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Paroc Book of Sustainability 2009-2011

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SUSTAINABILITY 2009-2011
Transcript

SUSTAINABILITY 2009-201 1

TABLE OFCONTENTS

The Global Reporting Initiative (GRI) is a non-profit organisation that works towards a sustainable global economy by providing sustainability reporting guidance. GRI has pioneered and developed a comprehensive sustainability-reporting framework that is widely used around the world. The framework enables all organisations to measure and report their economic, environmental, social and governance performance.*

For more information visit: www.globalreporting.org

*source: www.globalreporting.org

About GRI

2

Contents■ 1 CompANY 41.1 paroc: for a sustainable built environment 6

1.2 CEo statement 10 1.3 paroc strategyy 13

1.4 Concrete actions 14 1.5 Sustainability policy 15

■ 2 SUSTAINABILITY AT pARoC 16

2.1 Sustainability programme 18 2.2 Trends driving paroc Sustainability 19

2.3 products and solutions 20 2.4 High-technology production 22

■ THREE DImENSIoNS oF SUSTAINABILITY 24

3.1. Environmental dimension 26 3.1.1 The Kyoto pyramid 27 3.1.2 Regulatory issues related to sustainability 28 3.1.3 Voluntary sustainability rating systems 29 3.1.4 Low-energy buildings 31 3.1.5 Energywise House™ 33 3.1.6 Environmental indicators 35

3.2 Social dimension 36 3.2.1 occupational health and safety 37 3.2.2 EWC agreement 38 3.2.3 product safety 39 3.2.4 Fire safety 40 3.2.5 Renovation era 41

3.2.6 Social indicators 41

3.3 Economic dimension 42 3.3.1 Compressed packs 43

3.3.2 Customer satisfaction 44 3.3.3 Economic indicators 44

■ 4 WoRDS To DEEDS 464.1 Energy efficient houses 48

4.2 Energy renovation of a multi-storey apartment house 54 4.3 Smart construction for the wellbeing 56

4.4 Industrial solution 58 4.5 Flue-gas desulphurisation 58

■ 5 REpoRT pARAmETERS 605.1 Briefly 62

5.2 process for defining report content 64 5.3 Boundary of the report 65 5.4 Achievements, challenges and targets during the reporting period 67 5.5 Table identifying location of standard disclosures in report 67

3

SuSTAiNABiLiTy iS A STATE OF miNd

1 CompANY

1.1 Paroc: for a sustainable built environment

We at paroc strive for customer benefits by delivering solutions for a sustainable built environment. our customers vary from single-family homebuilders to architects and contractors, from dealers to industrial builders and manufacturers.

paroc Group is one of the leading insulation producers in Europe. We have been developing our know-how in energy efficiency and construction safety (i.e. fire safety, indoor air quality, and durability) for over 75 years.

paroc is the preferred partner for our customers because we cooperate extensively on product development. This helps to decrease the Co2 footprint and find the most suitable solutions for our customers’ purposes.

We develop and test sustainable concepts for a wide range of construction and industry applications: building insulation, HVAC, technical and marine insulation, sandwich panels and interior acoustics. InnovaTm is our energy saving renovation solution. We were the first company to build a passive house in the Nordic countries, verifying in real life the reduction of energy consumption and the increase in comfort of living.

our head office is situated in Helsinki, Finland. We operate in 13 countries and have production facilities in 4 countries. paroc Group is owned by a number of banks, institutional investors and a minority by paroc employees.

6

WE CREATE CUSTomER BENEFITS THRoUGH grOwTh, iNNOvATiON ANd SuSTAiNABiLiTy

7

paroc in depthparoc Group is organised into four divisions: Building Insulation, Technical Insulation, paroc panel System and Base division.

The Base divisionis responsible for line production activities and production technology development. We have eight production facilities: three in Finland, three in Sweden, one in Lithuania and one in poland. Together these employ 1,300 factory workers. We are currently building a new plant in Tver, Russia to expand our capacity to serve the growing Russian market.

Building Insulation offers a wide range of products and solutions for all types of buildings. Building Insulation’s customers are dealers, construction companies, prefabricated house and element manufacturers, architects, engineers and indirectly also consumers. Building Insulation solutions are used for thermal, fire and sound insulation of exterior walls, roofs, floors, basements, intermediate floors and partition walls. Acoustic products include sound absorbing ceilings and wall panels as well as industrial noise control products. paroc Building Insulation is known for its deep technical know-how and ability to adapt to customer needs.

Technical Insulation produces high-quality, energy efficient insulation solutions for industrial, marine and offshore, oEm (original equipment manufacturer) and HVAC uses. The solutions are used for thermal, fire, sound and condensation insulation in HVAC systems, industrial pipelines and processes, ship structures and oEm. Technical Insulation serves customers in the process industry and HVAC dealers and contractors, shipyards and shipbuilding industry and oEm companies. Technical Insulation offers its solutions worldwide and is known for its ability to adapt to special customer needs. our quality-conscious customers value paroc’s complete solutions, which include co-planning, tailor-made products and even installation training.

paroc panel System offers fire-safe steel-faced sandwich panels with paroc stone wool cores. Their main application areas are facades, partitions and ceilings in commercial, industrial, office and public buildings. Sandwich panel solutions include everything needed to complete a structure: panels, fixings, flashings, profiles, sealants, lifting equipment as well as first-class technical support.

paroc panel System also provides solutions for facilities with specialised needs, such as extra fire-safety, hygiene, sensitive acoustics, as well as attractive architecture. paroc panel System serves architects and contractors as well as developers in Nordic, Baltic and Central European countries. It is known for its unique service package based on construction expertise that includes a complete range of support. The package ensures a smooth design process, precise deliveries and fast installation while increasing cost- and energy-efficiency.

8

our mission

PArOC iS AN iNNOvATivE ANd TruSTEd PArTNEr FOr A SuSTAiNABLE BuiLT ENvirONmENT

9

1.2 CEO statement

At paroc, sustainability has been the key driver for decades. We have been working for better insulation since 1937 and grown into one of the leading companies in the industry. our everyday work contributes to a more sustainably built environment because insulation mitigates climate change more than any other construction element.

In recent years, our operating environment has become more demanding in many ways. We have managed to enhance our competitiveness, but we still have potential to improve. In particular we can develop our product and service offering to be even more sustainable and beneficial for the customer.

In the future sustainability offers us huge new opportunities. We strive to help our customers and their customers succeed in building more sustainably by providing products and services for energy efficiency, fire safety and smarter construction. paroc’s strategy is based on sustainability but concentrates on customer cooperation, growth, innovation and people.

Sustainability also steers the business of our customers, suppliers and end users. We

10

ThErE iS NO PLANET B

work together with our customers and professional networks to thrive in R&D and innovations. In the long run, our innovations reduce the energy needed and cut down the Co2 emissions of the built environment.

paroc has been a pioneer in developing the Energywise HouseTm concept for new single-family residential houses as well as for multi-story apartment buildings. our latest achievement is InnovaTm, an energy-renovation concept for old residential multi-story buildings.

In production we are committed to cost efficiency and minimal use of resources. These commitments enable us to provide cost-competitive solutions for market needs in different countries. At paroc, occupational health and safety comes first and our target is zero accidents. Skilled and motivated personnel form an important basis for our company’s success. We continuously offer our people possibilities to learn and develop.

All over the world, the business environment is undergoing many changes. Amidst this change, paroc is committed to thriving by being an innovative and trusted partner that offers customer-benefiting solutions for a more sustainable built environment.

Kari Lehtinen

CEo

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CrEATiNg A SOLid FOuNdATiON FOr A BETTEr FuTurE

12

1.3 Paroc strategy

Creating customer benefits is fundamental for us at paroc. We believe that satisfied customers are the source of our success both in the long and short term. We aim for customer benefits through three key enablers: growth, innovation and sustainability.

profitable growth ensures that we are an attractive company from our owners’ perspective. This is important because it enables us to develop our plants, products and behaviour to meet the changing needs of our customers. We want to grow in a sustainable way. Sustainability for us encompasses our own operations, but also the impact of our offering on our customers and the impact on building owners and end users, in other words: all of us.

people

Customerfocus

Growth

Sustainability& efficiency

Innovation

Paroc strategy focus areas

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1.4 Concrete actions

paroc provides solutions for a sustainable environment both in new construction and refurbishment. our solutions range from the process industry to residential construction and even high-tech marine applications. Creating solutions that are energy efficient, fire safe, long-lasting and healthy inspires us and drives us forward.

Since the 1930s we have continuously developed energy efficient and fire-safe solutions that last. part of our tradition is extensive experience in production technology. Along the way, we have made a number of sustainable innovations. Take a look at our green history timeline on page 68.

We are committed to providing solutions that strongly contribute to the European climate change mitigation objectives of reducing Co2 emissions by 80% by 2050. We constantly develop our offering and operations towards this overarching goal.

paroc has adopted a Sustainability policy to guide its activities. You can find the paroc Sustainability policy on the next page. The policy covers all three dimensions of sustainability: environmental, social and economic. The policy guides us in our decision-making and in achieving results within the three dimensions. In the long run, the paroc Sustainability policy will improve our performance and competitiveness.

REDUCING Co2

EmISSIoNS BY 80% BY 2050*

ThE POSSiBiLiTy TO CrEATE

EvEN mOrE SuSTAiNABLE

SOLuTiONS FOr Our

CuSTOmErS iNSPirES uS

*On 15 December 2011, the European Commission adopted the Communication “Energy Roadmap 2050”.

http://ec.europa.eu/energy/energy2020/roadmap/index_en.htm

14

1.5 Sustainability Policy

paroc promotes the environmental, social and economic dimensions of sustainability in all its operations. We are constantly developing these three dimensions, which complement and support each other in parallel.

Environmental sustainability is an important driver in our product management. By developing our products and providing technical support, we aim to continuously enhance the energy efficiency of the built environment – and fight climate change. In our operations, we measure and improve the efficiency of resource use.

our social responsibility obliges us to maintain and develop concepts and products that contribute to the safety, health and aesthetics of our customers’ property. We develop health and safety in our own operations to offer a safe working place for our employees. Reliability as a partner and employer form the basis of our daily work. We measure our performance, including customer and employee satisfaction, regularly and take action where needed.

Fulfilling our environmental and social responsibilities helps us to secure our economic sustainability. We also understand that developing our overall, long-term sustainability is enabled by our profitability. Customer satisfaction is the clue to our success and long-term profitability.

We measure the sustainability of our operations and report our progress openly, using indicators based on international recommendations.

By acting responsibly towards all stakeholders, we trust in our ability to attract partners, employees and investors, and to provide sustainable benefits.

PArOC AimS TO CONTiNuOuSLy ENhANCE ThE ENErgy EFFiCiENCy OF ThE BuiLT ENvirONmENT

15

iNSPirEd By SuSTAiNABiLiTy

DBK, warehouse in Denmark

iNSPirEd By SuSTAiNABiLiTy

2 SUSTAINABILITY AT pARoC

2.1 Sustainability Programme

The paroc Sustainability programme started in June 2011. The long-term target is to achieve improvements in processes, economic growth and added value to our stakeholders. The short-term target was to publish the very first paroc Book of Sustainability, a sustainability report according to the Global Reporting Initiative (GRI).

The paroc Sustainability programme is carried out in phases covering the customer solutions development and improvements in our production processes and logistics. our strengths and development areas are assessed regularly, and development portfolios are consequently revised. Based on these, actions will be planned and implemented.

The vision of the Sustainability programme is to harmonise the sustainability development at paroc and to make us even better known for providing sustainability enhancing services and solutions to our customers and end users by running sustainable and profitable business operations.

• Develop our capabilities and infrastructure to measure and improve our sustainability performance

• Communicate our objectives and achievements to improve our stakeholders’ knowledge of our development

• Ensure that sustainability is prioritised in our product and production development

• Create new building and structural concepts to reduce energy consumption

• Actively maintain a development portfolio for resource efficiency in production and logistics

• Ensure the future value of Paroc and improve the long-term sustainability of Paroc Group

The objectives of paroc the Sustainability programme are to

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BuiLdiNgS iN ThE Eu CONSumE 40% OF ALL ENErgy

2.2 Trends driving Paroc Sustainability

Buildings in the EU consume 40% of all energy. Around the world, construction and buildings cause approximately 36% of Co2 emissions*.

Carbon dioxide (Co2) is the most significant greenhouse gas generated by human activity. The current levels of carbon dioxide in the atmosphere are higher than at any time in the past 20 million years. Fossil fuels, such as coal, oil and natural gas used in energy production and transport, are the greatest source of emissions.

From desertification to rising sea levels, climate change is expected to present significant challenges to humanity. In the Baltic Sea region temperatures may even fall as a result of changes to the Gulf Stream.[1]

The EU has committed itself to reduce greenhouse gas emissions by 80% by 2050. The construction sector has an ever-increasing focus on improving the energy performance of both new construction and the existing building stock. paroc is part of this and actively introduces construction concepts and structural and material concepts that address this need in both new construction and refurbishing.

Eu regulationEU policies such as the Construction products Regulation, Eco Design Directive andGreen public procurement, along with the new sustainability standards for construction, target both building and product level.

Third-party labels are all steering construction industry towards more sustainable production and operations. Both energy performance of buildings and sustainable consumption are highly prioritised. For paroc this means that resource efficiency will be the main driver in our operations development. As our production emissions continuously decrease, the result for our customers is an even more sustainable product and a sustainable planet.

1 Bryden H et al, Slowing of the Atlantic meridional overturning circulation at 25° N. Nature 2005; 438.

For more information visit: www.eurima.org/energy-efficiency-in- buildings

*source: www.eurima.org/energy-efficiency-in-buildings

19

paroc solutions range from sustainable logistics to energy-efficient insulation products for end users, and cover needs in the design-build-delivery-installation-use-demolition chain.

We have pioneered both low-energy house and cutting edge concepts for cost-optimal energy refurbishments and structural solutions. Since the 1990s these concepts have evolved and improved year after year as part of our Energywise HouseTm concept.

More information on the Energywise HouseTM on page 33

paroc actively participates in standardisation development and has committed itself to delivering products in line with standards and regulations. In parallel, paroc develops cutting-edge solutions and applications in order to further improve sustainability of the built environment.

CE markThe CE marking complying with the Construction products Regulation of the European Commission will be mandatory from 1 July 2013 onwards. We have the right to mark our products when CE marking can be applied, and we conform to regulations in our operations and products. The first time paroc insulation products were granted a CE mark was in 2002.

2.3 Products and solutions

paroc offers a wide range of products and solutions for all types of building, acoustic, HVAC, industrial process and marine applications. All paroc products are manufactured according to available standards, and environmental, health and safety requirements are met. We have the right to mark our products when the CE marking can be applied, and we conform to regulations in our operations and products.

Since autumn 2012, paroc’s right to apply the CE marking was extended to cover technical insulation products intended for insulating HVAC solutions, industrial piping, storage tanks and equipment and various customer-specific solutions.

As paroc operates in 13 countries across Europe, the internationally recognised CE marking tells customers that the performance of the products in the familiar red-and-white-striped packaging meets the declared values.

The CE mark, which is an abbreviation of the French phrase “Conformité Européenne” (“European Conformity”), is a mandatory conformity mark for products placed on the market in the European Economic Area (EEA).

By placing the CE mark on a product, a manufacturer guarantees that the product conforms to the essential requirements of the applicable EC directives.

An independent third party, also known as a notified body, which is authorised to carry out CE marking testing and plant quality control, verifies the CE marking. paroc’s products are carefully controlled at the plant. In addition to internal quality control (i.e. in Finland VTT Expert Services oy), a notified body carries out an inspection visit at every paroc plant twice a year.

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widE rANgEOF SAFESOLuTiONS

• The Energywise HouseTM concept for passive houses and refurbishment including structural solutions

• The energy consumed in manufac-turing our products equates many times over to saved energy during the life cycle of the products

• Minimising waste at the building site by offering tailor-made products such as Paroc Panel System

From refurbishing to new buildingParoc solutions cover all needs in the design-build-delivery-installation-use-demolition chain.

• Over 50% of all our roofing pallets are Eco-pallets made of Paroc insulation. After transportation, the pallets can be used as standard insulation. This means approximately 100 million truckload kilometres saved by 2020

• Flexible products that are 60% compressed, which will result in a transport saving of 250,000 truckloads by 2020 – that’s over four truckload trips around the globe every week!

21

Stone as a basis for our products brings many advantages. There is almost an unlimited amount of the raw material available and it can be found in abundance anywhere. on the other hand we need only a very small amount of stone for our needs. In paroc stone wool, approximately two percent of the volume is molten rock and a tiny amount is binder. The remaining ninety-eight percent is air. Together these make a very durable, natural insulating material that insulates well, protects from fire and repels water.

paroc stone wool solutions are durable, long-lasting, safe to use, fire safe and energy efficient.

resource efficiency Resource efficiency focus has steered paroc’s production and efficiency development since the 1930s. Currently paroc is engaged in development that will further improve the energy efficiency of our production process. These activities will run on a long-term

basis and are expected to clearly reduce our Co2 emissions per tonne of produced mineral wool.

The reduction of energy consumption in production has a direct positive impact on both Co2 emissions and the production efficiency. Hence an environmental improvement is an economic improvement at the same time.

Positive effectsWorking according to sustainable principles is at the core of our production. A low-carbon and low-energy development programme is ongoing at paroc Group with ambitious goals for emissions reduction and efficient resource use.

Efficient use of raw materials, water and energy belong to paroc’s key indicators in production management. By focusing on waste prevention, waste reuse and recycling, paroc improves energy efficiency and reduces the need for virgin stone at the same time.

2.4 High-technology production

paroc is the technology leader in stone wool manufacturing. We have innovated, developed and built most of our process equipment by ourselves. In earlier times we have even licensed our technology.

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Efficient production benefits the environment. The positive effects of using paroc stone wool insulation outweigh the environmental impact of producing the insulation.

green electricity and recyclingAs a company using energy intensive processes, it goes without saying that all means of saving energy and consequently leaving a smaller carbon footprint are important. A smaller carbon footprint is achieved by favouring low-carbon energy sources and low-energy technology. In the Nordic countries our production uses 100% green electricity at all sites and bio-fuel wherever possible.

Local legislation stipulates that landfills should only be used for waste handling as a last resort. At one site paroc has already succeeded in reaching the goal of sending no waste to landfills. The average level of waste recycling is close to 75%.

paroc is a pioneer when it comes to reducing sulphur dioxide emissions. more than half of our products are produced with very low sulphur dioxide emissions. paroc has also developed a unique methodology for sulphur-free waste recycling.

EFFiCiENT PrOduCTiON

BENEFiTS ThE ENvirONmENT

23

grEEN ThiNkiNg, NEw viEwS

• generating and distributing wealth

• profitability• efficiency• added value for

stakeholders

• energy reduction of production

• reducing emissions• recycling• energy efficient and

long-lasting products• efficient use of raw

materials

• product safety• corporate citizenship• contributions to society at large• health and safety• well-being of employees• long-term viability

PR

OFI

TAB

LE G

RO

WTH

ImPR

OvInG E

nERGy

EFFIC

IEnCy

OF BuILT

EnvI

ROnmEnT

PROduCT SAFETy And LOW CARBOn SOCIETy

Sustainability dimendions

Economic

Environmental

Social

3 THREE DImENSIoNS oF SUSTAINABILITY

3.1 Environmental dimension

Environmental sustainability is an important driver in our product management. By developing our products and providing technical support we aim at continuously enhancing the energy efficiency of the built environment – and thus fighting climate change.

profitable growth is one of our focus areas, but we want to grow sustainably. Construction and industry contribute to 60% of Co2 emissions globally.* Increasing Co2 levels in the atmosphere endanger our grandchildren’s future – we want to do our part in reducing Co2 emissions in our own operations and beyond in the built environment.

We offer products to reduce the Co2 lifetime emissions in different buildings, industry and marine applications. Buildings account for 40% of Europe’s annual energy consumption1. Thus improving energy efficiency is the key to cutting emissions. In the construction of new buildings, the installation of long-lasting thermal insulation is the most cost-effective method for reducing energy consumption[2].

1 Bryden H et al, Slowing of the Atlantic meridional overturning circulation at 25° N. Nature 2005; 438.

2 Petersdorff C et al, Mitigation of CO2 Emissions from the building stock. Cologne; Ecofys, 2004; II

3 Petersdorff C et al, Cost Effective Climate Protection in the Building Stock of the New EU Member States. Cologne: Ecofys, 2005; IV/V.

4 Egenhofer C et al, Revisiting EU Policy Options for Tackling Climate Change. A Social Cost-Benefit Analysis of GHG Emissions Reduction Strategies. Brussels: Centre for European Policy Studies (CEPS), 2006.

After comparing alternative technologies for tackling climate change, the Centre for European Policy Studies (CEPS) concluded that energy efficient insulation in new buildings is the best way to prevent climate change while also improving competitiveness3. Importantly, the report also pointed out that improved energy efficiency in buildings can be delivered and implemented using existing know-how. Insulation improvement is also cost effective and poses no significant risks.

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3.1.1 Kyoto Pyramid

The Kyoto pyramid is an internationally approved model outlining effective measures for the reduction of energy consumption. The pyramid highlights the reduction of heat loss as the most significant and effective single measure. An efficient building envelope is the foundation of building energy efficiency. Insulating new buildings properly against cold and heat is the best way to prevent climate change.

2. USE ELECTRICITY EFFICIENTLY

3. USE SoLAR poWER poSITIoNING BUILDINGS

4. mANAGE YoURENERGY CoNSUmpTIoN

5. CHooSEYoUR ENERGY

SoURCE

1. REDUCE HEAT LoSS

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Construction Products directive The Construction products Directive (CpD) ensures the free movement of all construction products within the European Union. CpD introduces a common technical language, consisting of harmonised standards and European technical approvals, in which manufacturers can express the performance of the products they place on the market.

Construction Products regulationThe Construction products Regulation (CpR) will replace the Construction products Directive (CpD) when it comes into force on 1 July 2013. This change will make CE marking mandatory in every member State and will also add a seventh essential requirement to the six basic requirements list. The new requirement is sustainable use of natural resources.

The requirements are:1. mechanical resistance and stability 2. Safety in case of fire 3 Hygiene, health and the environment 4 Safety and accessibility in use 5. protection against noise 6. Energy economy and heat retention7. Sustainable use of natural resources

The Construction products Directive (89/106/EEC) requires products to be marked ‘CE’ to demonstrate their conformity with EU standards.

The “Sustainability of Construction Works” standard has been prepared by the CEN Technical Committee 350. Standards on construction products are also continually evolving, and at paroc we contribute to this development and are committed to developing products that fulfil sustainability requirements.

Life cycle assessmentStandards regulate life cycle assessment (LCA) and environmental product declarations. paroc has prepared an LCA of its main product groups and has started activities to improve reporting on issues related to life cycle assessment.

3.1.2 Regulatory issues related to sustainability

A life cycle approach ensures both long-term and holistic evaluations and takes into account the energy efficiency of a building during its lifetime, that is, the energy that is saved. We support the evaluation of sustainability based on CEN and ISo standards.

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Rating systems allow transparency in showing the performance in the planned environment throughout the entire life span. Rating systems use indicators in different categories. These indicators have threshold values both in national and international regulations. By the use of coefficients, the indicators are combined to obtain the total rating for the project.

We participate in the voluntary rating systems by delivering the needed information of our solutions to our customers. Below we introduce the most common rating systems.

green Building CouncilA number of countries have set up Green Building Councils to lead green building certification. The national green building councils have founded the World Green Buildings Council in order to compare experiences and learn from each other.

For more information visit: www.worldgbc.org

BrEEAmThe Building Research Establishment’s Environmental Assessment method (BREEAm) uses recognised measures of performance, which are set against established benchmarks, to evaluate a building’s specification, design, construction and use. The measures represent a broad range of categories and criteria from energy to ecology. They include aspects related to energy and water use, the internal environment (health and well-being), pollution, transport, materials, waste, ecology and management processes.

BREEAm addresses wide-ranging environmental and sustainability issues to enable developers, designers and building managers to demonstrate the environmental credentials of their buildings to clients, planners and other initial parties. BREEAm uses a straightforward scoring system supported by evidence-based science and research. It has a positive influence on the design, construction and management of buildings. It also defines and

maintains a technical standard with quality assurance and certification.

BREEAm is used in a range of formats from country-specific schemes, adapted for local conditions, to international schemes intended for the certification of individual projects all around the world.

For more information visit: www.breeam.org

LEEd Leadership in Energy and Environmental Design (LEED) is a rating system devised by the United States Green Building Council to evaluate the environmental performance of a building and encourage market transformation towards sustainable design. The system is credit-based, allowing projects to earn points for environmentally friendly actions taken during the construction and use of a building. A building requires at least 40 points for certification.

3.1.3 voluntary sustainability rating systems

paroc supports labels that aim at improving the sustainability of the built environment and calls for assessment procedures based on scientifically based international standards. With the help of the rating systems investors, authorities and users can compare properties with a unified methodology.

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LEED Levels:- platinum, 80–110 points- Gold, 60–79 points- Silver, 50–59 points

The levels correspond to the number of credits accrued in five green design categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources and indoor environmental quality. LEED can also award points for innovative design and material characteristics, for example.

LEED certification, which includes a third-party commissioning process, offers proof to the client and the public at large that the environmental goals are achieved and the building is performing as designed. Getting certification offers also the advantage of a growing number of government incentives and can help boost media interest in a project.

For more information visit: www.gbci.org

iSO 14001 ISo 14001 certificate, granted to paroc, indicates that environmental aspects, such as emissions into the air, waste handling, utilisation of natural resources and energy efficiency are paid attention to and the environmental impacts of production are constantly improved. paroc has been granted an ISo 14001 certificate.

For more information visit: www.iso.org

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imPrOviNg ENErgy EFFiCiENCy iS ThE kEy TO CuTTiNg EmiSSiONS

3.1.4 Low-energy buildings

Low-energy buildings have been researched and built in Europe since the 1970s and their numbers are increasing rapidly. The past decade has seen the building of thousands of even more sophisticated passive buildings. The European Commission has set a target for near zero building design to be made a standard for all new building in Europe by 2020.

In order to meet the European energy efficiency targets we must not only rely on new construction only, but also improve the energy efficiency of the existing building stock.

However, the vast majority of current building practices and processes are optimised for new construction, causing inertia in large-scale energy efficiency renovation. We at paroc have launched new products and solutions aimed specifically at renovation, but products are not enough, and therefore we focus even on renewing renovation processes in partnership with building owners, designers, element manufacturers and builders to enable new, efficient processes for the renovation market.

An example of our work for the renovation market is InnovaTm, a multi-storey house renovation concept and a new way to renovate an apartment house so it meets the passive house standard. In a typical four-storey house the energy savings are equivalent to 75 tonnes of carbon dioxide a year. This is as much as an average car would emit by driving around the globe 11 times each year. There is more information on InnovaTm

starting on page 54.

Opportunities emergeThe growing energy efficiency sector is generating new business activities and job prospects. New innovations will emerge, energy efficiency specialists from designers to builders will be needed and the whole construction business will develop into a new level. The societal win from sustainable buildings and environments is enormous – ranging from individual gains to reduction of energy dependency and a transition to a low-carbon society.

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EnErgywisE: ThE mosT cosT-EffEcTivE concEpT in ThE long run

Energy consumption, CO2 emissions and cost savings of a passive house versus a standard house, see more on page 48 about Paroc passive houses and read about the Paroc Energywise HouseTM concept on page 33.

En

ER

Gy

/ CO

2 (K

G)

0 10 20 30 40 50

110.000

220.000

330.000

440.000

550.000

TImE (yEARS)

Saved energy/CO2

● Standard building

● Passive building

Environmental dimension

CO

ST (€

)

0 10 20 30 40 50

25.000

50.000

75.000

100.000

150.000

TImE (yEARS)

● Standard building

● Passive building

● Break even in less than 10 years

Economic dimension

Saved energy/CO2

32

3.1.5 Energywise HouseTm concept

paroc is actively developing solutions for energy efficient buildings. paroc Energywise HouseTm is a forward thinking building concept that provides ideas, recommendations and instructions to help realise energy-efficient buildings and renovations. The target of the concept is to show the undisputable benefits of energy efficient building: the cosy living, the fresh and healthy indoor air, minimised heating energy costs and the decreased Co2 emissions.

paroc has been developing the Energywise HouseTm through experimental pilot projects since the 1990s. Today the programme is going strong, ensuring that paroc stays on the cutting edge of the development of building insulation solutions. It has also brought in innovative building concepts, structural solutions and patents to the company. Energywise HouseTm is the most cost-effective building concept in the long run.

For more information on the Energywise HouseTM concept visit: www.paroc.com www.energywise.com

Paroc Energywise HouseTM consists of four energy efficiency options.

• Low-energy, passive and near-zero energy / plus-energy for new buildings

• Energy-optimised solutions for renovations

Low-energybuildings

passivebuildings

Near zeroenergy/plus-

energybuildings

Energy-optimised

renovations

pARoC ENERGYWISE HoUSE™ CoNCEpT

33

Preschool in Stadsskogen in Alingsås, Sweden

34

Preschool in Stadsskogen in Alingsås, Sweden

paroc total (t) 2009 2010 2011

Total stone raw material 420,417 461,820 517,132

Chemicals total 49,672 49,477 44,839

EN3 Direct energy consumption (GJ)

Total 1,882 008 2,152 880 2,278 275

EN4 Indirect energy consumption (GJ)

Total 691,628 755,316 788,238

EN8 Water consumption (m3)

Total 501,413 487,732 418,394

EN16 GHG processes and Fugitive (t)

Co2 footprint: Total GHG 258,046 343,688 390,021

EN 20 Emissions to air (t)

Ammonia (NH3) 207 240 235

Carbon monoxide (Co) 4,428 2,818 1,703

Nitrogen oxides (Nox/No2) 216 210 244

particles 148 201 223

Sulphur oxides (Sox/So2) 474 502 554

Total emission to air 5,473 3,970 2,959

EN21 Waste waters (m3)

Total waste water to sewers 0 0 0

EN22 Wastes by treatment (t)

Total waste to landfill 22,398 26,246 24,658

EN28 Environmental Compliance

paroc has no cases of noncompliance with environmental laws or regulations during the reporting period.

3.1.6 Environmental indicators

The key environmental indicators describe raw material, energy and water consumption, emissions to air and water, and also waste handling. The GRI indicators are given in absolute numbers, which means that fluctuation in the numbers also reflect production variation – not only increased or decreased efficiency ratios.

our goal is a full utilisation of raw materials. process-improvement projects that increase recycling and waste reuse have been ongoing for many years, with a target of zero waste to landfills. The energy efficiency of the production process is another main improvement area. Energy efficiency improvements will significantly reduce the Co2 emissions per produced tonne of paroc stone wool. An ambitious energy efficiency improvement programme started in 2012 and will continue for several years. When it comes to cleaning technology for emissions to air, paroc is prepared. most of our production lines are equipped with sulphur cleaning systems. paroc does not emit any process water to sewers as the process water runs in a closed circuit.

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3.2 Social dimension

The social dimension of sustainability at paroc obliges us to maintain and develop concepts and products that contribute to the safety, health and aesthetics of our customers’ property. Reliability as a partner and employer form the basis of our daily work. We measure our performance regularly, including customer and employee satisfaction – and take action when needed.

We see sustainability driving huge opportunities in new solution development and improving the lives of our customers, end users and employees. Sustainability is a driver of innovation and growth. We are keen to make the most of this positive force both in our operations and how we bring new solutions to the market. A key driver in this context is the transition toward a low-carbon society.

on a European level the Energy performance of Buildings Directive together with the Energy Efficiency Directive are paving the way for significant improvements of the built environment.

paroc has a large social impact locally at each plant location. We are one of the biggest employers of the town or the city where we have our manufacturing facilities. We employ

wE wanT To build a dynamic, conTEmporary paroc and a sociETy wE all can bE proud of

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altogether nearly 2,000 people throughout Europe at plants and sales offices. paroc is a good local citizen, sponsoring and donating to good causes, such as children’s sports activities and an orphanage.

A safe, healthy and energy-efficient living environmentIn our development work we strive for product safety. paroc insulation does not cause noxious emissions within buildings. The natural stone used as raw material is a moisture-resistant material.

Due to the versatile applications, paroc insulation offers a healthy and safe environment. It protects from cold, heat, sound, humidity and draught. Furthermore, it guarantees good and healthy air indoors.

We will continue to develop the well being of our employees. The safety of our employees is priority number one. We have an extensive ongoing programme for health and safety at the plants, and also want to offer more opportunities for the personnel to learn and develop themselves in their work.

3.2.1 Occupational health and safety

At paroc safety comes first. our target: zero accidents.

paroc carries out personnel satisfaction surveys at regular intervals. The most recent study is from the end of 2011. The response rate was high, 85%, and the results give good guidance for the health and safety development and wellbeing of our personnel.

At paroc we continuously evaluate and develop our leadership and management systems and culture. In addition we invest in quality leadership and management by coaching and training our supervisors and managers in production units, sales and general management.

investing in safety We have increased our investment in occupational safety management and reporting during 2011. We will continue the efforts with different actions and programmes in 2012, with the aim of improving wellbeing and maintaining a safe workplace for all employees.

At Paroc safety comes first – everybody bears

responsibility for their own safety and that

of others

Paroc is an accident-free

workplace

Paroc personnel is well-protected from

occupational diseases

Paroc actively supports the

personnel’s ability to work

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3.2.2 EWC agreement

paroc has been part of the European Works Council (EWC) agreement since 2004. The EWC fosters dialogue and trust between the employees and management. Representatives of the council come from countries where paroc has production. There are also management representatives: paroc Group CEo is the chairman and all division directors as well as the HR director take part in the meetings.

The EWC has an agenda covering at a minimum the following issues:

1) Strategy, budget, organisation2) Economics and financing3) Large investments4) Transfer of production from one country to another5) Closure of factories and large layoffs6) Main principles of the personnel policy

At Paroc health and safety issues, along with environmental as well as quality and equality matters are included.

EWC Agenda

The council has two meetings a year, while the working committee holds two to four. The mandate period of the members is three years. Re-election is possible. In the working committee there are two management representatives. As a part of the paroc EWC meeting the personnel representatives hold a meeting without the management representatives.

information and consultationThe EWC personnel representatives elect four committee members who have the right to information and consultation.

Information:• To be informed about all essential facts

happening in the company • Some information may be classified as

confidential

Consultation:• The right to exchange views about given

information • Right to express other kind of opinions

about it and decisions to be made

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handling stone wool productsparoc has signed a voluntary agreement to show product handling on product packages with text and pictograms that have been agreed between all members of the European mineral Wool manufacturers association (EURImA).

Due to a mechanical reaction, paroc stone wool fibres may cause temporary itching of the skin. We recommend using protective clothes when handling stone wool fibre. However, the fibres are not damaging in the way chemical irritants may be, and the itching generally fades shortly after exposure.

rEACh requirementsparoc stone wool fibres comply with the European Chemical Agency REACH and CLp requirements. paroc stone wool fibre products contain none of the substances mentioned on the very high concern substance candidate list and are therefore classified as safe under REACH and are all evaluated as neither hazardous nor classified as irritants.

3.2.3 Product safety

paroc’s main social impact manifests over the life cycle of our products, where safety is the emphasis. our stone wool products save lives by preventing fires from starting and spreading. our products are stable and low-emitting resulting in good quality indoor climate. The products are easy and safe to assemble, thereby supporting construction workers occupational health and safety.

paroc stone wool fibre is confirmed to be safe through compliance with several environmental, health and safety criteria. All paroc mineral wool products can be used and handled safely without health hazards. In order to ensure paroc product safety, paroc Group produces only certified bio-soluble stone wool fibre, which is not classified as carcinogenic to humans.

The European Certification Board for mineral Wool products (EUCEB) trademark on paroc packages confirms that paroc stone wool fibre fulfils the requirements of the Commission Directive.

Find safety data sheets on our website: www.paroc.com

Safe and low-emittingparoc stone wool products contain no hazardous substances mentioned in the Restriction of the use of certain Hazardous Substances (RoHS) Directive. our products are also low-emitting, for which they have been tested since 1995, when the Finnish Society of Indoor Air Quality and Climate in Finland developed a voluntary system. Customers recognise paroc low-emitting products by the m1 label.

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3.2.4 Fire safety

Stone wool has a substantial positive impact on the fire safety of buildings.

As a non-combustible material, stone wool insulation prevents the spread of fire, allowing more time to escape. According to Swedish rescue authorities, fires today are developing faster and faster. This trend leaves less time for rescue operations and increases the risk of fatalities. Using non-combustible insulation materials, such as paroc stone wool, is an important choice for social sustainability.

moreover, paroc stone wool does not emit toxic gasses in a case of fire. According to The Netherlands Institute for Safety (Nibra) eight out of ten fire deaths are due to inhalation of smoke and toxic gasses. Gasses, therefore, are even more hazardous than flames. Even here paroc stone wool contributes to social sustainability.

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LA1 Total Workforce by employment type and contract 2011

Total 1,933

LA1 White Collar Workforce

Total 661

LA1 Blue Collar Workforce

Total 1,272

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities

3+ Accident Rate 3,129

Accident frequency (1) 25.1

Accident frequency (3+) 17.9

Fatality rate 0

Severity Rate % 0.34

Sick % all employees 3.8

Sick % blue-collars 4.6

Sick % white-collars 2.1

So7 Total number of legal actions for anticompetitive behaviour, anti-trust, and monopoly practices and their outcomes

paroc has no ongoing legal actions for anticompetitive behaviour, anti-trust or monopoly practices during the reporting period.

3.2.6 Social indicators

paroc employs almost 2,000 people with activities in 13 countries. With a majority of paroc employees working with production related tasks, one of our main concerns is to constantly improve workplace safety in production and logistics.

During 2011, a key performance indicator, LA7, related to development activity was launched. It is regularly reviewed by our top management and board of directors. our long-term target is zero accidents and already during the ongoing period we can see a significant improvement of this KpI.

3.2.5 Renovation era

When discussing environmental sustainability in chapter 3.1 we highlighted the importance of renovation in meeting the European energy efficiency targets.

Renovation has a key role in enabling the transition to a low-carbon society, but the emerging large-scale energy efficiency renovation market also has significant social impacts. According to research by Buildings performance Institute Europe (BpIE), an independent non-profit organisation, building renovations have the potential to create up to 1.1 million direct new jobs in the construction sector*.

*source: www.bpie.eu

Europe’s buildings under the microscope pdf

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3.3 Economic dimension

Fulfilling our environmental and social responsibilities helps us secure our economic sustainability. We also understand that developing our overall, long-term sustainability is enabled by our profitability. Customer satisfaction is the key to our success and also offers long-time profitability.

We strive to bring economic benefits to our stakeholders through cost-efficient, reliable products and services, but our impact goes beyond the day-to-day operations: Energy efficiency improvement of buildings is the most cost-efficient way to fight climate change.

The macroeconomic impact of improved insulation has been studied extensively. In 2007, Vattenfall and mcKinsey & Company broke new ground with their Greenhouse Gas Abatement Cost Curve, which assessed the impact and cost of different methods to reduce greenhouse gas emissions. According to their study, improvement in the energy efficiency of the building envelope is the most cost-efficient out

of the roughly one hundred methods available. In essence, an investment in the energy efficiency of the building envelope brings the best profits as a result of the saved energy.

our product quality and service reliability are crucial for the financial success of builders and property owners, whether real estate, commercial or industrial. Ease of installation, durability and safety are factors that benefit the construction projects, but they also have a profound impact on the economic benefits over the life cycle of the products. We strive to maintain a leading position as a reliable supplier of high-quality products, and we measure our customer satisfaction regularly to benchmark our progress.

Remaining competitive requires cost efficiency, which is one of our focus areas. “more out of less” is our leading principle, calling for innovation and keen control of development in all our activities.

global goalThe majority of our products are used in the EU countries, which amounts to over three-quarters of our sales. We also have an established position in Russia, our fastest growing market. In all our product segments we have a strong position in the countries around the Baltic Sea, an area close to our production sites. With paroc Technical Insulation and paroc panel System solutions our reach extends further, covering a large part of Europe and even beyond.

Läkerol Arena, Gävle Sweden..

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ChALLENgES drivE uS FOrwArd

3.3.1 Compressed packs

paroc is introducing the 60% compressed, low density (LD) packs to all markets. The programme supports our sustainability policy and profitability by introducing a means to save money, time and environment. The introduction of 60% compressed low-density packs to markets improves paroc’s sustainability even further.

““New Paroc eXtra, compressed by 60% is a very good product from several points of view. First, it is a very good quality

product and has been positively accepted on the market. Second, it helps us reduce storage space. At the same time we are able to deliver to clients more different goods in one

truck. And of course we also reduced the amountof waste from product packaging. In conclusion I would say that this product

meets our expectations.”

Saulius valunta director of uAB Serfas

Kaunas, Lithuania

With lower freight costs, reduced storage space and less packing material waste, all parties of the supply chain – from manufacturer to dealer and contractor – benefit from the compressed packs. In the Baltics, for example, the shift from 40% to 60% compressed packs last autumn decreased usage of packing plastics by 14% and wooden pallets by 34% per big pack unit.

recommended by professionalsone of the main milestones of the compressed packs programme was achieved on 1 october 2011, when the 60% compressed eXtra packs were launched on Baltic and Russian markets. At the same time Sweden launched the remaining thicknesses of UNS 37z packs as 60% compressed. The final step of the programme will be taken as Finland will increase the previously achieved 50% compression to 60% and launch it on the Finnish market.

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3.3.2 Customer satisfaction

Customers are paroc’s most important stakeholders. Being customer focused we are able to help them to succeed with their customers. Customer satisfaction improves customer retention, and loyal customers contribute to our profitability, enabling us to develop our offering further to meet the varying customer needs.

paroc measures customer satisfaction through comprehensive surveys, by gathering selected feedback face to face and with the help of web polls. To ensure transparency and reliability, external vendors conduct the surveys.

3.3.3 Economic indicators

In 2011, paroc generated revenues of EUR 405 million. out of this EUR 36 million was retained for future development and EUR 87 million was redistributed to employees.

EC1 Economic Value Added (million €) 2009 2010 2011

Revenues 322.58 347.99 405.31

Community investments 0.04 0.09 0.09

Employee wages and benefits 76.51 82.29 87.66

operating costs 219.32 217.39 262.59

payments to government (gross taxes and royalties) 0.90 2.59 2.53

payments to providers of capital 30.38 14.71 16.36

Economic value retained -4.57 30.92 36.09

EC1 Economic Value Added

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45

iNNOvATiONS STArT wiTh iNSPirATiON

Planning principles of passive building

To reduce 70%–80% of the space heating needed by using conventional building techniques

• Well-insulated and air-tight envelope

• Efficient ventilation with heat recovery

• A traditional heating system based on radiators or floor heating is no longer necessary. Heat can be provided by means of ventilation

EFFICIEnT InSuLATIOn

LEvEL

LOW u vALuEWInDOWS

AIR In-BLOWAIR EXHAuST

AIR OuTBLOW

vEnTILATIOn HEAT RECOvERy

unIT

AIR InTAKE

SEALInG PRODuCTS: RELIABLE TIGHTnESS

HvAC InSuLATIOn

BuILDInG EnvELOPE InSuLATIOn

EFFICIEnT MECHAnICAL

SySTEMS

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our first passive house pilot ever is passive House Granbäck in the Vallentuna area of Stockholm, Sweden

passive House Granbäck is a timber-framed two-storey single-family house built in two phases. The first phase consisting of 105m2 was completed in 2008. The second phase, adding 95m2 for a total floor area of 200m2, was completed in 2009.

ENERGYWISE grANBäCk PASSivE hOuSE

4 WoRDS To DEEDS

4.1 Energy efficient houses

design dataU-values: External wall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.09W/m2KRoof: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.07 W/m2KFloor: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10 W/m2KWindows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 W/m2KDoors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.84 W/m2KAverage ventilation: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 1/hHeat recovery rate: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85…90 %Air tightness: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n50: 0.18 1/h (measured value) Required amount of heating energy: . . . . . . . . . . . . . . . . . . . . . . . . ≤ 15kWh/m2, a (air heating)

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paroc promise was completed for the Housing Fair in Valkeakoski, Finland in the summer of 2009. paroc promise was the only house that met VTT’s criteria for a passive house. The public voted it the second best house at the fair.

paroc promise is a two-storey detached single-family house with a total floor area of 234m2. The paroc promise family has been happy with their passive house. Like the Tikkurila passive House, paroc promise has kept its promise to stay comfortably warm during winter and pleasantly cool in the summer – and this with a fraction of the energy consumption of a standard house. The only enhancement after the completion of the house is added thermal insulation for the incoming air in the ventilation system.

ENERGYWISE HoUSE

paroc promisE

design dataU-values: External wall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.086W/m2KRoof: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. 063 W/m2KFloor: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. 08 W/m2KWindows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75…0.84 W/m2KDoors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6...0.72 W/m2KAir tightness: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n50: ≤0.28 l/h *Heating energy demand: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.8 kWh/m2/a

*The airtightness of the building envelope can be measured according to the standardised pressure test EN 13829, by subjecting the building to 50 Pa overpressure and evaluating the air exchange rate of the building. The air leakage rate in the building should not exceed 1 per hour.

Below are some typical air leakage rates for different buildings:

Passive building n50 = 0.6

Tight building n50 = 1

New buildings (Finland) n50 = 3–4

Normal tightness n50 = 5...10 (typical old Finnish house)

Leaking construction n50 = 15

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The paroc passive House in the Tikkurila area of Vantaa, Finland is the pilot project – and at the same time the first passive house in Finland in accordance with VTT’s definition. The house was completed in may 2009 and was granted the passive House Certificate in April 2010.

paroc passive House is a two-storey semi-detached house for two families. Each family has a total floor area of 187m2 and a volume of 540m3. Both families have been happy with their homes. They have enjoyed the warmth and the draught-free house during the winters. The indoor climate is good and the families feel that the house is very quiet. The house has not needed any repairs after it was completed.

design dataU-values: External wall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.09W/m2KRoof: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.07 W/m2KFloor: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10 W/m2KWindows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7…0.8 W/m2KDoors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 W/m2KAir exchange: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 times/hVentilation air flow: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.075 m3/3Air tightness: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n50: ≤0.37 1/h *Heating energy demand: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.7 kWh/m2/a

ENERGYWISE TikkuriLA PASSivE hOuSE

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pARoC pASSIVE HoUSE

liThuania

The first paroc passive House in Lithuania was built by UAB Veikmė in a residential area in Vilnius, close to Lake Gulbino. The architect was Rytis Kripas. Building activities started in February 2009 and the house was finished in November 2009.

The building is a two-storey house with an integrated garage designed for one family. It has a total area of 224.56m2. The family in this home has been satisfied to the building quality and indoor air.

A passive House association in Lithuania was established based on the positive experiences of this pilot project. passive house institute specialists provide training for designers and issue passive House certificates.

design dataU-values: External wall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.10W/m2KRoof: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.08 W/m2KFloor: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12 W/m2KWindows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.78 W/m2KDoors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.80 W/m2KEfficiency rate of the heat-exchanger: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ≥81.4%Air tightness: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .n50: ≤0.40 1/h (value measured during testing)Heating energy demand: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ≤15kWh/m2 (space heating)

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The InnovaTm energy renovation solution enables Co2 equivalent savings of

75 TONNES PEr yEAr for a typical targeted building. This is as much as an average

car would emit by driving around the globe 11 times

per year.

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4.2 Energy renovation of a multi-storey apartment house

paroc has successfully introduced Innova, a cost-effective solution for energy renovation of typical residential buildings. The solution complements the already existing low-energy solutions of the paroc Energywise HouseTm which have been in development for a number of years.

In the peltosaari Innova project, a typical multi-storey house from the 1970s was renovated to meet the Finnish passive house requirements. After the renovation the heating energy demand was at a maximum 25 kWh/m²/a. The four-storey-high building, originally constructed in 1975, has 33 rental apartments and a day-care centre and is located in the peltosaari area in Riihimäki, Finland.

The Riihimäki Innova project before and after renovation Images: Arkkitehtuuritoimisto Kimmo Lylykangas

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4.3 Smart construction for the wellbeing

In recent years, old school premises have been a major problem for many cities and towns in Finland. The City of Jyväskylä decided to renovate the Cygnaeus School with the help of substitute premises.

The Cygnaeus School was originally built in 1920 and expanded in 1960. Both parts of the school were suffering from severe mould problems, and a massive renovation was the inevitable solution. The City of Jyväskylä considered first the conventional option to built temporary barracks for school classes while the repair work was to take place. However, the planning consultant suggested that the public competition should also include an element option, which was eventually chosen as the most sustainable solution.

The criteria for all structural and material selections were a quick construction schedule and modifiable premises. The total construction time was 24 weeks, including the demolition of the old building. The foundation, concrete frame and roof of the old building were left standing and steel-faced paroc

sandwich panels with a core of paroc stone wool were used to build a new structure on the old foundations of one wing. The old structures were carefully disinfected in order to avoid the risk of mould spreading. Interior construction work could be started in the shelter of the old roof before installing the external paroc panel walls.

This procedure proved to be a fast and sustainable way to get the new school wing built. After six months the classes could return to clean and safe premises with good indoor air quality. Compared to separate barracks, the structure built of flexible panels now forms a space for a real community. The main corridor with classrooms on both sides gives the teachers and students the possibility to communicate. Both pupils and their families value this social aspect.

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The Cygnaeus School annex has a total of 2,300 m2. The costs for the project were EUR 1.5 million euros. According to the city, elements were the most cost-competitive and ecological alternative not only for the material and assembly but also for energy consumption. Built on old foundations, district heating could be used instead of electricity.

Architecture in the city centreCygnaeus School is situated close to the city centre of Jyväskylä and contributes significantly to the city’s image. originally, ordinary paroc panels were planned to be used in the facades, but the new paroc print panels created entirely new possibilities. The architects at LpV Jyväskylä oy designed a printed ABC pattern to reflect the building’s function without setting it apart from its surroundings, the city centre on Jyväskylä.

Several advantagesAttractive design, well-being, energy-efficiency and cost-effectiveness based on short construction time are all equally important benefits when selecting panels instead of building separate barracks. The annex is to serve as a temporary facility for students at schools that are being renovated. In Jyväskylä, the annex

built of panels can easily be moved to another area and the walls can be reused.

Using paroc panels provides solution for facilities with specialised needs, such as extra fire safety, hygiene and sensitive acoustics. paroc panels also mean choosing a much better indoor climate, providing a safe and comfortable environment for teachers and students.

Awarded projectFrom a total of 18 candidates, the Cygnaeus School was one of the three projects to receive an award in the annual RIL (the Finnish Association of Civil Engineers) competition. The competition criteria are health, safety, life cycle economy, innovation, ecology and build quality. In addition, responsibility for a sustainable environment was a special criterion.

Sustainable construction siteThe environmental issues are considered throughout the panel manufacturing processes of Paroc. For example, the cutting waste is always recycled. Also a lot of weight is put on minimising the energy use in the production process.

The prefabricated Paroc panels are cut to final length to minimise the waste at the building site, which is an important safety aspect especially at a school renovation project. Ready-to-assemble panels also radically decrease the energy and water needed on the site. Special coating on the facade and in internal walls make the building maintenance-free as the only care needed is periodic cleaning of the walls.

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4.4 Industrial solution

At the Neste oil bio-diesel NExBTL refinery in the Sköldvik area of porvoo, Finland, paroc solutions were used for pipe insulation. This led to savings in several ways from both an installation and long-term perspective. Well-designed and efficiently insulated pipe work is a prerequisite for a properly functioning operation.

In total, 220,000 metres of pipe and 26,000 pipe elbows were insulated. paroc solutions were chosen because they provide the same insulation properties for both straight pipes and pipe elbows maintaining their optimal performance throughout the whole pipeline.

Sustainable and economicalpipe elbows are usually the most difficult areas to insulate using standard products. paroc has addressed this problem with the paroc pro Segment and paroc pro Bend solution, our prefabricated insulation components specifically designed for pipe elbow insulation on industrial pipelines. With paroc pipe insulation solutions the time taken to insulate pipe elbows is halved, which reduces installation costs. The insulation also becomes tighter and more reliable over time compared to what can be achieved using other solutions, such as wired mats. This means savings in time as well, proving that sustainable solutions can also be economical.

SuSTAiNABLE SOLuTiONS

CAN ALSO BE ECONOmiCAL

4.5 Flue-gas desulphurisation

paroc invested almost SEK 30 million in a purification unit for sulphur dioxide at its production plant in Hällekis, Sweden. The new unit will cut emissions by a third and raise the yearly production capacity up to 100,000 tonnes.

The new treatment plant will provide opportunities to reduce emissions by approximately 80%, while the annual production volume can increase by over 40 percent at the same time. The tuning phase of the purification unit to reduce sulphur dioxide emissions has been very satisfactory. paroc is currently working to optimise the consumption of calcium hydroxide that absorbs the sulphur dioxide in the unit. The unit already enables production capacity optimization at Hällekis.

In 2012, the last leg of the investments to complete the project are being made. These will, amongst other things, improve the noise level of the production plant and thus improve the sustainability of paroc Hällekis.

58

Neste Biodiesel, Porvoo

• Less energy loss through heat dissipation

• Less maintenance compared to similar solutions

• Fewer CO2 emissions

• Reduced costs

Installation and long-term savings

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CrEATiNg A SOLid FOuNdATiON FOr SuSTAiNABLE grOwTh

5 REpoRT pARAmETERS

5.1 Briefly

Report level GRI level C

Reporting period This report covers the years 2009-2010-2011.

Reporting cycle The reporting cycle will be annual.

Contact for questions For further information please contact paroc Group Communications. Contact: [email protected]

Identified stakeholders Distributors, contractors, developers, planning engineers, architects, contractors, subcontractors, financiers, owners, tenants, authorities and employees.

Environmental indicators paroc sales travel related environmental indicators are excluded, as well as some of the product materials that have an insignificant impact on the whole. The most impact comes from the core of the manufacturing process core; i.e. melting stone materials.

Social indicators Data on accidents and sick rates data are collected only at paroc production sites.

Economic indicators Economic value added

The sustainability reporting guidelines and technical protocols of GRI have been applied in defining the key performance indicator parameters and in the preparation of this report.

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63

5.2 Process for defining report content

The paroc sustainability topics and indicators reflect significant economic, social and environmental impacts. They have been identified through knowledge accumulated in daily business with customers and stakeholders as well as through a restricted number of in-depth meetings with key stakeholders. The main mineral wool industry companies were benchmarked on their sustainability thematic and reporting.

This process has resulted in the identification of main sustainability themes. The GRI materiality analysis principles have resulted in a materiality matrix as shown in the figure below.

Materiality analysis of sustainability themes

EconomyCustomer satisfactionAnticompetitive behaviour

Greenhouse gas and otherair emissions

Water footprint

Health and safety / Injury rateEnergy and materials useWaste

organisational profile

Low medium High Very High

Leve

l of c

once

rn fo

r st

akeh

old

ers

Low

med

Hig

hVe

ry h

igh

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5.3 Boundary of the report

paroc products have a very positive environmental impact during the use phase of a building. For example, they help to save energy and cut heating costs. over its lifetime paroc insulation will therefore save more energy than what has been used in the manufacturing of the material.

most of the impacts of paroc products occur in production, distribution and installation. The use stage of paroc products conserves energy. For environmental indicators, the boundary is therefore set to countries with production facilities (i.e. Finland, Sweden, Lithuania and poland). Economic and social indicators are reported for the whole organisation that operates in the following countries: Belarus, Belgium, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Norway, poland, Russia, Sweden, Ukraine and United Kingdom.

pARoC pRoDUCTS HAVE A VERY poSITIVE

ENVIRoNmENTAL ImpACT DURING THE

USE pHASE oF A BUILDING

65

paroc aims aT conTinuous improvEmEnT

66

5.4 Achievements, challenges and targets during the reporting period

The key performance indicators have been measured and paroc uses these measurements to carry out further development activities to improve its sustainability performance. National implementation of the EU Energy performance of Buildings Recast Directive will play a decisive role in how the local markets develop energy renovation and the use of energy-wise concepts in construction.

5.5 Table identifying the location of standard disclosures in report

AchievementsThe key event during the period has been committing to the sustainability programme. paroc has made a materiality analysis, defined a sustainability policy and evaluated the development portfolio, resulting in definition and reprioritisation of low-carbon and low-energy consumption related development.

The performance so far is good in terms of defining the status quo. paroc already has a good track record in production development and has introduced many concepts and solutions to reduce Co2 emissions in the built environment. Continuing and ramping up these efforts for even better achievements is our goal. paroc is confident that these efforts will be useful to our customers, stakeholders and owners. ChallengesIn 2011, paroc worked to define how to move forward from our current situation. paroc developed and started a sustainability programme in order to improve its performance even further. We see the effort as challenging, but also as holding great potential to improve our business further.

At the time of writing, the industry in the EU and globally is strongly affected by the ongoing turbulence in the financial markets. The outlook for 2013 on our core markets is very challenging from an economic point of view. This environment makes it more challenging to introduce new concepts and operational models.

TargetsBuilding owners are looking very closely on a short-term basis where the money is spent. The economic dimension of sustainability will be crucial in the coming years. The financial aspect of saving energy cannot be overemphasised in this environment.

paroc aims at continuous improvement of its operations’ sustainability and a continuous introduction of sustainable solutions regardless of the current turbulence of the market.

Strategy and profile page 13

management approach page 10

Economic Indicators page 44

Environmental Indicators page 35

Social Indicators page 41

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1930 1940 1950 1960 1970

1937 Stone wool production begins in

Sweden. The company is established on 4 June.

1952

Stone wool production begins in Finland

under the name partek.

1957

The production of

pipe and equipment

insulation begin.

(Technical Insulation)

1942–1946

The term Economic

Insulation is launched

as the importance of

well-insulated houses

emerges.

1960

Insulation products are

ranked according to their

insulation ability. paroc

products are granted the

highest A level certificate

in Sweden.

1962

Insulation slabs to protect

the building foundation

from frost heave are

introduced to the market.

Roof slabs are launched.

1964–65

The manufacturing

of Acoustic products

begins in Skövde,

Sweden in one of

Europe’s leading

acoustic laboratories..

68

1980 1990 2000 2012

1982

The paroc name

and trademark

are registered.

1986

paroc buys stone wool production

in Sweden.

panel System production begins.

1996–1997

Environment concept Rewool

is launched. Waste material in

production is used as a raw

material for new stone wool

products.

production of stone wool

started in Lithuania.

1998

production plant was

bought in poland and its

stone wool production

line was modernised.

2010

paroc is first in Europe to install an end

pipe solution for sulphur cleaning in

Hällekis, Sweden.

2011

All paroc production lines in Finland are equipped with bag

filters to improve environmental performance.

paroc Sustainability programme is launched, targeting resource

and energy efficiency as well as zero waste to landfills.

2012

paroc moves forward fast! A new factory in Russia is opened

and several products are launched: paroc eXtra, Conci, Cortex

and Cortex one.

2013 Insulation production begins in Russia.

2014 All Paroc lines are equipped with the best

available technology for dust removal.

2015 All Paroc plants are energy audited.

2016 All Paroc lines are equipped with

flue gas incinerators.

2020 Paroc is 30% more energy efficient.

ThE FuTurE

1980

The energy crisis of the 1970s

highlights the need for new

insulation standards. West

Coast insulation slabs, today

known as Climate slabs, are

introduced to the market.

2007

Green logistics solutions are

introduced to the market on a large scale.

2007–2009

The paroc Energywise HouseTm concept is launched. The first

passive houses are built in Sweden, Finland and Lithuania.

2010–2013The Innova project introduces

a revolutionary renovation

method for a typical concrete

sandwich element house.

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70

Warranty disclaimerThe information in this report describes the conditions and technical properties of the disclosed products, valid at the time of publication of this document and until replaced by the next printed or digital version. The latest version of this report is always available on Paroc’s website.

Our information material presents applications for which the functions and technical properties of our products have been approved. However, the information does not represent a commercial guarantee, since we do not have full control of third-party components used in the application or the installation.

We cannot warrant the suitability of our products if used in an area which is not provided in our information material.

As a result of constant development, we reserve the right to make alterations to the information stated here. PAROC® and red and white stripes are registered trademarks of Paroc Group. © Paroc Group 2012.

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www.paroc.com

paroc Book of Sustainability 2012


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