Sustainability mega forces and trends
Some of the relevant major trends in the world are:
- A rapid growth of world population, especially in emerging markets
- An increasing scarcity of natural resources;
- The transition to more sustainable energy;
- Urbanisation;
- Climate change;
- Increased transportation needs of people and goods; and
- Scarcity of highly educated (technical) people.

Some of these trends, such as the scarcity of natural resources, could in the longer term become a threat to the growth of Kendrion’s business and therefore need to be addressed in a timely manner. These trends also offer opportunities for Kendrion, however. Utilising such opportunities and using scarce energy and other natural resources in a responsible way will, in the long run, make an essential contribution to the creation of value for all Kendrion’s stakeholders. CSR and sustainability play therefore an important role in the Kendrion strategy.

CSR Mission
It Kendrion's mission that Corporate Social Responsibility (CSR) and sustainability are intrinsic, integral elements of Kendrion’s local operations. For Kendrion, CSR means conducting business with consideration for climate effects and energy sources, with a feeling for people and the environment, and on the basis of a responsibility for the chain in which the company operates. This form of entrepreneurship pivots on the creation of multiple value – and consequently not just Profit, but also People and Planet.

CSR Strategy
Kendrion has formulated the following general CSR strategy, based on its mission, overall strategy and the mega trends listed above.

Sustainability is at the core of many of the company’s products and innovations. Kendrion and its highly motivated staff exploit the specific expertise and experience available within the company as a means of increasing safety and substantially reducing emissions and fuel consumption. Kendrion is inspired by the desire to secure a sustainable and ‘green’ environment for generations to come, fully appreciating and assuming its responsibility for achieving this objective.

Kendrion endeavours to reduce waste and make efficient use of energy, and encourages the company’s employees to make continual organisational and technical improvements to environmental procedures. During the design phase and technical planning Kendrion takes due account of the consequences for the environment. This relates not only to the reduction of harmful emissions and the achievement of a lower environmental impact, but also to the retention of the company’s good reputation. As a company Kendrion bears a social responsibility that necessitates attention to environmental issues when assessing processes.

Transparency and chain responsibility are important issues for Kendrion. Kendrion attaches great importance to good relationships with the company’s customers, employees, suppliers, other business partners and the communities where Kendrion is active. Cooperation and consultations are essential if Kendrion is to fulfil its ambitions.

As a first step, the CSR Board organised a number of workshops with the support of an external CSR consultant, with a view to translating the general strategy into specific targets and initiatives. The key issues for Kendrion’s own business processes were identified by reference to the nature of Kendrion’s activities and Kendrion’s potential impact and influence in the chain in the near term and the long term. Next, maximally specific targets and KPIs were formulated for those key issues. The key issues, KPIs and targets were discussed and endorsed by the Executive Committee and the Supervisory Board, and are evaluated annually on the basis of the results achieved and where necessary adjusted as proposed by the CSR Board.

Key issues
The key issues for Kendrion’s internal business processes, also considering the major trends, include:
- Environment (energy and emission reduction);
- Supply chain responsibility;
- Labour standards (including, but not limited to health & safety);
- Community investment;
- Business ethics; and
- 'Green' products.

Ambition
Kendrion wants to pursue sustainability at an even more strategic level. In other words, how can Kendrion align its core business and products more closely with sustainability in terms of its use of materials, its footprint and product proposition in its markets. And equally, how can the company maximise its CSR effectiveness and achieve the greatest impact with its limited capacity and resources. In addition, Kendrion would like to prepare for integrated reporting guideline initiatives. Kendrion will start to explore these possibilities in 2013. This will of course take time and it is not possible at present to state when the results of these studies will be available. The outcome of these studies will provide a basis for defining further long-term targets at a strategic level.

UN Global Compact
Kendrion joined the UN Global Compact in September 2009. The UN Global Compact is the world’s largest network initiative that unites companies, UN organisations and civil society in support of ten principles encompassing human rights, labour, the environment and sound business practices. Kendrion endorses these principles.

CSR Board
In 2011, the Executive Committee decided to give further shape to Kendrion’s CSR activities by measures including the appointment of a CSR Board. The Board is comprised of representatives from the business units and a number of corporate departments. The Board formulated a CSR ambition statement and specified the key issues, targets and key performance indicators (KPIs) for 2012. Kendrion’s performance in 2012 is explained and described in more detail in the CSR Report 2012. Kendrion has specified a new set of targets for 2013, most of which focus on the key issues addressed in 2012. Kendrion also intends to increasingly align its overall strategy to sustainability and CSR issues and targets, and will initiate some studies to examine this approach.