ACCO BRANDS EMEASUSTAINABLE DEVELOPMENT 2018

INTRODUCTION

2

Simplifying and organizing modern work!
That is what we aim to do at ACCO Brands. And our portfolio of wellestablished brands are at the very core of what we do. We aim toprovide our end consumers with products which delight and fulfil thenecessary tasks. And where they can feel confident, that all efforts
are being made to work toward reducing their environmental impact
and the impact on the communities and partners with which we
work.
This report aims to provide some insight into our company, how we
operate and how we work toward reducing those impacts.

COMPANY PROFILE$2 billion company listed on NYSE, $600 million+ in EMEA
Products sold in more than 100 countries

21 factories around the world (11 in Europe)
6 500 employees

3

STEP-BY-STEP TOWARD A BETTER FUTURE
Dear Stakeholders,Cezary Monko

Executive Vice President and President
ACCO Brands EMEAFor nine years now, we have been gathering the results of our work on reducing ourenvironmental and social impacts. Year-by-year, step-by-step we have made improvements.
Sometimes the steps are smaller and sometimes they are bigger. It is hard to ensure the rightfocus is put on these projects and targets, when there is always so much else to do, as well.
And yet, we are happy to do it for the sake of the long-term health of our company, thebusiness partners we work with, the communities around us and our children, who today
march the streets and demand that we do more.
It is not easy and sometimes we must observe that we could do better. But we must maintainfocus and keep working toward our goals. There is no other option.
This year, we have seen many changes within our company. By becoming a leaner, more
efficient operation, we can also be more efficient with the resources we use. We have madegood progress in reducing our water consumption and we are again proud of our RoSPA award
for Health & Safety. We have made good progress on waste reduction in our factories, butneed to find ways to make further improvements in our warehouses.
“Taking Care of Tomorrow” remains a key focus for all of us at ACCO Brands and I urge thattogether we take the next firm steps towards a better one.
Yours,
Cezary Monko

ACCO BRANDS EMEA SUSTAINABLE DEVELOPMENT STRATEGY

5STRATEGY & TARGETS 2016 - 2020
Reducing ourEnvironmental Impact

Stewardship of Paper &Paper-based Materials

Good Working
Relationships• We will reduce our scope 1 and 2 CO² emissions, at our
manufacturing, warehousing and sales office sites by
25 percent.

• We are committed to using recycled or
responsibly sourced fibers, wherever possible.

• We aim to have a transparent and principled working
relationship with all of our stakeholders, from employees
and suppliers, to customers and consumers.

• We aim to further reduce our total water consumption
by 15 percent.

• All of our manufacturing plants producing
fiber-based products have been FSC® Certified
since 2011.

• We have the ultimate goal of achieving a Zero Waste
Rate in our manufacturing and warehouse facilities.

• We aim to use FSC, Blue Angel or EU Eco label
certified paper only in our offices.

• All of our sites will be ISO 9001 and ISO 14001 certified.

• We will design our products to minimize theuse of packaging.

• We aim to increase our sales of Environmentally
Preferable Products.

• In addition, we will source other materials,
such as plastic and metal, in environmentally
responsible ways.

• Our principles are based on the international standards
set by the UN and the ILO Declaration of Fundamental
Principles and Rights.
• We will establish a clear set of policies on health & safety,
the environment and supply chain and create a workplace
based on high standards and fair-working practices.
• We will maintain a safe and healthy workplace with atarget of zero accidents.
• We require our suppliers to fulfil the same standards andmonitor this according to a set of specific metrics.

ACCO BRANDS EMEA COMPANY PROFILE

6

KEY PRODUCTS:
Lever Arch Files& Binders

Staplers & Perforators

Computer & Mobile
Device Accessories

Pockets, Folders,
Indices & Dividers

Storage &Archiving

Binding &Lamination

Hanging Files &Presentation Folders

Paper Pads

Paper Shredders

Ergonomics &Wellbeing

Visual Communication

INTRODUCTIONGLOBAL
REACH

Letter Trays/ Moulded
Products

ACCO BRANDS EMEA COMPANY PROFILE

7

KEY PRODUCTS:
Manual Tackers

Hot Air Guns

Print Finishing Solutions (PFS)

Hammer Tackers

Glue Guns

Xyron Creative Solutions

Electric Tackers & Nailers

Riveting

Fine Art Supplies

Pneumatic Nailers

Cassette Stapling Units
Printers & Copiers

GLOBALREACH

ACCO BRANDS EMEA COMPANY PROFILE

8

Manufacturing & Distribution
Eleven Factories:• Sint Niklaas, Belgium• Arcos, Portugal• Lillyhall, U.K.
• Uelzen, Germany• Gorgonzola, Italy• Hestra, Sweden• Lanov, Czech Republic• Kozienice, Poland• Hotkovo, Russia• Cerkezkoy, Turkey• Shanghai, China

Sales Offices
Manufacturing
Distribution
Testing (ES), Museum (UK)Five Additional Distribution Centers:• Halesowen, U.K.
• Barcelona, Spain• St. Amé, France• Heilbronn, Germany• Prague, Czech Republic

Also:
Shanghaifactory

ISO CERTIFICATIONACCO Brands is committed tomaintaining internationallyrecognized quality andenvironmental standards across allof our EMEA production facilities. As
such, they are all ISO 9001 and
14001 certified. In addition, allwarehouses and Sales offices in
Europe are also certified to thesemanagement systems.
Additionally, we have had the ISO
50001 Energy Management
certification in three locations inGermany since 2016.

9ACCO BRANDS EMEA: SUSTAINABLE FOUNDATIONSSales/Communication

LEAN

Working in a lean way is
the foundation of all oursustainability efforts.
Reducing waste in allareas and keeping
processes simple andshort help with many of
our objectives. Our ISO
9001 and ISO 14001
certifications provide
the framework andtools to help achieve
this.

Working
Methods/Processes/Admin

Products/Packaging

Manufacturing/Purchasing/
Logistics/Suppliers

Transparency, Honest Communication

ISO 14000, ILO Agreement, CESMP Programme
QUALITY
FSC® Certification, Blue Angel, Nordic Swan, Materials
ISO 9000, ISO 14000, FSC® Certification,
Supplier Audits and Monitoring

10

ACCO BRANDS EMEA: SUSTAINABILITY MANAGEMENTSUSTAINABILITY STEERING COMMITTEE
We host a quarterly meeting to go over current position and plan future projects and goals.
Attended by:• Senior Vice President, Operations• Senior Vice President, Marketing and R&D• Vice Presidents, Operations and Logistics• Vice President, Procurement• Vice President, Human Resources• Vice President, Category Management• Quality Production Europe and FSC Central Office Manager• Sustainability Manager, Europe

11

RESULTS

12KEY ACHIEVEMENTS IN 2018

13

WATER
Twenty-three percent less water consumed in 2018 than 2015. Original
target of a 25 percent reduction set for 2020 almost reached, despite theaddition of three additional sites in 2017. We saved the same amount ofwater in 2018 compared to 2017 that more than 8000 EU citizens would
consume annually*!

WASTE REDUCTION
The percentage of total waste recycled increased in 2018. The 91 percent
recycling rate is climbing slowly toward the 98 percent target. We saved
the same amount of waste going to landfill in 2018 compared to 2017 as
255 EU citizens would send in one year*!

HEALTH & SAFETY
Our continuous achievements here have again lead to a RoSPA award. We
are proud of the projects and activities which lead to safer, more pleasantworking conditions for all of the ACCO Brands EMEA team.
•

Statistics taken from www.europarl.europa.eu and www.ec.europa.eu/eurostat

CO2 EMISSIONS

14SCOPE EMISSIONS

15••

Scope 1 (direct)
Scope 2 (indirect emissions from consumption of purchased
electricity, heat or steam)Raw material suppliers
OEM suppliers
Non-European
Factories

Sales offices

Consumers

Products

European
Factories

ACCO
Brands
EMEA

Company cars(leased)Service
Providersowned fleet
vehiclesCustomers /Distributors

All European manufacturing facilities were monitored from the start in2010, except Arcos, Portugal, and Lillyhall, U.K. (added in 2017).
Lillyhall (pencil manufacturing) runs a biomass boiler to heat the plantusing waste material. This has been classified as carbon neutral by the
Carbon Trust and is therefore not included in the results.

Warehouses

External
warehouses

Freight
companies

We continue to report the Rapid Shanghai factory as most of the
production is for EMEA and it is a key facility for us. The warehouse inShanghai has been removed.
Warehouses have been included since 2016, except Halesowen added
in 2017. The Born and Tornaco warehouses, stated last year as notincluded, have been closed.
All facilities are listed on Page 8. Sales offices, which are not physicallypart of one of the listed facilities, are not included, as they are classed
as immaterial.
Scope 3 emissions are not included to date.

Total CO2 emissions in 2018 (according to scope on
previous page) were 11.8k tonnes, 7.8 percent
higher than 2017.

CO2 EMISSIONS: ACCO BRANDS EMEA FACTORIES
and WAREHOUSES
13.507.645
10.908.058

11.762.491

Kg CO210.513.247
Target
2020

2015

2016

2017**
Factories•

2018

Warehouses

2017 and 2018 show ACCO Brands EMEA plus Shanghai. All previous years refer to legacy Esselte sites only (twomanufacturing and one distribution site fewer). Sites outside of EMEA removed from 2015 and 2016 forcomparison. Hence, figures are slightly different from previous years’ reports, but comparable.

**2017 figures have been adjusted slightly upward due to a correction in the readings from Lillyhall, U.K. and theremoval of the Shangahi warehouse.

This is caused almost entirely by the increase inconversion rate in Poland from 0.69 to 0.85 kg
CO2/kWh. The mix of power production in Poland
has been shifted further to coal. Currently, a lowerimpact supply is not available. We have to consider
how to meet this challenge for our largest factory.
Overall, nine out of 18 sites achieved a reduction in
CO2 emissions in 2018 and two sites remained atzero emissions. So, we are seeing good
improvements on many sites, but finding a solution
in Poland will be key in achieving our 2020 emissions
goal of 9 450 tonnes.
The biomass boiler in Lillyhall has been declaredcarbon-neutral by the Carbon Trust and is therefore
excluded from these figures.

EMISSIONS: ELECTRICITY IN KWH
Total ACCO Brands EMEA electricity
consumption (according to the scope on slide16) was 1.5 percent lower in 2018 than in
2017. Electricity consumption makes up 80
percent of our total CO2 emissions and issomething we have direct influence over.

30.000.000

Electricity used in kWh

25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
0

2015

2016

2017**
Factories•

Warehouses

2017 and 2018 show ACCO Brands EMEA plus Shanghai. All previous years refer to legacy Esselte sites only (twomanufacturing and one distribution site fewer). Sites outside of EMEA removed from 2015 and 2016 forcomparison. Hence, figures are slightly different from previous years’ reports, but comparable.

**2017 figures have been adjusted slightly upward due to a correction in the readings from Lillyhall, U.K. and the removalof the Shangahi warehouse.

2018

After the merger of ACCO Brands with Esselte,consolidation lead to the closure of two
warehouses (Born and Tornaco), which were
not included in these figures before, and eight
Sales offices, which are not in scope. Overall,
we know that the impact of our combined
company is lower, it is just not possible to2019 this exactly, due to lack of data formeasurethose sites.
We now have a clear baseline from which towork and need to focus further on energysaving activities.

ACCO BRANDS EMEA MANUFACTURING
CO2 Emissions in kg/tonne Production

170

150,3
150

126,0

130

112,3

111,7

110

90

Target 2020: 94 kg CO2 / Tonne
70

50

2015
•

2016

2017**

20182017 and 2018 show ACCO Brands EMEA plus Shanghai according to scope on Page 15. All previous years refer to legacy Esselte sites only.
Years can be compared as CO2 is related to production volumes**2017 amended to include Lillyhall, U.K., which was not covered in last year’s report. This has increased the rate from 105.6 kg/tonne to 111.7kg/tonne.

The increase in conversion
rate in Kozienice (PL) also
carries through of course to
the emissions/tonne
produced. The Derwent
pencil production in Lillyhall
U.K., which was not included
in last year’s report, but is
now included in both 2017and 2018, also has an impact
due to the different natureof production there to ourother sites.
Seven out of 11 sites
improved their emissions of
CO2/tonne produced in
2018.

ACCO BRANDS EMEA WAREHOUSESCO2 Emissions in kg/m³ shipped
3,5

3

3,18
2,96

2,85
2,48

2,61

2,55

2,5

2

Target 2020: 2.09 kg CO2 /m³
1,5

1

0,5

0

2013
•

2014

2015

2016

2017

2017 and 2018 show ACCO Brands EMEA plus Shanghai, according to scope on Page 15. All previous years refer to legacy Esselte sites only.
Years can be compared as CO2 is related to production volumes

2018

The warehouses require
more heating than thefactories (which use a lotof residual heat frommachinery for heating),
meaning they are more
affected by the wintertemperatures. However,despite the poor result for
the Kozienice warehouse,
due to the higher
conversion rate, many of
the other warehouses
managed to compensatedfor this through improved
results, St. Amé, France, inparticular.

EMISSIONS

20

LED Installation in the St. Amé, France, Warehouse

BeforeOrange light: 280W

In our St. Amé warehouse in France, we have been progressively switching to LED lighting, replacing each
old lamp as it dies. The new LED lighting provides better visibility for the operators and a more pleasantworking environment.
In addition, the LED lighting lasts longer and uses less electricity, leading to a lower carbon footprint withsavings of around 7.5 tonnes of CO2 since we started the replacements in 2017.

After
Daylight simulation: 120W

WATER CONSUMPTION21SCOPE WATER22SCOPE WATER CONSUMPTION
Raw material suppliers
OEM suppliers
Non-European
factories

2017 and 2018: Total water consumption for all
ACCO Brands EMEA plants and warehouses except
the warehouses in Born, Netherlands, and Tornaco,
Italy, which were closed in 2018 - for which no data
is available.

Sales offices

Consumers

Europeanfactories

ACCO
Brands
EMEA

Serviceproviders
Products

Previous years to 2017 show the same scope ofsites, except the data for Arcos, Portugal, Lillyhall,
U.K., and Halesowen, U.K., is not available.
All facilities are listed on Page 8.

Customers /Distributors

Warehouses

External
warehouses

Freight
companies

Local Sales offices, which are not physically part ofone of the listed facilities, are also not covered but
as these are generally small, we can conclude thatthese would not have a material impact on the
result.

ACCO Brands EMEA Water Consumption
Water consumption in 000 L
36.00035.50035.00034.50034.00033.50033.000Target 2020: 33 000K Litres
32.50020152016

2017**• 2017 and 2018 refer to ACCO Brands EMEA plus Shanghai only. Previous years refer to legacy Esselte sites only.
** A small correction to the Halesowen, U.K., figure for 2017 means that the figure shown here is slightly higher than reported in 2017.

2018

After consistently reducing
our water consumption formany years, we
experienced someproblems from 2013 to2017, which increased thelevels. Also, an additional
three sites were added in2017 after the merger. In
2018, we managed to once
again make significant
progress, bringing us muchcloser to our 2020 target of
33 000K litres. This ismainly due to fixing
leakage issues in Turkey
and Italy.

WASTE REDUCTION & RECYCLING

24

SCOPE WASTE REDUCTION & RECYCLING

25

SCOPE WASTE MANAGEMENT
Aim: Zero Waste
Raw material suppliers
OEM suppliers
Non-European
factories

Europeanfactories

Customers /Distributors

Hence, data for all types of waste is collected from all sites. We have some difficulties withrecycling companies which do not disclose if waste has been “thermally recycled”, but will
work further to see if we can gain more knowledge on this.

Sales offices

Consumers

ACCO
Brands
EMEA

Serviceproviders
Products

Warehouses

External
warehouses

Freight
companies

Zero Waste is generally defined as 98 percent of waste being recycled. “Thermal recycling”(burning) is not counted as recycled and hazardous waste is not included.

2017 and 2018 data covers all ACCO Brands EMEA plants and warehouses plus the Shanghai
factory. The warehouses in Born, Netherlands, and Tornaco, Italy, were closed in 2018,
meaning no data is available.
Years previous to 2017 show the same scope of sites, except the data for Arcos, Portugal;
Lillyhall, U.K.; and Halesowen, U.K. is not available. All facilities are listed on Page 8.
Local Sales offices, which are not physically part of one of the listed facilities, are also notcovered, but waste volumes here are far smaller than at the plants and warehouses,
meaning we can conclude that these would not have a material impact on the result.

WASTE REDUCTION & RECYCLING

26

Waste in kg 2018
Ninety-one percent of all waste(excluding hazardous waste) was
recycled in 2018 (Target 98 percent).
This is a further improvement on
2017 when we achieved 89 percent.

9%
7%

19%

Recycled metal

Recycled paper / board
15%
Recycled plastic

It remains a challenge to gain further
information from various recycling
companies regarding exactly how
much of the waste they collect fromus is recycled back into materials andhow much is “thermally recycled.”

Other Recycled

Non-recycled waste

50%

WASTE REDUCTION & RECYCLING

27

Waste in kg

Total scrap was on the samelevel in 2018 as 2017.
Although the factories
achieved a 4.3 percent
reduction through Kaizen
projects, this was cancelledout due to the warehouseconsolidation which lead tomore waste at some of thoselocations. This should
hopefully improve, moving
forward.

2016
2017
2018

Recycled metal

Recycled paper /board

Recycled plastic

Other Recycled

Non-recycled waste

Total waste

WASTE REDUCTION & RECYCLING
SCRAP REDUCTION IN LANOV, CZECH REPUBLIC: REPAIR CENTRESAim:
To repair small production errors on products which would otherwise be
scrapped.

Actions:
One repair station set up for each line where missing or damaged parts,
such as rivets, rados or rings, can be added/repaired manually.

Result:Repairing these types of error saves about 30 000 binders a year frombeing scrapped.

28

WASTE REDUCTION & RECYCLING
RE-USING SCRAP MATERIAL IN KOZIENICE, POLAND
Aim:
In the past, the ends of the reels of raw material and damaged greyboard sheets (often
corners/edges damaged) were scrapped, but this material can be re-used.

Actions:
Reels of plastic are sent back to the supplier for re-pelletising.
Cardboard sheets are cut-down and used for smaller products.

Result:This saves around 35 tonnes of plastic and around 11 tonnes of cardboard a
year.
This is the equivalent weight in plastic (although a different type) of almost
270 000 one-litre bottles.

29

PAPER STEWARDSHIP

30

Forests are the key to climate change and protecting biodiversity and the homes of the indigenous population.
This is why the protection of forests and life on land has been declared a “Sustainable Development Goal” by
the UN. At ACCO Brands, we understand the importance of protecting these landscapes and have made it apriority to help protect them.

SUPPORTING THE SDGS

32

Protecting life on land, forests in particular, has been
identified by the UN as one of the 17 Sustainable
Development Goals. At ACCO Brands, we are supporting
this important goal through our Paper Stewardshipstrategy and targets. By using recycled and FSC certified
fibres, we are working toward SDG Goal 15 targets 15.2
and 15B.
Read on to find out more about how we are working
toward these targets.

PAPER STEWARDSHIP33

ACCO Brands EMEA FSC® Certification• The Forest Stewardship Council (FSC®) is dedicated to the promotion of
responsible forest management worldwide. It helps take care of forests andthe people and wildlife that call them home.
• ACCO Brands EMEA is proud to hold FSC certification for our relevant
manufacturing and administrative sites.
• Our FSC -certified paper and board products are independently audited andhelp to promote and support the responsible management of forests.

PAPER STEWARDSHIP34

ACCO Brands EMEA FSC® Certification• We launched over 100 new FSC-certified products during
2018. First, the high volume range of Leitz® spine labels were
switched to FSC-certified material in May. Our FSC
certification was then used to support the Rexel ® brand,
switching the “Choices” range and various other ringbinders
and presentation ringbinders to FSC-certified.
• The percent of paper-based raw materials, which are FSCcertified, has however gone down slightly (0.63 percentage
points), as we now have data from the remaining three sites,
including the wood used for pencil manufacturing at Lillyhall,
U.K. (Derwent®). The packaging data for Lillyhall, U.K. is still
outstanding, but will not have a large impact on the result.

31.12.2018
FSC-certified factories and warehouses

8

FSC-certified Sales offices17

FSC-certified paper-based raw
materials*

80.12%

FSC-certified products 31.12.18.

1 548

PAPER STEWARDSHIP

35

PAPER USAGE IN MANUFACTURING AND SHIPPING

2015

2016

2017

2018

Percent of paper purchased which is
FSC®-certified, or recycled

99.3%

99.4%

99.2%

99.5%

Paper/Board from non-FSC, virginFibres

0.7%

0.6%

0.8%

0.5%

Paper types in use

Recycled paper total*

95.4%

95.8%

96.4%

96.2%

FSC-Certified paper*

83.6%

80.46%

80.75%

80.12%* Paper can be both recycled and FSC-certified.
2018 not including packaging in Lillyhall, U.K. (Derwent® products), 2017 and before, data for legacy Esselte sites only.

• ACCO Brands is committed to the
responsible use of paper and paper-basedmaterials in the manufacturing of our
products and used for our packaging.
• Our long-term target is to source 100
percent of our paper used in the
production of our products from FSCcertified or recycled sources.

ENVIRONMENTALLY PREFERABLE PRODUCTS

36

ENVIRONMENTALLY PREFERABLE PRODUCTS

37

PRODUCT PHILOSOPHY
Quality Lasts:
At ACCO Brands, we firmly believe that the best way to reduce environmental impact,
is to provide high quality, long-lasting products. Having to replace broken or worn-out
products within a short period of time means the environmental impacts of raw
material production, manufacture, transport of materials and finished goods anddisposal of the old product are doubled or tripled. A study carried out in 2014*
showed, for example, that a Leitz® stapler or hole punch is in use for approximately 10
years, whereas a lower positioned model is used for only approximately four years.
This means that in 10 years the user of a lower-positioned model causes roughly twoand-a-half times the environmental impact than a user of a longer-lasting model, suchas a Leitz® stapler or punch.

Re-use before recycle:

Quality Lasts

Sustainably
SourcedMaterials
ReducePackaging

Recycled/Environmentally Responsible Materials:

Recycled

Wherever we can, we use recycled materials. And when that is not possible, we aim touse responsibly sourced material, particularly when it comes to paper and board. We
use externally awarded certificates and labels to validate these claims. Around 900
products carry the Blue Angel label for recycled paper (UZ14), cardboard (UZ56) andplastic (UZ30a). Further products hold the FSC® Recycled label, the FSC® Mix label, or
the Austrian Environment label.

Materials

SimpleMaterials

Ease recycling* Total Cost of Ownership Study carried out for Esselte by Vocatus in 2014

ENVIRONMENTALLY PREFERABLE PRODUCTS
BRANDED PRODUCTS WITH ENVIRONMENTALLABELSIn our efforts to analyze sales of products that are environmentally
preferable, we currently see no alternative for measurable target than tomeasure the products which hold a environmental label awarded by athird party, such as Blue Angel or FSC®. Of course, only certain products
within a category can gain such a label and not all categories haveapplicable labels (e.g. computer accessories).
With the merging of two companies in Europe in 2017, some categories
were added where it could be possible to gain such labels, but which we
did not have before. These are listed below the total. Also, somecategories, such as laminating and Viscom, became much larger. As thesecategories with relatively few labeled products gained weight, the overall
proportion of products with labels has gone down, although the levelwithin most of the categories has remained stable.

38% Sales with Eco Label

Product Categories

2015

2016

2017*

2018

Lever Arch Files & Binders

81%

81%

79%

80%

Indices & Dividers

47%

47%

42%

43%

Pockets & Folders
Document Presentation &Organisation

1%

1%

1%

1%

34%

35%

30%

31%

Archive Boxes & Storing

54%

54%

46%

46%

Suspension Filing
Paper Products (pads, forms andbooks)

72%

72%

48%

48%

84%

84%

64%

61%

Desktop (Moulded)

0%

0%

0%

0%

Lamination Machines % Suppliers

2%

0%

0%

0%

Visual Communication

20%

19%

2%

2%

General Office Articles

15%

15%

6%

7%

Total

52%

52%

45%

45.5%

* 2017 has been corrected since the publication of the 2017 report to include theBinding Machines & Supplies

0%0%extended sales in the categories as explained above, which leads to a lower overall
proportion of labeled products sold than in 2016.

Shredders0%0%Drawing & Writing Instruments

0%0%

ENVIRONMENTALLY PREFERABLE PRODUCTSSPINE LABELS SWITCHED TO FSC® CERTIFIED MATERIAL
All of our Leitz® lever arch files are
FSC®-certified and supplied with thecorresponding label. But users often
want to re-use and re-label their long
lasting Leitz files.
In 2018, we certified our range of 26
spine labels which can be put
through a printer. Now, re-used files
can also be re-labeled withresponsibly sourced paper labels.

39

ENVIRONMENTALLY PREFERABLE PRODUCTS
INSOURCING PRODUCTS LEADS TO LOWER TRANSPORT IMPACT
One of the benefits of the merger is that we can combine our manufacturing capabilities. We were able to move theproduction of the Dox files sold in Italy from Egypt to Italy. It makes perfect sense to make these voluminous products
close to the market where they are sold.
In this way, we could save shipping many containers over the ca. 2600km journey from Cairo, Egypt, to Genoa, Italy.
This saves around 230 000 tonnes of CO2 emissions a year, which is the equivalent of what around 36 000 EU
households use per year.

40

GOOD WORKING RELATIONSHIPS

41

42

We can succeed at what we do, when we work together. We rely heavily
on the hard work and expertise of our suppliers in order to be able tosupply our customers with the high-quality products and service they
expect. We can only deliver the quality and innovative designs expected ofour brands with the support of our suppliers and a solid supply chain.

Therefore, good relationships with our suppliers are key. We value longterm relationships with a clear understanding of what is required fromboth sides. We ask all of our suppliers to sign our Supplier Code of
Conduct, which covers social and environmental topics and we administer
audits where we feel it is necessary.

SUPPLY CHAIN RESPONSIBILITY

43

Supply Chain Responsibility
ACCO Brands-Owned Facilities

Suppliers• ISO 9001, 14001• Focus on long-term relationships• The ILO Declaration on Fundamental
Principles and Rights at Work forms thebasis for social standards on every site.

• Must comply with REACH and areasked to comply with the ACCO Brands
Restricted Substances List

• Follow the ACCO Brands H&S policy
and Comprehensive Environmental &Safety Management Plan with regulartraining• Suppliers in risk countries
must sign Supplier Code of Conduct• Sustainability reporting: CO2, water,
waste, paper and board use.

• Finished goods suppliers in risk
countries: Audits covering social andenvironmental aspects carried out andfollowed up on by a third-party service
provider with close monitoring by the
ACCO Brands Vendor Compliance andSourcing teams.

Products/Marketing• Comply with REACH, RoHS, WEEE,
packaging and all relevant EU
regulations• Environmental labels:
FSC®, Blue Angel and Nordic Swancertifications held for 2,000+ products• Use FSC® -certified/recycled paper andboard• Honest and transparent communication.

SUPPLY CHAIN RESPONSIBILITY
SUPPLY CHAIN MONITORING

44

Acceptable

We work together with our suppliers to ensure that our
products are made in safe conditions, under fair working
conditions and without damage to the environment.

The factory complies with all applicable laws and regulations in
the country in which it is doing business, as well as the ACCO
Brands Supplier Code of Conduct.

In countries where the risk of a supplier not meeting our
expectations is higher, we control this by carrying out regular(at least one per year) audits. The audits are carried out by athird-party company and follow the a similar scheme to SMETA
IV.

Minor

If non-conformances are found, then the ACCO Brands
compliance team sets a corrective action plan and works withthe supplier on fulfilling it. The ACCO Brands team also offers
regular training for suppliers.

Corrections are followed up according to deadlines set by ACCO
Brands’ Compliance team. If a follow-up audit is required, thesupplier must pay.

Suppliers also receive a numerical scoring (not published)which is used to measure progress from year to year.

Unacceptable rating given due to child labour, prison/forced
labour, physical/sexual punishment or abuse, life threatening
health, safety, environmental issues, denied access, etc.

ACCO Brands provides the factory with a Corrective Action Plan
and the factory must provide evidence of corrections.

Major

Zero Tolerance

SUPPLY CHAIN RESPONSIBILITY: SUPPLIER CSR RATINGS IN 2018
In 2018, 93 percent of all suppliers were audited. No serious (zero tolerance) non-conformances were identified at any audits.
After each audit, which does not result in a green rating, we work with our suppliers on a Corrective Action Plan . By the end of 2018,
71 percent of all CAPs were completed (some audits also took place in November/December).
Of those audited, at the end of the year, 22 percent of suppliers still had “orange” level points to close on their CAP. The work on improvingon this carries on into 2019. These are all improvements on the previous year, but we still have some small gaps to close.
Audits at Suppliers of Finished Goods in Risk Locations
140
120
100
80
60
40
20
0
2018
Total Suppliers

AuditedCAP open end of year

CAP open with orange score

SUPPLY CHAIN RESPONSIBILITY: SUPPLIER CSR RATINGS IN 2018140

Audits at Suppliers of Finished Goods in Risk Locations

120

The number of suppliers
increased with the merge ofthe two companies in 2017.
In 2018, we still missed a
few audits, due to themoving of factories andtiming issues. It is company
policy to audit all new
suppliers.

100
80
60
40
20
0
2015
Total Suppliers

2016
Red Rating

Orange Rating

2017*
Yellow Rating

Green Rating

2018*
Unaudited Suppliers* 2017 and 2018 refer to all ACCO Brands EMEA suppliers. All previous years refer to legacy Esselte suppliers only.

HEALTH & SAFETY

47

HEALTH & SAFETYAt ACCO Brands, we are committed to pursuing continuous improvement in
Health & Safety within all our locations and attaining our goal of zero accidents
and incidents. This is our Mission Zero!

Our Health & Safety management system is laid out in the “Comprehensive
Environmental and Safety Management Plan,” which is activated in every ACCO
Brands EMEA location.

We strive to achieve a culture where all employees contribute and takeownership for creating and maintaining a safe working environment.

48

HEALTH & SAFETYRoSPA Occupational Health & Safety Award
We are proud to have been awarded theRoyal Society for the Prevention of
Accidents (RoSPA) gold medal for 22 years
running and to hold the RoSPA Order ofDistinction. RoSPA is a leading and wellrespected Health and Safety organization
with the aim of reducing accidents bothin the workplace and at home. RoSPA
present awards to organizations for theiroccupational health and safety excellence
annually.

49

HEALTH & SAFETY
ACCO Brands Global Safety Day
On our Annual Global Safety Day, teams all over Europe and the world were
reminded of our goals and their responsibility to look out for each other, noticeand report risks and avoid accidents and incidents as much as possible.
Children of our employees in Europe were asked to join in and design a poster
about health and safety at work. Nine-year-old Martyna from Poland won withthis rousing message to come back home safely.

50

HEALTH & SAFETY51

ACCIDENT PREVENTION
At locations across EMEA, actions are constantly being taken to reduce risks and lower the
chance of an accident happening.
Cleaning products
Using eco products instead of
products with hazard warning signs.

Blue warning
lights on fork lifts inwarehouses to warn
pedestrians.

Warning cyclists crossing!
Clear warning for trucks turning into or
out of the warehouse that cyclists could
be crossing the entrance.

HEALTH & SAFETY

52

NOISE REDUCTION IN KOZIENICE

At our largest plant in Kozienice, Poland,
we found that the noise levels were over
85 decibels in 27 areas of the factory. We
managed to reduce these levels to 85
decibels or less in 13 areas during 2018.
The target is to reduce this to zero. The
noise levels in the remaining areas range
from just over 85 decibels to 89.3 decibels.

HEALTHY AND SAFE WORK ENVIRONMENT
Total Statutory Reportable Accidents at Factories and Warehouses
Facilities EMEA

2015

2016

2017

2018

Warehouses EMEA 2015

2016

2017

2018

Kozienice, Poland

6

16

9

3

Heilbronn, Germany

9

4

1

7

Uelzen, Germany

6

2

2

0

St. Amé, France

7

4

3

3

St. Niklaas, Belgium

5

1

2

3

Halesowen, U.K.

1

0

0

0

Gorgonzola, Italy

5

4

0

3

Barcelona, Spain

0

0

1

0

Cerkezkoy, Turkey

1

0

1

0

Other warehouses

Lanov, Czech Republic

12

7

4

3

Hotkovo, Russia

0

0

0

0

Hestra, Sweden

4

8

1

2

Arcos, Portugal

1

0

0

0

Lillyhall, U.K.

0

0

0

0

Shanghai, China

11

2

4

1

Total Accidents

0

68

48

28

25

RESULTS & OUTLOOK54

ACCO Brands EMEA Sustainability Scorecard 2020: Environmental Impact and Paper
Target 2020

Emissions:
CO2 Factories
CO2 Warehouses
Total CO2
Water Consumption:
All Factories & Warehouses

Zero Waste

FSC® /recycled paper used in
manufacturing
Env. Preferable Products
Percentage of sales of branded
products which have an Eco
Label in categories where label isavailable

Target change
from 20152017 Result*2018 Result

Progress

Despite many sites consuming lesspower, the worsening conversion
rate in Poland has a major impact
on the final results.

94 kg/Tonne
2.09 kg CO2 /m³
9 450 T CO2

-25%
-20%
-30%

111.7 kg CO2/T
3.18 kg CO2 / m³
10 908 T CO2

126.0 kg CO2/T
2.96 kg CO2 /m³
11 762 T CO2

33 000K Litres-25%

35 849K Litres

33 861K Litres

A further drop in consumption
brings us close to our target.

☺

98% of total waste
recycled+21%

89% of total waste
recycled

91% of total waste
recycled

We expect further improvement
once the warehouse consolidationis completed.

☺

100%

+0.7%

99.2%

99.5%

This result is now including Lillyhall
production (Derwent®) and only
missing Lillyhall packaging.

☺

45.5%

Few additional products with an
Eco Label in 2018. The mix ofproducts we now sell takes us far
away from our 54 percent target.

54%

+2%

45%

* Some adjustments have been made since the publication of the 2017 report, please see the appropriate sections for explanations.

ACCO Brands EMEA Sustainability Scorecard 2020: Good Working Relationships
Target 2020

Tier 1 suppliers signed up to the ACCO
Brands Code of Conduct

100%

2018 Result

Progress

95 percent of non-European OEM
suppliers have signed our Code of
Conduct.

Although we are close, we are still
missing the documentation on a few
small suppliers. We will focus on resolving
this in 2019.

☺
☺

Suppliers of Finished Goods in Risk
Countries audited

100%

93 percent

The much higher number of suppliers
than in previous years is under control.
We need to pull in the last few missing
audits.

Audited Suppliers on Level Green or
Yellow

100%

Audit result yellow or green: 32 percent
Total suppliers with closed CAP or on level
yellow/green: 95 percent

A clear improvement on managing the
CAPs as we now have 95 of suppliers onan acceptable level at the end of the year.

100%

Finished goods and raw material suppliersfor EMEA are known but not fully
documented (mapped and risk assessed).

This task has been carried out for thehighest risk group of suppliers, nonEuropean OEM. At the moment, fulfilling
this target completely will be challenging.

025

Supply Chain (tier 1) mapped in detailand risk assessed

Zero Accidents

Further reduction in the number ofaccidents.

☺

CLOSING THOUGHTSWorking towards Taking Care of Tomorrow is at the heartof what we do at ACCO Brands. We know that it is what
consumers expect of our brands and it is what we expectof ourselves. Our focus on continuous improvement andreducing our impacts therefore remain at the core of what
we do.

THANK YOU

58