Action on Sustainability
Sustainability is an integral part of Kendrion’s overall business strategy. Kendrion’s Corporate Social Responsibility (CSR) programme is aligned with Kendrion’s strategic pillars ‘Simplify, Focus and Grow’ and supportsthe development of Kendrion’s business in a responsible and sustainable way.
The three pillars of value creation are: Natural Capital, Social and Human Capital and Responsible Business Conduct. They form the basis of Kendrion’s CSR programme. The CSR programme reflects Kendrion’s mission and commitment to conduct business in a responsible and sustainable way and aspires to strike the right balance between long-term value creation and profitability on the one hand and the objective of playing a meaningful role in addressing key societal and environmental matters on the other. This means strategic decisions are taken based on a range of financial and non- financial considerations. Key principles and measurable targets support the Kendrion CSR programme.
The Natural Capital pillar focuses on improving Kendrion’s environmental performance and its ambition to reduce its environmental footprint. Material themes for the Natural Capital pillar include energy consumption, CO2 emissions and waste management.
Energy consumption & CO2 emissions
Kendrion aims to reduce the amount of energy used during its production process and its CO2 emission. Kendrion applies an environmental reporting system that tracks the CO2 emissions and energy consumption of all the production plants. Year-on-year, Kendrion focuses on improving the production processes with the overall objective of reducing the environmental footprint of the production plants. The global certification ISO 50001 Energy Management System supports the production plants in their efforts to use energy more efficiently by developing and maintaining an energy management system. Kendrion’s environmental management systems are in accordance with ISO 14001. ISO 14001 Environmental Management Systems specifies requirements for an environmental management system in order to enhance environmental performance. Nine Kendrion production plants are ISO 50001 certified and all plants except for Mishawaka are ISO 14001 certified. Kendrion’s drive to use energy efficiently and reduce CO2 emissions is reflected in a range of activities and investments. Targeted actions to reduce energy consumption include the application of technologies such as high-pressure air, electric devices and other efficient production equipment for various production lines. Other efforts aimed at reducing production-line energy consumption include installing air-conditioning and ventilation that is more efficient and extending LED lighting to certain additional production areas. Activities aimed at reducing CO2 emissions include using recycled paper, concluding or extending additional CO2 neutral energy contracts.
Kendrion is committed to continuously improving its management of all waste throughout its lifecycle and to helping reduce waste in order to minimise its adverse impact on the environment. This involves the minimisation and responsible disposal of waste related to production. Kendrion’s environment management systems are set up in accordance with the global certification ISO 14001 (all production plants except for Mishawaka are ISO 14001 certified) and the certified plants maintain effective records of their production and processing of all waste and work exclusively with certified waste processing companies when this is required pursuant to local regulations. New waste reduction measures must be implemented each year as part of the ISO 14001 certification process.
Social and Human Capital
The Social and Human Capital pillar concerns people’s competences, capabilities and motivations. Material themes for the Social and Human Capital pillar include community connection, health & safety, diversity and inclusion and company culture.
Local employer and a good neighbour
Kendrion maintains strong ties to the communities in which it operates by encouraging an open dialogue with local management and through Kendrion’s long-standing commitment to being a local employer and a good neighbour.
Kendrion values the social good that can be achieved by demonstrating initiative and taking a long-term perspective. Kendrion supports the economic and social well-being of the local communities in which it operates through Together@Kendrion and other efforts initiated by the local management.
In addition to sponsoring and financially supporting various good causes, Kendrion’s employees are encouraged to invest personal time in the local communities by taking part in fundraising activities and volunteering at events.
Health and Safety
Safety is given the highest priority with respect to every aspect of Kendrion’s operations. Kendrion is committed to providing a safe and healthy workplace for all employees by implementing the most stringent quality and safety standards to avoid any potential risks to people, communities and the environment. Kendrion’s employees are periodically trained to implement the best sustainability practices. The health and safety of employees are essential to the successful conduct of Kendrion’s business and are in the best interest of Kendrion’s other stakeholders.
In addition to certain centrally coordinated health and safety- related initiatives, day-to-day responsibility for health and safety is concentrated within the business units in which health and safety are managed systematically and in a standardised manner with clear rules and procedures based on recognised industry standards and best practices that are laid down in Health, Safety & Environmental (HSE) policies. Each production plant further implements tailored initiatives to enhance their HSE standards depending on plant-specific needs, production lines and technologies. With HSE audits, the implementation and compliance with HSE policies are assessed at regular intervals.
Diversity and inclusion
Kendrion believes in the strength of a diverse workforce. Kendrion is committed to attracting and retaining a diverse global workforce through its employment strategy. Kendrion’s workforce in 2018 comprised 37 nationalities (2017: 38) employed in 10 countries. 51% of our workforce is female. Kendrion continues to undertake action to further improve diversity in technical and non-technical roles and at all levels of the organisation.
Company culture and ethical behaviour
Kendrion believes it is important that all activities are conducted with integrity and in a transparent manner. To this end, Kendrion fosters a culture in which shared norms, universal ethical values and behaviours are the standard. Shared norms, ethical values and expected behaviours are laid down in a set of internal policies and procedures that form part of the Global Legal Compliance and Governance Framework (GLC&GF). In addition to setting norms, values and expected behaviours, the GLC&GF is aimed at ensuring compliance with applicable laws and regulations.
The GLC&GF includes the following key policies and procedures: Code of Conduct, Anti-Bribery and Anti- Corruption Policy, Speak-up Procedure, Competition Compliance Manual, Insider Trading Code, Data Protection Governance Guidelines, Personal Data Breach Reporting Procedure, Supplier Code of Conduct and related internal policies and procedures.
Kendrion considers it essential that every employee understands, complies with and conveys the shared norms and universal ethical values and behaviours as laid down in the policies and procedures of the GLC&GF. The policies and procedures of the GLC&GF are fundamental to ensuring responsible business conduct. It is the responsibility of senior management to lead by example and to ensure that all Kendrion employees are aware of the GLC&GF and behave in accordance with the spirit and the letter of Kendrion’s policies and procedures.
Responsible Business Conduct
The Responsible Business Conduct pillar focuses on business conduct and integrity, accountability and transparency. Material themes for the Responsible Business Conduct pillar include supply chain management and anti-bribery and anti- corruption.
Supply chain management
Kendrion operates as part of a supply chain with a central focus on manufacturing and production processes. Kendrion and other parties forming part of the supply chain are collectively responsible for maintaining the quality and sustainability of the products in the supply chain. All parties forming part of the supply chain play a role in addressing major issues that affect the supply chain as a whole.
Kendrion intends to play a meaningful role in the supply chain in which it is active. In many instances, Kendrion is a relatively minor link in the supply chain. In order to achieve realistic results, it is of great importance that Kendrion continues the dialogue with its suppliers and, in the selection and assessment of suppliers, continues to consider their performance with respect to sustainability.
Supplier Code of Conduct and implementation audits
The Kendrion Supplier Code of Conduct requires suppliers to accept their responsibility for matters concerning the environment, human rights, working conditions and fair trade. Kendrion regularly conducts implementation audits to review whether suppliers comply with the standards and principles of the Supplier Code of Conduct. Audits that reveal that the relevant supplier does not meet the requirements of the Supplier Code of Conduct are followed by a meeting to prepare a remediation plan. Failure to adequately follow up the remediation plan may result in the termination of the relationship with the relevant supplier.
Anti-Bribery and Anti-Corruption
Kendrion does not tolerate bribery or any form of corruption. Bribery can include the offering, promising or giving of payments or other advantages to any person (including government officials or public officials) to influence a business outcome improperly, but it also means accepting payment or advantages given to influence a business outcome improperly. Integrity of financial reporting is also a key principle. The Kendrion Anti-Bribery and Anti-Corruption Policy specifically addresses these matters.