SUSTAINABILITY POSITION PAPER

A FACT BASED DRIVE FOR LASTING IMPACT

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INTRODUCTION

Trespa uses a strategic framework to steer its business towards durable long-term growth. This framework has four key elements: license to operate (LTO), market, cash & cost and capabilities. The thinking behind these elements is to control non-business risk, grow the business, maximize the contribution of growth and ensure that the right skills are on board for successful execution of all plans.Within these elements, the priority lies with LTO, which includes topics such as: ■ Health and Safety of employees and the

local community■ Product compliance to meet regulatory

requirements■ Transparent (financial) reporting and

appropriate behaviour by employees■ Sustainability and the preservation of the

Environment

Sustainability became part of Trespa’s LTO strategy in 2010. As an anchor and guideline to our efforts on sustainability, we use the ISO 26000 standard ‘Guidance on Social Responsibility’. Many of the topics that we consider to be our LTO priorities are incorporated in this ISO standard under one of the six so-called core subjects, ranging from “Human Rights” to “Community Involvement and Development” 1.

We have selected “The Environment” as a starting point for our sustainability efforts. This core subject covers the next four topics:

■ Prevention of pollution■ Sustainable resource use■ Climate change mitigation and

adaptation■ Protection and restoration of the natural

environment

TRESPA IS A GLOBAL, LEADING MANUFACTURER OF HIGH PRESSURE LAMINATE PANELS FOR USE IN EXTERIOR FACADE AS WELL AS IN SCIENTIFIC FURNITURE APPLICATIONS.

1 For more information about the ISO 26000 norm, see Appendix 1 and http://www.iso.org/iso/home/standards/iso26000.htm

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To measure progress in these four fields we have selected life cycle assessment (LCA) as an objective method to assess environmental impact. The first LCA showed that the main impact categories were imported raw materials and energy use on site. Consequently Trespa decided to define tangible targets for these two topics to start sustainability efforts. These two parameters were tightly monitored and Trespa reported on progress in previous papers. In this fourth position paper, Trespa will review the impact of these sustainability initiatives over the period 2011-2015.

Meanwhile, an external party (Thinkstep) performed a number of LCA studies to measure progress at an overall company level. The most recent study (on 2015 data) showed improvements versus 2011. However, is has been difficult to link these results

directly to actions in the factories. We believe updated databases and improved accuracy of data have had a big impact on Trespa’s LCA – both positive and negative.

To increase transparency with respect to LCA results and modelling thereof Trespa has recruited an in-house LCA capability.

This paper consists of five chapters:1 Philosophy and Beliefs2 Sustainability Policy3 Progress on site efforts (2011-2015)4 Measuring environmental impact (LCA)5 Sustainability approach 2017-2020

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1 PHILOSOPHY AND BELIEFS

SUSTAINABILITY PROVIDES TRESPA WITH CHALLENGES AS WELL AS NEW OPPORTUNITIES

COMMON SENSE

Trespa will use a common sense approach in addressing the topic of sustainability. Our sustainability strategy is based on thorough assessment of environmental impacts.

OBJECTIVE AND FACT BASED AS WELL AS

EFFICIENCY IN USE Trespa believes in objective and fact based analysis and has executed a cradle-to-gate LCA to map its environmental footprint along all relevant parts of the value chain. Trespa trusts that the LCA according to ISO 14040/44 is currently the most objective and fact based method to assess its environmental footprint. Trespa executed an LCA and will use the results as a basis for new improvement initiatives. Trespa will continue to monitor alternative available methodologies and adopt ones that are understandable, transparent and standardized and that promote lasting improvements.

Output from LCA assessments are used in so called Environmental product declarations (EPD) which are issued by notified bodies for the Trespa Exterior product range. These documents show the impact

of the product in question when looking at the environmental performance of a complete building. Rear-ventilated façades, which are the main field of application of Trespa’s exterior panels, bring various sustainability benefits to a building; energy saving, healthy indoor climate, low maintenance as well as lifetime extension.

INTEGRAL PART OF BUSINESS PLANNING

AND REVIEW CYCLE

Trespa will set priorities based on the LCA and agree realistic but challenging targets to achieve change. All sustainability initiatives have been integrated into Trespa’s rolling business planning and review cycle. The review cycle comprises annual target setting in the budgeting process, a monthly management review of progress measured in key performance indicators and inclusion of a sustainability paragraph in the annual report.

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ANY CHANGE SHOULD START WITH THE COMPANY ITSELF. TRESPA’S APPROACH TO SUSTAINABILTY IS FRAMED BY THREE BASIC PRINCIPLES

2 SUSTAINABILITY POLICY

DO NO HARM

Trespa will comply with safety, product and sustainability regulations and guidelines set by the countries in which it operates. In addition, Trespa is aiming at opportunities to minimize the environmental impact of its operations and products.

DO GOOD

Next, Trespa will support its suppliers and customers to realize their sustainability challenges. Trespa is looking for opportunities that maximize the sustainability contribution of its products in the value chain, including their end-use, e.g. ventilated facade cladding. The environmental properties of Trespa’s products are mentioned in the EPD’s which are available to the market.

Currently, EPDs are available according to the French (FDES), German (IBU) and British (BREEAM) assessment schemes based on the 2009 LCA results. The process to revise and update these EPD’s has started.

Moreover, Trespa will continue to look for opportunities and initiatives to support and promote longer term sustainability beyond the direct scope of its current operations.

DO BETTER

Finally, Trespa believes that investing in sustainability should be beneficial to the long term position of the company. Many sustainability challenges constitute good business opportunities that will allow the company to continue to grow.

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To start sustainability efforts in the factory, Trespa performed a first LCA in 2010. Three clear focal points for Trespa emerged:1 Upstream contributions from raw

material, production and transport2 Primary energy use for Trespa’s

production processes3 Onsite emissions originating from resin

production and impregnation

These topics were made tangible for operations with a goal to reduce scrap / waste and become more energy efficient. To ensure progress and a positive impact on Trespa’s environmental profile, Trespa has added the following targets to its business planning.

REDUCTION OF UPSTREAM

CONTRIBUTIONS■ Saving on material consumption by

reducing the relative amount of paper waste (in kg/ton HPL) by 15% at the end of 2015 compared to end of 2011.

■ Detailing the specific contributions of chemicals and of woodchips with Trespa’s suppliers.

REDUCTION OF PRIMARY ENERGY

CONSUMPTION■ Trespa is aiming at reducing energy

consumption and has set an energy efficiency improvement target of 8% by the end of 2015 compared to the reference year.

3 PROGRESS ON SITE EFFORTS 2011 - 2015

FROM LCA TO TANGIBLE RESULTS IN THE FACTORY

2011 2012 2013 2014 2015 2015Target

Rel.electricitycons. 100,0 104,2 105,1 106,4 101,0 92,0Rel.gascons. 100,0 100,9 107,0 105,0 111,8 92,0Rel.paperwaste 100,0 107,8 103,1 101,0 105,3 85,0

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The following charts show the trends of energy efficiency and relative waste generated.

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RESULTS

Progress for the period 2011-2015, including the targets, is depicted in the graph on page 6.

Relative energy consumption showed an increasing trend in the first years. In the year 2015 a significant step was made with respect to electricity consumption, however it was still above 2011 levels. This improvement is explained by changes to the dry-forming line in that year. Although LED lighting was installed and older lines were closed, this anticipated positive impact was not reflected in the results.

Reduction of gas consumption was less successful and increased due to the switch to rented steam boilers and a less efficient operation of waste gas combustion. The modified set-up of the dry-forming line caused an increase in gas consumption in 2015. Overall the reduction in electricity usage is offset by an increase in gas consumption. Monthly power and gas consumption reporting for the big consumers in the factory has been introduced to provide more detailed analysis.

Waste reduction initiatives in the line were countered with additional waste from trials of new products and processes, which were higher in 2015 than 2011. However, we see good momentum in the factory towards waste reduction. There is a coordinated

approach towards initiatives and a number of validated projects are in place. Increased awareness of material savings at all operational levels of Trespa should achieve the scrap reduction targets. A daily waste management system has been introduced to support this.

Trespa will continue to focus on stabilizing its production processes and to search for further energy efficiency projects. Trespa foresees a reduction of gas usage with the completion of a new steam boiler system. Also a new waste gas incinerator is designed and will be installed to provide heat recovery. In line with the Multi Year Agreement (MJA3) of the Dutch government, a program was defined, documented as the Energy Efficiency Plan (EEP 2013-2016), with the ambition to reduce energy consumption by 2% annually.

Next to these day-to-day actions, Trespa puts a lot of effort into improving the accuracy of data. Trespa, with the help of Thinkstep, bi-annually updates her energy and mass balances for the HPL manufacturing process.

It is very difficult to quantify gains of these smaller projects without proper understanding of the dependency of the processes. Continued awareness and a disciplined approach create a more solid platform to pursue step changes – providing a positive impact on Trespa’s LCA.

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The LCA covers the total impact of the manufacturing footprint including the extraction and processing of raw materials. Transportation of raw materials to the manufacturing site is accounted for. The analysis excludes the effects of the use and end of life phases which have to be analyzed on a specific product level. Results were based on the production of 1 ton of HPL. In consultation with a leading sustainability consultant (Thinkstep), six key environmental indicators were

selected for the LCA. These are impact categories commonly agreed upon as most relevant to include in Environmental Product Declarations. These indicators cover emissions of greenhouse gases that contribute to climate change, emissions of substances with a negative impact on the environment (air, water and soil) and depletion of energy resources both non-renewable and renewable. The LCA indicators are explained in Appendix 2.

4 MEASURING ENVIRONMENTAL IMPACT

RESULTS OF LCA 2015 FROM CRADLE TO GATE PERSPECTIVE

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Per ton HPLEnvironmental

impact dimensions

Units 2011 LCA 2013 LCA 2015 LCA delta 11-15

Climate Change Carbon footprint (GWP) Kg CO2-Equiv. 1.560 2.273 1.250 -19,9%

Primary energy consumption

Total Primary Energy GJ 73,3 56,7 83.9 14,5%

Renewable energy share % 27% 17% 32 18,5%

Emissions to air, water and soil

Acidification (AP) Kg SO2-Equiv. 10,0 5,9 5.4 -46,0%

Eutrophication (EP) Kg P-Equiv. 1,1 0,7 2.92 165,5%

Ozone Depletion Potential (ODP) Kg R11-Equiv. 8,9E-05 9,5E-06 7,40E-07 -99,2%

Photochemical Ozone creation

(POCP)Kg Ethene-Equiv. 1,0 0,8 0.72 -29,4%

When comparing the results of year 2011 and year 2015, significant differences across all categories can be noticed. Such differences stem from a combination of factors: 1 Main impact changes come from different

background data: updated versions of the Gabi database that are used and refinement of the model where supplier’s data are used instead of generic data.

2 The 2015 LCA also included more accurate information of Trespa’s processes for saturating Kraft paper and paper mix used in the manufacturing process.

3 Some effects could also be related to changed assessment methods: factors used to calculate environmental impacts are based on scientific models, which go through updates.

The many small actions completed over the period 2011-2015 should have made a positive contribution. To define the contribution of each of these factors and be able to understand how much of the shown changes are to be attributed to our efforts, the 2011 model should go through a calibration, where the same background data and assessment method as the 2015 study are used. Due to a lack of access to the LCA model, such calibration could not be performed.

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LOOKING FOR STEP-CHANGE PROJECTS WITH A SERIOUS IMPACT ON OUR SUSTAINABILITY FOOTPRINT

5 SUSTAINABILITY APPROACH 2017-2020

Structural improvement takes longer to materialize and require better understanding of the processes with respect to their impact. A dedicated capability was hired to increase the understanding of LCA. Using our own models detailed studies can be performed in a more structural manner. With the capability to understand the impact of our processes, Trespa wants to identify the real factors that impact on the categories as mentioned in our LCA.

Once these factors are identified and an improvement plan is made a new position paper will be published. The paper is expected to be ready early 2018 containing

our approach including targets for the next years up to 2022.Current insight in our LCA, taught us that a different functional unit should be used. From now on, Trespa will change the functional unit from tons to m2 as this is a better reflection of the application of the product.

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Guidance on Social Responsibility from ISO 26000 including the priority areas

APPENDIX 1: ISO 26000 INFORMATION

CORE SUBJECTS AND ISSUES ADDRESSED IN SUB-CLAUSE

Core subject: Organizational governance 6.2

Decision-making processes and structures 6.2.3Core subject: Human rights 6.3

Issue 1: Due diligence 6.3.3Issue 2: Human rights risk situations 6.3.4Issue 3: Avoidance of complicity 6.3.5Issue 4: Resolving grievances 6.3.6Issue 5: Discrimination and vulnerable groups 6.3.7Issue 6: Civil and political rights 6.3.8Issue 7: Economic, social and cultural rights 6.3.9Issue 8: Fundamental rights at work 6.3.10

Core subject: Labour Practices 6.4Issue 1: Employment and employment relationships 6.4.3Issue 2: Conditions of work and social protection 6.4.4Issue 3: Social dialogue 6.4.5Issue 5: Human development and training in the workplace 6.4.7

Core subject: The environment 6.5Issue 1: Prevention of pollution 6.5.3Issue 2: Sustainable resource use 6.5.4Issue 3: Climate change mitigation and adaptation 6.5.5Issue 4: Protection and restoration of the natural environment 6.5.6

Core subject: Fair operating practices 6.6Issue 1: Anti–corruption 6.6.3Issue 2: Responsible political involvement 6.6.4Issue 3: Fair competition 6.6.5Issue 4: Promoting social responsibility in the sphere of influence 6.6.6Issue 5: Respect for property rights 6.6.7

Core subject: Consumer issues 6.7Issue 1: Fair marketing, information and contractual practices 6.7.3Issue 2: Protecting consumers’ health and safety 6.7.4Issue 3: Sustainable consumption 6.7.5Issue 4: Consumer service, support, and dispute resolution 6.7.6Issue 5: Consumer data protection and privacy 6.7.7Issue 6: Access to essential services 6.7.8Issue 7: Education and awareness 6.7.9

Core subject: Community involvement and development 6.8Issue 1: Community involvement 6.8.3Issue 2: Education and culture 6.8.4Issue 3: Employment creation and skills development 6.8.5Issue 4: Technology development 6.8.6Issue 5: Wealth and income creation 6.8.7Issue 6: Health 6.8.8Issue 7: Social investment 6.8.9

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CLIMATE CHANGE PARAMETERS:

GWP: Global Warming Potential (carbon dioxide equivalents): In addition to the natural mechanism, the greenhouse effect is increased by human activities. This results in a warming effect at the earth’s surface.

EMISSIONS PARAMETERS

AP: Acidification Potential (sulphur dioxide equivalents):The acidification of soils and waters occurs predominantly through the transformation of air pollutants intoacids. This leads to a decrease in the pH-value of rainwater and fog from 5.6 to 4 and below. EP: Eutrophication Potential (phosphate equivalents): Eutrophication is the enrichment of nutrients in a certain place that leads to a sharp decrease in oxygen availability in the local environment system. Eutrophication can be aquatic or terrestrial. Air pollutants, wastewater and fertilization in agriculture all contribute to eutrophication.

ODP: Ozone Depletion Potential (CFC 11 equivalents): The ozone layer in the stratosphere (10-50 km height) is essential for life on earth. It absorbs short-length UV radiation which is important for preventing both earth temperature rise and skin cancer risks. Anthropogenic emissions such as CFCs and HCFC emissions contribute to the depletion of ozone in the stratosphere.

POCP: Photochemical Ozone Creation Potential (ethylene equivalents): Photochemical ozone creation in the troposphere (closest to the earth's surface), also known as summer smog, is suspected to damage vegetation and material. High concentrations of ozone are also toxic to humans.

APPENDIX 2: KEY ENVIRONMENTAL INDICATORS

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RESOURCE DEPLETION PARAMETERS

PED: Primary energy usage Primary energy is energy found in nature that has not been subjected to any conversion or transformation process (such as primary energy content in crude oil, natural gas, and biomass). Energy that is already converted is e.g. steam or other thermal energy derived in any technical process, or electricity will require primary energy to provide this “delivered energy”. Primary energy demand indicates amount of energy that system under assessment has extracted from the natural environment. It also includes energy stored in the final product.

Share of renewable energyRenewable primary energy is a part of primary energy that can be naturally replenished (e.g. energy embedded in the wood material or from wind or hydro electricity), while the non-renewable energy comes from non-renewable resources such as fossil fuels or uranium.

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GENERALThese terms apply to the use of this document and such use automatically means that the other party agrees to these terms. The information provided by Trespa International B.V. (“Trespa”) in this document is solely indicative. Trespa is unable to warrant the accuracy and completeness of this information. Trespa may change the information included in this document at any time and without further notice. Trespa’s customers and third parties must ascertain that they have the most recent document (for the most recent version, please consult: www.trespa.com). No rights can be derived from the information provided; the use of the information is at the other party’s risk and responsibility. Trespa does not warrant that the information in this document is suitable for the purpose for which it is consulted by the other party. This document does not contain any design, structural calculation, estimate or other warranty or representation that customers and third parties may rely on. This document does not guarantee any properties of Trespa products. Colours used in Trespa’s communications (including but not limited to printed matter) and in samples of Trespa’s products may differ from the colours of the Trespa products to be supplied. Samples are not intended for use in product tests and are not representative of characteristics of the Trespa products. Trespa’s products and samples are produced within the specified colour tolerances and the colours (of production batches) may differ, even if the same colour is used. The viewing angle also influences the colour perception. Metallics panels feature a surface whose colour appears to change based on the direction from which it is viewed. The specified colour stability and colour specifications relate only to the decorative surface of the Trespa products, not to the core material and samples of the Trespa products. Trespa products are delivered ex-works with straight, sawn sides. Customers and third parties must have a professional adviser inform them about (the suitability of) the Trespa products for all desired applications and about applicable laws and regulations. Trespa does not warrant the above. The most recent version of the current delivery programme and the Material Properties Datasheet can be found at www.trespa.info. Only the information in the most recent and valid Material Properties Datasheet should be used to select and provide advice regarding Trespa products. Trespa reserves the right to change (the specifications for) its products without prior notice.

LIABILITYTrespa is not liable (neither contractual nor non-contractual) for any damage arising from or related to the use of this document, except if and to the extent that such damage is the result of wilful misconduct or gross negligence on the part of Trespa and/or its management. The limitation of liability applies to all parties affiliated with Trespa, including but not limited to its officers, directors, employees, affiliated enterprises, suppliers, distributors, agents, and representatives.

GENERAL CONDITIONSAll oral and written statements, offers, quotations, sales, supplies, deliveries and/or agreements and all related activities of Trespa are governed by the Trespa General Terms and Conditions of Sale (Algemene verkoopvoorwaarden Trespa International B.V.) filed with the Chamber of Commerce and Industry for Noord- en Midden- Limburg in Venlo (NL) on February 20th, 2015 under number 24270677, which can be found on and downloaded from the Trespa website, www.trespa.com/documentation. All oral and written statements, offers, quotations, sales, supplies, deliveries and/or agreements and all related work of Trespa North America, Ltd. governed by the Trespa North America General Terms and Conditions of Sale, which can be found on and downloaded from the Trespa website, www.trespa.com/documentation. A copy of these general conditions of sale will be provided free of charge on request. All general terms and conditions other than the conditions mentioned above are dismissed and do not apply, regardless of whether such terms and conditions are referred to on requests for offers, offer confirmations, stationery and/or other documents of the other party, even if Trespa does not expressly object to such terms and conditions.

INTELLECTUAL PROPERTYAll intellectual property rights and other rights regarding the content of this document (including logos, text and photographs) are owned by Trespa and/or its licensors. Any use of the content of this document, including distribution, reproduction, disclosure, storage in an automated data file or the dispatch of such a file without Trespa’s prior written consent is explicitly prohibited. ® Trespa, Meteon, Athlon, TopLab, TopLabPLUS, TopLabECO-FIBRE, TopLabVERTICAL, TopLabBASE, Virtuon, Izeon, Pura NFC, Volkern, Trespa Essentials and Mystic Metallics are registered trademarks of Trespa.

QUESTIONSShould you have any questions or comments, please do not hesitate to contact Trespa.

VERSION 4.1 ■ BROCHURE CODE I2501 ■ DATE 11-2017

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CUSTOMER SERVICE DESK ASIA/PACIFICTel: +86 (0) 21 5465 8388Info.APAC@Trespa.com

TRESPA DESIGN CENTRE WEERTWetering 206002 SM WeertThe NetherlandsTel: +31 (0) 495 458 845TDC.Weert@Trespa.comwww.trespa.com/tdc TRESPA DESIGN CENTRE BARCELONACalle Ribera 5, 08003 BarcelonaSpainTel: +34 (0) 93 295 4193TDC.Barcelona@Trespa.com www.trespa.com/tdc

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