CSR MANIFEST WE INVEST IN THE ENVIRONMENT A healthy environment is the condition to all life and activity. At Sioen, we want to contribute to solving the challenges our environment faces today: climate change, search for alternative sources of energy, use of less raw material, reduction of waste and emissions, a.o. PROTECTION THROUGH INNOVATION OUR BUSINESS IN BRIEF Annual results 2014 MILLION EUR (%) Net sales 326.6 +1.1 EBT 23.8 +19.8 EBITDA 48.8 +19.4 Group profit 16.5 +15.5 Proposed dividend 0.37 FTE 3 477 2000-2014 sales (in €m) 350 300 250 200 150 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 100 2014 sales breakdown by division Chemicals: 12.0% 2 Apparel: 32.2% Coating: 55.8% * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. manifest will be adapted accordingly. CSRThis MANIFEST WHO WE ARE IN 3 DIVISIONS COATING DIVISION World market leader in technical textiles 55.8% 677 9 TOTAL COMPANY SALES PERSONS COMPANIES 4 in COUNTRIES SPINNING, WEAVING, COATING, FINISHING This division focuses on yarns, woven fabrics, felts and coated technical fabrics. APPAREL DIVISION European market leader in technical clothing 32.3% 2 648 11 TOTAL COMPANY SALES PERSONS COMPANIES 8 in COUNTRIES INNER TO OUTER / MULTILAYER SPECIALIST This division specializes in high quality protective clothing for any working condition. CHEMICALS DIVISION Specialist in fine chemicals 12.0% 152 2 TOTAL COMPANY SALES PERSONS COMPANIES 2 in COUNTRIES PASTES, INKS & VARNISHES, INKS FOR LARGE FORMAT DIGITAL PRINTING DIY COLOURING SOLUTIONS * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. This manifest will be adapted accordingly. CSR MANIFEST 3 WHERE YOU MAY FIND US If you run into one of the following items, there is a good chance that the technical textile has been produced by Sioen’s Coating Division. Or if you encounter the following people (some encounters less happy than others!) their protective clothing or workwear may well have come from Sioen’s Apparel Division. In both cases, and for third party products too, the speciality pastes and pigments colouring them may have been produced by Sioen’s Chemicals Division. COATING DIVISION YARNS, WOVEN FABRICS, FELT AND COATED TEXTILES ARE USED FOR: ADVERTISING TRUCK STABLE PLAYGROUND FLEXI TANKS GEOTEXTILES BIOGAS OILBOOM CIPP WIND BREAK ROOFING PATCH SPORTSMAT INSULATION TENSILE ARCHITECTURE CAMPING FACADE AUTOMOTIVE 4 CSR MANIFEST TEABAG APPAREL DIVISION CLOTHING IS WORN BY: FIRE FIGHTERS POLICE FORCES MARITIME WORKERS FORESTERS FOOD PROCESSORS FOR MORE INFORMATIONS ON THE PRODUCTS, CHECK OUR WEBSITE WWW.SIOENAPPAREL.COM CONSTRUCTION WORKERS FARMERS OR CHECK PAGE 13 FOR MORE INFOS CHEMICAL DIVISION PRODUCTS SOLD OUTSIDE OF SIOEN INCLUDE: INKS FOR WALLPAPER AND LAMINATED FLOORING ANTI-GRAFFITI VARNISH PIGMENT PASTES FOR COLOURING FABRICS, FLOOR AND WALL COVERINGS DIGITAL PRINTER INKS DIY PAINT REMOVERS AND CLEANING AGENTS FOR MORE INFORMATION ON OUR MARKETS, CHECK OUT OUR WEBSITE WWW.SIOENCHEMICALS.COM OR CHECK PAGE 13 FOR MORE INFOS. CSR MANIFEST 5 CEO SPEAKING “protection through innovation” Dear Reader, At Sioen, we recognize all different cultures and embrace a variety of values within our global organization. We respect all cultures and the diverse nature of our workforce and customers. We deem certain principles to be universal: we expect all our suppliers and manufacturing both in Europe and overseas to adhere the following principles and to demand the same from their suppliers and subcontractors. Sioen is committed to the conduct of an ethical business on all levels by acting fairly and honestly in all our dealings and by observing the highest standards of integrity. To achieve these, Sioen utilizes the shareholders’ investments in a sensitive manner while delivering safe and quality products to our clients. We comply with both the spirit and the letter of legislation and submit all our actions to an external audit. INSURANCE We aim to provide our customers with products that provide not only a quality guarantee but that ensure fair and ethical business. That’s why Sioen demands the same high standards and ethical engagement of all its suppliers. THIRD PART LIABILITY Sioen is insured – as per the terms and conditions of the insurance policy - for Public and Product Liability, Bodily Injury and Property damage combined. SUPPLIER SELECTION We ask our suppliers for a declaration that their companies know, support and have taken all necessary measures in order to be compliant with their legal obligations and they have to 6 CSR MANIFEST commit to having verified the same with their own suppliers. We also asked them to declare that all actual and future products and deliveries are in full compliance with all the restrictions in all the below mentioned (European) Directives/ Legislation/ Standards: • REACH Regulation 1907/2006 (REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals) • PPE Directive 89/686/EC and general PPE standard EN340, §4.2 • EC Directive 67/548/EEC and amendments • Council Directive 67/548/EEC of 27 June 1967 on the approximation of laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances. • EC Directive 76/769/EEC and amendments • Council Directive 76/769/EEC of 27 July 1976 on the approximation of the laws, regulations and administrative provisions of the Member States relating to restrictions on the marketing and use of certain dangerous substances and • preparations. • Azo colorants which release carcinogenic amines listed in prEN 14362-1 shall not be detectable by the method in that standard (reference EC • Directive 2002/62/EC and amendments). • Leather and textile products (cotton, …) shall meet the requirement of EC Directive 91/173/ EC regarding Pentachlorophenol (PCP) • Polymers shall also meet the requirement of EC Directive 91/338/EC regarding Cadmium. Sioen invests in a sustainable society. In business processes and relationships, Sioen strives to preserve and improve the global environment through a pro-active environmental policy as explained in this CSR Manifest. We are EN ISO 9001 certified and our apparel division is EN ISO 14001 certified. • EU Directive 2006/122/EC restricts the use of Per fluoroactane Sulfonates (PFOS) to less than 1 microgram per square meter in textiles and other coated materials. All our selected suppliers are subject to a strict Vendor Rating System. The signing of a declaration regarding the respect and implementation of our business principles is part of the vendor selection and evaluation process. Almost ¼ of our suppliers are ISO 14001, EU ECO-label, Ökotex 1000, or equivalent certified but a growing number can illustrate that they have an Environmental Management Plan. MAXIMUM USE OF ÖKOTEX 100 CERTIFIED AND RECYCLED MATERIALS IN APPAREL 90% of the fabrics and trimmings that we use for manufacturing clothes are already Ökotex 100 certified; which means that they are certified to be harmless for their intended application (meaning innocuousness of the used fabrics and trimmings to the user). Where the market allows it, we stimulate the use of recycled raw materials. For instance, we use recycled m-aramid felts as thermal barriers in our basic firefighter range. We have a range of foul weather protection clothing and fleeces which are based on recycled PET materials. However, for applications where there is a high risk involved (body armour, high end firefighting PPE, … ) we still sense a strong reservation from the end users towards recycled materials and questions regarding origin traceability or liability. For the moment, there are also strong technological limitations (for instance dying problems of recycled raw materials versus EN 20471 fluorescence, …). products: recycling of p-aramid fabrics and felts of used body armour to be used as raw material for p-aramid felts, 100% polyester fleeces and rainwear (PES fabric, PES film, PES trims, ...) which can be recycled as PES textiles and PET bottles a.o.. A development project is running to use PU which is based on partially recycled raw materials in coated waterproof textiles. We are very active in recycling in the production process itself. Some examples: • Solvent recycling by distillation at Sioen coating plants. Solvent white spirit is used as cleaning agent of paste barrels. After use, the solvent is distilled and reused. The sediment after distilling (a PVC residu) is sold as raw material for the production of floor tiles amongst others. • DMF, used as the main solvent in the transfer coating process is being distilled and reused in the production process. • At the spinning mill, we recycle all our PET waste and fabric waste and reuse it entirely as raw material in our production process • In the calendering process, all production waste is being reused as raw material in the production process. • All packaging material is being recycled or reused. raw materials. In most of the cases, we control the supply chain from fiber, over fabric, coating and finishing. PRODUCT INFORMATION For our clothing products, we actively apply the policy behind the SUCAM (Selection, Use, Care and Maintenance) technical publications of CEN. We stimulate our customers to have our products washed, dried and disposed of by professional cleaners, who are also more ‘professional’ regarding sustainability issues in the cleaning process (use of water, energy, chemicals, etc… ). These are just some examples. I invite you to read more about who we are, what we do and what we stand for in this CSR manifest. “Protection through innovation” is our company slogan and we want to live up to it in all its’ aspects. You can also find additional information on our website www.sioen.com of how we deliver safe and quality products. Kind regards, TRACEABLE SUPPLY CHAIN RECYCLING (COATED TEXTILES) Sioen is actively trying to follow the latest technologies, possibilities and opportunities concerning recyclable materials. Sioen is member of Vinylplus and thus actively supports the Epcoat recycling program. Examples of successful recyclable The unique Work Order number from every produced batch (whether it is the garment production batch printed on the garment label, and in some cases the individual serial number of the piece, or the coated fabric, the yarn, paste or ink), enables us to trace back to the batch numbers of all used Michele Sioen CEO Sioen Industries CSR MANIFEST 7 SIOEN AS SOLUTIONS PROVIDER Sioen as we know it today is a tightly interlocking group, with 30 companies in 14 countries. We sell our products worldwide in over 80 countries. * We handle the needs of our clients from concept to product with additional service and follow up. We handle the entire supply chain from yarn to finished product and always come up with the adequate solution for all our customers.” . 8 CSR MANIFEST * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. This manifest will be adapted accordingly. BELGIUM 871 PERSONS 6 PRODUCTION PLANTS 6 SALES UNITS EUROPE 471 PERSONS 6 PRODUCTION PLANTS 9 SALES UNITS TUNISIA 545 PERSONS 3 PRODUCTION UNITS 2 SALES UNITS ASIA 1 644 PERSONS 2 PRODUCTION PLANTS 3 SALES UNITS FOR MORE INFORMATION ON OUR SOLUTIONS, CHECK OUT OUR WEBSITE SIOEN.COM * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. This manifest will be adapted accordingly. CSR MANIFEST 9 OUR STAKEHOLDERS Almost 20.000 persons already visited our headquarters the past 5 years: customers, suppliers, shareholders, journalists and analysts, end users, NGOs, politicians, professors and students. From all over the world, men and women, of different ages. Our stakeholders. Their input was crucial to achieve the matrix below. We mapped the 20 most relevant topics. 1I CUSTOMERS 5I SUPPLIERS AND CONTRACTORS We provide our customers with high quality products and services at competitive prices. We have to meet our customers’ demands and win and maintain customers’ trust. We build partnerships and mutually beneficial relationships with our suppliers and contractors through transparent dialogue. 6I R&D PARTNERS 2I END USERS We protect and equip our end users with high quality conformant products. We aim to engage in meaningful exchanges of ideas with universities, professional associations and think tanks, in order to design tomorrows products. The dialogue we have with our R&D partners is a crucial part of our innovation plan. 7I SOCIETY Sioen companies work in a wide variety of changing social, political and economic environments. We aim to do business by respecting laws, supporting human rights, respecting the environment and by creating additional employment 3I EMPLOYEES We offer our employees an attractive, safe and healthy working environment where there is room for personal development, creativity, responsibility and career opportunities. 9 8 4I SHAREHOLDERS We protect their investment and every year provide them with an acceptable return. 7 6 QUALITY OPEN INNOVATION TAILOR-MADE COST EFFICIENCY/ VALUE FOR MONEY BASIC NEEDS END-USER SAFETY & PROTECTION WORKING CONDITIONS CLIMATE & RENEWABLE ENERGY ECOLOGICAL FOOTPRINT WASTE REDUCTION ENERGY EFFICIENCY HUMAN RIGHTS TRACEABILITY EXPERTISE STAKEHOLDERS’ EXPECTATIONS SERVICE 5 4 3 2 1 RAW MATERIAL SCARCITY SKILLS & COMPETENCES/ TRAINING & COACHING OPEN DIALOGUE 0 TRANSPORT OF GOODS 10 1 2 3 4 5 SIOEN’S CONCERN NO CORRUPTION CSR MANIFEST 6 7 8 9 VISION, MISSION, STRATEGY, VALUES WHAT WE WANT TO BE OUR VALUES In line with our corporate slogan ‘Protection through Innovation’, we want to be a market leader in selected sectors of the technical textiles and technical apparel market, with an emphasis on the protection of people and their assets. It is fashionable today for business companies to proclaim their values, their ethics and their corporate citizenship. Much of this is simply the ages-old rules of good business: keeping one’s word, avoiding conflicts of interest, abiding by financial and social legislation. Of particular importance to Sioen’s business are: HOW WE INTEND TO GET THERE • by constant close contact and interaction with customers • by cooperation with research centres, universities and other sources of expertise • by scanning existing and potential markets for new and innovative applications • by keeping a constant watch on new protective standards and adapting rapidly to them • by maintaining a fully equipped R&D and testing centre at Ardooie • by an ‘everything is possible’ spirit •C ONFIDENTIALITY. Being trusted to protect and properly use confidential and proprietary information, is vital to Sioen’s reputation. • ANTI BRIBES. In certain areas in which we operate bribery is not uncommon. Sioen has made it very clear to our customers and employees that this is unacceptable practice. • NO CHILD LABOUR. We take care to ensure this happens neither in our own plants, or those of our suppliers. •H ONEST PEOPLE DEALINGS. We recognize that, in today’s more fragmented world, the workplace is for many employees, a primary source of personal stability and continuity. All the more reason to practise open communication, listening to our employees’ wishes, aspirations and needs. Protection through innovation CSR MANIFEST 11 MAIN ELEMENTS OF OUR STRATEGY Our strategy consists of doing things our own way in order to grow constantly. We strive for growth, to be better every year. I want to shed a light on 5 major points of our strategy. Doing it the Sioen way. THE FIRST ELEMENT OF OUR STRATEGY IS: R&D Sioen is continually investing in research and development. We ensure that innovative ideas can grow and quickly find their way within the group. We are constantly looking for new markets that match our technical know-how. That is, segments in which technical textiles can offer a quality alternative to existing materials. THE SECOND ELEMENT OF OUR STRATEGIC PLAN IS: TECHNICAL EXPERTISE Wherever technical expertise is decisive, there Sioen is strong. We continuously invest in it. Know-how is one of Sioen’s great strengths. With over 50 years in the business, we have more accumulated know-how of textile coating technology and coated textile applications than any other company in the world. No other single company masters five different textile coating techniques. No other company has as much experience and knowledge of standards and rules. No other company has experience of as many markets. IN ADDITION, OUR THIRD ELEMENT OF STRATEGY, BEING VERTICAL INTEGRATION, MAKES US STRONGER We manage the complete industrial chain, from yarn to finished product. This gives us an edge over our competitors, enabling us to respond quickly to customer needs and making us less dependent on external suppliers. THE FOURTH ELEMENT IS OUR HANDSON, NON-BUREAUCRATIC CORPORATE CULTURE The Sioen style is direct and clear, and as such is appreciated by customers and employees alike. This allows new ideas to be implemented quickly. and efficiently and contributes incontrovertibly to innovation. YARNS THE FIFTH ELEMENT IS WORKING FOR A BETTER TOMORROW Sioen invests in a sustainable society. In business processes and relationships. Sioen is committed to the conduct of a an ethical business on all levels. We invest in the environment and we want to contribute to solving all challenges our environment faces today: climate change, search for alternative sources of energy, use of less raw material, reduction of waste and emissions, a.o. WOVEN FABRICS This know-how is gained through systematically searching for solutions to practical problems, much of the time in close cooperation with our customers. It is expanded by using existing know-how as a basis for entering new markets. It is protected by strong employee loyalty and motivation. * RAW MATERIALS Geotextile, ropes & hoses, offshore mooring, conveyor, narrow fabrics, coated fabrics. 12 CSR MANIFEST Nautical, automotive, protective & military, filtration, industrial fabrics. CHEMICALS Pigment pastes, decorative inks, varnish, inks for digital printing COATED FABRICS Truck & train, agriculture, bio-energy, construction, industry, leisure & advertising. APPAREL Specific markets, professional market, leisure market We manage the complete industrial chain, from yarn to finished product. This gives us an edge over our competitors, enabling us to respond quickly to customer needs and making us less dependent on external suppliers. FOR MORE INFORMATIONS ON VERTICAL INTEGRATION, CHECK OUT OUR WEBSITE SIOEN.COM CSR MANIFEST 13 14 CSR MANIFEST OUR CORE VALUES All Sioen companies have 4 core values integrity, fairness, honesty and respect in all aspects of their business. In return, Sioen expects the same commitment and behaviour from all its business partners. 1I FINANCIAL ETHICS 4I CONFIDENTIALITY 7I ETHICAL TRADING All business transactions of Sioen must be integrated into the accounts of the company in accordance with established procedures and laws. The company’s financial accounts are subjected to external audits. All employees of Sioen must protect and properly use confidential and proprietary information, protect the rights of the company and respect the rights of others. Sioen is committed to the conduct of an ethical business on all levels by acting fairly and honestly in all our dealings and by observing the highest standards of integrity. To achieve these, Sioen utilises the shareholders’ investments in a sensitive manner while delivering safe and quality products to our clients. We comply with both the spirit and the letter of legislation and submit all our actions to an external audit. We provide our customers with products that provide not only a quality guarantee but that ensure fair and ethical business. 5I COMMUNICATION 2I CONFLICTS OF INTEREST All employees must avoid conflicts of interest between their private financial activities and their conduct of company business. Sioen has always practiced open communication. This keeps us in tune with people’s wishes, aspirations and needs. 6I FREE ENTERPRISE 3I BRIBES The offering, acceptance and payment of bribes in whatever manner are unacceptable practices. Sioen supports free enterprise. We seek to compete on a fair and ethical basis and will not prevent others from competing freely with us. Sioen expect its suppliers to adopt similar principles to those described above. Not only do we expect them to adhere to the above principles, but also to demand the same from their suppliers and sub-contractors. CSR MANIFEST 15 (Y)OUR COMMITMENTS Sioen is committed to the conduct of an ethical business on all levels by acting fairly and honestly in all our dealings and by observing the highest standards of integrity. To achieve these, our company utilises the shareholders’ investments in a sensitive manner while delivering safe and quality products to our clients. We comply with both the spirit and the letter of legislation and submit all our actions to an external audit. We invest in the environment, because a healthy environment is the condition to all life and activity. At Sioen, we want to contribute to solving the challenges our environment faces today: climate change, search for alternative sources of energy, use of less raw material, reduction of waste and emissions, a.o. OUR CORPORATE SOCIAL RESPONSIBILITY - A BETTER TOMORROW CONFIDENCE IN TEXTILES CERTIFIED Tested for harmful substances according to Oeko-Tex® Standard 100 ISO 9001 compliant ISO 14001 compliant respect to human rights productions according local environmental laws sustainable textile production pro-active sustainable product development “ Sioen invests in a sustainable society. In business processes and relationships, Sioen strives to preserve and improve the global environment through a pro-active environmental policy as explained in our CSR Manifest. „ 16 CSR MANIFEST Est. 1994 SIOEN is a member of several important branch organizations. ISO 9001: REACH: Quality management systems - Requirements are directly audited by a third party. We guarantee that we are fully REACH conformant. REACH is the European Community Regulation on chemicals and their safe use. It deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances. Reach aims to enhance the human health and environment through a better and faster identification of the intrinsic properties of chemical substances. ISO 14001: CERTIFIED ISO 14001 sets out the criteria for an environmental management system. It maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization that wants to improve resource efficiency, reduce waste and drive down costs. OEKO-TEX®: CONFIDENCE IN TEXTILES Tested for harmful substances for pro-active sustainable product development. according to Oeko-Tex® Standard 100 HUMAN RIGHTS: The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption (source: www.unglobalcompact.org). STeP: Sustainable Textile Production (STeP) is the new OEKO-TEX® certification system for brands, retail companies and manufacturers from the textile chain who want to communicate their achievements regarding sustainable production to the public in a transparent, credible and clear manner. As market leader, we want more than high quality products. We also want our production processes to be sustainable. We are the first PPE manufacturing company to receive a STeP certification. The audit revealed that Sioen Apparel complies with the highest requirements of STeP by the OEKO-TEX® standard level 3 in regard to our structures, processes and management systems. WE ARE THE FIRST PPE MANUFACTURING COMPANY TO RECEIVE A STEP CERTIFICATION. FOR MORE INFORMATION ON CSR, CHECK OUR WEBSITE WWW.SIOEN.COM CSR MANIFEST 17 OUR DAILY CONCERNS Overall we focus on: customised products - high end, specialised products recyclable/recycled products - integrated features - intelligent textiles We considered how the world, human population, and our businesses are set to evolve in the short, medium and long term. From the many active brainstorming and business meetings held at all levels within the company, we have selected five major challenges. Demography - Many studies show that the population of our world will continue to increase and life expectation will continue to rise. Obviously this calls for appropriate infrastructures, medical requirements, and greater need for transport, food and drinking water. For Sioen, all this translates into a growing focus on developing and producing technical textiles for tents, buildings, insulation, trucks, wagons and guardrails. For water storage and transport (water tanks), basins, covers and technical reinforcement textiles. In technical protective clothing for agriculture & horticulture, the medical world and the food industry. Climate - Our climate is changing. Global warming is a fact. Periods of drought, increasing numbers of tropical cyclones, tsunamis, floods, and forest fires threaten us. This translates at Sioen into products that protect against weather, wind and disasters. We are committed to researching and developing products that guard against sun, floods, hurricanes, wind and rain, as well as protective clothing that protects the wearer in extreme (weather) conditions. The Apparel Division manufactures protective clothing for those working in and around power stations, or in risk environments. This fast-growing market is one of our top priorities. Our aim is to quickly and efficiently develop new products that will further strengthen our position here. Energy - Main sources are sun, wind, biomass and water. This translates at Sioen into products for green energy generation. Sioen is already producing technical textiles for biogas container covers and for windmills. Coated fabrics can have manyfunctions here, for reusable packaging, air filtration and huge ventilation hoses for air cooling the transformers and rectifiers inside windmills a.o. This translates at Sioen into producing ecological products in an ecological manner. Safety Increased safety needs for people & their belongings Climate extreme circumstances: DrOughts, fires, storms, heat floods, cold, A.O. Energy Search & need for renewable and sustainable energy Sun, wind, Biogas, Water Clothing: NRBC, riot suits, body armours, camouflage Truck/ transport: Roof reinforcement, security systems Protective clothing: Fire fighters clothing, immersion suits Watertanks Oilbooms Geotextiles Red Cross tents Emergency units Safety - People wish to secure and protect themselves and their property. Protection, shelter, security, safekeeping, safeguarding, ... are words that define this need. This translates at Sioen into intelligent solutions for safety and protection. 18 CSR MANIFEST Ecological footprint - There is a rising ecological awareness in society, acknowledgement of the need to address waste, recycling, emissions,… Technical textiles for: Biogas containers, wind mills, integrated solarcells, bio & fog harvesting, algae growing Technical apparel: Flame retardant, antistatic, ATEX protection TENSILE ARCHITECTURE IS ONE OF THE MAJOR TARGETED MARKETS FOR THE YEARS TO COME. JOINT EFFORTS FROM R&D, SALES, MARKETING, QUALITY, PRODUCTION AND LOGISTICS ENSURE THE BEST PRODUCTS IN THIS HIGH END MARKET. Ecological Footprint Rising ecological awareness, Waste Problem, Recycling, legislation on toxic elements and emissions, Growing ecological awareness Ecological production Ecological products: Phthalate free, bio-degradable, REACH compliant, plasticizer-free PVC, recycling, garments made from recycled materials, recyclable textiles, reusable garments vs. single use garments Demography Growing and ageing population Need forinfrastructure, food, drinkable water, a.o. Food: Food quality coated fabrics, food quality protective clothing, extreme cold & pesticide protection Textile architecture: Long lifespan, safe, integrated features Construction: Felt & filtration for thermal & acoustic insulation, rein-forcement, scaffolding nets,... Health: Reusable drapes & gowns Transport: Lighter, safer, more ecological with integrated features CSR MANIFEST 19 SIOEN AND THE WIDER * ENVIRONMENT It has become fashionable in the last years for companies to boost their environmental credentials, with strings of fine-sounding statistics. We prefer to look at the wider picture: how does Sioen fit into the environment – both human and natural - it is part of? Does it give back to society and nature as much as it takes from it? SIOEN AS AN EMPLOYER: SIOEN IN THE LOCAL COMMUNITY Ardooie, the group’s corporate headquarters and the other French and Belgian factories, are located in the heart of the former French-Belgian textile zone, hard hit by the collapse of the Western European textile industry in the 1970s and 1980s. Sioen is a major employer in the region. Thanks partly to Sioen’s presence, Ardooie has an unemployment rate of just 4.55% against 8.4% for Belgium as a whole. Sioen is conscious of its responsibility to the wider business and residential community. CEO Michèle has become the chairman of the Belgian Employers’ Federation VBO in 2014. Other employees serve in various social and charitable organizations. Other examples can be found on p. 26-30 of this manifest. In Indonesia o.a., Sioen provides employment to over 1 000 persons. The fact of offering working conditions superior to the average has the effect of pushing up the overall level, not only of pay, but also of health and safety in this developing country. Over the past several years, we have taken very concrete actions to reduce our consumption of electricity, gas and water, to recycle waste and to minimize the environmental impact of our transport activities.transport activities. OUR ENVIRONMENTAL FOOTPRINT SIOEN AS TAX-PAYER Total tax charges of Sioen in 2014 amounted to € 24.5 million. This includes € 13.3 million social security and € 2.3 million taxes on tangible assets. Taxes on vehicles amounted to € 28.9 thousand and taxes on energy € 892.8 thousand. Sioen paid € 679.7 thousand other taxes in 2014. SOME OF OUR GARMENTS ARE PRODUCED WITH RECYCLED POLYESTER. ONE EXAMPLE IS THIS RECYCLED SWEATER. 20 CSR MANIFEST FOR MORE INFORMATION ON CSR, CHECK OUR WEBSITE SIOEN.COM WE RECYCLE ALL POLYESTER WASTES SUCH AS HARD LUMPS AND YARNS FROM THE SPINNING-MILL, SELFEDGES AND FABRICS FROM THE WEAVING MILLS AND UNCOATED FABRIC REMAINS FROM THE COATING DIVISION. * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. This manifest will be adapted accordingly. CHAINSAW PROTECTIVE CLOTHING TECHNICAL AND COMFORTABLE SOLUTIONS TO PROTECT THE USER OF HANDHELD CHAINSAWS. Unless otherwise stated, the figures below refer to the Belgian and French activities only. In our overseas apparel production facilities, the essential consumption is of electricity for our sewing equipment and for air conditioning. 1) Electricity The Coating Division is the main user of electricity in the Group world-wide, accounting for 95% of consumption, to power the machinery at the spinning mill and the online coating plant. In 2014, the group used 78,000 MWh of electricity. Sioen has installed solar panels wherever feasible at its Belgian and French sites. 33,298 m² of solar panels cover around 2.25 % of total electricity needs. The Group has signed an energy-saving “Audit Covenant” with the Flemish government and very similar “accords de branche” with the Walloon government. Since 2007 external energy audits have been a primary force in driving its energy- saving plan. 2) Gas 91% of the group’s gas consumption worldwide is used by the Coating Division, as the main source of heat in the direct and transfer coating plants. In 2014, Sioen used approximately 71,000 MWh of natural gas. Gas and electricity consumption has been greatly reduced over the past three years with the optimization of machinery at the direct coating plants in Ardooie (B) and at Flixecourt (F). At all coating plants, emissions are treated by thermaldestruction with energy recovery at on site high performance incinerators. WOOD 313 tons RECYCLED PACKAGING MATERIAL IN 2014 CARDBOARD 119 tons RECYCLED PACKAGING MATERIAL IN 2014 3) Water In all our plants (B and F) we use mains water, ground water and rainwater. Cooling water: This is needed for the coating units and in the production of yarns, pastes and inks. For this we use ground and rain water, always in closed circuit. PLASTIC 89 tons RECYCLED PACKAGING MATERIAL IN 2014 CSR MANIFEST METAL 153 tons RECYCLED PACKAGING MATERIAL IN 2014 21 Nebulizer: In each of our weaving plants, water is sprayed over the looms to ensure constant humidity. For this we use ground water. Cleaning water: To clean barrels at our online coating and chemicals facilities. For this we use 2,668 tons of water. Hazardous waste Essentially high-caloric solvent residues from the coating processes. In 2014 we carried some 500 tons of hazardous waste to authorized processors. Recent investment in distillation installations has reduced this amount by nearly 25%. Extinguishing water: Rainwater provides the extinguishing water reserve in all our production plants. Recycling We use approximately 947 tons of white spirit every year in our production process, primarily as a cleaning agent for paste barrels. After use this solvent is distilled and reused, with the sediment (a PVC residue) sold as a raw material for producing floor tiles. With the exception of sanitary water, we aim for zero discharge status. Our online coating plant at Ardooie and our chemicals production plant at Bornem have already achieved this. DMF (dimethylformamide) is the main solvent used in the transfer coating process (around 887 tons a year). This is distilled and reused in the production process. 4) Waste and recycling Packaging materials In an outward direction, Sioen uses only recyclable and/or reusable packaging material. In an inward direction, we press our suppliers to minimize the amount of packaging material. Cardboard, PE foil and PMD is gathered for recycling (see figures p.25). Sioen is a member of Val-I-Pack which promotes the management of recycling of industrial packaging waste. A polyester recycling unit is operational at Sioen Fibres. This unit recycles all polyester wastes such as hard lumps and yarns from the spinning mill, selfedges and fabric remains from the weaving mills and uncoated fabric from the Coating Division. As a result the spinning-weaving-coating process is today virtually waste-free. Sanitary water: For this we use rainwater, topped up with mains water as necessary. Recycled packaging material in 2014: Cardboard: 119 tons Wood: 313 tons Metal: 153 tons Plastic: 89 tons End product recycling: Unfortunately, coated and laminated textiles are difficult to recycle because of their complex, non-homogenous nature. Sioen is closely tracking the latest technologies for recycling these. EPCOAT In the calendaring process, all production waste is being reused as raw material in the production process (1.040 tons a year). IMPACT OF OUR ECOLOGICAL MEASUREMENTS FOR 2014 ELECTRICITY 78.000 MWH COMPARED TO 81,000 MWH LAST YEAR OR A DECREASE OF 3,000 MWH. 22 CSR MANIFEST GAS 71.000 MWH COMPARED TO 72,000 MWH LAST YEAR OR A DECREASE OF 1,000 MWH. WATER 2.668 tons TO CLEAN BARRELS AT OUR FACILITIES WE USE CLEANING WATER. WE AIM FOR ZERO DISCHARGE STATUS + Through our membership of the plastic sheet industry association IVK and VinylPlus, we are involved in the VinylPlus: Epcoat system which collects and recovers an increasing quantity of used PVC-coated textiles every year. 5) Emissions Most emissions of non-methanic volatile organic compounds emissions are treated by thermal destruction with energy recovery at on site high performance incinerators. 6) Transport In principle all transport within the company and to customers is by outside hauliers and agents. We do not own trucks or containers. For overseas intercompany transport we ship as far as possible in full-container loads. Elsewhere we use full trucks/containers or grouped transport. For outward transport to customers we use grouped transport which optimizes the weight and volume per truck. Key selection criteria in selecting hauliers are CO2 footprint, service level, reliability and cost. THE OF SIOEN DETAIL OF LIFEJACKET 7) Other Supplier certification As part of our vendor selection and evaluation process, suppliers are asked to sign a declaration that they will respect and implement our business principles, especially as regards child labour and human rights. In terms of environmental management, around ¼ of our suppliers are ISO 14001 (environmental management) EU ECO-label, Ökotext 1000 or equivalent certified, while a growing number can illustrate that they have an Environment Management Plan. Traceability Sioen operates a work order number system that allows us to track every produced batch back to the batch numbers of the raw materials used. In many cases we control the entire production chain from fibre to fabric to finished product, with full traceability. PROTECTING PEOPLE AND THEIR BELONGINGS IS OUR MAJOR CONCERN. THIS SHOWS IN THE PRODUCTS WE MAKE AND HOW WE DO THAT, TAKING CARE OF PEOPLE AND THE ENVIRONMENT. FOR MORE INFORMATION ON RECYCLING, CHECK OUR WEBSITE SIOEN.COM CSR MANIFEST 23 24 CSR MANIFEST MAXIMUM WASTE IS BEING REUSED OR RECYCLED WE GUARANTEE THAT WE ARE FULLY REACH CONFORMANT WE PRODUCE ECOLOGICAL PRODUCTS REACH is the European Community Regulation on chemicals and their safe use. It deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances. Reach aims to enhance the human health and environment through a better and faster identification of the intrinsic properties of chemical substances. Phthalate free Biodegradables: e.g. teabags Reach compliant Plasticizer free PVC Recycling • Garments made from recycled materials • Recyclable textiles resulting in an almost “cradle to cradle” solution • Reusable garments vs. single use garments. Ecological chemicals (UV & Water based) Flexible solar panels ECOLOGICAL FOOTPRINT Waste problem, recycling More Stringent legislations Growing ecological awarness CSR MANIFEST 25 SOME EXAMPLES We keep in mind the impact of everything we do, in both the short and the long term. This is our idea of corporate social responsibility, the set of all actions (large and small) we take to protect our planet and thus ourselves. BLOOD DONATION COIN A DAY PROJECT Every year we organize two blood donation camps in some of our factories in coordination with the Red Cross. In Indonesia for instance here are annually about 200 participants donating 160 bags of blood which was well appreciated by nearby hospitals helped by Red Cross Society. Six boxes have been installed in the factory where all employees are encouraged to deposit coins available with them. This money is being used for providing books, uniforms and shoes to children belonging to the socially / economically weaker sections of the society studying in schools in and around the Indonesian factory. DURABILITY Sioen was asked, together with one of our major customers, to take part in a study committee about how we can measure the sustainability of our products. One thing is for sure: thanks to enhanced quality measures, Sioen protective clothing is 50 to 100% more durable than that of our competitors. This is a clear contribution to limiting the ecological impact and to reducing waste. RECYCLING The recycling unit at Sioen Fibres enables us to recycle all polyester production wastes such as hard lumps and yarns from the spinning-mill, selvedges and fabrics from the weaving mills and uncoated fabric remains from the coating division. As a result the spinning-weaving-coating process is virtually waste-free, resulting in a cleaner environment and a rational answer to ever-increasing raw material prices and availability issues. SEMINAR/ SCREENING FOR WOMEN WORKERS ON CERVIX AND BREAST CANCER Breast and cervical cancer accounts for 46% of all cancer cases in Indonesia and has a high mortality rate. Since Women constitute 82% of the total employees in our organization it was felt that we need to create an awareness amongst our people about the two above mentioned diseases in addition to pregnancy and anemia and through them the larger community as we aim to be more socially responsible. It is our firm belief that a healthy body and healthy mind are two vital requirements for a company to be efficient since our manufacturing process is dominated by human factors mainly constituting women. In this connection a seminar was held in coordination with Thamrin Hospital a leading medical centre in Bekasi and Pan Pacific Life Insurance. The presentation highlighted the causes, prevention measures and early detection devices/ methods and was very informative and an eye opener to many participants. In addition there was a question and answer session at the end of each program. Endah participant from the Indotech department commented that she was not aware of such a high risk disease, its causes and prevention measures and was thankful to the company for organizing such a programme. The interaction session was lively with many questions and answers. 46% 26 Breast and cervical cancer accounts for 46% of all cancer cases in Indonesia and has a high mortality rate. CSR MANIFEST FAMOUS SPORTSWEAR BRANDS IN (SNOWBOARD, SURF & BEACH, ETC.) AUDIT ANNUALLY MORE THAN 400 CLOTHING MANUFACTURERS IN THE FAR EAST REGION. AUDITS Famous sportswear brands in (snowboard, surf & beach, etc.) audit annually more than 400 clothing manufacturers in the Far East region. The audits cover quality, wages, safety, tidiness, child labour and human resources management. Sioen Indonesia finished in third place, making us one of the best clothing manufacturers in the world! SPORTS EVENTS To foster team spirit amongst various departments in the factory, a sports event is held in PT Sungintex after official working hours in November and December. We believe that sports does not only positively impact body and mind, but that it also has a more universal meaning, one that overcomes cultural differences and stimulates solidarity. The event comprised of matches in volley ball, football and table tennis which invoked an overwhelming response from the employees of the organization. In addition, several teams take part in the Run to Rio and Ekiden running events in Belgium SIOEN PROTECTIVE CLOTHING IS 50 TO 100% MORE DURABLE THAN THAT OF OUR COMPETITORS. THIS IS A CLEAR CONTRIBUTION TO LIMITING THE ECOLOGICAL IMPACT AND TO REDUCING WASTE. EVERY YEAR WE ORGANIZE TWO BLOOD DONATION CAMPS IN OUR FACTORIES IN INDONESIA. THIS WAS CONDUCTED IN COORDINATION WITH THE RED CROSS SOCIETY OF INDONESIA. CSR MANIFEST 27 WITH SIP PROTECTION’S TREE-PLANTING PROJECT WE REDUCE YOUR ECOLOGICAL FOOTPRINT PLANT A TREE, REDUCE YOUR FOOTPRINT Preserving nature and trees is one of the main concerns of SIP Protection, our brand for professional protective clothing for chainsaw users (arboriculture). Recently, SIP Protection launched a tree-planting project. If a client buys a SIP-product, we give him the choice to pay an additional, small amount of money. We use that sum to plant a tree. The coordinates of the location of the tree are communicated to our customer. This way, we do not only reduce our ecological footprint, we also decrease the footprint of our customers. The ‘Plant a tree’-project is organised in cooperation with natuurpunt.be, the nature association of Flanders. RUN AND WALK FOR CHARITY In June 2015, a team of Sioen-sports enthusiasts participated in the ‘Run to Rio’-running contest to encourage our Belgian Olympic athletes in Brazil. In September, we took part in the ‘Kom op tegen Kanker’-walk. The money that was raised was used to fund cancer research. 28 CSR MANIFEST RHINOCEROS Since the logo of our chainsaw protective clothing brand, SIP Protection, is a rhinoceros, we decided to adopt one. The rhinoceros is named Siphoseptu and we immediately fell in love when we saw him. AFTER THE EARTHQUAKE OF 2015, SIOEN SHIPPED A CONTAINER OF TENTS AND TARPS TO NEPAL WITH THE ORGANIZATION OF CHARITY EVENTS WE SUPPORT LOCAL COMMUNITIES. THESE ARE PICTURES FROM OUR ROMANIAN PLANT TENTS AND TARPS FOR NEPAL 100% BIODEGRADABLE PACKAGING CHARITY EVENTS IN ROMANIA After the earthquake of 2015, Sioen shipped a container of tents and tarps to Nepal. In 2015, Nepal was hit by a horrendous earthquake. Millions of people lost their houses and were exposed to the harsh Nepalese weather conditions. In 2015, we introduced a new, 100% biodegradable packaging, based on corn amylum. This new packaging will especially be used by our brand Baleno and is a big step forward in reducing our ecological footprint. We asked our customers for help. The spontaneous reactions to that call were heartwarming. Our customers made tarps of 6 x 4 and 5 x 4 meters with Sioen technical fabrics, large enough to provide a temporary home for 10 persons. We received help from all over Europe. The result was a large sea container full of tents, tarps and shelters. ECOVER With the organization of charity events we support local communities. As a globally active company we want to support the development of local communities. In Siorom, our plant in Romania, for instance, we regularly organize charity events for the local schools and orphanages. Last winter we donated winter boots to the children of a local school and fleece jackets to an orphanage. From now on, at our headquarters in Ardooie, we will only use the ecological laundry products of ‘Ecover’ in our washing lab. ‘Ecover’-products are based on sustainable and biological raw materials and minerals, are fully and rapidly biodegradable and have a minimum impact on the aquatic life. CSR MANIFEST 29 PEOPLE AT SIOEN * The workforce at Sioen breaks down mainly into two distinct groups: nearly 2 000 or 68% of all employees work in Indonesia, Tunisia, Myanmar and Romania for the Apparel Division, another 900 work in Belgium and France for the Coating and Chemicals Divisions and on group level. Another, much smaller number (around 1 000) work in various capacities in Ireland, Portugal, China, Germany, the Netherlands and the UK. The social context and the work environments are of course very different, but the basic concerns and emphases are the same: overseas, are a valued forum of communication between management and personnel representatives. Channels exist for any complaints of harassment or personal misconduct to be dealt with properly and discreetly. OPEN COMMUNICATION Sioen has always practised open communication. Long experience has taught us that frank, honest discussion, with respect for everyone’s integrity and dignity, is the best way forward, in any culture. Our flat company structure makes it easier to listen to people, and for ideas, initiatives and grievances to pass quickly. Our various works councils, both in Europe and People make the difference. CLAUDE CORNETTE 30 CSR MANIFEST PERSONNEL DEVELOPMENT Sioen offers a stimulating working climate, with an opportunity for those who want to develop their capacities to the full. Learning is essentially on the job, while self-study, outside training is encouraged and supported financially. Vacancies are filled internally wherever possible. WE ARE A FAMILY OWNED BUSINESS AND THAT REFLECTS ALSO IN THE LOYALTY AND DEDICATION OF THE PERSONNEL. IT IS NOT UNCOMMON FOR PEOPLE TO SPEND THEIR ENTIRE WORKING LIVES WITH SIOEN. * Figures are from 31/12/2014. The figures of 2015 will be available in the next annual report end of March 2016. This manifest will be adapted accordingly. COATING AND CHEMICALS DIVISIONS. 829 PERSONS APPAREL DIVISION 2 648 PERSONS + THE OF SIOEN OUR EMPLOYEES ENSURE THAT PROMISES ARE KEPT AND THAT OUR PRODUCTS AND SERVICES MEET CUSTOMERS’ EXPECTATIONS AND DEMANDS. THROUGH MANY YEARS OF DEDICATION, OUR EMPLOYEES HAVE BUILT UP A HUGE FUND OF SKILLS. LOYALTY AND DEDICATION WORKING CONDITIONS Sioen tries to be loyal to its employees and its employees are certainly loyal to Sioen. Hire and fire is not the Sioen way – even during economic crises like in 2008. Average length of service is well above the industry average: our general experience is that new hires either fit in with our way of doing things and stay or leave very quickly. It is not uncommon, even today, for people to spend their entire working lives with Sioen. Our employees work in up-to-date production plants with recreation, showers and canteens, and in certain overseas locations, company transportation. OCCUPATIONAL SAFETY AND HEALTH Safety is a core value, both in Europe and overseas. New hires receive safety training and larger plants have designated safety officers. Our safety records are well above average for the industries we are in. EQUAL OPPORTUNITIES AND NON-DISCRIMINATION Sioen is committed to providing a quality working environment with equal opportunities for every employee. Women play an important role at management level, with the wife and three daughters of company founder Jean-Jacques Sioen holding top management positions, and also throughout the group. Around 70% of total personnel worldwide is female. Sioen does not discriminate in employment or treatment on grounds of race, religion, class, caste, language, gender, disability, age, sexual orientation, marital status or political affiliation. WAGES AND BENEFITS All our employees receive fair market remuneration. In Belgium and France employees are covered by the Collective Agreements. For most of its permanent Belgian and French employees, Sioen contributes to extra-legal top-up schemes over and above the state pension. Sioen employees are paid above the minimum wage for these countries. CSR MANIFEST 31 CHEMICALS WEAVING APPAREL SPINNING FULL INTEGRATION AND IN-HOUSE SUPPLY-CHAIN CONTROL All capable resources are vertically fully integrated, making us the only full service provider able to offer the entire production process in-house. Our own portfolio range over chemicals to yarns, raw fabric and pigment pastes to coating and lacquering of technical textiles and apparel. Our capability is ensured by through 5 coating techniques in 7 coating plants, 3 weaving units and one spinning mill all over Europe. In addition we have 6 production units for technical apparel in Indonesia, Myanmar, Tunisia and Rumania. STEADINESS COATING SYSTEM EUROPEAN STANDARD COATING LACQUERING 100% RECYCLABLE FABRIEKSTRAAT 23 I 8850 ARDOOIE BELGIUM I T +32 51 74 09 00 I F +32 51 74 09 64 I [email protected] I WWW.SIOEN.COM
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