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Sustainability and CSR Report 2013 Report date: 4 March Sustainability and CSR Our mission is to add value for our customers by helping them achieve their desired level of quality and safety for
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Sustainability and CSR Report 2013 Report date: 4 March 2014 1 Sustainability and CSR Our mission is to add value for our customers by helping them achieve their desired level of quality and safety for their products, assets and processes; to protect their brands and enable their success in the global marketplace. At Intertek, quality is our way of defining the safety, sustainability, performance, functionality, integrity or desirability of a product, asset or process; and the need for quality arises at many separate and interrelated points across a customer s organisation. The global marketplace is becoming increasingly challenging for all of us. By 2050 the global population is estimated to reach over 9 billion, putting the world s water, food and energy sources and climate under severe strain. Intertek is helping its customers to address these global challenges. We provide a range of services that span the entire water life cycle. We conduct environmental impact assessment and modelling studies for desalination plants to provide vital drinking water, assess reservoir quality and measure the impact of treated discharged wastewater. Our comprehensive evaluations of food production, quality management systems, testing programmes, factory environment and product and process controls, positions us to certify the entire food supply chain. We enable developing nations to increase their global food exports and help reduce the incidence rates of food-borne diseases, such as salmonella and E-coli. Our support to the world s energy industries covers a broad range of logistics, testing, inspection, certification and consulting expertise, helping them to run their operations efficiently and safely. We are also a world leader in the renewable energy sector, providing testing and inspection of biofuels, photovoltaics (solar panels), wind turbines, lithium batteries and charging systems for electric vehicles. In our own operations, during 2013, we established an improved process for collecting Greenhouse Gas ( GHG ) emissions data for all our sites worldwide and also increased the boundary of both our Scope 1 and Scope 2 emissions data, further details of which can be found on pages 5 and 6. We remain committed to reducing our own ecological footprint and will continue to drive environmental initiatives throughout our operations. This report details our current sustainability and Corporate Social Responsibility ( CSR ) performance and shows how our people, through the work they do every day, are helping to create a healthier, safer and better quality of life for all. Wolfhart Hauser Chief Executive Officer In this section Our business How we are making a positive contribution to the planet through our work for clients. Intertek people Our commitment to the welfare and development of our people. Our environment Taking responsibility for our impact on the environment. Our communities Giving back to the communities touched by our business. See pages 2 and 3 See pages 3 to 5 See pages 5 and 6 See pages 7 and 8 2 Our business By helping companies to produce greener, safer products and services and to operate in a more sustainable way, Intertek makes a substantial positive impact on the planet and human well-being. Contributing to industry standards Intertek employs hundreds of regulatory experts across the world, helping companies in highly regulated industries to achieve global, regional and local compliance. We help our customers to effectively comply with complex global regulations, such as the EU REACH (Registration, Evaluation, and Authorisation of Chemical Substances EC1907/2006), food contact materials and new chemical notifications and biocides (active ingredients and formulations). Our experts work actively on international and national committees, such as the International Consumer Products Health and Safety Organisation, International Federation of Inspection Agencies, International Standards Organisation and the International Association for Food Protection. Supporting ethical supply chains In recent years, consumers have become increasingly interested in the social and environmental aspects involved in the development of what they purchase and demand products that have been sustainably and ethically sourced and manufactured. We support our clients in monitoring their suppliers with Social Responsibility Audits and Workplace Conditions Assessment to prohibit the use of forced or child labour, discrimination or harassment, as well as assessing physical facilities of the unit, such as health and safety, chemical products, systems management and environment. Intertek s Ethical Sourcing Forum is a unique industry event that brings together members of the global sustainability community to address emerging supply chain challenges. Utilising Intertek s industry experts and thousands of reports collected over many years of Corporate Responsibility and ESG (Environmental, Social & Governance) supplier audits, the event provides companies with the business intelligence and data they need to make informed decisions on their increasingly offshore, outsourced supply chains. Ensuring safety and quality in a developing world The rise in middle class consumers in the growth economies has resulted in a broader variety of products entering the marketplace and a greater demand for quality. Developed nations have for some time required exporters to obtain a Certificate of Conformity before shipping in order to clear customs, which has unintentionally led to unsafe and unreliable products being forced into emerging economies. However, Intertek has helped to eliminate this situation. As more developing nations have implemented and enacted mandatory legislation for imported goods, Intertek Conformity Assessment Programmes ensure that poor quality and sub-standard products cannot be imported and so are eliminated from the national market. In March, Intertek was awarded a Certificate of Merit by the World Customs Organisation, in recognition of the inspection and training work we do for the Mozambican Revenue Authority to ensure the quality and safety of goods being exported to Mozambique. In June, Shanghai CIQ (Customs, Immigration & Quarantine) published its satisfaction index of local certification bodies. The index was compiled following a survey of 454 certified companies by the Shanghai Academy of Social Sciences. The survey made a comprehensive assessment of 20 certification bodies (15 of them foreign-invested) in areas such as credibility, service standard and impartial operation. Intertek tops the list of foreign-invested and is ranked number two out of all 20 (the first being Shanghai Academy of Environmental Sciences). Providing innovative solutions to today s global needs Intertek s history dates back over 130 years to some of the world s early pioneers in scientific innovation and trade. Thomas Edison, inventor of the first electric light bulb, established the Lamp Testing Bureau, later named the Electrical Testing Laboratories, which is the ETL mark that Intertek applies today. That spirit of innovation continues. In Germany, Intertek s Transportation Technologies business has provided electric vehicle charging stations as part of the ee-tour Allgäu project (efficient electric mobility and tourism in the Allgäu region) being run by partners from business and academia. To date, the project has enabled more than 50 different electric vehicles to be made available to tourists and residents to hire or borrow at various rental stations in the Allgäu region. Trials are also being conducted for potential applications of electric vehicles for everyday use by companies and community schemes in the region. With food traceability becoming increasingly important across the global supply chain, Intertek s Food Services business is demonstrating its commitment to the challenges faced by the industry through becoming a founding sponsor of a Global Food Traceability Centre which is run in partnership with the Institute of Food Technologists ( IFT ). The Centre provides unbiased, knowledgeable and scientific-based advice to the global food industry, providing insight and understanding into food traceability. The IFT will act as a central point where industry, academic, and government experts can work together with consumer groups to conduct research, discuss challenges, adopt best practices and implement practical traceability solutions. Intertek is also an approved Certification Body for the Roundtable of Sustainable Palm Oil ( RSPO ) Supply Chain Certification. Palm oil is the most widely used vegetable oil and is a common ingredient in many foodstuffs and personal care products. Oil palms can only be cultivated in tropical areas and increasing demand due to population growth is putting pressure on local environments and ecosystems. Intertek s RSPO Supply Chain Certification ensures traceability along all stages of the agri-food value chain including refining, trading, manufacturing and distribution of palm oil products. 3 Sustainability and CSR continued In the field of medicine, Intertek provides a wide range of analytical and testing services to address the issues of quality, purity, stability and chemical problem solving in the development of in vitro diagnostic devices and reagents. In vitro devices are used to perform tests on samples, such as blood, urine and human tissue, to help detect infection, diagnose a medical condition, prevent disease or monitor drug therapies. Better targeted diagnostics can lead to better treatment decisions and therapies. During 2013, Intertek launched a new testing panel that can identify the early signs of osteoporosis (low bone density). Conventional technology, such as bone mineral density scans, only enables us to diagnose osteoporosis after it has developed; whereas Intertek s testing panel only needs 2ml of blood to test three key indicators in order to diagnose osteoporosis early and monitor the effectiveness of treatment. Offering vital support in the development of alternative energy resources As demand for clean and renewable energy continues to grow significantly, Intertek is able to provide the most comprehensive testing, certification and consulting expertise in the industry. Our services include testing of solar panels and wind turbines, wave and tidal consultancy, and biomass and biofuels testing and inspection. In 2013, Intertek was proud to receive the ProCana Brasil Prêmio MasterCana Award for expert services to the biofuels industry in Brazil for the second year in a row. This prestigious award recognises the important role Intertek has played since 1998 in supporting the large and growing Brazilian biofuels industry. Stewardship and governance Intertek is committed to building a sustainable business. Its Board of Directors oversees and is responsible for the Group s strategy, performance and risk management (see pages 41 to 47 of the full Annual Report). The Board acknowledges the importance of diversity in the boardroom as a driver of good governance. As at 31 December 2013, the Board s composition was 20% female and 80% male and for the senior leadership group (314 people at the end of 2013), 20% female and 80% male. To read more about our Board Diversity see page 45 of the full Annual Report. Sustainability and CSR are integrated into Intertek through policy distribution. Our operations and support functions are responsible for identifying and evaluating risks applicable to their areas of the business and the design and operation of suitable internal controls (see Principal Risks on pages 14 to 17 of the full Annual Report). The Board has overall accountability for Intertek s sustainability and CSR, with Group-wide strategy and implementation being the responsibility of the Group Vice President of Human Resources. Intertek people Intertek is a diverse company of more than 36,000 employees, operating in over 100 countries. As a global company, we enable our people to share their skills and knowledge across geographical, cultural and technical borders. We have a strong emphasis on professional collaboration, training and development and this, together with the strength of our collective leadership, ensures that our people remain inspired to deliver world-leading quality solutions. Intertek is committed to maintaining high standards of fairness, respect and safety and adheres to the principles of the UN s Convention on Human Rights and the International Labour Organisation s core conventions. Employee survey 2013 The results of our 2012 employee engagement survey showed us that there were three particular areas where we needed to increase our attention globally: Organisation Direction (clarity of strategy, our progress and future direction), Social and Environmental Responsibility, and Performance Management and Rewards. From this, we took a number of initiatives to make positive changes in these areas and this has resulted in a positive improvement across all categories in our 2013 engagement survey. The results of our 2013 global employee survey show that overall engagement is up 2% on the previous year. Areas making most progress are: people: opportunities for personal development; training to improve skills in the current job; receiving on-going feedback; process: respecting safety rules; having the tools to collaborate and to do the job; improving process efficiency; processes which help provide good customer service; co-operation across the business; and society: management support to diversity; social responsibility in the community. Areas that are improving but need continued focus are: ensuring employees can speak up and challenge traditions; clarifying the business strategy and values; better co-operation between businesses and sharing best practices; and better communications keeping employees informed and taking their opinions into account. Areas that are still in need of attention are: information, resources and feedback to develop as a professional; and benefits, recognition, equity of rewards. We will continue with the global and local activities implemented as a response to the surveys. 4 Male : Female by region Americas Male Female Asia EMEA At 31 December 2013 Intertek employed 36,864 people, an increase of 5.7% over the previous year. Intertek total workforce gender breakdown Male Female 64% 36% 8,466 6,206 2,260 18,394 10,670 7,724 10,004 6,791 Intertek s gender diversity reflects the industries and qualification profiles typical of individuals working in the countries and business lines in which we operate. Revenue and headcount Revenue ( m) Headcount Total number of Intertek employees over the last five years in relation to revenue shows continuing growth in employment and careers. 3,213 2,184 36,864 2,054 34,882 1,749 31,712 1,374 27,044 1,237 25,183 Investing in our people During 2013, we further extended our online training programmes to a total of 26,000 employees in 61 countries, providing access to more than 280 internally-developed courses, webinars, assessments and instructor-led training. To date, more than 211,000 online courses have been completed by over 16,500 people. A sustainable executive talent pipeline is paramount to meeting our near-term and future strategic goals. The Intertek Executive Academy was established in 2012 to enhance our leadership pool for future business needs and growth and prepare Intertek leaders to deliver our strategy. Those invited to participate are already established and proven managers from across the Group and the Academy gives participants the opportunity to enhance their leadership skills and to grow with Intertek over the coming years. Throughout the programme participants are supported by coaching from both in-house and external mentors. In China Intertek has, for the sixth year in a row, been voted as one of the 100 Best HRM Companies in a survey initiated by 51job.com the most influential HR services provider and social media recruitment platform in China. Intertek is the only testing, inspection, certification ( TIC ) company that has been consecutively credited since the event first took place in China is the largest employing country in Intertek, with 8,800 people. Professional conduct Intertek is committed to maintaining the total confidence of its customers and shareholders. One of the Group s primary business objectives is to ensure both compliance with local, national and international laws, and the accuracy and validity of reports and certificates that it provides to customers. The foundations of our Compliance Policy rest with our employees, each of whom must sign the Company s Code of Ethics, confirming acceptance of the high standards expected of them in all business dealings. The Code requires that employees act with integrity and in an open, honest, ethical and socially responsible manner. The Code of Ethics is supported by regular in-service training, advice on ethical issues and well-publicised internal telephone hotlines, allowing protected reporting of concerns regarding non-compliance. Intertek has a strict policy of zero-tolerance regarding breaches of compliance policy. During 2013 there were 15 reports of non-compliance which were substantiated claims requiring remedial action. Reports of non-compliance are closely monitored and the Audit & Risk Committee periodically reviews the outcomes of the hotline and compliance reports on behalf of the Board. 5 Sustainability and CSR continued Health & Safety Intertek is committed to the safety and welfare of its employees, clients and third parties connected with its business. We aim to provide a safe working environment and ensure that our employees have the information and resources to perform their duties safely. However, although we achieved a reduction in lost time injuries and medical treatment injuries, we are very saddened to report that two employee fatalities occurred during early 2013, while working on client sites. One was a consequence of a terrorist attack on an oil installation in Algeria, the other an explosion during pressure tests in China. The health and safety of our people and activities are the responsibility of line management and employees themselves. All incidents are recorded and reported to the designated country Health and Safety Representative who in turn reports through to the respective country line management and Intertek Group. This enables us to take targeted action in reducing health and safety risks to our employees, clients and others. We are committed to maintaining high standards of health and safety and complying with relevant local legislation and guidelines wherever we operate. We continually seek to minimise risk to our employees, clients and others who may be affected by our operations, and our procedures are regularly monitored by our compliance team to ensure that they are being properly applied in practice Occupational fatalities Lost time injuries rate* n/a Medical treatment injuries rate* n/a * Rates refer to the number of lost-time injuries and medical treatment injuries occurring per 200,000 hours worked. This year Intertek has focused on better reporting and analysis of hazardous near miss incidents. From this, we can prevent a recurrence, identify any weaknesses in operational procedures and potentially reveal patterns from which lessons can be learned. Further training for managers and supervisors has taken place throughout the year to help them understand their health, safety & environment ( HSE ) responsibilities and to help improve stewardship of HSE issues. Our environment The work Intertek performs for its clients helps to reduce harm to the environment and contributes to tackling climate change. Within our own operations, controls are in place to minimise our impact on the environment through reducing energy consumption in our buildings and facilities, utilising renewable sources of energy,
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