2019-04-07

To our stakeholders:

I am pleased to confirm that BIM Kemi reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continuously improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Sincerely yours,
Anders Rietz
CEO

BIM Kemi is an entrepreneur driven company that provides specialty chemistry applications to the pulp and paper industry. It was founded in 1973 by Peter Wållberg, one of the present owners in the Wållberg family, and has grown to about 210 employees worldwide. BIM Kemi has a history of successful innovations and has received many awards during the years, e.g. for most prosperous SML business in Sweden. Several of the innovations have contributed to a more sustainable future, such as the concepts Bimogard and Bimbright as well as the development of renewable barriers. BIM Kemi Sweden was also one of the first chemical companies to implement ISO systems for quality and environmental management.

In 2016 BIM initiated a more structured way of approaching the modern sustainability concept. The strategy was based on the UN Global Compact Principles and the UN Sustainability Goals for 2030, as well as interviews with customers and internal analysis. During the first years, the focus was on formulating KPIs and action plans, policy development and a common understanding throughout the company.

In April 2018 BIM joined global compact and today we have our major focus on communication, awareness of business ethics aspects throughout the value chain and resource management, i.e. the “green chemistry” concept and the “circular economy” way of thinking. The KPIs that we use to follow our progress are within the following areas as defined by UN:

Decent work and economic growth
”Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all“

Good health and well-being
”Ensure healthy lives and promote well-being for all at all ages“

Responsible consumption and production
”Ensure sustainable consumption and production patterns”

Partnerships for the goals
”Strengthen the means of implementation and revitalize the global partnership for sustainable development“

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BIM has set a target to carry out yearly performance reviews with all employees. To increase the number of performed reviews this year, we have intensified the support to all managers in the group, for example by developing instructions and checklists. The target was to have 100% performed reviews by the end of March. The reached number was 97% for the group and we expect that the rest of the reviews will be performed shortly. The increased number of performed reviews shows us that the effort we made with support and new material payed off.

BIM Kemi Group also send out a yearly employee survey in all countries. The same survey is used across the group, to be able to compare the result between the companies and see progress over time. This year the target was set to 90% answered surveys and the result was 90%, an improvement from last year. The survey is anonymous, and the results leads to activities to increase the work satisfaction and create a more healthy and high-performing work place. It also led to local initiatives to improve certain areas. For example, at the HQ in Stenkullen we have created a process and routine against harassment, discrimination and violation, based on the results from last year. A work shop regarding the matter has been held with all employees during early spring.

During 2018 BIM have updated the code of conduct for the group and for our suppliers. A target was set that the proportion of suppliers that meet BIM Code of Conduct should be at least 75%, and the actual result turned out to be 94%. This is very satisfactory and a sign that BIM can secure a sustainable working climate throughout the whole value chain.

Further, during the year BIM Sweden have worked more intense with the safety index, and the local IA system (IA short for “Informationssystem om Arbetsmiljö” or Information System for Work Environment). The IA system was introduced in 2016 for reporting risk observations, near-accidents and accidents at the site in Stenkullen, and it is used to follow up and take measure to make sure that we have a safe work environment. The global safety index for 2018 was 10,5, which is good, well above the target set for 6. BIM is aiming at a high safety index ((Risk observations + Near accidents) / Accidents) and to work more preventative to avoid serious incidents. BIM is also employing a Quality and Safety Manager, to increase the focus on quality and safety aspects, both locally and within the group.

In the yearly employee survey, addressed in previous section, BIM include questions regarding principles 3, 4, 5 and 6 to make sure we are fulfilling the demands of UN Global Compact. Since the survey is anonymous we believe that the employees can feel free to report if there are any irregularities that need to be taken care of.

The update of the code of conduct, also mentioned above, is another action taken during 2018 to fulfil our obligations regarding the labour aspects of the UN Global Compact.

During 2018 5S has been implemented in the factory in Bolton. It is a workplace organization method and it resulted in improved conditions in terms of hygiene, safety and environment.

A mapping of the Swedish salaries has been performed at the HQ, all according to Swedish law. The mapping resulted in a report which showed that there were no striking differences between salaries, considering sex and age.

The focus for BIM’s environmental work is the Green chemistry concept. The concept involves both renewable resources for our products, but also a continuously improved overall sustainability profile for our product portfolio. The sustainability profile is based on a life cycle perspective, where the raw material origin, production at BIM as well as use at customer and end-of-life scenario is considered. Regarding the share of renewable resources in our products, we are online with our targets this year (40%) for a range of product groups, but not all of them. Thus, we need to investigate what can be done in these cases and where we should put our focus to get the most out of our efforts. During the year BIM has used external support to understand the market for renewable resources better and this will be used in the planning of the next steps. To implement the sustainability strategy in our practical way of working, we will for example provide guidelines when choosing materials and developing/adapting new concepts and products.

One new area that we will focus on a group level during the coming years is waste. After statistical assessments it is concluded that one of the most important waste flows in BIM are destruction of products and raw materials. The aim is to lower the costs and environmental impact associated by working on prevention measures as well as investigating optional ways of re-using the products for other applications, internally or externally, all in line with the circular economy concept.

Another important area for BIM group is energy. We are looking at energy savings, but also, more importantly, the energy sources that we use. How to decrease the dependency of fossil energy sources used on the sites? For example, BIM UK installs solar panels. Making use of a section of the roof, BIM get a boost with green energy, and it can easily be extended in the future. Practically all electricity these high efficiency solar panels produce will be used ahead of conventional supply and any excess goes back to the grid. In addition, on the sites in Finland, Sweden and UK lights in the factories has been changed to LED lights.

BIM group is online with our target for our suppliers of transport using Euro 6 engines (65%). In Stenkullen, a diesel forklift has been exchanged to an electrical vehicle. Regarding travels, BIM Sweden has updated the company car policy, to give a higher incentive to choose electrical cars and hybrids. We have also received an incentive from the Swedish authorities and initiated installation of four charging posts for electrical cars on site during the spring of 2019.

This year, anti-corruption has been a major focus area at BIM Kemi. The initiative has resulted in an update of the policy regarding anti-corruption, external training with all managers and a risk assessment, identifying the roles that are extra vulnerable to corruption at BIM. External experts have been engaged, both for creating the policy and performing the workshops and risk assessment. Three areas that are extra vulnerable to anti-corruption have been identified; Purchase, Sales and Marketing, and Finance. Managers of those departments are responsible for holding adapted workshops regarding anti-corruption in their departments before the end of June this year.