In modern concern, sustainability has become of great importance when finding a company ‘s strategy.A AkzoNobel, a company that produces chemicals, pigment, paper and mush, is good cognizant of this development and has built its concern theoretical account around it. This instance survey aimed to analyse and reexamine AkzoNobel ‘s environmental- and sustainability public presentation by researching the company ‘s web page every bit good as other critical resources. The direction of the company was analyzed, along with the tools, methods and prosodies that are used to make set aims. Furthermore, the environmental- and sustainability policy was related to the ISO14001 demands. It was determined that, although AkzoNobel puts in important attempt to include environmental facets in its long term ends, it is clear that their sustainability docket is a tool for hiking their repute to outcompete their rivals.
Table of Content
Table of Content 3
Environmental Management 4
Executive organic structure 5
Driving forces 5
Objectives/Comparison with Sweden 5
Environmental Policy 7
Sustainable systems 7
Tools, methods & A ; prosodies 8
Eco-premium merchandises 8
Environmental Assessment Tools 9
Product stewardship 9
Pull offing scarce resources 9
ISO14001 and AkzoNobel 9
Suppliers & A ; sustainability 11
Supplier visit 11
Vendor conformity missive 12
Key supplier direction plan 12
Sustainability focus countries 12
Climate alteration & A ; AKZO Nobel 12
The Future 13
AkzoNobel is the largest planetary pigment and surfacing maker in the universe and a prima manufacturer of forte chemicals, mush and paper. It is a company of approximately 57,000 employees that are situated in more than 80 states. The company ‘s motto is “ Tomorrow ‘s reply today ” . In other words, their scheme is to bring forth merchandises that are far more advanced compared to their competition. With today ‘s concern about environmental issues, this competitory border comes with bring forthing merchandises that are deemed sustainable. Therefore, the head of AkzoNobel ‘s docket, it can be said that sustainability is the cardinal word in AkzoNobel ‘s concern.
The purpose of this study is to reexamine the environmental and sustainability direction public presentation of AkzoNobel.
The aims of this study are to:
Give a short description of AkzoNobel ‘s activities and to look into their executive organic structure ;
Analyze the drive forces behind the environmental direction public presentation of the company ;
Specify the most important environmental facets of AkzoNobel and associate them to Sweden ‘s Environmental Objectives ;
Critically analyze the environmental/sustainability policy ;
Identify and analyze the different environmental and sustainability direction tools, methods and prosodies ;
Provide AkzoNobel ‘s place on planetary heating ;
Describe AkzoNobel ‘s provider and seller policy ;
Examine their concern scheme in relation to concern chance ;
Judge their existent sustainability public presentation ; and
Remark on outside unfavorable judgment of the company.
When a company sets its ends towards sustainability, it is frequently necessary to wholly make over the manner in which the company is managed. In order to successfully better negative societal and environmental impacts, it is indispensable for the company to incorporate these factors into every twenty-four hours determination devising ( Epstein, 2008 ) . AkzoNobel ‘s direction squad has claimed to hold done this by the naming a direction squad that has sustainability at its extreme precedence.
Executive organic structure
AkzoNobel has established an executive commission ( ExCo ) which is composed of five members of the board of direction and four leaders with functional expertness. This agreement allows concern and map to be taken every bit into history while pull offing the company. The maps that are now stand foring the ExCo are: HR & A ; Organizational Development, Research, Development & A ; Innovation, LegalA and Supply Chain/Sourcing. The ExCO portions powers and duty for pull offing the company under the chairmanship of the CEO, Hans Wijer. ( AkzoNobel, 2011c )
AkzoNobel besides has a particular Sustainable Development Group. This squad is composed of 13 persons with background surveies runing from chemical science to economic sciences and from environmental scientific disciplines to policy and direction. ( AkzoNobel, 2011g )
In 2008, AkzoNobel put in topographic point a scheme with a sustainable docket. Their specific sustainability aims were to:
Remain in the top three in the Dow Jones Sustainability Indexes ;
Reduce the entire reportable rate of hurts to 2.0 per million working hours by 2015 ; and
Deliver a measure alteration in people development, in portion through well bettering the diverseness in the company. ( AkzoNobel, 2011e )
The first point connects the company ‘s concern side and its environmental aims together. Investors are progressively concentrating on puting in companies that set industry-wide best patterns with respect to sustainability. Sustainability has become attractive to investors because it aims to increase long-run stockholder value. Sustainability leaders are progressively expected to demo superior public presentation and favourable risk/return profile ( Dow Jones Sustainability Indexes, 2011 ) . Consequently, a company with a sustainable docket is considered a good investing. AkzoNobel is good cognizant of this as can be seen in their concern rules when they province: “ We need to do sustainable net incomes if our concern is to boom ” ( AkzoNobel, Business Principles, 2011a ) .
The company ‘s sustainable docket besides mentioned that they aim to cut down the reportable rate of hurts. AkzoNobel is a company that works with substances and chemicals that have high environmental and wellness hazards. Companies fear holding a repute for a high figure of injured employees or for doing environmental harm. Because AkzoNobel handles these types of substances it is accordingly under the microscope. In order to avoid force per unit area from environmental protagonism groups such as Greenpeace or to avoid bad media, it is of strong involvement to account for environmental facets every bit good as the safety and wellness of its employees.
Objectives/Comparison with Sweden
Harmonizing to the company ‘s web site, AkzoNobel set its marks on the undermentioned aims towards sustainability:
Bettering safety public presentation ;
Increasing turnover from eco-premium productsA which are both eco-efficient and pull a premium ;
Developing sustainable H2O direction A at all sites ;
Reducing C emanations from cradle to gate ;
Attachment to and preparation in the companies Code of Conduct ;
Strengthening the diverseness of the company ‘s work force ; and
Implementing taking people development plans ( AkzoNobel, 2011b ) .
From these marks it is clear that AkzoNobel considers a well trained and ambitious work force an of import measure towards sustainability. It can besides be seen that there is an accent on the duty of the work force. It is of import for the company that its forces are cognizant of the sustainable marks and that the employees take portion in making them.
In comparing, Sweden ‘s Environmental Aims are the undermentioned:
Reduced Climate Impact
Natural Acidification Merely
A Non-Toxic Environment
A Protective Ozone Layer
A Safe Radiation Environment
Booming Lakes and Streams
A Balanced Marine Environment, Flourishing Coastal Areas and Archipelagos
A Varied Agricultural Landscape
A Magnificent Mountain Landscape
A Good Built Environment
A Rich Diversity of Plant and Animal Life
( Government offices of Sweden, 2011 )
The direction of AkzoNobel is in line with most of Sweden ‘s environmental aims. They are cognizant of the demand to cut down C emanations and employ sustainable H2O direction. Furthermore, the production of eco-efficient merchandises is a measure towards a non-toxic environment.
Eka Chemical is AkzoNobel ‘s girl company that specializes in forte chemicals, mush and paper. Their end is to hold mush and paper merchandises that are made from sustainably sourced fibres ( i.e. sustainable forestry ) , while utilizing energy from renewable beginnings and discharge merely of H2O that is cleaned after production ( AkzoNobel, 2011d ) .
Taking into concern its environmental facets, AkzoNobel has a clear purpose towards one of Sweden ‘s Environmental Objectives, which is A Good Built Environment.
Within a company, the rules of environmental policy are the foundation for implementing a sustainable system. Normally full support at the top direction degree is needed to do such a system work and to derive the attending of all employees inside the organisation ( ISO 14001,2010 ) .
The term “ Environmental Policy ” can be defined as:
any [ aˆ¦ ] action intentionally taken [ aˆ¦ ] to pull off human activities with a position to forestall, cut down, or extenuate harmful effects on nature and natural resources, and guaranting that semisynthetic alterations to the environment do non hold harmful effects on worlds. ( Fairbridge Technologies, 2009 ) .
As mentioned antecedently, AkzoNobel truly takes attention of its repute for being a sustainable company. This, once more, is mentioned in their Seller Policy. The slogan “ Tomorrow ‘s Answer today ” shows that this subject is ubiquitous and AkzoNobel non merely explains that “ aˆ¦sustainability is at the bosom of everything we do ” but besides that they have integrated sustainability into every country of their concern. ( AkzoNobel, 2011a )
Sustainable systems are considered 1s that take into history non merely environmental facets but besides societal and economic 1s. The chief end of an Environmental Management System is to better all three facets at the same time without losing public presentation in one.
AkzoNobel uses a sustainability model which is portion of the “ pull offing our values ” ideal. Former cardinal points such as unity, administration and conformity are now being replaced with new subjects such as value creative activity through procedure excellence, invention and endowment development. More specifically, AkzoNobel ‘s sustainability model focal points on three constructs:
Improve: continue to follow with environmental and societal ordinances to guarantee a licence to run. This point is considered to be the nucleus component of how AkzoNobel, as a company, operates.
Manage: include sustainability in all facets of the value concatenation.
Invent: integrate sustainable value propositions to develop a long-run strategic value.
( AkzoNobel, 2009 )
Tools, methods & A ; prosodies
The planetary scheme of AkzoNobel is to incorporate sustainability in all facets of the value concatenation, to diminish their C footmark and to do net incomes from these standardized systems. It starts in the early phase of market research across gross revenues and terminals in cooperation with stakeholders. Furthermore, AkzoNobel highlights the indispensable facet of “ long-run chances ” for their concern which should be reached by these tools, methods and prosodies. In the following there ‘s a elaborate list of the sustainability actions in the company.
AkzoNobel analyzes all of their merchandises by quantitative or qualitative measurings every clip they bring a new merchandise on the market. In order to be deemed an eco-premium merchandise, the merchandise must hit significantly better than a presently available merchandise in at least one of the undermentioned classs:
Use of Natural Resources and Raw Materials
Land usage and hazard
( AkzoNobel, 2009 )
Environmental Assessment Tools
As mentioned antecedently, AkzoNobel quantitatively and qualitatively measures the sustainability of all merchandises before they are considered suited for gross revenues. In order to carry on these appraisals, the company implements the usage environmental appraisal tools such as life rhythm analysis, environmental impacts analysis, C footmark analysis, eco footmark analysis and eco efficiency appraisal. Environmental tools, such as the 1s mentioned, are indispensable for turning informations into environmental concern schemes. Data for each of the tools is gathered from in house forces, measurings, governments, etc. and the decisions from each study are used for dialogues, cut downing costs, run intoing license demands, bettering efficiency, run intoing client demand and puting sustainability marks. ( AkzoNobel, 2010b )
The constitution of a behavior-based safety plan and a new “ Safety Leadership Program ” for caput direction is an efficient method of bettering the hurt rate for employees and contractors. This figure is besides influenced by the integrating of criterions for “ process safety and occupational wellness ” and the, so called, “ Health, Safety, Environment and Security ( HSE & A ; S ) audit procedure. ” The purpose is to portion good pattern all over the company with corporate HSE & A ; S audits to analyse advancement. ( AkzoNobel, 2009 )
To vouch that AkzoNobel fulfills all legal and ethical demands for their merchandises ( harmonizing to REACH, GHS etc. ) , a Global Product Stewardship and Regulatory Affairs Council has been established. Their undertakings are to incorporate good pattern from the company into a “ merchandise stewardship model ” and to guarantee that supplies, preparation and audits are optimized measure by measure. ( AkzoNobel, 2009 )
Pull offing scarce resources
AkzoNobel puts in a important sum of attempt in cut downing the C footmark of their merchandises and making more value for the client at the same clip. Sourcing directors have been installed to place focal point countries for betterment and develop a C direction program in a duologue with providers. In the hereafter, AkzoNobel wants to larn more about client applications to go more efficient in their environmental direction. ( AkzoNobel, 2009 )
ISO14001 and AkzoNobel
The ISO 14000 household of environmental direction criterions can be used to implement a successful environmental direction system. Specifically, ISO 14001 can be considered the most of import model for organisations around the universe to make their environmental ends and maintain an effectual environmental system running. The cyclical procedure of program, do, move and look into are similar to the ISO 9000 household ( Quality Management ) but focused on environmental issues. However, it is possible to unite the two because it is voluntary for companies to implement these systems. Therefore, every organisation regardless of size or sector has the ability to implement ISO 14001. Two different companies can run two wholly different environmental direction systems but both harmonizing to the model in ISO 14001. The basic rule which distinguishes ISO 14001 from all other schemes is the Concept of Continual Improvement Process ( CIP ) . This construct ensures that merchandises are continually being monitored and improved to adhere to environmental and safety ordinances. ( Envirocip, 2011 ; Environmental Management System, 2011 ; ISO, 2009 )
ISO 14001 consists of four basic points ( figure 1 ) . They are similar to traditional generalised strategic planning and are following:
( ISO, 2009 )
Figure 1: ISO 14001 ( Jonsson, L. 2011 )
An account of each measure and its connexion with AkzoNobel ‘s concern policy is as follows.
Plan: Environmental direction system execution
In the first measure of the PDCA-cycle, environmental ends are defined and strategic procedures are created to make them. Ideally those marks are mensurable so it besides gives a model for a control system. AkzoNobel installed sourcing directors to take attention of their C direction program and to happen new focal point countries for betterment and development together with providers. ( AkzoNobel 2009 ; ISO, 2009 ; U.S. Environmental Protection Agency, 2008 )
Bashs: Conduct life rhythm appraisal and manage environmental facets
During this measure, the company begins the life rhythm appraisal procedure and find how to pull off environmental facets. This measure requires that certification be taken throughout the full appraisal, control systems are run, employees are educated and exigency programs are established. One illustration of how AkzoNobel trades with this measure in the ISO 14001 procedure is the execution of the EU ‘s REACH-Project in 2007. This plan involved altering the demands and regulations for providers which how AkzoNobel educated their contractors to pull off environmental facets otherwise. ( AkzoNobel,2007a )
Check: Behavior audits and evaluate environmental public presentation
The “ cheque ” measure in the ISO 14001 involves testing, mensurating and commanding all procedures and merchandises controlled by internal audits etc. AkzoNobel is really proud of its Eco-Premium Products. They give this label to new merchandises after positive analyses of their C footmark. ( AkzoNobel 2009 ; ISO, 2009 ; U.S. Environmental Protection Agency, 2008 ) .
Act: Communicate and utilize environmental declarations and claims
During this phase, companies determine whether their ends and marks within their Environmental Management System were fulfilled. In AkzoNobel, a Product Stewardship System controls and improves all activities from cradle until gate. An effectual manner to follow this measure of the ISO-framework is to look into the current state of affairs, and travel back and happen a better solution in a uninterrupted procedure. ( AkzoNobel 2009 ; ISO, 2009 ; U.S. Environmental Protection Agency, 2008 )
Suppliers & A ; sustainability
As mentioned antecedently, AkzoNobel claims to hold implemented sustainability into every country of their concern. As per this enterprise, portion of their long-run strategic end is to construct relationships and work with spouses that help the company increase its sustainability. Currently, AkzoNobel requires providers of natural stuffs to adhere to certain limitations with respects to societal and environmental criterions. This is laid out by the AkzoNobel Vendor Policy- a papers that formulates the conditions that providers are lawfully bound to. The conditions that sellers must follow to hold been broken down into four classs: provider visits, seller conformity missive, cardinal direction plan, and sustainability focal point countries. ( AkzoNobel, 2011h )
AkzoNobel on a regular basis conducts support visits with their sellers. The intents of these visits are to non merely guarantee that AkzoNobel ‘s limitations are being met but besides to supply sustainability guidance. AkzoNobel ‘s forces give suggestions and act as environmental advisers to their providers. Continual regular visits guarantee that the providers have implemented the sustainability steps and have maintained their new schemes. This procedure is laid out in the Vendor Relationship Management Framework. ( AkzoNobel, 2011h ; AkzoNobel, 2011j )
Vendor conformity missive
As portion of the legal duty for sellers to adhere to AkzoNobel ‘s concern rules, sellers are required to subscribe the Vendor Compliance Letter. This papers contains AkzoNobel ‘s nucleus values every bit good as a model for labour, environmental, safety, and concern dealingss guidelines. ( AkzoNobel, 2011i )
Key supplier direction plan
This plan aims to work with providers to increase and better Eco-premium solutions for their clients. Regular meetings are conducted where providers and AkzoNobel agree upon new merchandises that will go on success non merely in economic footings, but besides environmental & A ; sustainability footings. ( AkzoNobel, 2011h )
Sustainability focal point countries
AkzoNobel has developed sustainability focal point countries ( SFA ) in order to beginning merchandises and services that give the company the chance to significantly cut down their ecological footmark. These countries include:
Logistics & A ; Travel
Renewable Raw Materials
( AkzoNobel, 2011h )
Climate alteration & A ; AKZO Nobel
AkzoNobel ‘s place on clime alteration is laid out in the papers AkzoNobel ‘s Position Statement. This papers states that AkzoNobel recognizes climate alteration as a semisynthetic planetary issue of great importance and, hence, it is necessary to extenuate CO2 emanations. In an attempt to cut down their C footmark, AkzoNobel proctors, steps and surveies all CO2 emanations related to industrial or production activities. Annually, this information is compiled into studies that are in conformity with the Greenhouse Gas Protocol and supply an analysis of direct, indirect, and entire CO2 emanations. From these studies, decrease ends and extenuation aims are developed that the company aims to accomplish by the undermentioned twelvemonth. The 2015 mark is to cut down C emanations by 10 % ( based on 2009 emanations ) per ton of merchandise and the 2020 mark is to cut down C emanations by 20-25 % ( based on 2009 emanations ) . ( AkzoNobel, 2008 )
AkzoNobel has been recognized as the planetary leader in sustainability in the chemicals industry. From 2006 to 2007 AkzoNobel has managed to diminish their C dioxide emanations from 5.2 ( Million T degree Celsius ) to 3.3 ( Million T degree Celsius ) . From 2007 to 2008, AkzoNobel decreased their C dioxide emissions 1 per centum per ton of production. Because AkzoNobel purposes to significantly cut down their ecological footmark, they have set up a scheme to assist cut down carbon-intensive procedures and better energy efficiency. Therefore far, they have achieved the followers:
73 % of world-wide power ingestion is based on zero and low C beginnings
37 % of electricity in the production procedure is based on hydropower
Considered in the top 10 per centum for energy efficiency in fabricating salt-chlorine-PVC loop- on our their most energy intensive procedures
Use low C energy beginnings to bring forth their other two most energy intensive chemicals- Na chlorate and H peroxide
Trying to replace fossil fuels with renewable resources such as wood french friess
Assessed the eco-efficiency/carbon footmark of cardinal merchandises
Developed several C efficient solutions for our clients
Include energy efficiency and C footmark standards in their investing determinations
( AkzoNobel, 2008 )
Additionally, Scandinavia ‘s mush and paper industry and Holland ‘s base chemical production are AkzoNobel ‘s most energy intensive production workss. These two industries combined are responsible for 82 % of AkzoNobel ‘s entire energy usage and 73 % of their CO2 emanations. Recently, the mush and paper chemicals production works shifted 58 % of its energy to hydropower. Besides, the base chemicals workss were retrofitted with extremely “ energy efficient, gas fired cogeneration units that produce steam and power ” . ( AkzoNobel, 2007b )
AkzoNobel has made programs to put in making a system that produces steam from waste and biofuels. AkzoNobel besides supports implementing a cap and trade system that encourages workss to go sustainable while penalizing the unsustainable 1s. Their place provinces that they support the development and execution of the “ most energy efficient engineerings ” worldwide. For the hereafter, AkzoNobel is revising their 2008 Carbon Strategy to construct new sustainability ends. This scheme will include programs to cut down C emanations in the country of fabrication. ( AkzoNobel, 2007b )
After reexamining AkzoNobel ‘s concern scheme, it is clear that AkzoNobel looks at high environmental/sustainability public presentation as a concern chance. The company specifically aims to bring forth merchandises that are economically every bit good as environmentally honoring. Currently, sustainability and clime alteration issues are at the head of the planetary docket. If AkzoNobel chose to ignore these issues and continued with “ concern as usual ” their repute would miss the high unity which has been a cardinal component to their success. Because this company has managed to significantly cut down their ecological footmark, they have received several awards, media attending, and PR. This attending does non travel unrecognised as consumers are attracted to companies that hold such a high regard. Additionally, it is good known amongst the general population that chemical production every bit good as mush and paper production are two notoriously environmentally harmful industries. As the general population becomes progressively involved and cognizant of environmental issues, AkzoNobel ‘s concern and buying determinations begin to reflect it. It is, therefore, in AkzoNobel ‘s best involvement to turn to the company ‘s sustainability and remain at the head of the planetary sustainability sphere. If AkzoNobel chose to ignore sustainability issues it would, in the long-run, do AkzoNobel to non be able to vie with its rivals in the market. This is in line with AkzoNobel ‘s doctrine of environmental stewardship and their apprehension of client demand as can be seen by the undermentioned AkzoNobel citation:
[ Sustainable invention procedure ] SIP is driven by the demand for better merchandise public presentation – but it ‘s ever connected to sustainability and environmental public presentation. We ca n’t convey a merchandise to market that is less environmentally friendly than its predecessor and anticipate it to win. Equally, a new eco-product will merely make good if it besides offers existent competitory advantage.
( AkzoNobel, 2010a )
Regardless of the company ‘s effort to turn to environmental/sustainability issues, AkzoNobel is however environmentally harmful. Producing chemicals, pigment, paper, and mush merchandises is ne’er done without an ecological monetary value. However, AkzoNobel has made a important attempt to increase the company ‘s environmental sustainability every bit much as possible. This has been done by developing schemes, ends, and programs through strict sustainability planning and the success of the activities have been monitored via environmental testing. Because decreases in VOC ‘s, CO2, SO2, and NOx emanations have been proven, the concern activities of the company are in correlativity to the environmental planning.
As mentioned, companies in modern concern are cognizant of the importance of being green. Unfortunately some of them fail to move green even though they present themselves as such. Greenpeace has set up a run to halt this so called Greenwashing and inquire companies to: “ Clean up your act, NOT your image ” ( Greenpeace, 2011 ) . While surfing AkzoNobels web page, it was clear that AkzoNobel was highly proud of all its positive accomplishments but barely mentioned when it did n’t win or hold a bad public presentation. However did SOMO ( Centre for Research on Multinational Corporations ) make a study in 2009 about AkzoNobel to supply extra information that AkzoNobel itself might non hold reported, concentrating on the 2008 one-year study. In this study it was stated that in 2008 the Political Economy Research Institute ( PERI ) of the University of Massachusetts had ranked AkzoNobel in the eighty-fifth topographic point on the Toxic 100 Index. This index indicates the top 100 air defilers in the U.S. “ on the footing of entire human wellness jeopardies ensuing from air toxics emanations at their installations ” . ( Knottnerus, 2009 ) . It was besides noted that in 2008, AkzoNobel had non fulfilled demands about the use and purchase of renewable energy. Knuttnerus mentioned more instances that were non environmentally friendly, though many were old, some even stationed back in the 1980 ‘s. Sustainability foremost became a cardinal rule in AkzoNobel ‘s concern in 2004. The company had a speedy success and already in 2008 it was in 2nd topographic point on the Dow Jones Sustainability Indexes. ( Knottnerus, 2009 ) . The company has succeeded a batch in a short clip and it ‘s apprehensible that some things ca n’t go on over a dark.
From our point of position AkzoNobel could believe about taking portion in the “ Chemical Leasing ” plan coordinated by UNIDO to extenuate their environmental pollution. The thought of ChL is to set up a service-oriented concern theoretical account and to steer clients off from purchasing and utilizing excessively much chemicals for the intent of the environment. “ The manufacturer chiefly sells the maps performed by the chemical and functional units are the chief footing for payment. ” ( UNIDO, 2010 )
After analysis of AkzoNobel ‘s environmental/sustainability direction public presentation, it is clear that the company has a strong sustainable docket that is supported by all degrees of management- an indispensable facet for successful execution of concern schemes. To put to death this program, AkzoNobel established an Executive Committee and a particular Sustainable Development group that focuses on these affairs. The chief drive force for the development of this scheme is to increase long-run portion holder value. The company proctors and develops both their internal production every bit good providers through the usage of several sustainability tools. It was determined that AkzoNobel uses this sustainability scheme as a concern chance every bit good as a agency of hiking their public image. Since it was hard to happen figures or statistics that showed negative environmental public presentation, it is ill-defined whether the company adheres to Greenpeace ‘s run slogan “ Clean up your act, NOT your image. ” Either manner, it is of import that modern twenty-four hours companies are crystalline and do non bury to describe their bad public presentation. Transparency and honestness in concern is the best manner to be trusted and to avoid being classified as a “ Greenwashing company ” .