Sustainability
Report2017

Stahl Holdings B.V.

Contents

2 Sustainability Report 2017

5 Message
from the CEO

22

People& Society6Highlights
2017

24

Sustainable Industrial
Development

8

Strategy, governanceand implementation

26

Stahl
Campus®

10

Raw
Materials

28

Financial
Performance

12

Responsible
Operations

30

Management
Team

18

TrustedPartnerships

32

GlobalPresence

20

Innovative
Solutions

34

GRI
table

3

Message from the CEO
I am once again very pleased to present our latest
Sustainability Report which provides an overview
of Stahl’s activities in 2017.
In 2017 Stahl made significant progress towards achieving
its goal of a transparent supply chain. The acquisition of
the BASF Leather Chemicals division, completed in October“We see sustainability
as a great opportunity
to drive positive change
in the industry”

2017, is an important step towards that goal. The renowned
product leadership of BASF and the complementary
activities related to sustainability and transparency thatwere undertaken in recent years are already integrated
into Stahl’s strategy implementation.
In 2017 we expanded our activities to include more of
the 17 UN Sustainable Development Goals to which weare aligning and we remain committed to the UN Global
Compact. I am glad to report that Stahl is on course to

We hope that you enjoy reading about the sustainability

meet its 2020 target of CO2 emissions reduction, thanks

projects that we are working on around the world, andto sourcing renewable energy and to investments at our

we look forward to sharing them with you during the

manufacturing sites in recent years. We have also included

coming year.

information based on the Global Reporting Initiative (GRI)
Core disclosures (see annex), with a view to a moreBest regards,

integrated reporting structure in the future.
In my travels during 2017, I have observed how
environmental and social responsibility have become
the main topic of conversation with our customers andHuub van Beijeren

partners in the industry. Whether it is eliminating restricted

CEO

substances, substituting solvent with water, using
alternative energy sources, reducing pollution, improving
water effluent management or implementing codes ofconduct, Stahl is deeply involved in initiatives that arehaving a positive effect on the industry. Indeed, while Stahl
is fully aware of the challenges, we continue to view them as
a great opportunity, to take action and create a better future.

4 Sustainability Report 20175

Highlights 2017
New Center of Excellence

bluesign® system partner

In June 2017, Stahl opened a

Stahl achieved bluesign® system partner status in

new Center of Excellence in Parets

July 2017. The bluesign system helps its partners

del Vallès, Spain, focussing on ourto properly manage chemicals and to replace

Performance Coatings solutions, leather

hazardous chemicals with safer alternatives inchemicals and polymers. These ultra

the manufacturing of textile and related products.

modern application and testing facilities

The system sets and controls standards for an

enable Stahl to develop solutions thatenvironmentally friendly and safe production.

meet even the most critical performance

As a system partner, Stahl will report regularly on

specifciations, while preserving

the five key areas: resource productivity, consumer

sustainability and style.

safety, water emissions, and occupational health®

Post Graduate Certificate coursewith the University of Northampton
In 2017, Stahl and the University of Northampton launched aleather finishing program designed for the automotive industry in
Mexico. The six week Post Graduate Certificate course focuses onpractical expertise and the chemistry of surface coatings andtheir application in automotive leather finishing. By providing
the right knowledge to students and professionals in this way,
Stahl believes it can accelerate the process of making the entire
leather process more sustainable.

VOC emissions laboratory
At our headquarters in Waalwijk we invested in state-ofthe-art machinery to measure VOC emissions (Volatile
Organic Compounds) in coatings. This enables us todetermine the presence of different volatile organic
materials for our clients in the automotive industry.
This new equipment will also help us to further optimize
the composition of our own coatings as we strive tominimize the presence of volatile substances fromconcept to launch.

and safety.

Significant growth of Stahl products designed
to reduce environmental footprint

CO2 target
Stahl stayed on course to achieve its
target of 10% reduction in CO2 emissions

The success of our STAHL EVO and Stahl Neo portfolios

by 2020. Also in 2017 Stahl made its first

were again important commercial highlights of 2017, as

estimation of scope 3 emissions as per

the sales growth of both ranges continued at a double

the GHG Protocol Corporate Value Chain

digit pace. These two portfolios are compliant with the
Manufactured Restricted Substance List (MRSL) launched by
the ZDHC Foundation, whose goal is to eliminate hazardous
substances from the supply chain by 2020. The significant
growth in the sales of Proviera - Probiotics for Leather™
®

and of the Catalix® range of products was also a notable

Accounting and Reporting Standard.
This exercise is designed to understandthe full value chain impact of its activities
and will help to focus efforts on
significant sources of GHG emissions.

Acquisition BASF Leather
Chemicals division
The acquisition of the BASF Leather
Chemicals division, in September 2017,
represents significant progress towards amore transparent supply chain. Initiatives
like the elimination of restricted substances,
the reduction of greenhouse gases and theuse of natural raw materials are enhanced by
the addition of the BASF portfolio and its
complementary sustainability initiatives.

highlight in 2017. For more information about our innovative
solutions, see page 20.

‘Crystal Clear’ event

New applications lab

Stahl promotes transparency and traceability in the leather

Stahl opened a new applications lab for

supply chain and in 2017 we initiated our second transparency-

Automotive, Leather Goods, Shoe Upper andIn November 2017, Solidaridad, Stahl and PUM

focused initiative, called ’Crystal Clear’. During the event,Upholstery in Arzignano, Italy, in October 2017.

Netherlands senior experts and a number of Indian

which took place at the Igualada Leather cluster, we shared

The key focus of activity in this lab is sustainable

our company. The campaign consisted of twelve eight-week

partners officially launched a Public-Private Partnershipknowledge on water management in leather production.

leather solutions. Customers are shown how

themes linked to the 10 Golden Rules of Safety. The overall

linked to the Clean Ganges project launched by the IndianThe event was attended by many key stakeholders in the

Stahl’s extensive portfolio of low environmental

perception was positive and employees have committed togovernment. The five-year project is focused on reducing

supply chain, including brands, NGOs, local government,

impact chemicals can give leather articles

addressing safety issues as a matter of priority.

water pollution in the Kanpur Leather Cluster.

leather associations, leather manufacturers and suppliers.

a durable and luxurious appearance.

Safety Awarenesscampaign

Public-Private Partnershipfor a Cleaner Ganges

2017 saw the completion of the 2-year SHE awarenesscampaign for employees with the goal of zero incidents within

6 Sustainability Report 20177

Organization & GovernanceAt the corporate level, the sustainability team is led by the Director of Sustainability, who reports to the CEO.
The Sustainability team meets regularly with communications, marketing, SBU managers, researchers, productstewardship, procurement and operations staff to monitor the implementation of its strategy and to discuss progress on
new initiatives related to innovation, portfolio management and environmental performance. The Sustainability team also
supports commercial activities initiated by customers that are related to sustainability. KPIs related to safety, health andenvironment are reported monthly by regional operational staff at the Stahl manufacturing sites and a consolidated

Strategy, governanceand implementation

report is issued by the Sustainability team.
Implementation: The Stahl Sustainability Standard
To achieve our sustainability goal, we have identified five focus areas:� Raw Materials - suppliers and the products and services they provide� Responsible Operations - all activities associated with our laboratories, offices and manufacturing sites� Trusted Partnerships - cooperation with third parties throughout the supply chain� Innovative Solutions - the products and services that we offer to our customers� People & Society - employees and the communities around us

Our Sustainability Scope� The promotion of environmentally and socially responsible practices� The use of natural and renewable resources wherever possible,
as long as the environmental impact of their use is favorable

People& Society� The reduction of Greenhouse Gas (GHG) emissions

Raw
Materials

Goals & Strategy
Stahl’s goal is to achieve a ‘crystal clear’ supply chain and our strategy is to initiate and sponsor projects
that promote greater transparency in the markets that we serve. This involves deep cooperation with
our partners in the supply chain. We chose this strategy because we believe that only throughtransparency can a more sustainable industry be achieved. We also recognize that sustainability
represents a significant opportunity for Stahl, to gain competitive advantage in the marketplace

Innovative
Solutions

The Stahl
Sustainability
Standard

and to drive operational excellence throughout the company.
A sustainable future
Stahl’s membership in the UN Global Compact and its alignment to the 17 UN Sustainable Development
Goals is a clear indication of its commitment to a more sustainable future. To demonstrate its progress,
the Stahl sustainability report is submitted each year to the UN Global Compact. Information on the UN

Responsible
Operations
TrustedPartnerships

Click to watch the video that
explains our 5 Focus-Areas.

Global Compact can be found on page 25.

8 Sustainability Report 20179

Raw
Materials
The products we receive from our suppliers are
critical to achieving our sustainability objectives.

Restricted Substances

chain is long and complex and the

Stahl RSL

A fundamental element of most

ZDHC foundation is cooperating

In addition to adhering tocompanies chemical management

closely with its members to drive

the Manufacturing Restricted

system is a Restricted Substancesindustry-wide change. Stahl became

Substances List (MRSL) launched

List (RSL). For clothing or footwear

a Value Chain Affiliate in October

by ZDHC, we took action with ourbrands, for example, the RSL is2016 and has since officially joined

own Stahl Restricted Substancesat the heart of their chemical

the foundation in its commitment.

List (RSL). Stahl’s RSL ensures thatmanagement programs, in that it

A positive list of Stahl products

substances on the list cannot beensures that specific substancesthat are compliant to the ZDHC

used in the development of any

are not present in their final articles.

MRSL are publically available on the

new products within our company.

Stahl works closely with consumer

ZDHC Gateway portal. In December

This list is a consolidation ofbrands in the supply chain to2017, we hosted a successful Stahl

substances that we believe will

anticipate restrictions on chemicalCampus® event for 30 “ZDHC

be included in the various industry

substances and act ahead of time.

members and friends” in Waalwijk,

MRSLs, and those deemedThis means that our suppliers arein which the basic principles ofundesirable for the future. This has

also made aware of the restrictions

leather-making were explained

implications for our suppliers andon substances contained in thealong with alternative synthetic

they are informed continuouslymaterials they provide. In 2017

materials and their application.

about our policy via updated listsof potentially restricted materials.

we further developed our internaltool, the Compliance Checker, toassess compliance against thebluesign® system partner

By eliminating restricted substances and using

increasing number of RSLs andIn 2017 Stahl achieved bluesign®

naturally occurring raw materials when possible,

MRSLs (we have over 400 in oursystem partner status. The bluesign

Stahl is committed to the highsystem). The Compliance Checker

system helps its partners to properly

standards of social and environmental

gives us a clear indication of whether

manage chemicals and to replace

responsibility and ethical conduct

restricted substances are present

hazardous chemicals with safer

as described in our Business Partner

or within the limits of the MRSL.

alternatives in the manufacturing

Code of Conduct. We require all ourof textile and related products.

business partners to comply with

The system sets and controls

our ethical standards and operate

The Zero Discharge of Hazardous

standards for an environmentallyin accordance with the principles in

Chemicals Foundation (ZDHC)

friendly and safe production.

this Code of Conduct. In addition,

In 2011 a group of major apparel andAs a system partner, Stahl will

we expect our business partners,

footwear brands and retailers madereport regularly on the five key

including suppliers, to comply witha shared commitment to help leadareas: resource productivity,

the UN Global Compact Guiding

the clothing industry towards zeroconsumer safety, water emissions,

Principles in the areas of humandischarge of hazardous chemicals

and occupational health and safety.

rights, labor, the environment and

we are triggering real changes in the industry.

by 2020. The apparel and footwear

10 Sustainability Report 2017

Business Partner Code of Conduct®

anti-corruption.

11

Safety, Health and Environment (SHE) policy

SHE Awareness Campaign

A safe working environment is vital to our success

Last year we finished the 2-year SHE awareness campaign

and is achieved by sound policies & procedures. A safefor employees with the goal of zero incidents within our

working environment is also a collective endeavor andcompany. The campaign consisted of twelve eight-weekeach employee is a critical link in the safety chain.

campaign themes linked to the 10 Golden Rules of Safety.

Safety needs constant attention and improvement.
The overall perception was positive and employees showed

Responsible
Operations

Stahl believes that the impact of its business activities

specific interests and needs to continue addressing safety

on the Safety, Health and Environment of its customers,

issues. Based on this feedback a new campaign was

employees, agents and the public at large, is an essential

designed and will be put in place in 2018.

part of doing business. Stahl is therefore committed tothe highest standards as outlined in its policy statements
and documents.

Stahl’s SHE organization
Stahl believes that all employees are responsible forsafety. To support this we appointed a Global SHE and

The impact of our operations on the environment
and the well-being of our employees is a priority

Process Safety Manager who will set the Safety, Healthand Environment strategy, standards and policies of thecompany. He also coordinates and ensures the fulfillment

for Stahl. We have many policies and initiativesof such policies and standards, and implements themin place to ensure continuous improvement.

throughout the company, including changes of behavior
and training for the required competencies.
All Local Managers and General Managers are responsiblefor implementing the Stahl SHE Policy and Principles inareas under their control. This responsibility includes
systems for the recognition of hazards, assessmentof risks and provision of effective controls.

12 Sustainability Report 201713

Safety Key Performance Indicators

Focus on CO2, Energy, Water and Waste

To ensure continued improvement in the evaluation and prevention of risks, Stahl tracks indicators of progress

Stahl is continuously upgrading its production sites andfootprint. Stahl monitors and reports CO2, energy,

on safety. Each month we report our injuries, incidents, audits, trainings, engineering projects and other prevention

laboratory facilities in order to achieve energy, waste andwaste and water consumption at its manufacturingmethods internally and to our shareholders.

water efficiencies that lead to an improved environmentalsites on a monthly basis.

2017

2016

6

3

In line with the 2015 Paris Climate Agreement, Stahl has

scope 2 only (emissions including business travel) and

Serious injuries					4

5a global CO2 emissions reduction target of 10% (per tons

uses 2015 emissions as a baseline, per tons produced.

Minor injuries					
10

10produced) by 2020. This target includes scope 1 andWe are on course to beat our target before the deadline.

First Aid					8

6Occupational Health					01Complaints

2

					
Reportable (LTA) injuries

				

				
2

CO2 Emissions Target

CO2 Emissions

Incidents involving forklifttruck (FLT)				

16

13

Incidents involving a vehicle				

8

14

				

2017

2016

2015

Dangerous Occurrences & Near Misses				64

84

Scope 1: Direct GHG emission** (metric tons CO2-eq.)		14,609

16,56915,162

Environmental Incidents (e.g. spills) 				

51

56Scope 2: Electricity Indirect Emission Sources*** (metric tons CO2-eq.)		21,222

18,661

19,192511,245

-

0.169

0.176

Contractors | Reportable (LTA)				

1

12

Scope 3: Other Indirect Emission Sources**** (metric tons CO2-eq.)		
529,670

Contractors | Serious					2

0CO2 emissions per tons produced		

0.150** Scope 1: Direct GHG Emissions are those that occur from sources that are owned or operationally controlled
by the company: company owned or leased cars, other company vehicles, gas and oil used on site.
*** Scope 2: Electricity Indirect Emission Sources: are those that occur due to purchased energy (in the formof electricity, steam, heat and cooling) from the grid or district heating or cooling systems.
**** Scope 3: Other Indirect Emission Sources are calculated since 2016 following the GreenHouse Gas protocol.

14 Sustainability Report 201715

CO2 and Energy reduction projects

Energy� I
n 2017, a novel solution was implemented at the Stahl site in Waalwijk to keep a key raw material (polyol) at constant

Stahl’s energy consumption is the sum of electricity, gas, oil, coal and steam consumed at their manufacturing

temperature from the time the supplier manufactures the product to the time that Stahl uses it in their own process.

sites. Even though the production volume increased in 2017, the energy per tons produced slightly decreased.

Deliveries are made in liquid form, in bulk, and the material is stored in a heated vessel. This simplifies the current
procedures of cooling, drumming, re-melting and discharging the solid polyol from drums. The savings in energy

Energy consumption per tons produced(and on CO2 by default), packaging and waste are significant, not only for Stahl but also for the supplier.
� S
tahl India was able to realize energy savings of 57,612 KWH in 2017 vs. 2016 thanks to several initiatives

Energy Sources

0.003 0.003

2%linked to investment in more efficient water chilling equipment and by replacing mercury/sodium vapour lamps

20% 20%0.002 0.002

with LED equivalents.
� I
n Stahl Germany, Leinfelden site, energy savings of 400,000 KWH were achieved in 2017 vs. 2016 thanks largely to a
new condensate recovery system and heat exchanger which resulted in savings in steam, which is used for heating2017 2017
0.001 0.001

vessels. A modern screw compressor was also installed in the production area and this also contributed to the0

overall electricity savings at the site.

2%

060% 60%19% 19%SteamSteam
Gas

Gas

Oil

Oil

2016 2016

Electricity
Electricity

2015 2015

Coal(not used)
Coal (notused)

EnergyEnergy(TJ) (TJ)� A
global screensaver campaign was implemented to provide practical advice to all employees on how to save energy
and CO2 in the offices and plants and in their jobs.

Water

CO2 Emissions Target: scope 3
In 2017 we began to estimate our Greenhouse Gas scopedecisions about our activities and the products we buy,

Since Stahl manufactured more in 2017, its water consumption increased. However, consumed water

3 emissions, following the guidance of the GHG Protocolsell and produce. Most scope 3 emissions are linked to

per tons produced decreased, ie: the efficiency of water consumption improved.

Corporate Value Chain Accounting and Reporting Standard.

raw materials that Stahl uses and to the end-of-life

We started this to understand our full value-chain-treatment of its products. Transport related emissions

emissions impact in order to focus our efforts on GHG

are also significant.

reduction opportunities, leading to more sustainable

Scope 3 Emissions Stahl by category
				

22

2

11

1

2017
2017 201740%
350,746
510,34940%
40%
350,746
350,746
510,349
510,3493
33 60%
33
m3
m
m
m
m
m
60%
60%

2016
2016 20162017

Cat 1: Purchased goods and services (emissions (ton CO2e)		317,755

Water Sources

Water consumption per tons produced00

consumption
Water
WaterWater
consumption
consumption

Water
usage
WaterWater
usageusage

2015
2015 2015

0
Water
Water
Water (m(m33)) (m )3

Cat 12: End-of-life treatment of sold products (emissions (ton CO2e)		133,667
Cat 4: Upstream transportation and distribution (emissions (ton CO2e)		
51,290
Other (emissions (ton CO2e)		
26,959Total			529,671

Waste
In line with the circular economy concept, Stahl regards waste as a potential by-product, with value for otheruses. Disposal of waste is only done as a last resort. It is also a goal to install internal water treatment facilities
at all our sites in the future, thus limiting the amount of wastewater sent to third parties for treatment.
Two of Stahl’s 13 manufacturing sites do not yet have in-house water treatment plants.

Waste per tons produced

Waste Types

0,06
0,060,0613%
13%13%

0,04
0,040,04
2017
20172017
0,02
0,020,02
0 0

201620162016

87%
87%87%

Non-Hazardous
Non-Hazardous
Non-Hazardous
waste
waste
waste
Hazardous
Hazardous
Hazardous
waste
waste
waste

2015
201520150
Waste(tons)
Waste
Waste(tons)(tons)

These KPIs have been audited by Ernst & Young.

16 Sustainability Report 201717

The Zero Discharge of Hazardous Chemicals Foundation (ZDHC)In 2011 a group of major apparel and footwear brands and retailers (called
ZDHC Foundation) made a shared commitment to help lead the clothing
industry towards zero discharge of hazardous chemicals by 2020.

bluesign® system partner

TrustedPartnerships

In 2017 Stahl achieved bluesign® system partner status. The bluesign®
system helps its partners to properly manage chemicals and to replace
hazardous chemicals with safer alternatives in the manufacturing of
textile and related products.

Solidaridad
Solidaridad is an international solution-oriented civil society organization
working through nine regional expertise centers on transforming markets
to make them more inclusive and sustainable.

By stimulating cooperation in the supply chain,
we believe sustainability evolves as a consequence.

The Leather Working GroupThe objective of this multistakeholder group is to develop and maintain

Stahl is working on a wide range of projects linked toan audit protocol that assesses the environmental compliance of tanners

transparency and sustainability with several industry

and to promote sustainable practices in the leather processing industry.

associations, universities and other partners.
Cooperation with universities
Stahl cooperates with over thirty different universities and colleges
around the world, on a wide range of projects.

TEGEWATEGEWA is a group of chemical manufacturers supplying the leather,
textile and paper industries.

BLC
BLC is the leading leather testing and technology centre dedicated toleather, footwear, chemical and leather product testing, to ensure fast
and accurate solutions to leather related problems.

ECO PASSPORT by OEKO-TEX®
The ECO PASSPORT by OEKO-TEX® is the comprehensive verification andcertification system for textile chemicals, colorants and auxiliaries.

Wageningen University
Wageningen University is a recognized global leader in environmental
science, which is why Wageningen and Stahl are working together on
projects related to water effluent in the leather process.

18 Sustainability Report 201719

Leather Chemicals & Finishing

Performance Coatings & Polymers

Stahl Neo and ZDHC MRSL compliance

STAHL EVO

Stahl Neo is our portfolio of leather finishes that not

STAHL EVO is our new generation of top coats, skins,

only complies with the ZDHC Manufacturing Restricted

adhesives, foams and pigments for synthetic materials.

Substances List (MRSL), but does not contain any of the

The STAHL EVO portfolio is fully compliant with ZDHC’s

substances on that list. Our latest additions to the Stahl

Manufacturing Restricted Substances List (MRSL).

Neo portfolio include a range of water repellents that

The products also allow customers to eliminate theare both PFC-free and BTX-free, a group of millinguse of DMF in their process, reducing water and energy

chemicals and an expanded range of upgrading solutions.

consumption at the same time. The growth in sales of

By the end of 2017, 95% of the Leather Finish and Wet-End

the STAHL EVO has been a feature over recent years,

portfolios were compliant to the ZDHC MRSL. Our target

and this continued in 2017. We fully expect the rapid

is to reach 100% compliance by 2020.

sales growth to continue in the coming years.

Proviera® - Probiotics for Leather™

Bio-based polyurethanes

The early stage of the leather process requires the use

The policy of promoting the use of natural and renewableof chemicals to clean and prepare the hide for tanning.

resources as raw materials has driven innovation in

Proviera - Probiotics for Leather™ are metabolites

bio-based polyurethane research. Our bio-based

With 11 R&D centers around the world, employing

derived from controlled fermentation using natural

PolyMatte® was successfully commercialized in 2016

almost 100 technical staff, Stahl’s product research

ingredients. The use of these products can reduce theand in 2017 we developed a range of high-performance

effluent load during the cleaning process while improving

bio-based polyurethane dispersions for the automotive

leather quality. In 2017 Stahl’s promotion of Proviera® -industry. We are planning to launch some of thesethat reduce the environmental footprint. This can

Probiotics for Leather™ bore impressive results: sales

products in 2018.

be either by using bio-based raw materials in ourdoubled in 2017 vs. 2016.

Innovative
Solutions®

is aimed at providing high performance solutions

products or by designing products which will reduce

Carbodiimide Crosslinkers
Stahl EasyWhite Tan™

The use of polycarbodiimide crosslinkers in coatings

The main environmental benefit of using the Stahlis growing, largely owing to Stahl’s water-based andour customers’ products. It is now a requirement

EasyWhite Tan™ system is the significant reduction in

VOC-free technology. Carbodiimides are easier to handle

that all new products developed by Stahl’s research

consumption of water, salt and energy during the leather

than traditional crosslinkers and ensure outstanding

tanning process. The widespread acceptance of Stahl

performance. These patented products are an excellent

EasyWhite Tan™ shows that it is becoming an increasingly

building block for the design of environmentally-friendly

common choice for customers who value a simpler tanningcoatings systems. Growth in sales of these crosslinkers

process without compromising the quality of the leather.

has been consistent over the last five years and we expect

the CO2, energy, water or toxicological footprint ofteam must have a clear environmental benefit.
The incorporation of the BASF Leather Chemicals
product portfolio will complement this drive
towards a more sustainable industry.

this to continue as more customers switch to waterbased
Dryfast Beamhouse product range

coatings and lower impact chemicals.

The Dryfast Beamhouse product range was an important
addition to the portfolio in 2017. A legacy from the BASF
portfolio, this system allows leather manufacturers torealize significant savings in water effluent and solid
waste during the beaming stage of the tanning process.
New Cationic technology for reducing water pollution
In 2016, Stahl launched Catalix® 150 and Catalix® GSX
liquid: polymer solutions for lower-impact leather
processing. The inclusion of these products in retanning
formulations significantly reduces the pollution level ofwater effluent. The successful introduction of this range
resulted in significant sales growth in 2017.

20 Sustainability Report 201721

People& Society
Our workforce is the foundation of our success.
We employ over 2,000 people with 54 nationalities,

Code of Conduct for Stahl employees

Workforce

Our Code of Conduct outlines what is expected of

As of December 2017, Stahl had 2,000 employees, anevery person working for Stahl. Integrity is essential inincrease of 220 FTE’s compared to 2016. In total, 87% of

establishing and maintaining our reputation and providing

Stahl’s employees have permanent contracts. Our workforce

high-quality services to our customers. Our objective isconsists of 73% men and 27% women. Total Full Timeto preserve Stahl’s continuity via care and respect for ourEquivalents (FTE) leaving (dismissals and resignations)customers, employees, shareholders and other businessduring 2017 were 151 and 395 joined in the same period.

partners. A whistleblower policy allows employees to report

These ratios are in line with the industry average. The

suspicious behavior that potentially conflicts with ourturnover rate over 2017 was 14.2%. Stahl is an equal-

Code of Conduct, while offering the necessary guaranteed

opportunity employer in all its locations worldwide.

protection to the whistleblower in question. The full
Stahl Code of Conduct can be found in the appendix
Diversity & Inclusionof this report.

Consistent with Stahl’s strategy of growing its
leadership talent, Diversity and Inclusion principles are
Business Partner Code of Conduct

embedded within Stahl’s core leadership development

Stahl’s Business Partner Code of Conduct describes ourprograms to encourage managers to demonstrate themcommitment to the highest standards of social andas part of their leadership behavior. Stahl will also build

environmental responsibility and ethical conduct. We ask

cultural intelligence and equality into its performance

all our business partners to comply with the principles

review, hiring and talent identification processes.

outlined in this Code of Conduct. In 2017 we updated ourin 24 countries at 13 manufacturing sites, 11 R&D

Business Partner Code of Conduct by adding modern

centers and 38 application labs. We encourageslavery, in which the business partners commits not toTraining

participate in any form of forced or compulsory labour.

The nature of Stahl’s business requires a focusedtrust, honesty, personal growth, innovation,
creativity and teamwork among our workforce.

� Laws and regulations

� Human Rights

approach to training. We offer our employees different

� Business integrity

� Discrimination

training programs:

� Free and fair competition

� Modern Slavery

� Every new employee receives an updated SHE training,� Confidentiality

� Working hours

� P
rotection of� Child and forced labour

followed by a more specific job-related training.

� Health and safety

Intellectual Property

� I
n 2017, Stahl launched e-learning training programs
focused on bribery, corruption and modern slavery,
including a test at the end. Special attention is given

� Environment

to awareness and to the red flags that can indicate
non-compliant behavior in the supply chain.
� Stahl’s international Management Training Program,with a focus on managerial and leadership skills.

Breakdown of full-time equivalent employees as of December 31, 2017 by geographic region

Male-Female employees

Full-time employees as of December 31
2100
2100
1500

Americas

1000

India, Pakistan and Bangladesh (IPB)

500

Asia-Pacific

1500

AmericasIndia, Pakistan and Bangladesh (IPB)

1000

73%

Male
Female73%

MaleFemaleEurope, Middle East & Africa (EMEA)

0
2017

2017

22 Sustainability Report 201727%

Asia-Pacific

500
0

27%

Europe, Middle East & Africa (EMEA)

2016

2016

23

Sustainable Industrial Development

United Nations Sustainable Development Goals

Aside from our commercial activities around the world, Stahl works closely with

Stahl is committed to the guiding principles of UN Global Compact, the world’s largest corporate sustainability initiative.

international organizations and NGO's on non-profit activities and projects.

With this commitment we confirm the alignment of our strategy and operations with the universal principles of humanrights, labor, environment and anti-corruption. Stahl’s activities are therefore being aligned with the 17 Sustainable
Development Goals (SDGs), established at the United Nations General Assembly in 2015:

UNIDO
2017 marked the successful launch of UNIDO’s e-learning courses designed
to promote good practices and responsible chemical management in leather
tanneries; a significant achievement and one which Stahl fully supports.
Our cooperation with UNIDO is also facilitated by Stahl’s Sustainability
Roadshows, which were organized in Pakistand and Bangladesh in 2017,
in which UNIDO also presents its industrial development initiatives in therelevant leather clusters.

PUM
PUM is a Dutch organization that links small and medium sized companies indeveloping countries to experienced professional experts in order to improvesustainability and combat poverty in those regions. Stahl and PUM havebegun to work together on projects for the leather sector. This partnershiphas Stahl experts travelling voluntarily to the country in question together
with PUM country staff to visit tanneries that require the technical skills andservice which the Stahl technicians can provide. In 2017, two Stahl expertson leather finishing and wet-end chemicals participated in the PUM missions1	No poverty: In addition to proactive philanthropy at

hired in 2017, who works on water pollution projects.

the local community level, Stahl is also involved in

The company has also introduced effluent-reducing

wider industrial development projects in emerging

technologies like Proviera® - Probiotics for Leather™,regions, along with NGOs and governments. An example

Stahl Neo, STAHL EVO and Catalix® as well as water-is the Public-Private Partnership (PPP) between Stahl,

reducing technologies like Stahl EasyWhite Tan™.

Solidaridad, PUM that was launched in 2017,

The PPP launched in Kanpur, India is also focussed

in Kanpur, India.

on water pollution.

in Zimbabwe, focused on developing the small tanning industry there.
Their visits lasted 2-3 weeks.

Solidaridad
Solidaridad is an international solution-oriented civil society organization
working through nine regional expertise centers on transforming markets

3	Good health and well-being: Stahl has committed to

to make them more inclusive and sustainable. In 2017, Solidaridad, Stahlinitiatives that will eliminate restricted substances

Stahl’s goal is a 10% reduction in CO2 emissions by

and PUM Netherlands senior experts and a number of Indian partners

from the supply chain, like the ZDHC Foundation,2020 (in line with the 2015 Paris Climate Agreement)

officially launched a public-private partnership to reduce water pollutionof which we are a member since 2016. In 2017

and this implies the adoption of renewable energy

in the Kanpur Leather Cluster, which is located on the river Ganges.

Stahl became a bluesign system partner.

sources and raw materials, as well as energy efficient®

7/13	
Affordable and clean energy & Climate action:technologies at our sites. 2017 GHG emissions
4	Quality education: Stahl Campus was established®

to promote good practices throughout the supply

Sustainability Roadshows

improved vs. 2016 and we are well on target tomeet to the 2020 goal.

chain (see page 26 for a more detailed description).

Stahl organizes Sustainability Roadshows around the globe with the goal

Stahl also actively promotes the safe handling ofof familiarizing local professionals with Stahl’s sustainability philosophy

chemicals and conducts seminars on this topic incommitment to sustainable industrial development

for the industry. In 2017, Stahl hosted a series of seminars in key leather

emerging regions. In 2018 Stahl Campus® will be

includes cooperation with UNIDO, Solidaridad, PUM

clusters in Pakistan and Bangladesh. The topics discussed were restricted

expanded to Kanpur, India, to support the waterand other NGOs. The Public-Private Partnership

substances, ZDHC, water pollution reduction, biobased raw materials andpollution efforts being made there.

in Kanpur, India, is an example of this, and we alsotransparency in general.

8	Decent work and economic growth: Stahl’s

launched an EU funded project in 2017 aimed at
5

Gender equality: Stahl’s Diversity and Inclusion policy

promoting efficient technologies for the Ethiopian

was communicated in 2017 and is summarized inleather industry.

this report (page 23).
10	Reduced inequalities: Stahl’s Code of Conduct was

24 Sustainability Report 20176	Clean water and sanitation: Water technology is a

implemented in 2015 and the Stahl Diversity andgrowing area for Stahl and we are working jointly with

Inclusion policy was implemented 2017. E-training

leading universities on improving water effluent quality.

courses were completed on the topics of bribery,

This includes employing a research specialist,

corruption & modern slavery.

25

In 2017 over 1,000 people attended Stahl Campus® training
courses around the world and our training now includes
modules on best practices in performance coatings
CAMPUS

applications. In 2018 Stahl Campus® will be expanded to
Kanpur, India, where a new Center of Excellence is being

Foundation of Stahl Campus®
The Netherlands

Stahl Campus®
MexicoStahl Campus®
China

October 2014

April 2016

November 2016

constructed to support the Public-Private Partnership
related to water pollution in the Uttar Pradesh leather

Stahl®
Campusmanufacturing cluster.
Stahl Campus® The Netherlands
In 2017, we welcomed 260 people from around the world including China, Turkey, India and the Netherlands - to Stahl
Campus® Waalwijk (The Netherlands). We shared knowledge
about good practices and sustainable solutions in theleather supply chain. The participants came from various
fields of expertise and included university students,“We enjoyed superb hospitality and a fantastic,
highly informative day. It’s always a pleasure to
visit our contributors and having learned so muchabout leather, textiles and synthetics there,
everybody was keen to come back again andlearn more.”

specialized tannery staff (both Automotive and Fashion)and luxury fashion brand employees. In December, weStahl Campus® is the global knowledge center establishedin 2014 in Waalwijk (The Netherlands) and extended tohosted a successful Stahl Campus® event for 30 ZDHC

Stahl Campus® Mexico

The goal of Stahl Campus® is to promote good practices

Stahl Campus® was established in León, Mexico, in 2016.

invites customers, suppliers, university students, OEMs,tanneries in the world and it is the world’s second largest
producer of leather shoes. Since its opening in April of 2016,
Stahl Campus® León (Mexico) has welcomed around 120

and strengthen their knowledge through theoretical andpeople from nineteen companies. In June 2018 we willelement of our strategy of promoting transparency.

Stahl Campus®

Mexico has the largest conglomeration of automotive

brands, and more, to come to its specialized laboratories
practical training modules. Stahl Campus® is a key

Michael Costello

members in Waalwijk.

León (Mexico) in 2015 and Guangzhou (China) in 2016.
and transparency throughout the supply chain. Stahl

Director of Sustainability

complete the Post Graduate Certificate course in Stahl
Campus® León (Mexico). This ambitious six-week course
was developed in cooperation with the University ofNorthampton (UK), and students will receive an official
PG Certificate in leather finishing upon completion. The

The Netherlands

MexicoChina

Frans van den Heuvel

Juan Antonio Frias

Karin Leecourse is focusing on automotive finishing with students
from key suppliers of OEMs.
Stahl Campus® China
China is the number one leather producer in the world.
Stahl Campus® Guangzhou (China) focuses on training
programs for university students, tanneries and designers.
Over 800 students participated in training on leather andspecialty coatings during 2017.

26 Sustainability Report 201727

Financial Performance
Sales
Stahl’s achievements insustainability are directly
linked to our financial
performance.

Sales 2016 vs. 2017 per business tube (reported in EUR ’000)

800,000
800,000

600,000
600,000
400,000
400,000

Leather Finish & Aftercare

Performance Coatings

for Leather

With nearly a century of experience

Stahl’s fastest growing businessThis division is focused on providing

around the globe, Stahl is theunit, this division is focused on

products and services for theundisputed leader in leather

providing custom-made solutions

beamhouse (rawhide treatment),finishing technology and isfor almost any type of surface,tanning and retanning steps of therenowned for its quality andboth flexible and rigid.

Leather Finishing
Leather Finishingleather manufacturing process.

’Golden Hands’ technicians.

Southeast Asia
Southeast Asia
& Pacific& Pacific

Automotive Leather Chemicals

PielColor

Stahl Polymers

Stahl is the market leader for the

The second brand in the Stahl

Founded as Picassian® in 2005,

Greater China
Greater China

process chemicals and finishinggroup, founded in 1977 in Spain,

Stahl Polymers supplies raw materials

India, Pakistan
India, Pakistan& Bangladesh& Bangladesh
Europe, Middle
Europe, Middle
East & Africa
East & Africa
South & Central
South & Central
America
Americatechnology used to manufacture

PielColor provides leather finishes

to coatings manufacturers acrossautomotive leather. This division

to its clients with an emphasis on

several segments.

is focused on providing highfashion and technical service.

Wet-End, Chemicals
Wet-End, Chemicals& Dyes for Leather& Dyes for Leather
Automotive Leather
Automotive Leather
Chemicals
Chemicals

200,000
200,000
0
0

Wet-End, Chemicals & Dyes

Performance Coatings
Performance Coatings& Polymers& Polymers

2016
2016

2017
2017

Sales 2016 vs. 2017 per region (reported in EUR ’000)

800,000
800,000

600,000
600,000
400,000
400,000
200,000
200,000
0
0

28 Sustainability Report 2017

performance solutions for car
interior leather applications.

North America
North America

2016
2016

2017
2017

29

Management Team
Stahl Board: Consists of members from shareholders Wendel (5),Clariant (1), BASF (1), external (1) and two members from Stahl.
Stahl Management team: Consists of the CEO, CFO, Director of
procurement, Director of innovation, Director of marketing andbusiness unit leaders from the Leather Chemicals and Performance

Huub van Beijeren
Chief Executive
OfficerBram Drexhage
Chief Financial
Officer

Guido Borgart
Group Director Operations& Supply Line

Ralph-Günther Blach
Group Director R&D andTechnical Application

Jacques PotierGroup Director
Procurement

Harald Bauer
Group Director Wet-End,
Chemicals & Dyes

Xavier Rafols
Group Director
Leather Finish

Mark ChatwoodGroup Director Automotive
Leather Chemicals

Uwe Siebgens
Group Director Performance
Coatings & Polymers

John FletcherGroup Director Marketing& Brand Services

Coatings divisions. This team meets monthly and determines
the company’s strategy and its implementation.
Executive team: Includes the Stahl Management team plus regional
general managers from Europe, Asia, India, the United States andLatin America, plus legal and compliance, IT, communications,marketing and sustainabilty. This team meets on a quarterly basis,
reviewing performance and deciding on strategy and tactics for the
coming quarter.
Sustainability: Decision-making is governed by the Director of
Sustainability with Stahl Management and the Executive team.
Decisions are made based on constant communication
between members of the Sustainability team and staff
throughout the organization.

30 Sustainability Report 201731

Global Presence
Our long-standing commitment to providing local technicalservice for our customers also drives the promotion of moresustainable products and good practices around the world.

Corporate Headquarters:
Waalwijk, The Netherlands

Stahl Campus® (3):Americas (Mexico), Asia (China),
EMEA (The Netherlands)

Centers of Excellence (7):China, France, Germany, Italy,
Mexico, The Netherlands, Spain

FranceUSA

Spain
R&D Centers (11):Netherlands
Germany
ItalySouth Korea

Pakistan

MexicoBrazil, China, France, Germany, India, Italy,

Japan

China

TurkeyBangladesh

Mexico, The Netherlands, Singapore, Spain, USA
India
Manufacturing Sites (13):Ethiopia

Colombia

Brazil, China, France, Germany, India (2), Italy,

TaiwanThailand
VietnamSingapore

Mexico, The Netherlands, Singapore, Spain (2), USA
Indonesia

BrazilSales Offices / Representative Offices (31):Argentina, Bangladesh, Brazil, China, Colombia,
Ethiopia, France, Germany, India, Indonesia, Italy (2),Japan, Mexico, The Netherlands, Pakistan (4),Singapore, South Korea, Spain (3), Taiwan, Thailand,
Turkey, Uruguay, USA (2), Vietnam

UruguayArgentina

Applications Labs (38):
Argentina, Brazil, Bangladesh, China (3), Colombia,
Ethiopia, France, Germany, India (8), Italy (4), Japan,
Mexico (2), The Netherlands, Pakistan (4), Singapore,
Spain (2), Thailand, Turkey (2), USA (2)32 Sustainability Report 201733

GRI table
The below table indexes the Stahl Sustainability Report 2017 against the GRI (Global Reporting Initiative) reporting
guidelines and the UN Global Compact (UNGC). Our report has been prepared in accordance with GRI G4 (core),based on self-declaration.

Disclosure Number

What to report?

Disclosed information

Source of evidence
https://www.stahl.com/en/sustainability.
htm#Sustainability%20Report102-14

A statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position)
about the relevance of sustainability to the organization and its strategy for addressing sustainability.

“Message from the CEO” in the 2016 and 2017 Stahl Sustainability Reports, referring to our goal oftransparency and our strategy to achieve it. This strategy is frequently communicated to the press
and in publications, for example at the time of the BASF leather division acquisition in 2017.

See also press releases:
http://internationalleathermaker.com/
news/fullstory.php/aid/3849/Stahl_to_acquire_BASF_Leather_Chemicals_.html
http://internationalleathermaker.com/
news/fullstory.php/aid/4109/Stahl_to_
discuss_transparency_during_traceability_
webinar.html

102-1

Name of the organization.

Stahl Holdings B.V.

102-2

A description of the organization’s activities.

To manufacture, sell and trade in chemical products like processing chemicals and finishing products
for the leather tanning industry, and performance specialty coatings and polymers for industrial coatings
markets. The company also provides services to these markets parallel to its commercial activities.

Primary brands, products, and services, including an explanation of any products or services that arebanned in certain markets.

Stahl uses two primary brands (Stahl and PielColor) to promote its products and services, and there
are many product trademarks used within the portfolio (eg: PolyMatte®, Stahl EasyWhite Tan™,
Catalix®, DryFast, STAHL EVO, Stahl Neo, PielColor Magic Line). See the Stahl Compliance Report for
guidelines on trading in certain countries.

Compliance report 2017

Location of the organization’s headquarters.

Stahl Holdings B.V., Sluisweg 10, 5145 PE Waalwijk , Netherlands, +31 416 689 111

https://www.stahl.com/en/contact.
htm#Contact

102-3

102-4

Number of countries where the organization operates, and the names of countries where it has
significant operations and/or that are relevant to the topics covered in the report.

We operate in 24 countries. The most important* countries are Argentina, Bangladesh, Brazil, China,
Colombia, France, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Pakistan, Singapore,
Spain, Turkey and the USA.

https://www.stahl.com/

https://www.stahl.com/en/contact.
htm#Contact*Most important means where we do most business, especially the contact with clients,

as well as the manufacturing of our products.

102-5

Nature of ownership and legal form.

Stahl’s majority shareholder is the private equity Wendel Group (63% of shares). Other minority
shareholders include Clariant and BASF.

https://www.wendelgroup.com/en/company/stahl
https://www.stahl.com/en/automotive.htm

102-6

Markets served, including:
1. Geographic locations where products and services are offered;
2. Sectors served;
3. Types of customers and beneficiaries.

https://www.stahl.com/en/apparelaccessories.htm

Automotive, Footwear, Apparel & Accessories, Architectural & Interior Design, Home furnishing,Industrial Application and Leisure & Lifestyle.

https://www.stahl.com/en/architecturalinterior-design.htm
https://www.stahl.com/en/industrialapplication.htm
https://www.stahl.com/en/leisurelifestyle.htm

102-7

Scale of the organization, including:
1. Total number of employees;
2. Total number of operations;
3. Net sales (for private sector organizations) or net revenues (for public sector organizations);
4. Total capitalization (for private sector organizations) broken down in terms of debtand equity;
5. Quantity of products or services provided.

As of 31/12/2017: 2,049 employees, 13 manufacturing sites, approximately 6,000 products (stock keeping
units). Net sales 2017: €733,3 Million. Stahl Lux 2 SA (holding company) total equity is reported at EUR
45.7 Million, total liabilities EUR 877.1 Million.

102-8

Total number of employees by employment contract (permanent and temporary), by gender.
Total number of employees by employment contract (permanent and temporary), by region.
Total number of employees by employment type (full-time and part-time), by gender.
Whether a significant portion of the organization’s activities are performed by workers who are not employees.
If applicable, a description of the nature and scale of work performed by workers who are not employees.
Any significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c(such as seasonal variations in the tourism or agricultural industries).
An explanation of how the data have been compiled, including any assumptions made.

As of December 31, 2017, Stahl had 2,073 employees (2,049 FTE’s), an increase of 220 FTE’s compared to2017. 87% of Stahl’s employees are on permanent contracts. Its workforce is 73% male and 27% female.
Total Full Time Employees (FTE) leaving (dismissals and resignations) during 2017 were 151 and 395
joined in the same period. These ratios are reasonable and in line with the market for the kind ofactivities and the location in which they take place. The turnover rate in 2017 was 14.2%.

34 Sustainability Report 2017https://www.wendelgroup.com
Registration Document 201735

Disclosure Number

What to report?

Disclosed information

Source of evidence

102-41

Percentage of total employees covered by collective bargaining agreements.

Given the international set up of Stahl and the relatively small dimension of the local units, there are
only two local company collective bargaining agreements in place. These are negotiated at local levelwith the direction and supervision from headquarters but are also centrally coordinated, to ensure
Stahl remains competitive in the respective markets.

https://www.wendelgroup.com
Registration Document 2017

102-9

A description of the organization’s supply chain, including its main elements as they relate to the organization’s activities,
primary brands, products, and services.

Stahl manufactures its products at its own manufacturing sites around the world or at outsourced
locations via service agreements. Its suppliers are also chemical companies, and include most of thethe major global chemical corporations. Clients that use our products are typically leather tanneries
and converters of textiles and other synthetic materials.

102-10Significant changes to the organization’s size, structure, ownership, or supply chain, including:
1. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;
2. Changes in the share capital structure and other capital formation, maintenance, and alteration operations(for private sector organizations);
3. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers,
including selection and termination.

In 2017 the structure and ownership of the company changed due to the acquisition of the BASF
Leather chemicals business. Additional annual sales of (est.) €200 million are expected on the top line
as a result of this acquisition. One factory was acquired as part of this transation (in Spain) and BASF
(Germany) became a key supplier for Stahl at the same time, of materials used in leather chemicals.
BASF also became a (minority) shareholder in October 2017.

Whether and how the organization applies the Precautionary Principle or approach.

While Stahl has not expressly formalized an approach to the Precautionary Principle, the company iseffectively applying the principle with its proactive approach to transparency and sustainability. As an
example, Stahl is actively eliminating several chemcial substances from its product lines which are notyet regulated by law, but that we believe could be potential risks in the future. Stahl is also active inpromoting transparency throughout its customers’ supply chains, via initiatives that bring different
players from the supply chain together to discuss and decide on environmental issues.

102-11

https://www.unglobalcompact.org/
participation/report/cop/createand-submit/active/322461

102-12A list of externally-developed economic, environmental and social charters, principles,or other initiatives to which the organization subscribes, or which it endorses.

Page 25 in the 2017 Sustainability Report. UN Global Compact, UN 17 SDGs.

http://www.roadmaptozero.com/
contributors/
https://www.solidaridad.nl/nieuws/
solidaridad-zet-zich-in-voorschone-ganges-rivier

102-13A list of the main memberships of industry or other associations, and national orinternational advocacy organizations.

A list of all entities included in the organization’s consolidated financial statements
or equivalent documents.
102-45
Whether any entity included in the organization’s consolidated financial statements
or equivalent documents is not covered by the report.

Solidaridad, The Zero Discharge of Hazardous Chemicals Foundation (ZDHC), bluesign®
system partner, The Leather Working Group, PUM Netherlands Senior Experts, TEGEWA.

https://www.stahl.com/en/trustedpartnerships.htm

Europe & Africa: Stahl Chemical Industries B.V. GMBH Austria Vienna, Stahl France SARL France Graulhet,
Stahl Chemicals Germany GmbH Germany Leinfelden-Echterdingen (formerly: Stahl Leinfelden GmbH),
Stahl Italy SRL Italy Palazzolo (formerly: Stahl Palazzolo SRL), Stahl Group SA (95.7%). Stahl LUX 2 SA
in Luxembourg Luxembourg, Stahl Netherlands B.V. Netherlands Waalwijk, Stahl International B.V.
Netherlands Waalwijk, Stahl Europe B.V. Netherlands Waalwijk, Stahl Treasury B.V. Netherlands Waalwijk,
Stahl Holdings B.V. Netherlands Waalwijk, Stahl International Specialties Development B.V. Netherlands
Waalwijk, Winvest Part B.V. Netherlands Amsterdam, Stahl Europe Application PC B.V. Netherlands
Waalwijk, Stahl International Polymer Development B.V. Netherlands Waalwijk, Stahl International
Compounding B.V. Netherlands Waalwijk, Stahl Parent B.V. Netherlands Waalwijk, Stahl Iberica SL Spain
Parets, Stahl Investment Spain SL Spain Parets, PielColor SL Spain Parets, Stahl Europe Spain SLU
Spain Parets, Stahl Performance Powder Coatings SL (73.0%) Spain Parets, Stahl Switzerland GmbH
Switzerland Muttenz, Stahl Kimya Sanayi ve Ticaret Ltd Sirketi Turkey Istanbul, Stahl UK Ltd UK
Loughborough, Stahl Africa Chemicals Plc Ethiopia Addis Abeba.
Americas: Stahl de México, S.A. de C.V. Mexico Toluca, Stahl (USA) Inc. USA Peabody, Stahl (USA) Holdings
Inc. USA Delaware, Stahl LLC USA Delaware, South America, Stahl Chemicals Srl (formerly Colorcuer Srl)
Argentina Buenos Aires, Stahl Argentina Srl Argentina Buenos Aires, Stahl Brasil SA Brazil Portao,
Productos Stahl de Colombia SA Colombia Bogota, PielColor Uruguay SA Uruguay Montevideo, Lidertime
SA Uruguay Montevideo, Stahl Uruguay SA Uruguay Montevideo. Asia: Stahl Coatings and Fine Chemicals(Suzhou) Co. Ltd China Suzhou, Stahl Leather Chemicals HK Limited Hongkong Hongkong, Stahl India
Pte Ltd India Chennai, PT Stahl Chemicals Indonesia Indonesia Kota Tangerang, Stahl Japan Ltd Japan
Tatsuno, Stahl Korea Ltd Korea Kyounggi-Do, Stahl Pakistan (private) Ltd Pakistan Karachi, Stahl Trading(Shanghai) Co. Ltd China Shanghai, PielColor Trading (Shanghai) Co. Ltd China Shanghai, PielColor Trading(Suzhou) Co. Ltd China Suzhou, Stahl Asia Pacific Pte Ltd Singapore Singapore, PielColor Asia Pacific Pte.
Ltd. Singapore Singapore, Stahl (Thailand) Ltd Thailand Amphur Muang Samutprakarn.

An explanation of the process for defining the report content and the topic Boundaries.
An explanation of how the organization has implemented the Reporting Principles for defining
report content.

We have defined our Sustainability policies and report content, based on stakeholder feedback in 2015.
Based on the feedback we have set our reporting content. The Reporting Principles are publicallyavailable in the Wendel Report.

https://www.wendelgroup.com
Registration Document 2017102-47A list of the material topics identified in the process for defining report content.

Based on 2015 stakeholder feedback (from 40 topics, rated from low to high importance) the below
17 topics were identified as material (score 7/10 or higher): Reducing Environmental Impact across the
supply chain, Reduce Greenhouse Gas Emissions, Reduce Pollution, Reduce Environmental Impact ofStahl Products, Product Safety, Efficient Logistics, Health & Safety in Stahl Production, Health & Safety
for our Customers, Develop sustainable Product Solutions, Understand Customer needs / Provide
Service, Competiveness, Strive for Innovation, Human Rights, Childlabour, Forced Labour, Discrimination,
Anti-Corruption, Compliance with legislation and initiatives.

Not publically available, since we havenot asked our stakeholders in 2015 toagree with public availability of the
feedback provided

102-48The effect of any restatements of information given in previous reports, and the reasons for such restatements.

Restatements in the Sustainability report linked to enviromental data reported and are clearly
explained in the Sustainability report.

102-4636 Sustainability Report 201737

Disclosure Number

What to report?

Disclosed information

102-49Significant changes from previous reporting periods in the list of material topics and topic Boundaries.

Materiality analysis has not been updated in 2017, planned for 2018.

102-40A list of stakeholder groups engaged by the organization.

Customers, owners/shareholders, NGOs, brands, suppliers, employees, public authorities

102-42The basis for identifying and selecting stakeholders with whom to engage.

Size, influence, frequency of engagement.

102-43The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group,
and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Planned for 2018

102-44

Key topics and concerns that have been raised through stakeholder engagement, including:
1. How the organization has responded to those key topics and concerns, including through its reporting;
2. The stakeholder groups that raised each of the key topics and concerns.

Planned for 2018102-50

Reporting period for the information provided.

January 1, 2017 up to and including 31 December, 2017102-51

If applicable, the date of the most recent previous report.

March 2017102-52

Reporting cycle.

The Stahl Sustainability Report is published each year in March.

Sustainability Reports (downloadable
since 2013)

102-53The contact point for questions regarding the report or its contents.

See back cover of the 2017 Sustainabilty report on the website per item

https://www.stahl.com/en/sustainability.
htm#Sustainability%20Report102-54The claim made by the organization, if it has prepared a report in accordance with the GRI Standards, either:
1. ‘This report has been prepared in accordance with the GRI Standards: Core option’;2. ‘This report has been prepared in accordance with the GRI Standards: Comprehensive option’.

‘This report has been prepared, whenever possible, in accordance with the GRI Standards: Core option’;102-55The GRI content index, which specifies each of the GRI Standards used and lists all disclosures included in the report.
For each disclosure, the content index shall include:
1. The number of the disclosure (for disclosures covered by the GRI Standards);
2. The page number(s) or URL(s) where the information can be found, either within the report or in other published materials;
3. If applicable, and where permitted, the reason(s) for omission when a required disclosure cannot be made.

See (a) first column GRI reference numbers and (b) last column the links to documents where available
or the source of the information.

102-56

A description of the organization’s policy and current practice with regard to seeking external assurance for the report.
If the report has been externally assured:
1. A reference to the external assurance report, statements, or opinions. If not included in the assurance report accompanying
the sustainability report, a description of what has and what has not been assured and on what basis, including theassurance standards used, the level of assurance obtained, and any limitations of the assurance process;2. The relationship between the organization and the assurance provider;
3. Whether and how the highest governance body or senior executives are involved in seeking external assurance
for the organization’s sustainability report.

The KPIs reported in the Responsible Operations section of this report have been audited and approvedby an independent third party (Ernst & Young). The Sustainability report as a whole has not been assured
by a third party.

Governance structure of the organization, including committees of the highest governance body.
Committees responsible for decision-making on economic, environmental, and social topics.

The Stahl Board consists of members from shareholders Wendel (5), Clariant (1), BASF (1), Stahl (2)and external (1). The Stahl Management team consists of the CEO, the CFO, director of procurement,
director of innovation, director of marketing and business unit leaders. This team meets monthly anddetermines the company's strategy implementation. A wider executive team, which includes regional
general managers from Europe, Asia, India, the United States and Latin America, as well as thecommunications and sustainabilty directors, meets on a quarterly basis. This team reviews performanceand decides on strategy and tactics for the coming quarter. Decisions on sustainability are governedby the sustainability director/team and are made based on constant communication with the
management team and staff throughout the organization.

102-18102-16

A description of the organization’s values, principles, standards, and norms of behavior.

External values: Stahl is committed to the highest standards of social and environmental responsibility andethical conduct as described in the Code of Conduct. Stahl requires its business partners to comply withthe same or at least equal ethical standards and operate in accordance with the principles in this Codeof Conduct (‘Code’) and in full compliance with all applicable laws and regulations. Stahl expects
suppliers and/or business partners to use a proactive approach in establishing and maintaining thestandards set forth in the Code and conduct themselves with responsibility and integrity. The business
partner states to agree to the conditions in the Code and acknowledges that any deviations found canhave an adverse effect on the relation with Stahl including an immediate discontinuation of thebusiness relationship. The business partner commits, in signing the Code, to all applicable legislation
and regulations. The Code therefore forms an integral part of the agreement between the business
partner and Stahl. To verify compliance with the Code, Stahl shall consult with the business partnerfrom time to time. Stahl has the right to speak and to train employees of the business partner directlyin order to fully comply with the Code. If this is deemed appropriate, Stahl can request that an audit
can be conducted by a third party to be appointed by Stahl. The business partner states to fully
cooperate in this investigation. Stahl expects his business partner to comply with the UN Global
Compact Guiding Principles in the areas of human rights, labour, the environment and anti-corruption
and wishes to emphasize the following specific areas of interest.

Source of evidence

See page 17 of the Sustainability
Report 2017

2 Codes of Conduct (for Business Partners
and for Employees). See also Stahl
Compliance report.

Internal values: The Code of Conduct sets out Stahl general business principles that apply to all
employees and all its subsidiary companies. Integrity is essential in establishing and maintaining our
reputation and providing our quality services to our customers. Our objective is to preserve continuityof the company by maintaining a strong financial basis. This implies balancing long and short terminterests, with due care and respect for our customers, employees, shareholders and other business
relationships. Should employees have any concern about what conduct would be appropriate (as laid
down in our Whistle Blower policy), they should promptly raise that concern with the Compliance Officer.
Any concern so raised is addressed with discretion and respect.

38 Sustainability Report 201739

Appendix
Stahl Code of Conduct
Introduction

Ethical/Integrity

comply with all (supra) national environmental, healthnational legislation and regulations concerning labour

Stahl is committed to the highest standards of social

Laws and regulations

and safety legislation and regulations. The businessand labour conditions. In case employees are asked toand environmental responsibility and ethical conduct

The business partner operates in full compliance withpartner shall conduct his business processes in suchwork overtime, their extra work is compensated in line

as described in the Stahl Group S.A. Code of Conduct.

international, national and domestic laws and regulations

a manner that compliance is guaranteed.

with local legislation.

Stahl requires its business partners to comply with thethat are applicable to their business operations, andsame or at least equal ethical standards and operate in

obtain all necessary permits.

SocialChild and forced labour

Human Rights

The business partner shall respect all (supra) national

accordance with the principles in this Code of Conduct(‘Code’) and in full compliance with all applicable laws

Business integrity

The business partner shall conduct their activities in a

legislation and regulations applying to child labour in line

and regulations. Stahl expects suppliers and/or business

The business partner shall not engage in corruption,manner that respects human rights as set out in The

with Convention 138 (Minimum Age) and Convention 182

partners to use a proactive approach in establishing andextortion, embezzlement, or bribery to obtain an unfair or

United Nations Universal Declaration of Human Rights.

(Worst forms of Child Labour) of the International Labour

maintaining the standards set forth in this Code andimproper advantage. The business partner shall abide by

conduct themselves with responsibility and integrity.

all applicable anti-corruption laws and regulations of theDiscrimination

The business partner states to agree to the conditions incountries in which it operates including all applicable

The business partner shall unconditionally respect all

this Code and acknowledges that any deviations foundinternational anti-corruption conventions.

anti-discrimination conditions in (supra) national

Health and safety

legislation and regulations.

The business partner shall implement strict policies

can have an adverse effect on the relation with Stahl

Organisation. The business partner shall not use workthat is performed involuntarily under threat of penalty.

including an immediate discontinuation of the businessFree and fair competition

relationship.The business partner commits, in signing thisStahl will compete for business. The business partner

Modern Slavery

environment. At all levels, the business partner will play

Code, to all applicable legislation and regulations. This

also value free and fair competition throughout the world

Modern slavery, or any form of forced or compulsory labour,an active role in identifying and rectifying unsafe

Code therefore forms an integral part of the agreement

and comply with anti-trust and competition laws.

is a violation of human rights. The business partner shall(health) situations.

between the business partner and Stahl. To verify

with the aim of creating an incident and injury free work

work to ensure high labour rights standards. The businesscompliance with the Code, Stahl shall consult with theConfidentiality

partner shall not participate in the trafficking, recruitment,

business partner from time to time. Stahl has the rightThe business partner protect all confidential information

or receipt of any persons, by means of threat or abuse of

to speak and to train employees of the business partner

provided by Stahl and its respective business partners.

power. The business partner allows employees to resign

directly in order to fully comply with the Code. If this isfrom their position at any time. The business partner shalldeemed appropriate, Stahl can request that an audit canProtection of Intellectual Property

behave ethically and honestly with all its partners, and is

be conducted by a third party to be appointed by Stahl.

The business partner shall respect intellectual property

committed to ensuring that modern slavery does not occur

The business partner states to fully cooperate in thisrights and safeguard customer information. The businesselsewhere and strives only to do business withinvestigation. Stahl expects his business partner topartner shall manage technology and know-how in aorganizations who uphold similar principles.

comply with the UN Global Compact Guiding Principles inmanner that protects intellectual property rights.

the areas of human rights, labour, the environment andWorking hours

anti-corruption and wishes to emphasize the following

Environmental

The business partner shall not force their employees tospecific areas of interest.

The business partner shall respect the environment andwork excessive hours and shall comply with all (supra)

40 Sustainability Report 201741

UN Global Compact Letter of Continued Support

Statement of Continued Support
Waalwijk, March 2018

To our stakeholders,
I am pleased to confirm that Stahl Holdings BV reaffirms its support of the Ten Principles of
the United Nations Global Compact in the areas of Human rights, Labour, Environment andAnti-Corruption.
In this annual Communication of Progress, we describe our actions to continually improve
the integration of the Global Compact and its principles into our business strategy, culture
and daily operations. We also commit to share this information with our stakeholders using
our primary channels of communication.
Sincerely yours,

H.J.J. van Beijeren
Chief Executive Officer
Stahl Holdings BV

42 Sustainability Report 201743

FOL196/032018

Sustainability Team

Michael Costello

Katharina Albert-Klein

Ingrid Weijer

michael.costello@stahl.com

katharina.albert@stahl.com

ingrid.weijer@stahl.com

The information provided herein is not intended to form part of any offer or contract for the sale. Pictures, descriptions andstatements are only artistic impressions and they are not representations of facts. Stahl does not warrant the accuracy andcorrectness of the information and will not be responsible in any way for any inaccuracy or omission of information herein, as
well as for changes in colors and printing errors, or for any loss suffered by any person as a result of relying on the information.