Sustainability Report 2021 - Ansell
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Sustainability Report 2021
Contents
Statement from Magnus Nicolin 02 Better society 29
Performance snapshot 04 Employee health and safety 29
Labour rights 32
Our operating context 05
Employee engagement 38
Sustainability at Ansell 06 Diversity and inclusion 43
Our material topics 07 Community engagement and investment 45
About Ansell 08 Better environment 48
Sustainable Development Goals 11 Environmental impact and compliance 48
Climate risk 49
Ansell’s value chain 12
Energy and emissions 54
Value chain impacts 14 Water 56
Our stakeholders 15 Operational resource efficiency and waste 58
Better business 16 Responsible supply chains 61
Governance and business ethics 16 Appendices 62
Sustainability governance 19 About this report 69
Our supply chain and business continuity 21
Innovation and product stewardship 23
Biomass
On the front cover and this page:
Biomass provides an alternative energy source
to fossil fuels like petroleum, natural gas and coal.
At Ansell, biomass is used to fuel High Pressure Hot
Water Generators (HWGs) that produce over 40%
of the thermal energy required at Ansell
manufacturing facilities. Two biomass generators
at our plant in Bangkok, Thailand (shown here)
have reduced our consumption of natural gas
resulting in the reduction of 40,000 MTCO2e from
our greenhouse gas (GHG) inventory. In Sri Lanka,
three biomass HWGs are replacing the use of
furnace oil, resulting in a reduction of 39,000
MTCO2e from our GHG inventory.
Ansell Limited
ABN 89 004 085 330
Solar
Over 1.6MW of Solar Photovoltaic (PV)
generation capacity has been installed across
the roofs of Ansell manufacturing facilities in
China, Sri Lanka and Thailand (shown here).
Manufacturing will benefit immensely from the
clean, renewable energy derived from solar
power, reducing electricity costs and GHG
emissions. The large flat-roofed surfaces of
factories make them ideal for solar panel
installation. Solar PV projects currently
being implemented in Sri Lanka, Portugal,
Malaysia and Vietnam are slated for
completion in FY22.
Reverse Osmosis
Wastewater at our Bangkok, Thailand plant
is pre-treated in our effluent treatment plant before
being fed into the newly installed Reverse Osmosis
(RO) plant. In the RO process, treated water is drawn
under pressure through semipermeable membranes
and the concentrate (waste) stream is processed
again as part of the multi-stage system to remove
contaminants and increase the amount of water
recovered for re-use. In FY21, Ansell’s first large scale
RO treatment facility was installed in Thailand
(shown), with future investments being planned in
Malaysia and Sri Lanka in FY22. Once completed,
these projects will result in a 35% reduction
of Ansell’s total water withdrawals.
Ansell Limited
01 Annual Report 2021
Statement from Magnus Nicolin
Despite the disruptions of COVID-19, Ansell has delivered
exceptional financial results and advanced a very ambitious
agenda to expand production and increase automation, whilst
still maintaining our focus on Sustainability.
Magnus Nicolin – Advisor to the Ansell Board of Directors
Mr Nicolin retired as Managing Director and CEO of Ansell on September 1, 2021, having
successfully led the Company since 2010. Mr. Neil Salmon has succeeded Mr Nicolin as CEO.
In FY21, we accelerated efforts to lead our industry in
responsible environmental, social, and governance (ESG)
standards, building on previous years during which we laid the
foundation for our activities and investment in the sustainability
platform. Our Responsible and Responsive Strategy (see page 06)
guides our approach to sustainability and sets out our values
and ambitions across three dimensions: Better Society, Better
Environment, and Better Business.
Despite the disruptions of COVID-19, Ansell has delivered
exceptional financial results and advanced a very ambitious
agenda to expand production and increase automation while
still maintaining our focus on sustainability. Equally important,
we have undertaken new initiatives aligned with global ESG
standards and our Responsible and Responsive Strategy to
advance the sustainability platform. So, while the pandemic
is still very much with us, our performance in key areas
highlighted in this report is driven by a growing momentum
to ensure a more sustainable future.
At Ansell, everything we do begins – and ends – with safety,
from our people to our products. Our approach to safety has
evolved during the COVID-19 pandemic, with Ansell implementing
new safety protocols and working in partnership with public health
authorities and third parties to protect our workers. In addition, in In FY21, Ansell’s state-of-the-art facility in Bangkok, Thailand went live.
FY21 we accelerated a shift of our already strong safety culture to When the expansion at this plant is completed, we will nearly double the
a broadly based ownership of health and safety well beyond senior supply of TouchNTuff®, the world’s best-selling disposable glove for chemical
management and our Environment, Health & Safety managers splash protection. These new lines in Bangkok are the largest, fastest and most
to all operational leadership teams, general managers, and energy efficient in Ansell history.
supervisors at local sites. In this way, we have assigned a shared
responsibility for safety to all leaders while integrating it into At Ansell, everything we do begins – and ends –
key performance indicators, like financial performance. with safety, from our people to our products.
Respecting and protecting the rights of workers is an ethical Our approach to safety has evolved during the
obligation. We have made major strides in our management COVID-19 pandemic, with Ansell implementing
of labour rights in our operations having established our Labour new safety protocols and working in partnership
Standards Management System to set Ansell’s expectations and
standards on labour rights at all our sites. Additionally, we have
with public health authorities and third parties
set industry-leading housing standards for migrant workers in to protect our workers.
our employ (see photo on page 36). We will have completed
initial third-party Sedex Members Ethical Trade Audits of our At the end of January 2021, we completed a program to reimburse
manufacturing plants in Brazil, Portugal and Lithuania by the recruitment fees for migrant workers in our operations. Ansell has
publication of this report. Annual third-party audits were never charged nor benefited from any recruitment fees paid by any
successfully completed at all our Asian plants. Our new factory migrant worker. These fees were demanded by independent agents
in Russia began operations in June 2021 and our labour standards in the home countries of migrant workers to facilitate their coming
management system has been implemented at this site, with an to Malaysia and had no connection to Ansell. Although COVID-19
initial audit scheduled for FY22. has placed the hiring of migrant workers on hold, our Zero
Recruitment Fee policy remains in place.
Ansell Limited
Sustainability Report 2021 02
The safety of our workforce remains our key
priority through COVID-19 as we roll out
vaccinations and maintain safety measures
across our manufacturing operations.
We have demonstrated that, rather than impeding profitable growth,
corporate sustainability objectives can support it.
In 2021, we developed a risk-based Supplier Management This year, we launched foundational work to establish a strategy
Framework which will guide and support labour standards by which Ansell would be able to commit to significant longer
improvements in our supply chain. These enhancements include term reduction of our carbon footprint, in line with the Paris
processes for supplier selection, contracting, and ongoing Agreement. This effort is progressing with a timeline to present
management, and ways to standardise processes relating to our conclusions and recommendations to the Executive
identifying, assessing, and managing modern slavery risks across Leadership Team and the Board of Directors later this year.
our supply chain. While we are proud of our progress to date, We are also embedding sustainability principles into new
there is more for us to do to manage modern slavery risks. We product development and using life cycle assessments to
are committed to working with suppliers to improve their labour explore solutions that will decrease the environmental impact
practices and secure improved conditions for their workers. of our products and packaging (see page 23).
We significantly accelerated our strategy to achieve our This is my final sustainability message as our new CEO Neil Salmon
environmental targets in FY21, conducting fundamental analysis takes up the baton. In the coming pages, I am proud to inform
and mapping out and identifying a $23m portfolio of water, you of the exceptional progress we have made in embedding
energy, and waste projects. This plan represents Ansell’s largest sustainable practices into our business over the past decade.
consolidated investment to date in sustainability initiatives at We have demonstrated that, rather than impeding profitable
our manufacturing facilities. We have also formalised senior growth, corporate sustainability objectives can support it.
responsibility and ownership of environmental measures and With the strong commitment shown by our Board and the
performance by linking key performance indicators to the Executive Leadership Team, we can continue to foster innovation
accomplishment of environmental targets and programs to assess and inspire our talented workforce to generate lean, green
the performance of Senior Vice Presidents, as well as all Vice processes and sustainable new products, and do it better year
Presidents, and General Managers on the operational team. after year.
Assigning senior management ownership drives accountability
at global and site-levels thus ensuring steady progress and early I want to thank our Ansell employees for all they do every day
achievement of our goals. We aim for a ‘big-small company’ to create a safer and better-protected world.
culture at Ansell where individual sites and teams have the
freedom to trial initiatives so that technology and knowledge can
be implemented globally when successful.
Ansell supports the transition to a sustainable low-carbon future
and we have been advancing on our FY19 strategic plan to identify,
manage and disclose climate-related risks and opportunities in Magnus Nicolin
alignment with the Recommendations of the Task Force on Advisor to the Ansell Board of Directors
Climate-related Financial Disclosures (see page 49).
Ansell Limited
03 Sustainability Report 2021
Performance snapshot
Lost time injury frequency decreased by 26%. Managing COVID-19. We continue to emphasise
This is primarily attributable to increased focus on COVID-19 safety to keep our workers safe by
high-risk tasks and incident investigations during maintaining stringent controls, for early detection
the year. of at-risk employees and making vaccines available
to our workforce.
Six point improvement in Near Miss Frequency Employee engagement rose to 70%. This represents
(per 100 employees per year) represents Ansell’s biggest an increase of four percentage points from 2019.
improvement to date as we raised awareness and This was primarily driven by an 11 point increase
leveraged on tech platforms to easily identify and report in the engagement of our professional workers.
unsafe behaviours before these they turn into accidents.
Further advancing alignment to the Task Force In FY21 we undertook foundational work to establish
on Climate-related Financial Disclosures (TCFD) a strategy for significant longer term reduction in our
Recommendations and annual participation in the CDP carbon footprint, in line with the Paris Agreement.
(formerly the Carbon Disclosure Project) climate and
water environmental stewardship assessment process.
Committed to a Packaging Pledge to reduce Repayment of recruitment fees. In January 2021,
environmental impact. We are working toward Ansell completed remediation of recruitment fees
minimising environmental impact to keep our planet to migrant workers in our Malaysian manufacturing
safe, while advancing protective solutions that keep facilities who had paid recruitment fees to unethical
people safe. third party agents in their home country.
Life Cycle Assessments (LCAs) of key products. Development of a Supplier Management Framework.
Conducted LCAs on the environmental impact of Ansell worked with third party advisors to develop
multiple products across our healthcare and industrial a Supplier Management Framework which will drive
business units and will use this information to develop improvements in our management of labour rights
our product stewardship strategy. risks in our supply chain.
100% renewable electricity at our Lithuanian plant. Energy consumption rose by 17% and water withdrawal
In FY21 we achieved 100% electricity consumption by 13%. Our overall energy consumption and water
from renewable sources in our Lithuania plant via a withdrawal increased in FY21, due to a sustained
guarantee of an origin power purchase agreement. increase in production volumes. Demand increased
Now our Lithuania and Portugal plants both operate during the COVID-19 pandemic as we strived to
on electricity consumed from renewable sources. increase our production to support the urgent need to
supply protective equipment to frontliners.
92% of waste from our manufacturing sites was Ansell Textiles Lanka (ATL) in Seeduwa, Sri Lanka,
diverted from landfill in FY21. This is a significant and our Lithuania plant were successfully certified
increase from 86% in FY20, reflecting efforts to by an independent third-party on the achievement
increase the number of landfill diversion pathways. of a waste to landfill diversion rate exceeding 99%*.
* Against Intertek’s Zero Waste to Landfill certification criteria.
Ansell Limited
Sustainability Report 2021 04
Our operating context
Overall, ESG-related drivers in our operating context continue
to accelerate and present non-financial risks and opportunities
for the business. In FY21, we focused on our business priorities and
key opportunities to overcome challenges and remained vigilant
to emerging issues to meet our stakeholders’ expectations and
keep our people safe, especially during the uncertainties surrounding
the pandemic. For more details on our operating context, please
refer to our 2021 Annual Report.
ness Automat
y aware ion a
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Su n
Digitisation has
Growing sustainability
accelerated globally, due
awareness globally is
in part to COVID-19 but
e
translating into an
more broadly, automation
nc
increased focus
ilie
and robotics pose both
among our customers,
Bi
opportunities and
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end users and other
od
challenges for our
stakeholders
ive
in
business, particularly
including investors.
cha
in manufacturing.
rsit
Stakeholders are placing
COVID-19 has put increasing emphasis on corporate
y
ply
significant pressure on impacts on biodiversity, and there
Sup
global supply chains and is is a growing understanding of the
driving a renewed focus on importance of ecosystem services
supply chain resilience. provided by the natural world. We
expect this to be an emerging
area of interest in coming years.
As a global company, Ansell must
The pandemic is driving
keep pace with evolving legislative
unprecedented demand for our
requirements across the multitude
products while simultaneously
of jurisdictions in which we operate.
Regulati
-19
challenging more traditional
This includes preparing to comply
supply chains and ways of doing
with increased legislation relating
COVID
business while keeping our
to our management of
employees safe.
sustainability issues.
on
Labour rights across Global emissions must
our own operations and halve this decade and drop
manufacturing plants is a to net zero by 2050 to meet the
key area of focus for both ambitions of the Paris agreement.
Ansell and our stakeholders. To do so, businesses and
The pandemic and
There also continue to be governments alike are
geopolitical tensions
concerning incidents increasingly turning to new
continue to drive a push
involving our supply carbon reduction solutions
towards localised
chain and our industry to decarbonise business
production, especially
more broadly.
n
of essential products such models and value chains.
bo
tio
La
ur as personal protective
isa
rig equipment (PPE). on
ht rb
s eca
D
Geopoli
tical disruption
Ansell Limited
05 Sustainability Report 2021
Sustainability at Ansell
A Responsible and Responsive Strategy & Purpose Our material topics
• Labour rights • Diversity and inclusion
• We care about our people
and safety is our top priority • Employee health • Community
Better • We support our communities
and safety engagement and
Society Employees • Recruitment and investment
and wider Community Business • We play fair and conduct
engagement • Business ethics and
workforce ethics business ethically
governance
• We use natural resources
• Energy and emissions • Operational resource
with care
• Responsible supply efficiency and waste
Better • We work to continually
chains minimalisation
Environment Energy and Materials lower our GHG emissions
• Water • Environmental impact
Water carbon and waste • We respect the local
• Climate risk and compliance
environment
• We provide our customers
with safety and
Better productivity solutions • Innovation and • Business continuity
Business • We choose like-minded product stewardship and demand response
Customers Suppliers Investors partners
• We reward investors
Note: The most material topics are shown in bold.
As a manufacturing company with a complex production We are applying the principles of product stewardship and
footprint, sustainability risks and opportunities arise at multiple lifecycle analysis to our product range and innovation and
points across our value chain, from raw material sourcing and using our manufacturing and engineering excellence to reduce
production through to product disposal. This comes with our environmental footprint. In today’s world, our social and
obligations and responsibilities to our shareholders, customers, environmental performance is as important to our brand equity
employees and our broader workforce, alongside our suppliers, as the quality of our products. For more information about
community and the planet. our strategy, see our 2021 Annual Report.
Sustainability is increasingly integral to Ansell’s strategy. Our approach to sustainability is guided by our Responsible and
Continuous investment in CSR and sustainability is a key strand of Responsive Strategy, which sets out our values and ambitions
our strategic approach, while employee passion and sustainable across three areas – better society, better environment and
practices underpin our Eight Dimensions of Differentiation. better business. Leveraging these principles, this year we have
increased our efforts to embed sustainability into our approach
across the value chain.
Ansell’s Eight Dimensions of Differentiation
Make it easy with digital solutions to do business Industry leading customer intimacy and
with and within Ansell 8. 1. expertise to solve customers’ safety and
DIGITALLY CUSTOMER productivity challenges
EASY INTIMACY
2. Broadest product range and best
7.
Quality, reliability and consistency in supply DELIVERY
PRODUCT innovation capability leveraging
OYEE PASSI RANGE &
& SERVICE PL advanced materials and
ON
EM
INNOVATION
new technology
Safety
World-class manufacturing, engineering 6. 3.
and sourcing with industry leading MANUFACTURING ANSELL Most trusted and well-known
SU
S
ST
CE
I BRAND
safety practices & ENGINEERING AI
NA
BILIT Y P R A
CT brands worldwide
EQUITY
5. 4.
REGULATORY CUSTOMER
& COMPLIANCE COVERAGE
Expertise in safety, regulatory and compliance SERVICES Broadest geographic and channel reach
solutions and services
By continuing to enhance our Eight Dimensions of Differentiation in a sustainable manner, we deepen the ‘moat’ around Ansell
Key: Solid capabilities already in place Further strengthen and invest
Ansell Limited
Sustainability Report 2021 06
Our material topics
We want our disclosures and actions on sustainability to focus on
the topics that matter most to our business, our stakeholders and
our community. The issues
that matter to
In FY20 we conducted a detailed materiality assessment based Ansell’s business
on the Global Reporting Initiative (GRI) Standards 2016 and the performance
Sustainability Accounting Standards Board (SASB). We identified
our material topics through the three lenses detailed in the
adjacent diagram. The issues on
which Ansell
For more information about this process, see our Sustainability currently has,
Report 2020, page 8. or could have,
an impact
In preparation for the 2021 Sustainability Report, we conducted
a high-level refresh of our material topics to ensure they still
The issues
accurately capture our most material sustainability impacts and
that matter
opportunities. As a result, we have combined ‘quality protection
to Ansell’s
solutions’ with ‘innovation and product stewardship’, to reflect
stakeholders
the integrated way in which these topics are now managed within
the business. Similarly, we have absorbed ‘chemicals and
hazardous waste’ into aspects of ‘health and safety’, ‘innovation
and product stewardship’ and ‘environmental impact and
compliance’. The definition and boundaries of our material topics
are outlined on page 65.
Our material topics
Labour rights Diversity and inclusion
Better
Employee health and safety Community engagement and investment
Society
Recruitment and engagement Business ethics and governance
Energy and emissions
Better Responsible supply chains Operational resource efficiency and waste minimalisation
Environment Water Environmental impact and compliance
Climate risk
Better Innovation and product Image
Business continuity and demand response
Business stewardship
Note: The most material topics are shown in bold.
Ansell Limited
07 Sustainability Report 2021
About Ansell
For more than 125 years, Ansell has
delivered advanced protection solutions
to millions of people, both at work and
at home.
Ansell is a global company employing
more than 14,000 people in 58 countries.
Ansell Limited is domiciled in Melbourne,
Australia and is listed on the Australian
Securities Exchange (ASX). Ansell has four
corporate headquarters – Melbourne,
Australia; Brussels, Belgium; New Jersey,
United States and Cyberjaya in Malaysia.
Our manufacturing sites, offices, research
and development and distribution sites
are set out on the map of our operations
on the right. North
America
Ansell continually invests in the research,
development, manufacture and 582
distribution of cutting-edge products and
technology, marketed under well-known
brands that customers trust. Operating
across two business segments, Industrial
and Healthcare, Ansell is a market leader,
selling protection solutions to customers
in more than 100 countries.
Healthcare Industrial
Global Business Unit Global Business Unit Latin America
The Healthcare GBU manufactures and The Industrial GBU manufactures and & Caribbean
markets innovative solutions for a wide markets high-performance hand and
range of customers, including hospitals, Chemical Protective Clothing solutions 389
surgical centres, dental surgeries, for a wide range of industrial applications.
veterinary clinics, first responders, Ansell protects workers in almost every
manufacturers, auto repair shops, industry, including automotive, chemical,
chemical plants, laboratories and metal fabrication, machinery and
pharmaceutical companies. equipment, food, construction, mining,
oil & gas and first responders.
Ansell Limited
Sustainability Report 2021 08Europe,
Middle East
& Africa
998
Asia Pacific
12,190
Our largest manufacturing facilities are in Malaysia, Sri Lanka and Map Key
Thailand, with smaller facilities located in Brazil, China, Lithuania,
Portugal, and Vietnam. We opened a new manufacturing site in
Russia in June 2021. Corporate hubs
Offices
Manufacturing facilities
Warehouse/distribution facilities
R&D facilities/Centres of Excellence
Employees by region (total 14,159)
Ansell Limited
09 Sustainability Report 2021Ansell’s global approach to operational excellence improves year over year. It is part of an
overall commitment that enables us to meet and exceed our manufacturing goals while
keeping workers safe and making the best use of natural resources. Here, the compounding
control room at Ansell Thailand.
Ansell Limited
Sustainability Report 2021 10Sustainable Development Goals
The United Nations Sustainable Development Goals (SDGs) In addition Ansell endorses/is a signatory to:
comprise 17 goals and 169 targets aimed at addressing many
• Taskforce for Climate-related Financial Disclosures
of the world’s most pressing challenges. Ansell believes that
business should work alongside governments and civil society • Workplace Gender Equality Agency gender equity pledge
to drive action to achieve these goals. • UN Guiding Principles on Business and Human Rights
As part of our FY20 materiality assessment we identified six • International Labour Organisation Core Conventions
Sustainable Development Goals which we consider Ansell
is best placed to impact. As we step up our commitment to reduce
our GHG emissions, we have added SDG Goal 13, Climate Action.
Ansell’s business is
closely tied to
healthcare.
Some of Ansell’s raw
materials and associated
manufacturing processes
are water intensive.
Ansell has a role to
play in energy efficiency
and renewables.
Ansell makes a significant
contribution to employment
and economic growth,
including in lower and
middle income countries.
As a global employer, Ansell
can help to address inequality.
Product stewardship is a recent
focus area for Ansell and is
strongly correlated to Goal 12.
Ansell supports the Paris
Agreement and is responding
to the global threat of
climate change.
Ansell Limited
11 Sustainability Report 2021Ansell’s value chain
Governance Product Raw materials Manufacturing
development
Strong governance Our Research and Many of our products Ansell’s top priority is
practices guide the Development (R&D) are made from synthetic protecting the safety and
ethics and integrity teams have conducted petroleum-derived labour rights of workers,
across every part of our Life Cycle Assessments materials in addition and mitigating modern
business, with senior screening on the to natural materials slavery risks from
management and the environmental impact such as cotton or rubber. our supply chain. We
Both contain embedded
Board of Directors of multiple product lines implement our robust
impacts from their
directly overseeing our from our Industrial Global safety and labour
production and processing.
sustainability progress Business Unit (IGBU) and We have launched management systems
and initiatives. Healthcare Global innovation partnerships for our sites and
Business Unit (HGBU) to better manage these outsourced manufacturers.
which includes carbon impacts.
footprint and water Energy and water
footprint. We use this For example, we are consumption of
information to continue replacing the polyester manufacturing facilities
to develop our product yarn in the overedging are intensive, with
of our gloves with a negative outputs such,
stewardship strategy
recycled yarn made as a GHG emissions and
and focus on ‘hotspots’.
from plastic waste in waste. Ansell’s Zero Waste
our Ansell Lanka Textiles to Landfill goal
plant in Sri Lanka. We
certifications are our
are also rolling out a
proud achievements, and
structured approach to
responsible raw material we will continue good
sourcing as part of our momentum with
Supplier Management our $23m portfolio of
Framework. projects. We require the
same expectations of our
outsourced manufacturers
through our Supplier
Code of Conduct.
Related Sustainable Development Goals
Ansell Limited
Sustainability Report 2021 12Marketing Distribution Use Disposal
and sales
Our customers are Once we have The Ansell brand is Our products are used in
increasingly looking for manufactured products differentiated by its industrial and healthcare
products that compete from raw materials quality and performance settings where they are
not just on price and they are transported to features and millions exposed to contaminants,
performance but also on distribution centres and of end users around meaning that recycling
sustainability credentials. then onto customers and the world trust that is a less viable end-of-life
We operate a two-way end users. Our life cycle our products will keep option. Our products are
dialogue with customers, assessments showed them safe from harm typically incinerated or
gathering their feedback that the carbon in industrial and sent to landfill but we
on potential product footprint associated healthcare settings. are exploring alternative
improvements and with transporting our end-of-life options with
communicating products is not significant. a lower environmental
sustainability However we are impact. For example, we
improvements as part working on sustainable are exploring waste-to-
of our marketing and packaging innovations energy co-processing
sales activity. that reduce waste and for our healthcare
the overall weight, which gloves and the use
in turn reduces emissions of our glove waste in
associated with product manufacturing cement.
distribution.
Ansell Limited
13 Sustainability Report 2021Value chain impacts
Governance
Product Raw Marketing
Manufacturing Distribution Use Disposal
development materials and sales
Controlled
Ansell Ansell Ansell Ansell
by Ansell
Finished B2B End users,
Controlled Raw material Logistics
goods customers disposal
by others suppliers suppliers
suppliers and end users providers
Business ethics
and governance
Business continuity
Better and demand
Business response
Innovation
and product
stewardship
Labour rights
Employee health
and safety
Recruitment
Better and engagement
Society
Diversity and
inclusion
Community
engagement
and investment
Environmental
impact and
compliance
Climate risk
Energy and
emissions
Better
Environment
Water
Operational
resource efficiency,
waste minimisation
Responsible
supply chains
Ansell Limited
Sustainability Report 2021 14Our stakeholders
We aim to build strong relationships with our key stakeholders Stakeholders continue to show an elevated interest in Ansell’s
and business partners. Transparent and open communication is sustainability topics and a keen enthusiasm to be kept informed
central to building trust in our brand and products, which in turn and engaged on these topics. In recent years, we have deployed
is key to our success. We engage with stakeholders on a broad our existing communication channels, such as direct meetings,
range of topics that span our value chain and the full suite of presentations and evaluation forms with customers and Annual
our business activities, from product design and sourcing through General Meetings, letters and surveys from shareholders and
to manufacturing, use and end of life. Our ongoing stakeholder investors, to take our stakeholders on this journey with us.
engagement informs us of the structure and level of detail in
our reporting, and our method of engagement varies depending COVID-19 continues to challenge our ability to engage with our
on the type of stakeholder and the nature of their interest, as set stakeholders in person through traditional forums such as investor
out below. presentations and trade shows. As a result, we have increased
our use of virtual forums for meetings and presentations and
have increasingly communicated directly with stakeholders
through phone and video calls.
Stakeholder group Key areas of interest How we engaged in FY21
Customers (B2B) Business conduct Customer service interaction
Business continuity/reliability of supply Direct engagement
Environmental impact and compliance Marketing
Labour rights Plant visits
Pricing Sales and contract negotiations
Innovation and product stewardship Trade shows
Responsible supply chains Webinars
Website
End users Business continuity AnsellGUARDIAN™
Environmental impact and compliance Contact through distributors
Labour rights Customer service interaction
Pricing Customer site visits
Innovation and product stewardship Marketing
Responsible supply chains Webinars
Website
Employees and Climate risk Company-wide email
contractors Community engagement and investment Conferences and events
Diversity and inclusion Engagement surveys
Engagement Innovation Awards
Environmental impact and compliance Intranet
Financial performance Town halls
Health and safety Training
Labour rights Volunteer and community programs
Investors Financial performance Annual General Meetings
Material sustainability topics, especially: Climate risk ASX disclosures
(TCFD), environmental impact and compliance, diversity Capital market days
and inclusion, health and safety and labour rights Chairman’s circuit
Direct engagement
Investor presentations
Sustainability road shows
Written letters and communications
Local communities Community engagement and investment Education and healthcare support
Environmental impact and compliance Local events
Philanthropic activities
Sponsoring
Volunteer programs
NGOs Labour rights Direct engagement
Responsible supply chains Donations/disaster relief support
Partnerships
Sustainability Report
Regulators Business conduct Annual Report
Environmental impact and compliance Direct engagement
Governance Participation in business and industry associations
Health and safety Sustainability Report
Labour rights
Suppliers Business conduct Audits (including third-party audits)
Business continuity Direct engagement
Labour rights Participation in business and industry associations
Product specifications and quality expectations Supplier agreements
Responsible supply chains Supplier Code of Conduct
Ansell Limited
15 Sustainability Report 2021Better Business
Governance and business ethics
Our perspective
Our corporate governance framework guides Ansell’s culture of integrity, accountability and transparency.
By implementing the right governance framework and appointing skilled and independent Non-Executive
Directors to our Board, Ansell can best serve shareholders’ and stakeholders’ long-term interests,
maintaining trust in our brand.
Our approach
Our corporate governance approach is guided by Ansell’s Board Ansell. The Board conducts reviews of our governance framework,
of Directors (Board), values, risk management framework and Code policies and practices regularly to ensure that they align with
of Conduct. We apply the ASX’s Corporate Governance Council’s shareholders’ expectations, global best practice and our internal
Corporate Governance Principles and Recommendations (ASX processes and practices.
Principles), as summarised in our Corporate Governance statement.
The Board met (including Committee meetings) 19 times in
The Board is ultimately responsible for the oversight and review FY21, and during this period its key areas of focus were as
of the management, administration and overall governance of depicted below.
Oversight
Board & Risk management, Sustainability &
Company strategy of capital
management governance & Corporate Social
& performance management
succession compliance Responsibility
initiatives
Board composition and skills At this year’s Annual General Meeting, Mrs Marissa Peterson
and Mr Peter Day will retire from Ansell’s Board after more than
Ansell’s Board is currently comprised of four female and four 15 and 14 years’ service respectively, having made a significant
male non-executive directors and the CEO. Our Board Charter contribution to the Company during their tenure. The Board and
and Constitution guides the independence of our Board to ensure management wish to acknowledge and thank Mrs Peterson and
that decisions are informed by external views and experiences. Mr Day for the significant contribution both have made to the
The Board formally assesses the independence of its Company over their tenure.
directors annually.
On 8 June 2021 Ansell announced that Mr Neil Salmon would
Robust decision-making and governance require a variety of succeed Mr Magnus Nicolin as CEO and Managing Director
skills and attributes. Ansell maintains a board skills matrix, and effective 1 September 2021. Mr Nicolin will continue with
Directors are required to self-assess their attributes against the Ansell as a Special Advisor to the Board and the new CEO
matrix every three years. The skills and attributes listed include until his retirement on 31 December 2021. The Board and
leadership, strategy and commercial acumen, international management wish to acknowledge and thank Mr Nicolin
experience, and health, safety and sustainability. Eight of nine for his significant contribution to the Company and for the
directors bring a developed capability or competency in health, quality of his leadership and judgement over the past 11 years.
safety and sustainability.
The Board self-assesses its performance and each Board
Committee, individual Director and the Chairman annually.
Every three years the Governance Committee engages external
consultants to conduct this review, comparing Ansell’s
performance against peers and competitors and advising
on the skills, attributes and experience required by the Board
to meet Ansell’s evolving strategic goals. The last review was
conducted in FY19.
Ansell Limited
Sustainability Report 2021 16Better Business
Shareholders
Ansell Board
of Directors
Audit and Compliance Sustainability and Human Resources
Governance Committee
Committee Risk Committee Committee
Financial reporting, Reviewing remuneration, Reviewing Board, Director
reviewing adequacy of Risk management recommending and approving and Committee
financial contracts and framework and succession planning and performance and
monitoring audit sustainability governance incentive plans and establishing criteria for
arrangements overseeing culture new Board candidates
CEO and
Managing Director
Ansell People
The Board is supported by four standing committees as set out Our risk management practices include:
above. The Board can also delegate specific duties to ad-hoc
• A comprehensive risk control program that includes property
Committees of Directors as required, with the powers delegated
protection and health, safety and environmental audits using
to these Committees outlined in Board resolutions.
underwriters, self-audits, and engineering and professional
advisers
The four Committees each operate according to their own
Charter. These were reviewed and updated where necessary • Processes to identify the business risks (both financial and
in FY21, except for the Governance Committee Charter which non-financial) applicable to each area of Ansell’s activities
was last updated on 20 June 2019. The Board Charter, and the and the maintenance of a specific framework that prioritises
charter of each of the four standing committees, is available and monitors the mitigation of those risks; and
at www.ansell.com/about-us/sustainability/governance. • Regular reporting to the Audit & Compliance Committee or
Sustainability & Risk Committee, as appropriate, and the Board.
Each Committee must consist of a majority of independent
Non-Executive Directors. Committees may involve independent Ansell’s management are responsible for identifying and managing
professional advisers to assist with the discharge of their duties. risks, implementing and signing off on risk management policies
Details of the qualifications, experience and meeting attendance and systems, and reporting to the Audit & Compliance Committee
of each Committee member are set out in the 2021 Annual Report and Sustainability & Risk Committee.
and 2021 Corporate Governance Statement.
The Sustainability & Risk Committee is actively engaged in
Risk management monitoring (among other matters) these non-financial risks and
ensures that they are given sufficient priority, alongside financial
Effective risk management is core to corporate governance risks. This is set out in the next sections of this report, with climate
and to ensuring that our business creates long-term shareholder risk management on page 49. Further details of Ansell’s Risk
value. Ansell’s Risk Management framework enables us to identify, Management Framework are available in our 2021 Corporate
evaluate, manage and report on risks, including non-financial Governance Statement.
risks such as climate change. Ansell’s Risk Appetite Statement is
integral to the Risk Management Framework and defines (within
practical boundaries) the amount of risk that our organisation
is willing to accept in pursuing our strategic objectives.
Ansell Limited
17 Sustainability Report 2021Better Business
Governance and business ethics continued
Business ethics
Ansell aims to achieve the highest legal, moral and ethical All Ansell employees and Directors are required to undertake
standards in all our corporate activities. This goal and Ansell’s eight compliance training programs to keep abreast of relevant legal
core values (see below) are integrated into our global employee and industry developments and ethical practices every second
Code of Conduct, which acts as a guide to ethical behaviour and year, and topic-specific compliance training on subjects such as
conduct for all employees, directors, executives and management. fraud awareness every year. In FY21, Ansell provided global Code
It is our North star, and sets out our expectations on issues of Conduct training, competition law training, continuous
including corruption and bribery, conflicts of interest and social disclosure training, trade secrets and fraud awareness training.
accountability. Each Ansell employee and Board member must Employees can seek compliance advice by contacting relevant
understand and adhere to the Code and strive to create a Ansell departments and can report concerns to our Compliance
workplace environment where safety, fair play, and ethical Hotline, which is independently managed. Individuals who report
business conduct are expected and encouraged behaviours. their concerns in good faith are protected from any form of
retaliation by Ansell’s policies.
Trustworthiness Agility
Integrity
We value acting with We value responsiveness
We value doing what to customers and each other,
respect, fairness and
is right and ethical. openness to change and
dependability.
flexibility.
Passion Creativity
We value energy
We value inventiveness,
and excitement,
innovation and new and
commitment, drive
and dedication.
Our Values original ways of thinking.
Excellence
Involvement Teamwork
We value a tenacious
We value our team We value collaboration focus on results,
members’ input, influence and a sense of partnership accountability and
and initiative. and sharing. goal achievement.
Ansell Limited
Sustainability Report 2021 18Better Business
Sustainability governance
Our perspective
Sound governance is core to achieving sustainability in business. Ansell’s executive-level Sustainability Council
is responsible for the development and execution of our sustainability strategy, with oversight by our Board
of Directors to ensure that our approach is cohesive and commensurate to the challenges that we face.
We believe that our approach to sustainability and its governance will become a differentiator for Ansell
in the market.
Sustainability governance structure
Ansell’s Board oversees our approach to sustainability and The Board and both committees are provided with quarterly
climate change, with the Board’s Sustainability and Risk updates on Ansell’s sustainability performance. In FY21, key items
Committee (SRC) and the Audit & Compliance Committee (ACC) considered at the SRC included safety performance, progress
assisting with governance, monitoring and providing advice to on environmental impact reduction programs, such as renewable
the Board. The SRC and ACC work collaboratively to ensure energy and reverse osmosis projects (wastewater), and the rollout
linkage and alignment between climate-related mitigation of our Labour Standards Management System in key markets.
activities and Task Force on Climate-related Financial The SRC was also provided regular updates on progress against
Disclosure Recommendations (primarily the responsibility Ansell’s metrics and targets. Tools such as the environment,
of the SRC) along with any other finance-required disclosures health and safety (EHS) dashboard and CSR Workplace Impact
(primarily the responsibility of the ACC). Refer to the 2021 Assessment Tracker guide internal reporting against our standards
Corporate Governance Statement for full details of the and sustainability goals. The ACC discussed updates on Ansell’s
execution of roles and responsibilities of the SRC & ACC. reporting against TCFD standards.
Ansell Board of Directors
Responsible for overseeing and reviewing the management, administration and governance of the
company. The Board oversees Ansell’s strategic direction, authorises initiatives and policies, and protects
stakeholder’s interests, setting goals for management and monitoring their progress, and engaging with
and evaluating the performance of the Chief Executive Officer.
Board oversight of
sustainability risks
and opportunities Sustainability & Risk Committee Audit & Compliance Committee
Reviews the design and implementation of Ansell’s Reviewing Ansell’s financial statements,
risk management system, including active business including ensuring disclosures are in alignment
and material financial and non-financial risks. SRC with the Task Force on Climate-related Financial
also reviews sustainability objectives, targets and Disclosure Recommendations. As well as
strategies, and the effectiveness of Ansell’s reviewing and monitoring Ansell’s internal
sustainability policies and programs controls and financial reporting systems.
Management’s Sustainability Council
role in assessing
and managing The Council is responsible for the development of Ansell’s strategic approach to sustainability risks and
sustainability risks opportunities. In FY21, we re-structured the Council to be a core group of ELT members, who are directly
and opportunities responsible for the implementation of sustainability strategies across our Sustainability Workstreams.
Sustainability Workstreams
Sustainability Communications People Operations Product
& Training Footprint
Each workstream is sponsored by an ELT member to drive accountability.
Ansell Limited
19 Sustainability Report 2021Better Business
Sustainability governance continued
Sustainability is increasingly integrated into Ansell and sits and operational implementation of Ansell’s strategic approach
across all functions, with senior level responsibility for driving to sustainability-related risks and opportunities, and provides
progress. This year, we reviewed the function of our Sustainability regular updates to the CEO and the broader Executive Leadership
Governance structure to represent how we execute our Team (ELT) as part of monthly ELT meetings.
sustainability strategy. We re-structured our executive-level
Sustainability Council (the ‘Council’) comprise a core group We also formalised four workstreams, which represent the
of Executive Leadership Team members, who are directly major components of our sustainability focus, outlined in the
responsible for the implementation of sustainability strategies table below.
& investments. The Council is responsible for the development
People Responsible for executing our People Sustainability Strategy and Supplier Management Framework. Key topics
include corporate social responsibility (CSR), compliance with our own policies and standards, reviewing
alignment with International Labour Organisation (ILO), labour competitiveness, driving our ‘learning
organisation’ culture, diversity and inclusion, and philanthropy.
Operations Responsible for executing our our environment and people strategies. Key topics include health and safety,
footprint our Net Zero strategy and our operational environmental projects such as solar photovoltaics (PV) and reverse
osmosis (RO). This workstream is also responsible for our corporate-level environmental projects, our CDP
(formerly the Carbon Disclosure Project) reporting and Task Force on Climate-related Financial Disclosure (TCFD)
Reporting, with an executive-level steering committee guiding progress against the TCFD’s recommendations, as
well as tracking against corporate metrics, zero waste to landfill program and verification program for the
Greenhouse Gas (GHG) inventory.
Product Responsible for delivering new product innovations and sustainability programs that enable us to reduce the
environmental impact of our products. Topics covered included product and materials innovation, sustainable
packaging, product end-of-life treatment and innovation partnerships/collaborations.
Sustainability Responsible for developing the narrative, messaging hierarchy and strategy used to communicate our current
Communications sustainability topics. The Sustainability Communications & Training workstream acts as the bridge between internal
and Training and external communications teams (e.g. those responsible for investor relations, customer communication and
for our Sustainability Report) and for implementing sustainability training within our organisation.
Each workstream is sponsored by an Executive Leadership Managers of the operational team, will be responsible for
Team member and assigned a designated project lead to drive an internal set of performance objectives around absolute
accountability: Our Chief Human Resources Officer monitors reductions in greenhouse gas emissions, waste and water
labour rights performance and modern slavery risk management (see Better Environment section for more detail).
at our plants; our Senior Vice President of Operations and Global
Supply Chain monitors climate-risk management and Governance of sustainability within Ansell is supported by
environmental performance at our operations and sustainability a set of comprehensive policies which outline our expected
performance of our supply chains; Ansell’s sustainability narrative management approach, including:
and communications are crafted by our Senior Vice President of • 5-Point Safety Charter
Business Development, Transformation and Corporate Marketing;
• Ansell Code of Conduct
our President of IGBU and President of HGBU monitors the overall
sustainability performance of our operations and supports • Anti-Bribery and Corruption Policy
environmental stewardship in product design; and and our Senior • Communication of EHS and Risk Management Incidents
Vice President, Corporate General Counsel coordinates the • Conflict Minerals Policy
strategic management and prioritisation of the organisation’s
• Corporate Social Responsibility Statement
activities and initiatives.
• Diversity and Inclusion Policy and Strategy
Project leads are appointed under each workstream. They foster • Environmental Policy
collaboration at mid-management level and are supported by • Global Health and Safety Standards
dedicated project teams that reflect the skills and resource
• Human Rights Statement
requirements of each project. Cross-functional collaborations
between project teams have increased in frequency over recent • Labour Standards Policy
years as we continue to integrate sustainability into business • Quality Statement Policy
decisions. Furthermore, sustainability responsibilities are • Safety and Loss Control Policy
integrated into our senior personnel’s key performance
• Supplier Code of Conduct
indicators. For example, our Senior Vice President of Operations
and Global Supply Chain, Vice Presidents and site-level General • Whistleblower Policy
Ansell Limited
Sustainability Report 2021 20Better Business
Our supply chain and business continuity
Our perspective
Our customers depend on Ansell to provide high quality goods, reliably and for a reasonable price, without
compromising on ethics. That requires us to have trusted relationships with our suppliers and to carefully
manage risks – commercial, social and environmental – in our supply chain.
Our approach
Ansell procures goods and services from thousands of direct
suppliers in over 40 countries. The map below displays some of
our top direct sourcing countries by expenditure and a selection
of key product categories sourced from each of these locations
in FY21.
China
South Korea
Healthcare supplies
Finished goods
Textiles
Sri Lanka Textiles
Synthetic latex
Textiles Synthetic latex
Packaging
Support services Equipment, machinery and spare parts
Equipment, machinery
and spare parts Forest products
Support services Packaging Thailand
Japan
Chemicals Equipment, Forest products
machinery Chemicals
Services, logistics and spare parts Packaging
Netherlands Synthetic latex
and shipping Capex for plant expansion
Textiles Services, logistics Equipment,
and shipping machinery and Utilities
spare parts Equipment, machinery
India and spare parts
United States Pakistan Services, logistics
Healthcare supplies and shipping Services, logistics
Textiles Textiles
Textiles and shipping
Chemicals Services, logistics and shipping
Equipment, machinery Vietnam
and spare parts Malaysia Chemicals
Services, logistics Healthcare supplies Singapore Services, logistics
and shipping and shipping
Equipment, machinery Synthetic latex
and spare parts Packaging
Packaging
Synthetic latex Services, logistics
Chemicals and shipping
Packaging
Finished goods
Forest products Indonesia
Equipment, machinery
Chemicals and spare parts Healthcare supplies
Utilities Services, logistics Synthetic latex
Services, logistics and shipping Chemicals
and shipping
Ansell Limited
21 Sustainability Report 2021Better Business
Our supply chain and business continuity continued
The table below outlines a selection of some of the goods and 1. Supplier segmentation by concentration risk
categories procured in FY21 that comprise our largest categories
of expenditure.
Healthcare Includes finished goods for resale, such as
Multiple suppliers
supplies single-use gloves and masks
Single supplier, multiple facilities
Textiles Such as cotton, nylon and polyester yarn,
knitted and dyed fabrics, elastic and zippers Single supplier, single facility
Chemicals A wide range of chemicals used in the
manufacturing of our products, including the
petro-chemicals including nitrile, polyisoprene
and neoprene
Forest products Predominantly raw materials such as woodchips
and natural rubber latex
2. Supplier segmentation by complexity v. spend
Packaging Includes packaging material made of natural Complexity of product/service
materials wood products such as pallets, boxes, and
paper, as well as plastic components such as
polybags and shrink film
Equipment, Parts and machinery maintenance and Strategic
Bottleneck approach
machinery and replacement to support the running of our
spare parts manufacturing operations
Support Services to support the running of our
services operations including pest, waste and security
Spend on
services as well as cleaning and catering product/service
Ansell’s procurement is conducted through three channels:
the Global Sourcing team; corporate hubs; and individual
Leverage market:
manufacturing plants and offices. In FY21, we expanded the
Transactional focus on price
remit of our Global Sourcing team across plant expansion, and quality
logistics, warehousing sourcing and finished goods sourcing
in our Healthcare Global Business Unit (HGBU).
This consolidation was driven by a desire to leverage a hub
of strategic procurement skills and establish a standardised
Our Global Sourcing team focused on rationalising our
approach that enables us to more effectively source and manage
supplier base during FY21, tracking the security of our supplier
supplier relationships and product categories. This approach
base for different product categories and maintaining supplier
also delivers lower expenditure and enables greater oversight
relationships, price negotiation and contract management.
of suppliers’ compliance against our standards.
In FY21, we also developed the capability of the Ansell team
This year, our global sourcing team worked with teams in our
to respond to crises whilst maintaining business continuity by
manufacturing plants to map and consolidate their sourcing
delivering crisis readiness training, which was delivered virtually
activities, as part of strategic restructuring and portfolio
to our manufacturing and logistics sites in Thailand, Vietnam,
management of the supply chain. Alongside this work, we
Kedah, Nitritex and Melaka. The training sessions concluded with
began to develop and implement a universal taxonomy system
mock scenarios that test each team’s response to critical events
to classify expenditure by product and service categories,
that could seriously impact Ansell’s reputation and its ability
enabling better analysis of our supplier base.
to deliver to its customers.
We segment our supply chain according to concentration risk
Kindly refer to our 2021 Annual Report for more details on
exposure; wherever possible we aim to have multiple suppliers
our supply chain and operational outlook.
with multiple facilities for any product category. We also segment
by complexity versus spend, in order to tailor our relationships and
develop more strategic, long- term alliances where beneficial.
Ansell Limited
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