Sustainability

In 2013, Kemira for the second time will publish an annual Sustainability Report in connection with its Annual Report. The Sustainability Report is verified by a third party and prepared in accordance with the GRI (Global Reporting Initiative) framework. It deals, for example, with Kemira’s economic performance, its emissions and effluents, its waste, its environmental costs, its labor and responsible work practices, with safety and product safety, the society, as well as the use of natural resources.

As an update to the first Sustainability report published in 2011, Kemira has more clearly defined its sustainability priorities and targets as part of its sustainability management process. The sustainability targets were approved by the Kemira Management Board in the third quarter of 2012. The targets, Key Performance Indicators (KPI) and planned measures will be discussed in more detail in Kemira’s Sustainability Report that will be published as part of the Kemira Annual Report 2012 during the week beginning on February 25.

In 2012, capital expenditure on environmental protection at the company’s 71 production sites totaled EUR 3.4 million (EUR 3.6 million) and operating costs were EUR 14.2 million (EUR 12.7 million). The increase of operating costs was caused mainly by higher production volumes. No major environmental investment projects are in progress or being planned.

Provisions for environmental remediation totaled EUR 19.7 million (14.7). The major provisions apply to the closing of the former waste piling area in Pori and to the limited reconditioning of the sediment of a lake adjacent to the Vaasa plant.

Kemira did not register any new substances under the new EU chemicals regulation (REACH) in 2012. Kemira is in the process of preparing for the next registration deadline in June 2013 for phase-in registrations. In the EU, the third deadline of REACH is coming up in 2018. In addition, there will be other regulations concerning the Asia-Pacific region and South America that will require Kemira’s attention in the future. The implementation of REACH is not expected to have a major impact on Kemira’s financial results, even though the registration costs are expected to accumulate over the next few years. In 2012, the costs of REACH compliance were insignificant and related to improvements in REACH-related management processes and associated IT support.

In 2012 Kemira started reporting Total Recordable Injuries for Kemira employees and contractors (TRI) instead of the LTA1 (accident frequency rating that indicates the number of accidents that cause absences lasting at least one day per one million working hours) for Kemira employees. The TRI Includes LTA, Restricted work cases (RWC) and Medical treatment cases (MTC). For 2012 the TRI frequency for Kemira employees and contractors per million working hours was 8.5. This compares to a chemical industry average of 12 (Source: US department of labor, 2011).