Sika has pledged to gear its actions and strategies to globally accepted principles in the areas of human rights, labor law, environmental protection and anticorruption policy. For many years, the company has been actively involved in the chemical
industry’s Responsible Care sustainability program. It is also a cosignatory and a member of the UN Global Compact corporate responsibility initiative, the Carbon Disclosure Project and the World Business Council for Sustainable Development.

Human rights are part of the Code of Conduct and the Policies and Principles of the company.

The General Managers are obligated to strictly adhere to legal practices and to supervise the subsidiary accordingly. Also, they are responsible for taking preventative action. Human rights reviews are included in the internal audit program and the legal audits which are performed regularly in subsidiaries. Around 20 internal audits and 10 legal audits are performed annually, corresponding to around 20% of Sika’s subsidiaries. This is a preliminary report based on the supervision principles outlined above.

In 2014, Sika integrated the review into all its auditing activities for Quality and EHS to extend quantitative coverage of this indicator. In addition, the company is confident that all companies adhere to the human rights charter as set out in the Code of Conduct.
The audit scope regarding Human Rights includes following topics:
How does the organisation effectively:
Assure the protection of human rights?
Assure the elimination of forced and child labor?
Avoid the discrimination in respect of employment and occupation?
Assure a precautionary approach to environmental responsibility and development of sustainable solutions?
Assure the elimination of corruption in all its forms? Is a anti-corruption policy implemented and how is it controlled?

- See more at: http://www.sika.com/en/group/sustainability/gri-index/specific-standard-disclosures/human-rights

Sika regards training and education as an important instrument in retaining and grooming its workforce. The company is proud of a large share of long-time associates and recognizes the need to keep these valued associates up to date regarding their relevant knowledge and abilities.

The edition of the Sika Code of Conduct was reviewed and edited in 2014. The Code of Conduct is available in more than 10 languages and has been distributed to all Sika employees. Furthermore, Sika has developed a document stating Sika Values and Principles. These Values and Principles have been rolled out and trained throughout the global subsidiaries of Sika.

Occupational health and Safety:
- OHSAS Certification: 21 legal entities, including their headquarters, are certified according to OHSAS 18001. In addition 21 operational units (plants, warehouses and technology centers) are certified individually according to OHSAS 18001.
- Sika has devised the Sika Site Safety Program to reduce accident rates and promote prevention. This is a program for implementation in the local companies, defining the preventive elements a Sika company needs to use locally. The local companies are in the process of implementing this program, and the audit scheme will follow up on the degree of implementation in the coming years.
- Supplier audits: Occupational health and safety is covered through Sika’s supplier Code of Conduct. Suppliers are audited with regard to compliance with the Supplier Code of Conduct, which encompasses Environment, Health and Safety requirements, and corrective actions are requested if necessary.
- See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/labor-practices-and-decent-work--la-6--9--12/occupational-health-and-safety.html

Occupational safety
The health, safety and well being of all Sika employees are essential to the success of its business and are core concerns
throughout the organization. This requires focus and a systematic approach: occupational standards, management commitment,
employee involvement, work site and risk analysis, hazard recognition and resolution, training and education are
key components of Sika’s health and safety framework. A culture of safety and a healthy work environment are at the center
of everything the company does. Sika has the ambitious goal of every employee leaving the workplace healthy.

The Group goal is:
Target – 5% less accidents per year: This refers to the number of work-related accidents leading to injuries, covering
all Sika employees, including temporary and subcontracted staff, at the company’s operating companies and units, both
industrial and nonindustrial sites. Construction projects are not factored in.
Implementation: The number of occupational accidents leading to lost work time of more than one day showed a year on-
year decrease. In the year under review, 11 occupational accidents per 1,000 employees (previous year: 12) were recorded.
In 2014, injuries caused absences of an average of 17 days (previous year: 16). Sika will continue to improve safety constantly in 2015: All plants will regularly run Safety Days and invest in technical safety measures. Depending on the situation and cultural
context, local companies also include external partners to stage Safety Days, a case in point being Sika Thailand, which
invited a Buddhist monk to address the topic of safety and religion. Sika Vietnam conducted a safety campaign throughout
the entire country to raise employee safety awareness and establish a safety-first work culture at production sites and offices.
The subsidiary introduced an implementation program for teams, processed feedback and rewarded participants for
strong achievements. Employees received training in first aid and dealing with chemical spills. At Sika UK, lean management
and organizational structures, along with the introduction of safety management tools, helped to increase employees, safety
awareness resulting in a stronger commitment on their part to improve the safety of their working environment.
Extensive project case studies from around the globe detailing how Sika was able to reduce occupational accidents and days
lost at the plants can be found at www.sika.com/sustainability.

Training and education
Sika maintains a broad range of internal and external training programs and its own training academies, e.g. for operations, sales and marketing, and technical faculties. Sika collaborates with universities to gain access to up-to-date knowledge. In 2014 we continued our cooperation with IMD Business School, where we trained our talents with potentials to take over senior management positions.

Sika has no explicit Group target with regard to training and education but strives to offer every Sika employee > 10 hours of training per year, and a fully-fledged training seminar for managers.

The total number of training hours reported by the local companies amounted to around 11 hours per employee on average, the same as the year before. As training data from the subsidiaries are processed anonymously, Sika does not provide a breakdown by gender at Group level yet.
- See more at: http://www.sika.com/en/group/sustainability/gri-index/specific-standard-disclosures/labor-practices-and-decent-work--la-6--9--12.html

In 2014 Sika had a lost time rate of 11 accidents / 1,000 employees (previous year: 12).

In the reporting year the company reported 193 accidents (> 1 day of absence from work) compared to 217 in the previous year. Of these, the EMEA region accounted for 124, North America for 10, Latin America for 42, and APAC for 17. The figures include temporary labor not on Sika’s payroll. Sika excludes construction project work from the accident reporting.

Sika experienced 21 contractor accidents on its premises (previous year: 12).

As accident data from the subsidiary is processed anonymously, it is not possible to give a breakdown by gender at Group level.
21 legal entities, including their headquarters, are certified according to OHSAS 18001. In addition 21 operational units (plants, warehouses and technology centers) are certified individually according to OHSAS 18001 Certification. The status of the legal entities can be found in Sika’s Annual Report.

- See more at: http://www.sika.com/en/group/sustainability/gri-index/specific-standard-disclosures/labor-practices-and-decent-work--la-6--9--12.html

Training and Education:
- Management Development: Sika’s performance and talent management system has been the mainstay of management development activities for a number of years. Designed to identify and develop managers’ skills, it facilitates systematic employee succession planning in the respective organizations, while promoting company growth by continually pinpointing new talent. Potential managers are developed at different levels, either through continuous training initiated by the respective national organization or provided by the Sika Business School.
- Sika Business School: The Sika Business School provides global, hands-on courses in the areas of management and talent development as well as marketing and sales.
Curriculums include project assignments reflecting current everyday business situations. Members of Group Management and other line managers are involved in development activities to ensure that training remains relevant to practical needs. Product and application-based knowledge is delivered by academies whose course content and organization are defined by target market managers. With the focus on practical applications for Sika products, these training programs promote customer advisory skills.
- Training Programs: Training activities for each Sika employee are determined based on the evaluation by the line manager. Each employee should attend at least one training course per year (internal or external). All non-management functions are evaluated and managed by their line managers and Human Resources for training and development needs.

- See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/labor-practices-and-decent-work--la-6--9--12/training-and-education.html

Diversity:
Diversity has until now not been actively measured and managed. Based on the outcomes of the measurements in 2014, Sika will introduce relevant management processes. Sika strives in particular to increase the proportion of women in managerial and commercial positions. Women account for 22.3% of total headcount (2013: 21.5%) and 16.4% of managers (2013: 16.2%). Sika is committed to provide equal opportunity for all employees. - See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/labor-practices-and-decent-work--la-6--9--12/diversity-and-equal-opportunity.html

Please see GRI G4-EN
http://www.sika.com/en/group/sustainability/gri-index/specific-standard-disclosures/environmental.html

Less impact or reducing the negative footprint
The following details relate to all business operations of the Sika Group, including the activities of the newly acquired companies,
and focus on the core themes of energy, water/waste, occupational safety, and CO 2 emissions at the more than 160 Sika production sites.

Sika constantly improves its environmental protection and safety performance through its routine investment planning and
maintenance activities. In the year under review, Sika invested a further CHF 6.1 million in technical equipment for accident and
illness prevention, equivalent to around 4% of the total investment (approx. CHF 150 million) in technical equipment. The numerous
other environmental, health, safety and sustainability measures implemented by Sika in the reporting year involved investments
of CHF 23.1 million (previous year: CHF 24.4 million).

Sika employs environment, safety and sustainability specialists at all its major sites. The total worldwide headcount in this field
runs to over 100.

Energy
The Group goals are: Target – 3% less energy consumption per ton and year: This includes the total energy produced and consumed by all Sika operating companies and units, both industrial and nonindustrial sites.

Implementation: Sika consumed 1,671 TJ in 2014 (previous year: 1,681 TJ). 55.8% of Sika’s energy requirements were met by
electrical power from the local grid. The remaining demand was mainly covered by natural gas and liquid fuels.
Achieving an efficiency improvement of approximately 12%, Sika has clearly exceeded its target: The energy consumption per ton of product sold was at 478 MJ (previous year: 541 MJ). This increase in efficiency is mainly due to improved capacity utilization at the Sika factories, which lifted production by an average of 22% in 2014, achieving a better utilization of the basic energy consumed. Beyond that, Sika initiated and successfully carried out various energy projects worldwide, as illustrated by two commendable examples from Turkey and the US.

In Turkey, the energy required to drive the compressors was cut by 8% thanks to measures to reduce compressed air losses. As
part of the program, workers were trained to identify and repair compressed air leaks in all equipment at the subsidiary’s production
facilities. In the US, the installation of efficient interior and exterior lighting led to power savings of 979,000 kWh per year. The project was eligible for a New Jersey State incentive to encourage companies to install more energy-efficient lighting.

CO2 emissions
CO 2 is a consequence of fossil energy consumption, and can onlybe limited by increasing energy efficiency. This is why Sika controls its CO 2 emissions via its energy target and has not set a specific reduction target at Group level.

CO 2 EMISSIONS (DIRECT ): CO 2 emissions from energy consumed directly by all Sika operating companies and units, both
industrial and nonindustrial sites, and by its own vehicles are calculated based on the reported fuel quantities. CO 2 emissions
resulting from the use of primary energy sources added up to around 47,000 tons (previous year: 50,000 tons). A number of
factories in China still rely on locally sourced coal as a fuel. This has a low gross calorific value and entails higher CO 2 emissions
than natural gas. Changes to the product mix reduced emissions at two factories, an improvement achieved by partly replacing a
coal-intensive process with a coal-free one.

CO 2 EMISSIONS (INDIRECT ): CO 2 emissions from energy consumed indirectly by all Sika operating companies and units, both
industrial and nonindustrial sites, by leased vehicles and as a result of business travel are calculated based on the reported energy quantities. CO 2 emissions caused by purchased electricity are calculated using current emission factors from the Greenhouse
Gas Protocol (GHG). Instead of determining the emissions caused by effective power consumption, average values for electricity production in each particular country are applied. In 2014, CO 2 emissions caused by power consumption were calculated at
102,000 tons (previous year: 118,000 tons), i.e. more than twice as high as direct CO 2 emissions. Leased vehicles and business
travel caused additional CO 2 emissions of 20,500 and 14,000 tons, respectively (previous year: 17,400 and 17,500 tons).

Extensive project case studies from around the globe detailing how Sika was able to save energy at its plants and reduce CO 2 emissions can be found at www.sika.com/sustainability.

Water
The Group goal is: Target – 3% less water consumption per ton and year: This includes water consumed by all Sika operating
companies and units, both industrial and non-industrial sites, whether from public utilities or from ground or surface water sources.

Implementation: In 2014, Sika again used approximately 2 million cubic meters of water (previous year: 2 million cubic
meters). With water consumption per ton sold down by around 10% to 0.60 cubic meters (revised figure for the previous year:
0.67), Sika exceeded its target due to significantly higher production volumes: Cooling water, accounting for some 80% of
water consumption, was deployed more effectively. In the reporting year, Sika invested in various water efficiency projects
at its factories worldwide, including the plant in Lyndhurst, NJ, USA, where the newly installed closed loop cooling water system
will lead to a drastic reduction in annual cooling water demand from 2015 on. Continuous small-scale improvements also
add up to contribute to the global increase in efficiency, such as in Argentina, where total water volume goes down by 75%
thanks to a high-pressure cleaner requiring less water and to a filtration process that reuses service water in production.
Extensive project case studies from around the globe detailing how Sika succeeded in saving water at its plants can be found at
www.sika.com/sustainability.

Waste
Efficient use of input materials is extremely important to all Sika companies as production processes are material intensive
using high volumes of nonrenewable resources. Efficient production in this context means reducing and reusing production
scrap, reducing and reusing packaging materials and improving packaging design, leading to higher productivity and lower material
use. The Group goal is: Target – 3% less waste per ton and year:
This includes all waste material sent to external contractors for disposal – with the exception of materials returned to suppliers – and
covers all Sika operating companies and units, both industrial and nonindustrial sites.
Implementation: Sika achieved only a moderate improvement in material efficiency in the reporting year. Recording a
higher production volume, the company caused 62,000 tons of waste (previous year: 56,000 tons). This corresponds to 17.9 kilograms of waste per ton sold (revised figure for the previous year: 18.1 kilograms), or a reduction of 1%. As Sika had reported
significant improvements in previous years, material efficiency will be a priority in 2015. A large part of the waste – particularly
from polymer and mortar production – is recycled by external companies. Extensive measures such as the efficient and economical
use of raw materials, process optimizations, improved waste sorting and recycling of packaging materials have contributed
to a global increase in waste efficiency. Sika’s Shanghai plant, for example, achieved significant material and cost savings
by granulating the polyester scrim and felt backing used in roofing membranes, and feeding the materials back into the
production process. In 2014, Sika Thailand won a Silver Award from the Industrial Estate Authority Thailand Waste Management
for continuous improvements in operational waste handling. Extensive project case studies from around the globe detailing
how Sika managed to reduce waste at its plants can be found at www.sika.com/sustainability.

- Monitoring: Sika measures its envioronmental performanceon a regular basis. Energy use for example is reported quarterly to the internal Environment, Health & Safety department where results are followed up and management approaches adapted accordingly.
- Evaluation of results from LCA: Sika carries out life-cycle assessments (LCA) during the product development process. These serve to quantify energy demand, resource efficiency, greenhouse gas emissions or water demand during each phase of a product’s life cycle and measure the associated possible impacts on the environment.
- Evaluation of Results from energy management system ISO 50001: The entities participate in the energy management systems according to ISO 50001, allowing for continuous improvement in efficiency by evaluating and acting upon the outcome from the certifications. Sika reviews all audit results to improve the management approach and integrates improvements.
- Benchmarking: Sika started to compare the energy consumption per product unit internally through factory reporting and to benchmark with other similar companies.
- Internal reports: The company developed a report for the production facilities on energy efficiency and consumption in 2014.

Furthermore, Sika evaluates its management approach by target setting, achieving or missing the targets and measuring the effectiveness of the approach. The management approach has been reviewed and has been proven to be effective.

See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/environmental.html

Corruption is a phenomenon with worldwide presence causing economic damage and contributing to an unfavorable business environment by distorting market mechanisms and increasing the cost of doing business. The World Bank estimated that 0.5% of GDP is lost through corruption each year, impeding in particular the economic development of developing countries.
The broad presence of corruption has led to an increase in regulation such as the introduction of the UK Bribery Act in 2013.
As Sika operates in many countries with high levels of corruption and is active in the construction industry, known for its exposure to corruption, the subject is of considerable importance to Sika.
For the same reasons corruption is also an important issue in Sika’s supplier relationships.
- See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/society--so-1--5--7/anti-corruption.html

- Audits: The compliance with Sika’s Code of Conduct is monitored through regular audits and legal supervision of the local companies and General Managers.
- Supplier Management: Sika’s Supplier Code of Conduct requests its suppliers to respect Sika’s zero-tolerance policy concerning bribery and corruption and avoid any active or passive corruption. They demonstrate integrity in all their business activities. Suppliers are required to have systems in place to ensure the proper instruction, training and auditing of its personnel and sub-contractors to ensure compliance with these principles. To the extent Sika is directly concerned, suppliers are obliged to immediately inform Sika of any violations of this code of conduct detected.
- Training: Anti-corruption is part of the Code of Conduct training for all employees and General Manager briefings. Employees are regularly reminded, at least once a year, about these rules. Corporate functions regularly conduct training sessions and audits. Sika will also devise a specific e-learning tool on the Code of Conduct in 2015, for Sika's employees.
- Support of Transparency International: In order to support the international fight against corruption, Sika financially supports Transparency International
- See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/society--so-1--5--7/anti-corruption.html

- Monitoring: Sika investigates reported cases of corruption and any planned corrective actions to be taken on a regular basis. Confirmed incidents of corruption and actions taken are followed up by the Compliance function and reported annually to the Audit Committee of the Board of Directors. Cases are followed up, and management approaches adapted accordingly.
- Evaluation of results from audits: Audit results are implemented within the management system.
- Investigations: Through the audits carried out by Internal Audit on a regular basis, or if suspicion of corruption or fraud prevails, the relevant financial transactions are audited.
- Overview of compliance cases: Sika’s Group Compliance Officer prepares reports to the Audit Committee of the Board about any cases detected and the consequences.
- General Managers’ briefings: On a regular basis annually, the General Managers are instructed and briefed about anti-corruption requirements in the companies. The last briefing was conducted during the Senior Management Meeting in 2014 in the term of a workshop discussion.

Sika evaluates its management approach by target setting, achieving or missing the targets and monitoring the effectiveness of the approach. The management approach has been reviewed and has been adapted accordingly.
- See more at: http://www.sika.com/en/group/sustainability/gri-index/disclosures-on-management-approach/society--so-1--5--7/anti-corruption.html