CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
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REPORT CONTENTS Message from the CEO .............................................................. 4 2020 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Selected Financial Figures ........................................................... 7 A Leading Innovator ................................................................. 9 Our Commitment to Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Jacob Holm & Sons AG ■ A Systematic Approach .......................................................... 18 Picassoplatz 8 ■ Horizon 2030 .................................................................. 18 4052 Basel Switzerland Reducing our Environmental Impact with Sustainable Solutions .................. 28 ■ Sustainable Manufacturing ....................................................... 30 This report provides the status of the sustainability work done by Jacob Holm & Sons AG for ■ Responsible products and innovation .............................................. 35 the fiscal year of 2020, covering the period from January 1st 2020 to December 31st 2020. Our Role in Society ................................................................. 38 We welcome feedback, including suggestions, comments and questions. ■ The Pandemic in the Community ................................................ 40 People of Jacob Holm ............................................................. 44 Please direct any feedback to Carmelo Carrubba, Corporate Vice President of Strategy and Sustainability, at carmelo.carrubba@jacob-holm.com. ■ Protecting our people during a pandemic ......................................... 46 ■ Employee Health and Safety .................................................... 47 GRI Index .......................................................................... 54 Key Performance Indicators ........................................................ 58 2 3
SUSTAINABILITY IS SUSTAINABILITY A GLOBAL EFFORT AT JACOB HOLM At Jacob Holm we are committed to making a positive the Jacob Holm process and the legacy of the Sontara® Soultz, France, has doubled every year for the past 3 years Achieving these goals will require new technologies, new impact on the world - fostering the well-being of people, Technology. I am encouraged to see the growing interest while the same site is leading the way with zero waste partnerships and new ways of working. Some of these protecting the planet and contributing to the prosperity in sustainability risks and opportunities from investors to landfill. With the launch of project BOOST, we are innovations will have to be developed in partnership of our communities. and the engagement from all stakeholders in creating a increasing our operational efficiency even further. This between public and private stakeholders, while some sustainable world. Moving forward, we will continue to enables us to reduce our consumption of energy and are already available and need to be fine-tuned and In 2020 the global pandemic affected everyone's lives raise the bar and set new and higher sustainability targets. water and bring down our environmental footprint even implemented with speed and efficiency in coming years. and tested the cohesion of our societies in ways we Achieving these will help us mitigate sustainability risks to further per unit of production. To make sure that we stay on track and make continuous had not experienced before. However, amid the unique the business that are amplified by increased pressure on improvements, we will communicate updated 2025 challenges of 2020, our employees and our business natural resources and climate change. Sustainability challenges are too wide and deep for sustainability targets and strategies during 2021. I am demonstrated how strong we are as a team. I would like anyone to solve them in isolation. Therefore, Jacob Holm convinced it will help us create value for our people, for to thank all our people for their continued support for The health of our commercial business enables us to is partnering with our customers to generate sustainable customers, for communities, and for society at large. each other, for Jacob Holm and for our customers when act on our commitment to sustainability and corporate solutions through co-innovation. In support, we continued it really mattered. responsibility. In 2020 we delivered top line organic in 2020 to promote the Jacob Holm sustainability growth of 16% and an EBITDA at DKK 314 mill, a 135% eCO2quation app that empowers customers to make Both our people and our products played a role in growth compared to 2019. informed decisions and reduce the carbon footprint of fighting the COVID-19 pandemic during 2020. We are finished products. humbled to see our products leave converting facilities Being engaged in our communities is an essential part as personal protective apparel to become part of the of who we are at Jacob Holm. In 2020 we invested As we move forward, we are aligning our sustainability first line of protection for emergency response workers in local communities, supported charities worldwide, ambitions to the UN Sustainable Development Goals around the world. To amplify our efforts, Jacob Holm and our employees volunteered through our outreach (the SDGs) and the Paris Agreement’s 1,5 °C climate collaborated with local non-profits and business partners programs, e.g. Asheville employees donated school items goal. In doing so, we are setting the course towards a to produce protective face masks and isolation gowns for to children in need and Sontara collaborated with the 2030 horizon with the aspiration to become carbon health care workers, first responders, adult care facilities “Ciudad Para Todas” program to help training and finding neutral, eliminate waste from our operations, grow our and others in need. jobs for people with special needs. 100% recyclable or biodegradable product portfolio and continue to create sustainable value to people in the We have always believed that the success of our business In parallel to our focus on the people dimension of communities that we are part of. depends on our people. Their health and safety must sustainability, I am encouraged by seeing the growing remain a top priority as we pursue our business goals. commitment in the world to sustainability. As pioneers In 2020 we continued our efforts to eliminate accidents in natural fibers and leaders in sustainable solutions, and enroll employees in our health care program. we take on the responsibility to be part of the solution to environmental problems and climate change. As an As we create shared value for business and society, we example of recent achievements, the share of recyclable build on more than 226 years of Jacob Holm history and or biodegradable products from our production site in our heritage in combination with cutting-edge products, MARTIN MIKKELSEN CEO of Jacob Holm Group 4
SUSTAINABILITY 2020 SELECTED FINANCIAL HIGHLIGHTS FIGURES FISCAL YEAR 2020 2019 2018 Revenue 2.638 2.271 2.287 Ebitda 314 134 140 Organic Growth 16% -1% 1% Total Assets 1.621 1.586 1.686 60MM ESSENTIAL WORKERS 2,500 MEALS PROVIDED TO Total Equity 272 278 317 PROTECTED BY ESSENTIAL WORKERS Number Of Employees (FTE) 772 673 682 SONTARA® GOWNS & LOCAL FAMILIES Units = Dkk Mill. / Source = Annual Report CO2 6% DECREASE IN TOTAL 48% INCREASE IN RATIO OF 22% DECREASE IN RECORDABLE 13% INCREASE IN NUMBER 25% DECREASE IN WATER CARBON EMISSIONS WOMEN IN MANAGEMENT INCIDENT RATE (RIR)* OF FULL-TIME EMPLOYEES CONSUMPTION PER KG PER KG PRODUCT* POSITIONS* OF PRODUCT* *COMPARED TO 2018 BASELINE 6 7
SUSTAINABILITY A LEADING INNOVATOR Jacob Holm is a leading innovator of nonwoven fabrics and finished goods. We manufacture nonwoven products for performance applications in personal care, hygiene, health care, beauty care and critical cleaning, as well as high performance material for protective equipment and other highly technical applications. As a manufacturer of nonwoven products, we use natural and synthetic raw materials and hydro-entangle them to a nonwoven fabric. Our fabrics are sold as roll goods to converters who produce the finished product sold to end users. We perform converting activities for critical cleaning applications at some of our production sites. For generations, we have been highly focused on maintaining and developing sustainable products and operations that minimize the environmental impact. Today, we offer sustainable solutions with fibers made from natural and bio-degradable resources and free from chemicals and adhesives. NONWOVEN SUPPLY CHAIN RAW MATERIAL SUPPLIER MANUFACTURER CONVERTER SELLER END USER ■ natural material from pulp and paper producers ■ produces nonwoven roll transforms roll goods into private consumers or ■ ■ ■ global brand leaders and ■ cellulose / cotton / pulp ■ fiber producers goods from staple fiber and finished product leading retailers industrial customers ■ synthetic material from oil ■ chemical suppliers other raw material input ■ sells under own brand or as a private label store brand 8 9
OUR PRODUCTS SUSTAINABILITY AND MARKETS Jacob Holm commercializes four brands that are used for many different applications: Jacob Holm serves customers all around the globe with our fabrics and solutions. Our primary markets are North strong web formed by hydraulic America and EMEA. entanglement of various fibers We organize our business in 3 business units: sustainable and ultra-pure, no binders, chemicals or adhesives Sontara® Professional provides superior performing products for critical cleaning applications, a full value offering and filtered water of drinking quality and our manufacturing new product innovation to essential industries. environment and air quality adhere to the highest standards Health and Skin Care is a trusted partner to long term customers in Medical and Skin Care. We offer solutions compliant with existing regulatory requirements, superior performance and brand value. STRONG PURE CERTIFIED Personal Care is the leading co-innovation partner for global customers in consumer wipes, dispersible wipes and patented dispersible wipe material with hygiene products, enabling growth in sustainable solutions and circularity. best-in-class dispersibility 100% biodegradable material, which is made of custom-designed fiber blends from sustainable natural resources softer and loftier than other commercially available offerings with higher wet strength DISPERSIBLE BIODEGRADABLE SOFT ON SKIN best fit in substrates for liquid handling and cleaning efficiency best in class opacity, with a wide range of available basis weights 100% biodegradable and sustainable fabrics HIGH STRENGTH HIGH OPACITY NATURAL a fabric with basis weights as low as 15 gsm, providing high performance and soft comfort needed by end-users the key features of SoftLite include excellent stretch and recovery, ultimate softness at required strength, and skin sensitivity our fabrics are engineered to meet the demands for wicking and fluid distribution in disposable Hygiene products HEADQUARTERS SALES OFFICE PRODUCTION SITE LIGHTWEIGHT STRETCH & LIQUID RECOVERY MANAGEMENT 10 11
SUSTAINABILITY GLOBAL PRESENCE JACOB HOLM SUBSIDIARIES Jacob Holm Headquarters is located in Switzerland. & SONS AG - SWITZERLAND We manufacture nonwoven fabrics using proprietary technology in France and Spain as well as in the US in Tennessee and North Carolina. Our French facility in Soultz has been a zero waste-to-landfill site since 2013, and the most versatile plant able to serve all our markets. & SØNNER HOLDING A/S - DENMARK In Asheville, we have a high-speed line together with our latest brownfield investment - a proprietary, patent granted air-lace line. In our facilities in Old Hickory, TN, US and Asturias, Spain we manufacture roll goods for Health and Skin Care, Industrial and High-Performance material applications leveraging the unique Sontara® technology and we have the capabilities to & SØNNER A/S - DENMARK AG - SWITZERLAND convert them into finished goods for Automotive, Aerospace, Printing, and other critical cleaning industrial applications. Finally, we have sales offices located in every major market, including Asia and Latin America, to ensure proximity to our INDUSTRIES INC. - US OLD HICKORY INC - US A M E R I C A I N C. - U S INC. US customers and close connection to local needs. Our operational footprint reflects an optimal balance between local presence, diversification, and economies of scale. ASTURIAS S.A.U. - SPAIN INDUSTRIES SAS - FRANCE JA PA N G .K NONWOVENS CO. LTD • CHINA SOUTH ASIA SDN. • MALAYSIA MEXICO S.A. DE C.V ARGENTINA S.R.L KOREA CO. LTD. 12 13
SUSTAINABILITY OUR PHILOSOPHY LIFE AT JACOB HOLM WE ARE PIONEERS Jacob Holm is more than 226 years old. We have a proud legacy of innovating and adapting to new needs of our OUR CORE To develop unique nonwoven fabrics We want to conquer new markets, customers and society as we combine valuable lessons from centuries of Scandinavian heritage with pioneering that meet customers' challenges, always. We developed SoftFlush® products and process technology. VALUES you need exceptional people with FAST, a dispersible wipe that breaks Our founder Mr. Jacob Holm opened a grocery store in Copenhagen, Denmark in 1794. Over the years, he ventured strengths that combine extensive up like toilet paper and has the into shipping and ships’ fittings, including the production of ropes. Over more than 2 centuries of evolutions, in the know-how with an entrepreneurial strength of a wet wipe, and SoftLite, 1950’s the company started the manufacturing of synthetic fibers. spirit. That is why at Jacob Holm a high performing hygiene fabric with we nurture an open, multifaceted basis weights as low as 15gsm. Such As a natural extension to fiber production, the company established its first nonwovens operation in France in 1995. In and diverse culture. We encourage developments are a testament to 2005, this was followed by the expansion to North America with the establishment of a first nonwoven production line our people to contribute innovative our entrepreneurial spirit. We are in North Carolina. ideas that drive the direction of our also committed to exploring new company and market segments. segments. This dedication makes us Later, in 2014, Jacob Holm acquired the Sontara® business from DuPont. This expanded our global reach, more than the pioneers of the nonwoven industry. doubled our footprint in the nonwoven industry and extended our portfolio with new, high tech segments and products. WE ARE YOUNG WE ARE DARING WE ARE HUMAN The Jacob Holm Way We are young in spirit. In spite of our We dare, experiment, and try our We are human, giving us the ability Today, the Group remains privately owned by the Mikkelsen family who has guarded our values and culture long history, we continue to evolve hand at every challenge brought to to adapt to the expectations of through generations. and take risks. We continuously strive us. We take risks, test and learn from end users. Our products are part of to add value to our products. We our mistakes. We innovate to be at everyday life; We listen to the needs To be a pioneer and develop unique sustainable nonwoven fabrics and solutions that meet customers' and society’s are agile as we constantly reinvent the forefront of our technologies. of end users to bring the smartest challenges, Jacob Holm employs more than 700 people with exceptional ability. ourselves and adapt to ever solutions to market. Our people combine extensive know-how with an entrepreneurial spirit and sustainability as a core value in everything changing markets. we do, day in day out, and we have a young, daring and human spirit. This enables us to continue to evolve, despite our long ancestry. This also allows us to take risks, to test and learn from our mistakes which in turn helps us to innovate and be at the forefront of sustainable technological developments. All this gives us the ability to learn and quickly adapt to the ever-evolving expectations of all our stakeholders and the needs of society. Our values represent the foundation of every choice we make as we strive to realize our vision. We refer to them as 'The Jacob Holm Way': S-SPEED. 14 15
OUR COMMITMENT Despite our long history, we remain agile and constantly reinvent our business, while being mindful of global TO SUSTAINABILITY sustainability challenges that impact markets, environment, people and communities. We are determined to do our part in solving these challenges. Our fundamental approach is to ensure that sustainability is an integral part of our business, and that we truly engage with our stakeholders on the matter. It is building on the firm belief that what is right for the people and the planet is right for the business. As such, sustainability is guiding us to take responsible decisions in every aspect of the business — from the innovative design of new, plastic-free or recyclable products, to the environmentally friendly use of water and energy in our manufacturing facilities that are working tirelessly to make responsible use of raw materials and reduce waste. The Mikkelsen family, owners of Jacob Holm, run a diverse forestry and agriculture business in Denmark and Sweden. The sustainability efforts on this land have taken shape over the past 3 decades and have led to an increase of the forested area of 19%, doubling the wetlands portion on former farm and forestry lands, PEFC certification for all forests, registering 7.5% of forests for biodiversity as primary objective and reserving 5% of farmland for fauna-improvements. Being actively engaged in the communities that host our facilities is a given for us. Wherever you find a Jacob Holm office or factory you will see that our people are involved in enhancing human well-being and helping those in need through donations or volunteering. Throughout it all, the health and well-being of our people is a key priority. Consequently, the enforcement of a zero-accident culture will forever be a core element in our approach. 2017 2020 2016 ■ Launch of award- ■ Launch of eCO2quation app 2021 winning sustainable ■ Maria Curran is named site ■ IDEA award for SoftLite, manager in Candler and is the ■ Jacob Holm is the first substrate for Baby Care 2010 2015 a solution that enables first female Jacob Holm plant spunlace nonwoven 2012 2013 reduction of basis weight Branded player leader in the US manufacturer to join the ■ Launch of baby wipe ■ First SoftFlush® ■ Launch of cotton ■ Soultz becomes zero of nonwoven substrate ■ Jacob Holm is rated by UN Global Compact as program with regen cotton nonwoven line (patent ■ Sontara® Spain kicks off top sheet waste to landfill site Sustainalytics and ranks #1 participant ■ Obtained GOTS (Global granted) offering ■ Jacob Holm issues initiatives in support to unique dispersible and in the textile sub-industry Organic Textile Standard) ■ Jacob Holm wins 2020 the first Corporate "Una Ciudad para Todos" compostable solutions certification Index Innovation Award Sustainability Report 16 17
SUSTAINABILITY HORIZON 2030 ■ 2030 Sustainability Visions and Goals We lead the nonwoven industry sustainability journey through uncompromising commitment to run the most sustainable manufacturing process, offer the most sustainable portfolio, be the most attractive employer and the most admired business in our communities. Sustainable Sustainable Solutions Community Prosperity People & Responsible Manufacturing We develop solutions for We enhance the quality Business We pioneer sustainable our customers that of life in our communities We promote diverse, solutions in our operations, enable the creation of through pro-active healthy & safe working In 2020, we took our sustainability strategy to the next level in order to and we commit to partner sustainable products. engagements with social conditions supported mitigate business risk caused by sustainability issues and amplify our role with key stakeholders to lead progress. by corporate culture, the change. governance, processes, data in tackling global challenges such as climate change, plastic waste and & management tools. human well-being. Building on our past, strong performance we will, starting in 2021, accelerate our sustainability impact under the banner of our new Horizon 2030 sustainability strategy. 2025 Goals – Leading The Journey 2030 Goals – 100% Sustainable 100% 0% The purpose is to create a positive, sustainable impact on 5% 10% Carbon Neutral Manufacturing Waste markets, environment, people and communities. With Water Reduction* Energy Reduction* Manufacturing to Landfill Horizon 2030, we are enhancing our sustainability efforts with the aspiration to be a zero carbon, zero waste and zero accident business that is offering a reusable, recyclable, biodegradable, 15% 30% 100% or compostable alternative for 100% of our GHG Reduction* Landfill Reduction* Portfolio Available as portfolio and creating shared value for the Reusable, Recycled, Recyclable or Compostable business, our people and communities. *reduction is intended per Kg of product from the 2018 baseline Since technologies and ways-of-working need to be upgraded or innovated to achieve the Horizon 2030 vision, we rely on our culture of speed, innovation, and our ability to dare trying new things to succeed. Hence, to measure progress and hold ourselves accountable to make visible progress, we are setting specific mid-way targets for 2025. These will be strengthened annually, as we develop and implement sustainable solutions and improve our performance inside our business and across our value chain. ■ A Systematic Approach Our 2030 vision and 2025 targets are aligned with the UN Sustainable Development goals focusing on those areas In 2020 we formalized our sustainability program and created a Group Sustainability Steering Committee with our CEO where we have the most impact. and senior management representation that covers material sustainability issues. The Committee is instrumental in translating group wide strategies into local action, with the sharing of new and best practices. Locally, site managers are Recognizing that sustainability challenges outside our facilities are best solved together with external stakeholders, we engaged together with representatives from Human Resources departments as well as Environment, Health and Safety will scale-up existing partnerships with our customers and build new ones with suppliers, NGO’s, industry associations (EH&S) leads. In this way, we leverage our global capacity to scale the reach and the impact of sustainable solutions. At and authorities. the same time, our approach enables local entities to engage in local issues. By taking a dual approach — maintaining a global perspective and taking local actions — we ensure that Jacob Holm remains a relevant and value-adding corporate citizen in every one of our host communities, and we simultaneously share the benefits of our global presence and scalability with stakeholders across borders. 18 19
SUSTAINABILITY ■ What Matters ■ Our Key Stakeholders In line with our colleagues in the nonwoven industry, our business model is associated with a number of inherent Managers and employees across the Group engage with multiple stakeholders in their daily work, and the feedback is sustainability risks as well as positive impact opportunities. Sustainability is a global effort for Jacob Holm and important for determining relevant material sustainability issues. keeping focus on what matters in that perspective is fundamental for our business success and our stakeholders. We are in continuous dialogue with multiple key stakeholders through Jacob Holm’s management, marketing, sales, and Based on our skilled employees’ analysis, science, stakeholder dialogue, and management prioritization, we production departments, and we also engage with external stakeholders such as raw material suppliers, customers, end- continuously validate and determine what sustainability issues are material to Jacob Holm and our stakeholders by users, and product developers within the nonwoven industry. The aim of our engagement is to uncover expectations to applying criteria and filters of risk, responsibility, and strategic opportunity assessment. Further, we apply external Jacob Holm’s sustainability work and provide input for the determination of our material issues. ESG-ratings and other third-party analysis of Jacob Holms’ sustainability performance in our determination of Resulting from our stakeholder dialogue and supporting analysis, we have identified the following stakeholder groups to material issues to manage. be relevant for our sustainability work and our material issues: Another important modifier in the process of determining materiality are the UN Sustainable Development Goals. The goals provide a frame of reference in our strategy and a perspective on the business opportunities and risks that lie within our sustainability work. In 2020, we conducted a materiality assessment according to our guiding principles. END-USERS TOPIC ABOUT Continuing our efforts to minimize Jacob Holm’s environmental impact by reducing waste Manufacturing Waste generation from operations and products and integrating circular waste processes. BUSINESS Taking the needed steps to reach carbon neutrality by reducing carbon emissions from our TO EMPLOYEES Carbon Emissions BUSINESS operations and products. Water Use Using water responsibly and protecting the finite resources of freshwater. Pushing the limits for sustainable nonwoven fabrics and solutions through tireless innovation, Sustainable Products experimenting and promoting the exceptional ability of our people Ensuring a solid and appropriate foundation of policy commitments and processes that help us Human Rights prevent and mitigate adverse impacts on human rights, i.e., health and safety, labour rights, rest, and leisure. POLITICAL LOCAL Promoting diversity and inclusion o ensure the best possible development of both business and INSTITUTIONS COMMUNITIES Diversity And Inclusion collegial relations. Human Rights Ensuring that our work on responsible purchasing prevents adverse impacts on human rights and (Supply Chain) complies with globally recognized principles and guiding industry standards. Engaging in local community activities where we operate to increase Jacob Holm’s social value INDUSTRY Community Engagement creation and stand out as a good corporate citizen. ASSOCIATIONS Ensuring a solid and appropriate foundation of policy commitments and processes that help us Responsible Business prevent and mitigate adverse impacts on anti-corruption, environment, and human rights when we Relationships interact with business relations, including customers, suppliers etc. Maintaining a systematic approach to sustainability in Jacob Holm through appropriate policy Sustainability Governance commitments and effective management systems and processes. 20 21
SUSTAINABILITY PERSPECTIVES ON RISK Being a global enterprise that develops, manufactures, and distributes nonwoven fabrics and solutions to customers around the world is inevitably associated with the risk of causing or contributing to adverse impacts on human rights, the environment and anti-corruption. An external ESG (environment, social, governance) audit by Sustainalytics in 2020 concluded from an internal and external scan that Jacob Holm is a “low risk” company, and they confirmed that Jacob Holm continues to deliver best- in-class performance in ESG matters. Some of our risk perspectives include: HEALTH AND SAFETY RISK ■ Health and safety risk regarding the well-being, safety and security of our employees in a fast-paced environment, especially during COVID-19 which significantly increased demand of several Jacob Holm products. ENVIROMENT RISK ■ Environment risks due to non-compliance with environmental regulations and directs emissions to air and water, and waste to landfills and incineration. CLIMATE RISK ■ Climate risks due to challenges with reducing carbon emissions in our operations in order to meet our goals of carbon neutrality and customer expectations. HUMAN RIGHTS RISK ■ Human rights risk due to immature systems for identifying, preventing, or mitigating actual and/or potential adverse impacts on principles defined by the UN Guiding Principles on Business and Human Rights or OECD’s Guidelines. Both regarding Jacob Holm’s operations and those of our business relationships. PRODUCT RISK ■ Product risks due to unintentional quality defects or other errors that may result in the product being discarded or redone. Consequently, we are especially focused on maintaining and developing an agile organization that adheres to sound practices and continuously strengthens its resilience to avoid adverse impacts on our business, our customers and society at large. We aim to hedge risks through strong management, leading industry certifications, strategy, policy commitments and practices that align with globally recognized principles for responsible business conduct and industry standards. 22 23
SUSTAINABILITY ■ Managment System The Group’s sustainability efforts are being guided by a range of policy commitments and management systems that ■ Certified Offerings ensure a solid and appropriate foundation for our work. Sustainability, innovation and quality are nobility marks of Jacob Holm and as the global industry and innovation leader in spunlaced nonwoven fabrics, we are proud of being able to offer a wide range of sustainable, plastic-free, and All the Group’s plants have a management team and EH&S committees in charge of driving the sites' initiatives on safety. biodegradable products, based on plant-based resources. In 2020, we expanded the charter of these teams to embrace Health Safety and Sustainability through the creation of our Jacob Holm Sustainability Committees. To ensure integrity in our product offerings and operations, Jacob Holm maintains a wide range of globally recognized certifications that support a systematic approach to sustainable product innovation, product safety, quality, SUSTAINABILITY STEERING COMMITTEE environmentally friendly operations, and the well-being of our employees. We value the environment so we maintain eco-friendly certifiied fabrics, processes and products. We are innovative and open to more certifications as needed or ROLE MEMBERS requested. ■ Provides guidance and strategic direction ■ Chair: CEO on sustainability Directors and managers in the Group are responsible for implementing and maintaining our certifications with support ■ Corporate VP of Strategy and Sustainability from process managers and staff in general. ■ Approves vision and goals ■ COOs ■ Ensures progress towards goals and vision ■ Business Units Presidents ■ Foster the Sustainability culture throughout the organization ■ Corporate Vice President Research and Development CVP STRATEGY AND SUSTAINABILITY ROLE ■ Under the guidance of the steering committee, ■ Oversees the sustainability data aquisition, analysis Organic Enviromental Fine to Flush® sets company vision, goals and milestones and reporting Certify by Ecocert Management WIS 4-02-06:2019 ■ Drives Sustainability agenda of the Company, ■ Maintains relationship with external stakeholders, Greenlife – F32600 System FF/045/0221 135102/1093417/1 ISO 14001 setting priorities and resources needs including customers, international bodies, ■ Ensures effective resource allocation to support suppliers and other supply chain partners as execution of strategic initiatves required to advance the Sustainability agenda of the Company ■ Provides tools and leads the processes necessary ANCE M FETY M C TUR I NG to drive the company towards attainment of the ■ Drives engagement of all Jacob Holm employees UR Quality Assurance SA A Health and Safety FA Good Manufacturing A S D U NA PR L I TY AS NA LTH AN D MAN sustainability goals Is an ambassador of JacobHolm Sustainability Management Management Practices G E ME NT ACTI CES ■ GEMEN System 45001 System 22716 ISO 22716 Leadership OO EA UA ISO 9001 ISO 45001 H T G Q PLANT-LEVEL SUSTAINABILITY COMMITTEES ROLE MEMBERS PEFC™ FSC® SFI® 10-31-2482 Soultz : FSC-C001586 SFI-01 724 ■ Sets the plant vision, goals and milestones Candler : FSC-C116044 ■ Chair: Site manager consistent with the Company’s goals ■ Lead: Sustainability advocate www.fsc.org ■ Drives Sustainability agenda and engagement of plant employees ■ Enginerering, HR, EH&S leader in each plant ■ Ensures effective resource allocation to support execution of key initiatves OK OEKO-TEX® bio-degradable CQ 1142/1 ■ Is an ambassador of Jacob Holm Sustainability S538 SOIL IFTH Leadership in the local communities 24 25
■ Our Policy Commitments SUSTAINABILITY The Group’s commitment to leading sustainable development in the ■ How We Measure Progress nonwoven industry is supported by a range of policy commitments that We continuously work to develop and ensure a high-quality standard of our sustainability data and thereby a robust guide our business decision making at all levels of the organization and basis for monitoring and reporting on our policy commitments, our efforts, and results. We base our calculations and provide a frame of reference for how we want to conduct our business, reporting principles on leading standards and methods. both in relation to creating targeted developments and improvements as well as to counter risks. This is the Group’s first sustainability report. The report has been prepared with references to Global Reporting Initiative (GRI) Standards. In the coming fiscal years, we will broaden the scope of our data collection and add more KPIs and GRI Our general commitment and the underlying policies are applicable standards to our reporting to increase transparency and systematically report on the developments of our sustainability to all of the Group’s processes, products, and organizational units and vision and Horizon 2030 strategy. we encourage our business relationships to follow the same principles that we hold ourselves to which we hold ourselves accountable. Our top management and Board of Directors review our policies yearly and update them as needed. In addition, we have introduced the Jacob ■ We Support the UN Sustainable Development Goals Holm PolicyApp®, which provides all of our employees with instant user- friendly guidance to our compliance policies. With the Group’s commitment to leading sustainable development, we seek to contribute to the UN Sustainable Development Goals (SDGs) in the best possible way. The global goals give us a frame of reference in our strategy Our policies and codes cover areas such as human rights, equality of and a perspective on the business opportunities that lie within our sustainability work. treatment, animal testing, environmental protection, anti-corruption, whistleblower schemes, working environment, quality, responsible Our Horizon 2030 strategy will increase the Group’s positive impact on the climate and environment as well as our global supply chain management, product development and more. employees, the local communities we serve, and not least the health and safety of our end-users. OUR FOCUS Key Messages In Our Policy Commitments We respect the rule of law and comply with national regulations in all countries in Rule Of Law which we operate. SUSTAINABLE MANUFACTURING We do not accept any form of bribery, corruption, or fraud and we commit to being open and Anti-Corruption transparent about our business activities. We respect the human rights of our employees and provide our employees with a professional, SUSTAINABLE Human Rights safe and secure working environment. PRODUCTS We are committed to conserving natural resources and promote and support environmentally sustainable practices. All our companies fully comply with or exceed the local legal requirements Environment for environmental protection. We will continuously work to reduce our own adverse environmental (including climate) impacts by developing climate and environmentally friendly products and operations. COMMUNITY PROSPERITY We are committed to developing greater transparency in our supply chain and to promoting high Business Partners ethical standards among our suppliers. We are committed to being a good corporate citizen and contribute to the well-being of the local PEOPLE AND RESPONSIBLE Local Community communities where we operate. BUSINESS 26 27
CHAPTER ONE REDUCING OUR ENVIRONMENTAL IMPACT WITH SUSTAINABLE FABRICS AND SOLUTIONS SUSTAINABILITY 28
SUSTAINABLE SUSTAINABILITY MANUFACTURING We acknowledge the many challenges in delivering short term improvements and turning our 2030 vision into reality. New technologies, new partnerships and new ways-of-working need to be invented. To make the process as fast and efficient as possible, we invite stakeholders up and downstream to work with us and implement new sustainable systems across the value chain with speed and impact. ■ Our Approach ■ 2025 Targets Jacob Holm’s vision is to be a zero-impact manufacturing business in terms of our footprint on climate and the environment in the next decade. In a journey towards the 2030 vision, we commit to pioneer more sustainable To drive continuous progress, we have set ourselves environmental targets for the year of 2025. Compared to a solutions in our manufacturing sites and continue to innovate cutting-edge fabrics and materials. 2018 benchmark, we will reduce our environmental footprint from our production sites in terms of greenhouse gas emissions, water consumption, energy consumption and waste-to-landfill. For every environmental indicator, Our environmental commitment is supported by our Code of Conduct and has a particular focus on greenhouse gas performance is measured relative to total production volumes. emissions, energy, water and waste from our production sites. Our policies commit all the Group’s production sites to take a precautionary approach to environmental risks and carry out programs to reduce our environmental footprint and lower our greenhouse gas emissions. To implement sustainable production, we take action in five areas: Maintenance, Process Optimizations, Raw Materials, New Technologies and New Product Design. In support of our systematic approach, we manage our production sites 10% By 15% CO2 2025 according to best practice management systems. These are certified according to global standards as described earlier reduction in energy reduction in GHG in this report. consumption emissions 5% reduction per kg production vs 2018 30% reduction in net water use waste to PROCESS RAW MATERIAL NEW NEW PRODUCT HOUSEKEEPING OPTIMIZATION SUBSITUTION TECHNOLOGIES DESIGN These targets cover the environmental footprint from our production sites. The reduction targets for greenhouse Improvements in Making Shifting to more Enabling lower Minimize impact gases, include scope 1 (direct emissions from owned or controlled sources) and scope 2 (indirect emissions from the work practices adjustments enviromentally resource throughout generation of purchased electricity, steam, heating and cooling consumed by our production sites). and maintenance to processes sound inputs consumption, product lifecycle to increase waste efficiency generation, and Emissions from other sources from upstream and downstream activities are excluded in the group targets as is. emissions However, we will include more emissions data from scope 3 (indirect emission from up- and downstream activities) and set reduction targets in due course when the scope 3 baseline is complete. Sustainability is a key driver in our culture and behaviors, and we will continue to improve our performance everywhere In everything we do, we rely on the world-class expertise and strong engagement of our people. As a natural in the business, for example by encouraging our people and partners to adopt a sustainable lifestyle in and outside the consequence, we promote environmental consciousness among our employees through virtual and on-site workplace with responsible use of products and services. sustainability working groups and integrate environmental considerations in our activities. This includes, for example, the development and use of sustainable production processes and products as well as a reduction of the consumption of both raw materials and natural resources. Lowering consumption of raw materials, energy and water as well as lower production of waste nets a smaller climate impact. These considerations apply to decisions both internally in the Group and in the ongoing dialogue with our business partners. 30 31
2020 Achievements Of the Jacob Holm manufacturing Index numbers Key Performance Indicators (KPI) relative to production volume plants, the Soultz facility boasts (year 2018=100) the lowest environmental impact, Name 2018 2019 2020 2018 2019 2020 leading the way within our Production Total KG 105,569,781 99,250,084 124,434,765 100 94 118 corporate family and across our Gas Kwh 97,912 99,464 122,268 100 102 125 industry. The share of recyclable Electricity Kwh 172,110 175,589 197,953 100 102 115 or biodegradable products from the production site has doubled Energy Kwh (Gas + Electricity) 270,022 275,053 320,221 100 102 119 every year for the past 3 years. At Water M3 510,176 460,992 451,261 100 90 88 the same time Soultz is leading Waste KG 7,916,131 7,892,720 9,983,624 100 100 126 the way with zero waste to landfill Waste to landfill KG 6,393,341 6,523,837 8,564,627 100 102 134 and sustainable sourcing of water and the ability to recycle the vast Gas Kwh per Production Total Tonnes 0.927 1.002 0.983 100 108 106 majority of it. Electricity in Kwh per Production Total Tonnes 1.630 1.769 1.591 100 109 98 Energy Kwh (Gas+Electricity) per Production Total Tonnes 2.558 2.771 2.573 100 108 101 Water M3 per Production Total Tonnes 4.833 4.645 3.626 100 96 75 Waste Kg per Production Total Tonnes 74.985 79.524 80.232 100 106 107 Waste to landfill Kg per Production Total Tonnes 60.560 65.731 68.828 100 109 114 Scope 1 emission, KG CO2e per Production Total KG 0.171 0.185 0.181 100 108 106 Scope 2 emission, KG CO2e per Production Total KG 0.594 0.631 0.543 100 106 91 Scope 1 and 2, KG CO2e per Production Total KG 0.765 0.816 0.723 100 107 95 Scope 3 emission, KG CO2e per Production Total KG 0.040 0.044 0.033 100 111 84 Total emission, KG CO2e per Production Total KG 0.805 0.860 0.756 100 107 94 Scope 1 emission, tCO2e 18,019 18,360 22,482 100 102 125 Scope 2 emission, tCO2e 62,736 62,668 67,513 100 100 108 Scope 3 emission, tCO2e 4,192 4,364 4,127 100 104 98 Total emission, tCO2e 84,948 85,393 94,124 100 101 111 We are pleased to report our environmental performance improvement from 2019 to 2020 on carbon emissions, energy and water consumption, which bring us closer to the achievement of our 2025 targets and put us on the right course towards the 2030 horizon. Although we took a step back on waste to landfill, we will renew our focus and leverage the experience of our team in Soultz France, where we have been zero-waste-to-landfill since 2013. To keep momentum, our priorities for 2021-2023 are to: ■ Set science-based GHG targets (includes scope 1, 2, 3 accounting) ■ Implement initiatives to reduce carbon footprint incl. renewable energy ■ Optimize manufacturing sites to improve asset efficiency and reduce our environmental footprint in waste, energy and water. SUSTAINABILITY 32
■ Lowering Carbon Emissions and Optimizing Energy and Water Use SUSTAINABILITY To continue lowering our carbon emissions in 2021 and onwards, we will be implementing operational efficiency RESPONSIBLE PRODUCTS programs (see below) and developing a plan for renewable energy solutions. Recognizing that systemic changes take time, we will engage in carbon off-setting schemes when necessary to achieve short term goals. We believe that “what gets measured gets done.” Consequently, we will continue to drive our action plans with ambitious targets and continuous performance measurements. Furthermore, in 2021-2023 we plan to commit to the science based targets initiative (SBTi) – a partnership between CDP, the United Nations Global Compact, World AND INNOVATION Resources Institute (WRI) and the World Wide Fund for Nature (WWF). ■ Our Approach ■ Increasing Operational Efficiency Innovation is at the heart of Jacob Holm’s drive to grow sustainably. We continuously invest in new technologies and capabilities and work with and for our customers to develop the best solutions. The challenges in the Hygiene, The use of energy and water and the disposal of waste is a significant driver of financial cost and our environmental Consumer Wipes, Dispersible Wipes, Industrial Wipes, Health Care and Beauty Care markets are our daily motivation. footprint. Our operational efficiency programs address these challenges by reducing our use of utilities and raw Each day we strive to improve the performance of our materials. In our innovation, we take a precautionary approach materials, thereby bringing down manufacturing cost and sharpening our competitive edge. In this way, operational to handling environmental risks and opportunities and we strive to apply environmentally friendly technologies in our efficiency programs benefit the business, the environment and reduce climate risk. production. Equipment upgrades and process improvements are key drivers in our operational efficiency programs. To give a few In our relationship with suppliers and service providers the Group has implemented a Supplier Code of Conduct that examples, the Candler site installed more energy efficient dryers on production lines in 2020. The production site Old clarifies the Group’s ethical expectations and requirements towards our suppliers, as well as internal guidelines to our Hickory concluded the installation of new chillers and the elimination of approximately 1200 meters of poorly insulated employees on avoiding corrupt practices and safe-guarding the environment and human rights. We conduct regular piping by placing the chillers beside the building. On the same token, the Asturias production site installed a new HVAC compliance trainings of all employees and we assess suppliers via self-assessments to ensure compliance with the system (heating, ventilation, and air conditioning) with significantly lower energy consumption. Finally, during 2020 all Group’s code of conduct. When qualifying new suppliers, we collect all certifications a company has, we test fiber production sites implemented energy efficient LED lightbulbs. In one of our production sites, TWIG, this resulted in a materials and products according to our quality guidelines, and we communicate the Group’s Supplier Code of Conduct 30% decrease in energy used. to them. In addition, the Group has provided our employees with an app on their mobile devices that provides easy-to- understand behavioral guidelines in high-risk situations, internally and when dealing with our business relations, including In 2020 we also launched the BOOST flagship program to increase operational efficiency and reduce the environmental suppliers. The Group also operates a web-based whistleblowing hotline that allows employees and other stakeholders to footprint even further. It applies significant investments to upgrade all production, increase line efficiency and bring report cases of corruption or other unethical behavior anonymously. Any reports made are sent to two separate parties down the environmental footprint. for review to further limit the possibility of corruption. Project Boost ■ A Pioneer in Natural Fibers Project Boost was launched in June 2020 in response to the needs of Jacob Holm uses both 100% plant-based and all-natural fibers for our nonwoven products. Our plant-based fibers our partners across the globe for increasing capacity, providing more include Viscose, Lyocell, PLA and Cellulose Acetate. For customers whose needs include all-natural raw materials, we sustainable substrate choices and continuing to uphold our position as an offer cotton, organic cotton, hydrophobic cotton, pulp, flax and hemp. Additionally, we can produce nonwovens with innovation leader in nonwovens. The investment program is significant in recycled polyester. scope, affecting all production lines across all production sites globally. The investment will lead to the creation of at least 57 new full-time positions Using these products, our customers can certify their finished goods to various OK Biodegradable and OK compost across the group’s global manufacturing footprint. True to Jacob Holm’s standards, as well as GOTS and Oeko-tex. It is our mission to enable our customers to meet their end-users’ strictest commitment to sustainability, the investment will target a clear upgrade of the environmental standards. capabilities for utilizing renewable raw materials. Additionally, the upgraded production methodology will further reduce waste and improve production For years we have collaborated with our customers to co-innovate new high-performing products. We are inviting efficiency, thus lowering the carbon footprint of the entire Jacob Holm and existing and new commercial partners to accelerate these partnerships to launch first-to-market sustainable solutions in Sontara® product portfolios. To give some examples of the expected impact consumer products. from Project Boost, the installation of pre-drying equipment is projected to reduce natural gas consumption by 25% in the Asheville, US, site and Today, about 50% of our input fibers are plant-based or all-natural fibers. Our vision for 2030 is to offer a sustainable electricity consumption by 10-15% in Soultz, France. alternative for 100% of our stock-keeping units. This is our humble way of supporting sustainable consumption patterns and making a sustainable life-style possible for all. 34 35
RESPONSIBLE Forming new partnerships to increase recycling PRODUCTS Sontara® Old Hickory produces medical drape and gown products. Our external partner on the product line performs the coating of our material with a moisture barrier, then slits and rewinds our material for our final customers. This coating Celebrating 150 years of makes the material impervious to liquids (blood, body fluids), the Mulhouse Zoo. The protecting the health care provider. Unfortunately, this coating ephemeral work from makes any waste (edge trim, butt rolls, stripped waste) less Vortex-X settled in the desirable for the by-product and recycle markets, and for some Park! This work illustrates time excess materials ended up as waste going to a landfill. the link between the Thankfully, we have entered an agreement with a new recycling textile industry behind partner. As a result, 75 metric tons a month are recycled into the zoo and sustainable new products instead of going into a landfill. development. As an additional next step, we are planning to integrate cradle-to-cradle principles in our production design and innovation process. We do so to decouple economic growth from the depletion of the environment and to make our products ready to enter circular material streams. We acknowledge the many challenges that need to be overcome, but through cross-industry collaboration, innovation and partnerships, we are determined to accomplish our goals and turn our 2030 vision into reality. ■ Products Improving the Quality of Life To Jacob Holm, sustainability is both about doing things right – e.g. reducing our environmental footprint – and doing the right things by making products that enhance people's quality of life. We are proud that most of our products help protect human life in critical situations or improve well-being. To give some examples, face mask components and medical apparel are critical to protecting human life against viruses or other infections. Furthermore, our personal care products and components for personal hygiene and critical cleaning products are essential to maintain human well-being. ■ Art Partnerships Reduce Waste Jacob Holm embraces sustainability on all levels — including the artistic. By partnering with French eco-designer Gérard Dumora, we can contribute our non-woven fabrics to industrial and urban art projects through an initiative Dumora calls Vortex-X. Up-cycling Jacob Holm nonwoven fabrics, Vortex-X creates sculptures of intricate, gossamer strands. Our material is sliced into strings, then stretched and tied in precise angles, gracing public spaces and industrial sites with sculptures called “wipe webs.” In this way, we are not only providing raw materials for artists, but also finding value for the public in industrial waste. Through these art installations, Jacob Holm and Vortex-X hope to inspire viewers and encourage the practice of upcycling. To find out where you can view a Vortex-X exhibition, www.vortex075.com has information about all past and future sculptures. 36 37
OUR ROLE IN SOCIETY CHAPTER TWO SUSTAINABILITY 38
■ Our Approach SUSTAINABILITY Jacob Holm is committed to being a good corporate citizen and contributing to the well-being of the local communities where we operate. Ensuring healthy and sustainable relations with our local communities allows us to build better relations with employees and customers, and facilitates the creation of local community cohesion through Supporting Drive-By Virus Testing active participation in and support for local associations, initiatives, and institutions. At the height of the pandemic, when limited PPE was available, a Sontara® Old Hickory production team member located 60 N95 Masks and over ■ The Pandemic in the Community 350 unopened surgical gowns. We partnered with Meharry Medical College, a HBCU in Nashville, Throughout the Covid-19 pandemic, Jacob Holm Group has been deeply engaged in defending the safety and to donate these plus additional Sontara® fabric well-being of those in our communities. People, communities, and associations were dealt a hard blow and a lot of material to lend our support for their contributions uncertainty when the pandemic struck in Spring 2020. Consequently, our executive management decided to dedicate to drive-by virus testing. resources from each of the Group’s plants to impact those emergency personnel, restaurants, local business partners and neighbors who were severely challenged during the COVID-19 pandemic. Examples of our Efforts to Combat Covid-19: 300 kg of Fabric for Face Masks Our Sontara® employees in Asturias, Spain, expanded their roll donation program to meet the needs of a particularly vulnerable population: residents of private long-term adult care facilities. Helping out Hospitals Right away, we were able to release 300 kilograms In Soultz, France, we were able to gather and of material, which dedicated local volunteers turned distribute FFP3 and FFP2 face masks, hair nets into enough masks for 45 different care facilities and protective suits to regional hospitals and covering a total of 1,952 site locations. pharmacies. 162 Seamstresses in Action Sharing the experience, our team in Soultz, Protecting our Business France, were inspired to provide material to the In Old Hickory, Tennessee, a product development Alsace Citizens Movement against COVID-19. technician located 600 Biosecurity Kits, which This group includes 6 material cutters and 162 include antiseptic spray, disinfectant cleaner, a spray seamstresses divided into 14 teams that have been bottle, 30 surgical masks, 1 digital thermometer, and able to create duck masks according to AFNOR 2 pairs of nitrile gloves. This was enough to fully recommendations of different filtration levels and protect all three of our regional facilities and one gowns for the Mulhouse Sud-Alsace Regional of our American suppliers, another local essential Hospital Group to protect nurses, doctors and local business. government workers. 40 41
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