GLOBAL OPERATIONSUPDATE GRI

MAY 2015

GLOBAL MEGATRENDS CHALLENGES RE‐SHAPE MARKETS AND SUPPLY CHAIN

July 16, 20152

RESOURCE AND ENERGY DEMAND CLIMATE CHANGE

WATER DEMAND INFRASTRUCTURE AND URBANISATION

Sika Sustainability

Market Trends Energy efficiency in buildings and transportation New material combinations to save weight and fuel Green building protocols & frameworks for top projects / public projects Public interest: Customers, Investors, Governments, Public Procurement Opportunities for products/ solutions

Mission Sustainability as business driver and enabler with growing relevance  Sustainable solutions for environment and society Transform global challenges into value creation and efficiencyMore «value», less «impacts» 

July 16, 20153

GLOBAL MEGATRENDS RESPOND TO EMERGING MARKET CHANGES

Sika Sustainability

July 16, 20154

OUR COMMITMENTJAN JENISCH, CEO

«We are committed to pioneering sustainable solutions to addressglobal challenges, and to achieve this safely at the lowst impact on resources.»

Sika Sustainability

CONTRIBUTION TOWARDS SUSTAINABLE CONSTRUCTION GROWING DEMAND FOR SIKA PRODUCTS

More efficient use of limited natural resources and energy («green cities»)

Demand for longer life cycles of infrastructure  and buildings

Demand for low‐energy housing

Drive towards higher recyclability of materials

Demand for safe‐to‐use products, lower‐emission products

New technologies for vehicles and transportation

Increasing environmental regulations

5 July 16, 2015 Sika Sustainability

GRI (Global Reporting Initiative) is a globally recognized Standard for Sustainability Reporting Covering OECD guidelines and UN Global Compact rules Principles: Relevance, Completeness, Accuracy, Balance

The GRI aspects are: Economic: Value Creation and Distribution Environmental: Energy, Materials, Water Social: Labor Practices and Decent Work, Human Rights, Society, Product 

Responsibility Our motivation: 

Company portrayed as a responsible citizen Reporting and improving relevant topics, on which we have influence One of the first companies to report on its sustainability performance in 

accordance with the new standard GRI G4

July 6

SUSTAINABILITY MANAGEMENTIMPLEMENTATION OF GRI (G4) REPORTING

Sika Sustainability

7

SUSTAINABILITY SYSTEM AND REPORTINGGRI REPORTINGSYSTEM REPORTING

2013 2014 2015

Strategy and 

Framework

Annual report2014Annual 

report2013Strategy

Vision

ReportingIndicators

Systematic &  Transparent Global & Performance driven

Strategy & System

Targets & Reviews

AssuranceReport2015

2016

Limited assurance

Assurance & Index

SUSTAINABILITY STRATEGYSIX STRATEGIC TARGETS 2014 ‐ 2018

July 16, 20158

SUSTAINABILITY COMMUNICATIONOVERVIEW

Material Issues Occupational Health & 

Safety Product Quality & 

Reliability Customer Satisfaction Customer Health & 

Safety Resource Consumption Eco friendly Products Water Consumption …

Brand Personality Pioneering Team Oriented Committed

Communication Themes Sustainable Solutions Proven Quality Global but Local 

Partnership

Sika Focus Areas of Value Creation Economy Environment Society

Sustainability Communication

Global Reporting Index Sika Brand

July 16, 2015 Sika Sustainability9

SUSTAINABILITY – STRATEGY & REPORTINGBENCHMARKING OUR TARGET SYSTEM

10

Sika Henkel BASF AkzoNobel Clariant Geberit RPM HB Fuller

Strategy GRI ‐ core GRI ‐ comprehensive GRI ‐ comprehensive GRI ‐ G3 B GRI ‐ comprehensive GRI ‐ comprehensive

Safety (Accidents)2013‐2018:          ‐25% rate

2011‐2015:            ‐20% rate

2002‐2020:            ‐80% rate 

2015: reportable rate <2

No quantified target, low rate

2010‐2020: ‐ 50% rate 

Energy2013‐2018: ‐15% per ton

2011‐2015: ‐15% per ton

For 2002‐2020:+35% energy efficiency 

2012‐2020: ‐25–30 % carbon per 

ton

2005‐2025: ‐30% per ton 

Water 2013‐2018: ‐15% per ton

2011‐2015: ‐15% per ton 

2010‐2020:100% sust. Water 

management in water stress areas

2005‐2025: : ‐35% per ton

Waste2013‐2018: ‐15% per ton

2011‐2015:‐15% per ton 

No quantified target2005‐2025: : ‐35% per ton

Sustainable Solutions

All new projects are assessed. All local key 

projects are implemented.

Hotspot Analysis Ecoefficiency20% of revenue from eco‐premium solutions 

by 2020

Programm:sustainability@clariant 

portfolio value

Ecodesign and Green building

Social projects2013‐2018: +5% yearly

Qualitatively: more social projects and better quality of life

great comitment butno quantified targets

great comitment butno quantified targets

great comitment butno quantified targets

great comitment butno quantified targets

Human RightsMember of UNGlobal Compact

Code of Conduct

Resource Efficiency Index

Monitor new index, as future indicator for resource efficiency across the full value 

chain

Eco‐efficiency to be improved by 5% per year on average per 

sales

11

SUSTAINABILITY REPORTINGBENCHMARKING RESULTSKPI‐Benchmark 

‐ 1 % ‐ 8 % 

‐ 12 % ‐ 10 % 

0.00

0.20

0.40

0.60

0.80

1.00

2011 2012 2013 2014

Water / ton sold

0.0172

0.0176

0.0180

0.0184

0.0188

0.0192

2011 2012 2013 2014

Waste / ton sold

0.002.004.006.008.00

10.0012.0014.0016.00

2011 2012 2013 2014

Accidents / 1000 employees

Clariant: ‐ 2.2%Henkel:   ‐ 3.3%

0.00

0.20

0.40

0.60

0.80

2011 2012 2013 2014

Energy / ton sold

Henkel:   ‐ 3.4% Henkel:   ‐ 11.6%

Clariant: ‐ 10.1%Henkel:   ‐ 3.3%

July 16, 201512

SUSTAINABILITY AS MARKET OPPORTUNITYGREEN BUILDING PROGRAMS – 100.000+ PROJECTS

LEED No. 1 globallyTotal Commercial LEED projects globally> 59’200 projects registered and certified

BREEAM No. 2 globallyTotal Commercial BREEAM projects globally> 16’000 projects certified

SUSTAINABILITY AS MARKET OPPORTUNITYEXAMPLE: LEED

LEED = Leadership in Energy and Environmental Design13

FOCUS AREA «ECONOMIC PERFORMANCE»HIGHLIGHTS STRATEGY 2018

Market Leadership Technology Leadership

Market access throughacquisitions

Buildup ofEmerging Markets

July 16, 201514 Sika Sustainability

Strong company values

FOCUS AREA «SUSTAINABLE SOLUTIONS»PROJECT HIGHLIGHTS

Reduction of Argos’ Carbon Footprint, ColombiaProduction plants in Colombia

Recycling Partnership with Target, USADepartment Store Olathe, Kansas

LEED Platinum Project, GreeceSika solutions from roof to basement

July 16, 201515 Sika Sustainability

Energy and CO2 savings, SpainSupermarket in Girona

FOCUS AREA «LOCAL COMMUNITIES AND SOCIETY»PROJECT HIGHLIGHTS

Romuald Burkard Foundation, worldwideOver 30 projects in 17 countries supported

Operation Smile Vietnam, VietnamSurgery to 900 children with cleft lip and palate

University ETH Zurich, SwitzerlandAllocation of CHF 7 million to support professorship

July 16, 201516 Sika Sustainability

Global Nature Fund, worldwide100 organizations, model projects in Africa and Asia

FOCUS AREA «ENERGY»PROJECT HIGHLIGHTS

Rice husks as coal replacement in steam boilers,Jiangsu Sika TMS Admixture Co. Ltd.,  China

Construction of a solar park, Sika France SAPlant Marguerittes, France

DGNB®‐ certified Sika Training center, Sika GermanyPlant Stuttgart, Germany 

July 16, 201517 Sika Sustainability

Factory and warehouse relamping, Sika CorporationPlant Lyndhurst, USA

FOCUS AREA «WATER AND WASTE»PROJECT HIGHLIGHTS

Industrial water supply based on rainwater, Sika Colombia, Plant Tocancipa, Colombia

Packaging waste reduction, Sika TurkeyPlant Tuzla, Turkey

Recycling of PVC production scrap, Sika ChinaPlant Shanghai, China 

July 16, 201518 Sika Sustainability

Upgrade of wastewater treatment facility, Sika S.A.Plant Alcobendas, Spain

FOCUS AREA «OCCUPATIONAL SAFETY»PROJECT HIGHLIGHTS

Safety awareness week, Sika Asia/Pacific38 plants in 13 countries, Asia/Pacific

5S tools in safety management, Sika Ltd. Plant Welwyn Garden City, UK

Zero accident aspiration via «nouvel élan», Sika SAPlant Gournay, France 

July 16, 201519 Sika Sustainability

Safe working practice, Sika Australia4 plants, Australia