Environmental & Social Information • May 3, 2021
Environmental & Social Information
Open in ViewerOpens in native device viewer
2020
Better living and more quality of life • Diversity for individual aspirations • Professional and private applications
Production of hygiene aprons • Colorine-free film for profile wrapping • The first natural cork edging ever • Climateneutral company Kröning GmbH
Edgebandings, finish foils, decor papers, skirtings, impregnated products, release papers, roller-shutter systems and technical extrusions
Origins and development of the SURTECO Group • Global presence
Our interpretation of sustainability • Sustainability management • Opportunities outweigh risks • Focuses of sustainable action • Standards of conduct • Equal opportunities for men and women • Structures, reporting boundaries and changes, organizational structure
Distribution of value added
Water usage • Wastewater • Biodiversity • Energy consumption • Emissions into the air • Noise emissions • Waste
Promotion • Qualified employees • Performance review and improvement • Occupational accidents
Customer orientation • Sustainability in operating business • Suppliers and service providers • Corruption and breaches of the law
[102-14]* Sustainability means being fit for the future. So clear, so simple, yet the slogan for this issue can also be so strong. Environmental, economic and social needs have to be joined up in a unified approach. The global community has made a commitment to this mission through its Agenda 2030 under the auspices of the United Nations with 17 Global Goals. We are confident that as a commercial enterprise we can also make a contribution to this endeavour.
In addition, we have appointed a team and nominated a globally responsible person. We have also worked out a strategy on the basis of the UN Sustainability Goals and defined concrete targets and measures. By 2030, we want to reduce our CO2 emissions (Scope 1 and 2) by 30 % compared with the status of 2019 and create a sound basis for Scope 3 emissions by 2022. We are aiming to increase our plastic recycling rate to 80% by 2025. Details of all the goals are given in the report.
We have already made a start with a pilot project at one of our subsidiary companies. From this year, the edgebanding and foil manufacturer Kröning GmbH in Hüllhorst is being designated a climate-neutral company. We are focusing on climate neutrality at product level as the next step. We have been committed to FSC-certified material when purchasing our raw papers for a long time.
Our values and principles for interaction with employees, customers, suppliers, other business partners, representatives of government authorities and the general public are defined in our Code of Conduct. We are committed to maintaining high ethical standards and we therefore rolled out a whistleblower system throughout the Group in the business year 2020. The aim was to identify, investigate and put a stop to any misconduct at an early stage. In 2020, our Compliance Board received and dealt with four notifications. No illegal actions were identified in the course of the subsequent investigations.
Our business model proved to be very robust during the COVID-19 pandemic. Our supply chains operated well at all times and after a significant collapse, demand recovered relatively quickly in the second quarter. Particularly at the beginning of the pandemic, we made use of short-time working or the relevant country-specific programmes at individual locations and we topped up the allowances for short-time working for employees in Germany. However, extended shutdowns were not necessary. The status of our IT systems allowed us to move quickly to working from home. So far, we have been very successful at overcoming the COVID-19 pandemic.
Naturally, the pandemic impacted on our environmental indicators in the business year 2020. The collapse in demand during the second quarter led to an overall reduction in the generation of CO2 emissions and the consumption of resources. We are not going to lose sight of our goal of similarly minimizing our emissions during normal production operation.
Even in the exceptional year 2020, we have not lost our focus on the issue of sustainability. Quite the contrary, we have launched a number of projects and we will continue to drive these forward strategically.
Wolfgang Moyses Dr. Manfred Bracher Chairman of the Management Board Member of the Management Board
[103-2, 102-6] The SURTECO Group (SURface TEchnology COrporation) is one of the world's leading manufacturers of surfaces and technical extrusions (profiles). Customers of SURTECO come from the wood-based, flooring, furniture, kitchen, door and caravan industries. Products are also supplied to the cruise-ship industry, artisan craft businesses and the retail trade for private purchasers
SURTECO offers perfection in design, colour, gloss and haptic touch. On the one hand, this demands a long track record of experience, while on the other hand a rapid response is necessary to incorporate current developments in relation to individual customer requirements. This flexibility is important because SURTECO is in a design-oriented market segment with a high level of qualitative requirements.
Excellent products alone are no guarantee for sustainable economic success. They must be complemented by tailor-made solutions to meet customers' needs and provide a comprehensive service package. SURTECO is therefore bundling its strengths, continuing to perfect its products, optimizing the product portfolio and pooling the sales activities of its Group companies on the basis of a sector-oriented approach.
The requirement for living and office space is increasing with the rising world population and the consequent expansion of purchasing power – and this therefore leads to rising demand for furniture, flooring and interior fittings. This is particularly true for the demographic and economic development in the emerging economies. Furthermore, a global trend towards urbanization and individualization is generating an accelerated demand for attractive interior design and fittings. In the extraordinary year 2020, a reflection on one's own home and furnishings became noticeable within the framework of limited travel and entertainment opportunities.
Against this background, SURTECO is able to satisfy the requirements of manufacturers for decorative and functional surface materials with a high level of market penetration. At the same time, the global presence and the comprehensive product range make the Group less susceptible to sales volatility in individual countries and sectors.
[102-15] SURTECO has a unique selling point in the sector with a large number of products. SURTECO offers customers a broad product range from a "One Stop Shop". This precludes the need to carry out time-consuming research for the appropriate products from different manufacturers. Additionally, there is also a virtually unlimited number of product variants in relation to value, design, dimensions, decor and colour for any application. The production and sales concept is aligned with this strategy of a broadly-based product range and multifaceted features in tandem with efficient manufacture. SURTECO manufactures products at locations in its most important sales countries and organizes sales for worldwide supply either as direct sales from Germany or through the Group's own sales locations abroad. It also has a dense network of external dealers and agents on all continents of the world. SURTECO is also increasingly using e-commerce as a supplementary sales channel.
A broad product range with international individualization is the prerequisite for the success of the SURTECO business model. And SURTECO has a global network: with 22 production locations and 16 additional sales locations in Europe, Asia, Australia, North and South America. The regional diversification of production companies permits fast delivery for the individual target markets. The large number of sales locations provides direct feedback on local customer requirements and design aspirations. This can then be channelled into production without any delay.
[102-2] SURTECO produces a wide range of products for domestic use, and for the trade and public sectors. These include skirtings for professional floorlayers and do-it-yourself markets, release papers, finish foils on paper and plastic substrates, impregnated products for melamine surfaces, technical extrusions (profiles), decorative printing, roller-shutter systems for furniture, edgebandings based on paper and plastic, and fully-wrapped LED tapes. SURTECO products are used in virtually all areas of daily life. For example, they are used on furniture, floors and doors in homes, in mobile homes and on cruise ships.
The products manufactured by the group of companies are primarily processed by the international flooring, woodbased and furniture industries. They are also refined by cabinetmakers and artisan craft workshops. This involves coatings being provided for wood-based materials such as chipboard and fibreboard. These boards receive their final surface with appropriate optical, haptic and functional attributes.
SURTECO offers effective complementary products for the flooring sector with skirtings for pro-fessional floorlayers and trades involved in interior design. Technical extrusions (profiles) made of plastic for all industrial areas and roller-shutter systems for furniture also form part of the product range. Home-improvement and do-ityourself stores are also customers of SURTECO.
| Impregnated products / Re | ||
|---|---|---|
| Technical profiles | 5% | 6% |
| Other products | 6% | 5% |
| Sales by product group | 2019 | 2020 | Sales by regions | 2019 | 2020 |
|---|---|---|---|---|---|
| Edgebandings | 37% | 37% | Germany | 25% | 26% |
| Finish foils | 19% | 19% | Europe (without Germany) | 47% | 47% |
| Decor papers | 13% | 14% | America | 20% | 18% |
| Skirtings | 8% | 10% | Asia / Australia | 8% | 8% |
| Impregnated products / Re lease papers |
12% | 9% | Other | 1% | 1% |
| Technical profiles | 5% | 6% |
The development of innovations and making them ready for market is a continuous, comprehensive and therefore resource-intensive process. Yet there are no effective alternatives. This is because innovations are a prerequisite for satisfactory sales in the future, for attractive margins, for sustainable differentiation of manufacturers in the relevant markets – and most importantly also for achieving environmental sustainability. For these reasons, SURTECO therefore places great value on its innovative strength in products, solutions and processes, not least in order to be in a position to meet the needs of its customers in full and provide value for money.
At the beginning of the COVID-19 pandemic, part of the facility for production of plastic foils at the Swedish subsidiary Gislaved was repurposed for the manufacture of personal protection / single-use aprons. The aprons are manufactured from rustle-free material, as well as having flexibility, anti-static properties and high quality. The product is impressive with lots of useful details. Thumb loops make it easier to put on protective gloves and an easily removable neck strap means the apron is easy to take off.
The demand for chlorine-free foils in the furniture market is enormous. Kröning has therefore developed an entirely new foil – PAP. The abbreviation stands for a hybrid foil made of two plastics – PE and PET, with a layer of aluminium in the middle. It is printed and varnished with water-based and solvent-free paints and lacquers. The result is a wrapping foil with an exceptional look and outstanding haptic properties, along with robust surface characteristics and incorporating the use of chlorine-free plastics.
The Portuguese subsidiary Proadec is launching the first natural cork edging ever onto the market under the name ProCork. This involves applying a surface layer made of genuine cork to a thin backing layer made of ABS. As a renewable raw material, cork is not only a natural product, the edging is also appealing with a warm, tactile surface that is pleasant to touch and has a great visual profile. Genuine cork edgings are an innovative and original accessory for the furniture industry.
Around 23% of the Portuguese forestry area is made up of cork oaks. These support one of the country's main industries and they make a fundamental contribution to preserving the biological diversity of cork oak forests.
How is it possible to become a climate-neutral company and why should this be an objective? SURTECO subsidiary Kröning GmbH located in Hüllhorst asked these questions in a pilot project. The question as to why was quickly answered by Managing Director Wolfgang Gorißen:
"As far as I'm concerned, sustainability is not simply a personal matter. Quite simply, it's an economic necessity. This is because responsible economic activity is the only way of sustaining a business model into future"
The first step to a climate-neutral company was carrying out a detailed analysis of our carbon footprint. This primarily took into account heat and our vehicle fleet, energy, production materials and consumables. The majority of the products at Kröning GmbH are already based on renewable materials from FSC-monitored forestry management. The paint and lacquer systems are based on water and are free of solvents. High product quality,
energy efficiency and environmental awareness are firmly established in the corporate culture. Climate neutrality was secured for the company through just one further step involving green electricity and mitigation projects. As a paper-processing company, Kröning GmbH is currently involved in a project protecting forests in Sierra Leone. Detailed information on this project and the corresponding certificates are available on the company's home page at www.kroening-gmbh.de.
These measures will not simply enable the Kröning site to be carbon neutral. The entire company – from individual employees through to the management – has noticeably anchored environmental awareness within its corporate culture. Our principle here is:
We want to avoid unnecessary emissions, reduce existing emissions and mitigate unavoidable emissions.
[102-2] Edgebandings based on plastic and paper are the product with the highest sales at SURTECO. Plastic edgebandings are manufactured from the plastics ABS, PMMA, PP or PVC in a wide range of different dimensions and strengths to meet specific needs. Melamine edgebandings are created on the basis of printed lightfast specialist papers.
Finish foils made of plastic or paper are ideal for all areas of application. The paper-based foils provide innovative design and a natural haptic feel to create appealing furniture surfaces with outstanding technical properties. SURTECO has plastic foils in its product range for particularly appealing furniture surfaces, for further refinement into long-life carpets and for many industrial applications.
Decor papers are used to provide materials with decor elements in order to refine wood-based materials, for the furniture and flooring industry, and in interior design. The development of creative wood, stone and fantasy decors is carried out in cooperation with the Group's own design studios.
Skirtings complete the flooring product range. SURTECO is a reliable partner for specialist flooring wholesalers and for professional floorlayers. The spectrum of products comprises skirtings, stair edges, transition rails and all the accessories required for laying floors.
Decorative impregnated products from SURTECO are found everywhere, for example on furniture or laminated flooring. They have a tough, abrasion-resistant surface that is extremely resistant to mechanical, thermal and chemical influences. Overlays with a laminate structure from SURTECO give an additional coating for areas subject to heavy wear and tear and provide special optical effects.
Release papers from SURTECO are used for the production of melamine surfaces in the wood-based material industry. The product lends the surface its final visual look and provides a haptic feel. Release papers from SURTECO are also used to give texture to other materials such as leatherette.
Complete roller-shutter systems from SURTECO are widely used by the furniture industry. A broad range of different designs is available as conventionally or digitally printed, or produced with fully laminated finishes.
Technical extrusions made of all common plastics manufactured for the construction sector and many other industrial sectors complete the product portfolio.
The products from SURTECO bring surfaces to life. These include the front profile of the furniture and the base unit with decor papers and finish foils, and narrow edges coated with paper or plastic edgings. Overlays from SURTECO provide enhanced resistance and release papers ensure haptic effects.
And decors from SURTECO also bring the surfaces of floor coverings to life. These include laminate floorings with decor papers, plastic skirting strips and skirtings, and transition rails with paper-based wrapping foils and matching decors.
The Döllken core skirting boards have been awarded the Blue Angel, the bestknown environmental label of the federal government.
The jury wrote: "The core skirting boards from Döllken Profiles are unique. Highquality cores made of FSC-certified softwood fibers are coated with high-performance polymers, making the core skirting boards very robust. All core skirting boards can be punched and processed professionally with system tools. The result: a perfect floor finish that will give pleasure even years later."
GREENGUARD certification is a standard recognized throughout the world for identification of low-emission products with the objective of improving the quality of ambient air. All Döllken edgings are certified in accordance with the highest "GREENGUARD GOLD" standard, i.e. they have been accredited even for use in sensitive areas such as nurseries, schools and healthcare institutions.
Plastic edging production in Germany has a target of zero-waste manufacture. Conserving resources is a top priority. All residual production materials created in the course of manufacturing plastic edgings (plastics and printing inks) are separated into categories and collected, reprocessed internally as far as possible and used as recycled materials within the company. The selective use of secondary raw materials closes the material cycle, conserves resources and minimizes the volume of waste.
We draw up comprehensive environmental footprints for our products and this enables us to obtain reliable data on all local, regional and global environmental impacts. This allows us to continually optimize Döllken edgings, evaluate new materials, reduce emissions and conserve natural resources. Sustainable innovations are produced such as ABS edgings, which significantly cut down the volume of CO2 emissions, and save energy and fresh water through the use of recyclates.
The origins of the SURTECO Group extend back into the 19th century. Two of today's predecessors, the companies Felix Schoeller und Bausch, and W. Döllken & Cie. were established during this period. A third strong mainstay started up operations in the middle of the 20th century as the company Linnemann. Following the takeover of a series of companies in Germany and abroad over the past decades and opening numerous locations worldwide, SURTECO is today a company operating on the global stage.
Acquisition of the Portuguese Probos Group
2016
Acquisition of the British Nenplas Group
2013 Acquisition of Süddekor Group
Conversion into a European stock corporation SURTECO SE (Societas Europaea)
Integration of Döllken Group
Bausch AG was merged with Robert Linnemann GmbH
| Europe | ||
|---|---|---|
| Germany | 22 production and sales locations | |
| France | 16 additional assembly and sales locations | |
| United Kingsom | ||
| Italy | ||
| Poland | America | |
| Portugal | Brazil | Asia / Oceania |
| Russia | Canada | Australia |
| Sweden | Mexico | Indonesia |
| Czech Republic | USA | Singapore |
Closeness to customers is important to SURTECO. This guarantees short delivery channels that conserve resources, while also enabling individual responses to different regional preferences and trends. SURTECO operates in almost all countries and maintains 22 production locations in Germany, the United Kingdom, Sweden, Portugal, Canada, USA, Brazil, Indonesia and Australia [102-4].
Population growth, rising living standards and globalization open up opportunities but also entail a continuous stream of new challenges. This is because an increasing number of people are making use of a steadily decreasing pool of raw materials. If future generations are to have the same opportunities as today, this will demand a significantly more efficient and responsible approach to the resources available.
At the same time, globalization requires a higher level of motivation and performance from individuals. Change in the professional and in the social environment is being carried out with increasing frequency and intensity. This entails social changes that need to be taken into account.
Sustainable economic activity means generating profits in a socially and ecologically responsible manner. It does not mean making profits and then using them for social and environmental issues.
This concept of sustainability encompasses both environmental, economic and social interests. Sustainable business in companies therefore avoids knowingly disadvantaging third parties.
SURTECO perceives an obligation to act not only in the economic interests of the shareholders but simultaneously to conserve resources and protect the environment. Acting sustainably also entails ensuring viable development in the areas of economy, environment and social issues. This approach takes account of the needs of current generations today without robbing future generations of the opportunity to fulfil their own aspirations.
Sustainability management comprises all corporate activities related to pursuing, structuring and managing sustainable, long-term economic development that is in tune with the requirements of the environment and social issues.
By adopting the Sustainable Development Goals (SDGs) of the UN, the community of nations has made a commitment to work together and contribute jointly to improving economic, environmental and social development by 2030. The SDG Agenda is intended to decisively drive forward global activities with a set of 17 Global Goals and 169 targets. The individual goals are linked closely together and exert an influence on each other in a variety of different ways.
SURTECO believes that attainment of these goals is the mission of all the societal players involved and is therefore also a mission for commercial enterprises. Against this background, a sustainability team was defined and a globally responsible person was appointed for the topic of sustainability. The company has taken concrete measures and set goals in order to make a contribution to this important topic.
Furthermore, SURTECO is continually working towards reducing the relative consumption of energy and water use, and on the reduction of waste and emission of pollutants. The maximum level of safety for the production plants is a top priority. Products are being permanently improved.
Each of the 22 plants operated by SURTECO across the world is reviewed for potential risks and opportunities for enhancing optimization. The results of our investigations are recorded in groupwide risk controlling, analyzed for their level of urgency and relevance, and appropriate measures are then implemented as far as possible. The inspection of operational locations is carried out at regular intervals. This is conducted in accordance with local conditions and incorporates any changes that have taken place at local level.
When suppliers and partner companies are selected, SURTECO takes account of high quality and the reliability of deliveries, as well as safe and environmentally compatible production. [414-1]. When materials are procured and service providers are selected, SURTECO's preferred scenario would be to cooperate with companies which operate environmental management in conformity with the international regulations of ISO 14001 or operate under comparable conditions. Suppliers and service providers are required to comply with the same strict requirements as SURTECO in accordance with its Code of Conduct.
Furthermore, the major production facilities of SURTECO have been certified for sustainable business practices (Quality Management ISO 9001, Environmental Management ISO 14001, Occupational Health and Safety Management ISO 45001 and Energy Management ISO 50001).
SURTECO has set itself the goal of keeping our planet "worth living in". To this end, we are protecting our environment, using natural resources sparingly and avoiding or reducing the burden on people and nature. The company has defined the following goals and measures to achieve this objective:
| Goal for sustainable development |
Strategic measures | Goals |
|---|---|---|
| • Increasing the environmental efficiency of our products − Integration of sustainability in product development − Introduction of a product rating system − Qualification of our products for environmental labels • Reduction of the volume of waste and promotion of the circular economy • Reduction of the input of micro plastics into wastewater • Increasing the quota of environmentally certified sites |
• Definition of guidelines for sustainable product development • Continuous improvement of the product score (target definition after system launch) • 50 % of all products with at least one environmental label by 2025 • Increase the recycling rate to 80 % by 2025 • Certification of all plastics sites for "Zero Pellet Loss" by 2025 • 50 % of all production sites with environmental certification (ISO 14001) by 2025 |
|
| • Reduction of CO2 emissions • Increase in the share of renewable energy in procurement and production • Improvement in energy efficiency |
• Reduction of CO2 emissions by 30 % by 2030 (Scope 1 and 2) compared with 2019 • Definition of an evidence-based goal for Scope 3 emissions by 2022 • Development of strategic plans for attaining zero emission of CO2 by 2050 at all locations |
The corporate opportunities for SURTECO are available in the development of innovative products. Their composition is focused for example on fewer and increasingly renewable raw materials. The risks associated with production of these materials are being reduced and the waste generated is also being cut down. All these factors taken together encompass sustainability. Opportunities also emerge from the continuously growing size of the global population. Aside from the basic physical requirements, living space is one of the existential basics of life. The products of SURTECO meet these requirements with the surfaces for affordable and resilient household furniture.
Risks are entailed, for example, in the interruption of operations with release of pollutants harmful to the environment. These cannot be excluded even though the greatest care is exercised. It is also possible that the market fails to reward the degree of care and resources necessary, and cheaper products are preferred as a result. Up to now, SURTECO has not recorded significant risk incidents. Equally, climate change has not exerted any impacts on the business development of the company [201-2].
The corporate policy of SURTECO acts as a role model for the development of strategies by the individual business units. A key attribute of implementing the strategy of SURTECO is a management concept that includes the principles of social responsibility in decision-making and subsequent implementation. These principles are accountability, transparency, ethical conduct, respect for the interests of stakeholders, respect for the rule of law and international standards of conduct, and respect for human rights. Benchmarks for the success of this concept are the market share of SURTECO, the value added, and the quality and safety of processes, products and services. A further important corporate goal – alongside the continuous improvement in environmental protection, occupational health and safety – is the long-term return on assets, associated with sustainable corporate growth.
SURTECO concentrates its sustainability activities on areas that are logically entailed in the activity of a successful industrial company operating throughout the world. These include plant, process and product safety, environmental protection, innovation, employee responsibility and corporate governance. On the other hand, SURTECO concentrates on areas that have been identified during intensive dialogue with stakeholders as material such as job opportunities and local engagement within the framework of corporate responsibility.
The materiality matrix below records the relevant fields of action of the SURTECO sustainability policy. It summarizes the corresponding aspects with high and moderate relevance for the business of SURTECO and for the stakeholders. The matrix is the result of careful investigations – a process that is being continuously progressed. The 17 UN Sustainable Development Goals (SDG) were set as the basis for the relevant fields of action.
| SDG6 Clean water and sanitation | SDG3 Good health and well-being | |
|---|---|---|
| SDG15 Life on land | SDG4 Quality education | |
| SDG5 Gender equality | ||
| SDG7 Affordable and clean energy | ||
| SDG8 Decent work and economic growth | ||
| SDG9 Industry, Innovation and Infrastructure | ||
| SDG10 Reduced inequalities | ||
| SDG12 Responsible consumption and production | ||
| SDG13 Climate action | ||
| Importance for stakeholders | SDG16 Peace, justice and strong institutions | |
| SDG2 Zero hunger | SDG1 No Poverty | |
| SDG11 Sustainable cities and communities | SDG17 Partnership for the goals | |
| SDG14 Life below water | ||
| Importance for SURTECO |
* https://sdgs.un.org
[102-21] SURTECO engages in continuous and timely communication with its important stakeholders in the form appropriate for the individual target group. Important stakeholders for SURTECO include its shareholders, employees, suppliers, customers, residents living near the locations, government authorities and associations. SURTECO conducts conversations with stakeholders when this is necessary. Depending on the individual countries, topics and target groups, SURTECO maintains an effective exchange of views and ideas when necessary.
The trust of customers, lenders, employees, government agencies and the general public are extremely important for SURTECO. A key factor for this is the conduct in business life. SURTECO regulates this conduct in the Code of Conduct and in management principles. The Code of Conduct defines the corporate culture and the principles in dealing with business partners, employees and third parties. The Code is issued to every employee and explanations are provided. It has also been translated into all national languages in which SURTECO workers are employed. The managers of SURTECO base their actions on binding management guidelines. Respect, role model function and fairness in the treatment of employees play a very special role.
The diversity concept of SURTECO GROUP SE for the composition of the Management Board and the Supervisory Board is based on the recommendations of the German Corporate Governance Code. This states that at least one woman should be a member of the Management Board and the Supervisory Board. Unfortunately, it has not so far been possible to appoint a woman to the Management Board and the Supervisory Board although appropriate efforts have been made to achieve this.
A guiding principle is that when members of the Supervisory Board are elected or re-elected, if possible they should not be older than 63 years old. The statutory retirement age applies as the maximum age for Members of the Management Board. A competence profile is used when looking for suitable candidates for appointment or election to the Supervisory Board or Management Board. This focuses particular attention on the occupational background and the specialist qualification of the candidates.
SURTECO has based the structure of this report and presentation of the individual sustainability topics and action areas on the matrix of the Global Reporting Initiative [GRI). The reporting period is the business and calendar year 2020. This Sustainability Report from SURTECO includes all the Group companies and operational locations, if SURTECO has a shareholding greater than 50 % in these companies, and all relevant business areas and topics. An organisational overview of the SURTECO Group is presented below.
Any reporting that deviates from this structure in exceptional cases is expressly identified at the relevant place and explained appropriately. Deliberate restrictions are not made in this report. The presentation of the sustainability fields and sustainability activities covers all the key issues for SURTECO. This report was prepared with the greatest possible care and following a detailed audit. SURTECO intends to present a well-balanced picture of its sustainability efforts on this basis.
[102-10] In June 2020, the group sold its shares in Canplast Mexico S.A. de C.V. In addition, the closure of the sales locations in Turkey and Spain was initiated. Because Canplast Mexico was not consolidated as a joint venture and the sales companies only had a very limited influence on the key figures, there were no significant changes to the reporting.
| DECORATIVES | TECHNICALS | PROFILES | |
|---|---|---|---|
| SURTECO GmbH | SURTECO Beteiligungen |
Döllken Profiles | |
| BauschLinnemann Nordamerika |
SURTECO Australien |
Kröning | Döllken Polen |
| SURTECO UK |
SURTECO Asien |
DAKOR | Döllken Tschechien |
| SURTECO Italien |
SURTECO Frankreich |
Gislaved Folie | Nenplas-Gruppe UK |
| SÜDDEKOR USA |
SURTECO Russland |
||
| SURTECO Art | Proadec Portugal |
||
| SURTECO USA/Kanada |
Proadec Brasilien |
||
| Proadec UK |
|||
| Chapacinta Mexiko |
SURTECO is continuously engaged in developing the group of companies further. SURTECO is expanding its global market position through its acquisition strategy while at the same time benefiting from additional production capacities and most importantly many years of experience of employees in the individual specialist areas.
The activities of SURTECO as an employer, as a company sourcing local products and services, and as a contributor of taxes and deductions supports the local economic development in the individual regions and countries. [203-2] The value added contributed by SURTECO directly and indirectly increases the individual living standards of the population. SURTECO is not aware of any notable negative impacts of its activities on the local community.
In the business year 2020, SURTECO generated an aggregate value (sales less cost of materials, depreciation and amortization, and other expenses) amounting to around 209 million euros. This value added was allocated to employees, shareholders, and to tax expenses and lenders (interest payments). Around 32 million euros were retained in the company.
| [102-7, 201-1] Value added and allocations to the stakeholders of SURTECO | ||
|---|---|---|
| € millions | 2019 | 2020 |
| Value added | 209.3 | 208.7 |
| Employees (personnel expenses) | 186.2 | 162.6 |
| Shareholders (dividends) | 8.5 | 0 |
| Government (taxes) | 6.5 | 9.5 |
| Lenders (interest) | 7.3 | 4.8 |
| Remaining in the company | 0.8 | 31.8 |
SURTECO observes and analyses all areas that could exert negative effects on the environment and on the efficient use of resources. These include:
SURTECO draws approximately 38 % of its water from the public water pipeline grid and around 62 % from its own wells, or from rivers, [303-2] although the amounts are not of an order of magnitude that will exert a notable negative impact on the individual water system. Most of the water is used for cooling or cleaning purposes and it is discharged back into the public drainage system or even rivers after it has been used and following appropriate treatment and processing. Only a very small proportion of the volume of water withdrawn is associated with the manufacture of inks and varnishes.
During the reporting year, the volume of water used or consumed by SURTECO amounted to 0.363 million cubic metres following 0.356 million cubic metres in 2019. [303-3]
Recirculated cooling water is also used as a coolant at some locations and this water is then conducted back into circulation. This environmentally compatible cooling procedure is used in association with the technical possibilities and avoids withdrawing significant quantities of fresh water.
| Water usage of the SURTECO Group | ||
|---|---|---|
| in cubic metres (m3 ) |
2019 | 2020 |
| Total | 355,569 | 363,060 |
| [303-1] of which from the public water pipeline | 140,370 | 139,244 |
| [303-1] of which from rivers or our own wells | 215,199 | 223,816 |
The water used by SURTECO is returned to circulation in different ways according to the amount of pollution. Only minimally contaminated service water is returned to the public drainage system. More polluted wastewater is purified at the company's own treatment plants and then returned to rivers or the public drainage system. At some locations that do not have their own treatment plant, significantly polluted water are collected by tankers. This water is treated professionally by external service companies. As part of an official review, the wastewater from a site was classified as a higher hazard level and has been disposed of accordingly since then.
The group of companies has one microbiological exhaust-air purification system. Significant amounts of water evaporate in this system and they are released as water vapour into the atmosphere. Finally, small volumes of water are integrated into relevant products or used for irrigating the landscaped areas outside.
During the reporting year, the volume of wastewater generated by SURTECO amounted to 0.331 million cubic metres compared with 0.335 million cubic metres in the previous year. [306-3] SURTECO did not record any unintentional releases during the course of the reporting year.
| 2020 | |
|---|---|
| 335,380 | 330,994 |
| 100,869 | 87,597 |
| 11,189 | 12,325 |
| 216,210 | 224,958 |
| 7,112 | 6,114 |
| 2019 |
[304-1] Most of SURTECO's production sites are located in industrial zones or other business parks, although SURTECO also has some operational premises close to protected nature conservation areas. Up to now, no measurable impacts have been identified on biodiversity or the ecosystem. SURTECO defines strict rules for plants located near flowing bodies of water so that production does not lead to any recordable impacts on the surrounding fauna and flora. [304-2]
If plants operated by SURTECO are directly adjacent to areas of forest, steps are taken to ensure that no significant negative impacts are exerted on fauna and flora by the type of plant and the business activity. [304-4] The business operations of SURTECO do not exert any identifiable impact on animal and plant species recorded on the Red List of the IUCN (International Union for Conservation of Nature and Natural Resources), which are at risk of extinction.
The plants of SURTECO require energy, primarily in the form of electricity for production (power units used for extruders, printing machines, calenders, agitators, pumps, other process equipment, and measuring and control technology) and in the form of natural gas for heat generation and for operating drying and thermal exhaust-air purification plants. Energy is an important production and cost factor for SURTECO. For this reason, SURTECO adopts a very efficient approach to the use of this resource.
| [302-1/2] Energy consumption of the SURTECO Group | ||
|---|---|---|
| Kilowatt hours (kWh) | 2019 | 2020 |
| Total | 226,513,192 | 217,651,406 |
| [302-1] of which generated internally | 111,593,434 | 107,730,072 |
| [302-2] of which sourced externally | 114,919,758 | 109,921,334 |
Direct energy consumption, i.e. the use of primary energy fuels, takes place at plants with their own power stations or systems for generating energy. Indirect consumption results primarily from sourcing electricity. Most of our own power stations do not produce renewable energy. However, photovoltaic plants at our locations in Portugal and Australia generate solar electricity. The quantity produced in 2020 amounted to 508,634 kilowatt hours (kWh) after 532,766 kWh in 2019. In addition, renewable energy is purchased from external providers as part of their energy mix. Informative disclosures on energy intensity – i.e. energy consumption in relation to production volume – are not possible at SURTECO owing to the very broad product portfolio and continual changes in the material mix. Accordingly, due to the large number of different products each with completely different energy requirements, regular changes in the product portfolio lead to significant fluctuations in the calculated energy intensity, which distort the picture of the actual energy efficiency. A relationship between energy and sales does not reflect the actual energy efficiency because here frequent fluctuations in exchange rate and market price do not permit meaningful analysis along a timeline. SURTECO therefore only reports on overall energy consumption, corrected by company purchases and sales.
Consequently, the energy consumption in 2020 fell throughout the Group at SURTECO by 3.9 % to 217.7 million kilowatt hours (kWh) after 226.5 million kWh in the year before.
In spite of efforts directed towards environmental protection, emissions into the atmosphere cannot be entirely avoided. They also constitute side effects of production processes such as waste or consumption of resources and raw materials. Emissions are subject to limit values that are defined by operating licences for plants issued by government agencies. SURTECO monitors compliance with these limit values at individual locations by taking its own measurements.
The emission of CO2 caused directly (Scope 1) arises as a result of the burning of fossil fuels by the company's own power plants or by emissions caused within the organization, for example heating energy or thermal exhaust-gas purification. Emission values were calculated on the basis of the energy sources used, such as gas or heating oil.
The indirectly caused emissions of CO2 arise from external energy consumption, mostly in the form of electricity ("Scope 2"). Either the emissions permits of energy suppliers or (if they are not available) country-specific conversion factors are used for purposes of calculation, which are determined from the infrastructure available in the individual country.
Further data on indirect emissions of greenhouse gases (Scope 3) other than those recorded (for example due to business trips or as a result of intermediate products) are not collected yet.
The total volume of CO2 emitted by SURTECO or caused by its operations, including direct and indirect emissions, amounted to 46,720 metric tons of CO2 in 2020 (2019: 53,282 metric tons).
Substances with the potential for ozone depletion are used exclusively in closed systems, mostly in cooling systems. Most of the coolants used by SURTECO do not have any ozone-depleting potential. Other significant emissions from volatile organic compounds (VOC) amounted to 512 metric tons in 2019 and 311 metric tons in 2020. These values were calculated from site-specific data.
| Emissions of the SURTECO Group into the air | ||
|---|---|---|
| 2019 | 2020 | |
| [305-1/2] Greenhouse gases (in mt of CO2 ) Scope 1 Scope 2 |
53,282 17,141 36,141 |
46,720 17,165 29,555 |
| [305-7] Other significant air emissions (in mt) | ||
| VOC | 512 | 311 |
Residential areas are located directly adjacent to some locations. Even within large industrial parks there are neighbours due to the large number of different operators. Naturally, protecting our employees against harmful noise emissions is equally important as the protection of our neighbours. SURTECO therefore continuously makes strenuous efforts to reduce noise pollution further.
Noise is primarily created in the production plants and by loading and transporting goods by road and rail. A noise profile typical of the individual surroundings is generated together with the sound sources produced within the environment. Complaints about noise are quickly investigated.
In order to provide employees with effective protection, SURTECO ensures that the noise pollution at permanent workplaces is always maintained below the individually applicable (statutory) threshold values. This is achieved by modifying or encapsulating machines, by enclosures and procuring low-noise machines or electric motors. In working areas where these threshold values are exceeded, employees have to wear ear defenders, and other noise abatement measures have to be evaluated. Plants and workstations are regularly checked with noise measurements. If values have increased by comparison with previous measurements, the causes are identified and protective measures are initiated.
[306-2] The waste generated at SURTECO generally resembles domestic waste such as paper, wood, plastics and metal. Hazardous waste such as liquids and sludges polluted with chemicals is also produced. Building rubble following modification works on buildings is also generated. The avoidance of waste takes precedence over recovery and disposal of waste at SURTECO. Keeping the generation of waste to a minimum is therefore a top priority already at the stage of development and manufacture of products. Unavoidable production waste is subsequently professionally recovered or disposed of. All waste is recorded and described. Professional disposal is tracked and documented in the course of internal recording.
The volumes of waste are recorded separately by type. A proportion of the waste (about 10,216 metric tons) was recycled or processed. Only appropriate disposal companies holding a government licence for the specific waste are commissioned with carrying out disposal. Since the limits vary quite significantly across the world, a flat-rate amount for the total volume of waste including recycled waste is reported in order to avoid distortions. According to this disclosure, the total volume of waste generated by SURTECO amounted to 24,425 metric tons in 2020 after 34,674 metric tons in 2019.
| Volume of waste generated in the SURTECO Group | ||
|---|---|---|
| Waste in metric tons | 2019 | 2020 |
| Hazardous waste | 910 | 927 |
| Non-hazardous waste | 19,482 | 13,282 |
| Recycled waste | 14,282 | 10,216 |
SURTECO believes it is important to offer employees a professional working environment in order to promote the health of its people on the one hand and to boost the operating performance of the company overall. A detailed explanation of the corporate principles is therefore given to the workforce for this purpose. The abilities and motivation of each individual employee, their commitment to the quality of work outcomes and observance of environmental protection, and their occupational health and safety are fostered individually and within teams. SURTECO is dedicated to supporting its employees in every possible way to achieve these aims. Not least for this reason, a top priority is involvement of employees in a broadly-based and in-depth integration within a permanent continuous improvement process.
Quality, environmental protection, occupational health and safety constitute a challenge for the initiative and responsibility of employees; this is reflected in:
The Group management of SURTECO, the site management teams and all employees are integrated in a continuous improvement process. Alongside training sessions and qualification measures, the regulations, processes, rules and instructions included in the management system form the basis that enables SURTECO to ensure that employees are able to carry out their work. This platform allows them to review their own actions and results, and they are also able to identify potential. Risks and opportunities are identified in this way and appropriate measures are initiated.
Environmental protection and safety are integral components of the responsibility of the Group management, site managers, departmental and operating managers, and all office staff. All employees have an obligation to comply with regulations in their area of activity, to develop procedures and working practices, and to ensure that important information is passed on and the necessary documentation is put in place.
Supervisors promote a sense of responsibility and commitment to making improvements. Employees are familiar with their functions and with the relationship between those functions and corporate policy, strategy and objectives. All participants are involved in project identification. Performance-oriented team work is deliberately fostered.
SURTECO offers its employees additional packages at the German locations that are intended to provide them with a more comfortable and sustainable working day. These include baskets of fruit provided free of charge, water dispensers located in the departments, and subsidies for fitness studios and leased e-bikes.
Diversity defines the corporate culture at SURTECO. Employees from more than 40 different countries are employed within the Group across the world. SURTECO supports employee development through individual and regular training sessions in all Group segments in order to retain the positive and creative effects of this diversity. During the reporting year, 1,296 employees took part in various training and career development measures.
On 31 December 2020, group-wide fluctuation [401-1] amounted to 8.7 % after 7.1 % in the previous year. The average length of service was 12.8 years worldwide in 2020 (2019: 12.3) and the average age of all employees amounted to 42.7 years after 41.9 years in the previous year.
| [102-7] Employee structure of the SURTECO Group | |||
|---|---|---|---|
| 2019 | 2020 | ||
| Employees | Total number | 3,174 | 3,052 |
| Men | 2,618 | 2,518 | |
| Gender | Women | 556 | 534 |
| up to 29 years | 16% | 17% | |
| Age | 30 to 49 years | 48% | 47% |
| 50 years and older | 36% | 36% | |
| Nationality | German | 50% | 49% |
| Portuguese | 8% | 9% | |
| Brazilian | 5% | 7% | |
| US American | 5% | 5% | |
| British | 6% | 5% | |
| Canadian | 4% | 4% | |
| Swedish | 4% | 4% | |
| Turkish | 4% | 3% | |
| 32 other nationalities | 14% | 14% | |
SURTECO guarantees the necessary level of safety and its continuous improvement with a variety of audits, reviews and checks. Production plants and other technical installations, warehouses, and laboratories are recorded at all the locations. The realized safety concepts are put on the test stand during the course of the inspections. If there are any nonconformities with the standard, appropriate corrections are carried out that are agreed with the responsible process owners. Their implementation is then checked at regular intervals.
Employees are informed about the risks entailed in their work as part of health and safety in the workplace. Systematic checks are carried out at workstations where hazardous substances are handled. The efforts to avoid occupational accidents are a constituent element of production activities at SURTECO and require supervisors to work continuously at encouraging the motivation of employees. Nevertheless, the number of occupational accidents can be continuously reduced, even if they cannot be entirely avoided.
During the course of the reporting year 2020, 118 occupational accidents with an absence of at least one working day occurred throughout the Group. The number of days of absence reached 1,691 days.
SURTECO maintains permanent contact with its customers [417-1]. The latter receive support in applying and using the products. Part of the service range also encompasses comprehensive product information and this focuses in particular on optimum application.
The Group's corporate goal is to rank among the world's most attractive suppliers in the furniture industry. With this end in mind, SURTECO is consistently improving its products and services not least in the interests of sustainability. Quality is therefore primarily defined by assessment criteria specified by customers for SURTECO. These need to be complied with as cost-effectively and completely as possible. SURTECO concentrates primarily on [416-1]:
SURTECO supports the sales success of customers in their markets through the quality and performance of their products. This creates the platform for SURTECO's own success. Generally speaking, SURTECO strives to achieve cooperation based on partnership with current and future customers. A cooperative relationship permits a comprehensive understanding of the relevant markets and early identification of new requirements for products and procedures. This is based on key objectives for research and development. Consequently, customers will receive important information and as necessary assistance in ensuring safe and environmentally compatible processing, storage, transport and disposal of products [416-1].
SURTECO manufactures products that meet the basic human requirements in an array of application areas, improve the quality of life and safeguard and enhance living standards. The research, development and production departments are continuously working on complying with and indeed exceeding expectations for the quality and safety of products. An equally important aim is to avoid or reduce negative impacts on the environment. The printed decor papers, the finish foils and melamine edgebandings from SURTECO are supplied as FSC®-C104547 (Forest Stewardship Council®) and PEFC™/04-31- 2473 (Programme for the Endorsement of Forest Certification) certified products. The Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification Schemes (PEFC) are international forestry certification systems to safeguard sustainable forestry management while guaranteeing environmental, social and economic standards.
[308-1/2] As part of a comprehensive approach to sustainability, SURTECO also requires suppliers and service providers to comply with the agreed attributes of services and to observe and implement aspects relevant to safety and the environment that are equivalent to those applicable at SURTECO. The procedure for selecting, reviewing and assessing suppliers is intended to guarantee that the goods and services purchased are in accordance with these requirements. Suppliers are reviewed on this basis for reliability, quality, service and price-performance ratio, and in relation to the benchmarks of the SURTECO Code of Conduct, as well as in relation to social aspects and environmental awareness.
SURTECO procures raw materials, packaging materials, production goods, services and other input factors such as energy throughout the world. Generally speaking, SURTECO purchases directly from the corresponding manufacturers and the company is not particularly dependent on any single supplier. The cost of materials ratio at 45.5 % in 2020 indicates that the procurement of raw materials constitutes the biggest expense item for SURTECO. Around 78 % of the total cost of materials is attributable to the three most important raw materials paper, plastics and chemical additives
[205-1] Risks of corruption at SURTECO are investigated as part of the internal audits carried out on a continuous basis. In addition, SURTECO has set up a whistleblower system at all locations worldwide, in which employees and external parties have the opportunity to report violations anonymously. Up to now, no business transactions have been identified that would have provided any occasion for initial suspicion. [205-3] [417-2/3] [419-1] In the reporting year, SURTECO was not aware of any cases in which SURTECO was accused of not having materially complied with legislation, regulations and voluntary rules on conduct. [205-2] Against this background, explicit anti-corruption training sessions have not yet been carried out.
As a consequence, no substantial financial penalties or non-monetary sanctions are known on account of noncompliance with legal regulations. SURTECO places great emphasis on fair treatment in dealings with competitors, suppliers and customers. [206-1] In the reporting year, there were no lawsuits relating to anti-competitive behaviour, antitrust and monopoly practices, and no lawsuits or grievances in respect of statutory provisions on unfair competition.
The exhaust air purification at one location was canceled for two days in 2020 due to a technical defect. The responsible authorities were informed immediately and they also monitored the process. At no time was there a health hazard. In the reporting year 2020, [307-1] SURTECO did not have to pay any significant financial penalties and was not subject to any non-monetary sanctions on account of non-compliance with legal regulations relating to the environment.
Investor Relations and press office T: +49 (0)8274/9988-508 F: +49 (0)8274/9988-515 [email protected] www.surteco-group.com
Johan-Viktor-Bausch-Straße 2 86647 Buttenwiesen Germany
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.