i.e. per produced ton. In this way, Clariant intends to improve the efficiency and sustainability of its production in the years ahead.
EnvIrOnMEnTAL TArGETS FOr 2020 Consequently, Clariant has formulated the following environmental and sustainability goals for 2020 targeted reductions based on benchmark reference values established for the year 2005:

Clariants environmental targets initially focus on relevant key indicators, for which an adequately large and detailed quantity of data is available from all business activities spanning a sufficiently long period of time. This approach is essential, in order to adequately and reliably forecast and plan for the future. Clariants definition of specific targets is based on a comprehensive analytical process that encompasses all business areas and plants over a number of years and has identified concrete potential for improvement and savings. At the same time, realistic assumptions must be made about future developments in production. For example, an increase in the manufactured quantity of a product with high energy requirements will yield entirely different results, when factored into the pertinent equations, than will a product for which energy demand in production is merely of secondary importance.

Individual targets for each business unit


Against this backdrop, individual targets for the key indicators noted are specified for each Business Unit. The investment planning laid out for multi-year timelines will be devised accordingly, since Clariant will only be able to achieve the improvements it is seeking by drawing on state-of-the-art technologies and processes. These efforts also consider that demand for resources on the part of some production processes is very difficult to predict owing to complexity, and that the need for resources could possibly be higher for innovations implemented in the introductory and development phases. such unforeseen adjustments and developments should then be compensated for with additional improvements in other areas. Clariants 2020 environmental targets are the first such goals the company has set for itself, for Clariant wants to do its part to meet the major challenges and megatrends facing our world: environmental protection, energy efficiency and resource conservation. efforts will of course be made to continuously pursue possible means and solutions for achieving savings that go beyond the defined targets.

30 %

45 %

35 %

energy consumption

Direct CO2 emissions

Direct and indirect emissions of greenhouse gases

25 %

40 %

45 %

Water usage

Wastewater

Waste

As noted, these target values constitute relative variables; thus, each is based on a defined unit of produced goods.

tHe clariant group

19

a project is involved with project identification. Performance-based teamwork is deliberately encouraged. The plant suggestion system individually designed in the respective countries also supports this process. Furthermore, Clariant is in contact with external specialists, associations, and authorities in order to determine focal points for environmental protection and safety programs. Priorities and programs for emission reduction, plant safety, or for improving industrial safety and training programs are developed in working groups and environmental protection committees. Composition of management members of the Board of Directors: 5 swiss citizens 3 German citizens 1 British citizen 1 Austrian citizen 1 Us citizen The members of the committees are members of the Board of Directors. members of the executive Committee:

ever, all candidates have been evaluated and selected on the basis of the same list of criteria (in this regard, also see pages 72-79 of the Annual report 2011). Management compensation Compensation for the Board of Directors and the members of the executive Committee is described in detail in the notes to the financial statements and in the compensation report of Clariant AG (Annual report page 86) and can be checked. The companys compensation policy for executives is based on three main principles: The level of compensation should be competitive and in line with market conditions; it should enable Clariant to recruit experienced executives and experts from anywhere in the world and ensure their long-term commitment to the Group. The structure of total remuneration should be highly performance- and profit-oriented in order to ensure that shareholder and management interests are aligned. The compensation components should be straightforward, transparent, and goaloriented, so as to guarantee the highest degree of clarity and focus on the achievement of objectives for all participants (shareholders, members of the Board of Directors, CeO, and members of the executive Committee). Based on these principles, the Compensation Committee analyzes and discusses market developments at regular intervals and considers the implications of these developments for Clariant. The Compensation Committee of the Board of Directors evaluates on an annual basis the degree to which the objectives of the company as

a whole and those of the executive Committee have been accomplished. It then directs that funds be allocated in accordance with Clariants strategic business plan for the prior year. The allocation is subsequently submitted to the Board of Directors for approval. This process ensures that bonus payments to employees, including executive management, are also in line with the Groups overall performance and objectives. Details are available in Clariants 2011 Annual report. Participation rights of shareholders and employees each registered share entitles the holder to one vote at the Annual General meeting. shareholders have the basic right to payment of dividends and also have other rights under the swiss Code of Obligations. Only shareholders entered in the Clariant share register have voting rights. All employees may submit requests or recommendations at any time to the company, its management, or the appropriate bodies through their supervisors or managers or in conjunction with the company suggestion system (which may differ from country to country). Avoiding conflicts of interest The Clariant Code of Conduct, which can be consulted on the companys website (www. clariant.com), defines responsible conduct and applies equally to all employees. employees must always conduct themselves with regard for the greater good of Clariant, the entire staff and workforce, and stake-

5 German citizens

The members of Clariants Board of Directors and executive Committee have been selected solely on the basis of ability and performance. The members are all over 48 years of age. Thus far, Clariant has not introduced any specific quotas for women, nationalities, ethnic minorities or special age groups for the Board of Directors and executive Committee. How-

20

Clariant sustainability report 2011

holders. This means primarily avoiding conflicts of interest, which includes refraining from active or passive corruption. Financial donations to politicians, associations or organizations must be in compliance with current laws and must also be approved and documented by the Board of Directors. money laundering, insider trading, as well as discrimination in commercial and business dealings are strictly prohibited. All employees are trained to comply with the Code of Conduct. Clariants Compliance Officer is the contact person for any issues dealing with compliance and thus is also responsible for initiating the prosecution of any reported violations of Clariants Code of Conduct. In the reporting year, there were no violations of the Code of Conduct related to corruption, unfair competition or discrimination that had or could have a material impact on the Group. Safety management Clariant has developed guidelines for ensuring product and production safety in order to limit as much as possible the impact of business operations on the environment, health, and safety. The most important company goal in conjunction with its activities is to ensure human safety and protect the environment. The Clariant Group has therefore developed an extensive set of rules and measures as part of esH management, and has introduced a Group-wide risk measurement system. employee training sessions are held regularly in this connection, and processes, procedures, and measures are continually monitored, both in-house and by means of external audits.

Clariants production facilities are analyzed for potential risks and optimization opportunities. The results of these studies are included in the Clariant Groups risk control system, analyzed for urgency and relevance, and then implemented, where possible. esH criteria are also a part of Clariants business relationships. suppliers, contractors, and service providers undergo spot-checks for compliance with these criteria. The careful selection process that is part of procurement management takes into account not only economic aspects, but also purchasing and production processes as well as delivery routes and systems, all of which are evaluated on the basis of sustainability. Clariant works with customers to improve the entire process chain. Clariant has developed the esH management system with these criteria in mind. It is a component of process and strategy planning throughout the Clariant Group. The system includes an ongoing compliance audit of the corresponding rules and regulations. All employees are responsible for the functional effectiveness of the esH management system as it relates to their particular job, position, and qualifications.

ing the companys reputation and reducing risks for shareholders. The Code of Conduct requires Clariant and every individual employee to follow a comprehensive set of rules. It is designed to ensure fair competition, freedom of association, and the right to collective bargaining. Corruption, discrimination, child labor, and forced labor are expressly prohibited. Clariant places the highest value on fair dealings with competitors, suppliers, and customers. There were no complaints in 2011 about conduct in violation of fair competition or about formation of cartels or monopolies. Documents intended for publication, advertising, and other forms of communication content are generally reviewed by the legal department and, if necessary, by the Compliance Officer. They are reviewed for compliance with legal regulations (pertaining to unfair competition, for example) and for conformity with the Clariant Code of Conduct. There have not been any cases in which Clariant was accused of not complying with regulations and voluntary rules of conduct in relation to advertising (including advertisements, sales promotion, and sponsoring). The same applies to the protection of customer data; there have been no complaints about violating the protection of customer data. Clariant believes it is important for the company to take responsibility for public welfare and the common good wherever the Group has business operations. Above all, this sense of responsibility also includes

responsible action, obligations and commitment


Confidentiality applies to all of Clariants business transactions. Protection of intellectual property is assured as a matter of course. There is comprehensive, objective, and up-to-date reporting on these issues. The Clariant Code of Conduct defines responsible conduct. It is a means of protect-

tHe clariant group

21

Clariants responsibility towards employees. Corporate values are ultimately a component of the annual performance review for employees throughout the organization. Principle 15 of the rio Declaration requires that countries take a precautionary approach, according to their capabilities, in order to protect the environment. Thus, measures to prevent environmental degradation must not be postponed, where there are threats of serious or irreversible damage. At the same time, however, such measures should not pose an excessive financial burden. Principle 15 of the declaration ultimately combines environmental protection with cost-benefit analysis. Clariant has applied this principle to the company. Clariants risk management organization identifies levels of risk. Potential risks are assessed during the course of this process. risk management examines these analyses for relevance, consistency, and accuracy in order to then decide on potential optimization measures. Inclusion of stakeholders Clariant communicates in an ongoing and timely basis with important interest groups or stakeholders in the form that is relevant for the particular target group. Clariants considers the following groups to be its main stakeholders: shareholders employees suppliers Customers local residents near Clariant facilities Important associations

Open House 2011 at Gendorf, Germany.

Clariant has a fundamental interest in including the groups listed above in its communication and information exchange process. In most cases, the contact is actively initiated by Clariant on a regular basis. But stakeholders often come to the company with a wide range of concerns, which are then seriously discussed. stakeholders near the various locations or near central company headquarters are included in the work of the company through various activities, such as surveys, neighborhood forums, open-door events, industrial park discussions, cooperative arrangements between plant management and employee representatives, written communications and online information. events are generally held on a quarterly or semiannual basis. meetings with individual stakeholders, such as those located near local facilities, or with shareholders were held before this report was prepared. Questions, suggestions, concerns, and complaints (such as about noise from production facilities) are recorded in detail and forwarded to the proper department in the company for handling. That department re-

views the facts of the matter seriously and gets in touch with the stakeholders or affected parties as soon as possible. A whole series of changes results from this process. some facilities, for example, are directly adjacent to residential areas. Also in large industrial parks, there are neighbors due to the large number of companies. Protecting our own employees from harmful noise levels is just as important as protecting our neighbors. Clariant is therefore making an effort to reduce noise nuisances even further. However, stakeholder questions and suggestions have to date not made any serious changes necessary. Ultimately, our goal is to strengthen the positive impact on all other persons connected with the company and to largely eliminate any negative effects. Awards Clariant did receive some prizes and awards related to the issue of sustainability in the reporting year specifically, in China and Indonesia. For further information see page 59.

22

Clariant sustainability report 2011

ClArIANT AND THe eNvIrONmeNT

Environmental protection is a top priority at Clariant. It begins with product design and product development, continues with the production process, the resources utilized, and transport and product safety, and finally ends with the best possible recovery. The raw materials, the manufacture and distribution of the products, and the use and disposal of these products are examined for compliance with environmental and business requirements. Conceivable risks stemming from production facilities are systematically catalogued and analyzed in order to be able to take the greatest advantage possible of potential for improvement. The quantities of energy required for production are also monitored, and products and processes are analyzed to determine possible improvements in this area. The same applies to air and water pollution. Clariant does not start production until the best relationship among all these requirements is determined based on the state of the art. This method has helped us to improve measurably and in some cases quite considerably in almost all environmental areas during the past few years. For instance, there has been a significant drop in the consumption of energy and resources, and in the emission of pollutants in relation to production volume. Increasingly efficient production methods and processes at Clariant have also led to instances in which absolute consumption and emissions have been reduced, in spite of increased production. some indicators experienced a slight increase in 2011 over the prior year, while others decreased. These marginal fluctuations resulted from changes in the product portfolio brought about by market developments. more energy-intensive products were pro-

duced in 2011, but at the same time fewer water-consuming products were manufactured. Clariant has now reached such a low level of resource consumption that further improvements are no longer as striking as in previous years. These successes are an incentive for Clariant to reduce resource consumption even further and also to decrease pollutant emissions both in relation to production volume. Clariant has set binding targets for 2020 in these areas. The management and control systems that have now been introduced are designed to ensure that these targets will be achieved.

materials used
In recent years, Clariant has continually improved the efficiency of its processes and production methods. As a result, the volumes of resources, waste, effluents, and atmospheric emissions have steadily decreased in relation to production volume. To

clariant and tHe environment

23

clarify this statement, it should be pointed out that the overall product volume may be higher than the raw material input because Clariant also manufactures products and mixtures that contain water, and that water is considered separately in this accounting process. Clariant also tries to use recycled materials in production, wherever possible. However, the proportion of recycled materials has traditionally been rather low, since it is often not possible to use them due to purity requirements. For safety reasons, it is also not possible to use recycled materials for specialty chemicals of the kind Clariant produces. For the above-mentioned reasons, Clariant uses almost exclusively fresh raw materials for the processes. Nevertheless, in manufacturing, internal reprocessing takes place as an integrated component of the production process for auxiliary substances. In such treatment systems materials are used multiple times; however, detection of the corresponding amount due to reprocessing is not possible in any meaningful way. This also happens especially because of the targeted energy and resource savings. In addition, Clariant uses renewable raw materials more and more often, wherever possible.

PrODUCTIOn AnD MATErIALS USED


Mio. tons

3.0 2.5 2.0 1.5 1.0 0.5 0 2.48

2.72

2.40

2.63

2.32

2.50

2.18

2.37 1.94

2.13 2.16

2.37

2.02

2.23

2005 materials used

2006 Production

2007

2008

2009

2010

2011

In the area of product and transport packaging, Clariant looks for recyclable materials. However, Clariant normally supplies products to intermediate processors rather than to end customers. many products are therefore shipped as bulk goods in tank trucks and tank cars. In addition, cleanable and reusable packaging is used wherever possible, if it is acceptable to the customer. In many cases, however, customer requirements or other factors make it necessary to use packaging that is not reusable. experience has shown that the systems for handling non-reusable steel and plastic packaging vary from country to country. In Germany, for example, most product volumes are transported in silo trucks, tank trucks and in reusable packaging. But proportionately larger product volumes are exported to other european countries in non-reusable packaging. Nonetheless, packaging is re-

cycled if possible in substance-based or, in the case of hazardous goods packaging, in energy-based processes. For optimum implementation of these measures, Clariant prefers to work with international packaging manufacturers within the framework of its global purchasing process. These partners and their network support the international standardization process. In addition, reuse and recycling is supported and is now being implemented internationally in markets outside europe based on established closed-loop systems as well as systems currently under construction.

24

Clariant sustainability report 2011

13 %
Percentage by which energy consumption at Clariant was reduced between 2007 and 2011.

REduCING ENERGy CONSuMPTION WITH FuTuRE-ORIENTEd PROGRaMS eWaTCH: a new energy management concept coordinated across the entire Group
like its predecessor system, eWATCH regularly records all energy consumption data and identifies areas that reveal potential for reducing consumption. It also enables staff to continuously optimize machine utilization factors. machines, systems and plants should be integrated into production planning and processes so that they run only at or near their highest efficiency. Corresponding displays mounted in measuring stations provide real-time visualization of these conditions for operating personnel. eWATCH is an energy management system coordinated throughout the entire Group. Its objective is to achieve greater energy savings through improved coordination, while enabling keener assessment of the cost-benefit ratio of investments to energy savings. lastly, intensified training aims at sharpening employees awareness of energy consumption and broadening knowledge of cost-saving opportunities. The companys european locations, where much of Clariants production takes place, account for more than 50 percent of the potential savings identified throughout Clariant by the end of 2011. europe will therefore also be a priority area for eWATCH, which is centrally coordinated by the Global Competence Center energy & Utilities, as part of Group Technology services (GTs).

Energy 2010 and eWatch ensure success


lowering energy consumption is one of Clariants most important corporate goals, and not just for business reasons. At Clariant, conservation of resources ranks at the very top of our list of priorities. This explains not only why so much has been undertaken in recent years, and also why so much has been achieved (see also page 26, energy consumption). energy efficiency has greatly improved at Clariant, and energy consumption per product ton has fallen significantly. The origin of these savings was the energy 2010 program launched in 2006, which systematically recorded energy consumption throughout the Group and identified potential for savings. The success of this program then led to its even more extensive successor eWATCH a monitoring system intended to further optimize control operations at energy-consuming plants. One essential instrument of these efforts is the Clariant energy Intelligence Guide a guideline for all of the companys plants which provides concrete information on how each plant can reduce its energy consumption. reference variables are provided along with almost 400 instructions and tips on specific energy-saving measures. The guide is presented and explained to staff at internal events and training courses. As a result of these measures, Clariant succeeded in lowering its energy consumption relative to the produced quantity of goods by 13 percent between 2007 and 2011.

Pilot projects reveal substantial energy-saving potential


One very good example for demonstrating how well eWATCH works is a pilot project carried out by Clariant at its Frankfurt-Hchst location over several months during 2011. A plant there produces diketene, which in correct chemical nomenclature is named 4-methylideneoxetan-2-one. This substance is used as sizing in the manufacture of paper, as well as in the fabrication of pharmaceu-

clariant and tHe environment

25

ticals, insecticides, dyestuffs and pigments. Besides diketene, the Frankfurt-Hchst location also produces sorbic acid polyester, and the acetic acid arising from the production process is reprocessed in appropriate fractionating columns. With annual energy costs for electricity, steam, natural gas and refrigeration running into several millions of euros, this production plant is one of the most energyintensive plants at the Frankfurt-Hchst location. since early 2011, an electric eye deployed within the framework of eWATCH delivers information on all energy flows within the plant. A computer records the energy quantities utilized and compares this data with the statistically ideal values, directly displaying the comparative analysis on a monitor. The system reports the differentials between the target and actual values as well as the possible savings potential in color-coded figures: Green means that current energy utilization is better than the stored optimum data, while red means that current actual energy utilization is uneconomical. This transparency of energy consumption profiles the initially required generation of an extensive, complex database, which was then fed into a high-performance electronic energy-efficiency analysis system. This database was applied for the first time at the diketene production facility in Frankfurt-Hchst. Thanks to round-the-clock measuring and computing systems coupled with continuous screen-based visualization of process operations, the operations manager and staff can identify at any given time what quantities of various forms of energy are being utilized per product ton or distilled acetic acid, where losses are occurring, and whether energy costs can be reduced. measures aimed at reducing energy consumption and saving costs are compiled in an energy savings plan. The plant operator can change the type of energy deployed by making a few manual adjustments at the cracking furnace. If there is an adequate supply of methanol on hand, generated as a byproduct in a neighboring facility, this fuel can be fired as a substitute for expensive natural gas. In addition, energy losses displayed on the monitor may indicate that insulation is defective, or that routine cleaning is due.

Analyses of all the processes revealed that potential savings in energy consumption for this pilot project range from 10 to 15 percent. The results produced at the Frankfurt-Hchst plant represent an important step. They also elevate energy management from the machine and system level to the plant operating level, thus tapping into further potential savings on a very attractive scale. Intensive considerations and planning are currently underway for applying this method of analysis at other plants. eWATCH thus intervenes directly in a plants operating business by providing specific, concrete information on how to run the plant as energy-efficiently as possible with existing equipment.
ewATCH eWATCH is an important tool for enabling Clariant to meet the environmental targets it has set for itself by 2020. The system comprises a number of components:

reference benchmark figures for the entire Group allow immediate

screen-based visualization of optimum consumption and efficiency data in every production and energy-generating unit of Clariant.

Continuous monitoring by means of regular checks of screen-displayed

data as well as in-situ inspections ensure energy-saving measures are implemented correctly, effectively and efficiently. This, in turn, enables employees to draw conclusions about further potential for improvement.

staging so-called energy Days as local, regional and global events,

with presentations and discussion panels, is a particularly effective way of convincing managerial staff of the importance of meaningful savings opportunities.

Working groups at company locations sensitize employees to energy

issues and raise their awareness of the need to save energy. Information is also conveyed about specific measures for saving energy and identifying energy-saving potential.

Operative energy optimization efforts are closely linked with the Clariant
excellence initiative in the area of production improvements, with an eye to improving production and financial results more closely in line with greater energy savings.

26

Clariant sustainability report 2011

energy consumption
Clariants plants require energy primarily in the form of steam, electricity and natural gas. electric current is used mainly for drive units such as electric motors for agitators, pumps and other processing equipment. The measurement and control systems and the lighting systems also require electricity. Clariant uses natural gas for heating dryers, for firing cracking furnaces and in our own power plants for generating electricity and steam. Clariant uses steam for heating reactors or separation equipment such as distillation columns. The resulting condensate is used for heating purposes, wherever possible. Direct energy consumption, i.e., the use of primary energy sources, takes place at sites for electrical, thermal and steam production. Indirect consumption comes predominantly from the procurement of electricity and steam. energy is an important production factor for Clariant, but it is also a cost factor. That is why the energy 2010 project was launched in 2006. This programs goal was to reduce energy consumption by 2010 by as much as 15percent compared with the reference year of 2005. The goal is to achieve corresponding cost savings and a reduction in greenhouse gases. One of the secondary conditions was that the required investments would be amortized within five years.

energy 2010 resulted in a comprehensive and detailed survey and analysis of the energy consumption at the 20 largest production locations. The potential savings and required capital expenditure were then calculated. A total of more than 400 individual projects were identified. They were successfully implemented, and the original objectives were achieved. In order to continue this success, Clariant has launched a new energy project called eWATCH. It has expanded beyond the scope of energy 2010 and been transformed into an independent Group-wide efficiency program. energy consumption and potential savings are also regularly surveyed, and continuous improvements in the utilization of machinery and systems have been added. The goal is for production machinery to be scheduled and used at specific times so that it will only run at or close to its best efficiency level. Cor-

responding displays in the control rooms, for example, are designed to make this immediately visible to operating personnel. efforts to save energy have also led to the Clariant energy Intelligence Guide, a compendium of infrastructure and production systems at Clariants facilities. It lists the condition, technology, and efficiency of all plants, in order to identify potential improvements in the areas of energy generation, distribution, and consumption. This guide enables the company to derive energy-saving measures such as the reduction of compressed air pressure in production processes, optimization of pump motor efficiencies, and improvements in industrial gas production. Clariants production operations became considerably more energy-efficient in the

EnErGy COnSUMPTIOn In rELATIOn TO PrODUCTIOn vOLUME


kilowatt hours/ton

2 000 1 500 1 000 500 0

1 711

1 606

1 469

1 397

1 319

1 278

1 281

2005

2006

2007

2008

2009

2010

2011

EnErGy COnSUMPTIOn
kilowatt hours (millions)

5 000 4 000 3 000 2 000 1 000 0

4 660

4 217

3 670

3 309

2 812

3 030

2 859

2005

2006

2007

2008

2009

2010

2011

clariant and tHe environment

27

period from 2005 to 2011. energy consumption per product ton decreased by 25percent in the period to 1 278kilowatt hours (kWh). Although the production volume was only slightly lower than in 2005, Clariants global energy usage declined significantly from about 4 660million kilowatt hours in 2005 to about 2 850millionkilowatt hours in 2011, a decrease of almost 40percent. Other indirect emissions of greenhouse gases beyond those reported are not stated, since that they are difficult to define and the cost-benefit ratio is unclear. Total energy consumption is reported, regardless of whether the energy is generated by the company or is purchased. Indirect emissions such as CO2 from electricity-generating coal power plants are also noted. However, they are not included separately in this report. Clariant cannot measure the effects of climate change on the companys business results. sustainability in production with less CO2: Clariant avoids carbon dioxide emissions by optimizing continously production processes so they will be environmentally compatible. The carbon dioxide produced by catalytic exhaust gas combustion at the plant in Gendorf, Germany, is purified and sent to our partner company linde for pressure liquefaction and further industrial usage. As a result of this cooperative arrangement, the CO2 emissions of this Clariant plant in Gendorf have been permanently reduced by 95percent.

Clariant is striving to reduce atmospheric emissions by using innovative technologies. The successes are often small, but when added together they result in significantly lower emissions of pollutants.

water usage
Absolute water consumption in the period from 2005 to 2011 fell considerably, specifically, from 114 million to 78 million cubic meters. Consumption per product ton dropped by approximately 15 percent, from 42 to 35 cubic meters.

Water is one of the chemical industrys most important resources. Clariant uses it mainly as a coolant and as process water during production. especially at the major production sites, water requirements are met largely with river water. Before flowing into the piping systems of the individual locations and depending on the use, the river water is cleaned using various filtration systems. remaining amounts are taken from the local water grid, however not in large enough amounts that would strain the water system to any significant degree.

wATEr COnSUMPTIOn In rELATIOn TO PrODUCTIOn vOLUME


m 3/ ton

50 40 30 20 10 0

42

43

41

40

38

34

35

2005

2006

2007

2008

2009

2010

2011

wATEr COnSUMPTIOn
m 3 millions

120 90 60 30 0

114

112

103

96

81

80

78

2005

2006

2007

2008

2009

2010

2011

28

Clariant sustainability report 2011

THOROuGH aNalySIS OF uNCONTaMINaTEd COOlING WaTER


During the 20th century, the habitats of fish and other animals living in the main were radically altered: The riverbed was reshaped, numerous artificial barrage dams were erected, and more and more pollutants were discharged into the river. The quality of the water, the riverbed and natural riverscape diminished drastically. Due primarily to the impact of excessive wastewater dumping, the main river in its lower reaches near Frankfurt was considered in the early 1970s to be practically dead, as noteworthy stocks of fish or any other animals were no longer to be found. The high organic loading of the river was the main reason for this condition.

detailed water temperature and pollutant analysis Water temperature impacts colonization behavior of fauna near industrial plants
Clariant is keenly aware of its responsibility in the regional vicinity of all its Group locations and strives to minimize the impact that production may have on the environment. It is essential to these efforts that the most critical environmental factors are continuously analyzed and evaluated to enable a timely response to changing conditions, as needed. This is being done at the companys location in Frankfurt-Hchst, Germany, where Clariant has documented the influence spent cooling water discharged from its facilities has on water temperature and the behavior of fish populations there. As recent as 1800, the main river was still among europes waterways with the greatest abundance of fish, with long stretches offering habitat to migrating fish species, such as sea trout, river lamprey and even salmon and sturgeon. Yet, when the industrial revolution hit this region in the late 19th century, the riverscape along the main underwent a period of considerable change. Along almost its entire course, the river was channelled and the water used for any number of domestic, municipal and industrial purposes. The entire river, over a total length of 480 kilometers, was reduced to the mere function of a navigable canal and drainage gutter. since 1992, the main has become part of a european waterway linking the North sea with the Black sea. Water temperature and river flora and fauna are impacted not only by pollutants, but also by the condition of the riverbanks and riverbed, as well as by navigation. sluggishly flowing waters slowed by barrage dams and the discharge of heated, spent cooling water raise the temperature of rivers. This effect is particularly strong if, during hot summers, the natural water temperature, already elevated, is raised even further by water discharged from industrial facilities. The temperature itself and the waters temperature-dependent oxygen content directly affect the physiological processes of living organisms, and exercise indirect influence as well by way of altered physical and chemical conditions. Freshwater fish in Central europe thrive within a temperature range of 0C to 30C, although the optimum ranges of various fish species differ. Fish also respond differently to temperature fluctuations in their various stages of development (i.e., as eggs, larvae, fry and adult fish). Fish cannot survive for long at temperatures above and below these individual temperature ranges. Hence, fish stocks are affected by water temperature, as are the species

clariant and tHe environment

29

that make up the stocks and fish migration. While during winter months fish tend to seek out locations where cooling water lines discharge into the river, they usually avoid these areas in summer months. Yet, absolute temperature is not the only determining factor: the speed of temperature change also plays a role. even in winter a short-term rise in water temperature of 5C can trigger a massive die-off among some species of fish. recent decades have witnessed a steady decrease in the dumping of wastewater contaminated with pollutants into the main river, so much so that measured figures sometimes fall below the lower limit of detection. main river water has grown steadily cleaner. Along with other companies in the rhine-main region, Clariant decided to also address the issue of temperature, as several of its plants still discharge spent cooling water into the main in a number of Frankfurts districts, including Fechenheim, Griesheim, Hchst and Kelsterbach, as well as in the neighboring city of Offenbach. Along a stretch of almost 30 kilometers, the main river flows through the Frankfurt metropolitan area at depths of up to 7.40 meters. Clariant sought to find out what impact spent cooling water discharged from its own plants has on river fauna. To this end, a study of temperature, animal species and related changes was conducted at multiple representative locations.

The discharge of spent cooling water by Clariant raises the temperature of the main river near the respective discharge points on average by 0.2C, and at maximum by less than 0.5C. By contrast, solar radiation can increase the temperature of the main by 1-2C. It is therefore highly probable that discharge of spent cooling water by Clariant into the river does not alter the fish and riverscape fauna. The investigations results are gratifying, for wastewater purity is not the only aspect important to the company; it is also concerned with any other environmental impact Clariant could possibly cause as well. Clariant will continue to record, analyze and evaluate this data.

The fish stock in the Main river at Frankfurt is composed of:

5 % Others, such as wels catfish,


pike and flounder

14 % eels

30 % (True) perch and bass such as chub,


ruffe and zander

discharged cooling water has only marginal impact


studies revealed that fish stocks in the main river and their biodiversity depend primarily on the structure of the riverbanks and the intensity of navigation. The mains riverbanks in this region predominantly consist of rubble stone, which impairs natural development in these areas and substantially limits fish habitat. These factors likewise affect colonization by snails, mussels, worms, crustaceans, flies, beetles and other winged insects. This form of water structure has in the past decades led to colonization primarily by species of fish of the carp family and true perch, which from an ecological standpoint are considered to be rather undemanding.

51 % Carp varieties such as ide, barbel, dace,


roach, asp, bleak and tench

30

Clariant sustainability report 2011

Of the volume of water measured in 2011, Clariants operations used approximately three quarters for the cooling of production plants, around one-seventh for production processes, and the remaining amount as product constituents or for sanitary purposes. At some sites, spent cooling water is recycled in large recooling plants for re-use as a coolant. This particularly eco-compatible cooling procedure, which is deployed wherever technically feasible, saved roughly 180 million cubic meters of water in 2011 water which, without these recooling circuits, would have had to be additionally drawn elsewhere. Clariant uses water for a wide range of purposes in the manufacture of its chemical products, and some of this water can become contaminated. For this reason, at

the respective site production effluents undergo predominantly multi-stage chemical and physical treatment as well as biological cleaning before entering wastewater treatment plants for microbiological purification. By contrast, cooling water along with rainwater can be returned straight into rivers without being treated because it does not come into contact with chemicals. In order to avoid contamination of the water returned in that way due to undetected leaks in the cooling system, cooling water and rainwater are continuously monitored and analyzed at the individual sites as an additional safety measure. should contamination be identified, the flow of water into rivers can be prevented through various retention systems.

Between 2005 and 2010, the volume of effluents produced by Clariant fell by roughly one-third, to a total of 20 million cubic meters, partially due to a drop in production. In fiscal year 2011, the absolute volume of effluents produced by Clariants operations declined by another 8 percent, to 18.5 million cubic meters, despite a similar level of production. A further improvement, from 8.48 to 8.26 cubic meters per product ton, was achieved. since 2005, Clariants factories have succeeded in reducing the chemical oxygen demand (COD) of their effluents, following treatment of more than 40 percent. Nonetheless, Clariant intends to further reduce the specific COD figure by recycling and recovering what are known as mother liquors and by reducing product quantities of effluents. Doing so also cuts production costs. The effluents produced at certain Clariant locations contain only small amounts of heavy metals. some of the extrapolated data are calculated based on concentration levels that are just at or even below the detection limit. The amount of heavy metals introduced is also largely dependent on the elimination efficiency of the upstream wastewater treatment plant, the chemical composition of the effluent, the effectiveness of chemical precipitation before the effluent enters the biological purification process, and the tendency of heavy metals or heavy-metal components to adhere to sewage sludge. By 2011, Clariants heavy-metal emissions had dropped by more than one

vOLUME OF EFFLUEnTS In rELATIOn TO PrODUCTIOn vOLUME


m 3/ ton

12 9 6 3 0

11.5

11.3

10.8

10.8

8.9

8.5

8.3

2005

2006

2007

2008

2009

2010

2011

vOLUME OF EFFLUEnTS
m 3 millions

40 30 20 10 0
2005 2006 2007 2008 2009 2010 2011

31

30

27

26 19

20

18.5

clariant and tHe environment

31

CArBOn DIOxIDE EMISSIOnS In rELATIOn TO PrODUCTIOn vOLUME


kg/ ton

250 200 150 100 50 0

236

227

202

197

184

154 115

2005

2006

2007

2008

2009

2010

2011

limits specified in the official operating permits for industrial plants. Clariant monitors compliance with these limits by taking into account its own measurements at individual locations as well as measurements taken by independent institutes within the scope of the official regulations. Clariant determines overall atmospheric emissions at individual locations at regular intervals, as stipulated by the authorities. The amount of CO2 directly emitted by Clariant has been trending downward from 2005 through 2011. The total of all CO2 emissions also as a result of one-time savings effects, especially during 2010 and 2011 fell from roughly 640 000 to approximately 260 000 tons, while CO2 emissions per product ton fell from 236 to 115 kg/t. From 2007 to 2011, the total amount of all greenhouse gases, in other words, both direct and indirect emissions (referred to as the CO2 equivalent), fell from 1.36 million to 1.12 million tons, and emissions per product ton dropped from 541 to 505 kg/t. The indirectly caused greenhouse emission gases is predominantly generated from external energy delivery, mostly as electricity and steam. Country specific factors, which are used for calculation purposes, are taken from the existing infrastructure in the respective coun-

CArBOn DIOxIDE EMISSIOnS


tons

700 000 600 000 500 000 400 000 300 000 200 000 100 000 0

641 634

596 319 506 229 468 016 393 032 366 051 257 530

2005

2006

2007

2008

2009

2010

2011

half, compared to 2005 levels. The effluents released by Clariant into bodies of water are cleaned to the greatest extent possible, and they do not place any particular strain on the environment. Today, Clariants effluent cleaning and water-treatment capabilities have already achieved an exceedingly high standard.

atmospHeric emissions
even with the best available technology, it is not possible to completely avoid atmospheric emissions. They are just as much a side effect of production processes as waste products or the consumption of resources and raw materials. emissions are subject to

EMISSIOnS OF nITrOGEn DIOxIDE AnD SULFUr DIOxIDE


tons

2005 840 685 833

2006 515 611 654

2007 424 538 601

2008 428 422 577

2009 331 353 454

2010 309 397 461

2011 292 421 352

NOx sO2 vOC 1


1

volatile organic compounds

32

Clariant sustainability report 2011

GLOBAL wArMInG POTEnTIAL (DIrECT AnD InDIrECT EMISSIOnS) PEr TOn PrODUCTIOn, vALUE [KG/TOn]
kg CO2 equivalents/tons

600 500 400 300 200 100 0

541

521

537

492

505

try. The CO2 equivalent has been measured only since 2007. Over the period from 2005 to 2011, fine-particle atmospheric emissions fell by almost 50 percent, to 54 tons, and the amount per product ton dropped by around 35 percent, to approximately 24 grams. substances with ozone-depleting potential are used exclusively in closed systems, mostly cooling systems. Clariant collects data on both the respective filling volumes and any possible losses. As a whole, coolants are used that have no or significantly reduced ozone-depleting potential, compared to r11 or r22 substances. since 2005, the total resulting effect on the ozone layer from losses has been reduced by about 60 percent and, when converted into r11 equivalents, is still only at just a few hundred kilograms. Within the framework of regular maintenance and replacement of cooling units, only gradually coolants are used, such as ammonia, which has no ozone-damaging effect and no greenhouse gas potential. The european Pollutant release and Transfer register was introduced in the european Union in 2008. Updated on an annual basis, it provides the public at large with information concerning significant pollutant releases into the air, water and land as well as waste accumulation. These reports on specific industrial facilities are accessible to the public on the Internet. The goal of the detailed disclosure of related data is to make it easier for the public to access information on the environment and contribute to public participation in environmental decision-making.

2007

2008

2009

2010

2011

GLOBAL wArMInG POTEnTIAL (DIrECT AnD InDIrECT EMISSIOnS), vALUE [TOn]


tons of CO2 equivalents

2 000 000 1 500 000 1 355 534 1 000 000 500 000 0
2007 2008 2009 2010 2011

1 235 551

1 144 627

1 167 678

1 126 942

PArTICULATE EMISSIOnS In rELATIOn TO PrODUCTIOn vOLUME


grams/ ton

40 30 20 10 0

38

34

32

32

31

28

24

2005

2006

2007

2008

2009

2010

2011

PArTICULATE EMISSIOnS
tons

120 90 60 30 0

102

89

80

77

65

66

54

2005

2006

2007

2008

2009

2010

2011

clariant and tHe environment

33

Further significant emissions of anorganic pollutants, such as sO2 and NOx, have been reduced by a total of more than 50 percent since 2005, organic emissions (vOC) by almost 60 percent.

wASTE In rELATIOn TO PrODUCTIOn vOLUME


kg/ ton

120 100 80 60 40

111

106

94

101 83 72 70

waste
Clariant places priority on avoiding generating waste ahead of its recycling or disposal. In this regard, during the development and manufacture of products, emphasis is placed on generating the least possible amount of waste. Unavoidable production waste is then recycled or disposed of properly. each waste item is recorded, analyzed and documented as accurately as possible. Proper disposal must be verified and documented internally. In doing so, it is important to know from which factory the waste originated, the volume produced over a given period, the properties of the waste components, whether the waste is to be classified as hazardous, and how it can be recycled or disposed of. Data concerning waste generated at individual sites is assigned to the respective

20 0
2005 2006 2007 2008 2009 2010 2011

wASTE
tons

350 000 300 000 250 000 200 000 150 000 100 000 50 000 0
2005 2006 2007 2008 2009 2010 2011

303 470

278 587 234 333 239 431 176 678 171 273 156 769

originators and waste-disposal companies and then analyzed. Waste-disposal companies are selected in a responsible manner and audited according to stringent qual-

ity criteria. The results of the audits are recorded and the relevant information is exchanged among the individual Clariant locations. These measures taken as a whole

QUAnTITIES OF wASTE In TOnS


tons

2005 175 084 60 258 103 880 27 572 128 386 41 027 109 625 45 837 303 470

2006 144 188 54 215 80 428 22 267 134 399 41 447 108 861 46 236 278 587

2007 111 313 37 230 61 600 23 822 123 020 33 577 102 509 41 872 234 333

2008 119 971 34 298 66 259 31 927 119 461 37 343 101 877 32 129 239 431

2009 81 443 18 531 49 881 24 869 95 235 31 771 73 428 24 451 176 678

2010 84 911 22 987 42 707 29 012 86 362 24 475 71 663 27 064 171 273

2011 81 282 26 150 39 894 28 079 75 486 22 798 52 220 30 127 156 769

Hazardous waste recycling 1 Treatment 1 landfill 1 Non-hazardous waste recycling 1 Treatment 1 landfill 1 Total waste
1

These figures also include waste from third-party companies.

34

Clariant sustainability report 2011

RENaTuRalIzING THE CaTaWba RIvER IN THE uS STaTE OF NORTH CaROlINa


In 2011, Clariant was offered the opportunity to take part in efforts to restore an endangered natural riverscape at its mount Holly location in the southwestern part of the Us state of North Carolina, not far from Charlotte. The land on which the Clariant plant stands is directly on the Catawba river and forms part of a long stretch of that river. The commitment to take action and help save the Catawba came about truly at the eleventh hour. In April 2008, the environmental protection group American rivers declared the Catawba river to be the most endangered river in the United states. The poor water quality and in part catastrophic condition of the river are due on the one hand to no fewer than eleven hydroelectric power plants that traverse the river with dams that block the river flow in such a way as to prevent the migration of fish and other living organisms along the river. moreover, unchecked development along the riverbanks has caused increasingly severe soil erosion, habitat crucial to flora and fauna has disappeared, and there has been extensive dumping of untreated wastewater into the river. On top of all this, global warming has contributed by increasing the rate of riverwater evaporation, exacerbated by a period of severe drought in 2007.

Helping shape the process of rethinking environmental protection


For many years, such undertakings were the measure of all things when it came to constructing waterways: reservoirs, dams and channelization, controlling the velocity of the current and direction of the flow, dredging to enable navigation by larger ships and boats, and stabilizing riverbanks with rubble stone, paving stone or even concrete designed to simplify maintenance of waterways. little consideration was given to the good of the plant and animal world. With varying degrees of severity, such work wreaked havoc on the environment. Today, many people have begun rethinking these issues. Given the necessary means, funding and political will to push through changes, attempts are now underway to restore habitat on rivers as nearly as possible to a natural state. This means returning the watercourse to its original riverbed, reducing current velocity (and thereby increasing the risk of flooding), and ultimately recolonizing the riverscape with its indigenous animal and plant species.

a multitude of specific, individual measures


such goals require a broad range of specific, individual measures. For example, vegetation near the riverbank is important to ensuring adequate driftwood and sunken wood in the river, both of which promote a dynamic riverscape over the course of periodic changes from flooding to drought, creating small-scale cycling between freeflowing streamlets and exposed sand bars. Initial restoration efforts and analyses show just how quickly water organisms colonize such areas.

clariant and tHe environment

35

Dam and power plant structures pose obstacles that are nearly impassable or even insurmountable for fish and other river inhabitants. It is vital that such hindrances be minimized, in order to enhance development of biodiversity along as much of the watercourse as possible. embanking structures such as riverbank stabilization hinder colonization of the river by essential creatures and organisms. In order to allow the river to broaden and become shallower over time, riverbank erosion must be promoted by removing control structures. renaturalization also includes creating gravel and sand bars, which offer biospheres important to many species of fish. The objective of program efforts in the Charlotte area is to extensively restore the ecological functions of the river and its floodplains for plants and animals. The free flow of water is to become more continuous along the length of the river, with the aim of returning
InFO

adequate habitat to migrating fish and micro-organisms. measures undertaken to reclaim and restore riverbank areas are intended to promote plant biodiversity and offer environmentally compatible flood control. relocation of levee structures is also being undertaken to promote renaturalization and conserve valuable river landscapes. Yet, this has not always been easy to do on the Catawba. such ambitious river projects often fail because an insufficient portion of the land concerned - which for the most part is privately owned - is able to be integrated into such plans. For its part, Clariant is taking an active role in implementing this project on the Catawba river, under the direction of government authorities, in part by making available a large piece of its property along the rivers edge which it no longer needs.

Catawba
Hickory Lake Norman Charlotte

Lake Wateree Columbia

Lake Marion Lake Moultrie Charleston

The Catawba river rises in the Appalachian mountains, meandering first across North Carolina through various stages, before flowing into lake Wateree, a reservoir in the state of south Carolina, and ultimately becoming the Wateree river, which drains into the Atlantic Ocean on Americas east coast. Thanks to Clariants endeavors, a contiguous additional area of some 70 hectares (700 000 m2) is now ready to be renaturalized along six kilometers of the rivers length, and the natural habitat there restored. renaturalization work has meanwhile been completed on about 500 hectares of this land. These efforts are being undertaken as part of an environmental protection project called the Carolina Thread Trail, which seeks to protect natural habitat across 15 counties in North Carolina that are home to some 2.3 million people, and return to nature land no longer used for infrastructural purposes. The project also aims to create new recreation areas for the people living there.

36

Clariant sustainability report 2011

ensure that all industrial waste streams at the various locations are continuously monitored and controlled. The total volume of waste generated by Clariant has been dramatically reduced in recent years. After roughly 303 000 tons in 2005, the amount in 2011 was only approximately 156 000 tons. That figure also as a result of a drop in production is falling continuously. The relative development, in other words, the amount of waste per defined unit of produced goods also dropped. Thus, in 2011, the amount of waste per product ton in the period dropped by 37 percent, from 111 kg/t to 70 kg/t. The waste is collected separately, by type and disposal method. most of it (more than 70 percent) is recycled or treated; only waste that is suitable is disposed of in landfills. They are officially approved and only suitable waste disposal companies are commissioned for the respective waste.

substances that can no longer be further treated, such as filtration dust from the companys own waste incineration facilities or other manufacturing processes, are sent to special sites for final disposal. The volume of such substances is dropping steadily, thanks to improvements in manufacturing processes and continuous reductions in the overall volume of waste. Under the term waste, Clariant includes not only hazardous waste but also household waste plus soil excavated from construction sites. Because the delimitations vary quite widely around the world, the corresponding measured figures are summarized in the section Total waste in order to avoid any distortions. Further, Clariant essentially releases no other materials into the environment; as a result, these are not identified separately. With regard to waste, the weights of the amounts transported, imported, exported or handled are not recorded separately at the Group level.

biodiversity
As a chemical company with roots that date back a long time, Clariant has some production sites that are more than 100 years old. New locations are selected based on the required infrastructure in existing industrial areas. For this reason, Clariants real estate used for factories and offices is today located almost exclusively in industrial parks or corresponding areas zoned for business. Clariant maintains no operating facilities in biologically protected areas and also not in areas with a high level of biodiversity. With regards to factories located along rivers, Clariant has established strict environmental regulations so the companys activities lead to no measurable impact on nearby flora and fauna.

clariant and tHe environment

37

Clariant runs plants mostly at integrated industrial sites without sensitive adjacent areas. If there are forested areas in close proximity, but as a rule are not protected areas, it is ensured that there is no significant negative impact on fauna and flora from the specific type of facility and the operations. To that extent, a thorough review is avoided in this respect. In 2011, Clariant was involved in the restoration of a natural river landscape (Catawba river) in North Carolina, United states. Animal and plant species included in the red list created by the IUCN (International Union for Conservation of Nature and Natural resources), in other words species threatened with extinction, are not affected by Clariants business activities to any discernible extent.

investments in environmental protection


In order to avoid as much as possible any environmental impact arising from the transport of products or other goods and materials, Clariant has established strict rules for ensuring safety during transport with the corresponding financial expense. In accordance with statutory requirements, Clariant stores key data on each product, such as its classification and labeling, in a database in its electronic order and dispatch system. All those involved in the transport chain are then notified, and transport documents containing the statutory information on hazardous goods are created automatically. The selection and specification of suitable packaging for hazardous goods is integrated into this IT solution. Only experienced and reliable companies are involved in warehousing, order picking, scheduling and the transport of goods. In this way, it is ensured that personnel, organization and equipment comply with statutory requirements. The necessary groundwork for this is laid by the Clariant carrier requirements profile, which defines the requirements for reliable partnerships with carriers. The skills of and care taken by the people involved are crucial to the safety of any hazardous goods being transported.

Task-specific training and further education courses for Clariant employees, held on a regular basis, make a significant contribution to safety. Hazardous goods officers conduct regular inspections of filling facilities and dispatch points. In addition, extensive random checks are performed on road vehicles and tank trucks containing hazardous goods before they leave the respective premises. Transport safety is a central factor when creating and implementing product-specific logistics concepts, such as bundling traffic flows and selecting means of travel and transport. The economic crisis had a discernible impact in 2008 and 2009, when expenses and investments in environmental protection stagnated or even declined. In 2010, however, all these investments rose somewhat again. In 2011, there were some exceptional effects from special programs (such as the commissioning of new locations, relocation of production, etc.), resulting in an increase of investments in environmental protection. Consequently, investments in environmental protection increased to over CHF 20 million. Total outlays for environment, safety and health reached a level of roughly CHF 100 million in 2011.

38

Clariant sustainability report 2011

HUmAN resOUrCes AND OCCUPATIONAl HeAlTH AND sAFeTY


Clariants sense of responsibility refers in particular to its responsibility toward its employees. Through the People Excellence program, Clariant ensures that the right employees are available at the right time for the right position. The primary goal of People Excellence is thus to improve how the company develops its employees. That means providing them with the requisite skills and resources and giving them the necessary level of freedom. To safeguard these improvements over the long term, Clariant also places a strong emphasis on succession planning and talent management.

employees
Due to the past restructuring of Clariant AG, which was unavoidable for economic reasons, human resources management has been faced with a number of major challenges. In order to create the conditions that would lead to sustainable and profitable growth in the Group, extensive changes in the corporate structures could not be avoided. The comprehensive restructuring measures had a direct impact on the number of employees in the Group. From 2008 until 2010, the headcount dropped by almost 4 800. This restructuring, however, is starting to bear fruit. In fiscal year 2011, the number, based on full-time equivalents and excluding acquisitions, remained virtually unchanged: 16 194 employees from 93 countries. Including the acquisitions made

Clariant is fully compliant with the basic principles of the International labour Organization (IlO). This includes strict adherence to regulations concerning freedom of association. Discrimination on grounds of race, ethnic origin, gender, religion, beliefs, disability, age or sexual orientation is not tolerated. www.ilo.org

Clariant offers its employees the best possible working conditions. Compensation is in line with the market and is based on both personal performance and the companys success. Clariant promotes the development of its employees and provides young people with broad-based training. Furthermore, Clariant places great value on its employees integrity and health. Thus, employees are trained as part of comprehensive safety programs so they can avoid accidents, injury, and illness.

Human resources and occupational HealtH and saFety

39

TrEnD In FTES 1 (On 31 DECEMBEr) FIvE-yEAr OvErvIEw 2011


2

compensation
22 149 16 176 17 536 20 102 20 931

2010 2009 2008 2007


0 4 000 8 000 12 000 16 000 20 000 24 000

EMPLOyEES By AGE In 2011 3


Data based on full-time equivalents (FTEs)

Total: 16 194
Under 30 1 961 12.1 %

30 to 50 10 598 65.5 %

In the past few years, Clariant under new management has gone through a fundamental restructuring in order to raise its efficiency and cost structure to an internationally competitive level. As part of this unavoidable program, the number of employees dropped by roughly 25 percent. This restructuring was successfully completed in 2010. In fiscal 2011, Clariants Human resources Department developed and introduced new recording and reporting standards. These standards are now to be rolled out to the entire Group in phases, thus allowing the company to gain knowledge as well as to make statements that today are not yet available or even possible in all areas. Clariant fundamentally pays wages and salaries that conform to market conditions. This helps the company to attract the best talent and retain a loyal workforce. However, the data basis currently available from Clariant is not comprehensive enough to make statements about gender-specific differences in employees wages and salaries. Of course, all local regulations concerning part-time employees and those with tem-

Over 50

3 635 22.4 %

1 2 3

FTe = Full-time employee Including sd-Chemie Without sd-Chemie

in 2011, in particular sd-Chemie AG, the total number of employees increased by more than 6 000 to 22 149. In fiscal year 2011, Clariant established a new reporting and recording system in the human resources area. At the time this report was being prepared, not all of the

analyses had been sufficiently completed to provide explicit information about employee fluctuations. During 2012 a project for expanding the reporting system is planned with the goal of making the data base available by 2014. The detailed employee structure seen on page 40 cannot be created for 2011 with the inclusion of sd-Chemie.

40

Clariant sustainability report 2011

EMPLOyEE STrUCTUrE OF CLArIAnT In 2011 1


Data based on full-time equivalents (FTEs)

Total 16 194 15 916 12 876 3 040 15 635 12 843 2 792 281 33 248 278 230 48 9 843 6 971 2 872 6 351 6 135 216

in % 100 98.3 79.5 18.8 98.2 80.7 17.5 1.8 0.2 1.6 1.7 1.4 0.3 60.8 43.0 17.7 39.2 37.9 1.3

Employees Employment relationship Permanent men Women Full-time men Women Part-time men Women Temporary employees men Women Type of employment salaried men Women Hourly men Women
1

porary contracts are observed. Agreements with employee representation committees are applicable to half of employees; activities in management functions are as a rule not subject to such agreements. In the case of operational changes (such as plant closings), Clariant works closely together with employee representatives and the employees themselves. There is an intentional distinction in contributions by Clariant by type of employment contract does not take place. However, this does not exclude distinctions depending on individual cases and corresponding local conditions. There is as yet no basis for systematic recording. It is also our intention to avoid any variation in the base salaries of men and women. Discrepancies may however occur in individual situations. The data currently available does not provide any global transparency. However, in the reporting year measures were initiated to expand the reporting system and thus to also enable analyses at this point.

Without sd-Chemie

EMPLOyEES 1
Data based on full-time equivalents (FTEs)

employee policies
Clariant is an international enterprise not only because of its business activities, but also by virtue of its employees who come from 93 countries. As the employee structure indicates, Clariant employs primarily local personnel at its locations in each country. This is also true for supervisory positions. Only in unique cases are foreign employees brought in.

Total: 16 194 13 106 (80.9 %) 3 088 (19.1 %) men Women

Full-time Part-time
Without sd-Chemie

15 907 (98.2 %) 287 (1.7 %)

Human resources and occupational HealtH and saFety

41

Worldwide, more than half (51.5 percent) of all Clariant employees fall under a collective bargaining agreement. There are at times significant differences on a regional basis, which depend above all on the respective national practices. For instance, the number of employees falling under collective bargaining agreements in europe is quite high at 85 percent, whereas in the United states, the middle east and Africa as well as japan it is very low or even tend-

ing toward zero. In 14 of the 42 countries in which Clariant is active, there are collective bargaining agreements for all employees. In 13 countries there are no collective bargaining agreements for a variety of reasons. In the remaining countries, participation in such agreements is voluntary for employees or not required at certain hierarchical levels and functions.

EMPLOyEES By rEGIOn In 2011 1


Data based on full-time equivalents (FTEs)

In fiscal year 2011, Clariant developed a program to further promote family-friendly employment options. As part of this program, every new mother is guaranteed an equivalent position when returning to work for up to a year after a birth or adoption. For the following two years, Clariant also guarantees these mothers ten paid personal days for family purposes in addition to their standard vacation. Fathers, too, are able to take advantage of these work policies after the birth of a child. This program started on 1 April 2012; as a result only at this point will statements about parental leave practices be possible. At the end of 2011, Clariant decided to redesign its performance review process. The new process is currently being used for upper management, but it is scheduled to be rolled out to all employees by 2013. employees are informed promptly by the company about all important operational changes. In addition to regular and ad hoc information over the intranet accessible to all employees, the local, legal and occupational requirements for obligatory information are available for employees and employee representatives, and voluntary occupational informational events are held regularly.

Total: 16 194 Men 6 358 (81.0 %) Europe (7 853) women 1 495 (19.0 %)

Men 2 737 (79.5 %) Asia (3 444)

women 707 (20.5 %)

Men 2 269 (81.7 %) Latin America (2 777)

women 508 (18.3 %)

Men 941 (78.4 %)

women 259 (21.6 %) north America (1 200)

Men 801 (87.1 %)

women 119 (12.9 %) Middle East & Africa (920)


1

Without sd-Chemie

42

Clariant sustainability report 2011

uPHOldING CORPORaTE valuES TO dRIvE MOTIvaTION


The focus of People excellence in 2011 was on the development and global dissemination of corporate values (see figure below). These express what characterizes Clariant and have the guiding principle of creating sustainable value. each and every employee can contribute to this by putting into practice the highly behavior-based corporate values. Global, regional, and local workshops were held in 2011 to translate the corporate values into a personal contribution by each employee to creating sustainable value. By the end of 2011, a total of around 12 000 employees had taken part in a half-day values workshop.

Managers as Role Models Employees Ensure Sustainability


making Clariant a global leader in the field of specialty chemicals requires employees who are extremely well trained and focused on common goals. People excellence is one of the four pillars of Clariant excellence and has a targeted focus on the qualification of efficient teams and individual employees. Creating sustainable value begins with management, because managers are role models and disseminators. Qualification programs for managers, which were also launched as part of People excellence in 2011, use the corporate values as a basis for establishing a shared understanding of management among all Clariant managers. The training focuses on two questions in particular: How can I promote and challenge the creation of sustainable value in my role as a

Human resources and occupational HealtH and saFety

43

manager? And: How can I be a credible role model in order to put the Clariant corporate values into practice? By mid-2012, a total of more than 1 000 Clariant managers will have taken part in a five-day training course. These training courses are standardized worldwide and are held in eight languages. A People Performance Cycle has also been developed based on the Clariant corporate values. This is aimed at individual employees and systematically combines three key strategic and operational human resources processes: talent management and succession planning, performance management, and 360-degree feedback. As part of this training, Clariant managers are systematically prepared to perform the three key processes. The specific result of this is targeted talent management, company-wide succession planning, and in particular the expectation of giving and accepting 360-degree feedback, in order to achieve continuous growth as an organization and individually. Or in short: creating sustainable value.

CLArIAnTS COrPOrATE vALUES

SUSTAInABLE vALUE CrEATIOn COrPOrATE rESPOnSIBILITy

LIvED APPrECEATIOn

DrIvE FOr ExCELLEnCE

COUrAGEOUS AnD DECISIvE LEADErSHIP

DELIvEr TO PrOMISE

DISCIPLInED PErFOrMAnCE MAnAGEMEnT

44

Clariant sustainability report 2011

nATIOnALITIES OF CLArIAnT EMPLOyEES In 2011 1


Data based on full-time equivalents (FTEs)

Total: 16 194 Germany USA Italy 4 083 (25.2 %) 1 094 (6.8 %) 711 (4.4 %) Indonesia 543 (3.4 %) Thailand Switzerland 312 (1.9 %) 450 (2.8 %) India 915 (5.6 %)

Pakistan 335 (2.1 %)


1

Mexico 472 (2.9 %)

Brazil 1 378 (8.5 %)

China France Spain 1 061 (6.6 %) 909 (5.6 %) 693 (4.3 %)

Others 3 238 (19.9 %)

Without sd-Chemie

training and personnel development


Clariant promotes the development of its employees and provides young people with broad-based training. Furthermore, Clariant offers its employees internal and external further education courses and training programs in specialist areas appropriate for a chemical company. The company promotes employees skills and ambition, their commitment to quality and results, and compliance with environmental protection, safety and health policies at both the individual and team level by offering targeted guidance and support.

Finally, emphasis is also placed on active, broad-based employee participation in continuing self-improvement. A breakdown of training courses and qualification programs by the amount of time required or by gender has not yet been prepared. A project for the expansion of the report system is planned for 2012, with the goal of making the database available starting with fiscal year 2013. Clariant promotes individual responsibility and proactive decision-making through general education, programs to enhance knowledge and on-the-job training. emphasis is also placed on job flexibility and personal performance. This is intended to make it easier for employees to make decisions and act independently even when faced with complex situations. Clariant does not offer special progams for career breaks (sabbatical) or career changes.

Fair and respectful treatment of Clariant employees both among themselves and with people outside the company is a matter of course. To date, there have been no incidents or events that would have required special training measures. Clariant further strengthened training throughout the entire organization in 2011 with a special emphasis on possible cases of corruption. The topic of fighting corruption is dealt with not only through e-learning but also within the context of person-to-person meetings, whereby all Clariant employees are assigned to the target group for one of these two training types. The risks arising from corruption are investigated as part of the ongoing internal audit process. An exact percentage of employees who have not yet undergone training can, however, not be stated reliably at this time.

Human resources and occupational HealtH and saFety

45

occupational saFety
efforts at Clariant to prevent industrial accidents are a key component of production activities and require that supervisors continually motivate their employees along these lines. Back in 2007, Clariant started the AvoidingAccidents@Clariant program to reduce the number of accidents and their consequences (also see pages 46-47). The results of this program and the progress that has been made are apparent in the clearly reduced number of accidents. For instance, in 2011 there were only 48 work-related accidents at Clariant that resulted in losing more than one day of work; this was a reduction of roughly 75 percent compared to 2007 and almost 40 percent compared to the previous year. The program also resulted in a visible reduction in accident-related time away from work. specifically, the lost time accident rate (lTAr) for the Group dropped from 1.12 in 2006 to 0.45 in 2010, before sliding further to 0.28 in 2011, lTAr is the ratio of the number of work-related accidents where

at least one day of work is lost for every 200 000 hours of work. This dramatic drop is not only very gratifying but also the lowest level ever achieved by the Group. The number of days of work per year lost due to accidents dropped significantly from 4 038 in 2006 to 1 188 in 2010, and then to 1 115 in the reporting year. Among the 48 work-related accidents, in 47 cases men were injured, and in only one case was a woman injured. The five newly registered occupational illnesses were suffered only by men. The achieved improvements in accident prevention and the overall extremely low rate of accidents underscore the success of the comprehensive and continual activities undertaken to promote accident prevention and limit the possible repercussions of these accidents. That said, going forward we will continue in our efforts to keep employees constantly aware of their responsibility toward safe conduct in the workplace in order to maintain the good safety record we have achieved over the long term.

active prevention management


With the introduction of the AvoidingAccidents@Clariant program, Clariant has already significantly reduced the number of work-related accidents and occupational diseases in the past several years. studies have shown that deliberate and accidental inappropriate behavior were the most frequent causes of accidents. Clariant has initially addressed deliberate inappropriate behavior. supervisors are decisive in setting the level of occupational safety. They are responsible for training employees in safety aspects, and their own behavior determines the extent to which employees identify with these concepts. Against this backdrop, AvoidingAccidents@Clariant also underlines the especially important role played by executives and management. At the end

DAyS LOST DUE TO ACCIDEnTS AT wOrK 2005 Days lWDr 3 537 17.3 2006 4 038 19.6 2007 3 128 15.9 2008 2 182 11.3 2009 1 931 11.2 2010 1 188 6.8 2011 1 115 6.5

lWDr = lost Workday rate (the ratio of the number of days lost due to accidents at work to every 200 000 hours of work)

nUMBEr OF rECOGnIzED OCCUPATIOnAL DISEASES/DEATHS 2005 Occupational diseases Fatal accidents 1


1

2006 10 1

2007 9 0

2008 9 2

2009 9 0

2010 7 1

2011 5 0

12 1

Accidents unrelated to work with chemicals, such as road accidents.

46

Clariant sustainability report 2011

~ 70 %
Percentage by which the number of occupational accidents at Clariant decreased between 2007 and 2011.

MOST OCCuPaTIONal aCCIdENTS CaN bE PREvENTEd


inadequate or complete lack of organizational provisions, or for want of exemplary conduct by superiors. Against this backdrop, AvoidingAccidents@Clariant also calls on staff superiors and executive management in particular to discharge their duties properly.

Raising every employees awareness is crucial


The same procedure is followed no matter what the location. Program efforts were first launched at our larger facilities where the highest accident rates occur. The remaining locations were then integrated. In 2011, this included 53 locations (24 more than in 2010) from a total of 105 (excluding sd-Chemie). Implementation kicks off with a comprehensive survey aimed at documenting in detail the situation at the given location. Based on this information, the given operating unit is provided with support custom-tailored to its specific needs. results are jointly reviewed with the responsible location managers, and specific plans for implementation are defined and agreed. In parallel with these efforts, location management undertakes to implement the goals of the AvoidingAccidents@Clariant initiative. Appropriate training in the form of Awareness Workshops then prepares the managers for the necessary changes. Worldwide, Clariant employs 30 trainers to provide training aimed at preventing accidents in the workplace. In 2011 alone, nine new trainers were added. Whats more, performance of this training sends a clear signal to location management that occupational health and safety needs improving. Finally, staff learn in specially designed training courses how to change their safety behavior and prevent accidents with superiors and managers likewise integrated into training. This serves to emphasize the particularly important role of leading by example. safety is primarily a matter of maintaining a keen awareness of ones own work and the hazards involved. This is why exemplary behavior and regular training are a must for managers and all staff members. Plants that operate safely produce better quality and utilize resources better.

The right precautions and employee training can prevent accidents in the workplace
Clariant is committed to providing its employees with a professional working environment. This especially includes achieving a high standard of safety in the workplace, which is why Clariant launched its AvoidingAccidents@Clariant initiative in 2007. Originally, the aim of this program was to lower the number of accidents involving loss of one working day or more in relation to 200 000 working hours throughout the entire Group the so-called lost Time Accident rate (lTAr) to a value below 0.8 by the year 2010. efforts succeeded not only in meeting this target, but even in significantly exceeding it: The lTAr sank to 0.45, and in 2011 dropped even further to only 0.28 (see also the section on occupational safety on pages 45 and following). The aim now is achieve an absolute zero accident rate and maintain this rate in the future. To achieve this goal, Clariant has set out for itself an ambitious and thorough program. The accident prevention program is based on a comprehensive rootcause analysis of occupational accidents at Clariant. This study first confirmed previously known facts: Only five percent of all accidents in the workplace are due to technical problems. The major cause of accidents responsible for 75 percent of all such incidents is deliberate or undeliberate misconduct on the part of staff as well as their superiors. The study also provides insight into the lesser known circumstance that some 20 percent of all accidents are caused by an

Human resources and occupational HealtH and saFety

47

The challenge now is to doggedly reduce the number of occupational accidents even further. To ensure that management is fully committed to implementing these efforts, at Clariant the lTAr is one of the key indicators that determine bonuses. In conjunction with the new organizational structure introduced on january 1, 2010, safety is a standard item within the scope of performance reporting by the Business Units.
MEASUrES AnD METHODS FOr IMPrOvInG SAFETy In THE wOrKPLACE

ACCIDEnT PyrAMID Workplace related accidents


Fatality Lost Time Accident recorded injury near-miss Unsafe act

Analyze accidents and near misses and define measures


for preventing similar accidents in the future.

Have occupational health and safety officers conduct regular walkdown

inspections of organizational units, in part together with representatives of the regulatory authorities.

Have occupational health and safety experts advise the production

plants on all issues of relevance to occupational health and safety.

Previously, accidents in the upper three levels of the pyramid were recorded. As of 2012, level four and five events will be systematically recorded worldwide with an eye to establishing a new reporting and safety culture aimed at fostering sustainable accident prevention. Decreasing error and failure rates in groups four and five will consequentially result in significantly fewer events in the higher categories. In this way, Clariant is striving to recognize the root cause of accidents as early as possible and introduce preventive measures.

Charge staff superiors with instructing staff on issues of occupational


health and safety.

Conduct safety meetings. Prepare hazard analyses in accordance with the Occupational
Health and safety Act.

Conduct acceptance inspections of machinery and new plants


with a particular eye to occupational health and safety.

ganizational shortcomings or failure. The most frequent injuries, i.e. about one half, are suffered by employees to their hands and arms, while one third of all injuries are to their feet and legs (consisting very often of sprains, bruises and contusions). Only in about one fifth of all cases do staff suffer injuries to the head, eyes or torso. About one third of cases involve serious injuries such as severe burns or open wounds. Clariant thus continues to enjoy accident rates that are substantially lower than the european chemical industry average. Clariant is working further to develop a Group-wide safety culture with the aim of reducing this rate even further. several Business Units already recorded zero accidents in 2011, and our production plant in Cilegeon, Indonesia has not incurred a single accident since 2001. Over the medium to long term, this is the goal for the entire Group.

Conduct measurements in the workplace and prepare work area


analyses.

Have the plant and specialized departments hold regular internal


as well as external training courses for staff.

Group-wide safety culture


measures undertaken so far are proving successful. In 2011, only 48 accidents occurred which led to lost working time, while in the previous year 79 such accidents were registered. In some 70 percent of these cases, unsafe behavior in other words, human error was the cause of injuries, while 30 percent were due to technical or or-

48

Clariant sustainability report 2011

nUMBEr OF OCCUPATIOnAL ACCIDEnTS wITH AT LEAST OnE DAyS wOrK LOST


Accidents

250 200 150 100 50 0

221

218 180 150 117 79 48

2005

2006

2007

2008

2009

2010

2011

nUMBEr OF OCCUPATIOnAL ACCIDEnTS In rELATIOn TO OUTPUT


lTAR

1.2 1.0 0.8 0.6 0.4 0.2 0

1.21

As part of collaboration with various employee representation committees, occupational safety programs are also discussed at certain locations and their implementation tracked. However as in many other cases occupational safety topics at Clariant are not a component of formal agreements with the employee representation committees. The data currently available does not allow any statements to be made concerning the percentage of employees within the total workforce who are represented in occupational safety committees.

1.12 0.92 0.78 0.68 0.45 0.28

2005

2006

2007

2008

2009

2010

2011

lTAr = lost Time Accident rate (the ratio of the number of occupational accidents where at least one days work was lost to every 200 000 hours of work)

of 2011, this program had been conducted at 53 locations out of a total of 105 production sites around the world. Further courses will follow in the coming years depending on the volume and frequency of accidents. For more information in this regard, also see pages 46 and 47.

The health of Clariants employees is checked on a regular basis. Depending on where they work, some of these check-ups may be extensive and are conducted with the goal of detecting any symptoms of illness as early as possible. some activities require special health certificates and vaccinations, and great importance is placed on proper compliance with and application of such measures.

Human resources and occupational HealtH and saFety

49

RECORdING OF EvENTS RElEvaNT TO PROCESS SaFETy IN aCCORdaNCE WITH CEFIC CRITERIa


The safety of people and the environment is the highest priority for chemical companies. One indispensable factor is an effective safety management system that can identify, assess and control risks in the production process using appropriate measures, so as to lower or even entirely avoid these risks. This management system includes methods aimed at gauging the effectiveness of the measures taken in a manner similar to those in the area of work safety. events relevant to process safety have so far been recorded from company to company and within companies in various ways. Yet to make incidents comparable with regard to type, extent and effect, and to develop the optimum prevention strategies, a system is needed that is standardized and applied in the same way everywhere. This is one prerequisite for identifying a greater need for action. Against this backdrop, Clariant, in close cooperation with the ePsC (european Process safety Centre), has actively supported the CeFIC, the european Chemical Industry Council (Conseil europen des Fdrations de lIndustrie Chimique), in the development of a simple and representative measuring system. This new system complements the processes introduced on the basis of the seveso Directive in the european Union. With the new and improved approach, events which could lead to a material or energy release are systematically recorded. In this way, the effectiveness of process and plant safety can be evaluated with the help of the resulting figures. Clariant tested the reporting of these process safety incidents (PsI) in 2010 with a pilot and rolled it out company-wide in 2011. The measuring system records unintended releases of energy or materials which exceed certain thresholds. The technical term for this is loss of primary containment (lOPC). For the purpose of comparability, the reported events are based on the work hours put in annually alongside the lost-time accidents (lTA). At Clariant, the calculated process safety event rate came out to a figure of 0.31 per 200 000 work hours in the reporting year. A comparison with companies in the european chemical industry will show in the future how this figure should be rated. The vast majority of the materials released were able to be retained with the appropriate preventer mechanisms and in production buildings. What is already known from evaluating work accidents can also be carried over to the process evaluating safety incidents: a large number of events can be traced back to human error. In future, the task will be to identify and implement sustainable measures in order to avoid such events. This will be achieved through our recording and evaluation of activities within the framework of our efforts to achieve continuous improvement. www.cefic.org/Industry-support/responsible-Caretools-SMEs/3-Plant--Process-Safety/

50

Clariant sustainability report 2011

PrODUCT sTeWArDsHIP

Clariant has developed guidelines to ensure product and production safety that are intended to minimize the impact of its business on ESH (Environment, Safety, Health). The most important goal of these activities is to protect people and the environment. To this end, the company has drawn up a comprehensive list of rules and measures within ESH management and implemented a Group-wide system of risk assessment. Employee training takes place on a regular basis, while processes, procedures and measures are continually monitored both internally and by means of external audits.

In the reporting year, there were no incidents neither misdemeanors nor criminal investigations due to violations of prevailing law or voluntary rules of conduct relating to information about the labeling of products and services.

product analysis
Clariant is firmly committed to the principle of sustainable business development, whether in production, transport and distribution, or the use of products and services. As a leader in the specialty chemicals industry, Clariant goes beyond legal requirements and participates in several voluntary sustainability programs including voluntary commitments as part of responsible Care under the responsible Global Care Charter as well as the Global Product strategy. These programs aim to continuously improve company performance in terms of safety, health, environmental protection and product quality, also with regard to sustainability. These initiatives aim to enhance the safety and environmental compatibility of products as well as to improve communication with customers and other stakeholders. Clariant regards product stewardship as an important part of its overall corporate strategy. responsibility for consumer and environmental protection in product use is given top priority. Clariants commitment and professional service within the context of its product stewardship creates significant added value for customers while ensuring that Clariant products satisfy sustainability requirements. In the course of product development and design, criteria are evaluated with regard to the safe and ecologically compatible use of a substance. Before Clariant manufactures and markets a product, it must go through a series of tests. This ensures that it can be used safely and without any danger to people or the environment throughout its entire life cycle.

product stewardsHip

51

We want to handle chemicals and our products responsibly, on all levels: together with our suppliers, in our own production facilities, and with our customers.

JOACHIM KRGER, vICE PRESIDENT CORPORATE ESHA

Clariant provides its customers with the relevant information and comprehensive advice on how to use its products safely and efficiently. Clariants expertise in product stewardship guarantees that its products comply with national and international chemical legislation at all times.

it ensures that only chemical substances that have been previously registered and analyzed in terms of their potential risks can be put into circulation within the territory covered by the eU regulation. Clariant was also involved in developing the reACH legislation with its intensive participation in trade association activities and discussions with authorities during the draft stage, and the company has prepared itself carefully for the new requirements. Thanks to its meticulous preparation, provision of resources and extensive project management, Clariant was successful in completing the extensive pre-registration of its product portfolio, followed by the registration of the respective substances in phase 1 of the registration process. reACH not only entails additional costs and personnel expenses for the registration activities, but also presents market opportunities through supplier differentiation. reACH makes a substantial contribution to further improving health and environmental protection as well as consumer protection. This allows Clariant to offer its customers greater benefits in the field of product application thanks to intensive communication and the drafting of detailed customeroriented information on product use. reACH enhances customer and supplier loyalty, which provides a further boost to sustainable corporate growth. The regulation is

product evaluation
To support product stewardship and within the context of the eU reACH regulations (registration, evaluation, Authorisation and restriction of Chemicals), Clariant is always looking for potential improvements with regard to the lifecycle phases of a product. Here, the properties of chemical substances are determined with the Intelligent Testing strategy (ITs, also see page 55-57), while simulated tests for substances and products are conducted to ensure the safety of customers and users. reACH entered into force on 1 june 2007. This regulation aims to ensure a high level of protection for both people and the environment, to improve communications when dealing with chemical products, and to maintain and enhance the competitiveness of the chemical industry in the european Union. Clariant fully supports the goals of reACH. This regulation addressing the registration, evaluation, authorization and restriction of chemicals, which is uniform throughout the eU, harmonizes and simplifies national legislation pertaining to chemicals. Above all,

also a catalyst for the development of new and better products. Clariant will take advantage of this opportunity. It ultimately also results in positive connotations for the brand, which can claim to be reACH registered. The products are then both synonymous with and symbols of comprehensive product stewardship and set themselves apart from chemicals produced in countries where standards are not as high. One of the aims of the UN Conference on environment and Development held in rio de janeiro in 1992 was to achieve global harmonization in the classification and labeling of chemicals. The Globally Harmonized system of Classification and labeling of Chemicals (GHs) laid the foundation for the international standardization of existing classification and labeling systems from various sectors such as transport as well as consumer, employee and environmental protection. GHs has now been introduced in the european Union in the form of a regulation on the classification, labeling and packaging of substances and mixtures (ClP). In compliance with this new regulation, Clariant has classified more than 2 500 substances, defined new labeling elements and reported these to the european Chemicals Agency (eCHA) for inclusion in the classification and labeling inventory that is publicly accessible online.

product inFormation
Clariant maintains ongoing contact with its customers, who are supported in their application and use of Clariant products. labo-

52

Clariant sustainability report 2011

95 %
Percentage of renewable ingredients contained in Synergen a solution developed by Clariant as an alternative to conventional agrochemical crop protection formulations.

ECOTaIN a HOlISTIC CONCEPT RaNGING FROM PROduCT dEvElOPMENT TO FINal dISPOSal


Products based on natural raw materials are steadily gaining in popularity among consumers. But are these products also sustainable? While renewable raw materials play an important role in Clariants research & development efforts, this is only one of the many environmental aspects that Clariant takes into consideration when assessing sustainability for product development. As part of these efforts, Clariants largest Business Unit, Industrial & Consumer specialties, draws on our sustainability initiative ecoTain a means of assessing and understanding the ecological, economic and social impacts of our business activities over the entire value chain. The objective of ecoTain is to protect humankind and the environment and conserve resources while simultaneously maintaining high performance and efficiency. Achieving these goals calls for a holistic approach that encompasses the entire service lifecycle of substances and products. A responsible Process is the second stage of the ecoTain concept, focusing on sustainable production, i.e. an environmentally compatible and safe process that conserves resources. The goal of this phase is to improve the efficiency of chemical reactions during production. This can be demonstrated by taking a closer look at Hostacerin sFO a 100 percent natural ingredient used in cosmetics and body care products. The product is fabricated in a singlestage chemical process at low temperatures. Not only does this lower energy consumption help reduce the products carbon footprint, but since all ingredients going into the products fabrication are fully utilized there are no byproducts or waste to contend with. Safe & Efficient Use constitutes the third stage of the ecoTain concept. This phase spotlights product advantages and benefits during processing, onward application or customer use. Products in their applied formulations should not only fulfill their intended functions, but also contribute to improving end-product performance and be entirely safe in any given application, i.e. pose no health hazard. One good example is Texcare srA 300-F a product used in laundry detergent powders as a dirt and stain remover. It is highly effective even in low concentrations and at washing temperatures of only 30C, and is neither a skin nor eye-irritant. It is thus equally helpful to both consumers and the environment: While reducing the quantity of washing powder needed, it also saves energy as well as water which ultimately means less burden on consumer wallets.

EcoTain ensures sustainable crop protection and agriculture


Sustainable Design is the first stage of the ecoTain concept and reflects the desire to enhance the sustainability of new products early on in their development phase. The aim is to develop efficient products based on safe, innocuous ingredients while maximizing use of renewable raw materials. This idea is well illustrated by synergen Gl5 a product used in crop protection formulations. Comprised of up to 95 percent of regenerative substances such as polyglycerol esters and coconut fatty acids, and exhibiting an excellent toxilogical profile, synergen Gl5 offers an environmentally compatible alternative to conventional agrochemicals that not only conserves resources, but also enhances human safety as well as crop safety.

Sustainability from development through to final disposal


Eco Integration is the fourth and final stage of the ecoTain concept, and addresses the issue of product disposal and the impacts disposal has on the environment. The first step in this phase looks to minimize waste, while the second step deals with environmentally benign recycling of waste when this cannot be avoided. This means that the environmental properties of products such as their biological degradability must also be continuously taken into account. One good example of eco integration is Clariants recycling

product stewardsHip

53

concept for aircraft de-icing agents, which enables 60 to 70 percent of de-icers deployed to be reused. This helps conserve resources and reduce procurement costs at airports. Clariant estimates that these efforts will reduce emissions of CO2 equivalents over the service
LIFECyCLE THInKInG AT THE PrODUCT LEvEL

lifecycle of de-icing agents by 2 800 tons every year. This quantity corresponds to the yearly emissions of roughly one thousand new european cars that clock up an average annual mileage of 15 000 kilometers each.

Sustainable Design From the development of innocuous and safer products, inspired by renewable feed stocks

responsible Process manufactured with responsible use of our planets resources and under safe conditions

Eco Integration contributing to the planets well-being while considering our products environmentally compatible fate.

Safe & Efficient Use we deliver innovative products for maximized application benefits and human safety,

ratories are available to deal with special problems. The services offered include comprehensive product information, particularly with regard to optimum and safe application, health hazards, waste treatment and the handling of packaging.

safety datasheets containing relevant data on substances, information about safe product handling and storage, and measures to be taken in the event of product release or fire are made available by Clariant to all those involved in the further handling of the substances.

Clariant makes information about the supplier chain available to customers through a special Internet-based reACH Dialog system (rDs). Here, each Clariant customer can find reACH-related information about purchased products on a secure and individual basis. Furthermore, the system

54

Clariant sustainability report 2011

serves to fulfill reACHs very high requirements on communications regarding the use of products. Users of Clariant products in the customer chain can go here to review their reACH-related information provided by Clariant promptly and reliably and, if necessary, modify it or expand upon it. With this, Clariant offers a future-proof communications system that illustrates the complex, highly technical use of performance products. It has met with a very positive response among customers and also complies with the recommendations of national and european associations. To ensure that Clariant products do not fall into the wrong hands and are not used, for instance, in the manufacture of chemical weapons, they are subject to stringent controls. The Factory Inspection Officer (pursuant to the United Nations Chemical Weapons Convention) and the export Control Officer ensure that factories supply Clariant products only to approved countries for the purpose of further use by civilians.

responding business process is stopped immediately and the responsible employees are informed. errors that occur systematically are addressed in projects and are also audited and remedied as part of quality management. Clariant is committed to treating all competitors, suppliers and customers fairly. As a result, during the reporting year there were no complaints regarding anticompetitive behavior or the formation of cartels or monopolies. As a general rule, the legal department and, if necessary, the Compliance Officer review documents and promotional materials as well as all communications content scheduled for publication for compliance with legal requirements (unfair competition) and conformity with the Clariant Code of Conduct. There have not been any cases in which Clariant was accused of not complying with regulations and voluntary rules of conduct in relation to advertising (including ads, sales promotion, and sponsoring). This also applies to protection of customer data; no complaints have been raised regarding breaches of customer privacy.

Clariant packs and loads substances intended for transport on the respective premises in accordance with statutory requirements, in particular those relating to hazardous goods. service providers responsible for onward transport arrangements such as Infraserv logistics GmbH at Clariants German sites are subject to the same regulations. In any case, safety always comes first. Clariant prefers to destroy defectively packaged goods on its own account rather than return such goods to the supplier. reusable packaging is utilized wherever possible with a view to minimizing the environmental impact of packaging used to supply products to customers. such packaging is returned to be refilled once it has been emptied by the customer. some other used packaging materials are also taken back and recycled systematically. The packaging used by Clariant meets both customer and statutory requirements and ensures that product quality is guaranteed. Packaging is reused or recycled wherever possible. Clariant participates in programs that promote the return of packaging for its safe incineration or disposal. All new packaging products are analyzed to determine their potential risk. In doing so, european Union regulations are the standard to follow. various internationally approved methods are used to evaluate existing products. In fiscal year 2011 Clariant carried out just under 900 000 deliveries to clients. Of these in 0.01 of cases the packaging was faulty or moist. In 0.08 percent packaging was damaged and in 0.008 percent there was leakage.

marketing
As part of its product stewardship, Clariant does not conduct any special customer satisfaction surveys. However, all business processes are monitored with the support of software that is specially configured for this purpose and conforms to all legal requirements. If a failure were to arise for example, a missing datasheet, incorrect registration, missing data, disregarded volume limits or a similar event the cor-

transport and packaging


At Clariant, raw materials and products are stored in accordance with stringent internal guidelines in force around the world with a view to minimizing the likelihood and possible impacts of a fire or uncontrolled escape of chemicals. stringent guidelines also apply to the transport of hazardous goods, with Clariant also monitoring compliance with national and international provisions.

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INTEllIGENT TESTING aNd ETHICal WORKING PRaCTICES INNOvaTIvE aPPROaCHES TO SubSTaNCE aNalySIS
Getting by in everyday life without chemicals is inconceivable today. We encounter chemistry in colored jeans, in televisions and telephones, in car dashboards and steering wheels, in laundry detergents, leather goods and in paper: Chemical substances are processed into most products we use today. This is why chemicals used in products we come in contact with are subject to stringent and sometimes complex inspection and testing procedures regulated and required by law. experimental testing on animals cannot always be avoided. At the same time, the european Chemicals Agency (eCHA) ensures that animal testing is minimized wherever possible.
BACKGrOUnD The manufacture, processing and use of chemical substances or contact with these substances can pose risks for humans and the environment. This is why the european Union (eU) has required testing since 2007 of all chemical substances produced and traded within the eU to determine what effects such substances can have and the impact such effects may have on humans. All told, these rulings affect well above 50 000 substances. Numerous individual tests are needed on each individual substance in order to be able to judge their effects reliably and meaningfully. such testing investigates whether substances lead to localised reactions (skin rashes, for example), toxic reactions (such as poisoning or damage to internal organs) or to sensitizing reactions (such as a physical reaction only after repeated contact with a particular substance). experiments on animals are almost always necessary to make any assertions about the active profile of a substance. The european Chemicals Agency (eCHA), an eU regulatory authority based in Helsinki, coordinates efforts to document and evaluate all chemical substances based on tests provided to it and to decide on their continued approval. To this end, the agency requires robust and verifiable evidence from the chemical industry. Investigation methods must be fully traceable. The effects and interactions of a good number of substances are already well known from knowledge and experience gained over the past decades, particularly ones which have already been produced in large quantities and been the subject of multiple investigations. In such cases, further testing is not required. Already available findings on substances also often allow transfer of test results to other, comparable substances without the other products having to be tested anew. In order to determine this, companies in the chemical industry must exchange information among themselves. eCHA welcomes this approach as a way of avoiding animal testing whenever possible.

Ethical practices and innovative research


Clariant goes one step further, having early on launched efforts to find a means of avoiding animal testing if possible. Clariant developed its Intelligent Testing strategy (ITs) for this very purpose. ethical reasons are the strongest arguments for this complex process. Whats more, animal testing in the long run is a time- and cost-intensive undertaking. And ultimately, such tests merely tell us that something has happened, not why it happened. In this regard, Clariant is not content with the research and development of innovative and improved products but instead uses ITs to probe the details and get to the bottom of things. ITs enables researchers not only to reproduce and verifiably document the effects of chemical substances, it also enables them to obtain ideas and information on improvements or particularly desirable product compositions. In the short term, however, as is often the case with high-performance methods, ITs can result in considerably higher costs and forgoing traditional testing does not necessarily make sense from the economic viewpoint. Clariant is nevertheless intent on vigorously pursuing this strategy, for over time the application of know-how acquired through ITs research leads to greater cost-effectiveness and profitability.

Comprehensive approach
Clariants Intelligent Testing strategy (ITs) comprises a number of phases. These first include evaluating all internationally available data and reference materials on a given substance. Then, findings and knowledge gained from comparable tests, substances and structures are transferred and applied. Consequentially, an essential part of these efforts is the grouping of substances from which comparable effects on people or the environment can be expected because of
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continued from page 55

similar chemical structures or physical properties. This enables one probe in each of the various disciplines to yield findings that are both meaningful and applicable to multiple substances. All investigative efforts in this phase are conducted on paper or on the computer.

Establishing ITS as standard practice


experimental testing always involves two questions. First, how do the bodys natural defense and immune systems react to the substance, whether through exposure to the skin, ingestion or finally within the bloodstream? Unpleasant or even dangerous allergic defense reactions can ensue, even if the substance has no damaging effect on the structures and processes of the human body. And secondly, what is the substance actually doing to the body? In other words, how does the substance affect bodily processes, enzymes, proteins and cell structures? In order to be able to provide reliable answers to these questions, Clariant checks through virtually every conceivable possible application and use: What could happen during production, or at the endcustomer? How and in which amounts can a person come into contact with the substance? The scope of considerations thus envelops the entire life cycle of the a product. Ultimately, exact description and evaluation of the vast number of chemical substances is only feasible by pooling our knowledge of the individual components that make up substances, their possible compounds, and their interactions with other components and substances. These efforts are supplemented by prioritizing, focusing resources to investigate those substances which probably pose the highest hazard potential and which people are most likely to come in contact with. The scope of investigation includes simulating the entire path a product or substance could take over their complete life cycle. In the long term, this new approach and the knowledge it generates are intended not only to cut costs but also to largely eliminate the need for animal testing. Clariant is also training in-house staff as in silico experts to facilitate development of ITs as swiftly and effectively as possible. The Intelligent Testing strategy combines optimized use of limited (research) resources with enhanced innovation potential and effective safeguarding of animal welfare. Clariant will continue striving to develop this strategy.

Intelligent Testing Strategy


Conduct a comprehensive, in-depth and worldwide search for all available reference material on the effects of chemical substances, not only in the Clariant Groups own archives, but also in all databases, libraries and scientific archives accessible to the general public, as well as from personal information-sharing among researchers.

Define substance groups that compile substances of like structures, properties and (expected) effects.

Fill in data and knowledge gaps with the help of logical and rational considerations: analogous conclusions, the transfer of findings and computer-based simulation of cause-effect relationships. Any further testing can also be ruled out at this point in the process if test results yield no new scientific knowledge or if such testing proves unfeasible from a technical standpoint within a reasonable scope of effort. This approach is made possible because Clariant can model and simulate material properties and effects realistically based on all available data (in silico). Only when this approach no longer bears fruit do researchers turn to in chemico studies in test tubes or Petri dishes using in vitro cell cultures, for example. And only when every other possible means has been ruled out is a study on a living organism (in vivo) unavoidable to fulfill legal requirements. www.echa.europa.eu

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AnALyzInG PIGMEnTS USInG ITS Pigments, too, are subject to eU chemical testing regulations. Pigments are coloring substances that in contrast to dyes are poorly soluble, and are incorporated into things such as paints and plastics. Clariants Intelligent Testing strategy (ITs) eliminates the need for animal experiments within the scope of risk assessment as well as enables cost-savings. Azo pigments are organic pigments containing one or more azo compounds. One of the subgroups comprises the benzimidazolon pigments developed by the former Hoechst AG and patented in 1960. These pigments are characterized by their extraordinary lightfastness, and are among the most long-lasting organic pigments. One of these is the Colour Index (C.I.) pigment Orange 36. Individual toxicology testing of such pigments, i.e. assessing their effects on the human organism given any sort of contact, costs about eUr 725 000. ITs now pools the pigment Orange 36 and other substances of comparable structures in a single test group (acetolone), which in the present example included a further eight substances. Test results are already available in part for these substances in certain disciplines, results which in many cases can be transferred to other materials for which tests have not yet been conducted for these disciplines. substantial costsavings have been achieved thanks to this bundling and transfer of data. running all nine substances through the complete testing scenario individually would have required expenditures totaling some eUr 6.5 million. By applying Clariants ITs approach, the overall price tag came to less than 10 percent of that figure. In many areas, this approach can be applied to even larger groups of substances, translating into an immense potential for costs-savings. In such cases, the initial investment in ITs pays off on a monumental scale.

Azo group chemical formula

r1

N=N

r2

customer protection
In the reporting year, there were no reports of incidents neither misdemeanors nor criminal investigations due to violations

of regulations or voluntary codes of conduct with regard to the impact of products and services on health or safety.

In the reporting year, there were no reports of cases where Clariant was accused of violating regulations and voluntary codes of conduct in relation to customer privacy. In addition, there were no complaints about violating the protection of customer information.

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ClArIANT AND sOCIeTY

Clariant believes it is important for the company to take responsibility for public welfare and the common good wherever the Group does business. In the end, our goal is to strengthen the positive impact on all other persons connected with the company and to largely eliminate any negative effects. This need not conflict with the requirement that shareholders receive a risk-appropriate return on their invested capital.

Clariant does not tolerate discrimination on the grounds of race, ethnic origin, gender, religion, beliefs, disability, age or sexual orientation. None of Clariants subsidiaries has to date reported any violation of these basic principles. some of Clariants investment agreements already include contracts with clauses regarding human rights. New investment agreements are checked for this aspect. suppliers and contractual partners are obliged to respect human rights and are also subject to checks in this regard. This requirement on the part of Clariant is mirrored in the general terms and conditions of business of Clariants corresponding contracts, which explicitly outline the issues of environmental protection, process safety, accident prevention, sustainability aspects and occupational safety. Delivered goods and services are evaluated by Clariant using a Complaint management Tool. Once the

respect For Human rigHts


Clariant naturally respects human rights and opposes any form of forced, mandated or child labor. To date, Clariant has not been able to identify any such business practices among its key suppliers. Freedom to form trade unions is explicitly respected, while the right to strike and the right to collective bargaining are also supported. respect for

employees and business partners in this context is just as important as a distinct culture of open communication. Clariant is fully compliant with the objectives of the International labour Organization (IlO). This includes strict compliance with regulations concerning freedom of association. www.ilo.org

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procurement process has been completed, supplier performance is reviewed and evaluated with the supplier evaluation system. Clariant respects the freedom to form trade unions and supports the right to strike and the right to collective bargaining. respect for employees and business partners in this context are just as important as a distinct culture of open communication. Clariant is not aware of any cases where the freedom to form trade unions or the right to collective bargaining was significantly hindered or even violated, even among its suppliers. No Clariant unit found it necessary to place their business activities under special scrutiny with regard to violations of human rights; or to re-evaluate their business relationships due to this. Clariant is not aware of any related incidents. In addition, at no time were the rights of native peoples violated. To date, Clariant has not had a Group-wide uniform notification and reporting system that handles complaints and grievances regarding violations of human rights. However, plans were initiated in 2011 to set up such a global system. To date, only locations in south Africa, malaysia and Australia use a formal recording system for grievances dealing with human rights violations, and this also only for complaints by employees. In 2011, only the location in egypt reported a complaint by a third party concerning violations of human rights, and this has already been resolved. Otherwise no further incidents have been identified.

Annual scholarships for students in Indonesia.

corporate citizensHip
Clariant focuses its efforts in pursuit of sustainability not just on lone flagship projects, rather it is pro-actively engaged as a company for the common good everywhere the Group operates. In all its activities, Clariant is committed to upholding corporate responsibility. Selected Clariant CSr projects worldwide Asia In China, Clariant has participated in a series of events organized by the east China University of science and Technology (eCUsT) and the Association of International Chemical manufacturers (AICm) to celebrate the International Year of Chemistry 2011 (IYC2011). The theme was Chemistry: our life, our future, where young peoples interest in chemistry was heightened through demonstrations on how the chemical industry can contribute to the well-being of society in different ways. Clariant Greater China won the 2011 Good enterprise Fulfill-

ing Corporate social responsibility Award. earlier in the year, Clariant Greater China won two other awards, the Outstanding Contribution Award for mNC from the China Chemical Industry News and the 2010 multinational Corporation in China Contribution Award from China enterprise News. Clariant supports TUm Asia students in Singapore via sponsorship programs, and for the first time, in 2011, granted a full scholarship for the 18-month master of science in Industrial Chemistry program, which is jointly run by Technische Universitt mnchen (TUm) and the National University of singapore (NUs). Clariant in Indonesia completed its 2011 responsible Care program with a series of community programs focused on the education, safety, health and the environment of people living in the vicinity of its manufacturing plant in Tangerang. These included the running of malnutrition prevention programs in the Tangerang area.

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Annual scholarships were granted in collaboration with the sampoerna Foundation to 32 underprivileged and gifted children for the 2011/2012 academic year. so far, via this Foundation, Clariant Indonesia has distributed 134 scholarships to students at all educational levels. There is also an internship program for approximately 150 high school and university students each year. An environmental cleanliness movement has been set up, and in 2011 its activities included the planting of 500 trees in public spaces. residents around the plant received firefighting training and various donations were made, i.e., for the construction of mosques and conference halls. events and major holidays were also supported. In Thailand, Clariant sponsored student trainees in the companys lab, production and safety sections. students also used Clariants equipment for their research projects at Burapa University in Bang saen and Chulalongkorn University in Bangkok. Clariant also purchased household waste water tanks and donated surplus furniture to local schools in PhanThong. www.sampoernafoundation.org

Clariants Indian sites at roha, Kolshet, Kanchipuram and Cuddalore made donations to various schools, both in money and in kind, such as books, lunch plates and building materials as well as awards for top students. Other donations went to various social and medical services and charities, as well as the local temples, where building material for construction and renovation work was sponsored by Clariant. employees donated blood at the local hospital. Clariant also regularly supplied a home for children with special needs. The company also offered career guidance and an educational tour for 10th grade students and organized the planting of trees. Clariant Pakistan helped victims of the 2010 massive flood in Pakistan. Approximately one fifth of Pakistans total land area was under water, affecting around 20 million people, and more than two thousand died. The flood also devastated the village of Chakar Khan, home of about 500 inhabitants, just 2.5 kilometers away from the factory in jamshoro. Clariant Pakistan arranged for the provision of clean water and shelter for the homeless: A new water filtration facility was installed and nine houses were built for the most affected families. The houses were handed over in April 2011.

Clariant in Japan donated 10 million (more than 90 000 euros) to the east japan earthquake relief effort, double the originally planned 5 million donation in view of the level of damages and the number of casualties caused by the tsunami and earthquake. north America Helping the needy is a longstanding tradition at Clariant. staff members working together on the Clariant volunteers Council at the companys Us headquarters in Charlotte, North Carolina are involved in a number of local projects. As part of the meat, Bread and Cheese relief program, for example, Clariant employees produce thousands of sandwiches for the poor and homeless. LATAM At the beginning of 2010, Clariant in Brazil decided to sponsor a social project at a school in the neighborhood of the suzano production plant (Brazil). This project has been developed in partnership with the Bachiana Foundation which was created and is administered by the famous Brazilian conductor joo Carlos martins. In the course of this project, more than one hundred children

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regular visits of students from schools, technical schools and universities to production plants provide young students with professional orientation, and Clariant is recognized as a good employer. Clariant suzano has also implemented environmental education activities with the local primary and secondary schools. Clariant has developed a strong partnership with fire departments in the cities where its production plants are located, and supports fire department teams in several relevant activities. For example, Clariant sponsored an educational program about the fire department in suzano and donated a fire engine to a Peruvian fire department, and local fire departments participate in emergency drills in all production plants. Europe Clariant in Spain has an agreement with the CrAm Foundation (recovery centre for marine animals), donates to charities fighting cancer and collaborates with the red Cross for blood donations. The company sponsors the Prat football team as well as several employee initiatives (i.e. the football team in Prat, cycling teams in Prat and Castellbisbal, local fishing tournaments). Childrens parties are organized at all sites, with activities and gifts for the children of employees at Christmas. Clariant also collaborates with special employment centres for the integration of disabled people and with the Adeco Foundation in sports for the disabled.

music project for children in Brazil.

have been attending classes of music theory, violin, cello, flute and percussion instruments. The initiative has also impacted their families, their classmates and the school community in a very positive way. In all its production sites in Brazil, Clariant has established a Community Council with the participation of local community representatives, based on the responsible Care principle. Community Council activities include sponsorship of cultural projects and events in schools and provide an interface with local government and institutions. Due to the worldwide celebration of IYC in 2011, Clariant in Brazil was one of the sponsors of an important project developed by Abiquim (Brazilian Chemical Company Association). This project covered several activities during the year, such as an exhibition about chemistry in day-to-day life in

the University of so Paulo (open to the general public and schools), the production of a booklet about Chemistry in day-to-day life for young students and various social media activities. Clariant has been a sponsor of many cultural projects (using incentive laws), such as Classical music presentations during the year, the presentation of a Brazilian popular music group in suzano, as well as with the organization of a workshop for young students in the city and the presentation of a theatrical play in suzano and so Paulo. Clariant also organized workshops with Art schools.

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Clariants business activities have no perceptible negative impact on the local community. The companys high safety standards, efforts to support the local economy and community along with an intensive dialog with local interest groups have so far prevented any negative impact on the local community due to Clariants business activities.

economic commitment
Fest der molekle 2011 at Basel University.

Clariant in Germany donated to various social organizations with a particular focus on youth in 2011. The company is a member of Wissensfabrik and actively participates in general education support and mINT orientation programs at nurserys and primary schools. Clariant in Switzerland maintains a lively exchange of ideas with community representatives in muttenz and neighboring municipalities. Dialogue and cooperation with schools and universities is a key focal point. Clariant organizes an annual Gender Day where boys and girls can accompany their mothers, fathers or other relatives to their workplace. In 2011, students of the universities of Freiburg and Heidelberg, Germany, mulhouse, France, and st. Gallen, switzerland, visited the Infrapark site. Clariant also established a regular exchange program with Fachhochschule Nordwestschweiz in muttenz.

eFFects on local economies


As a manufacturer of specialty chemicals, Clariant does not do business with private individuals or with what are known as end customers, but rather only with industrial customers around the world. For this reason is not possible for Clariant to determine any local economic impact the company has on the markets in the (immediate) vicinity of its operating facilities. Clariants business, however, can sometimes have considerable indirect impact on the local economy in that wages for Clariant employees boost purchasing power in the region. Companies in the immediate vicinity also profit from the demand from Clariants operating facilities for products and services such as foodstuffs, consumer goods and transport services.

Clariant does not support the positions of any political parties. Clariant is involved in industrial policy either through trade associations or through policy and its neighbors. Clariant has not received any significant public funding. The eC reACH regulations (registration, evaluation, Authorisation and restriction of Chemicals) took effect on june 1, 2007. Clariant was also involved in developing the reACH legislation with its intensive participation in trade association activities and discussions with authorities during the draft stage, and the company has prepared itself carefully for the new requirements. Clariant is a member of The european Chemical Industry Council (Cefic) and is involved in promoting sustainability under the auspices of the International Chamber of Commerce. Financial assistance from political parties, politicians and any associated organizations have been neither requested by the foreign subsidiaries, nor is Clariant aware of any such instances. www.cefic.org www.reach-info.de

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anti-corruption policy
Any risks arising from corruption are investigated as part of Clariants ongoing internal audits. As a result of this review into the risks of corruption and as a precautionary measure, several contracts with business partners were terminated, not extended or modified accordingly. On the basis of the results of these investigaions and on the UK Bribery Act that came into force in 2011, Clariant will conduct a corruption risk analysis with the assistance of outside help. One or two business units will take part in a pilot project, that will be initiated in 2012. At the Group level, no disciplinary actions were taken against employees for corruption.

Fines
Clariant is committed to treating all competitors, suppliers and customers fairly. As a result, during the reporting year there were no complaints regarding anticompetitive behavior or the formation of cartels or monopolies. Documents intended for publication and advertising are generally reviewed by the legal department and, if necessary, by the Compliance Officer. They are reviewed for compliance with legal regulations (pertaining to unfair competition, for example) and for conformity with the Clariant Code of Conduct. There have not been any cases in which Clariant was accused of not complying with regulations and voluntary rules of conduct in relation to advertising (including ads, sales promotion, and sponsoring). The same holds true on the one hand with regard to the protection of customer data (here again, no complaints regarding breaches of cus-

tomer privacy are known), and on the other hand with regard to fines or non-monetary sanctions due to violations of legal requirements in the environmental sector. Finally, Clariant is not aware of any cases where legal requirements were violated with regard to the supply and use of products and services. However, during the reporting year, one employee went on trial after being accused of four instances of customs violations. The court issued acquittals in all four instances. Clariant does not have any significant legal cases pending; for general provisions in this regard please see page 136 of the 2011 annual report.

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rePOrTING FrAmeWOrK AND eXPlANATOrY NOTes


The period covered by this Sustainability report is from January 1 through December 31, 2011, and is thus identical to Clariants fiscal year. The last sustainability information about Clariant was published in the 2010 Sustainability report, which appeared in March 2011. At this time, Clariants Sustainability report is published once a year within the quarter following the reporting year. In order to provide our shareholders and other stakeholders with transparent information on our responsible corporate management efforts, we follow the reporting guidelines of the Global reporting Initiative (GrI). GrI has reviewed the Clariant AG sustainability report for adherence to its G3 sustainability reporting guidelines. It has confirmed the proper preparation of the entire report for Application level A. This is Clariant AGs second separate sustainability report. In the 2011 reporting year its content was verified for the first time by the swiss Association for Quality and management systems (sQs), which is headquartered in Zollikofen, switzerland. Additional information can be found in the Internet at www.clariant.com.

Clariant records when possible and at reasonable expense all factors, indicators and relationships regarding sustainability in the spirit of the Global reporting Initiative (GrI). Further, Clariant collects information in particular about sustainable operations in the areas of innovation and research as well as product stewardship. For environmental issues, Clariant measures relevant information about emissions, energy consumption,

use of materials, water consumption and wastewater as well as waste products. Human resources issues are covered in increasingly comprehensive and systematic programs. stockholders are informed regularly about Clariants activities and the course of business in the most effective and transparent manner. stakeholders are based on Clariants corresponding local activities.

reporting Framework 65 and explanatory notes

This Clariant sustainability report covers all Group companies and sites as well as all pertinent subject areas. A comprehensive overview can be found on pages 154 to 157 of the Clariant 2011 Annual report. This report therefore covers all reported topics for the entire Group with the exception of sd Chemie AG (except where indicated otherwise). There are no limitations. Information and facts relevant to sustainability were gathered from all locations for evaluation and compilation. Information on suppliers originates from supplier audits. Information on sales has been analyzed insofar as it was made available by the customer. Otherwise this sustainability report contains no deliberate reporting limitations. A great deal of care and attention was invested in the preparation of this report in which Clariant wishes to give a balanced picture of its efforts toward sustainability.

environmental issues and environmental safety in particular are a top priority at Clariant. All safety and environment-related data and information have therefore been carefully and comprehensively collated and recorded for many years. Clariant reports in depth on this area in the sustainability report. This underlines the targets set for 2020 (see pages 18 and 19). As a result of a fundamental restructuring program, the number of employees decreased by around 4 800 or approximately one quarter of the total workforce between 2005 and 2010. Following the restructuring, systematic recording of personnel structures in data and reporting systems was established. In future, Clariant will provide detailed reports on human resources as well as training and social programs. This is already done with a view to product responsibility, which is essential for a manufacturer of specialty chemicals. Considerable importance is also attached to Clariants numerous corporate citizenship and social activities in this report, which are initiated by the Groups locations worldwide. All corresponding key areas are defined in Clariants sustainability Policy (see pages 5 and 6). Clariant ensures ongoing and prompt communications with key stakeholders in the form relevant for each target group. stakeholders near the various locations or near

central company headquarters are included in the work of the company through various activities such as surveys, neighborhood forums, open door events, industrial park discussions, cooperative arrangements between plant management and employee representation committees, written communications and information on the Internet. events are generally held on a quarterly or semiannual basis. meetings with individual stakeholders such as those located near local facilities or with shareholders were held before this report was prepared. Clariants safety management involves performing the relevant risk analyses on all processes. This includes the intensive analysis of all plants, equipment and machinery for possible malfunctions, faults or operating errors. The inspections are performed by the respective site in collaboration with the esH officers and, where appropriate, with representatives from other specialist departments. The entire manufacturing process is analyzed in detail, including the

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receipt of raw materials and initial use of all plants, equipment and machinery. The data collected and published in this report were measured exactly and documented electronically, doing so uniformly, systematically and with great care. estimates are indicated as such in the report. Plants currently in operation are monitored constantly and adjusted to target levels where required. The analyses are documented and identify potential risks and hazards as well as specify technical and organizational preventive measures. The safety level of processes and plants is inspected regularly through internal audits. All operational incidents are analyzed so as to pinpoint their causes and put in place appropriate measures to prevent them from happening again. The responsible process safety experts are involved in this procedure in order to provide a comprehensive safety assessment of events. Operational incidents are extremely rare at Clariant. This is thanks to the sustained and ongoing efforts of all those involved, in particular of plant managers, plant engineers and safety experts. employees are informed of the risks associated with their work with regard to health and safety issues. They receive regular training in the safe handling of chemicals and in

the use of their personal protective equipment. Workplaces that involve the handling of hazardous substances are subject to systematic monitoring. systematic analysis of material balances and power consumption forms the basis for optimizing chemical processes. The ecological impact and potential for risk to which man and the environment are exposed are also investigated. each site captures a range of relevant environmental key indicators on a regular basis. Clariant observes and analyzes all areas that could have a negative impact on the environment and where resources could be used more efficiently. These include: Consumption of raw materials in relation to the respective manufactured products Handling of hazardous substances energy and water consumption Polluted effluents emission of air pollutants Waste for disposal Noise emissions, residual waste and soil contamination Accidents, incidents and complaints by local residents Potential environmental impacts of planned activities The acquisition of sd-Chemie AG was completed effective 1 january 2012. Previous reporting by sd-Chemie about sustainability was done using a different method-

ology than the one used at Clariant. Both methods must now be harmonized in order to make meaningful, reasonable statements. For these reasons, sd-Chemie can be included in Clariants sustainability report for the first time in 2012. In this regard, also see page 3 as well as pages 36-41 in the Annual report 2011. Beyond that, there were no changes in shareholdings or cooperations that warrant mentioning so that the comparability of the reporting period of this sustainability report is not impaired. Clariant has not changed its methodology with regards to data collection and research or the method of presenting the information compared to earlier sustainability reports. In addition, the scope of reporting has remained unchanged both qualitatively and quantitatively. As a result, this report can be compared to previous Clariant publications dealing with sustainability without any limitations or modifications.

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GrI CONTeNT INDeX

Dimension 1. 1.1. 1.2. Strategy and Goals Foreword from the CeO Key sustainability implications, risks and opportunities 2. 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.10. 3. 3.1. 3.2. 3.3. Organizational Profile Name of the organization Primary brands, products and services Operational structure of the organization (divisions, factories, subsidiaries) location of organizations headquarters Number of countries where the organization operates Nature of ownership and legal form markets served scale of the organization (number of employees, net sales, total capitalization) significant changes during the reporting period regarding size, structure or ownership Awards received in the reporting period Report Profile reporting period Date of most recent previous report reporting cycle

Page 2, 3 7, 8, 9

Dimension 3.4. 3.5. 3.6. 3.7. 3.8. Contact point for questions regarding the report or its contents Process for defining report content report scope and boundary specific limitations on the scope or boundary of the report joint ventures, subsidiaries, outsourced operations 3.9. 3.10. 3.11. Basis for calculating and reporting data Changes to the company compared to previous reports Changes to the information structure compared to previous reports 3.12. 3.13. 4. Table identifying the location of the standard Disclosures in the report external validation Corporate Governance Governance structure of the organization Independence of the Chairman of the supervisory Board Controlling body shareholder and employee recommendations remuneration policy Avoidance of conflicts of interest

Page 72 65 65 65 16, 66 65, 66 65 65 67, 68, 69 70

10 11, 13 13-15 72 15 16 12, 13, 15 11 10, 11, 16 21 4.1. 4.2. 4.3. 4.4. 4.5. 64 64 64 4.6.

16, 17 16, 17 17 19 19 19, 20

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Dimension 4.7. 4.8. 4.9. 4.10. 4.11. 4.12. 4.13. 4.14. 4.15. 4.16. 4.17. 5. expertise of the management committees regarding sustainability mission statements and corporate codes monitoring sustainability performance Assessment of the executive Committee Implementation of the precautionary principle support for external initiatives membership of associations/interest groups engagement of stakeholder groups selection of stakeholders Approaches for stakeholder dialogue Position on stakeholder concerns Management approach and Performance Indicators management approach Details regarding environmental management Details regarding personnel management Details regarding human rights Details regarding special-interest groups Details regarding product stewardship Economic Performance Indicators eC1 eC2 eC3 eC4 eC5 eC6 eC7 eC8 eC9 economic value generated and distributed Financial implications, risks and opportunities due to climate change Coverage of the defined benefit plan obligations Financial assistance received from the government Wages and minimum wage Corporate policy concerning local suppliers Procedures for local hiring Indirect economic impact Ecological Performance Indicators eN1 eN2 eN3 eN4 eN5 eN6 materials used recycled materials used Direct energy consumption Indirect energy consumption energy saved Initiatives to provide energy-efficient products

Page 17, 19 20, 21 20, 21 19 8, 21 4, 7 62 21 21 21 21

Dimension eN7 eN8 eN9 eN10 eN11 eN12 eN13 eN14 eN15 eN16 eN17 eN18 eN19 eN20 Initiatives to reduce indirect energy consumption Total water withdrawal Water sources recycled water used Properties in protected areas or abutting protected areas Impact of activities on biodiversity in protected areas Natural habitats protected or restored management strategies regarding the impact on biodiversity Affected species on the IUCN red list and on national lists Greenhouse gas emissions Other greenhouse gas emissions Initiatives to reduce greenhouse gas emissions emissions of ozone-depleting substances by weight NOx, sOx, and other significant air emissions Total water discharge Total weight of waste by type and disposal method Total number and volume of significant spills Hazardous waste Waste water and biodiversity environmental impacts of products and services Packaging material significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations eN29 eN30 environmental impacts of transporting products Outlays and investments for environmental protection Employment labor Practices & decent Work lA1 lA2 lA3 lA4 lA5 lA6 Total workforce employee turnover Benefits Notice periods regarding significant operational changes employees in committees

Page 24, 25 27, 30 27, 30 30 36 36 36 36 36 31, 32 31, 33 32 32 32 30, 31 33 30 30, 36 31, 36 51 54, 57 63 37 37

7, 8 8, 9, 22 8, 38, 44 9, 58, 59 21, 64 9, 50

eN21 eN22 eN23 eN24 eN25 eN26 eN27 eN28

11, 12 7, 11 12 10 39 12, 58, 59 41 11

38, 39, 40 39 41 44 48

Infrastructure investments and services for public benefit 59, 60, 61

employee compensation under collective bargaining agreements 41

22, 23 23, 33, 36 26, 27 27 24, 25, 26 27, 52, 53

69

Dimension lA7 lA8 lA9 lA10 lA11 lA12 lA13 lA14 rates of injury, occupational diseases, lost days, and work-related fatalities risk control and programs regarding serious diseases Health and safety topics Hours of training Advanced education programs Performance reviews and staff career planning Composition of governance bodies and breakdown of employees ratio of base wages for women vs. men Human Rights Indicators/business Practices Hr1 Hr2 Hr3 Hr4 Hr5 Hr6 Hr7 Hr8 Hr9 Hr10 Hr11 Investment agreements that include human rights clauses/ have undergone human rights screening screening of suppliers and contractors on human rights Training of employees in human rights aspects Total number of incidents of discrimination and actions taken risk to right to exercise freedom of association and collective bargaining risk of incidents of child labor risk of incidents of forced or compulsory labor Proportion of employees trained in human rights issues Number of incidents where the rights of native people were violated Business procedures suspected of violating human rights Complaints and grievances regarding human rights violations

Page 45, 48

Dimension Society/Social Indicators sO1 Programs and practices regarding the impacts of operations on communities sO2 sO3 sO4 sO5 sO6 Business units analyzed for corruption employee training in anti-corruption policies and procedures Actions taken in response to incidents of corruption Public policy positions and participation in public policy development and lobbying Contributions to politicians, political parties and related institutions sO7 Total number of legal actions for anti-competitive behavior, anti-trust and monopoly practices monetary value of significant fines Product Responsibility Indicators Pr1 Pr2 Pr3 Impacts of products violation of regulations and codes of conduct related to product guidelines Information on products and services violations of regulations concerning product labeling surveys of customer satisfaction Programs for adherence to competition law Non-compliance with advertising and competition law Total number of substantiated complaints regarding breaches of customer privacy Pr9 monetary value of significant fines for non-compliance with laws and regulations

Page 59-62 63 45 63 61 62 20 63

48 46, 47 44, 45 44 41 19, 40 40

58 58 44 20 59 58, 59 58, 59 45, 59 59 59 59

sO8

50, 51 57 51, 53 50 54 54 54 54 63

Pr4 Pr5 Pr6 Pr7 Pr8

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Clariant sustainability report 2011

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Clariant sustainability report 2011

PUBlICATION DeTAIls

publisHer
Clariant International ltd, muttenz

website
www.clariant.com

concept and editorial oFFice


GFD Finanzkommunikation, Frankfurt

contact
Contacts at Clariant for sustainability issues: Corporate Communications jochen Dubiel Tel. +41 61 469 64 97 Investor relations siegfried schwirzer Tel. +41 61 469 67 49 Inquiries by e-mail to sustainability@clariant.com

ordering address
Orders may be placed on the Clariant website or sent in writing to: Clariant International ltd rothausstrasse 61 4132 muttenz switzerland Product and service marks protected by Clariant in many countries 2011 Clariant International ltd, rothausstrasse 61, 4132 muttenz, switzerland

design, grapHics and layout


Kuhn, Kammann & Kuhn GmbH, Cologne

cover pHoto
jo rttger, Hamburg

printing
Neidhart + schn, Zurich

SC2012031306

www.clariant.com Clariant International Ltd Rothausstrasse 61 4132 Muttenz Switzerland Clariant International Ltd, 2012

SAP-Nr. 1100244