Corporate Responsibility Report 2014
Table of Contents President’s Message
3
About this Report
4
Kuehne + Nagel at a Glance
5
Our Canadian Operations
6
Seafreight
7
Airfreight
8
Contract Logistics
9
Environment Management Approach and Objectives
31 32
Environmental Policy
33
Integrated and Strategic
34
Environmental Targets 2020
35
Environmental Management System
36
Global Facility Carbon Calculator
38
Global Transportation Carbon Calculator
42
Global Seafreight Carbon Calculator
43
Water Stewardship
44
Overland
10
Customs Brokerage
11
Nacora Insurance Brokers
12
Projects / Oil + Gas
13
Water by the Numbers
45
Recycling and Waste Control
46
14
Recycling and Waste by the Numbers
47
Corporate Governance Structure and Guiding Principles
Health and Safety
15
Community Involvement
48
20
Getting Connected
49
Management Approach
21
Staying Involved
50
2013 Highlights
22
Measures for a Safe Workplace
23
Organizational Structure and Responsibilities
24
Facilities, Incidents and Hazards
25
Workplace Safety
26
Operating Equipment & Carbon Emissions
27
Security Management
28
Certifications
29
GRI Index 3.1 Level “C”
52
STRATEGY AND ANALYSIS
P r e s i d e n t ’s M e s s a g e
“We not only want to
move products around the globe, but ideas as well.”
A
t Kuehne and Nagel, our business connects us to the world each and every day. Whether shipping life-saving medicines by air, transporting the latest product innovations across the ocean or delivering that one special package to a customer’s doorstep – we are mutually linked to the entire ecosystem. We take our responsibility as an industry leader seriously, regularly assessing our impact on the environment and developing initiatives that increase performance. Building on our culture of continuous improvement, each strategy has a steady and long-term approach with global targets that address immediate needs as well as benchmarks that guide us toward 2020.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Kuehne + Nagel people have always maintained a strong sense of compliance and accountability in day-to-day operations - attributes that now reinforce our environmental enterprises. Processes such as our comprehensive supplier selection, not only observe our ISO principles, but afford us the opportunity to work with vendors who place a high value on reducing their own carbon footprint. It’s these intersecting paths that helps us meet our customers’ objectives and face the ecological concerns of the 21st century marketplace. Inasmuch as we strive to outperform for stakeholders around the world, we are equally committed to supporting our Canadian employees who donate time, energy and funds within their
own communities. Each year, teams from across the country partner with local non-profit organizations to help make their cities more sustainable and promote a better quality of life. It is their dedication and enthusiasm that drives Kuehne + Nagel to be a good corporate citizen. I am pleased to share with you our 2014 Corporate
Responsibility report and hope you find the contents informative. Please feel free to send us your comments and suggestions.
Jamie Wood President Kuehne + Nagel Ltd. (Canada)
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STRATEGY AND ANALYSIS
About this Report
K
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
uehne + Nagel continues to evolve with our Corporate Responsibility reporting to better measure outcomes and determine data collection needs for the future. Our initial CR report in April 2011, helped us to lay the groundwork for delivering sustainability information that matter to our customers and other stakeholders. By applying the GRI guidelines for the first time, we are able to review our current status in a variety of modules, find gaps in our data, and have a stronger system to move our CR framework to an auditable function within the company.
defined based on the GRI 3.1 Level “C” index. ( Kuehne + Nagel's
This report represents information for the calendar year January 1,2013 to December 31, 2013 for our Canadian operations and was
"The first rule of sustainability is to align with natural forces, or at least not try to defy them."
corporate global framework and financial reporting is available through our 2013 Annual Report .)
The modules addressed are relevant to our stakeholders and endeavour to provide a snapshot of Kuehne + Nagel’s sustainability journey. Some sections remain unreported due to unavailability of data at the time of reporting or being non-applicable within our present business environment. Where recorded data had varying factors year-over-year that affected the reporting
outcomes, this has been noted in the corresponding module. We have produced the report with a broad range of stakeholders in mind, including customers, potential customers, suppliers, non-profit community partners and employees - all of whom show continued interest in obtaining information about Kuehne + Nagel’s sustainability initiatives.
Mark O'Connor Vice-President, Security & Compliance
Paul Hawken, Environmentalist & Author
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Kuehne + Nagel at a Glance
KUEHNE + NAGEL AT A GLANCE
Our Canadian Operations
Vancouver to Halifax 1,100 employees across 27 offices in 16 cities
F
or over six decades our Canadian operations have offered logistics excellence, evolving from a traditional international freight forwarder to a leading provider of innovative and fully integrated supply chain solutions. Our industry experts provide support in Sea, Air, Customs brokerage, Overland and Contract Logistics, serving all industry verticals: Aviation
Perishables
Automotive
Intermodal
Pharmaceutical and Healthcare
Retail and Fast-moving Consumer Goods
Industrial
Forestry
Projects and Oil + Gas
High-Tech
VANCOUVER • KITIMAT • EDMONTON CALGARY • WINNIPEG • NORTH BAY • LONDON KITCHENER • WINDSOR • FORT ERIE TORONTO • OTTAWA • MONTREAL QUEBEC • WOODSTOCK • HALIFAX
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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KUEHNE + NAGEL AT A GLANCE
Seafreight Comprehensive sea logistics with more than 1,000 global sailings each week
A
s Canada’s leading provider of seafreight solutions, Kuehne + Nagel delivers highly flexible services through partnerships with leading carriers as well as easy visibility and monitoring of freight movements via KN Login. Our 11 Seafreight offices coast to coast support 150 Seafreight specialists throughout Canada.
Key services
Features
• Industry-Specific Solutions
• O ur dedicated trade teams operate in key trades
• Project Logistics
• M arket share enables us to provide large variety of Carriers and Services
• Intermodal Services
• T rade experts know exactly the requirements and challenges of the trades • O ne standard global operating system to provide real time information KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
• Full-container load (FCL) • Less-than-container load (LCL) • Buyer’s consolidation • Sea Transport Management (STM) • Order to Market (O2M) • L ocal handling: customs clearance, door deliveries Niche Products/Business Solutions
• Oil and Gas Logistics
We take care to provide the best services to our clients by ensuring sufficient space allotments with each shipping alliance and on each sailing, the choice of slow and fast steaming vessels, and integration of data exchange with carriers.
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KUEHNE + NAGEL AT A GLANCE
Airfreight
4 major gateways in Canada to
serve our customers better: Montreal, Toronto, Calgary and Vancouver
Key Services • C omprehensive air product suite • C onsolidation, charter, sea/air • I ndustry-specific competencies with expert staff • C areful selection of premium carriers
• S tandardized information and operational systems • P remium, performanceguaranteed express freight products Niche Products/Business Solutions: • KNExpress • KNSpeed • KNExtend • KNPharmachain • KNFreshchain Our specialists develop individual solutions to get our customers cargo where it needs to be. To relieve capacity bottlenecks on busy trade lanes, Kuehne + Nagel regularly initiates peakseason charters, guaranteeing our customers cargo space. These services are ideal for overcoming capacity shortfalls
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
or shipping to remote destinations. Close supervision of shipments, especially during loading and unloading, as well as innovative logistics solutions, offer real-world value to our customers.
All Kuehne + Nagel airfreight shipments are planned, controlled and measured in accordance with industryleading Cargo2000 quality procedures.
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KUEHNE + NAGEL AT A GLANCE
Contract Logistics
O
ur Canadian network consists of over 3 million square feet of distribution centre space in Vancouver, Edmonton, Toronto and Montreal. More than 500 professionals provide services to customers in all industry verticals, offering both shared and dedicated warehousing solutions. Shared environments allow us to drive both variable cost structures where customers pay only for the space and services needed. In a dedicated set-up, we provide complete solutions that include facility sizing, design, systems and services that are driven by our customers’ unique needs.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Kuehne + Nagel’s contract logistics operations are based on the guiding principle...We are the extension of our client’s business.
Key Services • I nbound / Outbound Logistics • ‘Inside-the-Fence’ Services • A fter Sales/Reverse Logistics • Supply chain Consulting • Software-as-a-Service • Packaging Solutions Technology Our technology delivers realtime supply chain visibility, monitoring and control - from beginning to the endconsumer. Customers can make better decisions regarding inventory and labour and are able to respond quickly to maximize their impact in the marketplace.
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KUEHNE + NAGEL AT A GLANCE
Overland
W
e have 100 stations in North America, along with a Non Resident Importer (NRI) program. Our emphasis is on simplifying supply chain complexity, reducing inventory and logistics costs while maximizing service levels. Developing consistency across multiple carriers, Kuehne + Nagel builds the supply chain with multi-modal door-to-door delivery by leveraging our global logistics capabilities and integrated technologies. Standardized processes and synchronized systems help create end-to-end visibility along with analytics that identify improvement opportunities.
Integrated Canada transborder solutions that let our clients focus on improving service to their customers – with increased control and efficiencies
Key Services • FTL, LTL and Courier Services • I mport, Export and Domestic Specialists • D edicated KN Managed LTL Import network • C onsolidation and Deconsolidation services • W eb-based visibility with KN Login • Secure and reliable transport • F ull Value Cargo Insurance specialists • I ntegrated and seamless Customs clearance • Integrated Warehousing • Industry specific options • Freight auditing and payment • Consolidated invoicing • Security and compliance
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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KUEHNE + NAGEL AT A GLANCE
Customs Brokerage
Kuehne + Nagel Customs has 20 fully automated offices and approximately 200 employees from coast to coast with 24/7 Customs clearance capabilities. Maintaining our customers’ speed-to-market advantage with industry-leading import and brokerage systems integrated into our operations.
W
e believe in providing better solutions for our clients through a one-to-one approach with personalized service, familiar voices, and no call-centre chaos – a consistent customer experience for every shipment. Our tailored learning and development programs meet all industry standards and keep pace in the global marketplace. Employees are trained in CCS, CTCS, and CITT, keeping our customers informed of ever-changing laws and regulations.
Kuehne + Nagel commits resources to provide our clients with technological solutions and we strive to fulfill all of our clients’ IT requirements. Our first-rate compliance program ensures best practices that result in transactional effectiveness, integrity, reliability, confidentiality, efficiency, and the ability to address all regulations. Key Services • Customs clearance
• Commodity opinions and CBSA rulings
• Drawback claims
• Pre-arrival processing (PARS, ACI, e-manifest)
• Information technology solutions
• Post-entry audits and corrections
• Non-resident importing services
• Customs consulting
• CSA Customs self-assessment
• N AFTA certificate maintenance and/or full qualification analysis
• Export documentation
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• Duty refunds Page 11
KUEHNE + NAGEL AT A GLANCE
Nacora Insurance Brokers
O
ur professional, efficient staff specialize in assessing and managing risk, and tailor individual solutions for every shipment, regardless of size, method of transportation or cargo value.
Nacora offers insurance coverage and risk management in a wide range of industry sectors such as manufacturing, construction, IT, transportation, finance, services, mining and energy, wholesale trade, retail, and agriculture.
Key Services
Insurance products
• I dentifying and quantifying risk exposure
• Aviation Insurance
• C ontrolling and reducing risk • D eveloping risk profiles • M inimizing and controlling costs • P rotecting human and physical assets, reputation and market share
Nacora provides responsive, personalized service with global expertise to help our customers insure for business risks.
• Beauty Insurance • Commercial Insurance • Directors and Officers Liability • F reight Forwarders Liability and Errors & Omissions • Group Life and Benefits • Holistic & Alternative Medicine • Marine Insurance
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ABOUT KUEHNE + NAGEL
Projects / Oil + Gas
Our customers’ projects are anything but ordinary. We create a safe and sustainable supply chain that considers the big challenges as well as the small details.
The Kuehne + Nagel Canadian organization is registered with 3rd party HSE and compliance providers such ISNetworld, Complyworks and PICS, so we may stay up-to-date with the newest industry developments and demonstrate our solid commitment to customers.
W
hether managing the logistics for large-scale capital investment projects, designing and executing supply chains for Oil + Gas or delivering solutions for the Marine industry, sustainability is at the very core of all our activities. Our clients are leaders in the field of Health-Safety-Environment (HSE) and we partner with them to meet or exceed the set standards. We have comprehensive systems in place and regularly measure performance through internal and external audits. KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
We actively engage with local communities and First Nations to generate value along our supply chain through employment and job training opportunities and by actively participating in community events. Our Projects, Oil + Gas, Marine Logistics experts are consistently trained to improve their knowledge in HSE and Compliance matters. We conduct our work in the field or in the office with a deeply embedded sense for risk identification and mitigation. In all our activities, we are defined by a simple, yet powerful, message: Deliver as promised – safely!
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Corporate Governance
CORPORATE GOVERNANCE
Structure and Guiding Principles
C
orporate Governance guides the structure and operational practices within the Group. It aims the creation of the sustainable value for all stakeholders and safe – guards the management’s decision – making capability and efficiency. Accountability trough clearly assigned duties to the Boards and Committees and transparency in financial reporting ensure that the Group acts responsibly. Principles The principles of corporate governance, as defined in the Directive on Information Relating to Corporate Governance (RLCG) of the Six Swiss Exchange, are laid down in the Articles of Association, the Organization Rules, and the Committee Regulations of the holding company of the Group, Kuehne + Nagel International AG, Schindellegi, Switzerland (the Company). The Group follows best practice recommendations and standards established in the “Swiss Code of Best Practice for Corporate Governance”.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
“...committed to good Corporate Governance, which is an important and integral part of the management culture of the Kuehne + Nagel Group.”
The operational structure of the Group is divided into the following segments: Reportable segments consisting of the business units: • Sea Freight • Air Freight • Road & Rail Logistics • Contract Logistics • Real Estate • Insurance Brokers Geographical Information relating to the regions: • Europe • Americas • Asia Pacific • Middle East, Central Asia and Africa Financials, Board of Directors, Corporate Structure All information may be found on our website through the 2013 Annual Report.
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CORPORATE GOVERNANCE
Structure and Guiding Principles
Ethics As one of the world’s leading logistics providers with over 63,000 employees operating in more than 100 countries, all of our business activities are based on the highest ethical and legal standards. Only by considering integrity as a key element of our business behaviour are we able to provide trust to all our stakeholders and to carry our responsibility of being a reliable and successful business partner and employer. Kuehne + Nagel is committed to complying with all legal and regulatory requirements as well as our internal regulations and other rules of Professional Conduct with our Ethics and Compliance Program. This program is not only an instrument of risk prevention KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
to protect us from negative consequences such as sanctions or reputational damage, but also a unique opportunity to make the difference in the competitive and global market place. It is the key for our business success to adhere to this program at every level of our organization with the best possible support from Kuehne + Nagel’s senior executives and all managers around the globe. Compliance and Integrity Legal and ethical behaviour is the basis of loyal and trustworthy relationships. It reinforces the confidence of our employees, customers, suppliers, other stakeholders and the communities in which we work. An ethics and compliance program requires more than just regulation to fulfill its claim of
effectiveness. It must advocate correct and ethical behaviour as well as foresee concrete action against misconduct. The Ethics and Compliance Program of Kuehne + Nagel follows this principle and is designed to establish a structure to prevent and detect violation of law and internal rules and procedures or other inappropriate behaviour. Kuehne + Nagel uses best efforts
to ensure compliance with all laws and regulations and, in case of misconduct, we are committed to follow our internal rules to investigate and take appropriate disciplinary and corrective measures to prevent future occurrences. Kuehne + Nagel is regularly reviewed by the compliance manager to stay in line with the changing legal and regulatory requirements. Page 16
CORPORATE GOVERNANCE
Structure and Guiding Principles
Risk Assessment The architecture of an effective Ethics and Compliance Program is based on a comprehensive risk consideration to make the most efficient use of all available resources and to address specific business needs. To set the right priorities, Kuehne + Nagel analyzes not only specific compliance risks on a regular basis, but also takes into consideration the root causes for any wrong doing. This enables Kuehne + Nagel to determine the kind of violations or failures the Ethics and Compliance Program should address, supports the continuous improvement of the overall program and helps to minimize any risk Kuehne + Nagel is exposed to. It also provides the possibility to evaluate the effectiveness of different compliance procedures and to decide on the required priorities. In addition to the initial risk inventory, a regular assessment of the Ethics and Compliance Program is performed on a regular basis to adopt the program content KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
and specific initiatives to the changing legal environment, for this reason an annual assessment of the effectiveness of the program itself s required and will be submitted to the Board of Directors or the Audit Committee for approval, relevant findings will be analyzed in order to evaluate the adequacy and effectiveness of the design,
Employment practices
implementation and impact of the program as well as to decide on which priorities the Ethics and Compliance Program should focus and what resources and measures are needed.
Kuehne + Nagel expects its management to act as role models in their business conduct and leadership style.
The knowledge, experience and entrepreneurial spirit of our employees determine the success of Kuehne + Nagel Group. Kuehne + Nagel Group provides a working environment which creates and fosters professional development opportunities on a global scale. Our employment conditions, as well as our remuneration structure, aim to stimulate high performance and to consistently reward excellent results. Kuehne + Nagel assumes social responsibility and seeks to ensure an excellent working environment. The cornerstones of our corporate culture includes: respect and support for cultural diversity, open and honest team cooperation and an environment free from intimidation and harassment.
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CORPORATE GOVERNANCE
Structure and Guiding Principles The code of conduct applies to every affiliate of the Kuehne + Nagel organization.
Third party Integrity Due Diligence (IDD) By selecting a third party we have to apply the same integrity measures as for our own. Kuehne + Nagel is therefore committed to implement good practice procedures in all business relationships. The IDD process is designed to assist the KN business managers’ decision-making by assessing the risk of conducting business with a particular third party. The purpose of performing IDD on third parties is to ensure that these operate in accordance with Kuehne + Nagel standards.
expectations and to comply with regulatory requirements. We have a risk-based approach where the existing and new third parties are graded by risk of possible misconduct. Kuehne + Nagel focuses on high risk service providers (customs clearance, port handling, ground handling, consulting, etc.) and national managers ensure that all the relevant customs clearance third party is classified as high risk by default and an IDD research is carried out accordingly.
IDD prevent Kuehne + Nagel from any harm due to unethical behaviour of the Third parties, to fulfill customer’s KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
As a global player, Kuehne + Nagel’s business is subject to the different laws and regulations of every country. The Code of Conduct applies to all board members, officers and staff members of our organization. Kuehne + Nagel officers are personally accountable for the conduct of their staff and provide supervision. It is the duty of every employee to comply with the rules and principles set out in this code.
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CORPORATE GOVERNANCE
Structure and Guiding Principles
Anti-trust Policy Kuehne + Nagel is aware that Anti-Trust Laws can be complicated and strongly encourages every member to seek advice from the Kuehne + Nagel Legal & Compliance department about any antitrust question that might come up. We believe that the top economic results are achieved in an environment of free competition. The main goal of Anti-Trust Laws is to prevent and sanction unreasonable restraints on competition and it is in our best interest to ensure compliance with such laws. Subsequently, employees do not engage in activities which have a negative impact on free trade and competition, under any circumstances.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Kuehne + Nagel operates in a manner where it may have a vertical (between suppliers and customers) and a horizontal (amongst competitors) relationship with its business partners at the same time. The following restrictive practices are prohibited among competitors: pricing, costs, commercial terms, strategy, market sharing, boycotting and bid rigging. Anti-bribery Policy Kuehne + Nagel will not engage in any form of active or passive bribery and will not tolerate its Members or third parties in their relationship with the company being involved in bribery. Generally, expenditures connected with public officials are considered to create a particular risk.
Every employee receives regular training in anti-corruption policies and procedures to ensure compliance across all levels of business
Therefore, no Member may directly or indirectly offer, promise, grant or authorize the giving of money or anything of value, including gifts, hospitality and entertainment, to a public official in order to influence official action. Notwithstanding the foregoing, anti-corruption laws in many countries prohibit bribes among the private sector as well, without any involvement of public or government officials. Also Kuehne + Nagel uses intermediaries because of their local expertise, knowledge and business contacts. The term intermediaries encompass agents, carriers, sub-contractors, suppliers, consultants and other third parties. By selecting an intermediary, Kuehne + Nagel has to apply the same integrity measures as for its own.
Therefore, Kuehne + Nagel must ascertain whether it is possible to enter or continue a business arrangement with an intermediary and assess whether it is a person or entity of integrity and good standing in the business community. The use of intermediaries for the purpose of committing act of bribery is strictly prohibited. Kuehne + Nagel will terminate the relationship in case of negative evidence or material doubt regarding lawful business practices of the intermediary.
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Health and Safet y
HEALTH AND SAFETY
Management Approach
Through our global, regional and national management, Kuehne + Nagel implements measures to ensure the safety, health and welfare of all persons affected by our business activities. We firmly believe that good health and safety management works hand-in-hand with good business practices.
O
ur aim is to achieve the highest level of health and safety for employees, contractors, customers, and the public by preventing risk to people, property and the environment.
We meet all legal, industry and customer requirements through our QSHE (Quality, Safety, Health, Environment) risk-based management and continuously improve by establishing OHSAS 18001 compliant systems and certification across our global operations.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
All Kuehne + Nagel employees fully participate in our programs and accept their respective responsibilities, recognizing the contribution they make to workplace health and safety. Our management team takes responsibility to ensure that employees adhere to relevant regulations, rules, working instructions and maintain proper use of equipment at all times. Employees are advised by third parties and internal HSE trainers who are professionally certified
accordingly to local, provincial and federal regulations. This not only facilitates our state of the art processes, but ensures compliance in every location. Effective and ongoing training is managed through both internal and external programs, strong communication and availability of computerbased instructional videos and presentations.
Our Top Three 1. M aintain an accident-free and work-related illness-free environment 2. C ontinuous awareness and training 3. R educe and monitor incidents to improve the work environment
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HEALTH AND SAFETY
2013 Highlights
F
or 2013, we chose to focus on improving gaps in our long-standing systems. A change in senior management for Contract Logistics in Canada brought with it increased attention on the health and safety aspects in our warehouse operations. When management drives safety initiatives, employee response goes up proportionally.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Even though staff turnover in our temporary labour force continues to present challenges with regards to upkeep of training, we have maintained and even exceeded standards. The Infrastructure Health and Safety Association awarded Kuehne + Nagel the Achievement Award for Injury Reduction for having 3 consecutive years with a cost rate and injury frequency below the rate group average. This means we had a significantly lower rate of injuries than is the norm in our industry.
• Zero lost time claims for 2013 • 2 013 Alberta Certificate of Recognition achieved and re-certified for 3 years. • C ompleted 5th year of Ontario Safety Groups 5-year program • N ew computer-based training programs created and ready to roll out in 2014. • C omplete update of Life Truck Training Program • F ocus on COR certifications, specifically in Alberta, for our growing Oil and Gas business. Page 22
HEALTH AND SAFETY
Measures for a Safe Workplace
EMPLOYEES
A
ll supervisors ensure their team members are trained in proper the work procedures and regulations while obtaining optimal output without accidents and injuries. Following Health and Safety Policy is the part of each employee’s daily routine and all personnel are responsible for reporting unsafe/unhealthy conditions to their supervisors or to their designated health and safety representatives. Kuehne + Nagel verifies that workers protect their own safety by working in compliance with laws as well as internal practices and procedures. .
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Kuehne + Nagel follows Canadian standards and codes for the Federal Department of Transport Regulations, Canada Labour Code Part II, Occupational Health and Safety Act and the Ontario Workplace Safety and Insurance Act or Provincial Equivalent Employees working in our warehouses locations have mandatory requirements for wearing seat belts when operating lift trucks and safety vests when working with heavy loads and trucks. Certified first aiders are trained and situated in each facility in accordance with Health Canada policies. A list of these first aiders appears at the first aid kit in each location. Fire Drills are performed a minimum of once per year to verify safety procedures at all our facilities. THIRD PARTIES WORKING ON-SITE All contractors and subcontractors working in our facilities are made aware of the health and safety policy prior
to beginning any activities. We are in good standing with the applicable Workers’ Compensation Board/ CSSR and provide third parties with verification from the board and consistently follow all rules, regulations and procedures which are set out in our health and safety policy. VISITORS Visitors are required to check in with either our Reception desk or Control Office upon arrival and departure of our facilities. While on the premises, they are always accompanied by an employee to prevent any injuries or incidents.
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HEALTH AND SAFETY
Organizational Structure and Responsibilities
E
very reasonable precaution is taken to protect the health and safety of all employees. With that in mind, our senior management team takes on the responsibility for setting rules and regulations that support our work environment. Through policy development and procedures implementation, they ensure the prevention of accidents and injuries. Middle management is accountable for maintaining the training of employees in work procedures and by enforcing all rules and regulations. On a day-to-day basis, supervisory and team leaders make certain that rules, regulations and prescribed work methods are followed by their staff. Supervisors are also responsible for conducting daily visual checks and monthly planned inspections of the workplace, informing employees of any hazards or potential risks. Front line personnel are entrusted with maintaining their work environments by consistently following all rules, regulations and prescribed work methods, reporting all the unsafe and unhealthy conditions and provide representation in their local Health and Safety Committees.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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HEALTH AND SAFETY
Facilities, Incidents and Hazards
Warehouse and Office Procedures
I
n addition to recording facility issues at our monthly safety committee meetings, Kuehne + Nagel facilities across Canada are inspected by team members. This includes, but is not limited to, checking the contents of first aid kits, fire extinguishing equipment, safety and tripping hazards, emergency exits, and lighting. Unplanned inspections are held to encourage a safe workplace at all times. Safety procedures are made available in both written as well as computerbased training formats.
Incident Handling Our main objective is to determine the cause of incidents so corrective and preventive measures can be taken to avoid a re-occurrence. All work-related incidents that result in injury/ illness to an employee or contractor are fully investigated and documented. This include minor injuries as well as general first-aid. Incidents involving a health hazard or environmental issues are reported to the appropriate regulatory authorities.
Safety measures for Hazards All Kuehne + Nagel warehouse facilities work towards preventing damage to property and injury to personnel. Simple additions such as outfitting forklifts and structural poles/ pillars with protective shielding, reduces incidents across the board. We ensure that all the Dangerous Goods are controlled and handled by qualified staff who have received Dangerous Goods Training Certification.
Kuehne + Nagel has a full spill procedure in place, however no significant spill in any of our facilities has occurred for many years. Occasional product spills are extremely small in area of coverage, non-hazardous, easily contained and cleaned within minutes.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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HEALTH AND SAFETY
Workplace Safety
22009009
K
uehne + Nagel has strong policies and procedures in place to prevent accidents and injuries in the workplace. Occurrences are minimal and even with increases in hours worked, have remained low.
Number of hours worked
2009
2010
2011
2012
2013
2,001,200
1,863,635
1,877,314
2,136,844
2,680,950
1.050
918
929
898
1,023
The number injuries over the past 3 years have continually lessened and for 2013, no accidents were reported that resulted in a Lost Time Injury (an injury where a worker did not come to work).
Number of employees Number of lost workday cases and lost time injuries
12
7
5
5
0
Our consistently improving Health and Safety Program provides safe workplaces for employees. Across Canada, Kuehne + Nagel performs with a Lost Time Injury Frequency below the rate group average - results that indicate we have better performance than other organizations in the same industry. Where offered by the provinces, we receive premium rebates on the payment rates due our excellent track record.
Number of lost days
30
100
62
27
0
Number of modified/restricted duty incidents
2
1
2
2
0
Number of medical aid incidents
7
7
3
9
3
First-aid incidents
2
2
3
3
2
Near misses
2
2
1
2
2
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HEALTH AND SAFETY
Operating Equipment & Carbon Emissions
O
ur Canadian warehouses use a variety of lift trucks and operating equipment across multiple shifts. For many years, use of the high emission propane fuel machinery was standard in the industry, however, times and perspectives have changed. By changing our equipment from propane to electric, we have successfully eliminated 80% of our carbon emissions. The propane units remaining in our fleet are scheduled for replacement over the next 36 months when we will achieve 100% electric powered equipment.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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HEALTH AND SAFETY
Security Management Keeping safety and security at the forefront of our business practices benefits all of our stakeholders.
W
e provide seamless endto-end security for our customers’ assets throughout the supply chain. Whether it be the selection of third party carriers, implementing guard services or auditing our own facilities, we ensure cargo is protected from damage and theft 24/7.
Kuehne + Nagel’s warehouses are fully secured and we invest in the latest technologies - from card entry systems in general office areas to biometrics in our High Tech and Pharmaceutical locations. Each facility’s security program is designed to meet the growing demands within the industry and is tailored to the needs of our customers. Suppliers and vendors must go through our comprehensive qualification process before being selected as partners. External audits are conducted with specific providers to ensure compliance of the ISO standard. Participation in Governmentpartnered programs such as PIP, C-TPAT and Air Cargo Security Program not only
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
allows us to maintain a high level of compliance, but helps secure the movement of goods for our customers whether it be across borders or around the globe. We are better able to protect the supply chain, identify security gaps, and implement specific measures and best practices.
Page 28
HEALTH AND SAFETY
Certifications
OHSAS: Occupational Health and Safety Assessment Series OHSAS 18001 was created via a concerted effort from a number of the world’s leading national standards bodies, certification bodies, and specialist consultancies. OHSAS helps in a variety of respects... it helps: minimize risk to employees/etc; improve an existing OH&S management system; demonstrate diligence; gain assurance; etc. The benefits can be substantial.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Alberta Core
Workplace Safety Groups
This certificate is provided by the Government of Alberta to Companies that participate and pass external audits with regards to safety programs, polices, training and employee/employer involvement and accident rates.
This certificate is received in recognition for successfully completing the Workplace Safety and Insurance Board/Industrial Accident Prevention Association Safety Groups requirements. These include, but are not limited to, reviewing our current health and safety policies and programs and developing five new “Elements” or working instructions with goals to strengthen our current policies and programs, remaining in good financial and reporting standings with the WSIB, attending up to five meeting per year and interacting with Health and Safety Leaders from other firms within our same WSIB Rate Group.
A third party Auditor visits our Alberta sites and conducts audits including interviews and rates companies. Audits include Management Leadership and Organizational Commitment, Hazard Identification and Assessment, Hazard Control, Ongoing Inspections, Qualifications, Orientation and Training, Emergency Response, Accident and Incident Investigation and Program Administration .
Page 29
HEALTH AND SAFETY
Certifications
SQAS: Safety and Quality Assessment System
C-TPAT: Customs Trade Partnership Against Terrorism
SQAS is a system to evaluate the quality, safety, security and environmental performance of Logistics Service Providers and Chemical Distributors in a uniform manner by single standardized assessments carried out by independent assessors using a standard questionnaire.
C-TPAT is a voluntary governmentbusiness initiative that builds cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT is widely recognized as one of the most effective means of providing the highest level of cargo security through close cooperation with international supply chain businesses such as importers, carriers, consolidators, licensed custom brokers and manufacturers.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
PIP: Partners in Protection The Partners in Protection program enlists the cooperation of private industry in efforts to enhance border and supply chain security, combat organized crime and terrorism and help detect and prevent contraband smuggling. By working with the Canada Border Services Agency (CBSA), our organization contributes to the protection of Canadian society and to the facilitation of legitimate trade.
Page 30
E nv ironment
ENVIRONMENT
Management Approach and Objectives
O
Kuehne + Nagel is committed to meeting the requirements of our shareholders, customers, employees and communities as we serve in an environmentally responsible manner.
ur primary focus is on reducing impacts on the air, water and land by making improvements throughout our operations and the entire supply chain. Measurable goals are set for specific environmental fields where we can benchmark our progress year-over-year.
The strategy is not to simply create data to monitor, but to create real and lasting change. The same activities that help lessen our environmental impact go hand-in-hand with keeping our business efficient and competitive. The Kuehne + Nagel Green 2020 Strategy is a global commitment to reducing our corporate footprint, strengthening relationships with the communities in which we work and live, and helping our stakeholders achieve their own targets.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Page 32
ENVIRONMENT
Environmental Policy
W
e are dedicated to offering environmentally sound, sustainable and innovate supply chain solutions that continually reduce our impact on the environment. Sustainability considerations form an integral part in the formulation of strategy and in decision making.
Measure environmental impact and strive to continuously improve performance Implement effective carbon management program throughout all Kuehne + Nagel operations Reduce natural resources consumption by focusing on opportunities to minimize, reuse, and recycle goods Provide environmentally sensitive product alternatives that allow customers to meet their sustainability commitments Communicate policies, objectives and targets to employees and subcontractors to encourage improvement of performance Include environmental performance as key criteria in supplier selection Ensure that all relevant environmental legislation and regulation is applied Have in place pollution incident response plans Implement “good neighbour” policies, respecting the surrounding local environment and population. Use certification to ISO 14001 as a platform for continued development of our Environmental Management Systems Promote active participation in industry work groups focusing on environmental impact reduction and compliance. KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Page 33
ENVIRONMENT
Integrated and Strategic
T
he company’s environmental management system and performance are continuously reviewed and optimized by a worldwide team of specially trained staff. Through our Global Facility Carbon Calculator database, each team member maintains the accurate management and analysis of the data for both direct and indirect emissions. This information is used locally, regionally and globally to review current benchmarks and set new targets for the future.
Kuehne + Nagel is firmly committed to climate change issues. As a result, environmental and sustainability policies are an integrated part of our overall business strategy.
GLOBAL ENVIRONMENTAL TARGETS Achieved 2013
Set for 2014
• F ull implementation of GFCC (Global Fuel Carbon Calculator) in all defined countries/locations
• C onduct corporate environmental awareness training for QSHE and environmental champions
• R eduction of CO 2 emissions of Kuehne + Nagel premises by 2% per FTE and 2% per m2*
• C O 2 emissions reduction per Kuehne + Nagel premises of @% per FTE and 2% per m2
• C ommercial Transport Fuel Intensity (litres for 100 km) improvement by 1%*
• I mprove fuel intensity from own transports (trucks) by 1% over previous year
• 4 0%* waste recycling from total waste
• I ncrease waste recycling above 2013 performance
• I SO14001 certifications as per defined global planning
• A ppointment of Environmental Champion per site • G lobal certification as per defined IS 14001 planning
*A Kuehne + Nagel location having at least 15 persons employed and/or an area > 800 m2. The base year of these targets is 2010. KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ENVIRONMENT
E n v i r o n m e n t a l Ta r g e t s 2 0 2 0
ENVIRONMENTAL ISSUE
BUSINESS UNIT
2015 TARGETS
2020 TARGETS
Premises CO2 Emissions
All (where energy is billed and can
7.5% reduction/FTE; and 7.5% reduction/m2
15% reduction/FTE; and 15% reduction/m2
be tracked)
Kuehne + Nagel owned commercial transport CO2 emissions
Contract Logistics / Overland
1% improvement each year
Use of electricity from low-carbon sources (defined as electricity from renewable sources)
All
5% of total used
% of container TEUs moved by rail/water for inland transport
Sea and Overland
COMMITMENT to a progressive and demonstrable increase in the % utilization of inland transport services
Environmental performance of Kuehne + Nagel Air/Sea/Road carriers
Sea, Air and Overland
Responsible use of water
All
COMMITMENT to responsible usage, reduction and tracking of water consumption, where possible.
Sites* certified to ISO 14001
All
AT LEAST 30 SITES* newly certified each year until all completed, 100% certification renewals achieved.
Recycling as a % of all waste (tonnes)
All
50%
75%
% of sites* using GFCC report
All
100%
100%
% of sites* with Environment Champions appointed
All
50%
75%
(when Kuehne + Nagel pays for fuel)
10% of total used
in regions where this mode is available to develop tracking and reporting capability during 2013
COMMITMENT to a continuous assessment of our marine business partners to promote clean technologies and operations
* Defined as a Kuehne + Nagel location having at least 15 persons employed and/or an area > 800 m2. The base year of these targets is 2010
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ENVIRONMENT
Environmental Management System
K
uehne + Nagel's EMS is built upon the International Standard ISO 14001 Environmental Management System, customer requirements, as well as local, provincial, and federal legislations. ISO 14001 Environmental Management is a set of international standards that provides our organization with a structure for managing environmental impacts & responsibilities. It complements our International Standard ISO 9001 Quality Management System. The strategic focus of our EMS is on the consumption reduction the prevention of pollution, recycling and reuse of supplies and materials. Measurement, and where possible, reduction of our CO2 footprint also form the core of our environmental strategy. The EMS system in place has been developed with a structured approach, designed to ensure continuous improvement of our environmental performance.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
• O ur EMS is a set of processes, procedures, policies, guidelines, and working instructions put in place to help meet the goal of reducing negative impacts on the environment. • I t defines the way our organization applies its resources to manage environmental impacts and meet the company’s regulated and self imposed responsibilities. • T he key components of our are environmental training, audits, risk management, compliance requirements and process controls. • E MS has clear set of objectives and targets, which are consistent and measurable with the environmental policies of Kuehne + Nagel and support any global, regional and national environment objectives.
Core elements of the EMS
1
Identifying environmental aspects and impacts at the operational level
2
Establishing, documenting and communicating policy
3
Commitment to top management and clearly defined responsibilities
4
Setting objectives and targets at national the local levels
5
Continuous improvement with ongoing audits and review cycles
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ENVIRONMENT
Environmental Management System
F
actors for Consideration
In our Canadian offices and warehouses, Kuehne + Nagel can seek control how much energy we use, and how much waste we produce. These impacts are often directly related to the amount of business conducted: the more shipments our customers have, the more resources we use. In multi tenant facilities we may be unable to ascertain the various energy consumption records as these aspects are included in the lease and may account for the entire facility, not just our portion.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Kuehne + Nagel implements many “green” features into new building construction and build-outs. These include: • F lorescent, high output (T5/T8/T12) warehouse lighting with on/off motion sensors on each fixture. • M otion sensor lighting switches for offices, break rooms, conference rooms, restrooms. • P rogrammable thermostats for HVAC systems • I nfrared sensors on washroom fixtures • R ain water diversion As a part of the EMS implementation in the facility, the QSHE (Quality, Safety, Health and Environment) team of performs an environmental profile and impact analysis. The purpose is to identify and document the environmental aspect of operational activities, products and services in place.
Factors in determining environmental significance include, but are not limited to: • Harmful to humans, flora, fauna • Emission to air • Releases to water and land • U ses of energy, raw materials, natural resources • L egal requirements that control or dictate actions to be taken. (When the significance has been determined as high, management further identifies the environmental impact, either positive or negative. When the outcome is a negative impact, consideration is given as to whether Kuehne + Nagel will require legal advice and counsel and review any available alternatives when applicable.)
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ENVIRONMENT
Global Facility Carbon Calculator
R
educing our carbon footprint is an ongoing objective for all Kuehne + Nagel employees, who continuously work on measures for improvement. We provide carbon dioxide (CO2) emissions data to our customers on a per shipment level and from all trade lanes within our operational scope. The GFCC serves two primary purposes: Reporting internally and externally, plus acting as a ‘lever for change’ by enabling the identification of priorities for action to reduce usage, and graphically displaying progress towards targets. Since 2007, the goal has been to see constant reductions in greenhouse gas intensity by 2 percent each year.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ENVIRONMENT
Global Facility Carbon Calculator
T
o ensure we meet yearly benchmarks, environmental audits are performed at regular intervals which collectively help us manage our Canadian operations in a more sustainable environment.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
1.
I mplementing a systematic approach to identify and control the environmental impact of our organizational processes, activities and services.
2.
uilding a set of key performance B indicators (KPI) that measure continuous improvement of our environmental performances for our customers, community and employees.
3.
s a result of varying cycles A caused by seasonal fluctuations, geographical regions, and the amount of business we handle, our carbon footprint fluctuates each month. By developing a
baseline to measure against, we can better control the amount of CO2 currently released throughout our operations. For this purpose, Kuehne + Nagel has developed the ’GFCC Tool’ which enables us to internally measure electricity, natural gas, LPG, and transport fuels for each facility. Additionally, we measure water consumption, waste to landfill, and recycling efforts, where applicable. Targets for maintenance and/or reduction of our carbon footprint are set at the global, regional and country levels and communicated annually.
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ENVIRONMENT
Global Facility Carbon Calculator
2013 GFCC Data
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Facility Space
3,670,136.15 m2
Electricity Consumption
15,853,032.47 kWh
Electricity Expenditure
11,750,359.45 CHF
LPG Consumption
142,817.71 kg
LPG Expenditure
145,940.16 CHF
Natural Gas Consumption
24,421,292.23 kWh (NG)
Natural Gas Expenditure
618,186.77 CHF
Recycling all Types
1403.64 Metric ton
Recycling all Types Expenditure
45368.74 CHF
Waste to Landfill
1145.39 Metric ton
Waste to Landfill Expenditure
68,271.72 CHF
Water Consumption
26,241.03 m3
Water Consumption Expenditure
50,353.31 CHF Page 40
ENVIRONMENT
Global Facility Carbon Calculator
As our GFCC data collection process grows to encompass all of our warehouse and office space, we are better able to assess our carbon footprint and implement new strategies to meet our targets.
2010
2011
2012
2013
6,062,411
6,380,482
5,881,921
8,255,518
CO2 per FTE (CO2 kg)
7,099
6,046
5,519
6,636
CO2 per 100m2 (CO2 kg)
2,675
2,616
2,332
2,805
CO2 Total (CO2 kg)
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ENVIRONMENT
G l o b a l Tr a n s p o r t a t i o n C a r b o n C a l c u l a t o r
T
he Global Transport Carbon Calculator (GTCC) is designed to be one of the most powerful tools in the forwarding industry for the measurement and reporting of CO 2 emissions triggered by our sea, air and road transport activities. With the GTCC, customers requesting their carbon footprint can easily be provided with data extracted from our Kuehne + Nagel reporting systems. Over time, the GTCC is anticipated to report our external carbon footprint per transaction, transport mode and customer. This would provide us with the ability to respond to the respective information demands from stakeholders and form the basis for the future development of eco-friendly products.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
With this tool, we are able to demonstrate our commitment to presenting transparent carbon emissions data as well as new solutions. Additionally, Kuehne + Nagel has adopted the Clean Cargo Working Group (CCWG) methodology to calculate carbon dioxide emissions for sea freight. The CCWG is a business–to–business collaboration dedicated to integrating environmentally and socially responsible business principles into transportation management. Participants include more than 25 leading multinational manufacturers, retailers, and freight carriers, which collectively move close to 60% of all global container cargo.
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ENVIRONMENT
Global Seafreight Carbon Calculator
T
he GSCC is a decision support tool that calculates and models complex supply chains and also helps shippers select the optimum mix of transport modes to minimize CO2 emissions. It allows all stakeholders to quickly calculate the total CO2 emissions in kilograms per TEU and provides: • Real time CO 2 emissions • C alculation model for strategic carbon footprint simulation • H igh level overview of CO 2 emissions (transport modes) • P re- and on-carriage data taken into consideration • Carbon mapping of supply chain Based on the Convention of the International Maritime Organization (IMO), the European Union, United States and Canada have implemented Emission Controlled Areas (ECA). Beginning in 2015, it is mandatory for every ship crossing the Emission KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Controlled Areas (ECA) to use fuel with a sulphur content of no more than 0.1%. This is a reduction of approximately 90% from the current SOx limit.
A Few Facts about SOx S ulphur Dioxide (SOx) is a toxic gas that arises while burning fossil-fuel. It causes respiratory implications and acid rain. It represents 7.0% of the global greenhouse gas emissions.
Main Advantages • D irect improvement of air quality will be gained, particularly in densely populated coastal regions • R educed environmental footprint for container shipments • K uehne + Nagel customers can determine their environmental footprint for seafreight shipments by using our GSCC.
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ENVIRONMENT
Water Stewardship
B
ecause water consumption within our offices and warehouses is for common purposes (i.e. Employee facilities, grounds-keeping), the focus has been on improved management of usage. Kuehne + Nagel engages with our global leaders, also known as “Environmental Champions”, who review water issues and take measures to resolve them. Part of our initiative includes the installation of infrared sensors on water faucets, toilets and urinals or use of low-flush mechanisms. All of our facilities have replaced outdated equipments with more energy efficient and water saving products.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
W
e all know that water is an essential natural source. As such, Kuehne + Nagel takes measures to improve our company’s water footprint by reducing the amount of wasted water wherever possible.
With the construction of our Millcreek campus, we implemented low maintenance landscaping, including the use of eco–friendly grass, to reduce the amount of water needed to maintain healthy grounds. Underground cisterns, capable of harvesting 40,000 US gallons of “grey water” run off from the roof and are used for site irrigation. The location also employs bioswales and soaker swales to contain or absorb natural runoff from roadways and landscaped areas.
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ENVIRONMENT
15,354.11m
5,010.23 m
3
3
15,719.44 m
3
Water by the Numbers
2012
2013
New warehouse facility began reporting in 2012 and increased production in 2013 KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Page 45
ENVIRONMENT
Recycling and Waste Control
Pap er p roduc ts Due to the nature of our business we use natural resources on a daily basis while processing shipments, packaging products, and creating shipping and other documents. Every effort is made to reduce consumption through various paper recycling and repurposing programs. Efforts are made to reduce landfill waste paper through by having blue bins and secure document shredding cabinets available in every location. We also encourage employees to eliminate unneeded printing of emails, reports and other documentation.
Wo o d, c ar d b oar d , p l ast i c a nd pack ag i n g m at er i al s Each Kuehne + Nagel location has a unique perspective on handling resources due varying client bases and regional requirements. Some facilities are office only, while others manage office and warehouse. With warehouses utilizing everything from wood pallets to plastic shrink wrap, they have more extensive recycling programs in place to manage both the volumes as well as the range of materials.
The main purpose of Kuehne + Nagel’s waste and recycling measures is to protect people and the environment from the negative effects of hazardous wastes worldwide. We look to reduce the amount of waste sent to landfill by properly instituting both recycling and re-purposing programs.
H az ar dou s an d e- wast e All hazardous and electronics waste are removed from Kuehne + Nagel in the most environmentally efficient way. Every effort is made to ensure waste materials are being disposed of or recycled through accredited, licensed suppliers who follow all Federal, Provincial and Municipal regulations. Certificates are obtained to verify the correct disposal/recycling of regulated waste.
Our Environmental Champions work within their specific regions to assist operations in their recycling efforts and look for eco-friendly alternatives.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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ENVIRONMENT
Recycling and Waste by the Numbers
2011
2012
718.69 tonne
604.64 tonne
tonne
287.26
290.19 tonne
Recycling
642.59 tonne
144.76 tonne
Waste
2013
New warehouse facility began reporting in 2012 and increased production in 2013 KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Page 47
Communi t y Involvement
IN THE COMMUNITY
Getting Connected
Hands-on Approach
T
he idea is a simple one: Be good corporate citizens and share our employees’ enthusiasm for giving back to their communities by providing new outlets for participation. Our community program is designed to engage employees through Kuehne + Nagel supported, socially responsible activities in our Canadian locations. We collaborate with non-profit organizations who offer much-needed help to our neighbours across town or even families world’s away. Whether collecting items for a local food bank or organizing multiple fund-raisers for a national charity, teams in every city bring their generosity and dedication to each event.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Page 49
IN THE COMMUNITY
Staying Involved
Food Banks of Canada Employees country-wide generously donate to their local food banks through seasonal food drive initiatives by our offices and warehouses.
Tree Planting Our hardworking teams take part in annual clean up and tree planting programs in the fall and spring. These are wonderful events that not only help the environment and beautify our cities, but they give the families of our employees an opportunity to participate as well.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
We also give people an opportunity to see where their donations go and how they are making a difference. Volunteer groups have visited the Mississauga Food Bank distribution centre where they help sort their own donations and become part of the process.
Toys for Tots No one can resist going toy shopping, so Kuehne + Nagel uses the opportunity to have employees buy a few extras to donate during the holiday season. We also hold fund-raisers so Toys for Tots can purchase additional gifts for the age groups in which donations are in short supply.
Page 50
IN THE COMMUNITY
Staying Involved
Children’s Book Bank
Habitat for Humanity
Children’s Wish
Stop Hunger Now
It looks like an old-fashioned bookstore, but the children who scan the shelves here know they can pick a book to take home and keep it - for free.
Since building its first Canadian house in 1985, Habitat for Humanity has provided more than 2,200 safe and affordable homes for families.
Our employees have donated more than 1,000 new and gently used books to this bright spot in the community that puts literacy into the hands of children in low-income areas.
Kuehne + Nagel is proud to take up the challenge, along with a few hammers, and help build new homes in our community.
We have been lucky enough help grant a few of the more than 20,000 wishes that children with life-threatening illnesses receive from the foundation.
As part of an initiative through the HiPo team (High Potential Management program), employees in our Canadian locations joined with others around the globe to raise over $31,000 for a food packaging event that delivered 100,000 meals to a school program in Nicaragua.
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
Our volunteers take part in some great team-building events while creating great memories for the kids.
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GRI Index 3.1 Level “C”
GRI 3.1 Index Level “C”
Reported Partially Reported Not Reported Not Applicable
G3.1 Indicator
Description
n/a
Information about this indicator, where reported
Strategy and Analysis 1.1
Statement from the most senior decision-maker of the organization
see President’s statement
Organizational Profile 2.1
Name of the organization
Module: Kuehne + Nagel at a Glance
2.2
Primary brands, products, and/or services.
Module: Kuehne + Nagel at a Glance
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
see our 2013 Annual Report
2.4
Location of organization’s headquarters.
see our 2013 Annual Report
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
see our 2013 Annual Report
2.6
Nature of ownership and legal form.
see our 2013 Annual Report
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/ beneficiaries).
see our 2013 Annual Report
2.8
Scale of the reporting organization
see our 2013 Annual Report
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
see our 2013 Annual Report
2.10
Awards received in the reporting period.
-
Report Parameters 3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
see About this Report
3.2
Date of most recent previous report (if any).
see About this Report
3.3
Reporting cycle (annual, biennial, etc.)
see About this Report
3.4
Contact point for questions.
see About this Report
3.5
Process for defining report content.
see About this Report
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.
see About this Report
3.7
State any specific limitations on the scope or boundary of the report (see completeness Principle for explanation of scope).
see About this Report
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
see About this Report
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement
-
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
-
3.12
Table identifying the location of the Standard Disclosures in the report.
GRI 3.1 Index Level “C”
Governance, Commitments, and Engagement 4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
see our 2013 Annual Report
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
see our 2013 Annual Report
4.3
For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.
see our 2013 Annual Report
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
see our 2013 Annual Report
4.14
List of stakeholder groups engaged by the organization.
see our 2013 Annual Report
4.15
Basis for identification and selection of stakeholders with whom to engage.
see our 2013 Annual Report
Economic Economic Performance EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
see our 2013 Annual Report
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change.
see our 2013 Annual Report
EC3
Coverage of the organization’s defined benefit plan obligations.
see our 2013 Annual Report
EC4
Significant financial assistance received from government.
see our 2013 Annual Report
Market Presence EC5
Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
see our 2013 Annual Report
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
see our 2013 Annual Report
EC7
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
see our 2013 Annual Report
KUEHNE + NAGEL CORPORATE RESPONSIBILITY REPORT 2014
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GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
Indirect Economic Impacts EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
see our 2013 Annual Report
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts.
see our 2013 Annual Report
Environment Materials EN1
Materials used by weight or volume.
-
EN2
Percentage of materials used that are recycled input materials.
-
Energy EN3
Direct energy consumption by primary energy source.
Module: Environment
EN4
Indirect energy consumption by primary source.
-
EN5
Energy saved due to conservation and efficiency improvements.
-
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Module: Environment
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
-
Water EN8
Total water withdrawal by source.
Module: Environment
EN9
Water sources significantly affected by withdrawal of water.
-
EN10
Percentage and total volume of water recycled and reused.
-
Biodiversity EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
-
n/a
EN12
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
-
n/a
EN13
Habitats protected or restored.
-
n/a
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity.
-
n/a
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
-
n/a
Emissions, Effluents and Waste EN16
Total direct and indirect greenhouse gas emissions by weight.
Module: Environment
EN17
Other relevant indirect greenhouse gas emissions by weight.
-
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
Module: Environment
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Page 55
GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
EN19
Emissions of ozone-depleting substances by weight.
-
EN20
NOx, SOx, and other significant air emissions by type and weight.
-
EN21
Total water discharge by quality and destination.
-
EN22
Total weight of waste by type and disposal method.
Module: Environment
EN23
Total number and volume of significant spills.
Module: Health and Safety
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
-
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
-
n/a
Products and Services EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Module: Environment
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
-
n/a
Compliance EN28
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.
-
Transport EN29
Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.
Module: Environment
Overall EN30
Total environmental protection expenditures and investments by type.
-
Labour Practices and Decent Work Employment LA1
Total workforce by employment type, employment contract, and region broken down by gender.
-
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
-
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
-
LA15
Return to work and retention rates after parental leave, by gender.
-
Labour /Management Relations LA4
Percentage of employees covered by collective bargaining agreements.
-
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
-
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GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
Occupational Health and Safety LA6
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Module: Health and Safety
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender.
Module: Health and Safety
LA8
Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
-
LA9
Health and safety topics covered in formal agreements with trade unions.
-
Training and Education LA10
Average hours of training per year per employee by gender and by employee category.
-
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
-
LA12
Percentage of employees receiving regular performance and career development reviews by gender.
-
Diversity and Equal Opportunity LA13
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
-
Equal remuneration for women and men LA14
Ratio of basic salary of men to women by employee category.
-
Human Rights Investment and procurement practices HR1
Percentage and total number of significant investment agreements and contracts that include human rights clauses or that have undergone human rights screening.
-
HR2
Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening and actions taken.
-
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
-
Non-discrimination HR4
Total number of incidents of discrimination and corrective actions taken.
-
Freedom of association and collective bargaining HR5
Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
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GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
Child Labour HR6
Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour.
-
Prevention of forced and compulsory labour HR7
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour.
-
Security practices HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.
-
Indigenous rights HR9
Total number of incidents of violations involving rights of indigenous people and actions taken.
-
Assessment HR10
Percentage and total number of operations that have been subject to human rights reviews and/ or impact assessments.
-
Remediation HR11
Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.
-
Society Performance Indicators Employment SO1
Percentage of operations with implemented local community engagement, impact assessments, and development programs.
Module: Community Involvement
SO9
Operations with significant potential or actual negative impacts on local communities.
-
SO10
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.
-
Corruption SO2
Percentage and total number of business units analyzed for risks related to corruption.
-
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures.
Module: Corporate Governance
SO4
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
-
Public Policy SO5
Public policy positions and participation in public policy development and lobbying.
-
SO6
Percentage of employees trained in organization’s anti-corruption policies and procedures.
Module: Corporate Governance
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GRI 3.1 Index Level “C” G3.1 Indicator
Description
Information about this indicator, where reported
Anti-Competitive Behaviour SO7
Total number of legal actions for anticompetitive behaviour, anti-trust, and monopoly practices and their outcomes.
-
Compliance SO8
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
-
Product Responsibility Customer Health and Safety PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories.
-
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
-
Product and Services Labelling PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
-
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
-
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
-
Marketing Communications PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
-
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
-
Customer Privacy PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
-
PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.
-
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Corporate Responsibility Report 2014
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