ICI » Topics » Sustainability developments in 2006

This excerpt taken from the ICI 6-K filed Mar 21, 2007.
Sustainability developments in 2006
ICI has completed the first year of Sustainability Challenge 2010, the most recent five-year Challenge programme, which includes improvement goals for social, environmental and ethical issues. The objectives were defined in collaboration with representatives of all ICI’s businesses and functions, as well as with external stakeholders. Performance against the objectives will be reviewed with external stakeholders as the Challenge period progresses. Overall, the ICI Board is pleased with the progress made and the Company has made improvements against most of the new objectives. Detailed results are being verified by Enviros Consulting Ltd and the performance results and verification statement will be available on ICI’s corporate website (www.ici.com/sustainability). A printed summary will also be available.

Social elements of sustainability encompass employee health, safety and staff development as well as engagement with the communities in which ICI operates worldwide.

ICI and safety
The Company regrets that in 2006 two contractors died while carrying out work for ICI. These are the first fatalities involving operations, rather than motor vehicle incidents, since 2000. In the first case, a maintenance contractor in Argentina was asphyxiated when he made an unauthorised entry into a silo containing nitrogen, used as a “fluidizing” agent. In the second a contractor’s worker went on to the roof of a product distribution centre in Indonesia, without authorisation, and was fatally injured when he fell 4.5 metres onto the concrete floor. Both incidents were clear breaches of existing Company procedures. Full details of the investigations, root causes and improvement actions have been communicated across the businesses, requiring each site to take action to ensure that such events cannot happen again.

ICI has achieved an 89% reduction in employee work-related injury and illness rates since 1990. The Sustainability Challenge 2010 milestone is a Total Reportable Case Rate of 0.56 by 2010 – a 40% improvement on the 2005 performance. In 2006 we achieved 0.79 which is a 10% improvement on 2005. Manual handling issues remain a focus area for improvement. Overall Group performance remains amongst the industry leaders, and there are some ICI sites in all regions which have reached or exceeded the milestone of 10 years without a lost-time injury.

ICI and its people
ICI continues to develop people capability requirements to meet its strategic objectives. During 2006, the focus on China included the China Academy, a programme of training and experience for general management recruits, and recruitment of scientists for the new China Technical Centre in Shanghai. Other focus areas include sales and marketing.

ICI continues to monitor the gender, ethnicity and nationality diversity of its management population. The data indicates that the 2006 management group of about 1,580 included 16% women. Of the 680 located in North America there was a 10% ethnic minority; of the 900 located outside North America there was a 53% minority nationality (defined as those born outside UK, USA or the Netherlands where our businesses are headquartered). Since 2002, the minority nationality has improved from 48%; the gender and ethnic diversity measures have remained fairly constant.


 

18 ICI Annual Report and Accounts 2006 www.ici.com

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ICI and its communities
ICI’s Responsible Care Management System standards require each site to engage with its local community. At a minimum, this involves regular communication with community leaders to ensure that any concerns about sites’ impact on their neighbourhoods are addressed. Employees at many sites also volunteer time and funds, and sites provide facilities and funds, for community initiatives. Since 2003, ICI has quantified the extent of the Group’s community involvement each year. Cash donations to community/humanitarian causes, both local and international, totalled £2.01m (2005 £3.07m) of which £1.71m (2005 £2.44m) was from the Company and the balance from employees’ fundraising activities. Donations in kind, mainly product, totalled £0.26m (2005 £0.14m) . Employee volunteer time on Company-supported projects totalled about 17,300 hours (2005 25,100 hours) of which more than 10,700 were on Company time. The total equivalent value of donations and time was £2.53m (2005 £3.52m), more than 172,500 equivalent hours – or about 0.8 working days per employee.

Examples of activity and recognition include:

ICI Argentina – Wine Specialty Chemicals won the 2006 ICI Chief Executive Community Involvement Award for using the ICI operation as a resource to teach local children about natural sciences, chemistry and environmental care. The Palmira site operates an integrated energy generation and effluent treatment system. Liquid effluent is used to irrigate a eucalyptus forest which in turn provides some of the fuel for the steam-raising boiler. The solid waste is used as a soil improver for the local grape and soft fruit growing industries. Waste from wine making returns as a Palmira raw material, and the waste fruit pits are burned in the Palmira plant boiler. The children research practical examples of recycling, ecology and biodiversity to supplement their school syllabus;
   
National Starch’s North Kansas City plant in the USA has a number of partnerships to strengthen science teaching in local schools. They work with local industry to run specialist hands-on workshops for local science teachers, provide experimental equipment for students to study genetics, and provide practical support to students in their study;
   
ICI Paints’ Maua site in Brazil is working with an environmental non-governmental organisation (NGO), SOS Mata Atlântica, and Sao Paulo University to carry out a ground breaking project to re-establish the forest surrounding the site as native Atlantic Forest; and
   
ICI Pakistan was awarded the first Corporate Social Responsibility National Excellence Award by Help International Welfare Trust.

ICI and the environment
ICI continues to set improvement objectives and report against a range of environmental parameters. Sustainability Challenge 2010 includes objectives to reduce the impact of our operations on land, air and water. Changes are measured from the new baseline year 2005 and both baseline levels and results are adjusted for portfolio changes. In 2006 we achieved: 3% energy reduction per tonne of production (2010 target 5% reduction from 2005), 2% reduction in greenhouse gas emissions per tonne (2010 target 5%) but a 1% increase in water use per tonne (2010 target 10%). We have also reduced air emissions of hazardous substances (by 27%) and acid gases (by 8%) per tonne of production.

Since 1990 ICI has reported reductions in energy use per tonne of production in excess of 43%, and again in 2007 there is a specific focus to improve the overall energy efficiency of our operations, with cross business activity to achieve improvements. The latest have been achieved through efficiency improvements, asset rationalisation and redesigned production processes. Many of these indicators remain important not only for environmental performance but also for business sustainability as energy price rises, global warming issues and regional water scarcity become more prevalent.

ICI’s supply chain
Product stewardship and supply chain improvements are an integral part of Sustainability Challenge 2010. In 2006 a revised annual product stewardship assessment was carried out by all business units, in order to monitor progress and target areas for further improvements. Quest made good progress in piloting a supplier assessment process which includes social and labour practices issues as well as product stewardship and health, safety and environmental issues. During the year, it came to light that one of our small volume suppliers in Brazil was employing child labour, although they denied this. Following investigation we ceased trading with them and have worked with local NGOs to strengthen our assessment and engagement processes.

ICI’s corporate governance
Good corporate governance is integral to sustainable practice, and ICI’s corporate governance practices are reported on pages 38 to 43. ICI’s Code of Conduct was updated in 2006. In addition, an updated Group Antitrust Compliance Policy was adopted in 2006 and existing antitrust training programmes have been strengthened to support the objectives of this Policy. ICI’s whistleblowing system, “Speak Up”, continues to operate worldwide. The system encourages open reporting and ensures anonymity for callers should they so wish. ICI investigates the issue reported in each call (96 in 2006) and monitors the call rate in each business and region to identify trends.

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