Corporate
Responsibility& Sustainability
2018 Report

Stahl GroupContents
5This report has been prepared, whenever possible,
in accordance with the GRI Standards: Core option.

Did you feel the cover?
The cover of this report is coated with Stahl EVO®

Message fromthe CEO

6

About Stahl

8

Strategy &Implementation

14

Highlights 201810

Environmental andSocial Governance(ESG) landscape

12

Materiality matrix

16

Restricted
substances

18

Safety, Healthand Environment

20

Climate change Greenhouse Gas(GHG) emissions

22

Water, Energy, Waste

26

Driving change

28

Low impact
products

30

Our people

34

Public-private
partnerships

36

Stahl Campus®

38

Financialperformance

39

Management team

40

Global Reporting
Initiative

46

Appendix:
Code of Conduct

48

Appendix:
Letter UN Global
Compact

50

Appendix:
Stahl Compliance
Report 2018

Soft touch technology, crosslinked with a carbodiimide
crosslinker. The use of Stahl’s polycarbodiimide
crosslinkers in coatings is growing, especially for
aqueous systems. These patented crosslinkers
are an excellent way to boost the performanceof environmentally-friendly coatings. We expect
the increasing use of these crosslinkers to continue
as more customers switch to water-based coatingsand lower impact chemicals.

2 Corporate Responsibility & Sustainability - 2018 Report3Message from the CEO
I am very proud to present the 2018 Stahl Corporate
Responsibility & Sustainability Report which provides an
overview of our activities over the past twelve months.
There are some new features in the report this year, likethe Materiality Matrix, which plots the topics that matterfor the company, and a chapter on the Environmental
and Social Governance (ESG) landscape, which provides
an update for our stakeholders on the legislation and“The investment in solar energy at our
Stahl Brasil site is a concrete example
of our long term commitment to the2015 Paris Climate Agreement targets”

compliance initiatives that were relevant in 2018.
Stahl’s vision is to achieve a more transparent industry
that continuously reduces its environmental footprint.
In 2018 we made further progress towards this goal,
including the seamless integration of the BASF Leather
Chemicals division and another drop in CO2 emissions at

While we are aware of the challenges that ourour manufacturing sites. Indeed, the investment in solar

industry faces, we continue to view them as aenergy at our Stahl Brasil site is a concrete example ofsignificant opportunity for Stahl, to take action

our long term commitment to the 2015 Paris Climate

and create a better future.

Agreement targets. Stahl has intensified its contribution
to the 17 UN Sustainable Development goals and theBest regards,

Global Reporting Initiative (GRI) table is published once
again (on page 40).
Stahl is driving initiatives that are having a positive effecton the supply chain and on the environment.

Huub van Beijeren
CEO

4 Corporate Responsibility & Sustainability - 2018 Report5About Stahl
Stahl is the world leader in leather chemicals and high-performance coatings. Our products provide functionality, durability
and comfort to many different materials used in everyday life. Although they may not realize it, millions of people aroundthe world touch and use Stahl products every day. As a manufacturer of chemical products, Stahl considers health andsafety to be its primary responsibility and through its culture of continuous improvement and focus on sustainability,
Stahl is also driving change by promoting transparency and reducing the environmental footprint of the industry.

Human capital

Responsible operations

Research & development

WORKFORCE

2 00

100
100

people working
on innovations
every dayR&D
11 Labs

38

Energy & CO2 emissions

13

Technical Centers

Manufacturing Sites

50%

of energy supplied by on-site
solar panels at Stahl Brasil-2.5%*
energy consumption
further reduced*per ton produced, compared to 201724%

Number ofnationalities

61

27

48% EMEA 20% Asia-Pacific 17% India-Pakistan 16% Americas

43
YEARS

780

people trained at
Stahl Campus®

6 Corporate Responsibility & Sustainability - 2018 Report

Performance Coatings

Architectural & Interior Design | Industrial Applications |Leisure & Lifestyle | Home Furnishing€ 867
35 Salesoffices

60% 1200

Polymers

millionsales revenue in 2018-10%

Status 2018:

ON TARGET

by 2020)

Suzhou (China
L’Hospitalet
de Llobregat(Spain)Centers of
Excellence

Automotive | Footwear, Apparel & Accessories |CO2emission
goal:

NEW
2018

9

Products & markets

Leather Chemicals

COUNTRIES

Average
age

Focus: technologies andprocesses that improve
environmental impactof our coating solutions
are water-based

S XHUNDRED
technical experts~90%of global production volume
comes from ISO 14001/9001certified sites

100%

employees trainedon ethical practises

600

76%

Global suppliers from42

green energy
at European
manufacturing
sites

Trusted partnerships

NGOs, Academic
cooperation:

Proactive industry
involvement:

UN Global Compact | UNIDO, Solidaridad |Global universities | ZDHC

ZDHC

GADSL

bluesign®

LWG

countries

7

Strategy &Implementation

Corporate Responsibility & Sustainability (CR&S) Strategy

Organization & Governance

Stahl’s corporate goal is to achieve a transparent supply

At the corporate level, CR&S is part of Stahl’s Executive

chain that continuously reduces its environmental footprint.

Management Team, which meets quarterly and sets theIn particular the focus is on the supply chain into which

company strategy. The Sustainability team meets regularly

Stahl sells its products and services. The company’swith product managers, researchers, product stewardshipstrategy to achieve this goal is to initiate activities thatand operations staff to monitor the implementation of its

promote transparency and to introduce low-impact

strategy and to discuss progress on new initiatives related

technologies designed to maximize environmental

to innovation, portfolio management and environmental

protection and stewardship. Stahl’s influential position as

performance. The Sustainability team also supports

a provider of products and services to manufacturers ofcommercial activities initiated by customers that are

different materials used in the automotive, apparel, homerelated to sustainability. A summary report is sent to thefurnishing, footwear, garment and other related industries,

Stahl board each month. KPIs related to safety, healthis a key factor in the implementation of this strategy.

and environment are also measured and reported byregional operational staff at the Stahl manufacturing

Stahl also recognizes that sustainability represents asites around the world.

significant opportunity, to gain competitive advantage andto drive operational excellence throughout the company.

Stahl is driving initiatives that are having a positive effect on the
supply chain and on the environment. While we are aware of the

Implementation: the Stahl Sustainability Standard

challenges that our industry faces, we continue to view them

To achieve our sustainability goal, we have identified

as a significant opportunity for Stahl, to take action and create

five focus areas:a better future.

Click to watch the video that

Employees and thecommunities around us

explains our 5 Focus-Areas.

Stahl’s membership in the UN Global Compact and its alignment
to the 17 UN Sustainable Development Goals is a clear indicationof its commitment to a more sustainable future. To demonstrate
its progress, the Stahl Corporate Responsibility & Sustainability
Report is submitted each year to the UN Global Compact.

People& Society

The products andservices that weoffer to ourcustomers

Raw
Materials

Innovative
Solutions

Suppliers and the
products and services
they provide

The Stahl
Sustainability
Standard
Responsible
Operations

Cooperation with third
parties throughout the
supply chain

8 Corporate Responsibility & Sustainability - 2018 Report

TrustedPartnerships

All activities associated with
our laboratories, offices andmanufacturing sites

9UK Modern
Slavery Act
OECD

Environmental andSocial Governance(ESG) landscapeParis Climate
Agreement
G.A.D.S.L.
UN Universal
Declaration of
Human rights

Client specificpolicies andinitiatives
Internationallaws andregulations

Local laws,
regulations
and permits
Duty of Care

The illustration gives an insight into the global

Sapin II

governance landscape with respect to Corporate

T.S.C.A.

Responsibility and Sustainability that impacts
our company as well as our stakeholders.
This overview does not include the laws
and regulations related to finance, HR, IT,
privacy, etc.

E.C.H.A.
Directive 2014/95/EU
disclosure of
non-financial anddiversity information
Chemicallegislation
Our shareholders

Our stakeholders

Our world

10 Corporate Responsibility & Sustainability - 2018 Report11How to read the matrix
The materiality matrix highlights 18 of the 33 material topics deemed critical by Stahl and its stakeholders.
The most important, shown in the upper right corner of the matrix, is occupational health & safety. Followed byenvironmental topics like waste, energy, emissions, water & effluents and materials. In this report, we show
the materiality matrix icons per relevant chapter.

Economic
topicsMateriality
matrixEnvironmental
topicsSocialtopicsHigh

Occupational
health and safety

Effluent
and waste

EnergyTopics that matter

matrix has been developed, as per the guidelines of the Global Reporting
Initiative (GRI). The materiality matrix methodology ensures that Stahladdresses material topics, ie: the ones that matter to the company andits stakeholders. This approach also ensures that the full scope of the
impact of the company's activities are taken into account, from its own

Water andeffluent
Materials
Training andeducation
Diversity andequal opportunity

Medium(CSR) topics that are critical to Stahl and its stakeholders, a materiality

Emissions

Importance to stakeholders

In order to report on Sustainability and Corporate Social Responsibility

Other
topicsCustomer healthand safety

Environmental
compliance

Employment
Economic
performance

Local
communities

operations to its interactions with suppliers, customers, consumers,
communities, shareholders, government and NGOs.

Socioeconomics
compliance
Anti-corruption
Non-discrimination
Procurement
practices

Other
topicsLow

Marketpresence

Low

MediumHigh

Impact on Stahl Group

12 Corporate Responsibility & Sustainability - 2018 Report13Highlights 2018
CO2 target
Stahl is on course to achieve its target of 10%
reduction in CO2 emissions by 2020 (vs the 2015baseline). Stahl’s improvements in CO2 emissions
have been driven by sourcing green energy and byinvestment into long term efficiencies at its
manufacturing sites.

Third ReVeal eventfor transparency

Renewable energy

With the third event ‘The future of the past’, Stahl,

manufacturing site in Portão, Brasil. This

Together with Dutch NGOs Solidaridad and CSR

investment in solar energy represents a significant

Netherlands, the Green Tanning Initiative wasdrop in expected CO2 emissions for the site in 2019,launched in Ethiopia in 2018. The program is aimed

supplying 50% of the electricity consumed at thatat promoting environmentally responsible leather

facility. During 2019 the company will monitor the

making and creating sustainable employment insuccess of this project and make plans to introduce

the Ethiopian leather industry. This initiative issolar energy at its other manufacturing sites.

cosponsored by the European Union.

together with industry partners throughout the
supply chain, deepened the understanding of the
traditions and technology that Naples offers in thefield of leather. Stahl started to organize ReVeal
events in 2016 to promote transparency andCO2emission
goal:

-10%
by 2020

Status 2018: ON TARGET

traceability in the leather supply chain.

Advocating Life Cycle
Assessment (LCA)

Center of Excellence for Performance
Coatings, Suzhou, China

LCA is a methodology that measures the impact of any

The new Center of Excellence, opened in November 2018,

product on the environment during the course of its life.

focuses on innovative performance coating solutions with

It can provide quantitative data in a format that permits

minimum environmental impact. The building itself is also

comparisons to be made. Stahl advocates using LCA

responsibly designed, with solar panels and illumination,

methodology when possible and promoted its use at

motion-detective lighting systems, plants on the roof, Low-VOC

several industry conferences and webinars during 2018.

partition boards and sustainable construction materials.

Sustainability seminars

Strong sales Stahl EVO®
and Stahl Neo

Phasing out restricted
substances by 2020

transparency into action with its sustainability

Strong sales of Stahl EVO® coatings and Stahl Neo

Stahl made a commitment to the Zeroseminars, held in four different locations in India.

finishes for leather were important commercial

Discharge of Hazardous Chemicals (ZDHC

With these seminars Stahl aimed to familiarize local

highlights in 2018. This growth is linked to the fact

foundation) to eliminate the substances

professionals with its sustainability philosophy forthat these portfolios are compliant with the MRSL

listed on its MRSL by 2020. In 2018 thethe industry and practical solutions for improving

launched by ZDHC in 2015, whose goal is to eliminate

company made further progress in thisenvironmental stewardship. Each of the four

hazardous substances from the garment anddirection by uploading over 1,000 compliant

seminars attracted an average of 350 people.

footwear supply chains by 2020.

products to the ZDHC portal, called Gateway.

In 2018 Stahl resumed its commitment to putting

14 Corporate Responsibility & Sustainability - 2018 Report

Solar panels were installed at the Stahl

Public-private
partnership in Ethiopia

15

Raw materials

Restricted
substances

Member of ZDHC

Stahl MRSL

Stahl became a Value Chain Affiliate in October 2016

In addition to adhering to the ZDHC Manufacturingand has since officially joined the foundation in its

Restricted Substances List (MRSL), Stahl has its own

commitment to help lead the clothing industry towards

MRSL, which ensures that listed substances cannot

Zero Discharge of Hazardous Chemicals (ZDHC) by 2020.

be used in the development of any new products. ThisA positive list of Stahl’s ZDHC compliant products (morelist is a combination of substances listed on recognizedthan 1,000) are publicly available on the ZDHC

industry MRSLs and those deemed undesirable by Stahl

Gateway portal.

for the future. This has implications for our suppliers
and they are informed continuously about our policy
via updated lists of potentially restricted materials.
MRSL Compliance Checker

Phasing out restricted substances by 2020
Stahl made a commitment to the Zero Discharge of Hazardous Chemicals (ZDHC
foundation) to eliminate the substances listed on its Manufacturing Restricted
Substances List by 2020. In 2018 the company made further progress in thisbluesign® system partner

Stahl works closely with consumer brands in the supply

As a bluesign® system partner, Stahl focusses on replacing

chain to anticipate restrictions on chemical substances

restricted substances in its products with alternatives

and act ahead of time. This means that our suppliers arethat are compliant to the bluesign® substance list. Stahl

made aware of the restrictions on substances contained inachieved the bluesign system partner status in 2017.

the materials they provide. To give us a clear indication of®

whether restricted substances are present or within thelimits of the MRSL, we developed the Compliance Checker.

direction by uploading over 1,000 compliant products to the ZDHC portal,
called Gateway.
A restricted substance is an unwanted substance (chemical element and its
compounds) of which its use is limited (maximum threshold) or the intentionaluse in production is prohibited, by law or by brands and companies (voluntarily).

Addressing the following materiality matrix focus areas
Occupational healthand safety

Customer healthand safety

Environmental
compliance

Materials

Addressing the United Nations Sustainable Development Goals

16 Corporate Responsibility & Sustainability - 2018 Report17Responsible operations

Safety, Health and Environment (SHE) Policy

provision of effective controls. Since 2017 Stahl has

The key principles of the Stahl SHE policy are:a Global SHE and Process Safety Manager in charge� A strong safety culture involving the whole organizationof implementing the SHE policy and R20 program.

� Safety, health and environment as the top priority

This position implements the fulfilment of Stahl’s SHE� Safety is more important than a short term result

policy, including the changes of behavior and training� Implementing best industrial practices in addition

required to support the highest possible standards of SHE.

to compliance to all legal requirements

Safety, Healthand Environment� Knowledge as the basis of all decisions. Stahl will

Although the responsibility for safety and health lies withrequire that employees are trained on the necessary

everyone in the company, each Stahl site has a dedicatedknowledge and skills to carry out their duties and

SHE Manager who ensures that the regional organization

make decisions ensuring safety

is implementing the SHE policy. The SHE manager reports
to the Local Site Manager and has the direct support of theRoad to Zero (R20) program

Global SHE & Process Safety Manager.

Stahl has defined a Zero Tolerance Policy for unsafe
behavior to ensure that people do not get injured at work.

Safety Key Performance Indicators
To ensure continued improvement in the evaluation andStahl considers the health and safety of its employees to be
its primary responsibility. Stahl is a role model for workplace

Stahl’s SHE organization

prevention of risks, Stahl tracks indicators on safety.

All local managers and general managers are responsible

Each month we report our injuries, incidents, audits,for implementing the SHE policy and principles in areas

trainings, engineering projects and other prevention

under their control. This responsibility includes systems

methods internally and to our shareholders.

for the recognition of hazards, assessment of risks andsafety, with a low accident frequency rate. Stahl believes
that the protection of health and safety of people and thepreservation of the environment will be always considered
its highest priority. This mindset (and policy) is rooted in

Number of reported injuries and incidents

the employee culture. All its activities, policies, monitoring,
reporting and trainings are aimed at creating a true safety
culture that results in zero injuries and accidents.

2018
Injuries

Incidents

Addressing the following materiality matrix focus areas
Occupational healthand safety

Training andeducation
Other

Addressing the United Nations Sustainable Development Goals

2017

First Aid

16

8

Minor injuries

910

Serious injuries

2

4

Injuries with lost time (LTI/LTA)

5

6

Occupational Health20Other reportable incidents

2

1

Incidents involving forklift truck (FLT)

6

16

Incidents involving a vehicle

19

8Dangerous Occurrences & Near Misses

49

64

Environmental Incidents (e.g. spills)

60

51

Contractors | Reportable (LTA)

3

1

Contractors | Serious

1

2

Complaints
FTE’s (full time equivalent)

6

2

1,972

2,049

These KPIs have been audited and verified by Ernst & Young.

18 Corporate Responsibility & Sustainability - 2018 Report19Reducing CO2 emissions
The below table shows the different sources of CO2 emissions calculated by Stahl, as per the GreenHouse Gas (GHG) protocol.

Responsible operations

Climate Change Greenhouse Gas(GHG) emissions

Purchased goods
and services

Scope 2

Scope 1

Indirect

DirectScope 3

Scope 3

Indirect

Indirect

Leased assets

Purchased electricity,
steam, heating &cooling for own use

Company
facilities

EmployeecommutingTransportationand distribution

Capital goods
Business travel

Fuel and energy
related activities
Transportationand distribution

Stahl is committed to the goals outlined in the 2015 Paris Climate Agreement.

Processing ofsold productsCompany
vehiclesFranchises

Use of soldproducts

Waste generated
in operations

Upstream activites

Investments

Reporting company

End-of-life
treatment ofsold products

Leased assets

Downstream activites

In 2015 the company set an internal target to reduce scope 1 and 2 CO2emissions by 10% by 2020, and it expects to reach this goal ahead of time.
Stahl’s improvements in CO2 emissions are driven by sourcing green energy
at its European sites and by investments designed to realize long term

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

efficiencies at its manufacturing sites.

Scope 2: Electricity Indirect Emission Sources (metric tons CO2-eq.)**Scope 3: Estimation of the other Indirect Emission Sources(CO2-eq. x 1 million)***

2018

2017

2016

2015

17,114

16,915

16,924

15,569

7,119

8,984

18,59517,759560-590560-590500-530-

These KPIs have been audited and verified by Ernst & Young.

* Scope 1: Direct GHG Emissions are those that occur from sources that are owned or operationally controlled by the company: company ownedor 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 form of electricity, steam, heat and cooling)from the grid or district heating or cooling systems.

Addressing the following materiality matrix focus areas
Emissions

EnergyEffluents
and waste*** Scope 3: Other Indirect Emission Sources are calculated since 2016 following the GreenHouse Gas protocol.

Environmental
compliance

CO2 intensity
Our CO2 intensity (the amount of CO2 emission per tons of product that we produce) improved in 2018, compared

Addressing the United Nations Sustainable Development Goals

to previous years.

2018

2017

2016

2015

CO2 emission Scope 1+2 (in tons)

24,23225,89835,51933,328

Total production volume (in tons)

228,440

238,590

207,923

195,646

0.106

0.109

0.171

0.170

CO2 intensity1CO2 intensity / CO2 emissions per production volume = CO2 per tons produced = CO2 scope 1 + scope 2 / production volume

1

20 Corporate Responsibility & Sustainability - 2018 Report21

Water: effluent and water-reducing technologies
Water is a strategic focus for Stahl and the company is dedicating an increasing amount of resources into research
focussed on water-based products, water effluent quality and water pollution. Aside from its continuous investment inon-site treatment of wastewater generated at Stahl sites, the company has introduced has introduced effluent-reducing
technologies like Stahl Neo, Stahl EVO®, Proviera® - Probiotics for Leather™, Catalix® as well as water-reducing technologies

Responsible operations

like Stahl EasyWhite Tan™. The public-private partnerships in India and Ethiopia are also driven by the need to reduce waterpollution in leather manufacturing clusters and Stahl is dedicating significant resources to service these projects with its

Water, Energy, Waste

best global technicians and available know-how.
Energy: from green to self-sufficiency
Using energy more efficiently and opting for renewable energy sources is essential for combating climate change
and for lowering our overall environmental footprint. Since 2017 Stahl purchases renewable electricity for all its
European manufacturing sites (34% of global energy consumption). Solar panels were installed in 2018 at Stahl’s
manufacturing site in Portão, Brazil with a capacity of 840 kW. This investment into solar power represents a significant
drop in CO2 emissions for the site in 2019, and will supply approximately 50% of the electricity consumed at that facility.

Stahl reduces, improves and monitors water consumption, energy andDuring 2019 the company will monitor the success of this project and make plans to introduce solar energy at its

waste at its manufacturing sites on a monthly basis. Stahl is continuously

other manufacturing sites.

upgrading its production sites and laboratory facilities in order to achieveenergy, waste and water efficiencies that lead to a improved

Energy sources Stahlenvironmental footprint.
2.4%
2.8%

Renewable briquettes
10.5%

9.3%

Renewable electricity - purchased
Renewable electricity - self-generated
16.3%

23.4%

Gas
Furnace Oil
Grey electricity

35%
0.07%

High Speed Diesel
Steam

Addressing the United Nations Sustainable Development Goals
Water andeffluents

EnergyEffluents
and waste

Addressing the United Nations Sustainable Development Goals

Environmental
compliance
Waste: circular economy
Disposal of waste is considered a last resort for Stahl and it has begun to regard waste as a by-product, with potential
value for other uses. The company is currently installing water treatment facilities at those remaining manufacturing sitesthat do not have them, effectively reducing the amount of wastewater (classified as hazardous waste) sent to third parties
for treatment. Stahl globally tracks and reports on the many different types of waste that it generates (e.g. slow moving
stock waste from our laboratories, packaging, cleaning water, glass, paper, plastic) and aims to reduce, reuse, recycle,
restore and prolong where possible. Several initiatives designed to eliminate the use of single-use plastics have begun
at Stahl locations around the world, and this will continue until all possibilities have been explored and acted upon.

22 Corporate Responsibility & Sustainability - 2018 Report23

Water

Waste

Stahl consumed less water in 2018 due to more efficient consumption at its manufacturing sites.

Disposal of waste is considered a last resort for Stahl and it has begun to regard waste as a by-product,with potential value for other uses.

2018

2017

2016

2015

Water consumption (m³)

344,922370,855

355,041

325,864

Other water use (m³)*

456,820561,788

506,056

491,021

Total Water Used (m³)

801,742932,643

861,097

811,093

Total production volume
Water intensity**

228,440

238,590

207,923

195,646

1.510

1.554

1.708

1.666

These KPIs have been audited and verified by Ernst & Young.

Hazardous Waste (tonnes)

2018

2017

2016

2015

10,962

10,538

9,748

6,570

Non-Hazardous Waste (tonnes)

1,807

1,584

1,476

1,276

Total Waste (tonnes)

12,76912,122

11,224

7,846

Total production volume228,440

238,590

207,923

195,646

Waste intensity**

0.056

0.051

0.054

0.040

Waste Water send to external treatment (tonnes)*

15,62018,12415,03815,815

These KPIs have been audited and verified by Ernst & Young.
* Other Water use = Water in Palazzolo, in particular ground well water, is used for the processes but also as cooling water (for this reason we havehigh volumes of withdrawn water). This water (cooling water) is kept completely separated from chemical products and discharged into the river
Seveso at controlled temperature.
** Water intensity is the amount of water used per tons produced = Water consumption (m3) / Total production volume (excluding Other water use).

* This indicator only represents the Stahl sites in Waalwijk and Toluca. Waalwijk = cleaning water of tanks. Toluca = waste water that is collectedfrom the production plant (cleaning of tanks, reactors and equipment in general) and also services (bathrooms and showers). The other 9 sites
have an on-site waste water treatment installation.
** Waste intensity is Total waste (tonnes) / Total production volume

EnergyEnergy is reported as the total energy consumed in TJ

sources were included in Stahl’s reporting (briquettes,

and per production volume (ie: energy intensity). Therehigh speed diesel and renewable vs traditional/grey

are many energy efficiency projects underway at Stahl’s

electricity). And we introduced a distinction between

manufacturing sites around the world. In 2018 more energy

renewable vs traditional/grey electricity sourcing.

50%of energy supplied by on-site
solar panels at Stahl Brasil
2018

2017

2016

2015

Energy (TJ)

380

3901

319

305

Share of Renewable energy*

34%

34%

-

-

Total production volume228,440

238,590

207,923

195,646

Energy intensity (TJ)*

0.001660.001630.001530.00156-2.5%*
energy consumption
further reduced*per ton produced, compared to 2017100%
green energy at European
manufacturing sites

These KPIs have been audited and verified by Ernst & Young.

1

Energy intensity is (Energy consumption (TJ) per tons produced) = Energy (TJ) / Total production volume* Energy consumption is based on Lower Heat Value (LHV). 2017 energy in TJ now also includes Briquettes consumption by Kanchipuram.
This category was added in 2018. To show the trend in 2018 compared to 2017, we added this.

24 Corporate Responsibility & Sustainability - 2018 Report25

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 ofhazardous chemicals by 2020.

bluesign® system partner

Trusted partnerships

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.

Driving change

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. Stahl is working on a wide variety of projects

The Leather Working Grouplinked to transparency and sustainability with industry associations,

The objective of this multistakeholder group is to develop and maintain an audit protocol thatassesses the environmental compliance of tanners and to promote sustainable practices inuniversities and other strategic partners.

the leather processing industry.

Cooperation with universities
Stahl cooperates with over thirty different universities and colleges around the world, on a wide
range of projects, e.g. Technical University of Wageningen and University of Northampton.

TEGEWATEGEWA is a group of chemical manufacturers supplying the leather, textile and paperindustries. Stahl is an active participant in the group, especially on topics related tochemicals management and the safety and health of workers who may be handlingchemicals in the garment and footwear supply chain.

BLC
BLC is the leading leather testing and technology center dedicated to leather, footwear,
chemical and leather product testing, to ensure fast and accurate solutions to leather

Addressing the following materiality matrix focus areas

related problems.

Localcommunities

Training andeducation

EnergyWater andeffluents

Effluents
and waste

Environmental
compliance

Materials

Emissions
Cooperation with HP
The joint technology platform created by Stahl and HP offers creative freedom andunlimited aesthetic options in durable printing. The water-based HP Latex Inks preserve
the flexibility of material, while Stahl EVO® coating solutions ensure the highest surface

Addressing the United Nations Sustainable Development Goals

performance is achieved.

Joint R&D with Piñatex®
In 2018 Stahl and Ananas Anam announced their intentions to cooperate to enhance theperformance and sustainability of Piñatex®, a natural textile made from pineapple leaf fibre.
This joint R&D will represent a breakthrough in the sustainable, innovative new materials
that are at the forefront of the needs of the 21st century.

26 Corporate Responsibility & Sustainability - 2018 Report27Life Cycle Assessment

Stahl Neo and Stahl EVO®
Strong sales of the Stahl EVO products for coatedLife Cycle Assessment (LCA) emerged in 2018 as a newmaterials and the Stahl Neo leather chemicals portfolio

element of innovation for Stahl. LCA is a methodology thatwere important commercial highlights in 2018. This growthmeasures the impact of any product on the environment

is linked to the fact that these products are compliant withduring the course of its life. LCA defined nine impact

the Manufactured Restricted Substance List (MRSL)

categories (see below). It can provide quantitative data

launched by the ZDHC Foundation (Zero Discharge ofin a format that permits comparisons to be made. Stahl

Hazardous Chemicals) in 2015, whose goal is to eliminate

has identified products and processes where the impact

hazardous substances from the garment and footwear

on the environment can be calculated, and reported, using

supply chains, by 2020.

established methodology. Stahl believes that LCA will be®

Innovative solutions

Low impact products

an important value-added service for its customers in theProviera - Probiotics for Leather™
®

supply chain in the future.

Significant sales growth was a feature of the Proviera® Probiotics for Leather™ product portfolio in 2018.
These products are natural products manufactured from

With 11 R&D centers around the world, employing over 100 technical staff,

a fermentation process, and are used in the first step

Stahl’s product research is aimed at providing high performance solutionsof the leather tanning process (known as beamhouse).

that reduce environmental impact. Either by using renewable/bio-based

Proviera® - Probiotics for Leather™ contributes to theraw materials in our own products or by designing products free ofenhancement in the environmental footprint of theleather process by substituting synthetically produced

identified restricted substances, that improves the environmental

surfactants and reducing the pollution load on water

footprint of our customers. The full integration, in 2018, of the BASF

effluent sent for treatment. In 2018, Proviera® - Probiotics

Leather Chemicals business product portfolio has complemented thisinnovation drive towards low-impact technology.

for Leather™ received the NSF (National Science
Foundation) registration for non-food compounds,
which allows to food processors to prove that theirproducts are clean labelled.
New bio-based polyurethane materials
The policy of promoting natural and renewable resources
as raw materials, has driven water-based polyurethane
research activities significantly in 2018. As a result, newbio-based polyurethane materials are being preparedfor commercial launch in 2019, for promotion in the
Performance Coatings, Leather Chemicals andPolymers businesses.

Joint R&D with Piñatex®
In 2018 Stahl and Ananas Anam announced their intentions

Addressing the following materiality matrix focus areas
Environmental
compliance
Water andeffluents

EmissionsEffluents
and waste

EnergyMaterials

R&D focus on improving environmental footprint

to cooperate to enhance the performance and sustainability

Globally 50% of Stahl’s central R&D resources areof Piñatex®, a natural textile made from pineapple leaf

focused on projects specifically aimed at improving

fibre. This joint R&D will represent a breakthrough in thethe environmental footprint of our products and thatsustainable, innovative new materials that are at theof our clients.

forefront of the needs of the 21st century.

Economic
performance

Addressing the United Nations Sustainable Development Goals

28 Corporate Responsibility & Sustainability - 2018 Report29People & Society
Human Capital

Our people

Stahl is an organization centralized around customers

inclusion principles are also embedded within the coreand holds customers at the core of its commercial andleadership & management training programs to encourage

entrepreneurial culture. New ideas and creativity are

managers to demonstrate these principles as part of their

expected, learning is promoted, product, process andleadership behavior. In 2018 Stahl published its Diversity

administrative innovations are championed. Continuous

and Inclusion Policy and launched an e-learning trainingchange is viewed as a conveyor of opportunities.

module focused on Workplace Diversity and Inclusion.

The Stahl HR Team applies the concept that a new job

Training

Our workforce is the foundation of our success. We employ 2,000

is like a new journey for an employee and considering

SHE (Safety, Health and Environment) training is Stahl’s

people with 61 nationalities, in 27 countries at 13 manufacturing

the world around us is changing at fast pace, increasingly

priority, given the nature of its business in chemicals.

sites, 11 R&D centers and 38 technical centers. We encourage

unpredictable, impossible to analyze systematically andEvery new employee receives updated SHE training andbeyond accurate interpretation, the main purpose in the

instructions in line with their position. This is followed bycoming years will be to offer to the employee a great

more specific job-related training to ensure the best use

experience in Stahl. HR is responsible for ensuring thatof the information, resources, products and capabilities

the company has the “right person” in the “right place”

at their disposal. In the case of Stahl commercial staff,

at the “right time” for today and tomorrow and support

there is a strong emphasis on training designed to provide

Stahl in creating responsible partnerships and to be thepractical and innovative technical solutions for customers.

leader in its market.

In 2018 the company also introduced e-learning, totrust, honesty, personal growth, innovation, creativity andteamwork among our workforce.

educate staff on critical social and human rights topics.
Diversity & inclusion: 61 nationalities

1,200 employees (more than 50% of the total workforce)

Stahl is committed to embed equality, diversity andreceived this training in 2018. The e-learnings included

inclusion across the organization. Stahl employs overmodules on bribery, corruption, modern slavery, workplace

60 different nationalities around the world. Consistent withdiversity & inclusion, GDPR (data privacy) training and IT

its strategy of growing our leadership talent, diversity andsecurity awareness.

Addressing the following materiality matrix focus areas
Diversity andequal opportunity

Training andeducation

Employment

Non-discrimination

Addressing the United Nations Sustainable Development Goals

30 Corporate Responsibility & Sustainability - 2018 Report31Workforce (FTE) per country

Human capital

WORKFORCE

2 00
24%

76%

Number ofnationalities

61

600

S XHUNDRED
technical experts

UK (3) Netherlands (243)Germany (195)France (43)Austria (1)Switzerland (1)USA (53)

Spain (245)

Italy (187)38

China (248)

Turkey (30)South
Korea (3)Pakistan (42)Mexico (134)
Bangladesh& India (279)

Taiwan (4)Thailand (13)Vietnam (5)Colombia (11)Ethiopia (4)Singapore (98)Brazil (108)Uruguay (3)Argentina (4)Indonesia (14)Manufacturing Sites

Japan (5)Average
age

43
YEARS

780

people trained at
Stahl Campus®

27
COUNTRIES

48% EMEA
20% Asia-Pacific
17% India-Pakistan
16% Americas

R&D
11 Labs

9

100
100

peopleworking on
innovations
every day

NEW
2018

Centers of
Excellence

Sales

35 offices

32 Corporate Responsibility & Sustainability - 2018 Report

13

Technical Centers)Suzhou (China
L'Hospit ale t
de Llobregat(Spain)1200
employees trainedon ethical practises

33

People & Society

Public-private
partnerships

Why three Dutchorganizations partnered
up to contribute to
A CLEANER GANGES

13%� In 2018 Stahl launched a public-private partnership

families in the local community. Stahl’s contribution toin Ethiopia with local leather associations andthis project is €900,000, split between cash and in-kindinternational NGOs, including Solidaridad and CSR

contributions. Progress was made in 2018 on thisNetherlands (MVO) focused on water pollution

project, as the new center of excellence in Stahl Kanpur

in the tanning sector. Stahl’s contribution to thiswas built and a new Stahl Campus® manager was hired.

project is to provide training in good practices andAlso, as part of the project, new low-environmental

technologies that improve environmental footprint,

impact processing technologies were introduced at

via Stahl Campus® modules.

selected leather manufacturers.

� Stahl’s sustainability roadshows continued in 2018� UNIDO: The mission of the United Nations Industrial

and were held across 4 different cities in India.

Development Organization (UNIDO) is to promote

The seminars focused on housekeeping, chemicals

and accelerate inclusive and sustainable industrial

management and technology for reducing water

development (ISID) in developing countries andpollution during the leather manufacturing process.

economies in transition. UNIDO’s e-learning courses,

This years’ attendance was higher than average,

designed to promote good practices and responsible

with 350 people attending each seminar.

chemical management in leather tanneries, is fully� A public-private partnership between Stahl, Solidaridad,

supported by Stahl and we promote it in the areas

and PUM was launched in 2017, in Kanpur, India. The

where it is needed. Indeed Stahl’s recent sustainability

five-year project is focused on reducing water pollution

seminars in India were conducted in conjunction

and will contribute to the wellbeing of thousands ofwith UNIDO.

India accounts for 13% of theworld’s leather production with2,000 tanneries producing 2 billion
square feet of leather each year.
A small part of the pollution in
the Ganges river comes fromthe local leather industry

BILLIONSQUARE
FEET

2,000

Non-profit activities in emerging countries

Local communities

Training andeducation

Water andeffluents

Kanpur leather:
Finished Leather (45%)
Footwear (40%)
Saddlery (5%)
Others (10%)

THE areduction
GOAL in40%
pollution levels of water
HOW?
coming from the Kanpur
Leather Cluster

INNOVATE

Addressing the following materiality matrix focus areas

STATUS

Together with a number of Indianorganizations they started a 5-year
project in the Kanpur Leather Cluster

COOPERATE?

?

?

FACILITATE

Introduce moreenvironmentally-friendly
alternative technologies
and processes attanneries

A Center of Excellence to train
tannery staff on best practices
The implementation of a self-assessment
tool for the tannery sector

Addressing the United Nations Sustainable Development Goals

Cleaner
Ganges in

EDUCATE & TRAIN
Educate tanneries about the
impact of current production
methods and the water usage
reduction that can be achieved
with alternative technologies

34 Corporate Responsibility & Sustainability - 2018 Report

Organize trainings
on safety andchemicalmanagement

2022
35

People & Society

Stahl Campus®

Generation Z: Luxury Management Students

Post Graduate Certificate in Automotive Leather Finishing

40 students from the Global Luxury and Management

In 2018 Stahl Campus® completed the Post Graduate

Graduate Program of North Carolina State University

Certificate modules in León, Mexico - a six-weekparticipated in on-site Stahl Campus training about

course developed in collaboration with the University

sustainability across the supply chain. The trainingof Northampton (UoN), in which students receive anserved to inform the students about the principles ofofficial PG Certificate in automotive leather finishingsustainability and responsible practices applied during

upon completion. Stahl and the UoN will launch thethe manufacture of materials used in the luxury fashionsame course for a new set of students in 2019.

®

sector. As the students were born after 1995, they are

Promoting good practices and transparency

considered to be part of “Generation Z”, about which

New Stahl Campus® in Kanpur

much research has been done with regard to future

The expansion to India included the construction of abuying preferences and views on sustainability.

new Center of Excellence as part of the public-private

Stahl is committed to filling the talent gap observed in some of the markets that we serve

Stahl’s observations with this small group of Gen Z

partnership launched in 2017 by Stahl and Solidaridad.

by actively seeking ways to educate and train university students, NGOs, brands, suppliers,

students was used in several presentations given

The five-year program aims to reduce water pollution

at conferences during 2018, with a view to understanding

in the Uttar Pradesh leather manufacturing cluster.

how the footwear and fashion industry can align itself

The official opening of this new Stahl Campus®

with their behavior. In short, Stahl learned as much fromCenter of Excellence will take in 2019.

distributors, customers and other stakeholders in the supply chain. Stahl Campus® is the global
knowledge center established to achieve this. Started in 2014 in Waalwijk (Netherlands) andestablished in León (Mexico) in 2015 and Guangzhou (China) in 2016, Stahl Campus was®

them as they did from Stahl.

extended in 2018 to Kanpur (India). The goal is to promote good practices and transparency
throughout the supply chain by hosting trainees in Stahl’s state-of-the-art laboratories, and tostrengthen knowledge via theoretical and practical training modules. Stahl Campus® is a key
element of the company’s strategy of promoting transparency throughout the supply chain.
In 2018, 780 people attended Stahl Campus training courses around the world.
®

Foundation of Stahl Campus®
The Netherlands

Stahl Campus®
MexicoStahl Campus®
China

Stahl Campus®
The Netherlands

Stahl Campus®
India

October 2014

April 2016

November 2016

February 20172019

MexicoChina

The Netherlands

India

Juan Antonio Frias

Karin Lee

Peter van Dijk

Prasanna Maduri

Addressing the following materiality matrix focus areas
Training andeducation

Local communities
The Netherlands
Frans van den Heuvel

The Netherlands
Annelies Janssenvan Drunen

Addressing the United Nations Sustainable Development Goals

36 Corporate Responsibility & Sustainability - 2018 Report37Financial performance
Stahl’s achievements in sustainability are directly
linked to our financial performance.

Stahl Board 2018: Members are shareholders from Wendel (5), Clariant (1),
BASF (1), external (1) and two members from Stahl.

Sales 2018 vs. 2017 per business tube (reported in EUR ’000)

Stahl Management team: Consists of the CEO, CFO, Director of procurement,
Director of innovation, Director of marketing, communications & sustainability,

900,000
900,000

and business unit leaders from the Leather Chemicals and Performance
Coatings divisions. This team meets monthly and determines the company’s

700,000
700,000

strategy and its implementation.
Performance Coatings
Performance Coatings& Polymers& Polymers

500,000
500,000

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

300,000
300,000
00Management team

Leather Finishing
Leather Finishing

2018
2018

2017
2017

Executive team: Includes the Stahl Management team, regional generalmanagers, communications, sustainability, IT, legal & compliance, safety &health, marketing and selected product management functional leaders. This
team meets on a quarterly basis, reviewing performance and deciding on
strategy and tactics for the coming quarter.
Sustainability: Key decisions on sustainability are made by the Stahlmanagement team. Projects and ideas are initiated via constantSales 2018 vs. 2017 per region (reported in EUR ’000)

communication with employees and executed by the sustainability team.

900,000
900,000
South & Central
South & Central
America
America
India, Pakistan
India, Pakistan& Bangladesh& Bangladesh
South East Asia
South East Asia
& Pacific& Pacific

700,000
700,000
500,000
500,000

North America
North America

300,000
300,000
0
0Greater China
Greater China
Europe, Middle
Europe, Middle
East & Africa
East & Africa

2018
2018

2017
2017

38 Corporate Responsibility & Sustainability - 2018 Report

39

GRI table
The below table indexes the Stahl Corporate Responsibility & Sustainability Report 2018 against the
GRI (Global Reporting Initiative) reporting guidelines and the UN Global Compact (UNGC). This reporthas been prepared in accordance with GRI G4 (core), based on self-declaration.

Disclosure Number

What to report?

Disclosed information

Source of evidence

102-14

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, 2017 and 2018 Stahl Sustainability Reports, referring to our goalof transparency and our strategy to achieve it. This strategy is frequently communicated to the press
and in publications.

https://www.stahl.com/en/sustainability.
htm#CorporateResponsibility%20&%20
Sustainability%20Report

102-1

Name of the organization.

Stahl Holdings B.V.

https://www.stahl.com

102-2a) A description of the organization’s activities.
b) Primary brands, products, and services, including an explanation of any products or services that arebanned in certain markets.

a) 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.
b) 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.

https://www.stahl.com/en/sustainability.
htm#Stahl%20Compliance%20
Report%202018

102-3

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

102-4

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

We have manufacturing sites, labs and offices in 27 countries and are active in over 70 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.
*Most important means where we do most business, especially the contact with clients,
as well as the manufacturing of our products.

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

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

102-6Markets served, including:
1. Geographic locations where products and services are offered;
2. Sectors served;
3. Types of customers and beneficiaries.

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

https://www.stahl.com/en/automotive.
htm
https://www.stahl.com/en/apparelaccessories.htm
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 31/12/2018: 1972 FTEs, 13 manufacturing sites, approximately 6,000 products (stock keeping
units). Net sales 2018: EUR 866,9 Million. Stahl Lux 2 SA (holding company) total equity is reported at
EUR 117.3 Million, total liabilities EUR 983.1 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, 2018, the total number of employees (headcount) at 2018 year-end was 1997, which
is a decrease of 76 employees compared to the end of 2017. Stahl had 1,973 FTE’s, an decrease of 76
FTE’s compared to 2017. 86% of Stahl’s employees are on permanent contracts. Its workforce is 76%
male and 24% female.
Total Full Time Employees (FTE) leaving (dismissals and resignations) during 2017 were 272 and 195
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 2018 was 10,58( (in 2017 it was
14.2%).

https://www.wendelgroup.com
Registration Document 2017102-41

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 2018

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.

40 Corporate Responsibility & Sustainability - 2018 Report41

Disclosure Number

What to report?

Disclosed information

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.

None

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 chemical substances from its product lines which are
not yet regulated by law, but that we believe could be potential risks in the future. Stahl is also active
in promoting 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

Source of evidence

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

In the 2018 Sustainability Report we refer to UN Global Compact and UN 17 SDGs per chapter,
where applicable

https://www.unglobalcompact.org/
participation/report/cop/create-andsubmit
https://www.roadmaptozero.com/
contributors/
https://www.solidaridad.nl/nieuws/
solidaridad-zet-zich-in-voor-schoneganges-rivier

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

Solidaridad, The Zero Discharge of Hazardous Chemicals Foundation (ZDHC), bluesign® system
partner, The Leather Working Group, TEGEWA, University of North Hampton and Wageningen
University

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

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

Europe and Africa: Stahl Chemical Industries BV GMBH Austria Vienna, Stahl France SARL France
Graulhet, Stahl Chemicals Germany GmbH Germany Leinfelden-Echterdingen, Stahl Italy SRL Italy
Palazzolo, Stahl Lux 2 SA Luxembourg Luxembourg, Stahl Group SA (98.01%) Luxembourg
Luxembourg, Stahl Netherlands BV Netherlands Waalwijk, Stahl International BV Netherlands
Waalwijk, Stahl Europe BV Netherlands Waalwijk, Stahl Treasury BV Netherlands Waalwijk, Stahl
Holdings BV Netherlands Waalwijk, Stahl International Specialties Development BV Netherlands
Waalwijk, Winvest Part BV Netherlands Amsterdam, Stahl Europe Application PC BV Netherlands
Waalwijk, Stahl International Polymer Development BV Netherlands Waalwijk, Stahl International
Compounding BV Netherlands Waalwijk, Stahl Parent BV Netherlands Waalwijk, Stahl Iberica SL Spain
Parets, Stahl Investment Spain SL Spain Parets, Pielcolor SL Spain Parets, Stahl Performance Powder
Coatings SL (84.0%) 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 | North America: Stahl de México, S.A. de C.V. Mexico Toluca, Stahl (USA) Inc.
USA Peabody+J2, Stahl (USA) Holdings Inc. USA Delaware | South America: Stahl Chemicals 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 andFine 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, Stahl (Thailand) Ltd Thailand Amphur Muang Samutprakarn
All subsidiaries are wholly owned unless otherwise stated.

102-46

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 published a materiality matrix in the 2018, which was based on internal feedback on what
topics matter (x-axis). For our stakeholders (y-axis), we investigated the materiality matrix that wasavailable. We plotted the 33 GRI topics in a matrix. We show the topics that matter (medium and high)in our matrix.

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

All 33 GRI topics:
Economic: Economic Performance, Market Presence, Indirect Economic Impacts, Procurement
Practices, Anti-corruption, Anti-competitive Behavior
Environmental: Materials, Energy, Water and effluents, Biodiversity, Emissions, Effluents and Waste,
Environmental Compliance, Supplier Environmental Assessment
Social: Employment, Labor/Management Relations, Occupational Health and Safety, Training and
Education, Diversity and Equal Opportunity, Non-discrimination, Freedom of Association andCollective Bargaining, Child Labor, Forced or Compulsory Labor, Security Practices, Rights ofIndigenous Peoples, Human Rights Assessment, Local Communities, Supplier Social Assessment,
Public Policy, Customer Health and Safety, Marketing and Labeling, Customer Privacy, Socioeconomic
Compliance

Sustainability Reports(downloadable since 2013)

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

Restatements in the Corporate Responsibility & Sustainability Report linked to enviromental datareported and are clearly explained in the Corporate Responsibility & Sustainability Report.

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

No changes, since we published the matrix in 2018.

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

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

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

Size, influence, frequency of engagement.

42 Corporate Responsibility & Sustainability - 2018 Report

43Disclosure Number

What to report?

Disclosed information

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 2019102-44

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 2019102-50

Reporting period for the information provided.

January 1, 2018 up to and including 31 December, 2018102-51

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

March 2018 (Sustainability report 2017)102-52

Reporting cycle.

The Stahl Corporate Responsibility & Sustainability Reports is published each year in March.

Corporate Responsibility &Sustainability Reports(downloadable since 2013)

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

See back page of the Corporate Responsibility & Sustainability Report & on the website
per relevant article or item

https://www.stahl.com/en/sustainability.
htm#Corporate%20Responsibility%20&%20Sustainability%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 whereavailable 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 approved by an independent third party (Ernst & Young). The Corporate Responsibility& 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
performance and decides on strategy and tactics for the coming quarter. Decisions on sustainability
are governed by 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 and ethical conduct as described in the Code of Conduct. Stahl requires its business
partners to comply with the same or at least equal ethical standards and operate in accordance withthe principles in this Code of Conduct (‘Code’) and in full compliance with all applicable laws andregulations. Stahl expects suppliers and/or business partners to use a proactive approach inestablishing and maintaining the standards set forth in the Code and conduct themselves withresponsibility and integrity. The business partner states to agree to the conditions in the Code andacknowledges that any deviations found can have an adverse effect on the relation with Stahl
including an immediate discontinuation of the business 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 partner from time to time. Stahl has the right to speak and to
train employees of the business partner directly in order to fully comply with the Code. If this isdeemed appropriate, Stahl can request that an audit can be conducted by a third party to beappointed 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 humanrights, labour, the environment and anti-corruption and wishes to emphasize the following specificareas 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.

44 Corporate Responsibility & Sustainability - 2018 Report45

Appendix
Stahl Code of Conduct for Business Partners
1. Introduction

Protection of Intellectual Property

in the trafficking, recruitment, or receipt of any persons,

STAHL is committed to the highest standards of social

STAHL expects his business partner to comply with the

The business partner shall respect intellectual property

by means of threat or abuse of power. Stahl allows

and environmental responsibility and ethical conduct

UN Global Compact Guiding Principles in the areas ofrights and safeguard customer information. The businessemployees to resign from their position at any time.

as described in the Stahl Parent B.V. (“STAHL”) Code ofhuman rights, labour, the environment and anti-corruption

partner shall manage technology and know-how in a

By behaving ethically and honestly with all its partners,

Conduct. STAHL requires its business partners to comply

and wishes to emphasize the following specific areas

manner that protects intellectual property rights.

Stahl is committed to ensuring that modern slavery doeswith the same or at least equal ethical standards andof interest.

not occur elsewhere and strives only to do business with
3. Environmental

operate in accordance with the principles in this Code oforganizations who uphold similar principles.

Conduct (‘Code’) and in full compliance with all applicable

2. Ethical/Integrity

The business partner shall respect the environment andlaws and regulations. STAHL expects suppliers and/or

Laws and regulations

comply with all (supra) national environmental, healthWorking hours

business partners to use a proactive approach in

The business partner operates in full compliance withand safety legislation and regulations. The business

The business partner shall not force their employees toestablishing and maintaining the standards set forth ininternational, national and domestic laws and regulations

partner shall conduct his business processes in suchwork excessive hours and shall comply with all (supra)

this Code and conduct themselves with responsibility

that are applicable to their business operations, anda manner that compliance is guaranteed.

national legislation and regulations concerning labour

and integrity. The business partner states to agree toobtain all necessary permits.

the conditions in this Code and acknowledges thatand labour conditions. In case employees are asked to
4. Social

work overtime, their extra work is compensated in linewith local legislation.

any deviations found can have an adverse effectBusiness integrity

Human Rights

on the relation with STAHL including an immediate

The business partner shall not engage in corruption,

The business partner shall conduct their activities in

discontinuation of the business relationship.

extortion, embezzlement, or bribery to obtain an unfair ora manner that respects human rights as set out in The

Child and forced labour

improper advantage. The business partner shall abide by

United Nations Universal Declaration of Human Rights.

The business partner shall respect all (supra) national
legislation and regulations applying to child labour in line

The business partner commits, in signing this Code,all applicable anti-corruption laws and regulations of theto all applicable legislation and regulations. This Codecountries in which it operates including all applicable

Discrimination

with Convention 138 (Minimum Age) and Convention 182

therefore forms an integral part of the agreement

international anti-corruption conventions.

The business partner shall unconditionally respect(Worst forms of Child Labour) of the International Labour

all anti-discrimination conditions in (supra) national

Organisation. The business partner shall not use work

legislation and regulations.

that is performed involuntarily under threat of penalty.

between the business partner and STAHL. To verify
compliance with the Code, STAHL shall consult with theFree and fair competitionbusiness partner from time to time. STAHL has the right

STAHL will compete for business. The business partnerto speak and to train employees of the business partner

also value free and fair competition throughout theModern Slavery

Health and safety

directly in order to fully comply with the Code. If this isworld and comply with anti-trust and competition laws.

Modern slavery, or any form of forced or compulsory

The business partner shall implement strict policies

labour, is a violation of human rights. Stahl takes a strong

with the aim of creating an incident and injury freedeemed appropriate, STAHL can request that an audit
can be conducted by a third party to be appointed by

Confidentiality

stance against modern slavery and works to ensure highwork environment. At all levels, the business partner

STAHL. The business partner states to fully cooperate

The business partner protect all confidential information

labour rights standards. Stahl condemns any form of

will play an active role in identifying and rectifying

in this investigation.

provided by STAHL and its respective business partners.

modern slavery and child labour, and shall not participate

unsafe (health) situations.

46 Corporate Responsibility & Sustainability - 2018 Report47

UN Global Compact Letter of Continued Support

48 Corporate Responsibility & Sustainability - 2018 Report49

Stahl Compliance Report 2018
Stahl Group is committed to the guiding principles

b. Sanctions and embargoes

locally by the CSD manager. In the case of export orders,

during every management meeting and board meeting.

of UN Global Compact, the world’s largest corporate

Stahl is committed to compliance with the sanctions

the delivery block can only be lifted with the approval

It is noted that Stahl has no history of severe incidents

sustainability initiative. With this commitment Stahland embargoes implemented by local country lawsof the global legal and compliance officer, by e-mail.

and has a very good track record when it comes toGroup confirms the alignment of its strategy andand/or by the European Union, the United States andoperations with the universal principles of human rights,

the United Nations. The responsibility to comply withc. SHE / IT security

employees were reporterd which resulted in incurable

labor, environment and anti-corruption. This also means

these regulations lies with the local Stahl entities

Stahl strives to offer a safe working environment.

physical injuries. To make employees aware of digitalthat Stahl Group’s activities are being aligned with theunder supervision of the central legal department

Each employee mus t comply with the safety regulations

safety risks, Stahl Group also introduced a global internal

principles of UN Global Compact, the 17 Sustainable

in the Netherlands.

applicable to his/her work place. Stahl applies a zero

IT Security campaign in 2017, which was followed by an IT

tolerance policy with regard to health, safety andsecurity awareness training in 2018.

Development Goals (SDGs). Since 2018 Stahl is subject

safety. In 2018 no severe incidents with respect to Stahl

to a number of new French laws, among which Sapin II

The Stahl legal department has communicated guidelines

environment. Stahl is committed to local SHE regulations

which was introduced to eradicate corruption. With regard

to all regional general managers regarding the sanctions/and with its own corporate safety policy outlined in thed. Code of Conduct / Whistleblower rules / Businessto compliance, Stahl focuses on:embargoes that apply when doing direct or indirect

Stahl SHE manual. The responsibility to comply with thePartner Due Diligence / Modern Slavery / Diversity

a. Local law and regulations

business with customers in sensitive countries. These

Stahl SHE manual, and with local SHE regulations liesb. To be in compliance with sanctions and embargoes

guidelines are distributed by the legal department every

with the local Stahl entities. The SHE manager, located at

d.1 Code of Conduct / Whistleblower rules for employeesc. Safety, health and environment (“SHE”) / IT security

year. The existence of sanctions/embargoes is alsoeach Stahl site, is responsible for implementing the SHE

Stahl has a Code of Conduct and Whistleblower Rulesd.	Code of Conduct / Whistleblower rules / Businessdiscussed internally with the management team during

policy. SHE compliance is reported monthly to Stahl

which apply to all of its employees. These Code of

the Quarterly Executive Control Group meetings.

headquarters and is consolidated into a global report

Conduct and Whistleblower Rules are distributed

which is distributed to the management, also monthly.

through the local HR departments. Employees can also

Partner Due Diligence / Modern Slavery / Diversity
e. Compliance training

report any issues through whistleblower@Stahl.com.

Stahl employees are aware of sanctions and embargoes
a. Local laws and regulations

and they have contacted the legal department about

In pursuit of Stahl’s business objectives, safety,

Based upon the feedback received on the 2018 Code of

Stahl is compliant with the laws and regulations of thepossible sales to South Sudan, Syria, Palestine and Iranhealth and environment have the highest priority.

Conduct compliance questionnaires which were sent

countries in which it operates. This responsibility lies within the past. With regard to Iran it is noted that Stahl

Stahl is aware that SHE needs constant attention andout to the respective business directors, local regional

its local entities under supervision of the central legal

terminated its transactions relating to Iran due to theimprovement. As per October 1, 2015, Stahl started

managers and site managers in January 2019, thedepartment in the Netherlands. If necessary, local Stahl

more strict US sanctions policy in 2018. The Stahl Productglobally a SHE awareness and safety campaign to step

following incidents were reported for 2018:

companies can hire external counsel to assist with topics

Stewardship Department checks whether certain

up our commitment to a safe work environment. This	Stahl received a whistleblower letter, which wassuch as employee dismissals, permits or tax compliance.

restrictions apply to products under the various sanctions

campaign ran for 2 years, and focused on a different

investigated with the help of third party investigator

Audits of the statutory reports are performed by auditors.

and embargoes and whether a material qualifies as “dualsafety topics every two months. In 2017 Stahl appointed

KPMG. Based upon the outcome of this report, we

The audit of the consolidated (IFRS) statutory report 2018use material”. If so, such material will be flagged in thea Global SHE & Process Safety Manager with the aim

learned that 4 employees potentially accepted kickis done by PwC and is controlled by Stahl Headquarters inmaterial masters in SAP, for all Stahl plants. When an

to standardise and implement the best practices withbacks from suppliers and the emloyement

The Netherlands. In 2018 no major issues came up fromorder is placed for a product that is flagged in this way, aregard to safety and to continuously improve theagreements of those employees were terminated.

the legal and tax risk review performed which is likely towarning is received and the order is blocked for delivery.

SHE policy. In 2018, a safety culture program washave a material effect on the business.

For domestic orders this delivery block can be removed

introduced and has been rolled-out through all Stahl 
The employment agreement with one employee

sites. Furthermore, the topic of SHE is discussed

was terminated due to a conflict of interest.

50 Corporate Responsibility & Sustainability - 2018 Report

Another case is still under investigation.

51

Stahl Compliance Report 2018(continued from previous page)

With the Business Partner Due Diligence Procedureleadership talent, Diversity and Inclusion principles are

The UN Global Compact’s Ten Principles are:d.2 Code of Conduct for business partners /the compliance-relevant behavior and the integrity ofalso embedded within the core leadership development

Human Rights

Business Partner Due Diligence procedurethe (potential) business partner of Stahl is monitored

programs to encourage managers to demonstrate them

Principle 1: 	Businesses should support and respect the

Stahl is committed to the highest standards of social

and this procedure will assist Stahl’s employees inas part of their leadership behavior. Stahl will also buildand environmental responsibility and ethical conduct.

establishing and maintaining a commercial relationshipcultural intelligence and equality into the performance

Stahl expects the same from its business partners. Stahlwith reliable and ethical business partners. Potential red

review, hiring and talent identification processes. The

Principle 2: 	make sure that they are not complicit

pays close attention to the companies with whom weflags in the due diligence process could result in a no-go

composition of the Stahl Board at the end of 2018 wasin human rights abuses.

cooperate, such as agents, distributors and suppliers.

decision with respect to the relevant agreement/

two female and eight male members, from diverse

Furthermore, Stahl requires its business partners tocontract etc.

backgrounds and age groups.

business partner has its own similar Code of Conduct,

d.3 Modern Slavery

e. Compliance training

to provide a copy of such Code of Conduct. If Stahl

Modern slavery, or any form of forced or compulsory

In order to increase further awareness within the Stahldiscovers that the business partner does not comply

labour, is a violation of human rights. Stahl takes aorganisation of its compliance responsibilities, Stahlwith the Code of Conduct, Stahl can, if necessary,strong stance against modern slavery and works todeveloped an employee compliance training together

immediately discontinue the business relationshipensure high labour rights standards. In 2017 we updatedwith Thomson Reuters.

with that business partner.

the Code of Conducts and included specific wording forprotection of internationally proclaimed
human rights; andLabourPrinciple 3: 	Businesses should uphold the freedom ofsign the “Business Partner Code of Conduct” or, if theassociation and the effective recognitionof the right to collective bargaining;
Principle 4: 	the elimination of all forms of forced andcompulsory labour;
Principle 5: 	the effective abolition of child labour; andPrinciple 6: 	the elimination of discrimination in
respect of employment and occupation.

both employees and business partners. Stahl publishesThis training is developed and consists of the

The Code of Conduct is regularly discussed during

a statement on Modern Slavery on its website, which isfollowing parts:

meetings with the respective business partners. Suchyearly updated. This statement is approved by the board

 Anti-bribery & Anti-corruption training (e-learning)

Environment

discussions are written down in reports. Furthermore,of directors and is made in relation to section 54 of the Modern slavery (e-learning)

Principle 7: 	Businesses should support a precautionary

the Code of Conduct is regularly discussed internally

UK Modern Slavery Act. See our statement on Modern

 Workplace Diversity and Inclusion (e-learning)

during presentations by the legal department in Quarterly

Slavery at https://www.stahl.com/en/sustainability.
1.200 employees completed the e-learning training

Executive Control Group meetings, including at theJanuary 2019 meeting.

approach to environmental challenges;
Principle 8: 	undertake initiatives to promote greater
environmental responsibility; andd.4 Diversity

courses with regard to Anti-bribery & Anti-corrupton andPrinciple 9: 	encourage the development and diffusionof environmentally friendly technologies.

In 2018 Stahl published its Diversity and Inclusion policy

Modern Slavery. The Workplace Diversity and Inclusion

Based upon the feedback received on the 2019 Codeon its website (www.stahl.com/about Stahl/Diversity

e-learning training was rolled out in the third quarter ofof Conduct compliance questionnaires which wereand Inclusion Policy) and is committed to embedding

2018, and was completed by 1066 employees in 2018.

Anti-Corruption

sent out to the respective business directors, local

equality, diversity and inclusion across the organization.

It is expected that the remaining employees will finalize

Principle 10: 	Businesses should work against

regional managers and site managers in January 2019,

Equal treatment is at the heart of the organization andthe training in 2019.

with regard to the business partner Code of Conduct,

we believe this will produce a more innovative andno incidents were reported for 2018. In September 2018

responsive organization. We also believe that there

Stahl implemented a Business Partner Due Diligenceis much more to diversity than age, gender, race andStahl Holdings B.V.

procdure for business partners with regard to new

cultural background. A diverse workplace includes

Bram Drexhage

purchases/purchase orders/ agreements/contracts

people who can offer a range of different viewpoints

CFO and Compliance officer

with an expected total yearly value of > € 100,000.--.

and ideas. Consistent with Stahl’s strategy of growing its

Annex 1 The UN Global Compact’s Ten Principles

52 Corporate Responsibility & Sustainability - 2018 Reportcorruption in all its forms, including
extortion and bribery.

53

FOL234/032019

Sustainability Team

Michael Costello

Ingrid Weijer

Mi Yanmichael.costello@stahl.com

ingrid.weijer@stahl.com

mi.yan@stahl.com

The information provided herein is not intended to form part of any offer or contract for the sale. Pictures, descriptions
and statements are only artistic impressions and they are not representations of facts. STAHL does not warrant the accuracy
and correctness 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.