Sustainable Development to the Fourth Dimension

Transcription

1 Sustainable Development to the Fourth Dimension Michael J. Graff President and CEO American Air Liquide Holdings, Inc. Executive Committee Member, L Air Liquide S.A. IOMA Annual meeting, October 20, 2010

2 What is Sustainable Development? Development that meets the needs of the present without compromising the ability of the future generations to meet their own needs. Brundtland Commission 1987 Sustainable Development is at the confluence of 3 constituent parts: Social SD Environmental Economic 2

3 Why does Sustainable Development matter? It is a matter of long-term viability It is a matter of reputation It is a matter of principle 3

4 The sustainability imperative Meet the growing needs and expectations of: Customers Investors The public The world in which we live 4

5 Sustainable development and our industry IOMA members have an edge in sustainable development Our own sustainable advantages Support of others sustainability initiatives 5

6 An environmental edge Air separation units are factories without chimneys No combustion Consume electricity only 6

7 Direct and indirect GHG emissions compared with other sector leaders CO 2 emissions in million tonnes 7

8 Two concrete examples: Pure oxygen combustion to reduce nitrogen oxide emissions Hydrogen to produce sulfur-free fuels 8

9 A clean energy edge Hydrogen + fuel cell + electric motor A car with zero output pollution Mass transit 2010 Winter Olympics 9

10 A social benefit Saving and improving lives 10

11 Translating Sustainable Development into strategy General principles of Sustainable Development unite 3 objectives: Economic value creation over the long term Consideration for people Environmental protection In 2003, Air Liquide developed its own model based on these principles 11

12 Air Liquide s Sustainable Development approach: four dimensions Creating value for shareholders by developing the Company s business performance over the long term and with transparency Developing the potential of the Company s men and women in their commitment to common objectives Preserving life and the environment in the Group s operations and at its customers sites Innovating for tomorrow to guarantee the growth of the company and its customers 12

13 Sustainable development indicators and objectives More than 170 indicators to track performance 13

14 The First Dimension: Creating value for shareholders

15 108 years of creating sustainable value 108-year history Long-term strategic outlook Long-lasting customer relationships Tremendous shareholder loyalty Long-tenured employees Regular profitable growth Average growth of paid dividends over 30 years: + 9.5% per year 15

16 The Second Dimension: Developing the potential of men and women

17 Promoting diversity: women in management and engineering roles Percentage of women among engineers and managers + 70% in 7 years In 2009, % of women among engineers & managers = overall proportion of women in the Group 17

18 Knowledge transfer/training objective To increase training opportunities so that all employees have the chance to enhance their skills and facilitate their advancement through increased training days each year. 2009: Launch of Air Liquide University 18

19 Corporate citizenship: Air Liquide Foundation Research on protection of the environment Research on human respiratory function Micro-initiatives for local development 19

20 Corporate citizenship: Air Liquide Foundation 79 projects in 30 countries. Approved projects Projects under examination Finished projects Air Liquide presence 20

21 Global warming research expeditions Support for two datagathering expeditions to North Pole Jean-Louis Etienne measuring CO 2 and magnetic field Under the Pole expedition measuring thickness of ice 21

22 Micro-initiatives Promoting local development Agro-forestry in Ghana Social center in Vietnam Medical training in Thailand 22

23 The Third Dimension: Preserving life and the environment

24 Safety first Objective Zero accidents on every site, in every region and in every unit. Lost time accidents of Group employees 24

25 Preserving the environment We track more than 100 indicators Energy and water consumption Air and water emissions Waste We monitor Hundreds of production units worldwide Transport by pipelines and trucks Carbon content of Air Liquide products 25

26 Energy management & efficiency objective To reduce the Group s annual world consumption of electrical energy by air separation units, at constant scope, by at least 400 GWh, avoiding 140,000 tonnes of CO 2 emissions per year. 26

27 The Fourth Dimension: Innovating for Tomorrow

28 Innovation a key to sustainable development Air Liquide founded through an innovation Innovation a key business driver 28

29 R&D emphasis R&D budget of 218 M 1,000 researchers of 30 different nationalities 8 R&D centers worldwide More than 120 international collaborations with universities and research institutes Over 100 industrial partnerships 29

30 R&D focus on Sustainable Development 60% dedicated to research linked to Sustainable Development Two major research axes within Sustainable Development focus: Sustainable Environment Healthcare and Hygiene 30

31 Sustainable environment Four main R&D topics related to climate change: CO 2 capture and storage Hydrogen, a clean energy carrier Second-generation biofuels Development of gas applications in the photovoltaic industry 31

32 Oxy-combustion and Carbon Capture & Storage Air Liquide is part of a number of major projects FutureGen 2.0 project U.S. Alliance, Ohio project U. S. Lacq project France Callide project Australia 32

33 Second generation biofuels Research on process to create fuel from plant waste Bioliq three-stage process straw syncrude syngas methanol 33

34 Photovoltaics The global leader in gases for the photovoltaics industry Requires large quantity of very high purity gases: Nitrogen Hydrogen Monosilane Specialty gases Research objectives: Reduce energy cost Develop more environmentally friendly processes 34

35 Healthcare and hygiene R&D Fields of research New therapeutic gases for: Pain relief Anesthesia Avoidance of nosocomial diseases Homecare for patients suffering from chronic illnesses 35

36 International patents objective Within five years, to file over 500 new patents Objective topped with 648 new patents. 36

37 Reporting and Recognition

38 Sustainable Development reporting Sustainable Development Report A fully dedicated section of the Reference Document Verified by the Statutory Auditors Response to increasing requests for information: Customers Investors interested in Socially Responsible Investment 38

39 Sustainable development recognition Ethibel Sustainability Index Selected as Ethibel Excellence index leader in sustainable development for fifth consecutive year Storebrand Positioned among best companies for environmental and social performance Observatoire de la Réputation (Reputation Monitor) Tied for first in its CAC 40 reputation ranking Morgan Stanley One of 20 sustainable brands for the future 39

40 Applying these principles at Air Liquide A sustainable strategy is fundamental Make it reflect your own culture and values Ultimately, you will be held accountable for your sustainability Recognize that this is an investment in your future 40

41 Sustainable Development to the Fourth Dimension IOMA Annual meeting, October 20,2010