Sustainability Report FY2018 - Vanderlande · people > Together: we enjoy working as a team and aim to support our customers in every way > Sustainable: we embrace the triple bottom

MOVING YOUR BUSINESS FORWARD

SustainabilityReport FY2018Vanderlande Industries Holding B.V.Financial Year 2018

> Vanderlande Sustainability Report FY2018 32

About this report 3Highlights 4Foreword from the CEO 5Company profile 6Core and brand values 7Company locations 8Sustainable ambition 10Stakeholder inclusiveness 12Materiality assessment 13Health and safety at work 15Design safety and ergonomics 18Employee development and training 20Employee engagement 22Energy use (products and systems) 26Sustainable product design 28Responsible sourcing 30Circular solutions 32Corporate governance 35GRI content index 38

Contents About this reportThis report addresses the sustainability approach, position and performance of Vanderlande Industries Holding B.V., a fully owned subsidiary of Toyota Industries Corporation (TICO). It has been prepared in accordance with the GRI standard: core option.

This is Vanderlande’s first report in accordance with the GRI standards. For this reason, it should be as a new baseline and not compared with the previous report in respect to material topics and their respective boundaries.

All data refers to Vanderlande’s financial year 2018 (1 January 2017 to 31 March 2018) and represents every employee globally, unless otherwise stated. The financial year has been extended to 15 months due to the acquisition of Vanderlande by TICO in 2017.

Vanderlande’s previous Sustainability Report was published on 3 June 2015 and covered the financial year 2015 (1 April 2014 to 31 March 2015). The company’s ambition is to now produce a Sustainability Report biennially.

Vanderlande is not obligated by legislation to report on sustainability. However, the company believes in transparency and has chosen to voluntarily publish this Sustainability Report. For this reason, it has not been externally assured.

Vanderlande acts in a practical way to apply the precautionary principle in its approach while maintaining its competitive position in the market. The company takes account of scientific evidence and global trends to reduce carbon emissions and to act responsibly.

For more information on Vanderlande and its reports, please refer to www.vanderlande.com. Questions regarding the content of this Sustainability Report can be addressed to [email protected].


Foreword from the CEOHighlights

Foreword from the CEO

see page 5

It gives me great satisfaction to welcome you to Vanderlande’s latest Sustainability Report. This documents our performance with regard to this topic during FY2018, as well as outlines our overall philosophy, through which we will further strengthen our approach. Sustainability is an integral part of our corporate strategy and provides a strong, long-term basis for doing good business with our customers.

In today’s world, the increasing needs of our growing population create more strain on the planet’s natural resources. As a result, raw materials are becoming increasingly limited in availability. However, the rising levels of digitalisation result in smarter responses from the industry, enhance customer experiences and create insights into sustainability issues, as well as provide intelligent solutions to these challenges.

Innovative and fast-growing companies such as Vanderlande must strive harder than ever to reduce CO2 emissions, help to establish circular-based economies, look after the long-term wellbeing of its people, and respect the natural capacity of our planet. By driving forward with our vision on sustainability, Vanderlande is displaying its dedication to being a responsible entity within the global community.

This means that we not only look after our own needs as a business, but also respect our position in the world and understand the ecological impact of our activities. Sustainability is part of Vanderlande’s everyday working practice and, in this way, we can further improve the competitive positions of our customers. It is already a fundamental part of our design processes and means that we look at the materials we use to see if they can be recycled.

We are inspired by circular economy principles and see it as our responsibility to cooperate with partners, key customers and other third parties to evolve towards circular systems. Vanderlande can achieve positive outcomes by offering business models, such as ‘managed services’ and integrating our activities along the entire value chain. By doing so, we can expand our areas of influence and allow our sustainable approach to become even more visible. Our people can also help us to make a difference and we want to attract highly motivated employees, who can proactively add value and align with our strategic goals.

Sustainability is given a high priority within our organisation and it is regularly discussed at board level. Our current structure offers transparency and visibility, but we are also continuing with our efforts to make sustainable thinking more driven from the bottom up. In recent years, it has been satisfying to see sustainability become further embedded within our DNA. Today, all of our employees internationally have the power to make a positive impact with regard to our ambitions.

Due to our market-leading position, Vanderlande is in an ideal position to assist our customers in implementing their own sustainability strategies, and we can also exert a positive influence on our suppliers to help us achieve this. Our approach has already yielded some exciting results and I am delighted that we have been helping customers across all of our core markets to realise their sustainable ambitions.

For example, in the airports market, we recently launched FLEET, a flexible baggage handling solution that uses autonomous vehicle technology. It makes a bold statement of intent from Vanderlande to the industry, due to the high level of innovation involved and the fact that we are delivering FLEET ‘as a service’ to our customers. In addition, it contributes strongly to our ‘green’ credentials, because FLEET consumes up to 50% less energy than a traditional baggage system.

At Vanderlande, we not only focus on our economic and environmental impact, but also on our internal processes and people. We promote a healthy work environment for every colleague around the world in line with good welfare standards and strive to support their personal growth. Through this approach, we intend to develop the skills and knowledge that are required both now and long into the future.

In February 2018, we were awarded the highest rating in the category of ‘Manufacturing and Industry’ in the Best Employer Survey (The Netherlands). This result is based solely on the personal feedback of our colleagues, which also shows that we actively allow our colleagues to speak up about any potential issues and respond directly to their opinions.

We are proud of the progress we have made on sustainability, and the recent acquisition of Vanderlande by Toyota Industries Corporation (TICO) creates significant opportunities to investigate and develop further initiatives together. TICO has a clear vision on sustainability and displays an active commitment to corporate social responsibility. As a result, we expect that the knowledge-sharing and cooperation between both organisations will also have positive overlaps in this field.

Vanderlande has never been more ready to achieve the targets it has set itself on sustainability, and we hope to pass on the benefits to our customers. With the knowledge, skills and enthusiasm of our employees and partners, we can look forward to achieving an exciting programme of activities.

Remo BrunschwilerPresident & CEO Vanderlande

Sustainable ambition

see page 10

GRI content index

see page 38

Health and safety at work

see page 15

Responsible sourcing

see page 30

Employee engagement

see page 22

Sustainable product design

see page 28

Circular solutions

see page 32

Design safetyand ergonomics

see page 18


Company profile

AIRPORTS

WAREHOUSING

PARCEL

>5,500 EMPLOYEES

1.4 billion REVENUE

Established since 1949

Global market leader

million bags per day10.1 AIRPORTS INCLUDING

13 OF THE WORLD’S TOP 20

600

39 millionp a r c e l s s o r t e de v e r y d a y

Largest parcel and postal companies5

global e-commerce playersretailersof the largest

Many

innovative systems intelligent so�ware life-cycle services

> Atlanta Airport> London Heathrow Airport> Hong Kong Int. Airport> Amsterdam Airport Schiphol

> Amazon> Lidl> Zalando> Asda

> UPS> Deutsche Post DHL> TNT> FedEx> DPD

Vanderlande’s baggage handling systems move 3.7 billion pieces of luggage around the world per year, in other words 10.1 million per day. Its systems are active in 600 airports including 13 of the world’s top 20. More than 39 million parcels are sorted by its systems every day, which have been installed for the world’s leading parcel companies. In addition, many of the largest global e-commerce players and distribution firms have confidence in Vanderlande’s efficient and reliable solutions.

The company focuses on the optimisation of its customers’ business processes and competitive positions. Through close cooperation, it strives for the improvement of their operational activities and the expansion of their logistical achievements. Vanderlande’s extensive portfolio of integrated solutions – innovative systems, intelligent software and life-cycle services – results in the realisation of fast, reliable and efficient automation technology.

Vanderlande was acquired in 2017 by a successful, strategic partner, Toyota Industries Corporation. The synergies between the two companies exist with: the cross-selling of products and solutions; product innovations, for example with automated guided vehicles (AGVs); and joining forces in research and

development. The two companies have a strong strategic match and the financial strength of Toyota will help Vanderlande to continue with its sustainable profitable growth.

Vanderlande has more than 5,500 employees, all committed to moving its customers’ businesses forward at diverse locations on every continent. With a consistently increasing revenue of more than 1.4 billion euros, it has established a global reputation over the past seven decades as a highly reliable partner for value-added logistic process automation.

Group structureVanderlande Industries Holding B.V. is a limited liability company incorporated and domiciled in The Netherlands and is registered in the Commercial Register of The Netherlands Chamber of Commerce under no. 16055699. The address of its registered office is Vanderlandelaan 2, Veghel. Vanderlande Industries Holding B.V. is a 100% participating interest of Toyota Industries Europe AB.

Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company is also a leading supplier of process automation solutions for warehouses.

Core and brand values

CONTINUOUSLY LEARN,DEVELOP AND INNOVATE

WE AIM TO BE THE BEST

TAKE PERSONALRESPONSIBILITY

TO MINIMISEOUR FOOTPRINT

IN A SAFE AND ENGAGINGWORKING ENVIRONMENT

WORK TOGETHERAS A TEAM

Our core values define Vanderlande. If we have a drive to win, we will finish projects ahead of schedule and beat our competitors. However, we’re always learning to do things every day better.

We care, not only about our own colleagues, but also about our customers. Creating a safe base is vital in safeguarding everyone’s wellbeing, so we can all work in a positive environment.

Teamplay is how we work together, how teams are built and cooperating effectively at all levels. Finally, ownership is about performing to the highest level and taking responsibility for your actions.

Our brand values are how our customers define their experience of working with us.

> Reliable: predictability and trustworthiness are paramount – reliable products, technology, service and people

> Together: we enjoy working as a team and aim to support our customers in every way

> Sustainable: we embrace the triple bottom line commitment to people, planet and profit

> Trendsetter: we surprise our customers with innovative solutions to enhance their businesses – and in doing so, set the standard

> Best customer value: our customer insight and industry expertise allows us to create added value

Vanderlande headquarters in Veghel, The Netherlands


Company locations

> Canada

> Mexico

> Colombia

> Chile

> Argentina

> Brazil

> Spain

> Italy

> United Arab Emirates

> Oman> Hong Kong

> Shanghai

> South Korea

> Singapore

> Australia

> Saudi Arabia> India

> Malaysia

> Germany

> Russia

> France

> United Kingdom

> Veghel, The Netherlands (Headquarters)

> USA

> Norway

> Poland

> Switzerland

Vanderlande site-based teams

Vanderlande offices

A global presenceAlthough its headquarters are located in Veghel, The Netherlands, Vanderlande’s employees are involved in a variety of activities across the globe. To support them, the company utilises a network of strategically placed offices. From these, more than 100 service teams and many other site-based personnel actively support Vanderlande’s customers with system maintenance, logistics management and business improvement processes.

Vanderlande’s core focus remains project-based and it accepts full responsibility for the supply of materials to these projects. In addition, the company is committed to reducing its environmental impact. It proactively seeks ways to lower both its logistics and transportation costs. In addition, it has organised its supply chain as efficiently as possible in response to international growth, and retains three dedicated centres in Europe, North America and Asia.

Vanderlande has also accommodated the significant growth and further development of its suppliers. For example, it opened an additional manufacturing facility in the USA and sees many exciting future innovations within the company’s product groups. These include other companies it has acquired with a solution-specific focus, such as Vanderlande Beewen and Vanderlande Smatec.

In its supply chain, Vanderlande is currently redesigning its processes in order to manage the company’s growth. The aim is to be more flexible and effective in ordering, manufacturing and shipping, as well as executing installations and commissioning on site. By working in a smarter way, Vanderlande’s daily global activities are contributing to its overall efficiency, and progressing its circular economy ambitions.

Consolidated legal entitiesVanderlande Industries Holding B.V., Veghel, The Netherlands — Vanderlande Industries B.V.,Veghel,The Netherlands — Vanderlande Industries Contracting B.V., Veghel, The Netherlands — Equipment Supply International B.V., Veghel, The Netherlands — Vanderlande Beewen Verwaltungs G.m.b.H., Siegen, Germany — Vanderlande Beewen G.m.b.H. & Co., KG, Siegen, Germany — Vanderlande Industries Holding Deutschland Verwaltungs G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries Holding Deutschland G.m.b.H. & Co., KG, Mönchengladbach, Germany — Vanderlande Industries G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries G.m.b.H., Dortmund, Germany — Vanderlande Industries United Kingdom Ltd., Hampton—in—Arden, United Kingdom — Vanderlande Industries Espana S.A. Sociedad Unipersonal, Barcelona, Spain — Vanderlande Industries Santpedor S.L.U., Santpedor, Spain — Vanderlande Industries Logistics Automated Systems (Shanghai) Co., Ltd., Shanghai, China — Vanderlande Industries Hong Kong Ltd., Hongkong, China — Vanderlande Industries Private Ltd., New Delhi, India — Vanderlande Industries Software Private Ltd, Pune, India — Vanderlande Industries Inc., Marietta GA, USA — Vanderlande Industries BHS, LLC, Marietta GA, USA — Vanderlande Industries Manufacturing USA Inc., Calhoun GA, USA — Vanderlande Industries Singapore Pte, Ltd, Singapore, Singapore — Vanderlande Industries Canada Inc., Vancouver, Canada — Vanderlande Industries S DE RL DE CV Jalisco, Ciudad Granja, Mexico — Libyan Airport Technology Joint Venture Company, Tripoli, Libya — Vanderlande Industries OOO (LLC), Moscow, Russia — Vanderlande Industries LLC, Dubai, Dubai — Vanderlande Industries Do Brasil Comercializacao, Importacao e Instalacao de Sistemas de Bagagem Limitada, Sao Paulo, Brasil — Vanderlande Industries Australia Pty, Ltd, Sydney, Australia — Vanderlande Industries (Thailand) , Ltd, Bangkok, Thailand — Optosecurity Inc., Quebec City, Canada — Optosecurity Corp., Delaware, USA — Optosecurity B.V., Amsterdam, The Netherlands.Vanderlande has an investment in Smart Robotics (The Netherlands), which is not included in the consolidation.

Total employees 5,501(Headcount - 31 March 2018)

Permanent: 4,901Temporary: 600

Female 842Full time 645Part time 197Male 4,659Full time 4,376Part time 283

MalePermanent 4,187Temporary 472Total 4,659

FemalePermanent 714Temporary 128Total 842

Permanent: 117

Permanent: 425 Temporary: 191


Permanent: 106Temporary: 2

Permanent: 3,234Temporary: 349


Vanderlande supply chain centres


Sustainable ambition

With the continuous growth and increasing life expectancy of the global population and the rise in average wealth and social opportunities of developing nations, natural resource use, escalating greenhouse gas levels and equality issues are becoming a global challenge. Everyone is required to act responsibly and contribute to effective solutions.

Vanderlande believes that by working hard today, in joint effort with its employees, customers, suppliers and other stakeholders, it can make a difference for its future and make the world of tomorrow a better place. By establishing – and working towards – the company’s long-term ambitions on sustainability, it can continuously drive and challenge itself to perform better every day based on the following three key global drivers:

Establishing a healthy and fair societyThis is a fundamental need that drives sustainable development. Clean water and air, and healthy and available food sources are the most primary needs for the world’s population.

The basic UN sustainable development goals aim to eradicate poverty, end hunger, and to ensure clean water and sanitation for everyone. These goals also go further to build on the need for social and economic development that supports the creation of an inclusive, healthy and fair society, and proactive and responsible governance. Vanderlande’s approach incorporates these principles.

A safe base is at the heart of Vanderlande’s business and it believes that the highest levels of health and safety are fundamental. Through active engagement and training, the company also develops a working environment in which its employees can continually learn and develop, while Vanderlande believes that strong leadership is the key for a successful and sustainable future.

Respecting the natural capacity of our planet This relates to the long-term ability of our ecosystems to maintain themselves. It is becoming increasingly evident that the world climate is changing, resulting in an increased risk of floods, droughts and other natural phenomena that are reported to be strongly related to global warming.

With the energy transition in progress, steps are being taken to establish a low-carbon economy. It is important to support the UNFCCC Paris Climate Agreement, which world economies have signed up to, with the outcome of driving down greenhouse gas emissions. This currently provides the most pressing example of the need for a collaborative approach towards protecting our planet.

Vanderlande cares about how its business activities impact on the environment and the part it plays in resource availability, waste, energy use and climate change. The company is also dedicated to reducing its energy use, and continuously engages with its customers on a range of initiatives to achieve this.

Establishing a circular-based economyThis driver requires governments, businesses and other organisations to use less scarce raw materials for economic growth. By accelerating the circular economy, outcomes including a reduction in raw material resource use, waste and emissions will help to close energy and material loops, and optimise the use of resources.

Vanderlande can contribute to establishing a circular-based economy through its corporate governance, which enables proactive cooperation with a multitude of partners both locally and globally. The company is also committed to developing circular services and products and supporting initiatives that help to accelerate these.

The three drivers translate to Vanderlande’s pillars of sustainability – people, planet and profit – which have been rooted to the core of the company’s strategy for several years. The company is able to share its knowledge and expertise with partners throughout the entire value chain. By doing so, sustainability will deliver a range of benefits, broaden Vanderlande’s horizons and create opportunities to respond to a rapidly changing world.

However, its sustainable ambitions cannot be achieved in isolation. To succeed, Vanderlande must work closely with all stakeholders to realise a sustainable business and a better world for all communities.

Vanderlande believes that embracing sustainability and making this an integral part of its daily activities is the only way to have a strong profitable business, to contribute to the protection of the planet and to take care of its people.

The company holds itself accountable for the effect that its activities and decisions have on people and the environment. The company’s ambition is to implement sustainable solutions worldwide and it considers the processes and work involved in achieving these to be both rewarding and worthwhile.

Although there are many challenges ahead, Vanderlande is making considerable progress in its performance on sustainability and has set itself clear targets. With the knowledge, skills and enthusiasm of employees and partners, it will succeed in achieving significant results.

Establishing a circular-basedeconomy

Circular solutions

Corporategovernance

Respecting the natural capacity of our planet

Establishing ahealthy and fair society


Design safety and ergonomics

Employee developmentand training

Employeeengagement

Energy use products and systems

Sustainableproduct design

Responsiblesourcing

“Vanderlande cares about how its business activities impact on the environment and the

part it plays in resource availability, waste, energy use and climate change.”


Stakeholder inclusiveness Materiality assessment

StakeholdersAs Vanderlande continues to drive its business forward in the pursuit of sustainable development, it actively encourages its stakeholders to join forces in the realisation of common goals. This is because the focus on sustainable development and the impact of business operations are not just about what Vanderlande does in isolation. It involves the entire value chain and the company understands that it is only one of the links in this process.

Vanderlande is confident that through open, transparent and systematic engagement with its stakeholders (including employees, customers, suppliers, local communities, government organisations and industry bodies) it can jointly lead the way. By obtaining feedback from all stakeholders, the company can continuously review and update its strategy, policies and general conduct on sustainability.

To achieve this, Vanderlande regularly connects with its stakeholders via customer engagement, key customer focus programmes, conferences and supplier audits, as well as cooperating on industry initiatives and conducting employee surveys. The key topics raised from engagement relate to a wide range of subjects. As an example, the action to investigate the needs of the company’s more mature employees was developed from the extensive employee surveys. In addition, the internal safety climate surveys led to behavioural programmes being developed and rolled out on a global basis.

Vanderlande has also experienced an increasing demand for the energy management of its systems by engaging with customers. For this report, Vanderlande has identified – and engaged with – internal sustainability representatives by assessing factors such as their expertise, enthusiasm, location and leadership skills.

By exploring the topic of sustainability together, Vanderlande can have a greater impact and create more opportunities for tangible benefits relating to the environment – both now and in the future.

People Planet Pro�t

Product packaging

Circular solutions

Customer-driven solutions and engagement

Employee engagement

Energy use (manufacturing and shipping)

Responsible sourcing Sustainable product design

Energy use (products and systems)

Health and safety at workDesign safety and ergonomics

Employee development training

Corporate governance

Quality, reliability and performance

Transparancy, accountability reportingLegislation

Bribery, corruption and business ethics

IT security

Equal opportunity and diversityWaste management

Supporting local communities

Energy use (facilities and business travel)Water management

MINOR MEDIUM HIGH MAJOR

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MHI

GHM

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Relative importance to Vanderlande business success

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Suppliers Other stakeholders

Employees Customers

“Vanderlande actively encourages its stakeholders to join forces in the realisation

of common goals.”

Stakeholder engagement (employees)

Material matrixIn sustainability reporting, ‘materiality’ is the principle that determines which topics are sufficiently important to report on. Through positive stakeholder engagement, and by assessing their input, via a workshop based on GRI reporting principles a materiality assessment is undertaken. This is used to gather insights into the relative importance of specific economic, environmental and social impacts, and highlight where Vanderlande can have the most significant impact.

The company’s previous materiality assessment was carried out in the process of writing its second Sustainability Report (FY2015). For the FY2018 report, Vanderlande has updated its materiality assessments by reviewing the sustainability issues it faces afresh, reconfirming its long-standing focus areas, and clarifying and shaping its strategy.

The materiality matrix maps out topics by their relative importance to sustainable development and Vanderlande’s business success. All topics are categorised based on the three pillars of sustainability – people, planet and profit.

The topics in the four upper right-hand sections fall above the materiality threshold for the purpose of this report and are deemed ‘material’. Those mentioned below the materiality threshold are considered ‘non-material’. It is important to note that some non-material topics can be mentioned in this report if an overlap or other instance of contextual relevance occurs.

Working with the materiality matrix enables Vanderlande to focus on the areas in which it can have the greatest positive impact, minimise negative impacts, and identify emerging issues and new leadership opportunities. Targets have been set regarding each of the materiality topics deemed important by its stakeholders.

Further information about the issues covered by the materiality matrix, and corresponding GRI disclosures, can be found in the GRI Content Index (page 38).

Materiality Assessment Vanderlande FY2018



Upholding the highest standards of health and safety is fundamental to all of Vanderlande’s stakeholders, whether it be in the initial design phase or during daily work activities. Creating a proactive health and safety culture drives the company’s reputation as a leading international employer and supplier.

As Vanderlande continues to grow, it is welcoming many new recruits across the globe. Every employee expects – and deserves – to work in a safe environment that not only protects them from the risk of an accident or ill health, but also promotes good mental health and a healthy lifestyle. Vanderlande’s care for the whole of its workforce is driven by a basic respect for human rights and the establishment of a fair and equitable society.

Workforce engagement, active involvement and the promotion of the right safety behaviours are fundamental to achieving a strong health and safety culture. This also ensures that employees are committed to promoting high standards and making continual improvements. Employee safety climate surveys are utilised in the business to identify potential areas for development and benchmarking is also undertaken.

Visible safety campaigns are designed to initiate conversations regarding safety and communicate coherent safety messages. Vanderlande’s commitment to its people means not only investing in incident prevention, but also looking at long-term ergonomic and social challenges. There is an increasing focus on issues including mental health, fitness and overall wellbeing, which complements Vanderlande’s health and safety activities.

The company’s operations involve a number of high-risk activities, which – if not strictly controlled – create the potential for fatal or life-changing injuries. In addition, activities can impact on the health of Vanderlande’s employees in regards to shift work, ergonomics, hazardous substances and business travel.

No matter where it does business, Vanderlande’s expectation is that every employee can return home safely at the end of every day. This is non-negotiable and the promotion of a proactive approach to health and safety provides the foundation on which its approach is developed.

The boundary of Vanderlande’s health and safety activities are driven by the scope of its global operations. This encompasses all locations around the world, and includes work on Vanderlande’s own and third-party sites. As an international company, it appreciates that cultural maturity and standards can vary, and are influenced by local legislation, customers, contractors and other parties, as well as the company’s own teams.

It is important to influence a wide range of stakeholders in respect to safety, as the poor performance of one could have a negative effect on others. Vanderlande has the ability to have a positive influence on many of its stakeholders, including its supply chain partners, and the actions of its employees and customers. As such, being a proactive partner can really help to control the outcomes.

Safety at work campaign

Material topics


A significant proportion of Vanderlande’s business takes place at customer locations, where it delivers integrated systems and services. Therefore, its responsibilities extend to ensuring that there is effective coordination of health and safety risks on each site. This mainly involves the company’s customers, contractors and subcontractors, but can also extend to interactions with visitors, the general public and other parties.

In addition, decisions made during the design process (see ‘Design, safety and ergonomics’ on page 18) are extremely important in terms of their influence on the safety of teams interfacing with a system. As a result, these decisions are integrated through the identification and communication of residual risks in the engineering design phase.

Vanderlande’s approach is aimed at developing leaders who can create and contribute to a health and safety culture that delivers high standards and minimises risk. A ‘safe base’ is one of Vanderlande’s core values and provides a strong foundation for its teams. These values are communicated to new recruits during their induction and reviewed as part of their ongoing appraisals.

Vanderlande’s philosophy on safety is best summarised by the saying, ‘if it can’t be done safely, then don’t do it’. The company’s CEO leads this through commitments in the corporate health and safety policy, which summarises the importance of safety within the business – ‘there is no job so important that it may be done in an unsafe manner’. This creates a strong and clear message to employees, contractors and stakeholders that safety is of the utmost importance.

Health and safety is the responsibility of Vanderlande’s line management and is supported by dedicated professionals who provide strategic direction and specialist advice. Vanderlande’s goal is to promote high standards within all of its business activities in order to eliminate accidents and ill health. This is driven through commitment at the top of the organisation and means that everyone has a clear understanding of what is expected of them.

The company recognises the importance of its managers in implementing high standards. They are responsible for leading by example and providing adequate resources for the activities under their control. Influencing the behaviours of Vanderlande’s managers supports a proactive approach to the execution of critical safety activities. This minimises the risk of accidents, and maintains a strong health and safety culture.

Vanderlande’s behavioural safety programme focuses on developing the skills of its senior managers to actively engage with teams on an ongoing basis and deal with any issues raised. In addition, user-friendly tooling and documentation has been developed in conjunction with operational teams to ensure that it provides a practical and safe way of working.

Until recently, Vanderlande’s approach to health and safety has been decentralised. In 2017, the company recruited a Global Head of HSE (health, safety and the environment) to lead its international approach, build a strong network of HSE managers, share information and best practices, align standards, and drive forward with improvement initiatives.

Targets

Health and safety at work FY2018 FY2019 FY2020 FY2021Enhance global HSE and sustainability organisation and roll out strategy √ √

Improve central collection of H&S data √ √

Organise safety climate survey √ √ √ √

Develop and roll-out H&S database √ √

Implement global behavioural safety roadshow √ √

Implement working at height best practice programme √ √

Implement moving machinery best practice programme √ √

Implement electrical safety best practice programme √

Global improvement programmes are focused on safety-critical activities and assisting local teams with tooling and training packages to support their delivery. At a local level, HSE resources provide support to teams by promoting a positive health and safety culture, planning the implementation of safety requirements, communicating legal requirements and training needs, and managing incidents.

Adhering to legislation is a basic deliverable and this is enhanced through the implementation of safety toolkits and training. Vanderlande has been recognised by external parties and customers for delivering high standards in this area. The company’s safety management systems are based on OHSAS 18001 and, in time, this will be updated to the new ISO45001 standard, which has been introduced in 2018.

Vanderlande is aware that the continued promotion of a positive health and safety culture, effective planning, clear communication structures and the ability to respond quickly to changing situations are critical. Through effective coordination and engagement at all levels internally and externally, a solid network structure is created that can adapt to changing situations and guarantees that everyone continues to stay safe.

Making the safety management system work effectively involves the need to manage the interfaces with Vanderlande’s stakeholders and promote constructive dialogue with all parties, including customers, subcontractors, employees and other representatives. This ensures that actions are aligned with stakeholder requirements, are appropriate to the activities being undertaken and are continually reviewed.

Vanderlande’s effective engagement programme is important to ensure the health and safety processes, and control measures address the risks and concerns faced by individual workers and teams. The method of engagement will depend on cultural and regional factors, and will include the country, site where the work is taking place and legislative requirements. There is no internal corporate requirement to hold formal health and safety committee meetings, however all locations are required to ensure that this is effectively managed to support Vanderlande’s core value of having a safe base.

If management/worker health and safety committees are in place, then this is usually at a site or business unit level. The meetings are attended by elected or voluntary representatives from the workforce, as well as local management and safety team members. Minutes are taken to ensure that the action points and decisions are not only recorded, but also pursued. Due to the structure of the business and its networks, it is currently difficult to identify the exact percentage of workers represented in formal committees, however this figure has been calculated at approximately 60% based on a high level review of teams.

If there are no formal management/worker meetings in place, informal gatherings and direct engagement with workers fulfil the same purpose. This ensures that all workers have a voice in influencing health and safety issues.

Vanderlande’s primary concern is for the whole of its workforce, whatever role they have and in whatever location they work. As a responsible organisation, it acknowledges that the actions of every employee reflect its commitment to health and safety. The company actively monitors its approach through quality management systems, individual representatives and annual reporting.

“Vanderlande’s commitment to its people means not only investing in incident

prevention, but also looking at long-term ergonomic and social challenges.”Safety training



The company’s material handling solutions impact upon the health and safety of those that interact with them during their entire life cycle, which can last over 20 years. Working with safe and ergonomic products and systems touches the core of sustainable business and applies to both Vanderlande’s and its customers’ teams.

Design has a significant impact across the value chain of Vanderlande’s products. Manufacturing, assembly, installation, commissioning, operation, maintenance, modifications and dismantling all need to be performed in a safe and responsible way. Various legislation and standards apply to design safety and must be taken into account.

Supplying safe solutions is a primary expectation of Vanderlande, its customers and other stakeholders. High standards of health and safety are fundamental, critical to the company’s success, and have a social impact on the people working with its systems.

Long-term ergonomic and health effects can be influenced by interfaces with displays and other human factors. Vanderlande’s solutions inherently contain moving parts, heavy items and can often involve the need to work at height. Moreover, the increased levels of automation, with higher speeds and capacities, result in increasingly complex systems and a higher potential of injury. It is important to manage health and safety issues in the design phase in order to minimise risk during operations and maintenance.

Vanderlande’s approach is aimed at developing products and solutions that integrate life-cycle safety into the design. Within its R&D department, a safety competence team is responsible for staying up to date with international regulations and certification standards. It also creates awareness, develops and rolls out training programmes, and constantly challenges the safety level of Vanderlande’s systems.

As an expert in its field, Vanderlande has a responsibility to act in the right way and influence global safety standards. With this in mind, a number of the company’s internal design safety experts are involved with international standarisation committees, such as technical committee TC148-WG2 with a focus on redrafting EN 619.

Safety is of paramount importance within the Vanderlande process map for the development of products. In accordance with legal requirements, various review sessions, failure mode effect analyses and risk assessments are integrated into the stage gate model. This means that residual risks are made available for Vanderlande’s project engineers, who take the focus of safety from a product to system level.

Integrated design safety is the responsibility of the company’s various engineering departments across the globe. To comply with legal and the company’s high standards, performing a health, safety and risk assessment is therefore part of the aforementioned process and applies to every product the company designs.

STACK@EASE ergonomic baggage handling device

Targets

Design safety and ergonomics FY2018 FY2019 FY2020 FY2021Create R&D safety design competence team √

Centralise the user interface and ergonomics design competence √

Train one certified machine safety expert √

Implement design safety process review √

Redesign the user experience of two major software products √

Make 80% of sales and technical organisation aware of the added value of user-centered design

√

Have user experience design embedded in the organisation √

Delivering a safe system for customers does not stop at the design phase. It follows a chain within Vanderlande and encompasses site implementation and inspection, as well as documentation and certification, which helps to ensure the creation of a safe working environment.

As a fast-growing company in a rapidly changing market, Vanderlande needs to adapt and improve, and continuously learn and understand the world of its customers, and factor in user-centric designs and ergonomic evaluation assessments. Over the past decade, it has delivered highly innovative solutions in line with this approach, including PICK@EASE and STACK@EASE. These have significantly decreased physical stress for employees during the processes of item picking and baggage handling.

The immediate future also shows that some developments in IT are booming, such as apps on mobile devices, artificial intelligence and big data. By considering the design of aesthetic and intuitive applications for the user, while designing smart technological solutions, the improvement of human performance and equipment goes hand in hand.

Vanderlande also has a User Experience department that designs human-system interactions, and therefore assesses such human factors as cognitive and physical ergonomics. It ensures that workplaces and user interfaces are not only designed around business and technical requirements, but also the needs, capabilities and limitations of human operators.

Proven analysis and design methods are used, such as those provided in international standards, for example: ISO 9241, Ergonomics of Human-system Interaction; and EN 1005, Safety of Machinery – Human Physical Performance. The focus on usable software and ergonomic solutions guarantees that everyone who interacts with Vanderlande systems is protected from long-term health issues.

In today’s climate, the scarcity of manual labour and high market demands are increasing the pressure on the distribution performance of material handling systems. Vanderlande believes that the next generation of ergonomic solutions will also reflect a strong human-machine interface, in which repetitive tasks currently performed by a human operator can be assisted or fully taken over by robots.

Vanderlande is investing heavily in smart robotics and it showcased its smart item robotics (SIR) technology at the LogiMAT exhibition in 2017. SIR focuses on the robotised handling of single items during order picking and infeed loading. It is an effective and low-risk way to gradually introduce robotic technology into an active environment, while retaining high levels of scalability and flexibility.

Robotising tasks reduces the physical effort required by human operators, but increases the cognitive pressure they face. Supervisory tasks will become more important, resulting in higher levels of human-to-device interaction. Systems should, therefore, be optimally designed for use with people – ‘cognitive ergonomics’. Through increased computer intelligence, Vanderlande’s systems can help its customers to make more informed choices, as well as link seamlessly to the company’s global service team.

With its market-leading position and customer base around the globe, Vanderlande senses an opportunity to optimise working conditions for a large number of workers. Alongside the obvious ergonomic factors, the company intends to work closely with customers to optimise other aspects, including environmental conditions, as well as behavioural and organisational influences. Vanderlande’s annual reporting structure, management systems, and dedicated internal and external representatives, also ensure that it can proactively evaluate its associated activities.

“As an expert in its field, Vanderlande has a responsibility to act in the right way and

influence global safety standards.”


Employee development and trainingSkilled and dedicated employees are a pivotal factor behind Vanderlande’s success, and at the centre of its ‘How to Win’ strategy. The company wants its employees to have confidence in their abilities and to feel passionate about their work, because long-term, personal and professional development results in high levels of satisfaction, motivation and engagement. Enabling people to develop and expand their capabilities will also have a positive influence on the company’s future growth.

The company believes in the added value – from both a personal and business perspective – of continuous learning. However, having access to a high standard of education is not equally available to all people. For this reason, Vanderlande is keen to support the growth of employees at every level globally, which will also help in retaining knowledgeable and talented individuals.

Technology is changing and evolving more rapidly than ever. Vanderlande needs to serve its customers in the most effective way and create loyalty to achieve sustainable profitable growth. The company’s employees develop the path to new solutions and satisfied customers, however, they need the right knowledge in order to meet the increasing demand for logistic process automation. This applies to both new and more senior employees.

Employee development and training within Vanderlande focuses on their current competency, which is based on three pillars: knowledge, skills and attitude. Within the HR department, the Vanderlande Academy plays an important role in helping employees to reach their potential. Its vision is to meet the requirements of its ‘internal’ customers by providing the necessary training programmes and closely mirroring any business developments. This is reflected in its approach – ‘short time to knowledge, learn effectively, anytime and anywhere’.

Due to continued growth, a new Vanderlande Academy (certified BREEAM Excellent) building is under construction at the company’s headquarters in The Netherlands. This is scheduled to open by the end of 2018. The building will house the company’s growing Academy team of consultants and trainers, and highlights Vanderlande’s dedication to the development of its employees.

Learning through Vanderlande aligns with the ‘70-20-10’ model. This takes a formal approach through structured programmes and courses to create an initial knowledge base. The next stage involves social learning via networks, sharing and coaching to provide insights into how to implement this basic knowledge, and then experiential learning. Vanderlande is constantly challenged by its customers to create better products, services and systems to improve their competitiveness. As a result, there are numerous opportunities for development and training on offer.

Vanderlande’s HR team also plays an important role in coordinating the training needs of employees, and facilitating learning and development activities at a local level. The concept of the Vanderlande Academy is currently being rolled out to the company’s major office locations in the USA, Spain, India and China, where its HR teams can create a strong and sustainable platform for learning. It will also provide easier access to a growing international pool of talented employees.

“In a world of technology, a belief in people”

A global approach to training is the key to achieving Vanderlande’s preferred one way of working across all of its activities and to support its growing customer base. However, having the requisite skills is not enough and the application of knowledge is equally important. The company works with standard processes across the world and the next step is to roll out learning modules on how to apply these. This will further improve Vanderlande’s flexibility and international workload levelling.

In addition, ‘train-the-trainer’ programmes facilitate growth in local and regional competences. The materials used in these courses are standardised and centrally maintained by the Academy. Local aspects, such as language courses and specific safety standards, are organised by individual office locations. Vanderlande’s aim is to create the necessary tools and materials to keep all employees skilled, motivated and informed throughout their career – wherever they are located.

Employee training

Vanderlande faces various challenges, and its activities often require skills and knowledge that are not within the scope of educational establishments and cannot be transferred easily. The increasing speed of developing advanced technology drives Vanderlande’s business and continuous learning is vital. The company’s skilled and dedicated people can become experts in their fields, as well as improving their ‘soft skills’. Due to the company’s fast growth, Vanderlande’s experts can become mentors, teachers and leaders for the next generation of employees.

The company’s approach to training and development also focuses on prospective employees. The global recruitment market is challenging in terms of accessing people with the right attitude and skills, which is why Vanderlande actively connects with schools to promote technical professions from an elementary level through to university. It organises guided tours and participates in networks that promote relevant skill sets. It also arranges seminars for students and an annual event to open up the male-dominated technical world to women.

Overall, Vanderlande’s approach is forward thinking with the intention of developing the skills and knowledge that are required both now and in the future. Internally, the company measures its progress according to the levels of employee satisfaction. Every year, Vanderlande takes part – and performs favourably – in the ‘best employer’ survey (see ‘Employee engagement’ on page 22). For additional transparency, it also believes that highlighting the average number of hours per individual, per annum represents a fair way of demonstrating its commitment to employees.

At the close of FY2018, Vanderlande had 5,501 employees. The company is in the process of internationally aligning the registration of training hours. For 3,748 employees in four locations (The Netherlands, United States, India and China), information on training hours is collected centrally. Information from other locations is available, but Vanderlande has decided to disclose this when it is also collected centrally. For FY2019, Vanderlande wants to increase central data collection on employee development and training to 80%. Data represents FY2018, a 15-month period.

Targets

Employee development and training FY2018 FY2019 FY2020 FY2021Establish dedicated learning consultant position to ‘train the trainers’ √

Establish network of specialist parties for training material content √

Roll-out global leadership training √ √ √ √

Build BREEAM excellent academy training centre at HQ √

Ensure global coverage of critical courses √

Steering committee to determine global strategic priority on required competences √

Select new learning management systems tooling √

Continue centralising development and training information, covering 80% of employees

√

29.6

69.5

Higher management

Male Female

Centrally registered staff trained: 3,748

Hours of training: 76,994

Overall average: 20.5 hours

27.9

36.9

Middle management

Male Female

20.517.1

Other

Male Female

Amount of training hours


Employee engagementEmployee engagement is not easily defined. Dedication, focus, involvement and the drive to go the extra mile are all clear expressions of motivated employees. However, they are not solely created by offering fair compensation and benefits. Other needs must be met to create a positive working environment.

Vanderlande wants to attract employees into its growing business who proactively add value and align with the company’s strategic goals. The global recruitment market is challenging in terms of accessing individuals with the right talent, skills and levels of competence. Even after recruitment, retaining and developing employees is crucial in order to keep them engaged, and help them to add value to the business.

Vanderlande has an extensive global workforce, and every employee has different needs relating to their personal circumstances, culture and expectations. To keep the right people, the company needs to focus on both individual needs and the interconnectivity within and between teams to maintain a positive atmosphere. Vanderlande’s business is changing, and its employees face ever-increasing external societal demands and pressure, which can create turmoil, uncertainty and stress.

Employee engagement is evident across Vanderlande’s global community. The company is involved with each individual through the employer-employee relationship. For prospective employees, Vanderlande reaches out via marketing campaigns and other connections. The company believes that strong leadership is the key to engaging its employees. Managers must understand the personal needs, motivations and ambitions of each individual in their team to inspire them to achieve optimal work results.

Vanderlande hopes to increase the levels of engagement from its employees by promoting and improving the interpersonal skills of its leaders and focusing on creating and maintaining an open and respectful working environment. It is necessary to act from the top-down to create a long-term healthy workspace. This will result in an environment in which everyone feels comfortable and valued, as well as confident that their opinions can be shared.

Vanderlande’s recruitment department plays an important role in maintaining its culture and values. Throughout the recruitment process, it ensures that the people it hires match the company’s core values. A ‘drive to win’, with a sense of ‘team play’ and ‘ownership’ are essential drivers for Vanderlande’s success.

Town Hall meeting in Veghel

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Level of employee engagement at Vanderlande (Veghel, The Netherlands)

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Selecting the right employees, and making them feel at home from the start of their careers, is something the company has a strong focus on.

In previous years, Vanderlande’s efforts to integrate new employees into the organisation have increased significantly. New employee training programmes, e-learning modules, ‘buddy’ systems, company tours and onboarding classes are now a vital part of the way in which it supports new employees and helps to familiarise them with the company. Vanderlande utilises both central and decentral governance. On the one hand, it relies on one way of working and central knowledge building. On the other, personal entrepreneurship is an important driver. In addition, due to the international scope of

Vanderlande’s activities, specific local cultures and customs are actively recognised and encouraged.

There is a small percentage of Vanderlande’s workforce (below 10%) who fall under collective bargaining agreements on an industry level. However, applying or following this type of agreement is not a standard way of working for the company.

Vanderlande strives to be a good employer, remain competitive and attract the right employees to add value to the business. The terms and conditions of employment meet and/or exceed the legislative standards of the countries it operates in. On an organisational level, the company follows the Hay job evaluation systems for all employees. These include a standard HR cycle covering such aspects as appraisals, pay reviews and the setting of targets.

Shanghai (China)The 2017 team outing to Shanghai was a huge success. Participants were randomly assigned to different groups and challenged to a series of ‘games’. This helped to increase cohesion between the team members and establish better lines of communication and trust between departments. Overall, it was a great step forward in building trust and inter-departmental relations.


Targets

Employee engagement FY2018 FY2019 FY2020 FY2021Recruit employee engagement (HR) officer (UK) √

Employee engagement survey The Netherlands √ √ √ √

Roll out global leadership course √ √ √ √

Deploy activities relating to mature workforce in order to keep them fit for work and increase engagement levels

√

Develop and roll-out employee engagement survey for global customer centres √ √

Keep employee engagement level (The Netherlands) above FY2018 level √ √ √

The backbone of the HR organisation is created via standard human capital tooling and processes. These are centrally investigated and tested before being internationally rolled out. In this way, Vanderlande can create equal standards and opportunities for all of its employees.

In FY2018, the roll-out of Vanderlande’s new human capital management tool Workday was completed. All HR employees now work in a standard way via one tool. Appraisals, salary reviews and requests for leave are now processed in a uniform way globally. Workday also allows Vanderlande to gain valuable insights regarding its employees worldwide, such as their role in the organisation, and their capabilities and aspirations.

Vanderlande’s workforce is maturing alongside the company. Everyone celebrates together when an employee reaches a milestone anniversary, and every year this list gets longer. This maturing workforce will be an important influence over the coming years. For example, research focusing on site-based service teams has highlighted a point of attention relating to night shifts, which will be addressed in FY2019 and FY2020.

The results of Vanderlande’s FY2018 employee satisfaction survey highlighted that – at its headquarters in Veghel – 55% of participants were ‘engaged’. The company is incredibly proud of this result, which is significantly higher than the global industry figure of 37%. Similar surveys have been performed across Vanderlande’s various locations, and in FY2020, a global employee satisfaction survey will also be carried out. The results will be published in the next Sustainability Report.

Vanderlande experienced some fluctuations in the engagement levels of its employees due to certain other factors. These include its rapid growth and new ownership by Toyota Industries Corporation, as well as process, cultural and societal changes. Despite being higher than the industry average in terms of staff satisfaction, Vanderlande believes that it is essential for long-term sustainability to further increase the connectivity between its employees.

Barcelona (Spain)Cursa de la Dona is Europe’s largest female sports event. Eight cities in Spain all enjoy taking part in popular athletic pursuits, as well as showing solidarity. In 2017, Vanderlande colleagues participated in this unique event and enjoyed the experience!

Sydney (Australia)In 2017, colleagues from the Vanderlande Sydney office participated in the Sydney Run festival. More staff are joining every year. Great fun!

Site visit involving younger employees

The company strives to create an engaging environment, in which professional and personal growth go hand in hand. By embracing ways for its employees to grow, everyone can share in Vanderlande’s success.

Vanderlande aims for all employees to broaden their horizons, and to maximise their potential via challenging projects, internal job mobility, personal development and other activities during and after work hours. As such, the company supports team-building experiences on both international and local levels. Recent examples have included the team outing in Shanghai (China), the Sydney Run festival (Australia) and the Cursa de la Dona (Spain), which is Europe’s largest female sports event.

For Vanderlande’s employees, opportunities for further engagement are prevalent everywhere. These may arise from a customer that sets ambitious targets, colleagues, or an energetic and respected manager who constanly inspires those around them. Vanderlande wants to enable all employees to broaden

their horizons, maximise their potentional, enjoy job mobility, and undertake personal development programmes, as well as participate in activities during and after work hours.

Engaging younger employees In the beginning of 2015, Vanderlande launched an internal organisation whose aim is to help the company’s younger employees to extend and strengthen their networks by bringing them into contact with other like-minded employees. In addition, it has been designed to stimulate cross-departmental knowledge-sharing, and personal and professional development. This is achieved via a ‘buddy’ system, and through various activities such as workshops, lectures, case studies and visits to external companies.

“Vanderlande strives to create an engaging environment, in which professional and

personal growth go hand in hand.”


Energy use (products and systems)Respecting the natural capacity of the planet is one of Vanderlande’s three main drivers. It is imperative to support the UNFCCC Paris Climate Agreement, which has the central aim of strengthening the global response to the threat of climate change. The intention of the agreement is driving down the emission of greenhouse gases, and create transparent and supportive frameworks.

Emissions cause a global challenge and generally arise at the source of the power production. However, the consequences of these impacts do not necessarily occur at the production site itself. Users, such as governments and other companies, face the ongoing risk of using energy, for example taxation on carbon emissions, which can lead to significant additional costs. As a result of climate change commitments, some countries are creating legislation that drives down the use of energy and encourages the production of renewable alternatives. To prevent the further build-up of non-renewable energy supply capacity, innovative solutions need to be implemented in order to reduce energy use, as well as focus on local renewable energy supplies.

The company’s stakeholders already recognise the influence of Vanderlande in the design and implementation of products and systems, which enables it to strongly impact on the use of energy at customer sites.

The energy use of Vanderlande’s systems has a significant influence on the life-cycle impact of its products, ranging from mechanical equipment and controls, through to software and hardware. Other challenges must also be addressed.

The growing demand for quick delivery times across the world, increasing cost of human labour and expectation for high service levels is increasing the demand for automated material handling systems. Better insights into energy use will create opportunities to become energy predictive, and help to increase the efficiency within the logistics network.

Vanderlande wants to support its customers in meeting their sustainability commitments. Energy measurements have been performed at various customer sites for decades, and a more structured approach within Vanderlande’s products and systems has recently been implemented with this in mind. The company focuses on the energy use of its products that have been developed in-house, and it is making steps to compare its systems on a solution level, where its influence is the largest.

During the development of the BLUEVEYOR, Cradle-to-Cradle life-cycle assessments were performed, which generated valuable insights into energy use. Across an expected 15-year life cycle, the impacts generated from the ‘use phase’ were 85%. This means that these are far greater than the impacts caused by, for example, the extraction of raw materials for manufacturing and the shipping of equipment.

The largest contributor by far within the ‘use phase’ relates to the energy consumption of the equipment. This input and other detailed results were used to improve the design of Vanderlande’s standard products, as well as its predictive calculation models. The company’s software is also used to optimise the electrical layout and grid connections at future customer sites.

FLEET

Vanderlande expects more energy-related regulations to enter the material handling industry in the coming years. For this reason, it participated in ECoDeMISE, which was overseen by the Karlsruhe Institute of Technology and the partners of the FEM (European materials handling federation).

With this initiative, various research institutes and companies cooperated to create a guideline for the standard calculation and measurement of energy consumption for various material handling systems. ECoDeMISE is also a positive example of how competitive companies are able to cooperate in the pursuit of a worthwhile objective. At the time of writing this report, at an industry level, no standard for comparative measurement is available. For this reason, Vanderlande cannot objectively disclose the energy use of its products.

Vanderlande works closely with its customers and suppliers to develop new solutions and insights. As a result, it has helped to promote the use of low voltage-driven equipment, which has been implemented to create smaller, more efficient and modular products. Leading by example, Vanderlande will soon roll out a full IE4-supported (super premium efficiency) range of products in each of its market segments.

In addition, the company’s life-cycle services provision offers a comprehensive range of options for customers. Vanderlande’s process engineers work closely with customers to improve the flow of goods, assist with energy-related topics and undertake energy scans. When energy consumption is better understood, opportunities to make savings become more visible.

These range from the smarter use and improved balancing of operational systems, to implementing improved products or switching to different material handling solutions. By making changes to software settings, improving process (batch) control and managing redundancy in the system, it is possible to make them more efficient.

New circular business models create a demand for increased insights into the life cycle of an asset. Not only is energy use a major influencer in the total cost of ownership, but it is also used as input for Vanderlande’s ‘big data’ framework. Combined with sensor and flow data, and smart algorithms, the company

is aiming to increase its business intelligence capabilities and move towards a more predictive approach. In support of this, Vanderlande utilises a dedicated data science team to work on these topics.

On a global level, the energy production transition towards a low carbon economy is in progress. Moving away from the use of fossil fuels to renewable alternatives will take time to be implemented and achieve the desired outcome. In addition, there is much to accomplish from an innovation perspective.

The potential for Vanderlande’s products to store and recover energy, and to change the way logistic chains are designed, remains open for further development. However, the targets that the company has set itself in terms of the energy use of it products and systems are clear. As a responsible organisation, Vanderlande is dedicated to the continuous evaluation of its performance on energy and has structures in place to assess this correctly.

Targets

Energy use (products and systems) FY2018 FY2019 FY2020 FY2021Pilot energy monitoring software at first customer site √

Publish ECoDeMISE report on energy consumption determination methods √

Promote alliances with customers to create joint initiatives √ √ √ √

Roll-out energy monitoring software at five customer sites √

Review and consolidate energy-related demands of key customers √

Improve and validate predictive energy modelling software √

Sell five energy reduction consultancy projects per region √

Set energy reduction objectives for products and systems √ √

“Vanderlande works closely with its customers and suppliers to develop new

solutions and insights.”


Sustainable product design

Vanderlande is a vertically integrated solution provider. This role begins with in-house product development, and continues through to life-cycle services and dismantling. Product design involves the selection of appropriate materials and from a sustainability perspective includes the consideration of key attributes of those materials such as costs, processing and transportation, hazardous content, scarcity and human rights issues in the locations where they are sourced.

Unless recycled or regenerative materials are used, raw materials must be extracted somewhere in the world. Oil spills, soil erosion and deforestation are just some of the potential consequences of selecting a specific type of material.

Over 80% of the company’s impact on the environment is determined during the design phase in which a range of materials can be selected. A good design considers a product’s purpose, including its energy use and potential for repair, reuse, remanufacture and recycling. In addition, a design not only focuses on the potential waste stream, but also on safe maintenance and dismantling.

Product design touches the core of Vanderlande’s business and it strives for optimal sustainable product design choices. These relate strongly to the circular economy. As a market leader, Vanderlande has a responsibility to motivate others to design sustainable products. The impacts of product design can be seen at an early stage, beginning with the extraction of raw materials and their subsequent transport.

All Vanderlande’s products are developed to follow the stage-gate process in which a design starts with an ‘opportunity’ and ends with a product’s ‘end of life’ stage. Each ‘gate’ comprises a list of

deliverables and a set of decisions that must be made in order to proceed to the next phase. Vanderlande’s influence is the creation and life cycle of all products that the company has designed in-house.

Ecodesign involves the integration of certain environmental factors into the design of the company’s products. By improving their design, this can have a spillover effect across Vanderlande’s future installed base for the full life cycle of its products. It has not yet been fully implemented by Vanderlande, however certain aspects of the ecodesign philosophy have been integrated into the design process, and some developments have been executed in full accordance with these principles.

A product undergoes an ongoing change during its life cycle. For example, new legislation can result in the update or redesign of Vanderlande’s products to meet these changing standards. Improved insights arising in the manufacturing processes can also help to remove hazardous substances during production. Other improvement processes focusing on cost and risk reduction mean that Vanderlande continually reviews its products and manufacturing techniques and keeps up with technology changes and development opportunities.

For the majority of Vanderlande’s equipment, there is a fixed component structure, combined with moving parts that suffer from wear and tear. This makes the company’s products highly suitable for repair and long-term refurbishments, and improves the longevity of its systems. Alongside mechanical upgrades, software and hardware updates can be performed to keep Vanderlande’s systems operational and protected in the long term.

BLUEVEYOR

Targets

Sustainable product design FY2018 FY2019 FY2020 FY2021Redesign TUBTRAX carrier based on circular design principles √

Assess sustainability classification systems √

Apply circular design principles to one major development project √

Apply super premium efficiency class motors (IE4) to high-runners in all market segments

√

Move forward with sustainability classification system √

Develop sustainable conveyor belt √

Develop programme and train ten engineers in circular design principles √

Determine way forward for material passport √

Execute R&D sustainable development project per business segment √ √ √

The company is testing the concept of a ‘material passport’ on a number of products, in which every material is documented. This contributes towards the circular economy, and creates further opportunities to recover, recycle and reuse raw materials. Steel is one of the most heavily used materials in Vanderlande products and it retains an extremely high overall recycling rate.

Vanderlande’s sustainable design started in 2010 with the BLUEVEYOR, a project that was guided by ecodesign and Cradle-to-Cradle principles. This concept conveyor achieved a 68% reduction in the carbon footprint compared to the company’s conventional conveyors. A second phase of the BLUEVEYOR (2.0) was released in 2017, and energy measurements showed a consumption that was up to three times lower than standard conveyors.

By changing its business models into circular ‘as a service’ concepts, Vanderlande expects to overcome certain sales limitations. Following successful prototypes and pilots, specific structural changes will help the company to work towards a more circular economy.

Another positive example is Vanderlande’s new baggage carrier, which is used in airports and constructed of 100% recyclable mono-material. However, baggage carriers of a previous generation that were not designed to the latest standards, cannot be recycled with such ease. Vanderlande has decided to address this issue by putting it in the public eye and is refashioning older carriers into contemporary sofas. The first units have been successfully delivered to Schiphol, Vancouver and Hong Kong airports.

To better evaluate its activities, Vanderlande is in the process of selecting a product sustainability classification system. Before FY2020, a circular design workshop will be organised for a select group of R&D engineers, and BLUEVEYOR developments will continue to create a fully recyclable and low-energy use conveyor belt. This will make it possible to more accurately predict the effect on the company’s footprint, as well as guide its decision-making

process. Vanderlande’s positive spirit has created promising results in recent years and these can be quantified more effectively using a classification standard.

Investing in smarter solutions for waste and finding ways to reuse raw materials are not always regulated, but they are increasingly becoming an ethical issue for many companies. Vanderlande hopes that the knowledge it has gained from creating the sofas, for example, will stimulate further innovation and help it move closer towards the circular economy. It is also a strong indication of how the company is proposing to close the loop (particularly in relation to plastic) and turn waste into new products.

Within the GRI reporting standards, there is no specific disclosure available relating to sustainable product design. Vanderlande is in the process of determining in what way the company can provide support to an industry-standard product sustainability classification. The company believes that this is an industry issue involving many stakeholders – in particular in the supply chain and waste industry – and needs to be addressed at industry level.


Responsible sourcing

Vanderlande believes that establishing a healthy and fair society – which is at the heart of responsible sourcing – is a fundamental need that applies to employees, customers and the global community. The company also expects its suppliers to fulfil their corporate social responsibilities.

Material handling solutions are made of physical components, which require raw materials to be extracted, processed, formed and treated. To do so, energy is required and waste is created. Vanderlande shares responsibility for minimising these impacts.

Vanderlande spends a significant part of its revenue (approximately 65%) on its supply chain. To produce – or procure – a product or service, impacts can be seen at locations where raw materials are extracted. They are also visible when materials are transported to and at manufacturing sites where they are later fashioned into products and systems.

With its increasing global operations, sustainable product design and processes, as well as its supply chain, Vanderlande has an influence on the relative size, location and type of sustainable impacts that occur. The company chooses to focus on its own direct activities and those of its direct suppliers.

Vanderlande’s global supply chain is managed by dedicated centres in Europe, the USA and Asia, which work with local manufacturing and installation companies and suppliers. The ‘one design, one quality’ principle enables Vanderlande to be flexible in shifting production all over the world. It operates an end-to-end supply chain, in which manufacturing, subcontracting and procurement processes are managed and measured.

The switch from utilising a single supply centre in The Netherlands to three dedicated supply locations has been made in the past decade. This was originally decided to lower lead times and costs, but reducing Vanderlande’s carbon footprint was an important side effect. Close cooperation also allows the company to switch to local production sites on each continent that are closer to customers, so that less equipment is required to be shipped – and over shorter average distances.

As part of Vanderlande’s continuous improvement strategy, its Supply and Delivery Excellence programme has been introduced. This aims to further optimise the supply chain and create a global strategy on sourcing. To improve costs and reduce risks, Vanderlande wants to increase its expenditure on preferred suppliers. In order to facilitate better cooperation, the company has made the move from project-based contracts to long-term framework agreements. These create mutual commitment, insights and increase trust.

Vanderlande has continually focused on making the procurement and supplier code of conduct an essential part of the framework contracts it signs with suppliers. Since FY2018, renewed attention has been directed towards its implementation. This is a starting point for discussions on sustainability and moving closer to achieving these ambitions. Human rights, which translate into labour conditions, are an important theme within this document.

Vanderlande’s procurement and supplier code of conduct fully complies with the basic principles as specified in the UN’s global compact platform. It was compiled in line with: international labour office conventions; the UN’s universal declaration of human

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70%

80%

90%

100%

0

50

100

150

200

250

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Hund

reds

Framework contracts including code of conduct

Number of framework contracts (YTD) Percentage of framework contracts including code of conduct

Targets

Responsible sourcing FY2018 FY2019 FY2020 FY2021Initiate Supply and Delivery Excellence programme √

Audit high-risk suppliers √ √ √ √

Define and create baseline for global supplier classification process √

Reach 25% code of conduct implementation of signed framework contracts √

Integrate Dun & Bradstreet principles in GSC process (supplier risk identification) √

rights and conventions on the rights of the child; the convention on the elimination of all forms of discrimination against women; and the OECD’s guidelines for multinational companies. The code of conduct also concerns the expectations that suppliers have towards Vanderlande.

Vanderlande is committed to ensuring that working conditions within its supply chain are safe, workers are treated with respect and dignity, and manufacturing processes are environmentally responsible. The company’s objective is to increase the level of signed codes of conduct to 25% of the framework contracts by FY2019, with the ambition of increasing this up to 70% within five years.

Vanderlande is not reporting on topic specific GRI disclosures at this stage, but estimates that it is more appropriate to disclose the amount of code of conducts signed as part of a supplier framework contract.

Vanderlande sees significant challenges in the market of ‘off-the-shelf’ commodities, in which the company is a relatively small player. Its influence is minor, apart from in applying global standards and measures. However, the suppliers that Vanderlande selects to manufacture and deliver the company’s in-house designed parts and equipment are easier to influence, and there is a significant responsibility in this respect. By choosing the right partner and producing the best product, Vanderlande can make a positive impact.

Many of Vanderlande’s projects involve subcontracted labour. All of these are managed with a strong attention to health and safety and subcontractors are managed as if they were Vanderlande’s own employees. Examples include safety toolbox meetings, preventive control measures, personal protective equipment, and creating awareness through active engagement and training.

To close the loop, Vanderlande regularly audits its partners and, based on a risk priority number process, it determines the suppliers that carry the highest risk. The level of risk is based on three factors: the criticality for Vanderlande’s business; the performance of the supplier over a specified period of time; and the expenditure on a supplier per annum.

Alongside other aspects, Vanderlande verifies supplier agreements and quality manuals, product specifications and quality management systems. In all of its audits, health and safety is taken into account. In the long term, Vanderlande fully expects

to increase the potential scope of its audits to include additional topics, such as information security.

Internally, Vanderlande has compiled a code of conduct for employees that helps them to deal with the ethical dilemmas they may face at work. The company continually promotes strong ethics and strives to lead by example. To further protect employees, Vanderlande’s whistle-blower policy has recently been updated. Alongside the codes of conduct, employees can easily access these documents through Vanderlande’s intranet page.

To assess its activities with regards to responsible sourcing, Vanderlande utilises specific evaluation tools, including: ongoing supplier audits based on risk priority profiles; code of conduct KPIs; and an EcoVadis assessment (EcoVadis is one of the world’s leading platforms for environmental, social and ethical performance ratings for global supply chains). At all times, Vanderlande aims to set a good example and display faultless ethical behaviour, supported by its partners, and guided by clear frameworks and codes of conduct.

“Vanderlande is committed to ensuring that working conditions within its supply chain

are safe, workers are treated with respect and dignity, and manufacturing processes are

environmentally responsible.”


Circular solutionsFor many years, corporations have followed the traditional linear ‘take, make, dispose’ production model in which products are manufactured, used and then disposed of as waste. However, with the growing scarcity and depletion of natural resources, this process cannot continue. Many materials are becoming increasingly costly and used at a rate that is unsustainable, and the percentage that can be recovered by conventional recycling is not enough to fill the gap.

Consequences are generated in locations where raw materials are sourced, and where waste is handled and disposed of. Vanderlande has long recognised that it must evolve from this linear process to a circular-based model. In this way, materials are selected not just for their short-term tangible properties, but also for their effect on people, the environment and their capacity for reuse.

Establishing a circular-based economy is one of Vanderlande’s three main drivers. By designing products and services in a circular way, risks will be reduced, opportunities to learn will be created, and the company will become better able to adapt and perform optimally every day. A number of positive outcomes can also be achieved, including a reduction in raw material use, waste and emissions, as well as the enhanced use of resources. It will also help Vanderlande move towards closing energy and material loops.

Vanderlande’s stakeholders believe that by creating truly circular services and products, the company can be both highly successful in the future and create a positive impact on sustainable development. Vanderlande is highly vertically integrated: it not only designs products, but produces, integrates and installs them, as well as offering services, such as end-of-life upgrades and the dismantling of systems. The company’s influence on circularity has the potential to be great within the correct business model, where Vanderlande’s responsibility across the life cycle of a product is increased.

Vanderlande designs and manufactures products that require raw materials, which are supplied from third parties via the supply chain. Its customers currently procure and own Vanderlande products and systems and – as a result – are responsible for any waste generated during their operation, maintenance and end of life. This includes spare parts, replacements or refurbishments, and means that the crucial aspects of managing materials and waste are outside of Vanderlande’s control.

Overall, Vanderlande has a limited influence over the sourcing of raw materials and waste management processes at its suppliers. However, it has a significant influence on the selection of materials and their design in order to enable repairs, reuse, remanufacturing and recycling. It can also influence the business models that are required to create a more circular approach. By improving these, as well as fine-tuning responsibilities and accountabilities in relation to its products and services, Vanderlande can refine and support the development of circular solutions.

To develop market-leading solutions, Vanderlande listens to its customers to ensure that the company delivers products and services that meet changing demands and trends. Requirements from a sustainability perspective are becoming increasingly important drivers for customers and link longer term societal and environmental challenges with Vanderlande’s growth as a business.

Vanderlande’s development of circular solutions focuses on the total cost of ownership alongside the environmental costs. This allows it to provide market-leading solutions that support customers while taking care of everyone’s collective future. The company sees it as its responsibility to cooperate with partners, customers and other third parties to evolve towards circular systems. It is an opportunity to further integrate its activities along the value chain, and strengthen customer engagement and service levels.

MATERIALS PARTS PRODUCTS USE

RECYCLE

REMANUFACTURE

REUSE

REPAIR

WASTE

Closing the loop

Vanderlande utilises a three-phase programme to support its interests. Each phase is an amalgamation of themes, ambitions, initiatives and a corresponding timeline. Themes include Cradle-to-Cradle and circular economy principles. By offering innovative business models such as ‘pay per use’ or ‘products as a service’ concepts, Vanderlande’s customers can access the lastest technology, while helping to keep products, components and materials operating at the highest level for as long as possible.

This approach allows Vanderlande to increase the scale of its operations by optimising repairs, reuse, remanufacturing and recycling processess across the global customer and supply base. This enables the company to reduce waste and increase its capabilities to act in a circular way, and Vanderlande believes that this will benefit customers and the environment, as well as contribute towards its ongoing business success.

In line with this, Vanderlande has decided to support the Platform for Accelerating the Circular Economy (PACE) – a public-private collaboration co-chaired by the CEO of Philips, and the heads of the Global Environment Facility and UN Environment. PACE aims to create change at speed and scale by enabling its supporters to broker partnerships that will expand existing, and kick-start new, circular economy projects.

Supporting companies will be able to address cross-cutting barriers to scale the circular economy through a Global Leaders Network. They will also be able to link networks and knowledge, and share best practices and policies across existing institutions. Vanderlande has pledged that by 2020 it will have successfully launched new solutions and services that fully close the loop by utilising innovative business models.

A first step towards this is FLEET, a flexible logistics solution that replaces the need for fixed conveyors and sorting systems. It combines Vanderlande’s passion for creating technical innovations that deliver a seamless experience with its desire to use natural resources responsibly. By utilising autonomous vehicles, FLEET facilitates new business models and consumes up to 50% less energy than traditional baggage handling systems. The design of the solution also means that the vehicles can be recycled, which contributes to a circular economy.

FLEET was chosen as the winner of the 2017 inter airport Europe Innovation Award in the interTERMINAL category, which was voted for by the global airport community. Moreover, it received the top distinction in the ‘Red Dot: Best of the Best’ competition. In 2018, designers and manufacturers from 59 countries submitted more than 6,300 objects to the competition, which credits the best products manufactured each year. The ‘Best of the Best’ award is reserved for designs that the panel of experts deems to be of a superior quality.

To help close the loop and minimise waste, Vanderlande has also challenged itself to reuse equipment, procured items or systems that are not consumed in the execution of a project or service. This process – managed by the company’s Reverse Logistics department – allows Vanderlande to remove materials from a project and return them to its European supply chain centre in Veghel for future use.

As part of a continuous process, these materials are sorted, itemised and made available as stock, either displayed or stored. In October 2016, the Reverse Logistics department celebrated a milestone. For the first time in its existence, it returned materials

“By designing products and services in a circular way, risks will be reduced, opportunities to learn

will be created, and Vanderlande will perform optimally every day.”

Targets

Circular solutions FY2018 FY2019 FY2020 FY2021Achieve reverse logistics value above € 1 million √

Deliver project with pre-owned equipment √

Support Platform for Accelerating the Circular Economy (PACE) √

Create plan for customer engagement on circularity √

Secure three pay-per-use customer contracts √

Select and roll-out R&D training programme on circular design √

Select circular solutions company disclosure √

Keep reverse logistics value above FY2018 level √ √ √


€ 0

€ 200,000

€ 400,000

€ 600,000

€ 800,000

€ 1,000,000

€ 1,200,000

€ 1,400,000

€ 1,600,000

FY2014 FY2015 CY2015 (9 months) CY2016 FY2018 (15 months)

Reverse value

to projects, spare parts, manufacturing, suppliers and anonymous stock with a total value greater than € 1 million over a period of less than ten months. In 2017, the total value of returned materials exceeded € 1.5million.

Another major advantage of having Reverse Logistics is the support that it delivers to project execution teams and the R&D department. In cases of missing or damaged materials, equipment can be obtained with minimal lead times.

An equal initiative is organised directly for Vanderlande’s customers in which systems or products that have become obsolete, can be used again. Through this, the company has been able to help customers in the airport and parcel markets match their changing requirements and reuse equipment from other sites.

As pledged during the World Economic Forum, Vanderlande is committed to accelerating the circular economy and reporting in line with GRI principles. Within these principles there is currently no specific disclosure relating to circular solutions. For this reason, Vanderlande will report on the reverse value of the Reverse Logistics department. In the coming years, the company aims to make improvements on the disclosure and reporting of its progress to accelerate the circular economy.

Corporate governance

Effective leadership, transparency and the delivery of high standards have formed the basis of Vanderlande’s success. They also provide a foundation for meeting increasing societal demands for strong corporate governance, which will sustain the company’s long-term future. This creates the drive, motivation and opportunity to progress the challenging materiality topics that are critical to Vanderlande’s success.

Corporate governance is also an important topic arising from the materiality assessment performed by Vanderlande’s stakeholders. They believe that the way in which the company conducts itself as a business has a significant impact on its reputation. Responsible companies such as Vanderlande – with honest working relations and a correct approach – can prevent bribery and corruption, and in doing so, contribute to a fair and equitable society. Vanderlande believes that it can lead by example to maintain its reputation. It is growing and adapting globally, and international economic and societal differences influence the company’s culture and way of working. Therefore, the company wants to maintain the highest level of cultural respect, and take care of its people in their day-to-day activities, while retaining the one company approach.

The influence of sustainability is both internal and external, and involves employees, customers, suppliers and local communities. Vanderlande is committed to acting responsibly wherever it does business. Within the Board, the CTO is responsible for sustainable topics and oversees the relevant programmes. In 2017, Vanderlande’s policy on this topic was updated and signed by the CEO.

Vanderlande utilises the potential of its network to actively contribute to global sustainability goals. The company believes that governance is about supporting and empowering employees,

by setting the standard and facilitating decision bodies, processes and policies. This will result in gradual change and ensure that sustainability becomes ingrained in their actions.

To guide a growing organisation, Vanderlande has published its vision, which incorporates three high-level key drivers for achieving a sustainable society. This is translated into the three pillars of sustainability, with each connecting to specific goals and targets. Vanderlande has also created the ONE company approach. This allows it to execute a larger volume of projects more effectively, with less risk and to the highest quality.

By having one approach, culture and set of tools, Vanderlande is better equipped to realise growth. This will result in a balanced international workload, and the maximum use of local knowledge and capacity across the company’s supply and engineering centres. The ONE company approach will also ensure that Vanderlande continues to respect cultural and societal differences, but retain one way of communicating and acting towards customers. This is also supported by its training programmes on cultural awareness.

Vanderlande’s sustainability organisation is still growing, and spreading out with new roles and champions globally. All employees are role models and everyone is expected to meet the company’s high ethical standards. Equality, mutual respect, and acting fairly and with integrity are at the core of Vanderlande’s employee code of conduct: Good Business.

In addition, Vanderlande’s HSE activities are now organised on a global scale. With an international workforce and increased mobility, new roles are only filled by the most suitable candidates. To maintain the highest standards, Vanderlande embeds quality management systems, such as ISO9001, ISO14001 and ISO50001.

CEOR. Brunschwiler*

CTOV. Kwaks

MD AA. Manship

MD WPT. Verkuijlen

COOG. Bossink

CFOH. Molenaar*

CHROR. Lamberts

> Global Services> Marketing and Communications

> IT Solutions> R&D> Systems> Sustainability

> Sales> Project Execution> Services> PG APC> PG FLEET

> Sales> Project Execution> Services

> Operations> Supply Chain> Manufacturing> HSE> PG Beewen> PG Robotics> PG Smatec> PG Dinamic

> Finance and Control> Legal> ICT and Quality> Global shared services> Continuous Improvement Board

> Human Resources> Vanderlande Academy

*Statutory responsibility

Company structure


In 2018, it was also assessed by EcoVadis in terms of its sustainability rating, achieving a silver rating and the company is striving for a gold rating in 2020.

In 2017, the acquisition of Vanderlande by Toyota Industries Corporation was a major topic on the agenda of various bodies within the company. In particular, the Works Council was highly involved in the process, and continues to update and align employees regarding important topics, such as strategic market and business developments, and employment conditions.

Vanderlande is a founding father, associate and active board member of the Make Next Platform. This initiative was established alongside other innovative OEMs to accelerate ‘scale-ups’ in support of the Dutch manufacturing industry.

Vanderlande is also a member of Brainport Industries and participates in various activities within its branches. The cooperation among industry, knowledge and educational institutions and the government – the so-called ‘triple helix association’ – is unique and a key driver for the Brainport region’s success in The Netherlands.

The FEM (European Materials Handling Federation) has represented manufacturers of material handling, lifting and storage equipment since it was founded in 1953. Vanderlande is actively involved in this initiative, of which its employee Jan van der Velden was president from 2012 to 2016.

Globally, Vanderlande is a member of other associations, such as the Australian Industry Group and the Confederation of Indian Industry. In addition, the company is a part of the International Association of Airport Executives Canada, the Australian Airports Association and the Airport Operators Association (UK).

By having a strong network, Vanderlande can promote proactive cooperation between a multitude of partners both locally and globally. This will also help the company to achieve its sustainable ambitions, as well as meet the increasing demand for effective corporate governance. To ensure that Vanderlande is aligned correctly in this area, it closely monitors – and follows up on – its activities through yearly EcoVadis assessments and quality management systems, for example.

Targets

Corporate governance FY2018 FY2019 FY2020 FY2021

Elect board representative for sustainability √

Create sustainability report, using GRI framework (core) √

Renew and roll-out employee code of conduct and whistle-blower policy √

Achieve ISO50001 at three offices in The Netherlands, United Kingdom and Germany √

Improve EcoVadis rating at HQ: bronze to silver √

Achieve ISO14001 at HQ √ √

Develop sustainability integrated organisation approach and roles √

Set long-term sustainable ambitions and goals (2030 and 2050) √

“Vanderlande wants to maintain the highest level of cultural respect, and take care of its

people in their day-to-day activities, while speaking one company language.”


GRI content index

GRI standards GRI disclosure Page Remark

Organisation profile 102-1 Name of the organisation 6102-2 Activities, brands, products and services 6102-3 Location of headquarters 8-9 102-4 Location of operations 8-9102-5 Ownership and legal form 6102-6 Markets served 6

102-7 Scale of the organisation 6, 8-9102-8 Information on employees and other workers 8-9102-9 Supply chain 8-9102-10 Significant changes to the organisation and its supply

chain5-6,

30-31102-11 Precautionary principle or approach 3102-12 External initiatives 10, 17,

20, 26, 27, 30, 31, 33

102-13 Membership of associations 35-36Strategy 102-14 Statement from senior decision-maker 5Ethics and integrity 102-16 Values, principles, standards, and norms of behaviour 7

Governance 102-18 Governance structure 35Stakeholder engagement 102-40 List of stakeholder groups 12

102-41 Collective bargaining agreements 23102-42 Identifying and selecting stakeholders 12102-43 Approach to stakeholder engagement 12102-44 Key topics and concerns raised 12

Reporting practice 102-45 Entities included in the consolidated financial statements 8-9102-46 Defining report content and topic boundaries 13102-47 List of material topics 13102-48 Restatements of information - Not applicable102-49 Changes in reporting 3, 13102-50 Reporting period 3102-51 Date of most recent report 3102-52 Reporting cycle 3102-53 Contact point for questions regarding the report 3102-54 Claims of reporting in accordance with the GRI standards 3102-55 GRI content index 38-39102-56 External assurance 3

GRI standards GRI disclosure Page Remark

Health and safety at work 103-1 Explanation of the material topic and its boundary 15-17103-2 The management approach and its components 15-17103-3 Evaluation of the management approach 15-17403-1 Workers representation in formal joint management-worker

health and safety committees 15-17 Estimated data


103-1 Explanation of the material topic and its boundary 18-19

103-2 The management approach and its components 18-19103-3 Evaluation of the management approach 18-19416-1 Assessment of the health and safety impacts of product

and service categories18-19 Health and safety

risk assesmentEmployee development and training


103-2 The management approach and its components 20-21103-3 Evaluation of the management approach 20-21404-1 Average hours of training per year per employee 20-21

Employee engagement 103-1 Explanation of the material topic and its boundary 22-25103-2 The management approach and its components 22-25103-3 Evaluation of the management approach 22-25- Employee engagement level 22-25 Vanderlande KPI

Energy use (products and systems)


103-2 The management approach and its components 26-27103-3 Evaluation of the management approach 26-27- No material topic specific information available -

Sustainable product design 103-1 Explanation of the material topic and its boundary 28-29103-2 The management approach and its components 28-29103-3 Evaluation of the management approach 28-29- No material topic specific information available -

Responsible sourcing 103-1 Explanation of the material topic and its boundary 30-31103-2 The management approach and its components 30-31103-3 Evaluation of the management approach 30-31- Supplier framework agreements with code of conduct 30-31 Vanderlande KPI

Circular solutions 103-1 Explanation of the material topic and its boundary 32-34103-2 The management approach and its components 32-34103-3 Evaluation of the management approach 32-34- Reverse logistics value 32-35 Vanderlande KPI

Corporate governance 103-1 Explanation of the material topic and its boundary 35-36103-2 The management approach and its components 35-36103-3 Evaluation of the management approach 35-36102-20 Executive-level responsibility for economic, environmental,

and social topics35-36

> vanderlande.com

Sustainability Report FY2018

VanderlandeVanderlandelaan 25466 RB VeghelThe Netherlands

Phone: +31 (0)413 49 49 49 Fax: +31 (0)413 36 29 10Email: [email protected]

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Sustainability Report FY2018 - Vanderlande · people > Together: we enjoy working as a team and aim to support our customers in every way > Sustainable: we embrace the triple bottom