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Sustainability Report FY2020
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Page 1: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Sustainability Report FY2020

Page 2: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY20202

Foreword CEO

It is our belief that sustainability is an integral part of our corporate strategy and provides a strong, long-term basis for doing good business with our customers.

Day after day, we deliver reliable and cost-effective solutions that give our customers a competitive edge and make a significant contribution to their performance and profitability. However, the idea that profit is the single measure of business success is disconnected from today’s reality. This one-dimensional thinking has evolved towards considering the interests of our stakeholders, even of our future generations.

Innovative and fast-growing companies such as Vanderlande must strive harder than ever to reduce CO2 emissions, respect the natural capacity of our planet and create fair and safe environments for all people. How companies operate in harmony with sustainable development has become crucial in guaranteeing the wellbeing of future generations.

The demands from customers for sustainable solutions are also rising. The material handling industry is continuously evolving and seeking more challenging sustainability targets and environmentally friendly developments. Sustainability is increasingly important for our employees, who wish to be associated with a company that is value-driven, and acts accordingly on this important matter.

Vanderlande’s core values demonstrate concern for: people, safety and the environment; building relationships based on mutual trust; being transparent in communications and actions; concentrating on achieving results; and continuously improving. This is why we have placed our ‘people, planet and profit’ commitments at the core of our strategy and business values.

This means that we don’t only look after our own needs as a business, but also respect our position in the world and understand the social and ecological impact of our activities. By driving forward our vision on sustainability, Vanderlande

is displaying its dedication to being a responsible company within the global community. This vision also creates a platform from which we can provide a safe working environment for our employees and partners with their long-term wellbeing in mind.

This is why we have made it a core component in Vanderlande’s vision ‘to be the worldwide leader in sustainable automated logistic solutions’. I am convinced that it is of strategic importance to communicate our ambitions and efforts on this topic, and for this reason, I am pleased to introduce Vanderlande’s Sustainability Report FY2020.

Ten years ago, we developed the BLUEVEYOR as our first step towards the circular economy. We have learned many lessons during this period of time, and in recent years, we have greatly increased our efforts in accelerating our circular economy initiatives. We have been an active member of the ‘Capital Equipment Coalition of the Platform for Accelerating the Circular Economy’ for three years, which presented its latest report (‘Circular Insightsz) at the annual meeting of the World Economic Forum in Davos.

We know that accelerating the circular economy requires a depth of knowledge and a continuous improvement mindset, and these are the driving forces behind our solutions. The amount of knowledge within Vanderlande has already resulted in various successful projects in which we have used proven technologies with circular business models such as ‘products as a service’. These have served to integrate our activities along the entire value chain to develop tailored service concepts that meet our customers’ needs.

Our people are the greatest asset of our company, and for this reason, we have invested a great deal of effort in creating the best possible employee experience. We attract, retain, and develop talent in order to foster a culture of expertise and knowledge-sharing. This culture of knowledge results in smart solutions that are an ideal match for the challenging material handling sector.

Page 3: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY2020 3

In addition, safety has always been an absolute priority in our company – there is no job so important that it may be done in an unsafe manner. This is why, in 2019, we released the ‘life-saving rules’ programme, which has already been deployed worldwide in more than 20 languages.

All these elements have been recognised by our own teams through various top employer awards. These include being awarded the highest rating in the ‘Manufacturing and Industry’ category for several years in a row in The Netherlands, as well as the National Employers Brand Award 2020 in India, and the Top Employer 2020 award in Germany.

As a core value of Vanderlande, sustainability must grow from within, and requires the participation of our employees, customers and suppliers. This is why the communication of our vision, initiatives and solutions is of great importance. I am confident that the course we have taken puts us in a strong position to foster sustainable development, and make Vanderlande an even more attractive company for its stakeholders, employees and society.

Remo BrunschwilerCEO Vanderlande

Page 4: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY20204

About this report

The information gathered for this report reflects the efforts carried out in FY2019 and FY2020. All data refers to FY2019 and FY2020 (1 April 2018 to 31 March 2020) and represents all Vanderlande employees globally. The company’s previous sustainability report was published on 3 June 2018 and covered FY2018 (1 April 2017 to 31 March 2018). The company’s ambition is to produce a sustainability report biennially.

Vanderlande has reported on its sustainability performance since 2014. The reports have evolved over time from disclosing environmental initiatives to the broader ‘triple bottom line – people, planet and profit’ approach which covers environmental, social and economic development aspects and the responsible business practices that the company has today. This report addresses the sustainability and corporate responsibility approach relating to Vanderlande Industries, a fully owned subsidiary of Toyota Industries Corporation (TICO), in areas of environmental responsibility, social matters, human resources, and health and safety, among others.

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

Vanderlande is not obligated by legislation to report on non-financial information. However, the company believes in transparency and voluntarily chooses to publish this sustainability report. For this reason, it has not been externally assured. For more information and to view other Vanderlande reports, please visit www.vanderlande.com. Questions with regard to the content of this report can be addressed to [email protected].

The Global Reporting Initiative Vanderlande reports on its activities in accordance with globally recognised standards and principles to enable stakeholders to make informed decisions about the company’s performance in these areas. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards, Core Option. The GRI is an internationally recognised system for reporting on socially responsible business and setting out a company’s performance in economic, social and environmental terms. Vanderlande has reported in accordance with GRI since 2018 and the GRI context index can be found at the end of this report.

Page 5: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY2020 5

ContentsAbout Vanderlande 7

Sustainability ambition 13

Establishing a circular-based economy 18

Corporate governance 19

Circular solutions 25

IT security and data privacy 33

Establishing a healthy and fair society 36

Design safety and ergonomics 37

Health and safety at work 41

Employee development and training 47

Employee engagement 53

Respecting the natural capacity of our planet 58

Energy use: products and systems 59

Quality, reliability and performance 63

Responsible sourcing 69

GRI content index 74

About this report

Page 6: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY20206

Page 7: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY2020 7

About Vanderlande

Page 8: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY20208

About Vanderlande

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

Vanderlande’s baggage handling systems are capable of moving over 4 billion pieces of baggage around the world per year. Its systems are active in 600 airports including 12 of the world’s top 20. More than 48 million parcels are sorted by its systems every day, which have been installed for the world’s leading parcel companies. In addition, many of the largest global e-commerce players and distribution firms have confidence in Vanderlande’s efficient and reliable solutions.

The company focuses on the optimisation of its customers’ business processes and competitive positions. Through close cooperation, it strives for the improvement of their operational

activities and the expansion of their logistical achievements. Vanderlande’s extensive portfolio of integrated solutions – innovative systems, intelligent software and life-cycle services – results in the realisation of fast, reliable and efficient automation technology.

Established in 1949, Vanderlande has more than 6,500 employees, all committed to moving its customers’ businesses forward at diverse locations on every continent. With a consistently increasing turnover of 1.6 billion euros, it has established a global reputation over the past seven decades as a highly reliable partner for value-added logistic process automation.

Vanderlande was acquired in 2017 by Toyota Industries Corporation, which will help it to continue its sustainable profitable growth. The two companies have a strong strategic match, and the synergies include cross-selling, product innovations, and research and development.

AIRPORTS

WAREHOUSING

PARCEL

> 6,500 EMPLOYEES

1.6 billion REVENUE

Established in 1949

Global market leader

AIRPORTS INCLUDING12 OF THE WORLD’S TOP 20600

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

Largest parcel and postal companies5

global e-commerce playersof the largest

Many

innovative systems intelligent so�ware life-cycle services

> UPS> DHL > FedEx> Nova Poshta > DPD

> Orlando International Airport> London Heathrow Airport> Hong Kong Int. Airport> Amsterdam Airport Schiphol> Istanbul Airport

> Amazon> Lidl (part of Schwarz Gruppe)> Zalando> Digitec Galaxus> Albert Heijn (part of Ahold Delhaize)

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

Page 9: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY2020 9

About Vanderlande

IMPROVE THEIR COMPETITIVE POSITIONS

Core valuesOur core values relate to Vanderlande’s culture – our convictions and beliefs. They define what we stand for as a company and how we aim to achieve our mission. Our core values shape our identity.

The way each and every one of us acts, interacts, thinks and feels affects how our customers perceive us. Our core values guide our behaviour, shape our culture and corporate identity, and contribute towards our future success – they are who we are.

Build reputation with customers Improve their competitive positions: customers direct the way in which we think, act and organise ourselves. We make every effort to deeply understand their business activities and logistic processes. This means we can provide solutions that truly help them to succeed and improve their competitiveness.

We’re aware that automated logistic solutions are at the core of our customers’ business operations. That’s why we take full ownership and accountability for the results to our customers. We feel empowered to leverage the broader skills and capabilities of our organisation to accomplish the desired customer results.

Drive to winWe never give up: we always put customers first. Our drive is to be the best that we can be. We live up to our sustainable profitable growth ambitions. We’re relentless. We don’t stop when we win an order, we only stop once we’ve completed the project and delivered excellent life-cycle services to the customer’s total satisfaction – in a win-win situation.

Every day better Continuously learn, develop and innovate: we encourage people to develop themselves professionally and personally. We continuously look for feedback and put any lessons we learn into practice to improve our performance. We embrace change

as an opportunity to improve our business. We embrace one way of working and recognise the benefits this brings to both our customers and our global company.

OwnershipTake personal responsibility: we take full responsibility for our own performance and results. We proactively take the initiative to achieve great results and maintain a positive attitude towards our stakeholders.

Team playTeamwork drives excellent performance: 1+1=3. We implement projects and provide services in teams, comprising a wide variety of disciplines, departments and nationalities. Together we ensure superior results. Within teams, we address conflicts openly and respectfully. We always put team objectives above individual interests. We build teams with the right mix of skills and expertise, and effectively engage and empower them towards a common goal.

We carePeople, planet and profit: as a key principle, we are committed to the triple bottom line of people, planet and profit. People – we care for the wellbeing of our people and treat each other with trust and respect. Planet – we care for our planet by designing products and solutions that minimise the negative impact on the environment and by reducing our ecological footprint. We take our social responsibility seriously. Profit – we acknowledge that sustainable profit is an imperative to safeguard the future of our company.

Safe baseTrust-based and safe working environment: we create a working environment in which employees are encouraged to speak up and admit mistakes. We listen and are open to the opinions of others. A safe working environment is our highest priority – especially on site – for our own staff and business partners. If something can’t be done safely, then we don’t do it at all! We enforce this together.

Page 10: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY202010

About Vanderlande

RELIABLE

CONNECTED

SUSTAINABLEINNOVATIVE

CUSTOMER-CENTRIC

Brand valuesOur brand values relate to the way in which we communicate with the outside world. They represent us externally and express how we want our customers to perceive us. Our brand values are how our customers define their experience of working with us.

Brand values predominantly exist in the minds of people and are an accumulation of facts, experiences, feelings, emotions, thoughts and perceptions.

The Vanderlande brand is shaped by the way in which our staff act and how we communicate. Our brand values become more tangible as people become increasingly aware of Vanderlande – they’re how our customers experience us when interacting with Vanderlande.

ReliableOur proven track record shows our trustworthiness and ability to deliver certainty, as these are of paramount importance to our customers. By going that extra mile and never giving up, we shape our solutions, knowledge, technology, service and staff. We’re also honest, open, transparent and ethical in our financial affairs and corporate conduct.

Customer-centricOur focus on customers provides us with an in-depth understanding of their business activities. As a reliable partner, we work as ONE team to deliver value-added logistic process automation on a global basis. This approach not only exceeds our customers’ expectations, but it also allows them to differentiate themselves and stay ahead of their competitors.

InnovativeContinuous innovation and development are at the forefront of our minds so that we can optimise our customers’ processes and competitive positions. We are applying new technologies, which are becoming available at an ever-increasing rate to add value to their businesses. Our extensive R&D knowledge results in flexible, reliable and efficient integrated solutions.

SustainableWith a long-term view on sustainability as a key principle, the triple bottom line commitment to people, planet and profit is at the heart of our culture.

ConnectedWe believe that people buy from people. Working together as a skilled and dedicated team, we make a difference by connecting to our customers in every conceivable way, conceptually, culturally, geographically and virtually. It is this commitment that distinguishes us from the competition and reinforces our drive as a reliable partner for moving our customers’ businesses forward.

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Vanderlande Sustainability Report FY2020 11

Customer centres and o�cesSo�ware housesManufacturing sites

> Delivered in more than 100 countries> Located in 28 countries

France

UK

Germany

NL (HQ)

Italy

Spain

Poland USA

Canada

India

Brazil

Argentina

Russia

China

Chile

Mexico

Colombia United Arab Emirates

AustraliaSaudi Arabia

Singapore

Malaysia

Norway

Switzerland

South Korea

Oman

RomaniaBulgaria

About Vanderlande

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

Vanderlande’s core focus remains project-based and it accepts full responsibility for the supply of materials to these projects. In addition, the company is committed to reducing its environmental impact and it proactively seeks ways to lower both its logistics

and transportation costs. In addition, it has organised its supply chain as efficiently as possible in response to international growth, and retains three dedicated centres in Europe, North America and Asia.

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

Page 12: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company
Page 13: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Sustainability ambition

Page 14: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY202014

Sustainabilityambition

The development of a sustainable society is one of the greatest challenges facing us in the 21st century. Increasing life expectancy and the continued growth of the global population have put pressure on the use of natural resources, the escalating levels of carbon dioxide and social and equality issues around the globe. Everyone has to work together in order to meet these global challenges with effective solutions.

Sustainability and corporate responsibility are integrated into Vanderlande’s core values and the company’s commitment to the triple bottom line. Conducting business responsibly is a foundation of the company’s values and critical for its business success.

Vanderlande’s vision and purpose embodies the breadth of what the company aims to do. It has set three long-term ambitions and key global strategic drivers on sustainability, and strives to challenge itself to perform better every day and differentiate itself from competitors. These are: establishing a healthy and fair society; respecting the natural capacity of our planet; and establishing a circular-based economy.

The three drivers translate to Vanderlande’s pillars of sustainability – people, planet and profit – which have been rooted to the core of the company’s strategy for several years.

1. Establishing a healthy and fair society > PEOPLE.2. Respecting the natural capacity of our planet > PLANET.3. Establishing a circular-based economy > PROFIT.

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

We believe that by embracing sustainability – and making this an integral part of our business and people – is the only way to have a strong profitable business, to contribute to the protection of our planet and take care of our people. Although there are many challenges ahead, Vanderlande is making considerable progress on its performance in sustainability and has set itself clear targets. With the knowledge, skills and enthusiasm of employees and partners, it will succeed in achieving significant results. More information about the goals associated with Vanderlande’s pillars for sustainability can be found in the ‘corporate governance’ section.

Sustainable Development GoalsFor the first time, Vanderlande’s sustainability report is explicitly cross-referenced with the United Nation’s Sustainable Development Goals (SDGs). These are collective goals that aim to support nation states in achieving inclusive and sustainable prosperity. We have identified ten of the 17 SDGs as of particular importance to our business. Vanderlande has committed itself to a vision of becoming the worldwide leader in sustainable automated logistic solutions, and so we have taken on board the SDG priorities.

Establishing a circular-basedeconomy

Circular solutions

IT security anddata privacy

Corporategovernance

Respecting the natural capacity of our planet

Establishing ahealthy and fair society

Health and safety at work

Design safety and ergonomics

Employee developmentand training

Employeeengagement

Energy use products and systems

Quality, reliability and performance

Responsiblesourcing

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Vanderlande Sustainability Report FY2020 15

Sustainabilityambition

Establishing a circular-basedeconomy

Circular solutions

IT security anddata privacy

Corporategovernance

Respecting the natural capacity of our planet

Establishing ahealthy and fair society

Health and safety at work

Design safety and ergonomics

Employee developmentand training

Employeeengagement

Energy use products and systems

Quality, reliability and performance

Responsiblesourcing

“Our vision is to be the

worldwide leader in sustainable

automated logistic solutions.”

Page 16: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY202016

Materiality assessmentIn sustainability reporting, ‘materiality’ is the principle that leads to the identification of topics which are sufficiently important to report on. A ‘materiality assessment’ is an exercise in which different stakeholders are asked to gather insight on the relative importance of different topics as regards economic, environmental and social impacts.

Vanderlande regularly assesses its economic, environmental and social impact in order to provide a strong foundation for sustainability and corporate responsibility priorities. This is a central component of analysis for strategy, target setting, and reporting. Vanderlande’s previous materiality assessment was held during the development of the FY2018 Sustainability Report. For FY2020, we have reviewed the relevance of the topics identified in FY2018, which helps us to give clarity to the areas upon which we should place the greatest focus.

The assessment is carried out on a biennial basis and serves two purposes: it considers Vanderlande’s impact on sustainable development (economic, environmental and social); and it considers the feedback of various stakeholders to determine how relevant these topics are for Vanderlande’s business success.

This activity begins by reviewing the topics identified in the previous assessments (baseline). As part of integrating sustainability and corporate responsibility into the business segments, we conducted topic assessment workshops with different business areas and stakeholders in 2019. The stakeholders included representatives from employees, customers, suppliers, local communities, government organisations and industry bodies. A consolidated outcome from the workshops was presented and approved by Vanderlande’s Board of Directors.

Each significant topic is described in this report and all topics have been categorised based on the three pillars of sustainability: people, planet and profit.

The significant topics identified for the FY2020 report are shown and highlighted in the top-right section of the ‘materiality matrix’, as the issues that fall above the materiality threshold for the purpose of this report. Topics below the threshold are considered as non-material. Some non-material topics will be touched upon in the report where there are overlaps or relevancies of context.Working with the materiality matrix enables us to focus on the areas where we can have the greatest positive impact, determine any gaps, and identify emerging issues and new leadership opportunities for our business. We have set strict targets to each of the material topics deemed important by our stakeholders.

Information about the issues covered by our materiality matrix, including their definitions and corresponding GRI disclosures, can be found in the GRI content index.

Sustainabilityambition

Suppliers Other stakeholders

Employees Customers

Vanderlande’s stakeholders

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Vanderlande Sustainability Report FY2020 17

Relevance for Vanderlande’s business successRele

vanc

e fo

r the

eco

nom

ic, s

ocia

l and

env

ironm

enta

l im

pact

s (su

stai

nabl

e de

velo

pmen

t)

Minor Medium High Major

Min

orM

ediu

mH

igh

Maj

or

Energy use: manufacturing and shipping

Waste management

Responsible sourcing

Water management

Energy use:facilities and

business travel

Energy use: products and

systems

Sustainable product design

Equal opportunity and diversity

Employee engagement

Supporting local

communities

Employee development and training

Health and safety at work

Design safety and

ergonomics

Corporate governance

Quality, reliability and performance

IT security and data privacy

Transparency, accountability and reporting

Legal compliance

Circular solutions

Customer-driven solutions and engagement

Bribery, corruption andbusiness ethics

Vanderlande materiality assessment FY2020Sustainabilityambition

“Vanderlande actively encourages

its stakeholders to join forces in

the realisation of common goals.”

Page 18: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Establishing a circular-based economy

Page 19: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Corporate governance

Page 20: Sustainability Report FY2020 · Company profile Vanderlande is the global market leader for value-added logistic process automation at airports, and in the parcel market. The company

Vanderlande Sustainability Report FY202020

Corporate governance

Today’s global challenges such as climate change, economic growth and social inclusion, environment and natural resources security, and gender equality (among others) are important drivers – not only for organisations to define how to conduct their business but for society as a whole, since each part plays an important role within it. Our corporate governance addresses these challenges within our business by integrating them into our strategy and ensuring that they cascade to all organisational levels through our strong leadership and committed employees.

UN SDG goal 16 focuses on strong institutions on a global level. We believe that within Vanderlande this goal translates into creating a strong governance. Leading by example and acting correctly and responsibly paves the way towards a more fair and equitable society. Additionally, we believe that governance is about supporting and empowering employees and that effective leadership, transparency and delivery of high standards form the basis of Vanderlande’s success.

These are the key factors to embed sustainability throughout our decision-making process and provide a strong foundation for meeting increasing societal demands and to sustain our long-term future. Corporate governance creates drive, motivation and opportunities to work on the challenging topics that matter both for our organisation and society.

Our impactWe depend on society, but we also have our own role to play. This role is more than just financial and economic. We recognise the role of being a responsible company, having an impact on customers, employees and suppliers, as well as the environment and communities in which we operate. Additionally, the way we operate has an effect on all our business entities in both the short and long term. This is why we are committed to conducting business in a lawful, fair and honest way, and firmly believe that corporate responsibility must be integrated in both our strategy and day-to-day operations.

Our business model focuses on improving the competitiveness of our customers through value-added material handling solutions. Cooperation with all of our main stakeholders not only enables our business to expand, but also for us to support them in contributing to sustainable development in the future. The driving forces behind sustainable development at work are a healthy and fair society, respect for the natural capacity of our planet and the need to establish a circular economy.

Our structure and approachOur sustainability organisation is still growing, spreading with new roles and sustainability champions across our business globally. Vanderlande aims to have empowered and committed people; therefore all employees are expected to act as role models and everyone is expected to maintain the highest standards. At the most senior leadership level, the CTO is responsible within the Board for sustainability and oversees all relevant policies and programmes. Our corporate governance guides our business through a set of corporate policies that are translated into programmes and projects in all of our business segments, which guide our empowered employees into achieving our ambitions and defining our long-term sustainability goals.

Additionally, Vanderlande has published its vision, with three high-level key drivers for achieving a sustainable society.

CEOR. Brunschwiler

CTOF. van Dijck

MD AA. Manship

MD WPT. Verkuijlen

COOR. Brunschwiler a.i.

CFOH. Molenaar

CPOR. Lamberts

> Global Services> Marketing and Communications

> Systems> R&D> Sustainability

> Sales> Project Execution> Services

> Sales> Project Execution> Services

> Operations> Supply Chain> Manufacturing> PG Beewen> PG Robotics> PG Smatec> PG Dinamic> Health and Safety

> Finance and Control> Legal> ICT and Quality

> Human Resources> Vanderlande Academy

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Vanderlande Sustainability Report FY2020 21

This vision is translated into the pillars of sustainability (people, planet and profit). Our core values define the ONE culture of Vanderlande and they will remain true at all times. They guide our behaviour and culture and are the basis for our future success and our approach to sustainability.

Our approach towards a healthy and fair societyEstablishing a healthy and fair society is a fundamental necessity that drives sustainable development. We are in a ‘people’ business, which is reflected in our slogan: ‘In a world of technology, a belief in people’. Eradication of poverty, ending hunger, securing clean water and sanitation for everyone, respect for human rights, honest working relations, prevention of bribery and corruption are all global issues that must be correctly addressed in order to support a fair and equal society. Vanderlande incorporates many of these issues into its principles and way of working, and believes that establishing a healthy and fair society is a fundamental need that applies not only to employees, customers and the global community, but also our suppliers. A good business strategy is at the heart of our approach.

Doing ‘good business’As a global organisation that takes its responsibility seriously, we are committed to using the potential of our worldwide network to actively contribute to global sustainability goals. This is why in April 2018, Vanderlande started its ‘good business’ programme to strengthen our compliance management. The reason for calling it ‘good business’ is that Vanderlande considers conducting business in an ethical way to be a normal part of its activities.

As part of this programme, we have created new policies for fair competition, third-party screening, document retention, gifts and hospitality, and export and import policies. We have set up global mandatory ‘good business’ e-learning programmes and classroom training to ensure that all employees spend at least 30

minutes a year learning about ‘good business’. Consequently, in FY2020 we released e-learning courses in GDPR, fair competition and information security. Alongside these courses, around 1,000 employees in commercial and financial positions have followed a 90-minute ‘good business’ classroom-based workshop.

We also established and rolled out a ‘whistle-blower’ system through which employees and third parties can report ethical issues and concerns anonymously through dedicated channels. Issues and concerns are reported to the Corporate Legal, Risk and Good Business departments and investigated if needed. To ensure the high quality of our good business initiative, we have benchmarked our programme in accordance with the Department of Justice (DOJ) guidelines for compliance systems (around 95% compliant). Alongside the good business strategy, other programmes which contribute significantly to creating a healthy and fair society in relation to our teams and stakeholders are ‘Stay Safe’, ‘People First’ and ‘IamVanderlande’.

Safety is at the heart of Vanderlande’s business and is one of our core values. Our ‘stay safe’ principle endorses this and does not allow anyone to work in an unsafe manner. This is also reflected in our slogan regarding safety – ‘if you can’t do it safely, don’t do it!’. Our global HSE Policy has been updated and Life Saving Rules have been launched globally to highlight the importance of this subject and principles to be followed. More information can be found in the ‘Health and safety at work’ section.

Each person that performs an activity on behalf of Vanderlande has an important value to our business and deserves decent working conditions. To build, support and maintain high-performing, engaged employees and teams within Vanderlande, the company launched its ‘People First’ strategy in 2019, in which the main pillar is ‘Meaningful alignment and engagement’. Also in 2019, a global initiative maintained and executed by our engaged employees was started. ‘IamVanderlande’ is a platform that encourages and enables employees to create and participate in communities that provide enjoyable, challenging and inspiring experiences.

Corporate governance

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Corporate governance

Through active engagement and training, the company also develops an environment in which its employees can continually learn and develop themselves, where we strive to offer an industry-leading employee experience. We believe that our workforce should reflect both the global nature of our business and the diversity of our customers and end users. Our company regulations include a clear statement on equal employment and opportunities for all.

More information can be found in the ‘employee engagement’ and ‘employee development and training’ sections.

Our approach towards establishing a circular economyEconomic growth has led to an increased consumption of resources, waste, pollution and climate-impacting activities - all putting great pressure on our ecosystems. By accelerating the circular economy, the use of raw materials is reduced, less waste and emissions are generated, and the use of resources is optimised.

Vanderlande is committed to establishing a circular economy by developing circular services and products, and supporting initiatives that help to accelerate this approach. However, accelerating a circular economy cannot be achieved in isolation, and having a responsible supply chain and committed partners is pivotal in this transition.

For this, the company encourages the sharing of its knowledge and expertise with partners and stakeholders, and this is why Vanderlande is participating in the Platform for Accelerating the Circular Economy (PACE) – a public-private collaboration co-chaired by the CEO of Philips, and the heads of the Global Environment Facility and UN Environment. More information can be found in the ‘circular solutions’ section.

Our approach towards respecting the natural capacity of our planetIt is evident that our ecosystems are becoming increasingly stressed by climate change and as a result, an increased risk of floods, droughts and other natural phenomena have been strongly connected to global warming. Important decisions, such as the UNFCCC Paris Climate Agreement, have driven companies to collaborate towards establishing a low-carbon economy and, ultimately, protecting our planet. ‘We care’ is one of the company’s core values, as we are committed to designing solutions with an improved environmental performance, and to understanding how our business activities can impact on the environment and the part they play in resource availability, waste, energy use and climate change. The company is also dedicated to reducing its energy use, and continuously engages with its customers on a range of initiatives to achieve this.

To respect the natural capacity of our planet, we have gone on board with Toyota Industries Corporation’s Environmental Vision 2050, where we aim to contribute to a low-carbon society through becoming a ‘zero carbon company’ and minimising the carbon emissions of our solutions. Our ambition is also to make an efficient use of resources by striving to eliminate waste, both within our global processes and our projects at customer sites. To support this, the company has been improving its environmental and energy performance through management systems certified by well-known international standards such as ISO 14001 and ISO 50001.

Externally, we collaborate closely with our customers, like-minded front-runners, and other stakeholders to drive towards a low-carbon economy and the optimal use of our systems and products. We expect that our suppliers will ensure that manufacturing processes are environmentally responsible. These expectations are translated into our Code of Conduct. More information can be found in the ‘energy use: products and systems’ and ‘responsible sourcing’ sections.

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Corporate governance

Continuous improvementAs a global organisation that is committed to contributing to global sustainability goals, we challenge ourselves by setting ways of working and applying specific tools or assessment methods that help us endorse our responsibility towards a more fair and equitable society, and to ensure that we are on the right track towards our strategy.

Sustainability and corporate responsibility principles are implemented in Vanderlande’s business and brand values. The company believes in transparency and has decided to report on its sustainability and corporate responsibility performance in accordance with the globally recognised Global Reporting Initiative (GRI) which enables our stakeholders to make informed decisions about the company’s performance in this area. Another important tool adopted by Vanderlande to assess how its activities with regards to responsible sourcing are performing against environmental, social, and ethical topics is EcoVadis. This is one of the world’s leading platforms for environmental, social and ethical performance ratings for global supply chains. At all times, Vanderlande aims to set a good example and display faultless ethical behaviour, supported by its partners, and guided by clear frameworks and codes of conduct.

For our own activities, achievements on environmental and energy matters are expressed through our ISO 14001 (environmental management system) and ISO 50001 (energy management system) certified units. For example, some improvements in terms of CO2 reduction due to our energy savings initiatives where ISO 50001 has been implemented are: more efficient LED lighting in various buildings in our headquarters; the installation of additional solar panels on our new building and parking garage; and replacement of devices such as gas boilers and gas heaters, for more energy efficient ones. These initiatives have led us to reduce (in FY2019) 3.66% of CO2 eq. in comparison with FY2018, meeting the target to reduce our internal CO2 emissions by 2% yearly.

Impact on SDGsUN SDG goal 16 focuses on strong institutions on a global level. We believe that by having a strong network, Vanderlande can promote proactive cooperation between multiple partners, both locally and globally. This will also help the company to achieve its sustainable ambitions, as well as meet the increasing demand for effective corporate governance.

Specific SDGs8.2 – Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.8.4 – Improve progressively, through to 2030, global resource efficiency in consumption and production. 9.5 – Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries.16.b – Promote and enforce non-discriminatory laws and policies for sustainable development.

Actions beyond 2020Align global KPIs with the GRI standards.Have the HQ ISO 14001 certified before the end of 2020.Improve EcoVadis rating: bronze to gold by the end of 2022.Embed the long-term sustainable ambitions and goals within all business units.Create tailored business ethics and compliance e-learnings per target audience on top of the one-size-fits-all e-learnings.Execute operational audits on high-risk areas to ensure good business.

What we said we would do What we didSet long-term sustainable ambitions and goals (2030 and 2050). Our Board of Directors has defined our ambitions for people, planet,

and profit, which continue to evolve.Improve EcoVadis rating: bronze to gold. Vanderlande received a bronze rating from EcoVadis in 2020. We will

set an action plan to strive for gold in 2022.

Achieve ISO 14001 at the company’s HQ. A steering committee and working group were defined to deploy ISO 14001 at HQ. Management systems and activities are in progress. The certification audit is planned for October 2020.

Develop integrated organisational approach and roles. Vanderlande is organised on sustainability with the CTO as its Board representative. The initiatives for sustainability are steered by a Sustainability Committee led by the CTO.

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Establishing a circular-based economy

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Circular solutions

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Circularsolutions

The demand for material handling solutions in the airports, warehousing and parcel sectors has been soaring in recent years due to an expanding global population, online purchasing, and increased passenger flights. This demand has led to an increased consumption of resources, and a rise in waste, pollution and climate-impacting activities, which all put pressure on our ecosystems.

Establishing a circular-based economy is one of the three main vision drivers of Vanderlande. In a circular economy, the utility and value of products, parts and materials are kept at their highest throughout their entire life cycle. For Vanderlande, this means a paradigm shift from ‘taking, making and disposing’ to a circular model of ‘making, using and returning’ where activities related to service, upgrades, parts recovery and recycling keep the products at their highest value.

By accelerating the circular economy, the use of raw materials is reduced, less waste and emissions are generated, and the use of resources is optimised. We are convinced that by designing our products and services in line with circular economy principles, we can reduce risk and create business opportunities that further enable Vanderlande’s sustainable development. The Energy Transition Commission (ETC) estimates that moving forward with a circular economy could reduce CO2 emissions from the plastics, steel, aluminum and cement industries by 40% globally.

Among our stakeholders, circular solutions is the highest ranked topic in our materiality assessment. Circular solutions encompass the initiatives Vanderlande has taken to increase its capabilities and knowledge to ‘close the loop’.

As a highly vertically integrated company, where we design, produce, integrate, install, manage, service, upgrade and expand our products, we have many opportunities to keep a high value for our products and extend their life cycle. This is why we have a large influence on enabling a circular-based economy with the right business model approach.

Our current approachMost of our products and systems are composed of a fixed structure, combined with moving parts that wear over time, and motors and sensors that are subject to regulation and are sensitive to innovation. This makes our products highly suitable for repair and repurposing. As Vanderlande moves towards more ‘service-based’ business models, we are becoming increasingly motivated to manage the complete life cycle of our assets.

Besides maintenance, we have set up a robust organisation to provide life-cycle services for our solutions, ranging from a regular supply of updated software and hardware, to data-driven solutions that allow our systems to increase their performance, and extend their longevity. By increasing the longevity of our systems, we reduce the need for new resources to manufacture new assets.

The transformation of our organisation towards a service-intensive company has allowed us to generate over 20% of our revenue from life-cycle services. Given our position in the middle of the value chain, we see it as our responsibility to collaborate with our supply chain, customers and third parties to evolve towards circular systems.

Designing for a circular economyProduct design touches the core of Vanderlande’s business as we strive for optimal sustainable design solutions. Sustainable product design was reported as a separate topic in FY2018, but as we move towards a circular economy, we have been changing our language from ‘sustainable design’ to ‘circular design’, which is why we include this topic within circular solutions.

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Our design principles for a circular economy

Design for serviceWhen we design a product, we consider that it must be easy to repair, maintain and access.

Design for durability We avoid using parts that require frequent replacement or repair.

Design for disassemblyWe use standarised/common industry connections in our products that allow for easy disassembly.

Design for recycling We minimise the number of parts of our products, and make them easily separable.

Design out waste We strive to use less resources to make our products.

Design based on sustainable materials We eliminate hazardous substances from our designs, and explore the use of recycled and renewable materials.

Design for minimal resource use We strive to design efficient products during their use phase (with a low energy consumption).

Design for the futureWe add sensors and diagnostic intelligence to our products to track their life-cycle performance and operability.

Circularsolutions

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Circularsolutions

How a product is designed determines 80% of its impact throughout its life cycle, including energy consumption, the materials it is made of, and its potential for repair, refurbishing and recycling. A circular design considers all of these issues, and as such, we have created guidelines within our R&D department and shared them with external partners to accelerate the implementation of these circular design principles.

For example, in 2019 we started to redesign the trays of our automatic case picking (ACP) system so they are made from 100% post-consumer plastic. Through this initiative, we expect to replace over 250,000kg of virgin plastic during the next two years.

Platforms: pivoting for the circular economyWithin Vanderlande, the optimal use of resources is key within the development and production process. This includes a smart product design, the right choice of materials and an efficient use of the deployed substances. This is why within all of our market segments, we have made important steps in standardising our solutions with what we call ‘platforms’. Through these, we are moving from an engineering-to-order to a configure-to-order approach using standardised blocks.

This has been proven to lower the time and impacts related to production, procurement and installation, and to simplify a product’s life-cycle management. By having a lean product life-cycle management with standard building blocks, our products become easier to repair and service. Furthermore, it will lead to the introduction of standard continuous improvement processes and services, and quicker development cycles.

Circular business modelsBusinesses are becoming increasingly driven to face the societal and environmental challenges of the 21st century. We have seen the emergence of a different type of customer who is interested in new business models, driven by access and performance rather than ownership. This is driving a change in how we do business with our customers, where the total cost of ownership (TCO) of a solution is considered alongside its environmental impacts.

Since 2018, we have led workshops with different customers and stakeholders to establish circular business models and create win-win situations for Vanderlande and our customers, while upholding the circularity principles. In this period, we learned valuable lessons about the do’s and don’ts in terms of creating awareness and acceptance of circular business models in the airports market.

Our front-runner in the circular economy: FLEETSince the development of FLEET, Vanderlande has taken bold steps towards the development of circular business models. FLEET is a flexible logistics solution that replaces the need for fixed conveyors and sorting systems. By utilising autonomous vehicles, FLEET enables new business models and consumes up to 50% less energy compared to traditional baggage handling systems.

The design of the solution is led by circular design principles, meaning that it has been designed to be easily repaired, maintained, upgraded, repurposed and recycled. FLEET has been successfully tested on three different continents, and new product and business concepts are also being developed for the solution.

Extracting raw materials

Extracting raw

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Parts supply

Manufacturing

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Service

Service

RefurbishRefurbish

Parts recoveryParts recovery

Recycle Recycle

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The future of circular solutionsThe current development of the world’s technologies has made circular solutions simpler to realise. The emergence of big data and the great power of today’s processors has transformed the manner and scale in which problems can be solved and how data can be used. For instance, systems can learn by themselves to become self-optimising, or predict if a failure is going to take place. This is why we have created new teams within R&D to explore new technologies and how data can be used to leverage the highest value from our products throughout their life cycle.

Collaboration towards a circular economyOur vision and initiatives on sustainability are compelling but cannot be achieved in isolation. We collaborate closely with our customers, like-minded front-runners, and other stakeholders such as academia, to drive the adoption of circular thinking. This is why we have joined other industry leaders in the Capital Equipment Coalition as part of the Platform for Accelerating Circular Economy (PACE), a public-private collaboration co-chaired by the CEO of Philips and the heads of the UN Environment.

Over the past three years, Vanderlande has gathered with its coalition partners to exchange best available practices and discuss market barriers affecting the successful transition to a circular economy in the capital equipment industry. As a result, three reports have been written and released at the annual meetings of the World Economic Forum in Davos (2018, 2019 and 2020). The latest report highlights the coalition’s best practices in design, procurement, and sales and marketing to accelerate the circular economy.

Transitioning into a circular economy and measuring its impacts is a challenging task that requires a broader view than the industry knowledge we have as a company. This is why, since

2017, we have been partnering with the Innovation, Technology Entrepreneurship and Marketing (ITEM) group of the Eindhoven University of Technology to develop tools for circular business models and circular product design in the material handling industry. We have executed various projects in sales, business model design and commercial management, in which we have included the perspectives of our customers and other stakeholders.

Reverse logisticsSince 2013, Vanderlande has been closing the loop on its procurement activities through its Reverse Logistics office, aiming to minimise waste by reusing procured equipment that was left unused after the execution of projects. Reverse logistics enables the management and recovery of the materials, parts and products from project sites, and their transportation to our European Supply Chain Centre in Veghel (The Netherlands) for future use.

Circularsolutions

€ -

€ 200,000

€ 400,000

€ 600,000

€ 800,000

€ 1,000,000

€ 1,200,000

€ 1,400,000

€ 1,600,000

€ 1,800,000

€ 2,000,000

FY 2014 FY 2015 CY 2016 FY 2018 (15months)

FY 2019 FY 2020

Reverse logistics: recovered valueReverse logistics: recovered value

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Circularsolutions

Since 2016, reverse logistics has returned materials to projects, test centres, manufacturing sites and suppliers (among others), with a yearly total recovered value greater than EUR 1 million. Starting in 2018, we have focused on optimising and digitalising the processes with which our Reverse Logistics team operates, along with integrating its activities closer to the activities of our manufacturing facilities and our Purchasing department. Thanks to this integration, we are transforming our Reverse Logistics office into the ‘go-to’ place for any party that requires parts or materials, rather than purchasing new ones. This proactive integration has led to an almost doubling of the reversed value and profits of FY2020.

Impact on the SDGsDeveloping and applying circular solutions has impacts on various facets of the UN’s SDGs. The main driver of a circular economy is decoupling the economic growth from environmental degradation by ‘doing more and better with less’. With circular solutions, economic value is created while reducing resource use, degradation and pollution throughout the life cycle of our solutions. Accordingly, a reduction in the material and carbon footprints of our solutions leads to a positive impact against climate change.

Specific SDGs8.4 – Improve progressively, through to 2030, global resource efficiency in consumption and production, and endeavour to decouple economic growth from environmental degradation.9.1 – Develop quality, reliable, sustainable and resilient infrastructure.9.4 – By 2030, upgrade infrastructure and retrofit industries to make them sustainable.12.2 – By 2030, achieve the sustainable management and efficient use of natural resources.12.5 – By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.12.6 – Encourage companies, especially large and transnational companies, to adopt sustainable practices.13.3 – Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

Actions beyond 2020Implement lean principles in the Reverse Logistics office.Enhance the integration between reverse logistics and the traditional supply chain.Enhance awareness of circular design principles among product designers.Continue to expand our platforms as the way of working in Vanderlande.Explore the use of automated guided vehicle technologies in different business segments.Explore the use of circular business models in the warehousing and parcel markets.

What we said we would do What we didCreate plan for customer engagement on circularity. We have led workshops with various key accounts in the airports

market to co-create circular business models.

Secure three pay-per-use customer contracts. We have secured three joint-innovation programmes with customers in the airports segment to accelerate the development of circular business models.

Keep reverse logistics value above EUR 1 million. The recovered value of our reverse logistics activities in FY2020 was above EUR 1.7 million.

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Circularsolutions

Presentation of FLEET at the Inter Airport Europe exhibition in Munich

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Establishing a circular-based economy

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IT security and data privacy

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IT security and data

privacy

The world has seen recent trends of the fourth industrial revolution evolving, such as artificial intelligence (AI), the Internet of Things (IoT), big data and robotics. These trends have led to major transformations in Vanderlande, where we become a more digitised company, in which our solutions become more digital every day. As a company, we are moving away from installing isolated systems to delivering solutions where interconnectivity is key. Therefore, as the global exchange of data increases, we are being forced to take technical and operational measures to cope with new risks and regulations, as we become more vulnerable to cyber attacks, identity theft and unencrypted data.

Information security and the protection of personal data focus primarily on maintaining the confidentiality, integrity and availability of information, while respecting an organisation’s operations. As the value of information we handle and the capabilities of threats increase, information security and privacy have become issues of national importance globally and a key consideration for operations in information and communication technology (ICT).

Vanderlande has a responsibility to protect the integrity of its systems, along with the data of our customers, stakeholders, employees and suppliers, and to respond to the global increase of the threats of data breaches with proactive solutions, as well as technical and organisational measures. As a result, our focus is on enhancing our own IT and data security while helping our customers do the same.

Data privacyThe nature of Vanderlande’s solutions requires us to use huge volumes of cross-border data flows every day, both internally and at our customers’ sites. We have invested significantly in our data protection management system, which aims to protect the rights of our employees, customers, suppliers and business partners to privacy in line with the new European General Data Protection Regulation (GDPR). Since its introduction in the EU in 2018, Vanderlande expanded its focus on data privacy together

with a more stringent level of internal security. For this purpose, a dedicated IT Security and Data Privacy Office reporting directly to the Chief Information Officer (CIO) was introduced, whose manager is responsible for covering the role of Chief Information Security Officer (CISO). The office consists of various IT Security and Data Privacy experts and a certified Data Protection Officer (DPO) with access to a global community of DPOs. This allows Vanderlande to gain insights about best industry practices and understand the position we are in today.

Existing policies, internal structures and training materials have been updated to reflect the new requirements, including data subject rights to access, rectification, erasure and portability of data, and breach notification mechanisms. Data-processing activities have been placed in a common register, providing a proper overview of all processes in Vanderlande that cover personal data management. As a result, Vanderlande’s Information Security Management System (ISMS) is certified to ISO/IEC 27001 in its headquarters, and as of 2019, Vanderlande has not received any substantiated complaint concerning any breach or loss of a customer’s data.

IT securityVanderlande’s systems are installed all over the world, and due to the nature of our products, these may remain installed in our customers’ sites for decades. With the increased connectivity of our systems, a decade(s) old system in our installed base can become susceptible to countless threats. Many cyber security best practices rely on the ability to keep systems and components up to date to protect them against newly discovered threats and vulnerabilities. Even when we create the most secure solution today, it is only a matter of time before it becomes vulnerable due to new developments in cyber security threats.

All in all, the cyber security threats to industrial systems are increasing. As a result, we have been strengthening and professionalising our external IT security by extending the scope of our ISO/IEC 27001-certified ISMS, setting up a process

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based on the IEC62443 standard, including a security-by-design framework, continuous improvement projects and proactive risk assessments (for instance, based on ethical hacking). This process is being led by an IEC62443-certified IT Security Officer.

Vanderlande’s focus on IT security isn’t limited to the products we design. As an integrator, we are greatly dependent on our supply chain. This is why we are in a constant dialogue with the suppliers of the components used in our solutions, who have been increasingly providing items that are already certified as IEC62443 secured, or are working towards that certification.

As IT security and data privacy are relevant topics for Vanderlande as a whole, the IT Security and Data Privacy Office has partnered with the Vanderlande Academy to develop training material to increase awareness throughout the organisation. During 2019, we launched new e-learning and training material on personal data protection in line with GDPR, in order to increase the awareness of our workforce and their competence on the regulatory environment on the matter.

The training is available and compulsory to all employees globally. By the end of 2019, we achieved a 75% completion rate. A new introductory course on the basics has also been developed in 2020, and future detailed training material will be available for specific competence owners.

‘Be Aware’ campaignIn 2018, the IT Security and Data Privacy Office launched a company-wide campaign to raise awareness about IT and data security threats. Throughout this campaign, bi-weekly information, videos, and tips and tricks were shared with Vanderlande employees to raise IT security awareness about topics such as phishing, identity theft, social engineering and data breaches.

Impact on the SDGsFrom a technical, ethical, economic and legal point of view, IT security and data privacy are of great importance for Vanderlande. Delivering secure systems in a digital environment has important socio-economic impacts such as fostering digital innovation and making material handling systems safe, secure and resilient within cyberspace.

Vanderlande understands that IT security and data privacy has become a transnational matter where there is still a need for greater dialogue and cooperation among different stakeholders. As with data privacy, we believe that the fundamental elements of human rights must be safeguarded: privacy, ethics and respect for data sovereignty. This is why proper data protection measures have been put in place to prevent data misuse or mishandling.

IT security and data

privacyb Aware

Specific SDGs9.C – Significantly increase access to information and communications technology. 16.10 – Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements.

Actions beyond 2020Globalise the IT Security and Data Privacy Office’s way of working.Roll-out a security by design process for solutions, together with R&D.Expand ISO/IEC 27001 certification in Germany and the UK.Increase employee awareness on IT security and data privacy.Pave the way towards the IEC62443 certification for cybersecurity.

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Establishing a healthy and fair society

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Design safety and ergonomics

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Design safety and

ergonomics

Vanderlande’s solutions have a direct impact upon the health and safety of all of those who interact with them throughout their life cycle. The company’s material handling solutions inherently contain moving parts, heavy items and often involve the need to work at heights. Moreover, the increased automation levels, with higher speeds and capacities result in more complex systems with potentially higher risks. The way we design our products influences the way people work with our systems. Our design safety policies and procedures are managed by our Global HSE Office in conjunction with design competence teams, and applied in different design processes in R&D, engineering, sales and global projects.

Design safetyVanderlande has existed for more than 70 years. Throughout that time, we have become experts in designing products and systems that are safe. As such, it is also our responsibility to act correctly and influence safety standards around the world. For instance, some of our experts have participated in the committees of design standards such as NEN-EN 619 on continuous handling equipment for mechanical handling of units loads and NEN-EN 528 on rail dependent storage and retrieval equipment.

Our design safety standards are an integral part of our design processes, and as such, 100% of our designed products have followed safety review sessions, such as failure mode effect analysis (FMEA) and health safety risk assessments (HSRA). Residual risks for products, interfaces or standardised zones are made available for our project engineering department, which applies the necessary measures to avoid incidents or accidents such as fencing, safety covers and safety switches.

Risks from all products, ranging from human-interfacing robots, pallet cranes and automated guided vehicles (AGVs) are gathered at a system level for each individual project. Project design safety is a responsibility of the various engineering departments across the globe. In the past two years, we have created new roles for design safety experts in all of our business segments who work

alongside field quality experts. Their responsibility is to assess design safety issues at a field level, and centralise the findings with the Global HSE Office to set up improvement projects.

Physical and cognitive ergonomicsVanderlande has a dedicated team focused on user experience (UX) design, which encompasses human-system interactions. This team aims to improve the cognitive, ergonomic, physical and behavioural performance for humans at work when interacting with Vanderlande equipment. To this end, the team has deployed ergonomic evaluation processes based on the ISO/EN 1005-4 (safety of machinery – human physical performance) and ISO/EN 9241 (ergonomics of human-system interactions).

Technology for human safetyOver the past decade, Vanderlande has been deeply involved in the development of highly innovative ergonomic solutions, such as PICK@EASE and STACK@EASE. These have vastly decreased the physical stress for employees in executing tasks such as item picking or baggage handling.

In the past two years, the team has worked together with R&D to apply machine vision and machine learning to execute various ergonomic posture studies, where human poses and their interaction with the equipment during operations are being studied. New technologies have also been deployed to avoid incidents and accidents. For example, our AGVs from FLEET have been designed with safety scanners consisting of LiDAR (light detection and ranging) technology, in order to prevent collision with human operators.

Vanderlande has also been developing a CoBot (‘collaborative robot’) as a part of its Smart Item Robotics (SIR) solutions, where robotised handling devices work together with operators for order picking and infeed loading, reducing the required human effort and increasing the level of human-to-device interaction.Ergonomic posture analysis in our headquarters.

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Noise reductionMaterial handling systems have traditionally been known as being noisy, and we have undertaken various activities in order to reduce the noise levels of our equipment. Noise hazards can cause discomfort, loss of awareness, stress and tiredness, and some can even lead to permanent hearing loss. We have set up a Noise Expert team in R&D, focusing on creating knowledge and supporting design engineers in low noise equipment design.

This team has actively engaged with local universities and piloted technologies such as noise measuring cameras and innovative carrier and curve solutions. Together, HSE teams and product designers define other noise protection measurements, such as low noise wheels, frictionless drives, electrically driven belts or the addition of noise barriers.

Enhanced user experienceOur brand values ‘trendsetter’ and ‘best customer value’ lead to product experiences that exceed expectations. An example of this enhanced user experience can be seen in the sort-to-order ‘put wall’ innovation project.

The tested solution combines a light pointer and 3D cameras. This enables a flexible setup of the moveable put walls and resulted in a greater operator experience and significant improvement of pick performance. Improving performance (throughput), increasing operator satisfaction, eliminating failures and reducing operator training times are key performance indicators to our customers.

Design safety and ergonomics

Specific SDGs3.d – Strengthen the capacity of all countries for early warning, risk reduction and management of national and global health risks.8.8 – Protect labour rights and promote safe and secure working environments for all workers.

Actions beyond 2020Continue to optimise the user experience of our airports, and warehouse and parcel software platforms. Continue to embed UX in the organisation by making UX standards and guidelines available through a Vanderlande design system.Reduce the noise levels of our existing equipment.Develop and roll-out a safety design improvement programme for equipmentat height.Adopt new standards on product safety(eg EN 619:2019).

What we said we would do What we didImplement design safety process review. We have set up a decentralised review process where design

safety experts (DSEs) have been appointed in each of the business segments to review safety at a project level and create a feedback loop through a regular safety competence team meeting.

Redesign user experience of two major software products. We have redesigned the UX of our airports platform (VIBES) and warehousing platform (VISION) software.

Make 80% of our sales and technical organisations aware of the added value of user-centered design.

We have made progress in creating awareness of user-centered design projects, especially with the redesign of the VIBES UX. Awareness of the added value is also increasing but not yet at 80%.

Have user experience (UX) embedded in the organisation. The UX competence has been decentralised in the Technology group to provide a greater sphere of influence, and has become a compulsory topic in the onboarding training.

Vanderlande’s “put wall” concept

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Establishing a healthy and fair society

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Health and safety at work

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Health and safety at work

Creating a proactive health and safety culture drives Vanderlande’s reputation as a leading international employer and supplier. Additionally, people deserve challenging jobs with good prospects and a safe, healthy working environment in which they feel appreciated. Safety is a core value for Vanderlande and stands at the forefront of what we do, whether it’s designing products and systems or during our global work activities. Protection of our teams and stakeholders is paramount and fundamental to the continued growth and success of Vanderlande’s business. The key message is: ‘If you can’t do it safely, don’t do it!’

The company’s global operations involve a number of high-risk activities. Vanderlande’s aim is that every employee returns home safely, no matter where business takes place. It believes that safety incidents and occupational illnesses are preventable. The company is therefore committed to managing its activities to minimise adverse health and safety impacts, meet compliance requirements, eliminate hazards and reduce its risk profile. Vanderlande’s vision is to be recognised as a global industry leader in health and safety.

Our impactThe boundary of Vanderlande’s health and safety activities is driven by the scope of its global operations. This encompasses all locations around the world and includes work on Vanderlande’s own and third-party sites. This mainly involves the company’s customers, contractors and subcontractors, but can also extend to interactions with visitors, the general public and other parties. As an international company, it appreciates that cultural maturity/awareness and standards can vary, and are influenced by local legislation, customers, contractors and other parties, as well as the company’s own teams.

Global HSEVanderlande’s Health, Safety and Environment (HSE) strategy has been globalised since 2017. The Global HSE team reports directly to the Chief Operations Officer (COO) at Board level.

Our aim is to support compliance with legislation and lead an international approach by building a strong network of HSE managers and leaders, sharing information and best practices, aligning standards, and driving forward with improvement initiatives.

The company recognises the importance of its managers in implementing high standards. They are responsible for leading by example and providing adequate resources for the activities under their control. Influencing the behaviours of Vanderlande’s managers supports a proactive approach to the execution of critical safety activities and contributes to a health and safety culture that delivers these high standards, as well as minimising risk within our business activities.

Local HSEAt a local level, Vanderlande has a network of HSE managers throughout the company’s different geographical and project locations who share critical health and safety information and good practices to drive forward improvement initiatives. HSE managers and officers provide support to management and supervisory teams, by promoting a proactive health and safety culture, planning and supporting the implementation of health and safety requirements, communicating legal requirements and training needs, managing incidents and sharing best practices.

Vanderlande believes that health and safety is everyone’s responsibility. Line managers are supported by the HSE team and together they strive to implement safe systems of work in cooperation with employees, to minimise the risk of incidents and dangerous occurrences in the workplace. Teams are supported by health and safety representatives and committees who are elected at a local level. At operational sites, representatives/committees play a crucial role in ensuring strong health and safety communication, process development, and cultural engagement between the employees and management.

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Safety programmeVanderlande’s health and safety programme is focused on developing senior managers and line supervisors to actively engage with teams and stakeholders on an ongoing basis in order to promote good health and safety practices, core values and collaboratively solve problems regarding issues raised. Behavioural maturity in relation to health and safety can vary throughout its global operations and Vanderlande’s commitment is to maintain a strong HSE network to continually support the development and growth of local teams.

To continue to build an engaged health and safety workforce and create committed leaders, Vanderlande has deployed a global onboarding programme for all employees. This includes crucial health and safety elements such as Vanderlande’s ‘safe base’ principle, key organisational risk and control management, personnel and management of HSE responsibilities.

Vanderlande has a strong focus on implementing global improvement programmes aligned with the organisation’s key health and safety risks. Its current emphasis is to create global standardisation for the safety critical subjects of working at height and moving machinery. Vanderlande’s goal is to embed a single global way of working, and to provide specialist training and tooling to support its operations.

Achievements and continuous improvementVanderlande’s health and safety policy has been recently reviewed and translates its commitment in the continuous improvement of building a strong health and safety performance, and to meet its global contribution to a healthy, safe and fair society. Vanderlande has received both customer and industry awards and achieved certification in many locations as a result of its ongoing investment and commitment to health and safety in the workplace. These include:

> Singapore: Changi Airport – ConSASS – Construction Safety Audit Scoring System Certification

> Australia: OFSC Accreditation – Office of the Federal Safety Commission and successful certification to ISO 45001

> UK: RoSPA Health and Safety Award – overall winners of the ‘engineering sector’, successful certification to ISO 45001

> Turkey: Istanbul Airport – Vanderlande employee awarded as a ‘most successful safety specialist’ by the IGA top management on Istanbul’s third airport project

> Spain: Asepeyo (mutual of work accidents) – recognition of health and safety commitment and efforts at reducing the level of work accidents.

Some business units have received ISO 45001 external certification for the implementation of localised health and safety management systems in accordance with international standards. Others have ISO 18001, which will be upgraded on recertification.

Life-saving rules (LSRs)Vanderlande believes that having a global workforce that is educated and reminded about critical risks in the workplace is an important step towards creating a safer working environment. This is why – in 2019 – its HSE team globally launched the life-saving rules (LSR) programme.

It consists of 12 crucial rules to keep Vanderlande’s employees and stakeholders safe, everywhere, every day. The LSRs are available in more than 20 languages in the form of banners, posters, pocket cards and training modules. They have been well received by employees, clients and subcontractors, and used on sites globally.

As of 2020, all new employees receive onboarding training on the LSRs in the language of their choice. Due to its global operations, it is essential for Vanderlande that, regardless of different standards and legislation worldwide, there is a uniform understanding of how to work safely in high-risk activities. The LSRs promote this understanding.

Health and safety at work

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Health and safety at work

If you can’t do it safely, don’t do it!

Life Saving Rules (LSR)Working safely is a value for Vanderlande.

These 12 rules are in place to keep you safe!

6 12Personal Protective Equipment (PPE)

Electricity

5 11Mobile Phone Lift ing Operations

3 9Drugs / Alcohol Safe Work At Height

2 8Competence, Training and Procedures

Lock Out Tag Out (LOTO)

1 7Emergency Plan Permit to Work / Access

4 10Driving / Pedestrian Safety

Moving Machinery

Vanderlande’s 70th anniversaryIn 2019, Vanderlande celebrated 70 years of operations at the Veghel campus for all its employees and their families. This event was an opportunity for the HSE global team to promote the ‘stay safe’ campaign and communicate the importance of health and safety in the workplace and our homes in a relaxed environment. An interactive photo booth stand was set up where colleagues, families and friends could get together, dress up in personal protective equipment, use some workplace props and have their photograph taken in front of a variety of Vanderlande backdrops.

The event was an opportunity to engage on important health and safety topics, and raise awareness of risk issues and how we can stay safe in the workplace. Alongside clear messaging regarding staying safe and going home safely, everyone had a souvenir of their day. It also made a connection between work and home, and provided great images for Vanderlande’s safety campaigns.

Health management programmeVanderlande gives great importance to the vitality of its employees. Therefore, within our health management programme, we have created activities and interventions that help to increase the health and vitality of our employees. These are divided into five vital pillars: meaning, social wellbeing, physical wellbeing, nutrition and relaxation. Employees and employers share responsibility in this. Therefore, Vanderlande offers a range of resources in order to support employees in developing a healthy lifestyle, such as fitness facilities, rehabilitation training, coaching, and sport lessons.

Impact on the SDGsWorkplace safety and health standards – and their enforcement – can have a huge impact on our employees lives, also reducing health and safety inequality throughout our global operations. By going forwards with our health and safety programmes, we tackle various issues related to the SDGs ‘good health and wellbeing’, ‘decent work and economic growth’, and ‘reduced inequalities’.

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Health and safety at work

Specific SDGs3.d – Strengthen the capacity of all countries for early warning, risk reduction and management of national and global health risks.8.8 – Protect labour rights and promote safe and secure working environments for all workers.10.3 – Ensure equal opportunities and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices, and promoting appropriate legislation, policies and action in this regard.

Actions beyond 2020Develop a global machinery best practice programme incorporating LOTO and workingat height.Develop a global incident management system and KPI reporting.Decrease trend in accidents and incidents and severity of outcomes.

What we said we would do What we didDevelop HSE database and report global data. The Global HSE Forum 2019 provided a platform to determine the

critical HSE elements needed for the implementation of a centralised global database and the way forward.

Create a global manager and supervisor behavioural safety workshop. A theatrical workshop has been developed that allows an in-depth exploration of safety leadership behaviours and culture. This theatre-based behavioural safety workshop has been delivered in multiple geographical locations with attendees from senior leadership teams, managers, employees, customers and contractors.

Develop and roll-out global work at height and lock out tag out (LOTO) improvement programmes.

During FY2020, we prioritised the development of the LSR programme over these initiatives.

Safety climate survey service – two-year update. The safety climate survey has been rolled out in various locations. Results from all surveys show an above average result for Vanderlande globally.

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Establishing a healthy and fair society

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Employee development and training

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Employee development and training

Having a dedicated and skilled workforce is at the heart of Vanderlande’s strategy. In the words of Chief People Officer Raf Lamberts: ‘In a world of technology, a belief in people’. The company wants its employees to have confidence in their abilities and feel passionate about their work, because long-term, personal and professional development results in high levels of satisfaction, motivation and engagement.

As a true project-based organisation, our challenge is to have the right competences, with the right customers, at the right time. It is skilled and dedicated people that deliver great results and solutions, and it is those same people that come up with new ideas and continue to innovate. That’s why continuous investment in capabilities – knowledge, skills and expertise – is crucial for the development and wellbeing of our employees and the future success of our organisation.

The Vanderlande AcademyOur company is growing across the globe, becoming more structured with new departments, processes and tooling increasing year on year. Having only the right knowledge is not enough. In order to create a truly global learning experience for all employees, we manage our learning and development strategy through a community of expertise, which has a global presence and works with our regional business units to deliver ‘locally’.

Within the Academy, we seek to define roadmaps by proactively anticipating the future capability needs of our organisation, and creating the necessary tools to provide our employees with the necessary learning experience, whenever and wherever they need it. This combines soft and hard skills, along with technical and organisational capabilities. Globally, the materials used in our courses are standardised, following the ‘single source of truth’ theory and safeguarding our aspiration for ONE way of working. Our continued commitment to capability building and continuous learning is focused on our challenge to create an environment where everyone can become the best possible version of themselves.

The Vanderlande Academy plays a pivotal role in the organisation by nurturing employees while following the business developments closely, where they cooperate in developing the best learning solutions with and for employees. With our own team of technical training experts, we safeguard our promise to our external and internal customers: ‘short time to knowledge, learn effectively, anytime and anywhere’.

New training centre at Vanderlande’s headquartersIn 2019, the Vanderlande Training Centre was opened in Veghel, The Netherlands. It has all the required facilities for classroom training and different Vanderlande systems for technical training. For optimal learning purposes, we have created a neutral (non-working) environment in this separate building to act as a location where learning is the main focus of attention.

Globalisation of the AcademyVanderlande’s learning and development strategy is centralised in the Vanderlande Academy, which oversees the initiatives that occur globally within the organisation. Throughout all of our offices around the world, it partners with the business and HR community in assessing local learning needs. To expand this and create a sustainable platform for learning globally, the concept of the Vanderlande Academy is being rolled out to major office locations in the USA, Spain, India and China.

The aim is to facilitate the tools and materials to get all our employees up to speed and keep them skilled, dedicated and informed throughout their careers, wherever they are located. Additionally, Vanderlande believes that what can be organised locally, should be organised locally. Aspects, such as language courses and local standards and regulations are organised by individual office locations.

“The only way we can achieve sustainable profitable growth is to have skilled and dedicated people in place.”

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Vanderlande’s learning environmentBuilding capabilities is more than just acquiring knowledge or attending a training course. We strive to create an environment where people can share experiences, and where employees can use their expertise to help other colleagues get up to speed faster, fostering teamwork and collaboration. Consequently, in 2018 we created ‘train the trainer’ programmes to expand our employees’ capabilities in sharing their knowledge and facilitate growth in competences, both regionally and locally.

Our approach to learning and development, led by our Academy and HR department, not only ensures that good care is taken of education within Vanderlande, but also focuses on future colleagues. We connect and collaborate with educational institutions to promote technical professions, from elementary schools to universities. Vanderlande organises guided tours and participates in networks that promote technical skills. We also arrange seminars for students and an annual ‘girls day’, to open up the male-dominated technical world to women. Our approach is forward-thinking and develops the skills and knowledge that are needed, both now and in the future.

Vanderlande’s learning modelWe encourage our employees to strive for purpose, autonomy and mastery in their work. For this we have implemented both push and pull learning strategies. Push learning strategies entail job programmes which decrease an employee’s time to performance by providing structured curricula and competency assessments. Pull strategies involve making learning available anytime, anywhere. We use a combination of learning resources which vary from workshops and webinars, to online learning portals and e-learning programmes, and business gaming.

In addition, we stimulate social learning by creating communities of practitioners, user-generated content, collaboration platforms, coaching, mentoring and Vanderlande’s open culture to provide and receive feedback. All these didactic best practices contribute to building the abilities which support the realisation of Vanderlande’s strategy. Furthermore, through action learning and problem solving, employees gather experience and are able to develop themselves. Vanderlande also supports employee ambitions in job rotation or secondments to other working areas.

The use of state-of-the-art learning technology is also our view on how to meet future challenges. Often, our projects require capabilities that are not available in local labour markets and cannot be transferred easily between employers. We develop experts in different fields who then become mentors, teachers and leaders for the next generation of employees around the globe. This requires development of both soft and hard skills (including cultural awareness) for an increasingly global workforce, and people skills, where we seek to provide a healthy mix between standardisation and individual focus.

Impact on the SDGsObtaining a high-quality education is a given in many countries in which we are active, but not all. Vanderlande wants to support growth for all employees in all the countries we operate in. We see great added value, from both a personal development and a business success perspective, in continuous learning and adapting behaviour and competences.

Employee development and training

KnowledgeKnow what

SkillsKnow how

AttitudeKnow why

ABILITY

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Employee development and training

Specific SDGs4.4 – By 2030, substantially increase the number of youths and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.4.7 – By 2030, ensure that all learners acquire the knowledge and skills needed to promote sustainable development, including (among others) education for sustainable development and sustainable lifestyles, human rights, gender equality, promotion of a culture of peace and non-violence, global citizenship and appreciation of cultural diversity and of culture’s contribution to sustainable development.

Actions beyond 2020Create a foundational competency model to accelerate the development of our employees.Implement smart learning design through modular learning and digitalisation of learning.Drive the globalisation of our ‘communities of expertise’.Build a ‘bottom-up’ annual learning plan to meet the needs of each of our business units and regions.Evolve our learning management system to a learning experience platform.

16.2618.2

Under 30

Male Female

Staff trained:5,629

Hours of training: 76,994

Overall average: 12.31 hours

12.212.5

Between 30-50

Male Female

7.97.25

Over 50

Male Female

Amount of training hours in 2019 (per age group)

What we said we would do What we did

Establish a ‘train the trainer’ community and professionalisation. We have created the ‘train the trainer’ programme.

Establish network of specialist parties for content development. We have created this network along with the globalisation of the Academy.

Set up and roll-out global leadership programmes. We have set up and rolled-out our leadership programme.

Build BREEAM ‘excellent’ rated Academy Training Centre at HQ. The Vanderlande Academy Training Centre was inaugurated in 2019.

Ensure global coverage of critical courses. The courses deemed as critical in 2018 and 2019 were covered, and we continue to assess the criticality of new courses daily.

Steering committee to determine global strategic priority on required competences.

On hold due to changes in our organisational structure.

Select and implement new learning management systems tooling. A new learning management tool was released in 2019.

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

We are assessing the best strategy for the development of our global competences.

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Vanderlande Sustainability Report FY2020 51

What we said we would do What we did

Establish a ‘train the trainer’ community and professionalisation. We have created the ‘train the trainer’ programme.

Establish network of specialist parties for content development. We have created this network along with the globalisation of the Academy.

Set up and roll-out global leadership programmes. We have set up and rolled-out our leadership programme.

Build BREEAM ‘excellent’ rated Academy Training Centre at HQ. The Vanderlande Academy Training Centre was inaugurated in 2019.

Ensure global coverage of critical courses. The courses deemed as critical in 2018 and 2019 were covered, and we continue to assess the criticality of new courses daily.

Steering committee to determine global strategic priority on required competences.

On hold due to changes in our organisational structure.

Select and implement new learning management systems tooling. A new learning management tool was released in 2019.

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

We are assessing the best strategy for the development of our global competences.

Employee development and training

Vanderlande’s training centre in Veghel, The Netherlands

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Vanderlande Sustainability Report FY202052

Establishing a healthy and fair society

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Employee engagement

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In a world of technology, Vanderlande believes in people – its employees make the difference in everything the company does. Today’s organisations face a dynamic and challenging competitive landscape, so the ability to plan, find, grow and keep our ‘talents’ has become critical to Vanderlande’s success. We compete on innovation, customer service, collaboration and operational excellence, which means that the key to our success is having engaged, high-performing teams as the foundation for creating our continuous competitive advantage as the market leader in material handling solutions.

Vanderlande has an extensive global workforce, and every employee has different needs relating to their personal circumstances, culture and expectations. To retain the right people, the company must focus on both individual needs and the interconnectivity within and between teams to maintain a positive atmosphere.

To build, support and maintain high-performing, engaged employees and teams within Vanderlande, our Chief People Officer, Raf Lamberts, launched the People First Strategy in 2019. In this HR framework, we capture employee engagement in the pillar: ‘meaningful alignment and engagement’. We want to give each of our employees an outstanding and consistent experience.

Vanderlande’s experience modelWe want to create and maintain a culture where each member of our increasingly growing, international and diverse workforce feels comfortable and empowered to do their best. This requires us first to listen, and we do that by giving each employee a voice through Vanderlande’s ‘employee experience survey’. Every Vanderlande employee is asked for feedback regarding key moments in their individual development journey. We then connect this information in order to understand what truly drives our workforce, to learn from this and to ACT upon it in a predictive manner.

Our ambition is to ultimately create and implement a continuous conversation strategy that will help our organisation embed high-quality feedback conversations as second nature, and help managers and teams to use data-driven actions and change behaviours.

How we feel at work is highly dependent on the environment we work in. Empathic leaders understand the needs, motivations and ambitions of each employee and know how to help create engaged employees, as well as optimal work results. By promoting and improving the interpersonal skills of our leaders, and by focusing on stimulating and creating an open and respectful

Employee engagement

“The only way we can achieve sustainable profitable growth is to have engaged people in place.”

This requires us to listen to all employees around the globe

All Vanderlande employees will be asked for feedback onkey moments

Ultimately making feedback conversations a habit

Outstanding and consistent Vanderlande experience

Create a culture where everyone feels comfortable

Connect this feedback to gain deeper understanding of the key drivers of engagement

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Vanderlande Sustainability Report FY2020 55

working environment, we can maximise the engagement level of our employees. To create a long-term healthy workspace, we act from the top to create a positive atmosphere throughout our company. This results in an environment where people feel comfortable, and opinions and ideas can be shared.

Employee experience surveyIn 2019, Vanderlande launched its first global ‘employee experience survey’, supported by Glint. This survey is based on Vanderlande’s core values and was offered in 13 languages, available both online and offline for all of our employees. The survey was supported by artificial intelligence to anonymously analyse answers and comments at a corporate, business unit and departmental level.

In our first survey to set Vanderlande’s baseline, the response rate was 81%, with an overall employee satisfaction rating of 76 – four points above the industry benchmark. The outcome of the survey was the starting point of the programme: ‘Let’s ACT: one dialogue, each quarter with one action’. Within this programme, all Vanderlande’s line managers (who must understand the personal needs, motivations and ambitions of each individual in their team) play a leading role in facilitating a dialogue with their respective teams to ACT:

> Acknowledge where the team is today > Collaborate on where the team wants to go > Take one step forward to improve.

To ensure continuous improvement, we are aiming for each team to complete one concrete action point each quarter, defined and planned by the teams themselves. Additionally, to build the momentum of open dialogue, Vanderlande will offer a full employee survey every September, and a ‘light pulse’ in March. The survey will focus on employee satisfaction, key strengths and opportunities, and feedback around action taking. We will use the same questions within the same timeframe globally to ensure consistency in output and frequency.

Key human resource processesThe Vanderlande HR organisation has both a centralised and decentralised structure. Centrally, its backbone is maintained via standard human capital tooling and processes. These are centrally investigated and tested before being rolled out internationally. These key HR processes are important drivers in keeping our employees engaged. During the talent acquisition process, we ensure that the talents we hire match Vanderlande’s core values. ‘Drive to win’, ‘team play’ and ‘ownership’ are essential drivers for our company to be successful.

Employee engagement

7,750comments

which can provide useful context to

the scores

76eSat

benchmark: 72

How happy are employees to work for Vanderlande?The employee satisfaction rating (eSat) is the best indication for overall engagement

81%response rate

benchmark: 80%

STRENGTHS

CULTURE+8 vs benchmark

RESPECT+2 vs benchmark

COMMUNICATION+2 vs benchmark

Let ’s ACT: one dialogue, each quarter with one action

CUSTOMER FOCUS-8 vs benchmark

VISION-5 vs benchmark

DECISION MAKING-4 vs benchmark

Acknowledge where we are

Collaborate on where we want to goTake one step forward

OPPORTUNITIES

First team dialogue and team action defined:

November 2019

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Selecting the right staff and making them feel at home from the start of their time at Vanderlande is something the company has strongly focused on. In recent years, alongside company growth, our efforts to integrate new employees into the organisation have increased tremendously. For example, new employee training programmes, e-learning modules, buddy systems and onboarding classes are now just some of the ways in which we help our new employees familiarise themselves with the company and allow them to get a head start.

The terms and conditions of our employment are also an important driver for engagement. These meet and/or exceed the legislative standards of the countries we operate in. On an organisational level, the company follows the Hay job evaluation system for all employees. These include a standard HR cycle covering such aspects as appraisals, pay reviews and the setting of targets, ensuring that employees are evaluated equally. There is a small percentage of Vanderlande’s workforce (below 10%) who fall under collective bargaining agreements on an industry level. However, applying or following this type of agreement is not a standard way of working for the company.

IamVanderlandeIn 2019, we started the IamVanderlande platform. This global initiative is set up, maintained and executed by our employees, with the mission to encourage and enable all staff to create and

participate in communities that provide enjoyable, challenging and inspiring experiences, while at the same time being fun, promoting physical and mental wellbeing, and fostering company-wide unity.

In the space of around a year, over 15 IamVanderlande communities have emerged, such as IamVolunteering, Vanderlande Car Enthusiasts, Vanderlande Cycling Fanatics and Vanderlande Gaming.

A great place to workVanderlande strives to create an engaging environment, in which professional and personal growth go hand in hand. These efforts have been reflected in several awards and the company has been consistently rated as a ‘great place to work’. Over the past few years, Vanderlande has performed exceptionally well in the Best Employer Survey in The Netherlands, where we received the highest rating of three stars for the 2018-2019 period.

The company’s global culture has led to the extension of these recognitions. For example in India, Vanderlande was awarded the National Best Employer Brands 2019 Award for Talent Management, and for a second time in a row, it was recognised as a ‘Top Employer’ in Germany.

Employee engagement

Specific SDGs8.8 – Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.10.3 – Ensure equal opportunity and reduce inequalities of outcome, including eliminating discriminatory laws, policies and practices, and promoting appropriate legislation, policies and action in this regard.16.7 – Ensure responsive, inclusive,participatory and representative decision-making at all levels.16.b – Promote and enforce non-discriminatory laws and policiesfor sustainable development.

Actions beyond 2020Maintain the employee engagement level above the industry average.Maintain the employee participation levels above the industry average.Improve on the topics pointed out in the Experience survey via the ACT programmeIncrease the frequency of our experience surveys, by setting up pulse surveys every six months. Explore the use of experience surveys in other company programmes, such as onboarding.

What we said we would do What we did

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

We have established ‘IamVanderlande’ as a platform to allow employees to create engaged communities within the company.

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

We have executed the employee experience survey in 2019.

Keep employee engagement level (The Netherlands) above FY2018 level. We have adopted a new measuring mechanism and kept our engagement level above the industry benchmark.

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Employee engagement

Impact on the SDGsBy working on employee engagement, we tackle goals 8, 10 and 16, by creating inclusive working environments that result in the right conditions for all members of the company to give their best each day, commit to the organisation’s goals and values, and develop an enhanced sense of their own wellbeing.

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Respecting the natural capacity of our planet

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Energy use: products and systems

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Energy use:products and

systems

As a company, we care about how our business activities impact on the environment and critical issues such as resource availability and climate change. Generating electricity is often done by burning fossil fuels such as coal, oil or gas. Our customers are using electricity to run the systems we provide, which links directly to the carbon emissions of electricity production sites.

We believe it is important to show leadership and responsibility to positively contribute to global initiatives, such as the UNFCCC Paris Climate Agreement and the UN Sustainable Development Goals. As the UN has stated: “Emissions anywhere affect people everywhere. It is an issue that requires solutions that need to be coordinated at an international level and it requires international cooperation to help developing countries move toward a low-carbon economy.”

Our impactVanderlande understands its influence on the design of its products and systems, which further shapes the energy consumption at our customers’ sites. As Vanderlande’s markets grow and the demand for automated systems increases, the impact of the decisions the company makes regarding the energy consumption of its products increases, and so therefore does its responsibility.

The energy use of our products constitutes an important part of the total life-cycle impact of our products, in terms of their carbon emissions. Products and systems integrate mechanical products, equipment controls, power electronics, software and IT products. Studies performed in line with life-cycle assessments indicate that the energy consumption during the ‘use’ phase of Vanderlande’s products contributes to 50-95% of their total carbon footprint, depending on the product and the usage patterns.

The growth of our organisation has led to larger projects, implying higher power requirements. Moreover, the operational and capital expenditures for our customers keep increasing,

and the environmental concerns and regulations are becoming more relevant every day. As a responsible organisation we want to support our customers in meeting their sustainability commitments, for example by reducing the energy consumption of their material handling solutions.

Monitoring and reducing energy useFor several decades, Vanderlande has executed energy measurements on its installed bases at customer sites. With the rise in awareness of the impact of energy consumption, we have developed a more structural approach in recent years. This is why Vanderlande created a dedicated Power and Energy Competence team in 2019, which aims to increase the knowledge of system design in relation to the power supply and energy consumption of our existing and newly designed systems. Furthermore, the team also exists to improve our system designs and increase the energy efficiency of our technologies.

As of 2019, we have implemented energy monitoring software on site for all key customers in all market segments. This provides benefits such as enabling life-cycle analysis and TCO calculations, but also offers support to our service teams at an equipment level. We are currently working on expanding our energy monitoring software to more customer sites. Alongside this, statistical analyses of the energy data gathered have been providing input to help us improve the design of our standard products, deliver better services and optimise the electrical layout and grid connections of our customers’ operational sites.

At Vanderlande, we also understand that there are continuous improvement opportunities that can optimise our customers’ processes and reduce the energy consumption of their installed bases. This is why our Life-cycle Services department offers wide-ranging support to our customers. To optimise customer processes, Vanderlande has engineers at a growing number of sites working directly to analyse process flows, combine sensor and flow data, and find improvements in energy-related areas. Process optimisations can relate to either changes of equipment and process conditions (redundancy or batch control), as well as

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smart routing, among others. Due to this, our process engineers have already helped customers from all of our market segments to reduce their energy consumption.

More efficient technologyAs the legislative market changes, we expect to see further energy-related regulations coming into the material handling market in the coming years. Stricter regulations are being put in place each year with more ambitious goals to reduce energy consumption and the effect on climate change of electrically powered equipment. Vanderlande has been working closely with customers and suppliers to develop new solutions over and above the legislation. For instance, products with IE4 (super premium efficiency) are already available within all of our market segments, and new motors that surpass IE4 efficiencies are also being investigated. The ambition to reduce the energy consumption of our products is not isolated. The products that we supply are a combination of components designed either in-house or in collaboration with third-parties, and third-party equipment. We have been working in close cooperation with our customers and suppliers to develop new solutions and insights. Our R&D teams are actively looking for ways to reduce the energy consumption of our products,

which have for instance, resulted in the use of low-friction driven rollers and low-friction belts, creating opportunities to develop smaller, more efficient and modular equipment.

In 2019, a new test set-up was installed in Vanderlande’s Innovation Centre (IC), where different configurations of conveyor systems with different combinations of technologies are being tested, with the aim of discovering which configurations and technologies lead to a lower energy consumption. Concrete results for these tests are expected to be obtained by the end of CY2020.

Impact on the SDGsOn a global level, energy production transition towards a low-carbon economy is in progress. Although Vanderlande doesn’t have an influence on how electricity is produced, we contribute to a cleaner energy system by increasing efficiency and lowering the energy consumption of the systems we provide. We also foster innovation in our industry through research and collaboration with our customers and suppliers, in order to pave the way forward towards low-impact material handling systems.

Energy use:products and systems

Specific SDGs7.3 – by 2030, double the global rate of improvement in energy efficiency.9.1 – develop quality, reliable, sustainable and resilient infrastructure.9.4 – by 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased efficiency in terms of resource use.

Actions beyond 2020Promote joint initiatives with customers to reduce the energy consumption of the systems we design.Expand the energy analytics services within all of our market segments. For instance, by offering power and energy analysis of our systems as an optional service. Set platform-based system behaviour tests to analyse changes in peak power and energy consumption.Continue to expand the range of IE4-ready equipment and seek ways to further reduce the energy consumption of our products.

What we said we would do What we didRoll-out energy monitoring software at five customer sites. We have rolled out energy management software within the sites of

most of our key customers in all our markets.

Review and consolidate energy-related demands of key customers. Our sales and systems teams continuously review and consolidate demands from our key customers.

Improve and validate predictive energy modelling software. We created a competence team in 2019 to analyse operational power and energy data in order to improve and validate our predictive energy modelling software.

Set energy reduction objectives for products and systems. We have deployed IE4 motors in products within all our market segments, and are testing new technologies at our IC.

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Respecting the natural capacity of our planet

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Quality, reliability and performance

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Quality, reliability and performance are the areas in which Vanderlande has to define standards that govern its solutions. From a triple bottom line perspective, quality faults lead to wasted materials, wasted energy, health risks for employees, dissatisfied customers, and poorly performing products. Vanderlande strives to improve its customers’ business processes and competitive position while strengthening its position as a sustainable company. To succeed in this goal and to minimise the ecological footprint of our processes, upholding quality and supplying only high-quality products and services with the highest standards of reliability and performance is fundamental.

Quality and reliability policiesHistorically, Vanderlande’s quality policies have been strong and the company has been considered by many of its customers as a highly reliable partner. The company has been certified in its compliance to ISO 9001 (quality management system)

processes in The Netherlands and the UK since 1995. Since then, Vanderlande has extended these standards globally by deploying ONE way of working and professionalising its global workforce. The company has been implementing different enablers such as engineering tools and methodologies, and internal quality standards, to help us optimise the development and manufacturing processes, as well as minimise the environmental footprint throughout the life cycle of our systems.

Global quality managementIn line with the evolution of our company, we have defined a global strategic framework to focus on quality and reliability on three major fronts: product design, the supply chain, and business processes. This framework is led by our Global Quality Assurance Manager, who is responsible for the Quality Assurance programme and management system, as well as our overall performance and direction.

Industrialisation Product/part release

Supplier QAQuali�cation

and development

QA Support officeSite incidents support

andQA risk mitigation

Field qualityField campaigns

PRODUCT SUPPLIER BUSINESS FIELD

Strategic quality assurance (QA)

Product metrology and inspection

Quality, reliability and performance

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Industrialisation and product designWithin the product design phase, we have created different tools and methodologies for our designers to optimise our products and mitigate potential risks. We have a strong collaborative network between our Quality Assurance and R&D teams, to ensure that every product developed retains high-quality standards and performs effectively.

For this, we have various multidisciplinary teams consisting of product designers, supply chain engineers and quality engineers to oversee the design process. In recent years, we have been more active in using the available data from our installed base and projects, enabling us to detect where our product design can be improved, and enabling the creation of feedback loops within our design teams. Furthermore, to continue improving the design process of our products, we are currently exploring the introduction of a ‘Design for Six Sigma’ framework.

Supply chain developmentFor suppliers, Vanderlande’s quality and reliability policies provide clear guidance on the required standards and behaviours. Once selected as a supplier, we strive to develop a strong and long-term relationship and expect suppliers to be committed to a ‘zero defect’ ambition and a ‘first time right’ policy. These goals are set equally for all suppliers of materials, equipment and services. To further support the development of our suppliers and their quality standards, we are creating a Supplier Quality Development programme.

Vanderlande’s supply chain processes an enormous amount of products and services which are crucial in delivering successful projects. The company’s Global Supply Chain department

works closely together with local suppliers of parts, services and processes in dedicated supply centres in Europe, the USA and Asia.

A ‘one design, one quality’ principle enables the company to be flexible in shifting production all over the world. We can decide almost instantly where a product will be produced, assured of its consistency in quality, form and function. We operate an end-to-end supply chain in which manufacturing, subcontracting and procurement are managed and measured in an integrated way, fully in line with our offering as a total system integrator.

Responding to quality and reliability issuesIf a quality or reliability issue does arise on our designed products or installed base, we have set up a Field Analysis team with representatives from Life-cycle Services, Quality Assurance, R&D, Engineering and Supply Chain to respond with set reactive procedures to manage and minimise its impact. The mechanisms we utilise depend on the potential impact to our products and customers. We also use this information and execute root-cause analysis methods to find out why the problem arose, and develop an improvement plan to prevent it happening again. This ensures that our products remain in a continuous improvement cycle.

Continuous improvementWithin our business processes, we have established a continuous improvement way of working by means of innovation processes and ‘Plan-Do-Check-Act’ cycles. Improvement plans are initiated and developed by diverse inputs, such as performance results and recommendations. These cycles are applied to all the Vanderlande processes with quality risks, including the design of its products and systems, supply and manufacturing.

Quality, reliability and performance

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We have set up a multidisciplinary Continuous Improvement Board to monitor improvement projects and performance results on a monthly basis. Additionally, we perform internal audits to verify the Board’s way of working on different process levels. An approved audit team executes the audit and if any non-conformities arise, a root-cause analysis is executed to further implement corrective actions.

To guarantee proper and effective continuous improvement cycles, Vanderlande is expanding the number and expertise of its dedicated staff. For example, in 2019, 67 employees were trained as internal auditors.

Impact on the SDGsBy offering high-quality solutions that are reliable and perform effectively, Vanderlande is aligned with UN SDG 12 – ‘responsible consumption and production’. Having high performing and efficient systems guarantees that resources aren’t overused, as no unnecessary waste is generated due to quality issues and underperforming systems.Specific SDGs

8.4 – Improve progressively through to 2030 with global resource efficiency in consumption.9.1 – Develop a high-quality, reliable, sustainable and resilient infrastructure.

Actions beyond 2020Implement a ‘Design for Six Sigma’ methodology in the product design process.Digitise the bill of materials for our products. Set up a platform-based improvement organisational structure. Roll-out a Supplier Quality Development programme. Continue the professionalisation of our quality assurance competence globally.Pave the way forward towards a data-driven quality assurance organisation (define KPIs and roll-out globally).

Quality, reliability and performance

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Quality, reliability and performance

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Respecting the natural capacity of our planet

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Responsible sourcing

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Responsible sourcing

Responsible sourcing is an important topic where we have the opportunity to stimulate sustainable development in our supply chain, eg by assessing good labour conditions and increasing regional sourcing of goods and services close to customer projects.

Our impactMaterial handling solutions are made of physical components, which require raw materials to be extracted, processed, formed and treated. To do so, energy is required and waste is created. Vanderlande shares responsibility for minimising these impacts. Vanderlande spends a significant part of its turnover (approximately 65%) on its supply chain.

To produce – or procure – a product or service, impacts can be seen at locations where raw materials are extracted. They are also visible when materials are transported to (and at) manufacturing sites where they are later fashioned into products and systems. Additionally, health and safety risk factors have to be considered in the sourcing of our products and services.

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

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

Code of conductThe global supply chain strategy is based on the requirements of our customers and aims for a reliable, competitive and flexible supply chain. A key element is to increase the number of long-term framework agreements with suppliers, including codes of conduct. These create mutual commitments and insights, and increase trust.

Vanderlande has a continuous focus on making the procurement and supplier code of conduct an essential part of its engagement with suppliers. This is a starting point for discussions on sustainability and moving closer to achieving these ambitions. Human rights, which translate into labour conditions, are an important theme within this document.

Vanderlande’s procurement and supplier code of conduct fully complies with the basic principles as specified in the UN’s global compact platform. It was compiled in line with: international labour office conventions; the UN’s universal declaration of human rights and conventions on the rights of the child; the convention on the elimination of all forms of discrimination against women; and the OECD’s guidelines for multinational companies. The code of conduct also concerns the expectations that Vanderlande has towards its suppliers.

Vanderlande is committed to ensuring that working conditions within its supply chain are safe, workers are treated with respect and dignity, and manufacturing processes are environmentally responsible.

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

Many of Vanderlande’s projects involve subcontracted labour. All of these are managed with a strong attention to health and safety, and subcontractors are managed as if they were Vanderlande’s own employees with the philosophy: ‘if you can’t do it safely, don’t do it!’ Examples include safety toolbox meetings, preventive control measures, personal protective equipment, and creating awareness through active engagement and training.

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

Alongside other aspects, Vanderlande verifies supplier agreements and quality manuals, product specifications and quality management systems. In all of its audits, health and safety is taken into account. In the long term, Vanderlande expects information security to become a more important topic in relation to its suppliers and aims to increase the scope of its audits with this topic in mind.

Speak upVanderlande continually promotes strong ethics and strives to lead by example. As a part of the whistle-blower policy and its ‘speak up’ directive, the code of conduct for suppliers has recently been updated, and now includes an added page about our ‘speak up’ guidance. This increases the total coverage of our whistle-blower policy in our supply chain, paving the way for third parties to ‘speak up’ and report their ethical concerns.

Assessment and evaluationTo assess its activities with regards to responsible sourcing, Vanderlande uses specific evaluation tools, including: supplier audits based on risk priority profiles; code of conduct KPIs; and an allocation and planning strategy for regional manufacturing.

Although it was Vanderlande’s ambition to have its code of conduct signed with 25% of the framework contracts, this target has not been met. The number of codes of conduct signed did increase from 115 in June 2018, to 131 in March 2020, but not all of these were connected to framework contracts.

Responsible sourcing

232244 252

272 281303

313

337

14%17% 15% 14% 14% 13% 12% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

300

350

400

Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 Q1 FY2020 Q2 FY2020 Q3 FY2020 Q4 FY2020

Framework contracts including code of conduct

Number of framework contracts Percentage of framework contracts including code of conduct

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Responsible sourcing

Initiatives in our supply chainWe have piloted different initiatives within our warehouses in The Netherlands. In 2019, we replaced the PVC tape used to seal our boxes with recyclable carbon tape, which has resulted in the saving of 30,000 metres of tape plastic. Additionally, we introduced compartment boxes for shipments in The Netherlands. Instead of packing all small parts into separate boxes, we use carton separators to pack up to eight parts in a single box. The carton separators are not thrown away but are reused for future shipments. This has reduced our use of boxes by a factor of eight.

For our fast-moving procured spare parts, we started a pilot project in our warehouse in Best (The Netherlands) to use economic order quantity (EOQ) at the beginning of 2019. By ordering parts in larger batches and keeping them in stock, the amount of purchase orders to our suppliers decreases, limiting the number of trips needed to the warehouse. This has resulted in an estimated reduction of CO2 emissions of 18,000kg per year.

Impact on the SDGsWith the development of our code of conduct we have integrated a wider set of social, ethical and environmental performance factors into the process of selecting our suppliers. These factors are needed to have a responsible economic growth, consumption and production, as our supply chains continue to expand globally.

Specific SDGs8.4 – Improve progressively, through to 2030, global resource efficiency in consumption and production. 8.7 – Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking.9.2 – Promote inclusive and sustainable industrialisation.12.2 – By 2030, achieve the sustainable management and efficient use of natural resources.12.4 – By 2030, achieve the environmentally sound management of chemicals and all wastes throughout their life cycles.12.7 – Promote public procurement practices that are sustainable, in accordance with national policies and priorities.

Actions beyond 2020Implement global supply chain network tooling by 2023.Implement an integrated approach for supplier risk management going beyond financial health.Reach 50% of preferred suppliers signing our code of conduct.Continue our risk-based approach to auditing.

What we said we would do What we didDefine and create baseline for global supplier classification process. We defined the approach that we will implement alongside the

roll-out of new tooling.

Integrate financial supplier risk management in GSC process. We have enabled financial supplier risk management in existing tooling for use by our sourcing community.

Reach 25% code of conduct (CoC) implementation of signed framework contracts.

We are focusing on signing CoCs with both preferred and/or framework contracted suppliers.

Audit high-risk suppliers. Our top 50 suppliers have been audited based on supply risk coming from material availability and/or financial impact.

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Responsible sourcing

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GRI content index

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GRI standards GRI disclosure Page Remark

Organisation profile 102-1 Name of the Organisation 8

102-2 Activities, brands, products, and services 8

102-3 Location of headquarters 11

102-4 Location of operations 11

102-5 Ownership and legal form 8

102-6 Markets served 8

102-7 Scale of the Organisation 8

102-8 Information on employees and other workers 8

102-9 Supply chain 11

102-10 Significant changes to the Organisation and its supply chain 11, 64-65, 70-72

102-11 Precautionary principle or approach 4

102-12 External initiatives 12, 20-23, 26-30

Strategy 102-14 Statement from senior decision-maker 2, 3

Ethics and integrity 102-16 Values, principles, standards, and norms of behavior 9, 10

Governance 102-18 Governance structure 20

Stakeholder engagement 102-40 List of stakeholder groups 14

102-41 Collective bargaining agreements 56

102-42 Identifying and selecting stakeholders 14

102-43 Approach to stakeholder engagement 14

102-44 Key topics and concerns raised 16, 17

Reporting practice 102-45 Entities included in the consolidated financial statements 8

102-46 Defining report content and topic Boundaries 12-14

102-47 List of material topics 15-17

102-48 Restatements of information - Not applicable

102-49 Changes in reporting 4

102-50 Reporting period 4

102-51 Date of most recent report 4

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GRI standards GRI disclosure Page Remark

102-52 Reporting cycle 4

102-53 Contact point for questions regarding the report 4

102-54 Claims of reporting in accordance with the GRI Standards 4

102-55 GRI content index 76-78

102-56 External assurance 4

Corporate governance 103-1 Explanation of the material topic 20-22

103-2 The management approach and its components 20-22

103-3 Evaluation of the management approach 20-22

102-20 Executive-level responsibility for economic, environmental and social impact 20

305-5 Reduction of GHG emissions 23

Circular solutions 103-1 Explanation of the material topic 26-30

103-2 The management approach and its components 26-30

103-3 Evaluation of the management approach 26-30

- Reversed value from reverse logistics 29 Vanderlande KPI

IT security and data privacy 103-1 Explanation of the material topic 34, 35

103-2 The management approach and its components 34, 35

103-3 Evaluation of the management approach 34, 35

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 34

Design safety and ergonomics 103-1 Explanation of the material topic 38, 39

103-2 The management approach and its components 38, 39

103-3 Evaluation of the management approach 38, 39

416-1 Assessment of Health and Safety impacts of product and service categories 38

Health and safety at work 103-1 Explanation of the material topic 42-45

103-2 The management approach and its components 42-45

103-3 Evaluation of the management approach 42-45

403-1 Occupational health and safety management system 43

403-5 Worker training on occupational health and safety 43-44

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GRI standards GRI disclosure Page Remark

Employee development and training 103-1 Explanation of the material topic 48-50

103-2 The management approach and its components 48-50

103-3 Evaluation of the management approach 48-50

404-1 Average hours of training per year per employee 50

Employee engagement 103-1 Explanation of the material topic 54-57

103-2 The management approach and its components 54-57

103-3 Evaluation of the management approach 54-57

- Glint Experience Assessment Score - Vanderlande KPI

Energy use: products and systems 103-1 Explanation of the material topic 60-61

103-2 The management approach and its components 60-61

103-3 Evaluation of the management approach 60-61

- No material topic specific information available -

Quality, reliability and performance 103-1 Explanation of the material topic 64-66

103-2 The management approach and its components 64-66

103-3 Evaluation of the management approach 64-66

- Number of employees trained as internal auditors 66 Vanderlande KPI

Responsible sourcing 103-1 Explanation of the material topic 70-72

103-2 The management approach and its components 70-72

103-3 Evaluation of the management approach 70-72

- Supplier framework agreements with code of conduct 71 Vanderlande KPI

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> vanderlande.com

Sustainability Report FY2020

VanderlandeVanderlandelaan 25466 RB VeghelThe Netherlands

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


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