CONNECT TO BETTER. corporate. social. responsibility. report

Transcription

1 CONNECT TO BETTER corporate socia responsibiity report 14

2 CSR report tabe of contents 1. Message from the CEO 3 2. About Wavin Introduction Wavin and Sustainabiity Wavin s organisationa structure and governance SWOT anaysis 7 3. The bigger picture Our business mode and vaue chain Our stakehoders 8 4. Introducing our sustainabiity strategy for Introduction Our sustainabiity strategy Sustainabiity area: Reducing our cient s footprint Sustainabiity area: Taking our socia responsibiity Sustainabiity area: Responsibe empoyer Sustainabiity area: Producing responsiby Depoyment of our new sustainabiity strategy Deivering sustainabe soutions through our business Our 14 performance Introduction Targets Environmenta performance Socia performance Human resources KPI Performance overview About this report Assurance statement 35 The origina document is printed on FSC certified paper. 2 CSR Report 14

3 Message from the CEO Dear Stakehoder, I am proud to present you the Wavin 14 CSR report. In 14, we continued to make significant progress towards achieving the targets we set ourseves in 09. As you can read in this report, Wavin has once again reduced its reative energy consumption, CO 2 emissions and waste to andfi. Furthermore, we note a cear improvement in our safety performance foowing our investments in this area. A this was achieved whie facing continued chaenging European market circumstances and interna reorganisation efforts to face these chaenges. The fact that we sti improved on most of our targets is a tribute to the commitment of a Wavin coeagues. It aso confirms the commitment to sustainabiity performance of our parent company Mexichem. The Wavin CSR resuts are consoidated in the overa Mexichem CSR reporting. Through our participation in TEPPFA, The European Pastic Pipes and Fittings Association, we contribute to Environmenta Product Decarations (EPDs) for many of our pro ducts. EPDs compare the environmenta performance of pastic pipes and fittings to pipes and fittings made of aternative materias. The resuts show that on average the environmenta footprint of pastics is substantiay ower than that of aternative materias. Wavin wi continue to underine the environmenta benefits of pastics for pipes and fitting compared to aternative materias. Sustainabiity Strategy We have set the industry standard over the past few years, but we fuy recognize that more is to be done. It is our firm beief that sustainabiity is key in Wavin s strategy to remain the market eader in our business. Customers and endusers increasingy vaue our approach to sustainabiity in both our products and production processes. It is our continued ambition to be at the forefront of sustainabiity within our industry and even within our vaue chain. Sustainabiity Strategy is the fina year of our current sustainabiity agenda As we are about to embark on a new sustainabiity strategy, we reconfirm our ambition to reaise the chaenging targets we set ourseves in 09 and revised in 10. Since the deveopment of the 08 sustainabiity strategy, Wavin has activey impemented resource saving projects such as energy conservation projects, transport optimization and recycing of pastics. We have become the European eader in pastics recycing in our industry, which is another good exampe of how we adapt our business mode and reap the benefits of sustainabe business practices. We continue to expore opportunities to increase the percentage of recyced materias in our products in the coming years. This commitment is integra to reducing the environmenta impact throughout our vaue chain. This sustainabiity report introduces the new Wavin sustainabiity strategy. The sustainabiity strategy wi guide our efforts for the coming 5 years. Within the new sustainabiity strategy we continue to set chaenging interna targets for, amongst others, environmenta footprint and heath & safety. In addition to the continuation of our interna programs, we now pace more emphasis on the economic and environmenta vaue of our products to our customers and end-users. In the coming year, we wi depoy our new sustainabiity strategy throughout the organisation. I ook forward to presenting our detaied 15- sustainabiity strategy to you in the CSR report 15. Maarten Roef President & CEO CSR Report 14 3

4 2. About Wavin 2.1. Introduction Wavin is a member of the Mexichem Group and is the word eader in pastic pipe systems for residentia, non-residentia and civi engineering projects. Wavin provides soutions for a projects above and beow ground: water management, heating and cooing, water and gas distribution, waste water drainage and cabe ducting. Our roots ie in the search for safe and environmentay friendy distribution of drinking water. Over the years, we have incuded sustainabiity reated improvements not ony in our operating procedures and processes, but especiay in our offerings to the market. The current business andscape, where sustainabiity-reated issues are high on our customers agendas, brings many opportunities. Wavin product ranges made with recyced materia There is a widespread market demand for con struction products that are more environmentay friendy. Both egisation and tenders increasingy incude a contribution to a sustainabe word. End-users demand innovative systems that con sume ess energy, demonstrate a ower car bon footprint and are more sustai nabe through out their entire ife cyce. Key figures FTE s 5,484 5,541 Revenue 1.2 biion 1.2 biion Carbon emissions 158,480 tons CO 2 157,939 tons CO 2 Energy use 1,4,359 GJ 1,418,291 GJ Use of recyced materia 37,876 tons 42,443 tons Waste to andfi 1,062 tons 1,138 tons Potabe water use 464,000 m 3 239,000m 3 Wavin s vision To be respected and admired as the sustainabe, recognized word market eader of pastic pipe systems and soutions. Wavin s mission To generate continuous vaue for our customers. empoyees, partners, and sharehoders. For our customers we are the suppier of choice due to a compete, competitive, innovative and sustainabe portfoio for above and beow ground pastic pipe appications. Using recyced materias in our systems is one of the options that can fufi many of these needs. At Wavin, we have used recyced materia in our products since the eary 1990 s. Today, a arge array of Wavin products such as rainwater infitration units, inspection chambers, twin-wa pipes, cabe protection pipes and waste water pipes contain recyced materia. A Wavin products fufi the highest standards and func tiona requirements, whether they were made with virgin or recyced materia. Our production engineers and product designers are highy motivated to increase the use of recyced materia. For more detais about our recycing processes and/or recyced raw mate ria, pease contact your oca Wavin organisation or send an e-mai to sustainabiity@wavin.com. 4 CSR Report 14

5 2.2. Wavin and Sustainabiity We are convinced that Wavin s ong-term success depends on how our organisation and business mode incorporates socia and environmenta dimensions of doing business. Sustai nabiity distinguishes Wavin from its competition and creates attractive opportunities for our business. Our ap proach to sustainabiity heps us to improve the efficiency of our operations, to deveop cient and suppy chain rea tion ships, to attract and retain taent and drives innovation in the construction vaue chain. We beieve that thanks to our baanced approach to doing business sustainaby we wi continue to meet, and even exceed, the expectations of our current and future stakehoders Wavin s organisationa structure and governance In 12, Wavin became part of the Mexichem Group, the Latin American eader in pipe systems and petrochemicas. Detaied information concerning Mexichem can be found at htm. The Wavin Group headquarters are ocated in Zwoe, the Netherands. We have a direct presence in over 25 countries with 30+ manufacturing sites, mainy in Europe. For a ist of the countries we have a direct presence in pease refer to Sustainabiity is inked to the foowing areas: Safety of our workforce; Soutions we provide for end-users; Efficiency of our operations; Our reputation. Sustainabiity is an integra part of our strategy. Wavin aims to: Deveop products and systems that have a minima impact on the environment throughout their ife-cyce: from the sourcing and seection of materias to the manufacturing process, distribution and re-use and disposa; Be a eader in the deveopment of sustainabe products and soutions which can, in turn, aso hep our customers achieve their own sustainabiity targets; Outside Europe we operate through a goba network of agents, icensees and distributors. Wavin empoys some 5,500 peope and has annua revenues of around 1.2 biion. Wavin is organized in four regions, ed by Regiona Directors. Together with the Management Board, the Executive Director of Marketing & Technoogy and the Executive Director of Suppy Chain Optimization and Operationa Exceence, the Regiona Directors form the Wavin Executive Committee. The Wavin Supervisory Board oversees the performance and strategy of the Management Board, taking into account the interests of a the company s stakehoders. As a resut, the Super visory Board aso oversees Wavin s CSR performance. The Super visory Board consists of six members, each appointed for a four-year term. For infor mation on the composition of the Boards, pease refer to our website: Remain aware, at a times, of the webeing of our empoyees and of the peope who insta and use our products and soutions. This means, for instance, that we design our products to ensure safe manufacture, distribution, instaation and use in demanding circumstances. management-board.htm and supervisory-board.htm CSR Report 14 5

6 Wavin s organizationa structure MANAGEMENT BOARD Corporate Functions Wavin Overseas Marketing & Technoogy North West Europe South West Europe Centra & Eastern Europe South East Europe Netherands Germany Begium Denmark Norway Sweden United Kingdom Ireand France Poand Czech Repubic Finand Russia Ukraine Sovakia Lithuania Estonia Latvia Bearus Itay Turkey Hungary Serbia Romania 6 CSR Report 14

7 SWOT anaysis Strengths Research and innovation Throughout its history Wavin has set new standards for our industry. Our innovation programs ensure that we meet and exceed our customer expectations. More than % of our turnover comes from products which have been on the market for ess than five years. Quaity products The Wavin product portfoio is comprehensive and unrivaed in its breadth and depth. A our operations are dedicated to providing assured avaiabiity, competitive pricing and timey deivery to match our customers expectations. Our existing products and systems that are proven in service are aso kept under constant review. Weaknesses Perception of pastics industry New insights based on thorough researched ife cyce assessments demonstrate that pastic pipe systems have a ower environmenta impact than conventiona materia. In the pubic eye, we can further improve a positive perception of pastics in comparison to conventiona materias, by communication the positive outcome of independent research. Diversity Historicay, our industry is a mae oriented industry. We acknowedge that mixed teams are a prerequisite for a successfu company and continue to take initiatives to increase support for the femae staff. Environmenta & recycing programs Thanks to these programs we significanty reduced our environmenta footprint. Opportunities Substitution Aternative materias are increasingy repaced by easy to insta sustainabe pastic soutions. Cimate change Annua eves of intense rainfa are projected to increase. At the same time urbanization eads to a decrease of the natura rain water absorption capacity. We provide innovative systems to cope with these chaenges. Energy efficiency of buidings Sustainabiity is a key issue as is refected in increased energy-saving egisations for buidings on nationa and EU eve. We provide systems which are more energy efficient than conventiona systems. Innovation in construction markets Popuation growth and the increasing number of singe person househods drive the deveopment of new housing projects. Main drivers for renovation are the demand for comfortabe and energy efficient houses and office buidings. Our innovative systems fit with these deveopments. Threats Economic uncertainty Lower consumer confidence, stagnating rea estate markets and reduced government spending have negative impact on the buiding sector in Europe. Competitive environment Over-capacity in the pastic pipe systems industry causes pricing pressure. Sourcing The rising costs of raw materia needs to be passed on to the markets in a timey manner. REACH egisation impacting pastics recycing Proposed changes in REACH coud severey impact pastics recycing industry in Europe. CSR Report 14 7

8 3. The bigger picture 3.1. Our business mode and vaue chain The overview on page 9 iustrates how Wavin creates sustainabe vaue. We identified the sustainabiity risks and opportunities per business process and continue to adjust our business mode to these opportunities and risks. In the end, we create sustainabe vaue for our stakehoders through the environmenta performance of our products, our highy efficient production processes and our way of doing business. As a resut, our customers enjoy highy reiabe and high quaity products, our empoyees enjoy a safe working environment, are we trained and compensated, and our processes have a minima impact on the environment and a positive impact on our socia environment. Sustainabiity opportunities and risk in the construction vaue chain Wavin provides buiding materias to the construction industry. Pease find beow the CSR opportunities and risks we have identified throughout our vaue chain. We do not just accept these risks, but mitigate them with an organized approach, incuding CSR poicies, operationa pans and procedures Our stakehoders As Europe s eading pastic pipe system provider our business is directy inked with, and has an impact on, a variety of stakehoders. We communicate activey with empoyees, customers, suppiers, trade organisations, governmenta agencies and NGOs and discuss a variety of issues with them, incuding those directy inked to sustainabiity. Our Management Board activey engages our stakehoders through their invovement in commercia activities in the regions, as we as through other patforms such as participation in the TEPPFA Executive Board and various working groups. Wavin interacts with various groups of stakehoders at both corporate and oca eves. We strive to create patforms and participate in working groups to isten cosey to stakehoder concerns and we organize effective diaogues. The subjects of these diaogues are taken into consideration when deciding on the content of our sustainabiity pan and infuence the key topics discussed and presented in this report. 8 CSR Report 14

9 Step in the vaue chain Risks Opportunities Wavin s approach Sourcing of input materias Sustainabiity risks in the suppy chain. Engaging with suppiers Wavin has sustainabe purchasing programs in pace. We drive sustainabiity in our vaue chain by communicating sustainabiity targets to our suppiers. REACH compiance More recyced input Wavin is determined to continue to increase the amount of recyced input materias in our products. Together with our partners we have estabished sophisticated recycing projects to obtain end-of-ife pastic products. Stakehoder concerns on pastics Evidencing performance with LCA REACH is ikey to have a profound impact on the European recycing industry. Pease refer to page for more information on this subject. Wavin contributes to the deveopment of LCA and EPD reports initiated by TEPPFA. These reports scientificay prove that using pastics for pipes and fittings eads to ower environmenta impacts compared to aternative materias such as copper and concrete. Transport of materias to Wavin factories Environmenta impact of transporting goods Loca sourcing Wavin is activey seeking to decrease the distance between our materia suppiers and the factory ocation. If the distance is shorter, ess fue is needed to transport materias to our factories which in turn resuts in ower carbon emissions. Manufacturing the product Inefficiencies Word cass producer of pastic pipes and fittings This is the step in our vaue chain where we have most contro. We have severa programs in pace to increase our safety performance, our energy- and materia efficiency. The resuts and our targets can be read throughout this report. Environmenta impacts Lean production processes Furthermore, we wi continue to stimuate new energy saving projects as we see cear environmenta and financia benefits resuting from past investments. Heath & safety Wavin has extensive Heath & Safety management processes in pace and we continue to manage Heath & Safety as any other critica business activity. Transport of products to end-user Environmenta impact of transporting goods Offering cients green transportation and sustainabe suppy chain One of the eements we track as part of our CO2 footprint is the kiometres for transporting our products. The anayses of data coected may ead to a redesign of our packaging units for our ogistic network in Europe. User phase of products The products do not deiver the expected sustainabiity advantages Comfort, reduction of energy consumption, ease of instaation, substitution of traditiona materias by pastics Within the industry organisation TEPPFA, we determine fu environmenta performance of pastic pipe systems via Life Cyce Anayses. The resuts are pubished in the reated Environmenta Product Decarations. These are pubicy avaiabe at We are aso constanty researching how we can improve our products in the user phase. To this end, we are creating innovative products and soutions. Exampes incude systems that increase the comfort of iving, products that hep our customers buid green buidings and products that support in reducing energy consumption. End-of-ife Waste of vauabe products Products that are not REACH compiant Cosing the oop Efficiency in the use of vauabe resources We are currenty active in increasing the conversion of recyced materias in our products. We have numerous recycing projects in pace to obtain end-of-ife pastics. A risk is that some of the coected pastics for recycing contain egacy additives, which make it difficut to recyce under proposed changes to REACH reguation. This coud force us to imit the recyced input materias in our products, thus shifting to virgin materias. CSR Report 14 9

10 Engaging our industry Engaging our customers Wavin is an active member of a number of associations. We participate in initiatives that focus on improving sustainabiity within our industry. Key stakehoders where Wavin activey participates in discussions on sustainabiity are: TEPPFA The European Pastic Pipes and Fitting Association: Recent issues incude is the deveopment of industry wide Environmenta product decarations (EPD) and product ife cyce anaysis (LCA) in order to understand and communicate the environmenta impact of our products. More information can be found on Viny Pus Represents the PVC industry s commitment to recycing. Wavin is a eading recycer of PVC in Europe and we have ambitious targets to continue expanding in this area. To do so we are working with our peers, industry experts and suppiers to find areas where we can deveop further. See for more information. PVC4Pipes Via Wavin Overseas, Wavin is a member of PVC4Pipes, a goba organization with the mission of deveoping and promoting sustainabe PVC piping systems in the goba market. Members are drawn from a sections of the industry, from raw materias suppy to pipe systems manufacture, testing institutes and promotiona organizations. Our customers and end-users are key stakehoders for Wavin. They enjoy safe drinking water and hygiene and simutaneousy ower their own environmenta impacts through daiy use of our products. We activey engage our customers at both corporate and regiona eve and isten to their needs and concerns. This is done by organizing trainings and visits to our production sites, Wavin Academies, and our R&D centre in the Netherands. We aso conduct customer surveys through our network of account and saes managers in order to measure customer satisfaction and get their opinion on the atest issues in our industry such as sustainabiity and green buiding certi fication. Other toos for customer oriented stakehoder engagement incude: Corporate and oca websites showcasing our sustainabe soutions in energy efficient heating and cooing systems, storm water management systems and recyced products; Brochures highighting the impact of using our products on achieving LEED and BREEAM certification due to heightened attention to Green Buiding Certification and Green Buiding Products in the construction industry; Tradeshow and exhibition participation; Press reeases and media communication showcasing Wavin s activities in the market; Newsetters. Wavin Academy supports professiona deveopment of customers The Wavin Academies are a physica training and meeting centers, often supported by a dedicated website. The purpose of the Wavin Academy is to support our customers in further deveoping their competences as this increases the success of both our customers and ourseves. The centres have a strong focus on Wavin s innovations, with meeting rooms designed to conduct training courses and showrooms where practica skis can be trained. Currenty, Wavin has Academies, in Adana (Turkey), near Boogna (Itay), Prague (Czech Repubic), Hamme (Denmark) and Varennes-sur-Aiers (France). 10 CSR Report 14

11 The diemmas we face: who is the customer in the construction industry vaue chain? An urban environment that makes use of sustainabe buiding techniques is one of the crucia success factors for a resource constraint word. Buidings have an average ifetime of 30 up to 50 years. So what is buid today, wi impact energy consumption, carbon emissions and in genera quaity of ife for decades to come. In the current economic circumstances, some engineering or construction companies might choose buiding soutions that have ow initia cost, such as conventiona surface heating & cooing soutions. Engaging our Empoyees As a responsibe empoyer, we ensure that we affirm the roe of our empoyees in our organisation and reguary coect their feedback and engage them on matters at hand. The past year has been very dynamic in terms of an updated corporate strategy, organisationa changes and the integration into the Mexichem group. Furthermore, we are continuousy enhancing our product portfoio and ocation of our sites. Both deveopments have an impact on the composition and size of our workforce. Empoyee engagement channes proved to be crucia in communicating these changes and invoving empoyees in identifying key concerns and soutions Empoyee engagement toos incude: Reguar Executive Committee meetings where key issues are discussed and agreed; Town ha meetings where management executives expain upcoming deveopments and coect feedback from the oca staff; The Wavin Group intranet, an integra part of the rea time distribution of information and news throughout the Group; Interna newsetters. These are distributed reguary at both corporate and oca eves showcasing key events, issues, ongoing projects, peope and job changes and strategy updates; Loca community bodies and oca work councis; The Wavin European Consutative Counci providing a forum for discussing company issues beyond nationa borders with the Management Board. However, the end-user of the property wi be burdened with higher energy bis as the chosen soution might be ess efficient than other soutions. As a resut and over the ifetime of a property, a cheap soution during the construction phase might prove to be more costy in the ong term for the enduser. This poses a diemma: how can the actua customer be identified and how can potentiay conficting interests within the construction vaue chain be aigned? CSR Report 14 11

12 Engaging our Suppiers Our company conducts business in such a way that it compies with a the egisation and widey-accepted standards reated to fairness and human decency, incuding the UN Goba Compact, the UN decaration of Human Rights and ILO conventions. We aso have a Group-wide program in pace to reduce our environmenta impact in a chains of our primary processes. The key aim is ensure sustainabe deveopment initiatives are impemented and driven throughout the suppy chain. A Group-quaified suppiers have signed umbrea agreements comprising aso the Wavin Suppier Code of Conduct. Furthermore, reguar audits have been hed at random suppiers thus assessing compiancy in practice and throughout their part of the suppy chain. A our suppiers are expected to compy with our business principes. For suppiers that are not abe to meet our business principes, an improvement action pan sha be agreed on and in case of faiing improvement, the contract sha be terminated. The Suppier Code of Conduct is reviewed annuay and amended if needed. Recent revisions of the program incude, but are not imited to: The incusion of a REACH decaration to ensure REACH compiance in our suppy chain; Further deveopment of the Suppier Risk Assessment methodoogy. Summary of stakehoder engagement In the tabe on page 13 you wi find and overview of the ways of communication with, and expectations of our stakehoders. 12 CSR Report 14

13 Stakehoder Empoyees How we engage our stakehoders Day-to-day Empoyee Training Intranet Unions contacts engagement surveys Expectations of stakehoders Heathy Job Training and safe workpace security Link to information in this report Socia Human resources Human resources Environmenta Our Environmenta Our 14 performance Our stakehoders Our 14 performance performance and deveopment opportunities and works councis Sound working conditions and fair compensation package Loca community Customers Day-to-day Visits Job Responsibe and meetings Loca media Community investment Day-to-day Customers contacts Reiabe support Dedicated Company Ease Sustainabe contacts visits & faciity tours opportunities corporate citizen product services performance 14 performance of instaation product and sustainabe advantages Fair baance in price and quaity End-users Seectivey Information day to day contact on websites, fyers, eafets, etc. Suppiers Governments Advertising and promotions Day-to-day contacts In Durabiity Performance Sustainabe Long-term audits and meetings Meetings, TEPPFA discosures deivered performance products reationship with Wavin Fair Compiance Participation price in oca, nationa and internationa projects CSR Report 14 13

14 4. Introducing our sustainabiity strategy for Introduction In 14, we deveoped a new focus to our sustainabiity strategy By reviewing our sustainabiity risks and opportunities against goba trends popuation growth and the new midde cass, urbanization, ong-term constraints of natura resources and cimate change we evauated how these wi impact our key customer sectors by. This process ed to a framework on sustainabiity. This framework guides the efforts of our operating companies. Our new framework sets the direction for our ambitions. It refects our activities from the perspective of our cients, empoyees, appicants for jobs, sharehoders, and society. It dispays our vision heading towards, and identifies the key drivers needed to make this vision come to ife. This structure wi hep us drive the agenda and communicate our sustainabiity objectives, both internay and externay. It aso transates these into specific company-wide programs, now and in the future. We have added exampes of key performance indicators (KPIs). Severa of these KPIs are aready in pace, whie others are under deveopment. During 15, we wi further deveop programs and reated reporting structures. As our sustainabiity strategy further evoves, new KPIs might be added whie others may be abandoned if they turn out to be obsoete. Vision To be respected and admired as the sustainabe, recognized word eader of pastic pipe system and soutions. Mission To generate continuous vaue for our empoyees, customors, partners and sharehoders. For our customers we are the suppier of choice due to a compete, competitive, innovative and sustainabe portfoio for above and beow ground appications. Mexichem corporate vaues Leadership, responsibiity, commitment, resuts oriented, integrity and safety. Wavin brand vaues Ambition, ski, efficiency, innovation, connectivity, eadership Orientation (interna, externa) Sustainabe soutions for society Sustainabe organisation Sustainabiity area Reducing our cient s environmenta footprint Taking our socia responsibiity Responsibe Empoyer Producing reponsiby Key sustainabiity themes Sustainabe products Sustainabe use Community invovement Responsibe suppy chain Heath & Safety Engaged & competitive workforce Reducing our environmenta footprint Recyced content 14 CSR Report 14

15 Sustainabiity area: Reducing our cient s footprint Sustainabiity of the buit environment is a driving force in our product innovation, portfoio and customer oriented processes. Our cients choose our products because they can be instaed with minima disturbance during the instaation process and because our products have a ower environmenta impact compared to aternatives. Our products demonstraby improve the environmenta performance of the buidings and surroundings they are used in, have a onger ifespan and ead to significanty ower maintenance costs. As a resut, tota cost of ownership is significanty ower compared to aternative materias. Our cients choose our products because they recognize and vaue the ong term environmenta and financia saving potentia of our products besides the comfort of iving Sustainabiity area: Taking our socia responsibiity We pro-activey deveop, maintain and strengthen the reation ship we have with communities cose to our sites. We contribute to the quaity of ife of underprivieged communities through partnerships in which our products and competences are used. It is important for us that oca communities wecome our faciities and trust our peope. Our stakehoders acknowedge our contribution in providing cean drinking water and proper sanitation for chidren in need. We invest in ong term reationships with our suppiers and contractors. We do not sacrifice ong term vaue for short term financia gains. Our suppiers do business with us because we share knowedge and hep each other improve Sustainabiity area: Responsibe empoyer Heath and Safety is a crucia part of our cuture and business ethics. Safety is aways our first priority. We aim to have zero accidents and incidents, being in contro of a safety risks. The commitment we show towards occupationa safety, is matched by our drive to provide a working environment contributing to strong team spirit our company s ong-term goas. We beieve the expertise, commitment, and we- being of our empoyees are critica to our success. The expertise, commitment, competitiveness and we-being of our empoyees are critica to our success. It is our objective to provide a working environment that fosters a strong team spirit and contributes towards our company s ong-term goas. For this we aim to have peope that are committed, motivated and have the skis to meet the demands of our business partners. We aim to insti our corporate vaues within a our empoyees. The key vehice for our corporate vaues is our Code of Ethics Sustainabiity area: Producing responsiby We do everything that is economicay feasibe to imit our environmenta footprint and aim to achieve cimate neutra production. Our customers do business with us in part because we demonstraby quaify as the most sustainabe producer in terms of our environmenta footprint. We aim to base our production processes on circuar vaue chains. Our goa is to remain the number one pastic recycer of Europe in our industry and to increase the percentage of recycate in our product offering Depoyment of our new sustainabiity strategy From January 15 onwards, our focus wi be on systematicay improving the programs and metrics that foow from the new framework. We wi further embed key sustai nabiity issues in our corporate, business and func tiona processes strategy and panning, risk manage ment and interna contro, compiance, the operationa review cyce, as we as in our interna audit and externa assurance processes. We wi continue to set group-wide standards for heath and safety, environmenta protection, product ste ward ship and compiance, incuding socia and abour aspects. Specificay, we wi investigate: The ambition eve per sustainabiity theme and appropriate programs, KPI s and targets; How targets are to be embedded in the annua appraisa of our staff and management; The need for a sustainabiity maturity adder to guide the efforts of our operating companies; The need for training and other engagement processes, incuding business and site eve activity, as we as web-based resources; How we can empower a empoyees to contribute to and be accountabe for our sustainabiity performance. We ook forward to report on the detaied strategy in our 15 CSR report. CSR Report 14 15

16 5. Deivering sustainabe soutions through our business Connect to better reiabiity, safety and cost-effectiveness Hot & Cod Surface Heating & Cooing Cabe Ducting At Wavin we care about the quaity of drinking water: it is the most precious of a natura resources. Our exten sive range of pipe systems sets the highest standards for safety and hygiene. Customers choose Wavin s drinking water systems because of: Avaiabiity of compete ead-free systems; Corrosion free: No scae buid-up since, smooth surfaces imit bacteria growth; Low environmenta impact - Wavin s pastic pipe systems for hot and cod instaation have a ower environmenta impact than those made from aternative materias; Easy and fast instaation; Designed and tested for a minimum ifetime of 50 years. Wavin s surface heating & cooing systems guarantee a comfortabe in door cimate, and save energy as we as costs. The ow-energy consumption makes Wavin s systems perfecty suit abe for using renewabe energy sources. Wavin s surface heating & cooing soutions hep the end-user in achieving their sustainabiity goas by: Reducing energy consumption by up to 37%; Reducing CO 2 emissions up to -%; Contributing to Green Buiding Certification. Wavin soutions can contribute up to 15-25% of GBC score (such as LEED and BREEAM). The teecommunications industry is innovating rapidy. Despite the growth in wireess networks, the demand for high-performance data cabe networks remains massive. Key characteristics of our cabe duct systems are their durabiity (onger ifetime) and they are easy to expand or upgrade with the newest state-ofthe-art technoogy. Wavin s teecommunications soutions benefit the end-user in: High-quaity ducts with a ong ifespan; no future costs of repairing and refiing when capacity has to be increased; Securing teecom networks to even the most remote areas. The customized soutions combined with the system s fexibiity in upgrading and expansions, creates a ong ife-span and sustainabe system use. 16 CSR Report 14

17 Storm Water Management Soi & Waste Fou Water Cimate change brings intense rainfa. This means increased threat of urban fooding. Manage excess rainwater effectivey and you boost sustainabiity. Wavin offers you compete soutions for rainwater drainage, ceaning, infitration and attenuation. Our systems are: Efficient in handing arge amounts of rainwater; Strong and robust, asting more than 50 years; Light weight and easy to insta: most do not require heavy equipment when instaing; Avaiabe with up to 100% recyced materia. When you discharge waste water from domestic, industria and commercia buidings, you need robust, reiabe and sustainabe systems. Pastic pipe systems are the proven sou tions. A specia ow-noise system is designed for user comfort, signifi canty reducing undesirabe noise from waste water systems. The sustainabiity benefits of our soi and waste systems are: A ow environmenta impact - Wavin s pastic soi and waste pipe systems made from PP and PVC have a ower environmenta impact than those made from ductie iron 1 ; Reduced weight compared to cast iron; The discharge system can ast over 100 years without corroding or needing repacement; High temperature and chemica resistance ensure the system s reiabiity, ife span and durabiity. Wavin has over 60 years of expe rience in the deveopment and pro du ction of innovative pipe and chamber systems. Transporting waste water from domestic, commer cia and indus tria buidings to treatment pants demands reiabe and durabe systems. You need to safeguard both human heath and the environment and do so at acceptabe cost. The comprehensive product range: Incudes recyced pastics where possibe; Is durabe, corrosion-free; Exceeds high requirements to safeguard human heath and the environment and do so at acceptabe cost; Makes it possibe to inspect and maintain the sewage transport systems which enabe a ong ife and high performance; Has fexibe connectors, making the instaation process easy. 1) Resuts retrieved from an independent study foowing ISO and 14044, conducted by VITO and vaidated by Denkstatt: Environmenta Product Decaration PP & DI; PVC & DI CSR Report 14 17

18 6. Our 14 performance 6.1. Introduction The 14 targets refects the perception of sustainabiity during the creation of the current strategic agenda in 08. Since 08, our interpretation of sustainabiity has evoved from a hygiene factor focusing on interna processes into a strong business driver. For Wavin, sustainabiity has become a driver for vaue creation rather than a too for image boosting and cost reduction. The focus is shifting from interna activities and cost reduction strategies towards a focus on better products adding vaue to customers and end-users Targets In 08 we formuated a set of environmenta reduction targets to be reached by 15, and we have been monitoring our progress in these areas since 08. These targets have been specified in reative figures so as to eiminate any effect of changes in production voume. In 12, some of targets for 15 were aready achieved. To continuousy chaenge the organisation in the fied of sustainabiity the management board introduced stretched targets. Wavin achieved significant progress in most indicators and has been abe to exceed our 14 targets for energy, carbon emissions and waste-to-andfi. However, our use of recyced materia in products decreased compared to ast year as a direct resut of changes in French egisation. Due to schedued maintenance, our water reuse equipment was inoperative at one of our pants, negativey impacting our water to sewer performance. We recognize that continuousy improving our sustainabiity performance is progressivey difficut. However, we remain committed to continuous improvement and wi work very hard to achieve the stretched targets we set for Environmenta performance Energy consumption & carbon emissions Energy is a substantia portion of direct costs when manufacturing pipes and fittings. Our energy consumption is an indicator of the efficiency of our processes and a key foca point for our environmenta and operationa exceence programs. For detais on our energy use and how we account for energy and carbon emissions, pease refer to the chapter About this report. Over the ast few years, we have invested significanty in new technoogy and new machines. On a group eve we set up a dedicated budget which can be used for energy-saving investments. We expect the effect of our investments in ceaner, more efficient equipment to increase as our production eves increase foowing further economic recovery. We wi continue to invest in ceaner equipment and new machines. CSR target Initia target Stretch target Reduce GHG emissions -% -% Reduce Energy usage -10% -13% Increase usage of recyced materias +50% +90% Reduce waste to andfi -40% -50% Reduce water to sewer -30% -50% Reduce ost time injury accidents Corporate Socia Responsibiity Targets Actua 14 Change Change Target Stretch target * 13* Reduce GHG emissions 390 kg/tonne -3.3% 17.1% % % 470 kg/tonne 403 kg/tonne Reduce energy usage 3.49 GJ/tonne -4.5% 10.0% 10% 13% 3.88 GJ/tonne 3.66 GJ/tonne Increase usage of recyced materias 93 kg/tonne -14,2% +38.4% +50% +90% 67 kg/tonne 109 kg/tonne Reduce waste to andfi 2.61 kg/tonne -10.3% 63.7% 40% 50% 7. kg/tonne 2.91 kg/tonne Reduce water to sewer 1.01 m 3 /tonne 49.6% 10.6% 30% 50% 1.13 m 3 /tonne 0.68 m 3 /tonne * Energy data has been updated foowing progressive insights. 18 CSR Report 14

19 By the end of 11, we exceeded the renewed target that was set for usage of recyced materias in that year. We increased the amount of recyced materia in some of our products, ike mutiayer pipes with a recyced inner core. To keep the target chaenging, we decided to set ourseves a stretch target to further increase our use of recyced materia by 90% by 15 as compared to 08. This stretch target proved to be too ambitious for 14. Compared to 13, we experienced a decrease in both the absoute amount of recyced materia and the ratio of recyced materia per ton production. This decrease can be reated to changes in French egisation concerning product requirements. Despite chaenging circumstances, we continue to operate under the stretch target we set for 15. Energy consumption (GJ) * 14 Direct Tota 514, , , , , , Heating oi 32,721,017 19,445 18,005 5,681 17, Natura Gas 474, , , , , , Renewabe sources 7,604 8,318 10,815 8,131 8,198 56, Indirect -Tota 1,278,809 1,092,799 1,173,548 1,150,948 1,113,237 1,016, Eectricity 1,278,809 1,092,799 1,173,548 1,150,948 1,113,237 1,016, Tota 1,793,137 1,544,559 1,645,575 1,549,171 1,448,545 1,430, * Energy data has been updated foowing progressive insights. CO 2 emissions (tonnes) Direct CO 2 (scope 1) 39,442 36,225 36,785 29,229 24,834 26, Indirect CO 2 (scope 2) 144, , , , , Other indirect (scope 3) 33,305 29,613 26,590 27,714 31, Tota 217, , , , , , Greenhouse Gas Emissions Energy consumption (Kg CO 2 / tonnes) (Production in tonnes) ,000 (GJ/tonnes) (Production in tonnes) 500, , ,000 0, , ,000 0, , ,000 0 Production voume Direct CO 2 (scope 1) Indirect CO 2 (scope 2) Other indirect (scope 3) Production voume Natura Gas (fossi fue) Renewabe Energy Eectric power Heating Oi (fossi fue) CSR Report 14 19

20 Recyced input materias per ton production (Kg recycate) 250 (Production in tonnes) 500,000 The diemmas we face: , ,000 0,000 Recycing and REACH Registration, Evauation, Authorization and Restriction of Chemicas (REACH) is a European Union Reguation of 18 December 06. REACH addresses the production and use of chemica substances, and their potentia impacts on both human heath and the environment Production voume 09 Post-producer recyced own Recyced bought-in Waste disposa Overa, our produced waste amounts to ess than 2% of our tota production. Our waste management program aimed at separating recycabe and non-hazardous waste at source has been effective. The amount of non-hazardous waste sent to andfis has decreased and our waste recycing increased. By taking environmenta effects into consideration during the product deveopment phase we aso imit the use of environmentay-harmfu materias. This comprehensive management of hazardous substances aso ensures our empoyees are not exposed to any unnecessary risks. In the Netherands, Germany and Sweden, we have aso been diverting our waste to energy incinerators after separating the recycabe waste. This practice has proven to be very effective in reducing our waste to andfi. We set ourseves a further stretched target in order to stimuate 12 more operating companies to adopt this practice ,000 0 Since 07 substances have to be registered at the European Chemicas Agency (ECHA) and are evauated regarding HSE aspects. Member states can request ECHA to pace substances on the candidate ist of Substances of Very High Concern (SVHC) in which case they get further investigation and coud be paced on the Authorization ist and eventuay go into a Ban/Restriction procedure. At present about 150 substances are on the candidate SVHC ist or have aready been banned/restricted. Compiance to REACH is considered an intrinsic part of our product stewardship. Through recycing projects initiated by Wavin, pastic products which have reached their end of ife are coected, sorted, enriched and processed in such a way that they can be used in the production of new Wavin products. As a resut, Wavin products require far ess raw materias than comparabe products. The advantages are cear as it eads to a reduction in waste, reduction in resource consumption and reduction in emissions reated to converting raw materias in our pants. Recyced pastics are processed in our products in such a way that enduser safety is guaranteed. The recyced pastics incude third party window frames or pastic pipes which were manufactured decades ago under the environmenta aws appicabe at the time of production. Since the introduction of REACH some of the materias used decades ago are no onger aowed, just as in the paper, gass and meta industries. However, a sma fraction of these materias coud be incuded in the pastics coected for recycing. It is CSR Report 14

21 Waste disposa per ton production (Kg waste) (Production in tonnes) , , , , , Production voume Recycabe waste Non-hazardous waste Hazardous waste technoogicay, and thus economicay, not feasibe to extract the banned materias from the recyced pastics. Water consumption and discharge Athough REACH is a strong too to protect users of substances and the environment it coides with the EU Sustainabe Deveopment target which requires maximum recycing and a ban on andfiing of waste. Shoud the European Commission insist on banning these egacy substances under REACH this wi impy that a pastics, paper and metas recycing in the European Union comes to a grinding stop. The European Commission is trying to sove this probem, but so far a soution is yet to be found. From our stakehoders we receive the message that we shoud pursue our ambition to increase the amount of recyced input materias. Using ony virgin materia woud very significanty impact our environmenta footprint over the ifecyce of our products. This poses a diemma for us as Wavin. On the one hand, we can continue to increase the amount of recyced input in our products where aowed by oca product requirements in order to further support recycing ambitions in Europe. On the other hand, we coud choose to ony work with virgin materia in order to imit our exposure to possibe, and from a recycing perspective, questionabe changes in egisation. At Wavin we use water mainy for the cooing of our production faciities. The majority of our ground water usage comes from two sites where we have geotherma cooing systems in pace. This enabes us to significanty reduce energy consumption and carbon emissions. Ground water is used to coo process water in a cosed oop process in which the two are competey separated so no contamination of the ground water can occur. Potabe water provided by utiity companies is spread eveny across our group. Our aim is to reduce our dependency on energy-intensive sources of water, such as those provided by municipaities, and to promote the use of natura sources such as groundwater. Many of our sites incorporate a cosed-oop water system in which water is brought in from natura sources, used for a variety of appications and then recyced by passing through fiters and a cooing process. In 11 a stretch target of -50% was set since the initia target of a 30% reduction in potabe water consumption had aready been reached. In 14, the water recycing unit in one of our sites had to be taken off ine for maintenance for a number of weeks, causing an increase in our 14 water consumption. Maintenance on that unit was competed and we expect the water consumption to decrease again in 15. CSR Report 14 21

22 Water consumption per ton production Water discharge per ton production (1,000 m 3 ) (Production in tonnes) ,000 (1,000 m 3 ) 7.0 (Production in tonnes) 500, , , , ,000 0, , , , ,000 0, , ,000 50,000 0 Production voume Ground & Surface water Water utiities Production voume Water to sewer Water to nature Water Source (x 1000 m 3 ) Water Utiities (Potabe) Ground & Surface Water 2,815 2,522 2,632 2,524 2,548 2,343 1,963 Water Discharge (x 1000 m 3 ) Water to sewer Water to nature 1,863 1,548 1,641 1,539 1,461 1,527 1, CSR Report 14

23 6.4. Socia performance Our Peope Heath and Safety The expertise, commitment, and we-being of our empoyees are critica to our success. To provide a working environment that fosters a strong team spirit and contributes towards our company s ong-term goas we are committed to the foowing principes: We foster positive empoyee and abour reations and hep our staff achieve their fu potentia by offering them training and deveopment opportunities; We promote a safe, heathy and productive work environment; We ensure a fair and diverse company cuture with no bias of any kind. Lost time incident frequency (LTIF) Heath and safety are essentia aspects of our business. We aso beieve that preventing heath-reated probems is the best course of action. Empoyees at most of our operating sites are offered various programs and measures that give them access to precautionary heathcare. These incudes sporting activities, programs to stop smoking, medica check-ups, fu vaccination programs, tips on heathy ifestyes and presentations on a variety of heath-reated topics. The safety of our workforce is of vita importance and we are fuy committed to minimizing risk and maximizing safety in the workpace. One of our key safety objectives is to reduce the number of accidents and especiay those that ead to absence due to accidents. We monitor our performance by tracking the ost-time incidents (LTIs) per 0,000 hours worked. By comparing the number of ost time incidents to the tota number of hours worked we take in consideration the concentration of activities at the ocation where the incident occurs. For exampe: one incident at a sma site might ead to a arger ost time incident frequency than 10 incidents at a very arge site, due to the number of hours worked. 1 Target* Wavin Group * Though we aim for a zero-accident work environment in the ong run, we set ourseves a target to keep LTIs beow 0.5 per 0,000 hours worked. CSR Report 14 23

24 In 14 the number of ost time incidents decreased from 0.8 to 0.6 per 0,000 hours worked. In order to further improve our safety cuture we have undertaken the foowing actions in 14 which wi continue we into 15: Our improved performance in 14 is a first indication that our increased investments and focus on safety is yieding resuts. Even with our current performance, Wavin sti outperforms industry peers and other industria companies. Safety is aways a topic for in-depth discussion on site, nationa, regiona and corporate agenda s; Diaogue with our management, staff and operationa staff on safety and accident prevention; Impementation of a company-broad benchmarking too, Internationa Safety Rating System; Review of our safety standards, organisation and reporting structures; Inventory and standardization of best practices; Standardization and ro-out of various training schemes; Introduction of group branding for Heath & Safety communication, WorkSafe. However, we regard decreasing our LTIF score as our absoute top priority and we beieve that our current performance needs to further improve. We beieve that a accidents can be prevented and the current LTIF score is not acceptabe. Therefore, we wi continue to invest in improving our safety cuture. We trust that with our corporate, regiona and oca management commitment we wi continue to improve our safety cuture and in turn our safety performance. WEAR YOUR HEAD PROTECTION ONLY USE THESE CUTTING TOOLS A operators MUST wear head protection in oading bay, on vehice bed or within two meters of traier. Unauthorised knives/snips are NOT to be used in Chippenham Distribution 24 CSR Report 14

25 Community invovement Wavin Poand: The City and the Water Wavin Poand worked together with the city of Buk to promote awareness of the history of the city. This foowed the archaeoogica discovery of an ancient water ine in the oca community. Wavin is committed to hep maintain the heritage of the community through education on the use of water, the water cyce and cimate change. This educationa initiative was awarded a prize from the charitabe foundation of Mexichem s parent company Kauz. At the end of 14, Wavin, together with a oca Dutch foundation, donated an extra amount to insta fiters in the systems so that the harvested water can be purified and used as drinking water. The project reached approximatey 5,000 chidren. WASH project in Burkina Faso Wavin has adopted part of a broad project in Burkina Faso. The tota project which was kicked off in 14, and targets more than 100 primary schoos and more than 900 heath faciities in 14, as we as more than 450 viages. The Wavin-Unicef Partnership Wavin and UNICEF have been working together to provide cean drinking water and proper sanitation for chidren since 05. The coa bora tion incudes three components: money, products and expertise Wavin s contribution wi enabe UNICEF to provide cean water, improved sanitation and hygiene education for 4 primary schoos, 10 heath centers and two viages in the Sahe region. This region was chosen because it is one of the two poorest regions in the country where a chid surviva indicators are the owest. In 14, the project in Bhutan was finaized, a rainwater harvesting systems were instaed and working propery. Wavin donated products, incuding Wavin AquaCe units to buid speciay designed rainwater buffers and Wavin Kanion roofgutters which were instaed to catch the rainwater and transport it to the buffers. UNICEF Bhutan and representatives from the Bhutanese Ministry of Heath heaviy invoved in the instaation, ensuring proper instaation and mainte nance of the systems. CSR Report 14 25

26 6.5 Human resources Headcount by empoyee contract 14 Introduction 14 was another chaenging year in which HR efforts continued to be focused on defining and impementing restructuring measures causing redundancies and other cost reductions. Support was provided for execution of Group strategic initiatives and efficiency programs which incuded strengthening saes and project seing capabiities and impementation of improvement projects in operations. New initiatives ike the introduction of the new Mexichem Code of Ethics and the aunch of the Wavin brand positioning Connect to Better contributed to a more engaged workforce. Optimization of the European manufacturing footprint ed to a number of production sites cosures whist moving their ines to other more speciaized or arger sites affecting empoyees numbers. Consutative bodies are invoved at the appropriate time as defined in oca reguations in case of significant organisationa changes and restructuring pans. Headcount by gender 14 Permanent 85% Temporary 4% Agency & short term support 11% Mae 80% Femae % Workforce per region Per 31 December 14, the Wavin Group empoyed 5,484 fu time equivaents compared to 5,541 in 13. Upward and downward changes in the number of FTEs were seen for a variety of reasons, such as restructuring in countries with difficut market circumstances ike The Netherands, Norway, France, Russia and Turkey. FTEs increased in countries where markets were starting to improve ike Denmark and the UK. In some cases, the number of FTEs was increased at the end of 13 as economic recovery for 14 was expected. In some regions, economic recovery expected by the end of 13 did not continue into 14 eading to a need to continue restructuring efforts over the course of 14. Workforce per region Region North West Europe 1,403 1,488 1,565 1,661 1,649 South West Europe 1,644 1,627 1,695 1,903 1,971 South East Europe ,024 1,104 1,4 Centra & Eastern Europe 1,294 1,226 1,251 1,304 1,356 Overseas and Other Tota FTE 5,484 5,541 5,788 6,221 6,448 Empoyees by age category as a % of tota empoyees: the average age within Wavin group is % 35% 30% 25% % 15% 10% 5% Wavin Group NWE Region SWE Region CEE Region SEE Region 0% < 25 years years years years >56 years 26 CSR Report 14

27 Workforce composition Performance Management and annua appraisa The graphs on page 26 offer some insight into the composition of our workforce. It remains our ambition to create a diverse, fexibe and engaged workforce. This is why we are interested in monitoring fu time vs part time empoyment, empoyment contract type, gender diversity, empoyee & management turnover and the age buidup of the workforce. The majority of the workforce (96%) works fu time. Labor and management reations Wavin continues its efforts to estabish good empoyee reations. This means that even when coective agreements are not avaiabe, we appy high standards to empoyee and empoyer reations. 50% of a empoyees are covered by coective bargaining agreements (52% in 13), 6,6% are party covered (4% in 13) and the remaining 43% are not covered (44% in 13). Mainy in the countries in Eastern Europe coective agreements on nationa or industry eve do not exist. In other countries empoyees are fuy covered but management is not. Performance management and individua deveopment continue to be the key eement of the annua appraisa process for a our empoyees and managers. Our efforts to train management in performing high quaity appraisas resuted in cearer objective-setting, in ine with the company s strategic targets, and continued focus on individua deveopment panning. In November, a HR managers were trained on the new Mexichem Taent Mode and performance management process which wi be introduced at the start of 15. In 14, 88% of our empoyees and managers received an appraisa compared to 87% in 13. Poand and Itay bue-coar workers received a job appraisa for the first time. Our group wide aim remains to have documented high quaity performance discussions for at east 90% of the popuation. Appraisa processes are not in pace in Ukraine, Sovakia, and Russia. In Ireand, Hungary and Romania, bue-coar workers were not yet incuded, but wi be in the coming years. Interna succesion and internationa assignments Notice period regarding operationa changes Wavin makes an effort to invove empoyees at an eary stage in cases of materia structura changes. Consutative bodies and union representatives are invoved where and when needed given context and nationa and European egisation. Peope deveopment As in previous years, we have made an effort to effectivey baance interna appointments with externa recruitment when fiing vacancies, especiay for senior management positions. The target is to sustain an interna succession rate of 70% for vacancies at midde and higher management eves. The company reaised an average interna succession rate of 65% over the three-year period 12-14, compared to 74% over the previous three-year period. Wavin s Management Deveopment program secures the avaiabiity of quaified peope that utimatey can fufi senior management positions. Management deveopment and eadership deveopment at Wavin focuses on attracting, deveoping and retaining the right managers and eaders to reaise current and future business goas. In order to achieve this we provide chaenging career opportunities and support vertica and/or horizonta career moves. Guiding principes are: we buid on strong capabiities, provide chaenges and new job experiences and beieve respectfu reationships are key for motivation and engagement. Interna succession at management eve Tota job changes Interna succession CSR Report 14 27

28 Hours of training Executives Senior Management Others Mae Femae Mae Femae Mae Femae Tota empoyees in category ,173 1,023 Tota empoyees trained , Tota training hours 301 1, ,543 11,117 Tota training hours on specific Human ,137 2,560 Rights subjects: CSR, Sustainabiity, HSE, Code of Conduct, Business Ethics In 14 outfow at senior management eve (130 positions) was 5%, significanty ower than in the turnover in 13 (12%). During the year, 9% of our senior managers were based outside their home country for internationa assignments (compared to 5.4% in 13). This increase is reated to the creation of two new regions outside Europe: the APAC region and Wavin Midde East, both headed by experienced Wavin managers. In addition, two commercia managers were appointed at head office to support the Marketing & Technoogy department. Due to the regiona set-up and various group-wide projects, more than 50% of Wavin s senior managers spend the majority of their time on internationa responsibiities and activities. It is our beief that working on internationa assignments or projects is an exceent way to reaise synergies within the group and nurture individua deveopment. This in turn wi ead to knowedge sharing and the exchange of best practices. It is expected that the number of internationa pacements wi increase as a resut of being part of the Mexichem group. New hires and empoyee turnover In 14, 12.5% new empoyees were hired compared to 8 % in 13, 22% was femae (13: 26%). Reativey more empoyees (61%) were hired in the in the younger age categories (< 35 years). This refects our aim for a heathy age buid up in Wavin Group. The empoyee turnover was 12.4% in 14 this is com parabe to the eves of 13 (14%). Empoyee turnover Vountary 50% 52% 41% Dismissed 37% 36% 46% Retired 10% 10% 9% LT disabed/deceased 3% 2% 5% Management potentias In 14, we continued to identify and deveop young management potentias for senior management positions and charted individua capabiities and ambitions. Assigning the right job opportunities to these taents is an on-going priority. In 14, 77 management potentias were identified, compared to 79 in 13. We beieve the poo of management potentias for senior management positions shoud be around 70 peope (equas 50% of the number of senior managers) in order to provide us with a proper number of potentia successors for senior management positions. As in previous years, regiona management and Corporate HR hed staff-panning meetings during which organisationa, succession and individua deveopment issues were discussed. Leadership program Wavin has an in-house eadership program caed Unrivaed Through Others, which aims to create a poo of young, skied, motivated potentias for future management positions. In October 14, in Dafsen, the Netherands a group of 15 coeagues from various functiona areas and countries, participated in this 6 day intense deveopment program. 28 CSR Report 14

29 Training and education We aim to know the ambitions and capabiities of our empoyees and to support their deveopment. Stimuating empoyees in their deveopment and earning remains important and therefore we continued our efforts on individua deveopment panning and provided training programs. Exampes of corporate programs are: On-ine anguage earning: among others French, Engish and Spanish; Project management; Project seing: a program consisting of commercia skis assessment and training & coaching as a foow up; Fundamentas of finance for non-financia managers; Negotiation skis. In 14 preparations were made to start with e-earning and bended earning in 15. An extensive benchmark research and provider seection process were finaized. Launch of the to be created on ine Wavin Learning Centre is expected for Q1 15. During the year, empoyees attended a arge variety of interna and externa education programs for an average of 2 days per empoyee, which is at the same eve as in 13. Workforce diversity and equa opportunity Wavin consciousy embraces diversity in the workforce. We beieve that empoyees with different persona and professiona backgrounds bring new perspectives and ideas to the business. As the company deveops new business areas, diversity wi bring additiona vaue. Protection of the principes of equaity is anchored in the Mexichem Code of Ethics, which was introduced in Wavin Group in 14, repacing Wavin s Code of Conduct. A empoyees (incuding a agency workers) were trained and signed a Non-Confict of Interest Statement. This Code of Ethics incudes the prohibition of discrimination against any empoyee on the basis of gender. Consequenty, fair and equa pay for men and women is a matter of cause. Composition of governance bodies We regard Wavin to be a truy internationa and cuturay diverse company. On the eve of the Executive Committee and Management Board, 50% has a non-dutch nationaity. Wavin s wider senior management popuation has a diverse internationa composition as we. Senior managers with a nationaity different to the nationaity of the country where they are based are regarded as non-oca. The share of nonocas is 8.5%; this is a simiar eve as in 13. Women in senior management positions In % of the senior managers was femae compared to 6.2% in 13. The aim is to increase the number of femae managers in the company. Women in senior management positions year headcount women % % % % Incidents of discrimination and grievances Wavin strongy beieves that any form of discrimination incuding, but not imited to, gender, reigion, ethnicity, sexua orientation, handicaps and age, shoud be banned and the company has incorporated this beief in the Code of Ethics. Wavin companies compy with a reevant oca egisation regarding empoyment and discrimination. A process to report incidents of discrimination is incuded in the Wavin Group Whiste Bower procedure. Over 14 no incidents were reported. Human rights During the reporting year, none of Wavin operating companies has been subject to a human rights review. In the UK, a forma procedure is in pace to dea with potentia human rights grievances and compaints. No officia grievances were fied. Representative consutation Wavin companies have forma processes in pace to inform, consut and invove empoyees and their representatives on reevant issues. A European Consutative Counci does exist and provides a forum for discussing company issues beyond nationa borders with the Management Board. In 14, there was again cose cooperation between the consutative bodies and executives regarding the execution of the Wavin strategy and our sustainabiity efforts. CSR Report 14 29

30 7. KPI Performance overview Energy and carbon emissions Functiona unit performance performance assurance Energy consumption GJ 1,4,359 1,430,353 Yes CO2 emissions (Scope 1,2 and 3) tonnes CO2 158, ,518 Yes Energy consumption GJ / ton production Yes CO2 emissions (Scope 1,2 and 3) reative to production KG CO2 / ton production Yes Recyced content Functiona unit performance performance assurance Recycing - incuding own rework Ton 63,644 65,734 No Recycing - excuding own rework Ton 37,876 42,443 Yes Recycing - incuding own rework reative to production KG recyced materia / ton production No Recycing - excuding own rework reative to production KG recyced materia / ton production Yes Water consumption Functiona unit performance performance assurance Water utiities (potabe) 1000 s m No Ground & surface water 1000 s m 3 1,963 2,343 No Water utiities (potabe) reative to production m 3 (1000 s) / ton production No Ground & surface water reative to production m 3 (1000 s) / ton production No Water discharge Functiona unit performance performance assurance Water to sewer 1000 s m Yes Water to nature 1000 s m 3 1,874 1,527 No Water to sewer reative to production m 3 (1000 s) / ton production Yes Water to nature reative to production m 3 (1000 s) / ton production No Waste Functiona unit performance performance assurance Waste recycabe Tons 6,335 5,601 Yes Waste Hazardous Tons Yes Waste Non- hazardous waste Tons 1,062 1,138 Yes Waste recycabe waste reative to production KG / ton production Yes Waste Hazardous waste reative to production KG / ton production Yes Waste Non- hazardous waste reative to production KG / ton production Yes Socia KPIs Functiona unit performance performance assurance Lost time injury frequency Lost time injury accidents per miion hours worked Yes Human rights review Number of operating companies reviewed in reporting year 0 0 No Human rights grievances reported Number of individua grievances fied 0 0 No HR - FTE Fu time empoyee equivaents 5,484 5,541 Yes HR - Headcount by empoyment contract - Permanent Percentage based on headcount 85% 88% Yes HR - Headcount by empoyment contract - Temporary Percentage based on headcount 4% 2% Yes HR - Headcount by empoyment contract - Agency & short term Percentage based on headcount 11% 10% Yes HR - Headcount - Mae Percentage based on headcount 80% 80% Yes HR - Headcount - Femae Percentage based on headcount % % Yes HR - Empoyees < 25 years Percentage based on headcount 5% 5% Yes HR - Empoyees years Percentage based on headcount 22% 22% Yes HR - Empoyees years Percentage based on headcount 27% 29% Yes HR - Empoyees years Percentage based on headcount 30% 30% Yes HR - Empoyees > 56 years Percentage based on headcount 17% 14% Yes HR - Coective bargaining agreements - fuy covered Percentage based on headcount 60% 52% No HR - Coective bargaining agreements - partiay covered Percentage based on headcount 8% 4% No HR - Coective bargaining agreements - not covered Percentage based on headcount 32% 44% No HR - Appraisas Percentage based on headcount 80% 87% No HR - Average interna succession rate Average succession rate over ast years 65% 74% No HR - Outfow senior management Percentage based on headcount senior managers 5% 12% No HR - Senior managers on internationa assignments Percentage based on headcount of senior managers 8% 5,4% No HR - New hires Percentage based on headcount 12% 8% Yes HR - Femae new hires Percentage of tota new hires based on headcount 22% 26% Yes HR - Femae new hires on manageria eve Percentage of tota new manageria hires based on headcount 0% 26% No HR - Percentage new hires younger than 36 Percentage of tota new hires based on headcount 61% 65% Yes HR - Empoyee turnover - Vountary Percentage of tota eavers based on headcount 50% 52% Yes HR - Empoyee turnover - Dismissed Percentage of tota eavers based on headcount 37% 36% Yes HR - Empoyee turnover - Retired Percentage of tota eavers based on headcount 10% 10% Yes HR - Empoyee turnover - LT disabed/deceased Percentage of tota eavers based on headcount 3% 2% Yes HR - Management deveopment potentias Headcount No HR - Average days training per empoyee Tota hours training divided by headcount No HR - Internationa composition executive committee and management Percentage non- Dutch nationaity based on headcount 50% 50% No HR - Senior managers stationed in non- native country Percentage based on headcount of senior managers 8.5% 8.5% No HR - Femae senior managers Percentage based on headcount of senior managers 5.4% 6.2% No HR - incidents of discrimination Tota incidents 0 1 No For the assurance report, pease refer to page CSR Report 14

31 8. About this report Target audience We report our sustainabiity poicy and the associated resuts to a stakehoders. Our stakehoders incude, amongst others, our empoyees, customers, suppiers and contractors, sharehoder, organisations active in the construction and rea estate vaue chain, NGOs, and pubic authorities. Materiaity The topics presented in this report and incuded in our sustainabiity strategy 15- are seected on the basis of (1) our business mode, (2) our vaue chain anaysis, (3) indirect stakehoder inputs and (4) a materiaity anaysis. The reporting process and definitions used for this report are formaized in our sustainabiity reporting manua. This manua provides guidance for a our operations on how to measure, cacuate, and estimate data. In 14, no changes were made in our sustainabiity poicies, definitions and measuring methods. Reporting period and reporting frequency This report presents both quantitative and quaitative data for the caendar year 14. A operating companies report quartery on the key sustainabiity areas of safety, CO 2 emissions, water consumption and discharge, recycing and waste. A other data is reported annuay. During 14, an interna materiaity anaysis was performed as groundwork for our strategic agenda for 15-. Desk research provided us an initia materiaity ranking, which we vaidated by interna stakehoders. The issues isted beow are considered inherent to good business practices and mandatory for ega, reputationa or other reasons important to Wavin. Therefore these issues are not potted in the materiaity matrix. Adherence to aws and reguations, amongst others REACH; Anti-corruption and anti-competitive behaviour; Good governance and code of ethics; Business ethics; Non-discrimination. The remaining materia topics are potted in the materiaity matrix (see page 32). Reporting criteria GRI 3.1 Appication eve A Target setting and management remuneration To ensure management s actions towards continuousy improving our CSR performance are recognized, senior management short term incentive schemes incude nonfinancia targets. Members of the Management Board, the Executive Committee and empoyees within the Group have, in addition to their operationa deveopment and career goas, quantified CSR targets inked to their individua objectives and bonus schemes. Pay-out of CSR reated bonuses wi ony occur if the quantified site, regiona and/or group threshods are met in a given year. Reporting boundaries and comparative data The boundaries of the reported environmenta performance incude a our manufacturing sites where Wavin has operationa contro and their adjacent operating offices. Socia and safety performance data incudes a Wavin personne. Since 09, our annua sustainabiity reports have conformed with the Goba Reporting Initiative (GRI) guideines. Our 14 reporting is in ine with GRI eve A, which means we have reported on a the materia KPI s as defined by the GRI 3.1 framework. In this report we incude ony key information. Other information which is to be reported under the GRI 3.1 is avaiabe in the GRI 3.1 reference tabe which can be found at sustainabiity.htm. Entities of Wavin that are divested (a fu sae whereby Wavin no onger retains a direct or indirect controing interest) are excuded from the sustainabiity reporting scope for the entire year in which the divestment took pace. One faciity was cosed during the year and the historica figures have been restated to refect this. When changes take pace, this wi be discosed at the appicabe sections in the report. CSR Report 14 31

32 Materiaity matrix Importance to stakehoders Heath & safety 2 Energy consumption 3 Training and deveopment 4 Recycing 5 Emissions 6 Diversity and equaity 7 Sustainabe product offering Buiding product abeing and certification 9 Waste 10 Transport 11 Responsibe suppy chain Importance to Wavin In the tabe beow you can see how the resuts of the materiaity anaysis are funneed in to the sustainabiity strategy. Orientation Strategic area Theme Materiaity Matrix Sustainabe organisation Responsibe empoyer H&S Operations Heath & safety Engaged empyees Training and deveopment Producing responsibiity Reducing our footprint Diversity and Equaity Energy consumption Emmissions Waste Water consumption Transport Recyced content Recycing Sustainabe soutions Reducing our cients footprint Sustainabe products Sustainabe product offering: for our customers sub-issues, REACH, LCA, LEAD/BREAM Sustainabe use Energy efficiencyof buiding products; Product durabiity; Product quaity and safety Buiding product abeing and certification Taking our socia responsibiity Community invovement Community invovement Responsibe suppy chain Suppy chain management 32 CSR Report 14

33 Reporting process Data coection takes into account our organisation s structure. Both quaitative and quantitative information is reported by operating companies to the Group. At regiona and factory eve, responsibiity for sustainabiity reporting is deegated to the HSE community. HSE Data is consoidated and vaidated first at regiona eve and then consoidated and further vaidated at Group eve. HR data is reported and consoidated at the country eve before being consoidated at the eve of head office. This data is reported by the HR representatives. production has. Our focus on owering carbon emissions is wider than merey our injection mouding and extruding machines. We have continued the optimization of our auxiiary systems such as ighting, compressed air, heating and cooing in severa of our sites Our other indirect energy consumption and carbon emissions (Scope 3) mosty reate to freight of finished products to our customers. We have incuded ony those emissions for freight, which are not outsourced. We continue to investigate which options are avaiabe to us to reduce emissions from freight. Reporting indicators Carbon emissions For our main indicators we provide further insight beow. Where reevant, figures are presented in a reative way (using percentages and ratios) to make it possibe for readers to monitor and measure progress year-on-year, uness the reporting criteria requires absoute figures to be discosed. Safety For safety we defined our Lost Time Incident Frequency (LTIF) as the number of accidents eading to ost time per 0,000 man-hours worked by Wavin and contractor empoyees. Accident data are based on actua occurrences and are never extrapoated or estimated. Reported hours are measured, cacuated or estimated. Energy consumption Our direct energy consumption (Scope 1) mainy concerns natura gas consumed in factories and fossi fues used by company owned cars and forkift trucks. We continuousy seek to improve both the fue efficiency and the fue mix used for company owned cars and forkift trucks. In 13 corporate guideines for car ease program reduced the imit for CO 2 emission from 160 to 130 grams per kiometer as part of our continued efforts to further reduce the CO 2 emission. Our most significant indirect energy consumption and carbon emissions (Scope 2) resut from eectricity consumption by extruders and injection mouding machines. In addition to investments in new machines we continued our initiative to repace DC engines with AC engines to optimize energy consumption on our extruders in various Wavin accounts for its greenhouse gas emissions using the corporate standard of the Greenhouse Gas Protoco. The Greenhouse Gas Protoco (GHG Protoco) is the most widey used internationa accounting too for government and business eaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protoco, a decade-ong partnership between the Word Resources Institute and the Word Business Counci for Sustainabe Deveopment, is working with businesses, governments, and environmenta groups around the word to buid a new generation of credibe and effective programs for tacking cimate change. Our energy consumption and greenhouse gas inventory is based on the GHG Corporate Standard Protoco as issued by the Word Business Counci for Sustainabe Deveopment and the Word Resource Institute in 04. For greenhouse gas emissions we have chosen to report ony on CO 2. Other greenhouse gases, such as CH 4 (methane), N 2 O (nitrous oxide) are excuded from our emissions inventory as they are considered non-materia. Our reporting scope incudes our direct carbon footprint (Scope 1 emissions) indirect emissions from purchased eectricity (Scope 2 emissions), and seected Scope 3 emissions being externa ogistics by Wavin trucks (the Wavin distribution network), water to sewer and waste to andfi. The GHG Corporate vaue chain (Scope 3) accounting and reporting standard for fu Scope 3 reporting has not been impemented. We excuded energy in the category heating and cooing in the cacuation of our carbon footprint. Tota energy consumption in this category is smaer than 1.6% of our tota energy consumption. CSR Report 14 33

34 The basis for consoidated energy consumption and carbon emissions is activity data which in turn is based mosty on meter readings, invoices, and data provided by suppiers. Where reiabe data is not avaiabe, we use cacuations or estimations using reiabe methods and input data. Energy consumption is converted into carbon emissions using conversion factors. Wavin used the foowing conversion factors: Scope 1: United Kingdom s Department for Environment Food & Rura Affairs (DEFRA) 11 Guideines to Defra / DECC s GHG Conversion Factors for Company Reporting Annex 1 Scope 2: Internationa Energy Agency s CO 2 Emissions from Fue Combustion (11 Edition) Scope 3: United Kingdom s Department for Environment Food & Rura Affairs (DEFRA) 11 Guideines to Defra / DECC s GHG Conversion Factors for Company Reporting Annex 1 Externa assurance of this report Wavin obtained assurance from an independent assurance provider for its 12 and 11 report. As sustainabiity data is used for manageria decision making, its reiabiity needs to approach that of financia information as much as possibe. This impies that our sustainabiity data reporting shoud be abe to pass stringent examination. Starting with the 13 report, we therefore requested Deoitte to assure seected performance indicators incuded in this sustainabiity report. Deoitte assured the indicators as isted in the Performance Overview tabe on page 30. Deoitte s imited assurance report is incuded on page 35. The indicators that are in scope for externa assurance were seected as these: Are the Key Performance Indicators formuated in our strategy; Were in 08 considered as the most materia indicators to our stakehoders; Are incuded in variabe incentive schemes. We continue to use conversion factors set in 11 as we aim to track our own performance without interference from changes in the grid eectricity mix or changes in DEFRA conversion factors. Conversion factors wi be updated at the beginning of a new strategic agenda or when emission sources start to make use of renewabe energy sources. Recycing As a resut, we are satisfied that the assurance scope serves a rationa purpose. Contact and questions We appreciate feedback on this report. For feedback and/or questions, pease contact us at sustainabiity@wavin.com. Recycing reates to used pastic materias which are coected or purchased from externa sources. 34 CSR Report 14

35 9. Assurance Statement Independent imited assurance report on the Key Performance Indicators incuded in the annua CSR report 14 of Wavin N.V. To the stakehoders of Wavin N.V. Engagement and responsibiities We have performed a imited assurance engagement on the Key Performance Indicators as isted in the kpi performance overview of the annua CSR 14 report of Wavin N.V., Zwoe, on page 30 where yes is stated in the coumn Assurance 14 (further: the KPI s ) Concusion On the basis of the procedures we have performed nothing has come to our attention that causes us to beieve that the KPI s in scope of our assurance engagement, as incuded in the annua CSR report 14, have not been prepared in a materia respects in accordance with the GRI G3.1 Sustainabiity reporting guideines. Comparative period We did not carry out any imited assurance procedures on the kpi s of the comparative periods up to 12. Our work as a basis for our concusion Our work was carried out by a mutidiscipinary team of experts in assurance and Corporate Socia Responsibiity. It is our responsibiity to issue a imited assurance report on the annua CSR report 14. We have conducted our examination in accordance with Dutch aw, incuding Standard ISAE 3000 Assurance Engagements Other Than Audits or Reviews of Historica Financia Information. This requires that we meet the appicabe ethica requirements. Our work performed mainy consisted of the foowing procedures: Reviewing the processes for data coection and processing of the other information, incuding the aggregation of data to information as incuded in the annua CSR report 14; Performing anaytica procedures (anaytica reviews); The annua CSR report 14 incudes forward-ooking information in the form of objectives, expectations and ambitions. It is inherent in such information that its reaization is uncertain. For that reason we do not provide assurance on any forward-ooking information. We beieve that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Standards appied by Wavin N.V. The management of Wavin N.V. is responsibe for the preparation of the annua CSR report 14 and the information incuded in it, in accordance with the accounting poicies as presented on page 31 of this report. This responsibiity incudes the design, impementation and maintenance of a system of interna contros reevant for preparing the annua CSR report 14 free from materia misstatements due to fraud or error, the seection and appication of acceptabe reporting criteria for corporate sustainabiity reports, and the preparation of estimates that are reasonabe given the circumstances. Amsterdam, June 5, 15 Deoitte Accountants B.V. The nature and scope of our work was more imited than an engagement to obtain reasonabe assurance and can ony resut in a concusion that provides imited assurance that the annua CSR report 14 is not materiay misstated. This provides ess assurance than an audit. B.E. Savert CSR Report 14 35

36 If you have any questions about the content of this report pease contact us: Water management Heating and cooing Water and gas distribution Waste water drainage Cabe ducting Wavin P.O. Box AD Zwoe The Netherands Phone +31 (0) Internet E-mai Wavin has endeavoured to fufi a ega requirements reated to copyright. Anyone who, despite this, is of the opinion that other copyright reguations coud be appicabe shoud contact Wavin June 15