ESG Report 2020

Catalyzing
positive change
Environment

ESG
report2020

SocialGovernanceContents

03
04
10
22
31
37
40

Message from the CEO

Introduction to Stahl

Environmental Impact

Social Impact

GovernanceOutlook

AppendixMessage from our CEO

Introduction

Environment

SocialGovernanceOutlook3

Appendix

Message from the CEO
Welcome to the Stahl 2020 Environment, Social & Governance (ESG) report.
The COVID-19 pandemic hit society hard in 2020, and Stahl was not immune. However, thanks to
the resilience of our people, and some swift action taken early on in the crisis, we adapted quickly
to the changing environment and emerged stronger than ever. I am very proud of the way ourpeople came together as a team during this time.
Increased engagement with stakeholders on ESG was a feature of 2020. With travelling restricted formuch of the year, we created a busy program of interviews, presentations, webinars and social media
events on a range of ESG topics. Helping our partners achieve their own goals in this way also motivates us to go further with our own ambitions.
In 2020, we launched the Stahl ESG Roadmap, in which concrete targets for 2023 and 2030 wereesta­blished for the company with respect to its environmental, social and governance commitments.
Stahl’s commitment to inclusion and diversity across the organization, as expressed in this roadmap,
will result in greater talent retention and superior performance for years to come.
The COVID-19 pandemic has affected millions of lives, but climate change continues to be the greatest
existential threat to the planet. In 2020, we made concrete steps to accelerate the move away fromusing fossil fuel resources in our operations and products. We established targets for solar power sourcing at our manufacturing sites and research into non-fossil fuel technology reached newheights, with the release of two renewable carbon portfolios: Stahl NuVera® and Stahl Relca®Bio ™.
If 2020 taught us anything, it’s that society and industry will continue to face new challenges. Stahl
is committed to being a catalyst for positive change and we continue to view these challenges as anopportunity to create a better future. In short, we believe we can do well by doing good things. I hope
you enjoy reading about them.

Sincerely,
Huub van Beijeren, CEO"In 2020, we launched the Stahl ESG
Roadmap, in which concrete targets for 2023
and 2030 were established for the company
with respect to its environmental, social andgovernance commitments."

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

4

Appendix

Introduction to Stahl

If it can be imagined,
it can be created
Stahl develops and delivers necessary
chemistry that makes everyday materials
look good, feel softer, resist scratching,repel stains, and last longer. We provide
products and services to Automotive,
Footwear, Apparel & Accessories,
Architectural & Interior Design, Home
furnishing, and Leisure & Lifestyle. We use
two primary brands (Stahl and PielColor)
to promote our products and services,along with many product trademarks within
the portfolios. In close collaboration with
our partners, we provide high-performing,
low-impact solutions to drive the transition
to a fully sustainable value chain and achemistry based on renewable feedstocks.

Environment

ESG
report2020

SocialGovernanceMessage from our CEO

Introduction

Environment

SocialGovernanceOutlook5

Appendix

Chemistry acrossthe value chain
Our global reach and supply chain

Collaboration for a better world

Stahl has 11 manufacturing sites (The Netherlands, France,

With our world facing a series of pressing environmental challen-

Germany, Italy, Spain, Brazil, Mexico, USA, India, China and Sin-ges, Stahl believes that the chemical industry can play a key role

gapore) and 37 strategically located technical service laboratory

in enabling high living standards within the planetary boundaries.

facilities and sales support offices in 22 countries. We operate in

By working together, organizations across the industry can im-

Argentina, Bangladesh, Brazil, China, France, Germany, India, In-prove the quality of our products and services, helping to shape adonesia, Italy, Japan, Mexico, Netherlands, Pakistan, Singapore,better world for more people.

Spain, Turkey and the USA. We are active in over 70 countries.
For nearly a century, Stahl has been collaborating with a range of
Stahl manufactures products at sites around the world or atpartners to develop and deliver necessary chemistry. By fostering

outsourced locations via service agreements. Our raw materialtransparency and working to improve our environmental impact,

suppliers are chemical companies and include most of the major

we have helped protect the communities in which we operate andglobal chemical corporations. In addition to our 1,514 direct sup-shape a better chemical industry.

pliers for raw materials in 2020, our supply chain also included
568 suppliers for logistics and 4,965 suppliers for other materials

Building on this track record of co-creation, we aim to embracesuch as work clothes, office suppliers and laboratory equipment.

new technologies and enter new sectors to create solutions thatcan meet the demands of our changing world. In doing so, we willcontinue to champion human rights, inclusion and diversity, andCommitment to the whole value chain

the safety of our people.

With 30% of our 1,790 employees dedicated to process innovation, product research, applications development, open innovation and technical service, we continue to focus on solutions
that can meet the needs of the whole value chain. In 2020, we
intensified engagement with our stakeholders on sustainable
development, chemical compliance, lifecycle assessment andrenewable feedstocks.

'Stahl believes thatthe chemical industry
can play a key role inenabling high living
standards within theplanetary boundaries.'

Message from our CEO

Introduction

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6

Appendix

Stahl’s strategic pillars
As we look ahead, we have identified four areas of strategic importance. By applying our focus andefforts to these area's and working with partners throughout the value chain, we strive to raise thebar and deliver more value for our employees, customers, partners, investors, and society at large.

Renewable
feedstockOpen
innovation

Digitaltransformation

Sustainable
development

The most significant contribution theOpen innovation is the process of

Stahl is introducing a ten-year digital

Our sustainable development practices

chemical industry can make to mitiga-

collaborating with external individuals,

transformation strategy that incorpo-

are marked by a commitment to socialting climate change is to replace fossil

teams and organizations on the deve-

rates everything from unified commu-

progress, environmental balance andfuel as the raw material in its products.

lopment of an agreed project or to reachnications, the internet of things andeconomic growth. We are committed toTransitioning to renewable feedstocka shared goal. In particular, open inno-

artificial intelligence to e-commerce

all 17 Sustainable Development Goals,

means eliminating non-renewablevation offers the opportunity to innovateand blockchain. This journey will change

which were launched by the United

carbon resources such as coal, oil andmore efficiently, explore new markets,

the way we work with our customers, our

Nations as a common 2030 Agenda re-natural gas as feedstocks for orga-

better address customer demands, andsupply chain, our investors and our own

quiring active involvement of individuals,

nic chemistry. Stahl’s efforts to drive

improve the environmental impact of ouremployees, and help us create morebusinesses, civil society and countries

renewable feedstock chemistry andsolutions. To do this, Stahl will focus onvalue for our stakeholders.

around the world. In 2020, we launchedsupport a lower-fossil-carbon economy

areas where our capabilities allow us toa new ESG roadmap with concrete goals

starts with our own innovation, but also

seize opportunities for positive impact:

for 2023 and 2030.

involves technology partnerships andrenewable feedstocks, water quality,

involvement in advocacy groups, like theand advanced functional chemistry.

Renewable Carbon Initiative.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

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Appendix

Stahl at a glance in 2020
We create specialty chemistry for coatings, processing, and the treatment ofmany different everyday materials.

11

Workforce

Manufacturing sites(50% located inemerging markets)

1,514

raw materials suppliers
from 54 countries

34

Sales
offices

1790
25% |

11

30%

R&D
Labs

OUR DRIVING VALUES

75%

Employees dedicatedto innovation, researchand technical service

Cooperation
One team, one task,
one Stahl

ESG ROADMAP

459

Nationalities

Stahl
Campus®
locations37

applicationlaboratories

9

Centers of
Excellence

Initiative
Go for it!

Responsibility
Always contribute to asustainable future

Imagination
Think beyond boundaries

STRATEGIC PILLARS

Environment
SocialGovernance€669 million
sales revenue

75

Renewable
feedstock

Open
Innovation

DigitalTransformation

Activepatent families**Including patent applications

Powered by Wendel GroupOUR COMMITMENTS

OUR PARTNERSHIPS

Markets & products

Automotive | Footwear, Apparel & Accessories | Architectural & Interior
Design | Industrial Applications | Leisure & Lifestyle | Home Furnishing

Our products enhance:

Leather | PU | PVC | TPO | Fabric | EPDM | Bio-based substrates

A responsible organization

A sustainable future

UNIVERSITIES

Sustainable
Development

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

8

Appendix

Key 2020 results

Swift COVID-19 response

CO2 emission intensity reduced by 34%

Lower water and energy use

Achieving ZDHC Level 3 Status

We responded quickly to the COVID-19 pandemic with effec-

In 2020, we far exceeded our five-year goal of 10% CO2

Lower production volumes between March and August

In 2020, a total of 1,217 Stahl products achieved Level 3

tive action across all of our global locations. Laboratories andemission intensity reduction. Compared to 2015, we2020 meant a corresponding drop in consumption of

status in the ZDHC Gateway chemical conformance mo-

factories remained open during the lockdown periods. The

achieved a relative reduction of 34% and an absolute

water and energy at our sites.

dule for our global leather chemicals product range

health and safety of our employees remained a priority for

reduction of 37% in our Scope 1 and 2 CO2 emissions.

and for the Pielcolor portfolio.

us, and every effort was made to ensure their physical andemotional wellbeing during this challenging period.

ESG roadmap
In 2020, Stahl introduced an ESG Roadmap.
This 10-year plan includes commitments andtargets we have established for 2023 and 2030.

Updated SHE Policy

Social & economic resilience

Employee Engagement
Platform implemented

In spite of a drop in business activity related toreporting our Safety, Health and Environment

This year we implemented our new Employee

the pandemic in the first half of 2020, Stahl ended(SHE) policy. The safety KPIs in this report reflect

Engagement Platform (EEP), which is designed

the year with a return to 2019 sales levels and ato encourage employee participation and tohealthy order book. This was made possible by thefoster commitment to our company culture.

resilience and dedication demonstrated by our

We implemented new criteria for governing andthe improvements made in recent years: the Total
Recordable Incidents (TRI) frequency rate, theLost Time Incidents (LTI) frequency and severity
rate were all lower in 2020 compared to 2019.

employees during the whole year.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

9

Appendix

Our ESG roadmap
to 2030
Stahl’s ESG goal is to achieve a more transparent industry that4.

continuously improves its environmental and social footprint.

To nurture diversity and inclusion to continuously
improve employee skills and company attractivenessTo achieve this goal, we:

5.

•

6.

To foster ethical behavior by providing training
and robust compliance programs

Report on ESG criteria and set ambitious ESG targets for thecompany, anchored in the UN Global Compact principles.

•

Collaborate with parties throughout the value chain on
topics like chemical compliance, natural resource

To select and engage with suppliers based onrecognized ESG standards

7.

To foster sustainable development as a mindset,
motivating employees throughout the company.

consumption and fair and equitable labor practices.
•••

Drive an employee culture that is open, engaged,
diverse, and inclusive.

Accountability against our targets

Work with our partners and suppliers to ensure rigorous

We are assessed on our ESG performance by a third-party auditor

product stewardship.

(Deloitte in 2020) selected by Wendel, Stahl’s majority share-

Participate in industry working and advocacy groups toholder (other minority shareholders include Clariant and BASF).

tackle key social and environmental issues, such as climate

Wendel also monitors our EFPD (Extra Financial Performancechange and water management.

Declaration) and Duty of Care and Sapin­II compliance.

In 2020, Stahl developed an ESG Roadmap. This 10-year plan

The ESG roadmap and agenda are

includes commitments and targets we have established for 2023
and 2030. These targets are supported by Key Performance Indi-

Our ESG focus agenda

approved by the Board of Directors

cators (KPIs) and are split into the three ESG areas below. You canview Stahl’s ESG roadmap on our website.
Our key commitments include:1.

To continuously minimize direct environmental

Environment

SocialGovernance

Climate change &climate resilience

Health& safety

Ethicalbehavior

Water

Human capital

Diversity& leadership

impact and carbon footprint
2.

To ensure a safe working environment for our employees

Stahl products

Human rights

ESG incentives

3.

To consolidate Stahl’s ESG leadership position by

Raw materials

Societalcommitment

Supply chain

engagement with influential NGOs and IGOs

and are discussed by the board andStahl management team at least oncea year. The commitments and targets
from our roadmap are highlighted in therespective sections throughout
the report.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

10

Appendix

Environmental Impact

Committed tobeing a catalyst
for positive change
for customers, supply chain partners andfor the communities in which we operate.
Our focus is on reducing the environmental
impact of our own operations (including
purchased raw materials) as well as that ofthe value chain into which we provide our
products and services.

Emissions
Waste

LCA

Water

Message from our CEO

Introduction

Environment

SocialGovernanceOutlookLife Cycle Assessment categories

11

Appendix

Life Cycle Assessment
Life Cycle Assessment (LCA) is a methodology that allows theenvironmental impact of a product to be calculated so thatmeaningful comparisons and decisions can be made about its environmental impact over the course of its life. The Stahl Life Cycle
Assessment contains nine impact categories. These categories
are explained in more detail on our website.
Our strategy is to use the LCA methodology to:

Climate Change

Abiotic Depletion

Land Use•

Provide LCA data for 300+ strategic products by 2030•

Build a database of environmental impact data for our
product portfolios•

Develop and exchange relevant LCA data with clients as an
input for their environmental impact calculations•

Provide technical support for clients on LCA data collection
for their own processes and products.

Water Consumption

Eutrophication

Acidification•

Use LCA data to manage and reduce our reported Scope 3
greenhouse gas emissions.

In 2020 we completed the collection of LCA data for 17 strategic
products. This data is available to exchange with value chain partners. For 2021, we have set a target to establish LCA data for atleast another 30 strategic products.

Toxicity

Photochemical
Ozone Formation

Ozone depletion

Our 2023 ESG Roadmap target is
to collect and report complete LCA
data for 300 strategic products.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

12

Appendix

Renewable carbon feedstockre­placement of fossil fuels in chemicals with resources that

Proviera® - Probiotics for leather™

Transitioning to renewable feedstock entails the elimination ofhave not been extracted from the earth’s surface (geosphere).

Aligned with our commitment to accelerating the substitution ofnon-­renewable carbon resources such as coal, oil and natural gas

Renewable carbon can come from three sources; biomass, cap-

fossil fuel-based raw materials with Renewable Carbon resour-

as feedstocks for organic chemistry, otherwise known as de-­tured carbon, and recycled plastics. Stahl’s research into naturalces, our probiotic technology for leather uses only biomass raw

fossilization. We focus on renewable carbon as the main feeds-

resource-based products, like Proviera® Probiotics for leather

materials, thereby reducing greenhouse gas emissions and mini-

tock for our products.

and bio-based polyurethanes, is directly linked to this movement

mizing the impact on global warming.

away from fossil fuels. We have many projects in R&D focused
Humankind’s consumption of carbon-based material resources

on finding renewable carbon feedstock alternatives to petrole-

In 2020, Stahl joined the Renewable Carbon Initiative (RCI) withhas created a series of interconnected environmental challenges,

um-based chemicals.

the aim of helping to accelerate the transition from fossil fuels

including climate change and pollution of air, earth, and water.

carbon to renewable carbon for all organic chemicals. More thanIn view of these challenges, the chemicals industry must reduce

Stahl NuVera™ and Stahl Relca©Bio

100 recognized experts support RCI. More detail on our involve-

its dependence on non-renewable resources and deliver ne-

Stahl NuVera™ and Stahl Relca®Bio are examples of new portfo-

ment with RCI can be found here.

cessary solutions that enable sustainable living. Building on ourlios of renewable carbon-based products that were launched inproactive approach to regulatory changes, and using our advan-

2020. In 2021 we will launch a range of leather chemicals, Stahl

ced materials science capabilities, Stahl aims to drive the use of

Ympact®, also based on renewable feedstocks. These productrenewable carbon.

ranges are derived either from plant-based biomass (typicallyOur goal is to progressively increase
the renewable carbon content of ourvegetable oils or sugars), or from captured carbon sources (forRenewable carbon is the terminology used to describe thepurchased raw materials each year.

example, CO2 released from industrial processes.

© Nova Institute, 2020

Renewable energy
and renewable carbon
for a sustainable future
Decarbonisation

Solar

Wind

Hydro

RenewableenergyIndustry

Industry

Mobility

CO2

Biomass

Recycling

Renewable
carbonHydrogenRenewable
Carbon based
Fuels

Chemicals

Plastics

Other materials

Message from our CEO

Introduction

Environment

SocialGovernanceImpact topics
We are continuously upgrading our manufacturing sites and laboratory facilities in order to achieve energy, waste and water efficiencies and to reduce ourenvironmental footprint. To monitor the effectiveness of our mitigation activities, we measure and report on the following impact topics: (1) CO2 emissions andenergy; (2) Water use and pollution; (3) Waste.
Reduced CO2 emissions by 34% in five years

Outlook

13

Appendix

Scope 1 and Scope 2 CO2 emissions
2020

2019

Scope 1: direct GHG emission (metric tons CO2-EQ.)

13,85816,091*

Scope 2: electricity
indirect emission sources (metric tons CO2-EQ.)

6,064

6,716*

CO2 emission scope 1+2 (in tons)

19,92222,807*

Total production volume (in tons)

181,453

208,114

CO2 intensity (emissions per tons produced)

0.10980.1096*

CO2 is the most important Greenhouse Gas (GHG) for Stahl.
Each year we report our Scope 1, 2 and 3 GHG emissions.
•

Scope 1: Direct GHG emissions are those from sources owned or operationallycontrolled by the company: company owned or leased cars, other company
vehicles and gas and oil used on site.

•

Scope 2: Indirect emission sources are those that occur through buying inenergy (electricity, steam, heat and cooling) from the grid or district heating or
cooling systems.

•

Scope 3: All indirect emissions (not included in scope 2) that occur inthe value chain of the reporting company, including both upstream anddownstream emissions.

In 2015, we set a goal to reduce our CO2 emissions per ton produced by 10% in five
years. By 2020, we achieved a relative reduction of 34% (per tons produced) and an
absolute reduction of 37%. This 2015 goal is aligned with the Paris Climate Agreement—an agreement within the United Nations Framework Convention on Climate
Change (UNFCCC), relative to greenhouse gas emissions mitigation, adaptation, and finance.
Our CO2 emissions are calculated according to the Greenhouse Gas (GHG) protocol.
Our manufacturing sites are our main source of Scope 1 and 2 CO2, burning gas,
furnace oil and briquettes (Scope 1) and consuming electricity (Scope 2).

Our 2030 target is to reduce our Scope 1 and 2
CO2 emissions by 2% each year.
*2019 data was restated to account for a reporting unit error
Data verified and validated by Deloitte.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

Scope 3 GHG emissions
Scope 3: estimation of the other indirectemission sources (CO2-EQ. X 1 million)

14

Appendix

Indirect (Scope 3) CO2 emissions
2020

2019

Stahl estimates and reports on Scope 3 indirect greenhouse gas emissions, follo-

470-500

500-530

wing the GHG Protocol “Corporate Value Chain (Scope 3) Accounting and ReportingStandard (Chapter 11)”. Quantification of scope 3 emissions is often based onassumptions and estimated calculations, given the unavailability of data either
downstream or upstream in the supply chain. Focusing the scope of the calculationand selecting the most relevant emission sources is therefore of critical importance. We report on seven of the 15 Scope 3 categories.
In 2020 we began to use primary life cycle assessment data to calculate the environmental impact of the chemical raw materials that we use to manufacture our
products, which is a significant part of our estimated scope 3 impact. This provides

Scope 3 GHG emissions
per category

us with primary data that is not only used to provide our clients with input data,
but also to make an accurate estimation of the associated Scope 3 emissions. Thisin turn enables us to make more informed decisions about the substitution of raw
materials with alternatives, such as renewable carbon alternatives.

100%

Purchased goods and services (56% in 2020) and ‘end-of-life treatment of sold90%

products’ (28% in 2020) are the largest sources of our Scope 3 CO2 emissions. Bothcategories are related to the input and output of materials in the production pro-80%

cess. Activities to reduce these emissions are:70%•

Category 1 & 12: switch from fossil fuels-based chemistry to renewable feedstock.

60%•

Reduction in business travel: our ESG roadmap target to reduce Businesstravel emissions by 20% in 2023 and by 50% in 2030 (vs 2019).

50%

Other sources are Stahl employees traveling by car and plane, and transportation

40%

Cat. 1: Purchased goods and services

30%

Cat. 12: End of life treatement of sold productsof chemicals, which are typically delivered by road, maritime, rail and air. The COVID-19 pandemic had an impact on emissions - business travel emissions reduced
during the lockdown periods in 2020.

20%

Cat. 4: Upstream transportation and distribution
10%

Other (2 capital goods, 9 downstreamtransportation anddistribution, 5 waste in operations and 3 Fuel and energy
related activities)

0%
2020

2019

Data verified and validated by Deloitte.

Our 2030 goal is to reduce business travel C02
emissions by 50% (vs 2019) while maintaining highlevels of service and customer engagement.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

15

Appendix

Energy efficiency and renewable energy
Stahl’s energy consumption is the sum of electricity, gas, oil,and at our Stahl Brazil site, on-site solar energy is supplying 50%

steam, renewable briquettes and high-speed diesel consumedof the factory’s electricity needs.

Our 2030 target is to have six
manufacturing sites using

at the manufacturing sites. Several energy projects are underway towards the goal of self-sufficiency and renewable energy

The more we produce, the more energy we need. Therefore, we re-sourcing. To achieve energy efficiencies, we continuously upgrade

port energy intensity, the energy consumption per ton produced.

our production sites and laboratory facilities, for example with

In 2020, this slightly increased as our total energy consumption in

new reactors, boilers, condensers and storage equipment.

TJ remained stable, while our production volume decreased.

on-site re­newable energy.

Switching to renewable energy at European sites has been another key contributor to achieving our emissions reduction goal,

Energy consumption

Energy sources
2020

2019

Energy - in TerraJoules (TJ)

334

382*

Share of renewable energy

34%

35%

Total production
volume – in tons

181,453

208,114

Energy intensity (TJ/ton)

0.001840.00184*

2% Steam

2% High Speed Diesel

12% Renewable | Briquettes

9% Non Renewable
Grey electricity

Renewable | Briquettes

Renewable | Electricity - purcha

Intensity is related to production volumes (energy consumption / production volume)

Renewable | Electricity self-gen
20% Non Renewable | Furnace Oil

22% Renewable | Electricity - purchased

Non renewable | Gas
Non renewable | Furnace Oil

Non renewable | Grey electricity

Non renewable| High Speed Die
1% Renewable | Electricity- self-generated
Non renewable | Steam

32% Non Renewable | Gas*2019 data was restated to account for a reporting unit error
Data verified and validated by Deloitte.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

Appendix

Water consumption
2020

2019

Water consumption (m3)273,045

330,649

Total production volume (tons)

181,453

208,114

1.505

1.588

2020

2019

373,958

460,097

Water intensity (m3 used
per ton produced)

Other water use
Other water use (m )3

Data verified and validated by Deloitte.

Water management

Water consumption dropped

Water management underpins many of our ESG ambitions. We

Total consumption of water dropped by 20% in 2020 compared

dedicate significant resources to improving the quality of water

to 2019, due to the lower production volumes at our sites. Stahl’s

effluent at our customers’ facilities and developing our own

water consumption is closely linked to its factories, which largely

water-based alternatives to organic solvent-based products.

remained open during the pandemic lockdowns. When measured

The improvement of our own water effluent stream is also a

per tons produced, our water intensity improved significantly

focus for our process development teams. Stahl sources water

towards the end of the year due to improved production volumes

from municipality sources and from groundwater, and use it forand ended 2020 5% below 2019.

two main purposes:
					

Other water use•

Commercial products, i.e. water-based technology

To help the community to maintain low level of groundwater,(where water replaces petrochemical-based solvents)

at our Palazzolo site in Italy, cooling water is temporarily with­

Process water at manufacturing sites (cleaning tanks,

drawn (not consumed) from a ground well and is kept completely

pipes and for processing, heating & cooling), and utility

separate from the production of chemical products. It is later

water for labs and offices

discharged at a controlled temperature into the Seveso river•

next to the manufacturing site, in line with relevant guidelines.

16

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

Appendix

Managing chemical waste

Reducing water consumption and waste in the value chain

Stahl reports and actively aims to reduce both hazardous waste and non-hazardous

Stahl has introduced innovative ways to support our clients in

waste. In our operations, hazardous waste originates from raw materials, manu-

reducing their water and waste impact on the environment. For

factured products, waste from process installations (e.g. sludge from wastewater

example, Stahl BeTan® is a system of portfolio products and pro-treatment), waste from laboratories and empty used packaging. Non-hazardous

cesses that enables tanners to reduce their water consumption

waste includes glass, paper, wood, plastic, domestic and demolition waste.

and drive the efficiency of the beamhouse and tanning processes,
without compromising on the quality of the leather. Stahl BeTan®

We prevent waste through waste minimization, re-use, recovery and recycling, as

solutions all comply with ZDHC’s Manufacturing Restricted

appropriate. Waste reduction and finding useful outlets, especially avoiding waste,

Substance Lists. Stahl EasyWhite Tan™ is another example of aare important from both an economic and environmental point of view.

water reducing tanning technology that has been successfully
introduced to our customers. Significant growth in the use of thisproduct was a feature of 2020.

Waste generation

The Proviera® Probiotics for Leather range of products is part
2020

2019

of the Stahl BeTan® system and contributes to the reduction

Hazardous waste (tons)

9,920

11,302in water and waste impact. In addition to this, products in the

Non-hazardous waste (tons)

1,397

1,521

Proviera® Probiotics for Leather range are made from 100%

Total waste (tons)

11,317

12,824

Total production volume (tons)

181,453

208,114

0.062

0.062

Waste intensity (per tons produced)

renewable carbon raw materials, which minimizes their Climate Change impact.
As we will see in more detail in the ‘Social’ chapter of this report,
Stahl also actively participates in public-private partnerships

Wastewater sent to external treatment (tons)*

2020

2019

12,452

14,447in India and Ethiopia to reduce water pollution. In India, Stahl
has joined forces with the NGO Solidaridad and other partners
to reduce pollution in the Ganges linked to the Kanpur Leather* This indicator represents the Stahl sites in Waalwijk (the Netherlands), Calhoun (USA) and Toluca (Mexico). At Waalwijk, this is

Cluster. In Ethiopia, Stahl, Solidaridad and CSR Netherlands lau-water used for cleaning of tanks. In Toluca, this is wastewater collected from the production plant for cleaning of tanks, reactors

nched the Green Tanning Initiative, which introduces low impact

and equipment in general and also for services like bathrooms and showers. Our other sites have an on-site wastewater treat-

leather-making and aims to create sustainable employment inment installation.

the Ethiopian leather industry.
Data verified and validated by Deloitte.

17

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

18

Appendix

In focus: Stahl Campus

Sharing knowledge andbest practice acrossthe supply chainsafety and reduce impact across the industry. In 2014 we launched Stahl Campus®, a series of global knowledge

52

79

centers designed to educate and train NGOs, brands, suppliers, distributors, customers and other stakeholders

on-site visits

on-line training sessions

Stahl is committed to sharing knowledge and best practice in order to achieve greater transparency, enhanceon relevant topics affecting the value chain. Participants complete theoretical and practical training modules
knowledge and best practices in the leather production process and our Performance Coatings training courses,> 1,000 trainees

where we share knowledge and provide training on the wide range of possibilities in coating formulations.

From 131 different organizations, trained at Stahl Campus® facilities aroundat Stahl’s state-of-the-art laboratories. Examples include our Leather training courses, where we share ourthe world, despite COVID-19 (travel) restrictions. This includes 92 customers,
The first center opened in Waalwijk (the Netherlands) and subsequently in León (Mexico) in 2015 and Guangzhou(China) in 2016. In 2019 the new Stahl Campus® Center of Excellence was opened in Kanpur (India). Our Automotive
Leather Finishing Post Graduate Certificate course (3 x 2-week modules held over the academic year) is conductedin collaboration with the University of Northampton (UK). Students receive an official Post Graduate Certificate
from the university upon completion of this unique course. In 2020, the Automotive Leather Finishing Post Graduate
Certificate course was held for the second time in Stahl Campus® Mexico. A third Post Graduate course is planned
for October 2021.

17 universities, and several brands, OEMs and designers.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

Appendix

Looking forward

Innovation and chemical compliance

Environment

Much of Stahl’s research and applications development is focused on reducing the environmental impact of its own products
and that of its customers. 18% of Stahl’s R&D (research and de-Most of our CO2 footprint is linked to the raw materials

velopment) projects are ESG driven: i.e., either linked to the elimi-

we use to make our products. As we look to the future,nation of restricted substances (such as ZDHC MRSL, Bluesign®

our environmental activities will therefore be centred

BSSL, ChemIQ and chemicals soon to be banned by the EU law

around (a) measuring the environmental impact of key

Reach), VOCs (Volatile Organic Compounds) or to the replacement

strategic products, (b) replacing fossil fuel raw materi-of fossil fuel raw materials.

als with renewable carbon alternatives, (c) eliminating
any unwanted substances in our products, and (d)A restricted substance is an unwanted chemical for whichinvesting in technology to further reduce the company’s

intentional use is limited or prohibited, by law or voluntarily by

Scope 1, 2 and 3 Greenhouse Gas emissions.

brands and companies. ESG driven R&D projects also include
saving energy and/or water for our own operations or those of

Climate Resilience is the capacity to adapt to the direct

our customers.

and indirect impacts of climate change, includingchanges in regulation and policy. Stahl is pro-actively

Significant resources are spent on developing water-based

building climate resilience into the company strategy

products and solvent-free products, both of which can reduceand operations. In order to achieve this, the company

water pollution at our customer's facilities. The long-term market

will notify climate risks and estimate the vulnerabi-

switch from solvent to water is a key driver in product develop-

lity and magnitude of these risks on its operations

ment, particularly in the Performance Coatings market segments.

and facilities.

Stahl became a ZDHC Value Chain Affiliate in October 2016 andofficially joined the foundation in its commitment to help lead the

Guided by the 10-year targets established in the Stahlclothing and footwear industry towards its 2020 goals with regard

ESG Roadmap, this will be our focus in 2021.

to the elimination of restricted substances from the supply chain.
Find out more about our involvement with ZDHC and our ZDHC
compliant products in the case on page 20.

19

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

20

Appendix

Case Study: Zero Discharge of Hazardous Chemicals

Chemical management: A goodstart transforms the end result
The Zero Discharge of Hazardous Chemicals (ZDHC) Foundation was

0

0

74

formed to eliminate the discharge of harmful substances into the

0

0

1143

environment. The ZDHC Gateway chemical conformance module1217

is designed to help manufacturers and suppliers in the footwear,
apparel and accessories industries to demonstrate their commitment
to responsible chemical management.

MR SL v.1.1

MR SL v.1.1

MR SL v.1.1

MR SL v. 2 .0

MR SL v. 2 .0

MR SL v. 2 .0

In order to achieve ZDHC certification, Stahl products and raw materials were tested using the Chem-MAP® verification system and our key

Level 1

Level 2

Level 3

European manufacturing facilities were audited. 1,217 of our products

A third-party review of docu-

A review of the chemical sup-Requires all the elements of MRSL

achieved Level 3 status in 2020. A list of Stahl’s ZDHC compliant
products are publicly available on the ZDHC Gateway portal. In 2021,

mentation or analytical test

plier’s product stewardship

Conformance Level 2 and a site visit

report are required to decide

practices is carried out by ato chemical supplier to evaluate pro-conformance to ZDHC MRSL.

third-party certifier.

duct stewardship.

500 additional products will be certified to level 3 and uploaded to
the ZDHC Gateway.
ZDHC is a key strategic partner for Stahl; we have been an active
member of ZDHC since 2016 and part of many subgroups and discussions about how to reduce more substances from the supply chain
in the future.

Our 2030 target is to have 100% of our footwear, garment andaccessories portfolio ZDHC certified, with a 2023 target of 80%.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

21

Appendix

In focus

Supplier assessment:
EcoVadis
Our ambition to achieve an EcoVadis Gold rating by 2023 will be

The evidence-based assessments are refined into scorecards

Stahl's 2030 target is to achieve anddriven by our efforts to ensure transparency throughout theand the scores lead to a bronze, silver, gold or platinum rating.

value chain and collaborate constructively.

Stahl was awarded with the EcoVadis Silver Medal in 2020.

maintain the EcoVadis Gold rating.

Stahl Procurement develops sustainable relationships with our

67% of our buying spend is assessed by EcoVadis

suppliers around the world to deliver added value and innovative

Of our raw materials suppliers, 11% is based in high-risk

solutions to our customers. Our emphasis on building partner-

countries, 89% in medium and (very) low risk in terms ofships means we feel a special responsibility when it comes to thecorruption and human rights. 67% of our total spend is

economic, ethical and environmental aspects of our suppliers

covered by the EcoVadis assessment/score.

The 2030 target for raw material
suppliers is a minimum EcoVadis
rating of 45/100, with a 2023 targetof 60/100 for our top 10 suppliers.

and the relationship we have with them. We respect our suppliers’
corporate culture and their employees, and maintain ethical relationships built on trust, mutual interest and respect.
We use the EcoVadis system to gain more insight into in the

Risk level of our
supplier countries

High

MediumLow

Very Low

Total

Raw material
suppliers

164

584

383

410

1,541

sustainability performance of our suppliers. The EcoVadis systemprovides holistic sustainability ratings on material topics for com-

% invited

32%

26%

22%

28%

26%

panies, as they pertain to their size, location and industry. The% scored

18%

16%

13%

15%

16%

evaluation is based on four main themes: environment, human

Total spend% scored

66%

71%

62%

67%

67%

and labor rights, business ethics, and responsible sourcing.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

22

AppendixSocial Impact

Creating chemistry
together

Our people
Health& safety

Training

Sustainable development includes our efforts
to protect the mental and physical wellbeingof people. We do this by:•••

Ensuring a safe working environment for our
employees and contractors at all sites, training
100% of Stahl employees in safety, healthbehavior and policies, and continuing to comply
with ISO certification.
Driving a culture of inclusion and diversity, byimplementing gender diversity argets and training
100% of our employees.
Working closely with our supply chain to ensure
the implementation of fair and equitable
labor practices.

HumanrightsSustainable
development

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

23

Appendix

Health & Safety
All Stahl’s activities, policies, monitoring, reporting and trai-

fication and Risk Assessment Methodology (SHIRAM), which has

ning align with our ambition of creating a true safety culture

been rolled out worldwide and is our standard methodology forwith a target of zero accidents and incidents. Our policies apply

safety risk assessment . This methodology has been designed toto all people working at Stahl, including temporary staff. Our

fit Stahl’s operations and processes, and to integrate best prac-

focus on safety extends to our customers and the communities

tices for Risk Assessment and Management. If our employees

around our factories. We are also committed to sharing ourobserve any additional hazardous conditions or behavior, theysafety practices and insights with key players in the industry.

are obliged to report this as part of our safety culture. If incidents
do occur, all Stahl sites are required to provide an investiga-

In 2020, during the COVID-19 pandemic, the health and safety oftion report. The methodologies for this are established at theour employees was more important than ever. Our laboratories

local site level.

and factories remained open during the lockdown periods but
office and commercial staff who could work from home were en-

We have developed a program to completely eliminate accidents.

couraged to do so. While adopting the necessary COVID-19 safety

This R20 (Road to Zero) program is highlighted in more detail at

measures, we continued to conduct all mandatory inspections

the end of this chapter.

and maintenance as per the legal requirements.

Stahl’s Safety, Health and Environment policy
Our Safety, Health and Environment (SHE) policy focuses onbuilding a strong safety culture across the organization, with anemphasis on implementing industrial best practices as well ascomplying with all legal requirements. We require all employees
to be trained in appropriate safety skills, with the understandingthat safety is a mindset, not a department, and that everyone
at Stahl is responsible for ensuring it. Our Global SHE & Process
Safety Manager sets our SHE strategy, standards and policies,
implements them throughout the company and ensures we follow
them. Through local work councils, our employees are consulted on the SHE policy developments and evaluation. In 2020, we
implemented new criteria for governing and reporting SHE and‘Safety is a mindset, not a department.
Our commitment: Ensure a safe

A true safety culture is only achieved whensafety incidents.

working environment and a diverse

safety is a value in life and not just at work.’

As part of our SHE efforts, we developed the Stahl Hazard Identi-

culture for our employees

Alexis Pey, Global SHE & Process Safety Manager

process safety in 2020, helping us to more accurately report on

Message from our CEO

Introduction

Environment

SocialGovernance

Safety Key Performance Indicators (KPIs)
To ensure continued improvement in the evaluation and prevention ofrisks, Stahl tracks several safety indicators. Each month we report injuries, incidents, audits, training, engineering projects and other prevention methods, both internally and to our shareholders. The safety KPIs
reported reflect the improvements that we have made. Both the Total
Recordable Incident (TRI) frequency rate and the Lost Time Incidents(LTI) frequency rate were lower in 2020 than in 2019.
•

TRI = The total recorded injuries frequency rate is calculated as
number of total recorded number of injuries in the last twelve
months over total number of worked hours and referenced to a baseof 1,000,000 h.

•

LTI = The lost-time injury frequency rate is the number of accidents
involving the loss of one or more days of working time in the lasttwelve months over total number of worked hours and referenced toa base of 1,000,000 h.

•

The severity rate is the number of lost working days due to injuries
in the last twelve months over total number of worked hours andreferenced to a base of 1,000 h.

Safety KPIs
2020

2019

Total recorded injuries frequency rate

4.549

5.444

Lost time injuries frequency rate

0.840

1.303*

Severity rate

0.003

0.034** 2019 data was restated to account for a change in the definition and scope for safety KPIs.
Data verified and validated by Deloitte.

Customer Health & Safety
Stahl’s long-standing commitment to the elimination of restricted
substances in the value chain is, in part, a reflection of our commitment
to the health and safety of the people in the value chain, including those
who handle our products to make theirs. Stahl Campus® training includes modules on the safe handling of chemicals and the reasons behind
the restriction of certain substances. You can read more about Stahl
Campus® on page 18.

Outlook

Appendix24

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

25

Appendix

Our people

Attractiveness and talent retention

In 2020 we made a clear commitment

In 2020 we continued to focus on talent retention and remaining

Our commitment - Nurture diversity and inclusion to con-attractive for new employees by:to gender balance in our leadershipteams, including targets for 2023

tinuously improve employee skills and company attractiveness & CSR as a mindset, motivating employees throug-•hout the company.

Focusing on employee engagement, diversity management andequal opportunity

As a socially responsible company, Stahl strives to foster a diver-•

Reinforcing Stahl culture and DNA•

Transferring knowledge and information effectively

se and inclusive workplace—one where everyone feels empowe-within the company

red and has the opportunity to contribute to our open culture of•Hiring and coaching people in line with our business goals

innovation and entrepreneurial spirit.

•

Creating an open, transparent and fair management style•

Emphasizing the benefits of Stahl’s truly

We will continue to invest in training and upskilling our people,

international teamproviding opportunities for growth and development acrossthe organization.

Employees by region
Region

2020

2019

EMEA

888.8

901.6

Asia-Pacific

367.0

384.0

India and Pakistan

256.0

274.0

North and South America

259.0

267.0

Total (full time equivalents)

1,770.8

1,826.6

Data verified and validated by Deloitte.

and 2030.

Message from our CEO

Introduction

Environment

SocialGovernanceOur employees in 2020

Outlook

26

Appendix

Employment
The total number of employees (headcount) was 1,790 at 2020
year-end; which is 57 less than at the end of 2019. The reduction
is linked to the completion of the complexity reduction and value
improvement project implemented in the Leather organization, affecting mainly India, Pakistan and China. In addition, thedivestment of the Powder Coatings business led to a reducti-

75%

on in headcount.

25%

1,790

91.45%of Stahl's employees
has a permanent contracts

Workforce
Gender Balance

Total numberof employees (HC)(vs. 1,847 in 2019)

Diversity and Inclusion
Equal treatment is at the heart of the organization as it reflects
a motivated, innovative and responsive workforce. Personality,
education, age, nationality, gender, race and cultural diversity are critical for Stahl’s leadership position and helping us tocreate a more innovative and responsive organization. In 2020,
our workforce included 59 different nationalities. We also believethat there is much more to diversity than age, gender, race andcultural background. A diverse workplace allows employees who

148.1

90.2

6.01%

Leavers (dismissals,

Joiners

Turnover rate
(vs 8.71% in 2019)

resignations etc)

offer different ideas and perspectives to thrive. Our Diversity andEqual Opportunity Policy, published on our website, expresses
our commitment to embedding equality, diversity and inclusion
across the organization.
Diversity and inclusion principles are also embedded within
Stahl’s core leadership development programs to encourage managers to demonstrate them as part of their leadership behavior.
Cultural intelligence and equality are built into our performance

3.32%

1.87%

14.7 hours

Voluntary staff turnoverrate (vs 4.24% in 2019)

Absenteeism rate
(vs 1.76% in 2019)

Training hours (per FTE)
(vs 15.3 hours in 2019)reviews and the hiring and talent identification process.
Stahl tracks the ratio of female to male employees (25:75 in 2020)
and the number of female employees in leadership positions(employees with direct reports and/or holding a management
position). In 2020 there were 90 women in leadership positions,which represents 24% of total management positions . In 2020 we
also set a target of achieving a 30% female workforce in leadership positions, by 2030.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook27

AppendixTraining
As part of our ESG roadmap,

Stahl is proactive in encouraging employee training participa-

The Employee Engagement Platform also includes an An-tion, including workshops, e-learning, online courses, webi-

nual Performance Review Appraisal, which is the first timenars on selected topics and lectures. Through the Employee

Stahl has formalized a global approach to annual appraisals

Engagement Platform (EEP), every new employee receives

for all employees. In 2021 we will also introduce a range of

100% of our employees on:

updated training and instructions appropriate to their position.

mobile-first content for our employees, so that smartpho-(1) health and safety behavior

ne users can easily access on-the-go training and productThis is followed by more specific job-related training to ensu-

information.			

re that every employee makes the best use of the information,case of Stahl technicians, there is a strong emphasis on training

Stahl values

designed to provide practical and innovative technical solutions

Stahl fosters and maintains an employee culture that is open,

for customers. Additionally, all employees that have worked forengaged, diverse, and inclusive, strives to ensure a safe work-

the company for more than four months are eligible to participate

place for all our colleagues, and champions our positive im-in external training programs individually or in teams.

pact on the world.

The number of hours received per employee in 2020 was 14.7

We cater to the evolving needs of our customers and society.

hours per full-time equivalent (FTE) (versus 15.3 in 2019). In 2020

With our can-do mentality, we believe that if it can be imagined,

we also trained 96 employees through Stahl Campus®, our speci-

it can be created. To support this belief, each of us stands for thealist training and knowledge center.

Stahl company values: imagination, responsibility, initiative andcooperation. We put these values into practice every day support
our customers in what they are trying to accomplish.

EEP (Employee Engagement Platform)
We implemented our Employee Engagement Platform (EEP) in

In 2020, we created a video which outlines these core2020 for all Stahl employees. The purpose of this platform is to:values and our company DNA. The video features the global reach•Create a digital library for HR activities and employee en-and structure of Stahl, and highlights our entrepreneurial culture,

gagement development

innovative approach and the personal opportunities for growth

Achieve more efficient and effective learning and em-

from which new employees can benefit.

ployee training•

Organize department-specific compliance regulations•

Enhance the ‘on-boarding’ process for new employees•

Track progress with employee learning and measure
their performance•

Provide statistics on training (e.g., for external auditing)•Integrate social learning experiences.

and practices; (2) diversity
and inclusion; (3) anti-corruption

resources, products and capabilities at their disposal. In the•

we have yearly targets to train

and bribery.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

28

Appendix

Human Rights
Stahl’s policy on human rights is also reflected in the Stahl Code of Conduct for
Business Partners, which stipulates that our business partners shall conduct
their activities in a manner that respects human rights as per The United Nations
Guiding Principles on Business and Human Rights.
In 2020,•

A policy on Human Rights was published•

Stahl’s Stahl Modern Slavery policy was updated, based on section 54 of•

In 2020, 98.55% of our employees were trained on identifying and reporting red

the 2015 UK Modern Slavery Act.
flags with regard to bribery, corruption and modern slavery.
•

We bolstered our Vigilance Team that monitors human rights under the French
Duty of Care Law, adding senior management members to the team and establishing quarterly meetings.

205-2 communication and training about anti-corruption policies and procedures

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook29

Appendix

Sustainable
development projects

Looking forward

Social

Our commitment - Consolidate Stahl’s ESG leadership position by engagement with

The COVID-19 pandemic highlighted Stahl’s readiness and resilience in many ways,

influential NGOs and IGOs.

but it also reminded us that there is nothing more important to the company than our
employees, and their safety and health. This was our focus in 2020 and it will remain so

India: Pollution prevention and efficient water use

in the future. Advances have been made in recent years on how we measure and report

The five-year project ‘Pollution Prevention and Efficient Water Use in Kanpur-Unnao Leather

accidents, incidents and spills, and this has contributed to the consolidation of the

Cluster’ is focused on reducing water pollution in the Kanpur leather manufacturing cluster.

strong safety culture the company enjoys. But we are not perfect, and we can always

Specifically, it has led to the introduction of new processes and chemical technologies that can redu-

improve.

ce the amount of water effluent in the tannery manufacturing zone of Kanpur. The project contributes
to the wellbeing of thousands of families who work and live in the area, and depend on the leather

In the coming years, new ways of measuring safety behavior will be introduced andindustry, by reducing the environmental impact of the manufacturing cluster. This Public Private

continuous awareness training on safety will be prioritized and focused on preventing

Partnership (PPP) is led by Solidaridad, Stahl and local stakeholders, and it is supported by the Dutch

accidents in the workplace and at home. Our long-term goal is the same as our short-government under the Sustainable Water Fund (FDW).

term goal in this sense: zero accidents. This will drive our behavior and policies as
we look forward.

Ethiopia: Green Tanning Initiative
The Green Tanning Initiative (GTI) project promotes responsible production practices in the

Stahl is becoming more diverse and inclusive, and there is a growing level of active em-leather supply chain in Ethiopia and facilitating market access for Ethiopia to the EU. The GTI

ployee engagement throughout the company. We believe that this positive development

project is a public-private partnership between Stahl, Solidaridad, CSR (MVO) Netherlands and local

has contributed to making the company successful, resilient, and more attractive to po-

leather associations, and is supported by the European Commission. In 2020 the project was halted

tential employees. To keep the momentum going, ambitious targets have been establis-

temporarily due to the travel restrictions imposed by the COVID-19 pandemic. Activities will resume inhed in our 10-year ESG Roadmap, for example on gender balance, and these will ensure2021 with the projects’ completion planned for January 2022.

that Stahl continues to be a great place to work. This will be our focus as we look ahead.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook30

Appendix

In focus: Road to Zero

Creating a culture of safety —for the well-being of our people
Our Road to Zero (R20) program focuses on integrating safety

The pillars of our R20 program are:safety and risk, and as soon as we can plan to implement a train-

into our company culture and ensuring that it is a shared res-•a true safety culture is a mindset that prevails inside andthe — trainer model for SHE managers to be able to upskill theiroutside the workplace;teams. Meanwhile we have added a new element to the program

a good safety record is never achieved through a big effort by

by offering additional ‘lockdown support’ for employees during

ding it into every layer of the business—seeking to educate

a small group of people, but by lots of small efforts by a big

the pandemic — working with global SHE managers to offer emo-

employees about how to embed safety principles into theirgroup of people;

tional and psychological support in collaboration with HR teams.

ponsibility for the wellbeing of our people. The idea is that R20
provides us with a more modern approach to safety by embed-•

lives, both at work and beyond.

•R20 is based on the understanding that in order for any culture to•

the potential consequences of injuries at work mostly affectpeople and their social network outside work;change or mindset to flourish, you first need to ensure that you
have your people on board, ensuring that they are happy, motiva-

our zero-tolerance policy on unsafe behavior ensures people
are not injured at work.

In 2020, we expanded our safety awareness campaign around the

ted and responsible for their own wellbeing. We have found thatworld, with several new guidelines published and others revie-

the program has driven engagement because it addresses not

wed. This included presentations for all employees and several

just health and safety regulations within the workplace, but alsosessions with the core leadership team. We also work closely withconsiders the livelihoods and wellbeing of employees and their

the site management teams and SHE managers to implement thefamilies beyond work. It has really helped to demonstrate thatzero-tolerance policy to unsafe behaviors and practices.

the ripple effects of accidents at work can impact lives at a muchbroader level, helping us to reframe safety as an issue which

Although the program roll out had to be paused because of CO-

affects us all at multiple levels.

VID-19, we have since been running virtual sessions on process

Our 2030 target is to maintain asafe working environment for all
Stahl employees and contractors,
with a goal of zero accidents.

Message from our CEO

Introduction

Environment

SocialGovernance

Leadership andgovernance
Sustainable development is central to the way wecreate value: we believe that doing good and doing
well go hand in hand.
••

Our approach to sustainable development
mitigates investor risks by ensuring corporate
governance, regulatory and environmental
compliance, and our long-term ability totransform are in line with the needs of our
stakeholders.
By implementing diversity targets in ourleadership and supervisory positions, we arehelping to improve our higher-level decisionmaking and establish role models for our entire
organization.

GovernanceOutlook31

Appendix

Stahl governance

Ethics& complianceIndustry
governanceMessage from our CEO

Introduction

Environment

SocialGovernanceOutlook32

Appendix

Stahl governance

Our Executive Control GroupThe Executive Control Group is a wider governance body thatthe responsibility is distributed throughout the organization and

Our Board of Directors

includes Stahl Management team members as well as Site Mana-

there is no job position without a degree of SHE responsibility.

The Stahl Board of Directors, our highest governance body,gers, Regional General Managers, Executives from the Strategic

The SHE Manager reports to the Local Manager and has theconsists of members from our shareholders Wendel and BASF,

Business Units, and Marketing, Communications, ESG, IT, Legal

direct support of the Global SHE & Process Safety Manager.

the Stahl CEO and CFO and two independent members.

& Compliance, Finance and SHE representatives. The Executive

The Stahl Board meets at least five times per year to discuss

Control Group meets on a quarterly basis and reviews year tofinancial results and ESG-related topics.

date performance KPIs and decides on tactics for the upcoming
business cycles.

•

Huub van Beijeren, Stahl CEO (Dutch)•

Frank Sonnemans, Stahl CFO (Dutch)•

Félicie Thion de la Chaume, Wendel (French)

Diverse Leadership Development

Our commitments: (1) Foster ethical•Jérome Michiels, Wendel (French)

Consistent with our growing leadership talent strategy, diversity•

Claude Ehlinger, Wendel (French)and inclusion principles are also embedded within our leadershipbehavior throughout our leadership.

•

Bruno Fritsch, Wendel (French)development programs—to encourage managers to demonstrate•

Anup Kothari, BASF (Indian)them as part of their leadership behavior.

•

Etienne Boris, Independent (French)•

Piet van der Slikke, Independent (Dutch)
The Stahl ESG team is responsible for implementing the com-Our Management Teampany policy on Environment, Social & Governance. The Director

The Stahl Management Team meets every month and deter-of Corporate Affairs represents ESG on the Stahl Management

mines the implementation of the company strategy including

Team. The ESG Director is a member of the Stahl Executive

the ESG roadmap.

Control Group. The ESG team meets formally every two weeks
and continuously engages with finance, legal counsel, sales•

Huub van Beijeren, Chief Executive Officer (Dutch)

teams, product managers, researchers, product stewardship and•Frank Sonnemans, Chief Financial Officer (Dutch)

operations staff to monitor the implementation of our strate-•

John Schelhaas, Chief Operating Officer (Dutch)

gy and to discuss progress on new initiatives related to ESG•

John Fletcher, Chief Innovation Officer (American)

performance. The ESG team meets on a quarterly basis with the•Ralph Blach, Director of Research andWendel ESG team.

Development (German)•

as a mindset that motivates
employees.

ESG Governance•(2) Achieve sustainable development

Xavier Rafols, Leather Chemicals Business Unit
Director (Spanish)

SHE (Safety, Health & Environment) Governance

Uwe Siebgens, Performance Coatings Strategic

Each Stahl site has a dedicated SHE Manager responsible for

Business Unit Director (German)

ensuring that the organization is pursuing best practices. Beinga SHE manager does not mean full responsibility for SHE:

Message from our CEO

Introduction

Environment

SocialEthics andcompliance

GovernanceOutlook

33

Appendix

assessment and control policies within the scope of Duty of Care.
This review covered the risks linked to our employees, suppliers

specific procedure on anti-corruption.
6.

and customers/external markets and the company has adopted
governance policies covering health and safety, environment andTraining program: Stahl employees are required to follow ourannual anti-corruption e-learning training.

7.

human rights in order to mitigate the identified risks.

Disciplinary procedure: Our disciplinary rules can be invoked
if Stahl employees do not comply with the applicable laws,

Our organization’s strategic direction is strongly

regulations and Stahl compliance policies.

influenced by the UN Sustainable Development Goals,

8.

Internal monitoring and assessment system: Stahl has im-

and our ways of working and organizational policies are aligned

Sapin II - anti corruption law

with the UN Global Compact Principles and the OECD Guideli-

The Stahl Group is committed to ensuring that the activities ofnes for Multinational Enterprises. The 10 UN Global Compact

the Stahl Group and all employees are conducted in accordance

guidelines are the foundation of our Code of Conduct for Busi-

with the applicable laws and regulations, the relevant complianceness Partners. With this commitment we confirm our alignment

policies and rules as adopted by the Stahl Group and applica-

to the universal principles of human rights, labor, environment

ble ethical standards. One of the laws applicable to Stahl is theCommitment: Foster

and anti-corruption.

French SAPIN II Law. This law imposes an obligation on certain

ethical behavior bycompanies to implement measures to prevent and detect corruption and influence peddling offences, either committed in France
Wendel commitments

or abroad. Stahl is subject to this law and we have implemented

Like Stahl, Wendel is committed to ESG performance. In 2020,

a compliance program to comply with the requested measures.

Wendel entered the Dow Jones Sustainability World and Europe

Stahl applies a zero-tolerance policy with respect to corruption.

plemented an internal monitoring and assessment system.

providing training and robust
compliance programs.

Indices (DJSI) in recognition of the Group’s ESG performance. Evaluated on the basis of all of its ESG initiatives, Wendel

The key measures implemented by Stahl are:obtained a score of 71/100 compared with the average in its

1.

sector of 30/100.

Code of conduct: Stahl Employees and relevant Business
Partners need to sign the Stahl Code of Conduct, which
includes specific anti-corruption rules.

As a portfolio company of the Wendel, Stahl is subject to French

2.

Alert mechanism: Stahl implemented a whistleblowing

legislation, like Sapin II (on transparency, anti-corruption and topolicy, which allows employees and anyone outside themodernization of the economy) and the Duty of Care law. Eachcompany to report suspicious behavior that could conflict

year, Stahl is assessed on the European Directive on Non-Finan-with the Stahl Code of Conduct, while offering the necessary

cial Reporting and Diversity Information by Wendel.

guaranteed protection to the person in question.
3.

Code of Conduct for Stahl Employees
Our Code of Conduct for Employees outlines what is

Corruption risk mapping: Each year, Stahl performs a cor-

expected of every person who works for Stahl. Integrity is

ruption risk mapping exercise, through interviews with ouressential to our reputation and to providing high-quality services

management by the Stahl Group Tax & Legal manager.

to our customers. This involves balancing short and long-term in-Third party due diligence procedures: Stahl performs a busi-

terests and treating our customers, employees, shareholders and(March 2017) on Duty of Care. The Vigilance Plan identifies andness partner due diligence assessment of relevant businessother business relations with care and respect. A whistleblower

aims to prevent the risk of serious violations of human rights andpartners, on a risk-based approach.

policy allows employees to report suspicious behavior that could

Internal and external accounting control procedures: Stahl

conflict with our Code of Conduct, while offering the necessary

has several accounting procedures in place, including aguaranteed protection to the person in question.

Duty of Care - vigilance plan
Stahl’s Vigilance Plan corresponds to the French law 2017-399

fundamental freedoms as well as harm to human health, safety
and the environment. Stahl performs an annual review of the risk

4.

5.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

34

Appendix

tration, Evaluation, Authorisation and Restriction of Chemical

Our commitment: Select and engage

Stahl’s Code of Conduct for Business Partners stipu-

substance (REACh) in Europe, or Toxic Substances Control Act

lates that the business partner abides by all applicable(TSCA) in the United States. Aside from public policy directives,with suppliers based on recognized

Code of Conduct for business partners

anti-corruption laws and regulations of the countries in which it

Stahl’s end markets are also governed by voluntary initiatives (of-operates, including all applicable international anti-corruption

ten driven by brands and NGOs) that influence industry behavior:conventions. Based on the UNGC principles, it also covers thefor example, the Leather Working Group, a protocol for auditing

topics of human rights, discrimination, modern slavery, working

leather manufacturers on environmental stewardship, and thehours and health and safety. We require our business partners to

Zero Discharge of Hazardous Chemicals foundation (known as

either comply with or demonstrate equivalent ethical standards

ZDHC), committed to eliminating identified substances from theas those outlined in the Code of Conduct, and any deviations

clothing and footwear supply chain. Stahl is an active member offound can ultimately lead to a discontinuation of the business re-these organizations and is involved with them at all levels.

lationship. Strategic suppliers are screened using our due diligence questionnaire and the 3rd party EcoVadis self-assessment. We
encourage the reporting (including the suspicion) of non-compliance (e.g. through our whistleblower alert mechanism).

Tax policy
Stahl’s tax policy sets out the principles and guidelines
applied to the group in accordance with international tax
standards like the OECD Guidelines for Multinational Enterprises and the “at arm’s length” principle. For example, artificial
structures are not used by the company, and all taxable profits
are realized in the country where value is created. Our country-by-country information is included in Wendel's tax reportingto the French authorities.

Chemical compliance
Chemical compliance is the process of identifying, monitoringand eliminating unwanted chemical substances. If a product isdeemed compliant to a specific chemical compliance legislation
or requirement, it means that the concentration of the ‘unwanted’ substances in that product is within the limits specified inthat legislation.
The chemical industry is governed by public policies like Regis-

ESG standards.

Message from our CEO

Introduction

Environment

SocialIndustry governanceTransitioning away from fossil fuels:

GovernanceOutlook

Appendix

Looking forward

Governance

Renewable Carbon Initiative

The manner in which Stahl governs itself has changed substantially in recent

In September 2020, Stahl was one of eleven companies that foun-years. In 2020 there were examples of this, like the establishment of a Vigilance

ded the Renewable Carbon Initiative (RCI) under the leadership

Team. These governance changes have been accompanied by rigorous policies

of nova-Institute (Germany). RCI’s aim is to support and speed

and procedures to ensure that we continue to be a forward-looking company and aup the transition from fossil carbon to renewable feedstock forreference on topics like ethics and compliance.

all organic chemicals and materials. More than 100 well-known
experts support the initiative and companies, start-ups and

The industry has also undergone significant governance changes in recent years, ininstitutes are welcome to join the initiative as a member. Stahlparticular with regard to chemical compliance, which has been driven as much byserves on RCI’s Executive Committee. Through the Renewable

voluntary (e.g., brand-driven) initiatives as by government regulations like REACH.

Carbon Initiative, we participate in webinars and initiatives that

We expect self-regulation to continue in the market segments that we serve, andpromote the acceleration of substitution of fossil fuels throug-

we also believe that social compliance will become a more critical element in thehout the chemical industry. More can be found on RCI in our casegovernance of the industry in the future.

study on page 36.
Stahl has been at the forefront of industry initiatives for many years, and we believe
Phasing out restricted substances: ZDHC and bluesign®

this has had a positive impact on the company perception and performance, as

As confirmation of our commitment to eliminating the substances

well as on the value chain that we serve. Looking forward, we will continue to presson acknowledged MRSLs (Manufacturing Restricted Substancethe industry on critical topics, like ethics, compliance, digital transformation andLists), we have been an active member of the ZDHC foundation

chemical self-regulation, leading by example and by sharing best practices.

since 2016 and a bluesign® system partner since 2017. We are
active members of four different working groups within ZDHC
related to the impact of chemicals used in the textile and leather
supply chains. The list of Stahl’s ZDHC compliant products ispublicly available on the ZDHC Gateway portal.
Pushing best practices with the Leather Working Group
The Leather Working Group (LWG) is a not-for-profit membershiporganization responsible for the world’s premiere leather manufacturing certification. It aims to improve the environmental impact of
the leather industry by assessing and certifying leather manufacturers. Since 2005, LWG has identified environmental best practices in the industry and provided guidelines for continual improvement. Stahl is an active member of the LWG Executive Committee.

35

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

36

Appendix

In focus: Renewable Carbon Initiative

Supporting the transition to renewable
feedstock across the industry
The chemical industry has a fundamental role to play infossil carbon from the ground. Michael Carus, CEO of nova-Insti-

by raising awareness and understanding of renewable feedstock

delivering solutions that sustain and enable social wellbeing,tute and head of the Renewable Carbon Initiative: “This is about alevels amongst the business community and the wider public.

protect our health and security, and meet new challenges

fundamental change in the chemical industry. Just as the energy

through innovation. Chemicals are also the building blocks ofindustry is being converted to renewables, so renewable feed­

The Renewable Carbon Initiative has made a powerful start with

low-carbon, zero pollution and energy-efficient technologies,

stock will become the new foundation of the future chemical andeleven international member companies and the personal sup-materials and products.

material industry. The initiative starts today and will be visibly

port of more than 100 industry experts. Stahl has actively con-present from now on. We want to accelerate the change.”

tributed to RCI webinars, press conferences and social media. In

In September 2020 Stahl became one of eleven companies that

addition, we are strong advocates for the acceleration of the tran-

founded the Renewable Carbon Initiative (RCI) under the leader-

The main avenues on which the initiative wants to deliver change

sition to renewable feedstock. The initiative hopes to gain manyship of nova-Institute (Germany). The aim of the initiative is to ac-

are threefold. One, the initiative strives to create cross-industry

additional members and supporters in the upcoming months tocelerate the transition from fossil carbon to renewable feedstock

platforms that will demonstrate the feasibility of renewable feed-

keep the strong momentum of the initiative. Working together,in the chemical industry.

stock in tangible activities. Two, a key target will be to advocate

RCI will support and accelerate the transition from fossil to rene-

for legislation, taxation and regulation changes to give renewable

wable feedstock for all organic chemicals and materials.

The Renewable Carbon Initiative (RCI) addresses the core pro-feedstock a level commercial playing field to play on. Finally, theblem of climate change, which is extracting and using additional

third avenue will be to create a wider pull for sustainable options

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

37

Appendix

Digitaltransformation

Outlook

We continue to minimize
our environmental impact
and carbon footprint
We strive to reduce the environmental
impact of our own operations (including
purchased raw materials) as well as thatof the value chain into which we provide
our products and services.

Open
innovation

Partnerships

Inclusivity

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

38

Appendix

John Fletcher oninnovation

Building on open innovation and digital transformation
In 2020, the COVID-19 crisis further underlined what was
already becoming increasingly clear: the private sector has
a responsibility to society and the environment and must
consider ‘success’ to mean more than just financial profit.
In this context, our collective commitment to environmental,social and governance (ESG) issues is more important than ever.
Companies of all sizes must continue to improve the quality of
their products and services while helping to shape a better world
for more people.
At Stahl, we aim to deliver value to all our stakeholders, notjust our customers and shareholders, but also our employees,
suppliers, partners, and communities. This belief underpins our
ESG focus, as we work to support the sustainable developmentof our company and wider industry over the coming years. We arelooking for new ways to scale, improve, and consolidate our own
operations alongside those of our clients, customers, and thewider industry. Open innovation and digital transformation are
two cornerstones of this process.

"Our ESG approach involves working

Building on our partnerships and open innovation

with people and processes that can

Building on our track record of co-creation and development,

support our company’s sustainable

ESG goals. We now have dedicated sales, technical, and support

long-term ambitions, contribute torelationships and offer tailored support to help them to achieve

we are collaborating with a wide range of partners to realize ourmanagers and teams responsible for all facets of our client

positive changes in our industry,

their own ESG ambitions.

and help ensure a better world that

Supporting our clients provides valuable insight into the common

meets the needs of our different

critical support, namely due diligence, supply chain mapping,stakeholders."pressure points that they experience. This has enabled us to offer
and risk assessment. Helping others achieve their own ESG
goals has also inspired us to go further with our own ambitions:in 2021, we will increase the breadth and depth of our work withJohn Fletcherclients by piloting digital solutions that benefit parties acrossChief Innovation Officer

the value chain.

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

39

Appendix

Harnessing digital to scale our ESG efforts

approach. Stahl aims to foster an open and inclusive company

Realizing our ESG ambitions depends on being able to harness

culture based on transparency, ensuring accountability,

digital opportunities to create new experiences and add value

measuring progress, and steering decision-making.

for all our stakeholders. Alongside our ongoing Life Cycle
Assessment activities, a key task in 2021 is to digitize our productThis mindset extends to our digital transformation journey, which

information to drive our accountability, offer our insights, andinvolves our entire organization—from the shopfloor to the Ma-

improve our customer journey.

naging Board—and runs across business units and locations. In
2021, we plan to further integrate mobile-first technology, so that

"By living up to our environmental andsocial responsibilities, and helping
others do the same, we believe wecan be a catalyst for sustainable
development and positive change.
Like many organizations today, we are

In particular, we are introducing a new Product Information

product data and ESG information can be accessed on smartpho-

Portal through which brands will be able to have end-to-end

nes. By moving beyond our existing infrastructure to a more inclu-

visibility around the chain of custody of specific goods – evensive system, we can further promote and build on our sustainable

down to the raw materials that make up the chemicals used

development vision and efforts for all of our employees.

greatly encouraged by the steps weblockchain technology into our digital ecosystem, we can drive

A catalyst for positive change

positive change within our industrial processes—for the benefit

The steps we are taking now will underpin our ESG approach forhave taken so far and looking forward

of brands that rely on our chemicals, and the consumers who careyears to come. Indeed, transitioning to a digital and open way of

increasingly about the sustainability credentials of the products

working goes beyond adopting the latest, most dazzling techno-

they are buying.

logies. It involves working with people and processes that canto produce a leather handbag, for example. By integrating this

only at the start of a journey, but I am

to making further progress alongside
our partners in 2021 and beyond."

support our company’s sustainable long-term ambitions, contriFostering a more inclusive organization

bute to positive changes in our industry, and help ensure a better

John Fletcher

People are at the heart of our ESG and sustainable development

world that meets the needs of our different stakeholders.

Chief Innovation Officer

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook40

Appendix

Appendix
About this report

UN Global Compact

GRI Content Index

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

Appendix

About this report
Our reporting period runs from January 1, 2020 up to and including 31 December, 2020 and we have an annual reporting cycle

On our website you can find more details about how
we engage with each type of stakeholder. Across allwith reports published in March. The date of our most recent

stakeholders, health and safety as well as environmental topics

report is March 31st, 2020.

are viewed as very important. On other topics, the interests differ.
Our shareholders and customers place more focus on governanceThis report has been prepared, whenever possible, in accordanceand economic performance, while our customers and their clientswith the GRI Standards: Core option. Unless otherwise noted, ourare more engaged with customer health and safety, human rights

Environmental, Safety and HR data have been validated by a third

in the supply chain and community engagement.

party verifier (Deloitte).
Stahl has published annual reports on environment, social andgovernance topics since 2013. The Global Reporting Initiative (GRI)
sustainability reporting standards, the United Nations (UN) Global
Compact and the 17 Sustainable Development Goals (SDGs) havebeen key references in the preparation of these reports and continue to provide valuable guidance for the company.
Stakeholder engagement
Stakeholder engagement means talking and interacting with people and organizations that are directly and indirectly impacted by
Stahl. Understanding their needs enables us to create a transparent and more resilient supply chain that further reduces ourcollective environmental and social footprint. Transparent communication is used by Stahl to provide insight into the company
for stakeholders. Soliciting stakeholder feedback also provides
Stahl with an understanding of different perspectives on Stahl’sbusiness and the markets it serves.
Our primary stakeholders include our employees, customers, suppliers, investors and distributors and agents, while our secondary
stakeholders are academic institutions, government (including
public authorities), industry associations and foundations, consumer brands, NGOs and civil society. We are in constant contact
with all these stakeholders about industry developments, ouractivities and services and other important topics.

41

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

42

Appendix

Material topics
Stahl employs a materiality analysis to ensure we report on the most relevant ESG

ESG Pillar

Topic

Subtopics

topics. Our approach to reporting and materiality is based on recognized, interna-

Environmental topics

Climate change

Greenhouse gas emissions

tionally agreed guidelines like the Global Reporting Initiative (GRI). The materiality

Energyanalysis ensures that we address material topics for Stahl and our stakeholders.

Resource depletion

Water

This approach also ensures that the full scope of our activities are taken into ac-

Waste

count, from operations and supply chain to interactions with suppliers, customers,
consumers, shareholders, government and NGOs. In short, the materiality analysis
allows the company to identify the ESG topics that matter most.

Materials

Innovation
Social topics

Occupational health and safety

Stahl staff H&S
Customers’ staff H&S

Our materiality analysis includes a detailed review of our risk assessment and con-

Training and education

trol policies, in accordance with the requirements of the European Law (including

Diversity and inclusion

the Non-Financial Statement and the Duty of Care) on environmental, social, human

Human rights

rights and corruption risks resulting from our activities.

Local communities
Governance topics

This review covers the risks linked to employees, suppliers, and to the external value
chain that we serve. Stahl has adopted due diligence policies on health, safety,
environment and human rights that mitigate the risks identified in this review. This
assessment was cross-checked with two references:•

Independent standards: MSCI (Morgan Stanley Capital International) and SASB
(Sustainability Accounting Standards Board)•

Companies comparable to Stahl in terms of industry sectors, geographicalspread, disclosure of CSR risks and materiality			
Our identified material topics (which include gross risks) are listed below. These topics impact the company and our external shareholders, independent of mitigation
policies that may be in place to reduce them.

Regulation
Anti-corruption
EthicsMessage from our CEO

Introduction

Environment

SocialGovernance

UN Global Compact
Communication on
Progress
For the ninth year in a row, Stahl is very pleased to confirm our supportof the United Nations Global Compact and its ten principles in the areasof Human Rights, Labor, Environment and Anti-Corruption. In 2014, we adopted
these core values in our Code of Conduct.
In this ESG report, we describe our actions to continuously improve on the integration of these principles into our strategy, culture and daily operations. This report

Outlook

43

Appendix

Topic

Page

Human Rights
Principle 1: Support and respect the protectionof internationally proclaimed human rights.

28

Principle 2: Ensure that they are not complicit inhuman rights abuses.

28

Labor
Principle 3: Uphold the freedom of associationand the effective recognition of the right tocollective bargaining.
Principle 4: Eliminate all forms of forced
and compulsory labor.

28
28

is our way to share this information with our stakeholders. Earlier Commu-

Principle 5: Abolish child labor.

21, 34

nications on Progress can be found on the UNGC website. The table below

Principle 6: Eliminate discrimination in respectof employment and occupation.

26, 32highlights where content about our efforts related to each of the UNGC Principles
can be found in this report.

Environment
Principle 7: Adopt a precautionary approachto environmental challenges.
Principle 8: Conduct environmentally
responsible activities.
Principle 9: Encourage the development anddiffusion of environmentally friendly technologies.

12
10–21
35, 36, 38-39

Anti-Corruption
Principle 10: Fight corruption in all its forms,
including extortion and bribery.

33–34

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook

44

Appendix

GRI Content Index
GENERAL DISCLOSURESGRI Standard

Information

GRI 102: General Disclosures 2016

Organizational profile

Description

Page/information

102-1

Name of the organization

1

102-2

Activities, brands, products, and services

4

102-3

Location of headquarters

48

102-4

Location of operations

5

102-5

Ownership and legal form

9

102-6

Markets served

5

102-7

Scale of the organizations

7, 26

102-8

Information on employees and other workers

25–26

102-9

Supply chain

5102-10Significant changes to the organization and its supply chain

There have been no significant changes in the supply chain in 2020.

102-11

Precautionary Principle of approach

12102-12External initiatives

7,28,41,43

102-13

Membership of associations

Renewable Carbon Initiative, The Zero Discharge of Hazardous Chemicals Foundation(ZDHC), bluesign® system partner, The Leather Working Group, TEGEWA.

Statement from senior decision maker3

Values, principles, standards, and norms of behavior

7

Governance structure

32102-40

List of stakeholder groups

41

102-41

Collective bargaining agreements

Given the international nature of Stahl and the relatively small dimension of the local
units, there are four collective agreements in place. Salary levels and other means of remuneration depend on the individual countries. They are centrally coordinated, to ensure
Stahl remains competitive in the respective markets. Some employees in the Company,
mainly in management and sales, enjoy a bonus scheme based on annual quantitative
objectives. This bonus scheme is coordinated centrally to ensure proper alignment andconsistence with local practices.

102-42

Identifying and selecting stakeholders

41

102-43

Approach to stakeholder engagement41

102-44

Key topics and concerns raised

41

Strategy102-14
Ethics and integrity
102-16
Governance102-18
Stakeholder engagement

Message from our CEO

Introduction

GRI Standard

Environment

SocialInformation

GovernanceOutlook45

Appendix

Description

Page/information

102-45

Entities included in the consolidated financial statements

Stahl Chemical Industries BV GMBH, Stahl France SARL, Stahl Chemicals Germany
GmbH, Stahl Italy SRL, Stahl Group SA (98.01%), Stahl Netherlands BV, Stahl
International BV, Stahl Europe BV, Stahl Treasury BV, Stahl Holdings BV, Stahl
International Specialties Development BV, Stahl Europe Application PC BV, Stahl
International Polymer Development BV, Stahl International Compounding BV, Stahl
Parent BV, Stahl Iberica SL, Stahl Investment Spain SL, Pielcolor SL, Stahl Performance
Powder Coatings SL, Stahl Switzerland GmbH, Stahl Kimya Sanayi ve Ticaret Ltd Sirketi,
Stahl UK Ltd, Stahl Africa Chemicals Plc, Stahl de México, S.A. de C.V., Stahl (USA) Inc.,
Stahl Chemicals Srl, Stahl Brasil SA, Productos Stahl de Colombia SA, Pielcolor Uruguay
SA, Lidertime SA, Stahl Uruguay SA, Stahl Coatings and Fine Chemicals (Suzhou) Co. Ltd,
Stahl Leather Chemicals HK Limited, Stahl India Pte Ltd, PT Stahl Chemicals Indonesia,
Stahl Japan Ltd, Stahl Korea Ltd, Stahl Pakistan (private) Ltd, Pielcolor Trading (Suzhou)
Co. Ltd, Stahl Asia Pacific Pte Ltd, Stahl Taiwan Ltd Stahl (Thailand) Ltd.

102-46

Defining report content and topic Boundaries

42

102-47

List of materials topics

42

102-48

Restatement of information

On pages 13, 15 and 24, the data for 2019 has been restated.

102-49Changes in reporting

There have been no changes in reporting.

102-50

Reporting period

41102-51

Date of most recent report

41

102-52

Reporting cycle

41102-53

Contact point for questions regarding the report

48

102-54Claims of reporting in accordance with the GRI Standards

41102-55

GRI content index

44-47

102-56External assurance

41

Information

Description

Page/information

103-1

Explanation of material topics and its Boundary

10

103-2

The management approach and its components

13

103-3

Evaluation of the management approach

19

305-1

Direct (Scope 1) GHG emissions

13

305-2

Energy indirect (Scope 2) GHG emissions

13

305-3

Other indirect (Scope 3) GHG emissions

14

305-4

GHG emissions intensity

13

305-5

Reduction of GHG emissions

13

Reporting practice

MATERIAL TOPICSGRI Standard

Environmental Topics
CLIMATE CHANGE AND ENERGYGRI 103: Management Approach 2016

GRI 305: Emissions 2016

Message from our CEO

Introduction

Environment

SocialGovernanceOutlook46

Appendix

GRI Standard

Information

Description

Page/information

GRI 302: Energy 2016

302-1

Energy consumption within the organization

15

302-4

Reduction of energy consumption

16

103-1

Explanation of material topics and its Boundary

10

103-2

The management approach and its components

16

103-3

Evaluation of the management approach

19

303-1

Interactions with water as a shared resource

16

303-2

Management of water discharge-related impacts

16

303-5

Water consumption

16

103-1

Explanation of material topics and its Boundary

10

103-2

The management approach and its components

17

103-3

Evaluation of the management approach

19

306-1

Waste generation and significant waste-related impacts

17

306-2

Management of significant waste-related impacts

17

306-3

Waste generated

17

103-1

Explanation of material topics and its Boundary

10

103-2

The management approach and its components

19-21

103-3

Evaluation of the management approach19

GRI 308: Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental criteria

21

GRI 307: Environmental compliance 2016

307-1

Non-compliance with environmental laws and regulations

There were no fines or sanctions applied in 2020.

103-1

Explanation of material topics and its Boundary

23

103-2

The management approach and its components

23-24

103-3

Evaluation of the management approach

29

403-1

Occupational health and safety management system

23

403-2

Hazard identification, risk assessment, and incident investigation

23

403-3

Occupational health services

23

403-4

Worker participation, consultation, and communication on occupational
health and safety

23

403-5

Worker training on occupational health and safety

23

403-6

Promotion of worker health

There are no health promotion services and programs offered for non-work
related health risks.

403-7

Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships

24

403-8

Workers covered by an occupational health and safety management system 23

403-9

Work-related injuries

WATER
GRI 103: Management Approach 2016

GRI 302: Water and effluents 2018

WASTE
GRI 103: Management Approach 2016

GRI 306: Waste

MATERIALS
GRI 103: Management Approach 2016

Social Topics
OCCUPATIONAL HEALTH & SAFETY
GRI 103: Management Approach 2016

GRI 403: Occupational Health & Safety24Message from our CEO

Introduction

GRI Standard

Environment

SocialGovernanceOutlook47

Appendix

Information

Description

Page/information

103-1

Explanation of material topics and its Boundary

25

103-2

The management approach and its components

25-26

103-3

Evaluation of the management approach29

GRI 404: Training and Education 2016

404-1

Average hours of training per year per employee

26

404-2

Programs for upgrading employee skills and transition assistance programs 27

GRI 405: Diversity & Equal Opportunity

405-1

Diversity of governance bodies and employees

26

OUR PEOPLE
GRI 103: Management Approach 2016

Social responsibility in the supply chain
103-1

Explanation of material topics and its Boundary

28

103-2

The management approach and its components

28-29

103-3

Evaluation of the management approach

29

GRI412 Human Rights

412-1

Operations that have been subject to human rights reviews or impact assessments

21

GRI 414: Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

21

103-1

Explanation of material topics and its Boundary

24

103-2

The management approach and its components

24

103-3

Evaluation of the management approach

29

416-1

Assessment of the health and safety impacts of product andservice categories

24
100% of our product and service categories are assessed for their health andsafety impacts.

416-2

Incidents of non-compliance concerning the health and safety impacts ofproducts and services

In 2020, there were no incidents of non-compliance with regulations and/or voluntary
codes concerning the health and safety impacts of our products and services.

103-1

Explanation of material topics and its Boundary

33

103-2

The management approach and its components

33-34

103-3

Evaluation of the management approach

35

205-2

Communication and training about anti-corruption policies
and procedures

33-34

GRI 103: Management Approach 2016

CUSTOMER HEALTH AND SAFETY
GRI 103: Management Approach 2016

GRI416: Customer Health and Safety 2016

Governance Topics
ANTI-CORRUPTIONGRI 103: Management Approach 2016

GRI 205 Anti-Corruption 2016

We welcome your feedback
and suggestions on our report,
so do not hesitate to get in touch:

Stahl Holdings B.V.
Sluisweg 105145 PE Waalwijk
Netherlands+31 416 689 111
communications@stahl.com
stahl.com