sustainability report - Amway RepoRt 2010 9 amway brand Help people live better lives...

sustainability reporteurope 2010

Because We Care

Contents

Building a sustainable business 5

Foreword 6

Highlights of the past year 7

About this report 8

Amway in Europe 12

Workplace 17

Our employees 18

Our distributors 20

Environment 23

Managing our environmental impacts 24

Smart buildings 26

Products, packaging and life cycle analysis 28

Community 31

One by One Campaign for Children 32

Well-being 36

Disaster relief 37

A thriving business driving sustainable growth.

building a sustainable business

building a sustainable business6

Foreword

At Amway, our vision is quite simple – to help people live better lives. This vision is central to our products and the way we do business. As a direct selling company, people are our most important asset. Our whole business model revolves around our stakeholders - consumers, employees, distributors and their local communities. If they are thriving, our business will continue to grow and generate long-term value.

Long-term businesses are sustainable businesses. That is why we are placing sustainability at the centre of our business, and the Executive Management team is committed to strive for continuous improvement in this.

Last year, we published our first Sustainability Review. In this, our second and more extensive Report, we document progress in 2010.

We look back on a successful year for Amway Europe in 2010. Our financial performance has remained strong, with annual revenues in Europe of 1.2 billion dollars. We have also maintained our strong performance in Russia, our largest market in the region. Furthermore, we launched our new Amway Business Center Europe in Krakow, Poland which integrates and consolidates key services, welcoming over 200 new employees by the end of 2011.

Our distributors and employees are fundamental to our business success. We can only grow with the dedication and engagement of our people, and in turn we are committed to investing in training and development and providing opportunities. At the Amway Academy, over 520,000 European distributors benefited from instructor led training in 2010, driving entrepreneurship across the region.

As we promised in last year’s Sustainability Report, we have been developing an environmental management system and in 2011 we will launch our new environmental practices manual across our operations in Europe.

Our new state-of-the-art Krakow office received the Green Office Certificate for energy efficiency and waste reduction. At our headquarters in Puchheim, we have reduced gas consumption by 43 per cent and reduced electricity use by 22 per cent over the last two years, generating environmental and cost efficiencies.

Amway Europe and its distributors continue to support local communities across Europe and the world. In 2010, we raised over 2.8 million dollars and employees and distributors invested over 55,000 hours in voluntary services. All our employees are also granted time to help local nurseries, hospitals and schools. Furthermore, the One by One campaign continues to coordinate our various charitable programmes supporting disadvantaged children.

While I am proud of what we have achieved, there is still much for us to do. We face a world in which energy, water and other resources are increasingly constrained. Consumers are increasingly environmentally aware. This raises new opportunities and challenges for our business.

We will only make progress in meeting these challenges in partnership with our main stakeholders. In 2011, we will conduct a stakeholder consultation to help us to shape our sustainability strategy and move towards more comprehensive standards under the Global Reporting Initiative (GRI). By working together, I believe we will build an even stronger and better business for the future. I look forward to working with you all over an exciting year ahead.

Mark BeiderwiedenManaging Director, Amway Europe

sustainability RepoRt 2010 7

Highlights in 2010

building a sustainable business

• Our financial performance has remained strong, with annual revenues of around 1.2 billion dollars.

• We launched our new Amway Business Center Europe in Krakow, Poland which integrates and consolidates

key services, and will provide over 200 positions for new employees in 2010/11.

• Amway Russia received the 2010 Consumer Rights Award for best trade centre from the Russian Federal

Supervisory Service for Consumer Rights and Human Well-being.

Workplace

• Thousands of European Amway distributors benefited from instructor led training at the Amway Academy,

along with e-learning courses and Web presentations.

• Amway Austria received the Work and Family Award from the Federal Ministry for Economic Affairs and

Labour for flexible, family-friendly working arrangements.

environment

• At our headquarters in Puchheim, we have reduced gas consumption by 43% and reduced electricity use

by 22% over the last two years. As a result, we have reduced carbon emissions and costs – a real win-win.

• Our new state-of-the-art Amway Business Center Europe in Krakow won the Green Office Certificate from the

Partnership for Environment Foundation.

• Manufacturing of four major Home Care products is moving from the United States to Europe, which will

reduce transportation carbon emissions by up to 79%.

Community

• Amway Europe raised over 2.8 million dollars, and distributors invested over 55,000 hours in voluntary

services for our One by One Campaign for Children.

• Together with UNICEF, we supported the opening of two new nursery schools in Van, Turkey.

• Over 12,000 Amway participants registered for Team Nutrilite in Kiev’s Chestnut Run in the Ukraine, raising

46,000 dollars to help children with heart disease.

• Our charity initiative raised 150,000 dollars for a new sports centre following the L’Aquila earthquake in Italy.

• Amway Russia launched its new Nutrilite football project – Equal in Sport – for children with special needs.

• Following the devastating earthquake in Haiti, Amway Europe raised over 200,000 dollars to help the relief

effort.


About this report

This is our second Sustainability Report at Amway Europe. Amway’s global goal is to become a leader in sustainability in the direct selling industry by 2014. This Report reviews our progress and achievements in Europe in 2010 as a milestone along that journey. While we have made progress in 2010, we strive to become ever more sustainable year on year. As part of our commitment, we will conduct a stakeholder consultation in autumn 2011. This will help us shape our sustainability strategy and move towards more comprehensive standards under the Global Reporting Initiative (GRI).

Sustainability at Amway Europe

Amway has been operating in Europe for 39 years and is currently active in 29 countries across the region. Throughout our operations we are proud of our record as a company that helps people live better lives. And we recognise that we can only continue to support people by striving to become ever more sustainable as a business.

Amway has a clear goal: to become a leader in sustainability in the direct selling industry by 2014. For our business in Europe, we believe that means continuing to build a sustainable business as well as demonstrating our commitment in three key areas of corporate social responsibility: social responsibility, environmental protection, and direct support for local communities.

Commitment to social responsibility means doing business responsibly for the long-term benefit of our consumers, continuing to support our people, and creating new opportunities to improve their careers and working lives.

Commitment to environmental protection is about playing our part here in Europe to reduce energy, greenhouse gas emissions, waste, and the use of raw materials.

Commitment to the community means giving something back to the local communities where many of our distributors and employees live and work - through targeted projects to deliver long-term value, and by supporting communities through challenging circumstances.

kEy FACts

Amway operations in Europe

AustriaBelgiumCroatiaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuania

The NetherlandsNorwayPolandPortugalRomaniaRussiaSlovakiaSloveniaSpainSwedenSwitzerlandTurkeyUkraineUnited Kingdom


amway brand

Help people live better lives

Sustainability: create change with a caring touch

Family of Brands Business Opportunity RelationshipsCorporate Social

Responsibility

Workplace, business practices and people• Incorporate

sustainability attributes in Amway’s business practices

• Grow and expand Amway stakeholders’ awareness, expertise, and passion for Sustainability

products, environment and operations• Develop new innovative, profitable and

sustainable products, and continuously improve sustainability of existing products while balancing consumer needs and cost.

• Reduce Amway’s environmental footprint by conserving resources, reducing waste, harnessing alternative energy solutions, and leveraging cutting edge technology.

Community• Be a good corporate

citizen by investing time, expertise and resources to improve quality of life and inspire change within the communities where we operate.

Listening to our stakeholders

We also recognise that we need to listen to – and work closely with – a range of stakeholders to help shape Amway Europe’s sustainability strategy and to meet our 2014 goal. Our key stakeholders include our consumers, employees, distributors and the wider community.

As part of our commitment to stakeholder engagement, we will conduct a sustainability consultation in autumn 2011. The consultation will gather stakeholder comments on our 2010 Sustainability Report and, more widely, on Amway Europe’s sustainability performance, the workplace and people satisfaction, environmental protection and our commitment to helping local communities – particularly children and those in need.

Moving towards a GRI framework

This Report covers sustainability across Amway’s activities in 29 countries in Europe. The reporting period is from January to December 2010.

We have used the framework under the Global Reporting Initiative (GRI) as a guide to producing this Report. We aim to make further progress in 2011 and beyond. The GRI Reporting Framework is a comprehensive set of principles and performance indicators that organisations use to measure and report their economic, environmental and social performance. The GRI framework will help us continue to improve our sustainable management with comprehensive reporting and action across our European operations.

As part of the GRI framework going forward, we commit to reviewing and improving sustainable management practices across our Amway Europe operations.

Corporate social responsibility: one of four pillars of the amway brand


Management of sustainability at Amway Europe

We believe that ethical business needs sound governance. For this reason, corporate social responsibility in Europe - and our sustainability policy more generally - is overseen by the Vice President for Corporate Affairs who is part of the European Executive Management Team. The Corporate Social Responsibility manager reports directly to the Vice President. In this way, we ensure that sustainability is central to Amway Europe’s business model, with transparent lines of responsibility and accountability.

Sustainability management structure at Amway Europe

We are also committed to ensuring that sustainability management is fully integrated into our individual offices across Europe. Some of our offices have already been acknowledged for their approach to corporate responsibility and sustainability. However, we are committed to continually improving. We will be rolling out a wider programme of information and training in 2011 to maintain a consistent approach to sustainability across Amway Europe.

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Management of sustainability

MICHAEL MEISSNERVice President Corporate Affairs, Amway Europe

Amway’s sustainability policy and compliance is overseen at board level.

“We provide employment for 1,700 people and a business model for 500,000 direct sellers – Amway in Europe has a huge responsibility for being a sustainable business.”

“Our 2010 commitments are another step towards more comprehensive reporting under the Global Reporting Initiative.”

Managing Director europe

Vice President

SALES

EUROPE

Vice President

MARKETING

EUROPE

Vice President

CORPORATE

AFFAIRS

EUROPE

Vice President

HUMAN

RESOURCES

EUROPE

Chief Financial

Officer

Director

EXECUTIVE

COMMUNICATIONS

EUROPE

Managing

Director

AMWAy

RUSSIA

CORPORATE SOCIAL RESPONSIBILITy EUROPE

Sustainability Management System


Examples of sustainable business awards received by Amway Europe in 2010

Country Award Awarded By Aim of Award

Austria Family-friendly company Federal Ministry for Economic Affairs and Labour

Recognising companies that support employees to combine work and family.

Czech Republic

Certificate of Recognition UNICEF Long term substantial support.

Hungary Appreciation Award

Certificate of appreciation

UNICEF

Red Cross

Continous partnership and support to UNICEF. Specific support to Haiti relief effort.

Support to Hungary flood victims.

Italy Corporate Social Responsibility Award

Union Cammere - Milan Chamber of Commerce

Recognising companies that are socially responsible.

Poland Corporate Social Responsibility Positive Practice

Forum of Responsible Business

Award for Education Campaign to reduce choking accidents in children.

Russia Corporate Citizenship Leaders

Consumer Rights Award - Best Trade Centre

Trustworthy Brand - Green Planet Award

Donors’ Forum, PwC and “Vedomosti” business newspaper

Russian Federal Supervisory Service for Consumer Rights and Human Well-being (Rospotrebnadzor)

Readers Digest

Leading CSR business practice in Russia.

Recognising protection of consumer rights and raising service standards.

Recognising trade marks with the best reputation for environmental protection.

Turkey Social Responsibility Honour Certificate

Izmir Social Services and the Society for the Protection of Children

Recognising support to help orphans’ lives.


Amway in Europe

Amway has been a responsible business in Europe for 39 years. We sell 450 products including nutrition and wellness, beauty and household products. We are now active in 29 countries, with revenues of around 1.2 billion dollars. Our direct selling business model creates entrepreneurial opportunities for over 500,000 self-employed distributors across Europe, while we also provide jobs for 1,700 employees.

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Entrepreneurial spiritin Europe

While the economic downturn has created tough conditions in Europe over recent years, many people remain positive about starting up a business.

As a prelude to the “Global Entrepreneurship Week 2010”, we surveyed the views of over 12,000 people in 11 countries across the European Union, Switzerland, Russia, Turkey and Ukraine about their personal perspective on self-employment.

The findings include:

Promoting entrepreneurship in Europe

Amway’s direct selling business model is a way of selling goods mainly through face to face contact with consumers.

As part of this model, we owe our success to people of all ages who take the opportunity and want the independence and flexibility of their own business but with the advantages that come from being associated with a large, trusted organisation such as Amway.

We have helped hundreds of thousands of distributors across Europe to become self-employed either on a part time or full time basis. We currently provide opportunities for over 500,000 distributors to sell our products to consumers.

With a high degree of flexibility and minimal start-up capital, direct selling is particularly suited to women with family commitments, and to those who want to start a part time business from home.

By providing a business opportunity that empowers people to realise their potential and take their future into their own hands, and by making that opportunity sufficiently flexible to accommodate each person’s individual goals and circumstances, we provide a partnership with distributors that can be very rewarding.


Our European operations

Amway has been operating in Europe for 39 years and is currently active in 29 countries – from Ireland to Russia and from Finland to Greece.

The Amway affiliates in Europe are part of the Alticor group of companies. The corporate headquarters are located in Ada, Michigan in the United States. With 260 employees, Amway’s European headquarters are located in Puchheim near Munich, Germany.

Other major Amway centres are located in Russia, the Netherlands and Poland. Amway has been expanding its operations in Russia over the last three years.

A total of 13 Product Selection Centers now operate in 11 Russian cities, along with four logistics centres in Moscow, Khabarovsk, Novosibirsk and Rostov-on-Don.

Our European logistics centre in Venlo, in the Netherlands, continues to supply our distributors with an average of 75,000 items a day, while in 2010 we opened the new Amway Business Center Europe in Krakow, Poland to integrate key services across our European operations.

Other important facilities in Europe include a logistics centre in Budapest and the UK Flagship Experience Centre which provides a retail outlet.

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Amway’s new Business Center Europe

In 2010, we proudly opened the new Amway Business Center Europe in Krakow, Poland. The centre is designed to integrate and consolidate key services across Europe.

Over 200 employees will deliver finance, IT, sales back office tasks and marketing services to 24 markets in 21 languages across Europe.

The centre will increase efficiency across our European markets and help to provide the best possible support service to our distributors.

The history of NUTRILITE food supplements explained in our experience centers


Building a strong and sustainable business

At Amway, and its parent group Alticor, we manufacture and sell over 450 products including nutrition and wellness, beauty and household products.

Homecare is now our highest selling goods category in Europe - making up 29 per cent of net sales in 2010. Nutritional supplements and personal care products each contribute with a further 21 per cent of sales.

Our business in Europe has remained strong in 2010. Turnover for the year was 1.2 billion dollars. As well as providing entrepreneurial opportunities to over 500,000 distributors in Europe, we also continue to employ 1700 staff.

21%

16%

21%

29%

8%5%

Nutritional supplements

Beauty

Personal care

Home care

Household durables

Other

Detailed information on products and ingredients help consumers make informed choices.

Responsible business practice

Consumers lie at the heart of our business. Amway’s continued success depends on the confidence and trust that consumers place in our distributors and products. As well as conforming to EU consumer protection legislation, we have been a world leader in establishing Codes of Conduct and increasing the level of protection available to consumers and distributors.

We not only conform to EU consumer protection legislation, but have also committed ourselves to the consumer Codes of Practice set out by the World Federation of Direct Selling Associations (WFDSA), the national DSAs across Europe, and employ Amway’s own Codes of Conduct.

DSA Codes of Conduct address the obligations of DSA members to direct sellers (such as Amway’s obligations to Amway distributors) as well as DSA members’ obligations to consumers. We incorporate DSA requirements into our contracts with distributors.

sales of amway products in 2010 across business categories


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UNITED KINGDOM

direct selling Association Code of Conduct

As part of our commitment to a fair, ethical and transparent business model, Amway is actively involved in the World Federation of Direct Selling Associations (DSAs).

We incorporate DSA requirements in our contracts with distributors. In this way, we and our distributors become partners in best practice direct selling.

For example, the Direct Selling Association in the UK sets out detailed criteria for members. These include:

• Fair selling methods• Customer order cancellation rights that exceed

those demanded by the law • Clear records for customers of any transaction• Respect for the rights and privacy of the

customer• Openness in disclosing the identity of a

Company and a Direct Seller

At Amway, we have actively encouraged the development of DSA Codes of Conduct to ensure that companies in the direct selling sector act ethically and beneficially for customers and the community at large.

At Amway, we recognise that in business – as with life – not everything goes according to plan. As a result, we have a clear process for handling complaints that is consistent, fair and transparent. The primary purpose is to ensure contract enforcement to protect consumers, distributors and Amway’s own strongly held values and ethics.

We take our responsibility to the supply chain seriously. The Supplier Code of Ethics of the Access Business Group, which is part of Amway’s parent company Alticor and the logistics partner to all Amway markets worldwide, is binding for all suppliers and their subcontractors when entering into a business agreement with Amway.

The Code contains guidelines for fair remuneration, working hours, age requirements, work and health standards and equal opportunity. Suppliers must allow Access Business Group inspectors to visit production sites at any time.

We aim to maintain strong values and ethics. We actively promote consumer protection and insist on sustainability standards from our suppliers. Amway Europe does not give political donations, and we comply with the anti-corruption laws in the countries where we operate and the US Foreign Corrupt Practices Act.

Engaging our people and creating new opportunities to improve their working lives.

Workplace

woRkplace18

Our employees

The skills and motivation of our employees across Europe are fundamental to our success. In 2010, we have strived to maintain a working environment in which all our people can thrive and have the opportunity to meet their potential. We continue to promote diversity and development, provide benefits and ensure high standards in health and safety.

Supporting our people

We employ around 1,700 people in over 29 countries across Europe - in our offices and Experience Centers. Engaging with our people, keeping them motivated and passionate about their work is critical to our business.

In 2010, we implemented our new European Operating Model. This will help to consolidate our processes, meet the needs of our distributors, and ensure the company remains strong and well-positioned for the recovery in the global economy.

Supporting our people through this process is particularly important to us. As part of our worldwide ongoing monitoring, we consulted employees at our new Amway Business Center Europe in Krakow launched in 2010. Overall, 95 per cent of employees were broadly or wholly satisfied with the workplace, while 70 per cent rated Amway a better employer than others.

We recognise that modern life is often challenging for people juggling time between work, family and friends. We believe companies can make a significant difference to job satisfaction through a pleasant environment at work and flexibility to fit work around the other important things in life.

To take one example, Amway Austria has been developing a mentoring programme to help young mothers in the process of returning to work – part of an initiative that won the Work and Family Award from the Federal Ministry for Economic Affairs and Labour. We offer support to our employees through comprehensive benefits and services including among others: special leave, retirement provision, courses for giving up smoking, travel health insurance, company events and language lessons.

employee survey at the new amway business Center

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Survey conducted by Aon Hewitt in April 2011 as part of a worldwide study. A total of 85 individuals responded representing 79% of staff at the centre.

European Human Resources Management team


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AUSTRIA

Family is its own reward

EVELyN TREMMESBERGERGeneral Manager, Amway Austria

“Family and self-determination are core values of our corporate philosophy. We want our employees to feel they can thrive both professionally and privately.” In November 2010, Amway Austria received the Work and Family Award from the Federal Ministry for Economic Affairs and Labour.

Secretary of State Christine Marek presented the certificate in a ceremony at the Vienna Stock Exchange. As part our our commitment to work-life balance, we are moving to new part-time working models. For example, a mentoring programme has been designed to help new mothers in the process of returning to work after having a baby.

Employee diversity

The diversity of our employees and managers is key to maintaining our creativity and innovation. A diverse workplace also allows us to better understand our consumers’ expectations.

We aim to ensure that all our employees have similar experiences and opportunities, regardless of where they are based in Europe, their age, gender, religion and race.

At staff level, 68 per cent of employees in Amway Europe are women. This rises to 71 per cent at managerial level. We believe this gender mix increases innovation in the business. At executive level, 57.5 per cent are men and 42.5 per cent women. Russia has a high proportion of female executives.

People of different ages are also well represented in Amway Europe, with 40 per cent of employees being 30 years of age or under, 32 per cent between 31 and 40, and 28 per cent above 40 years.

40%

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Our distributors

Our distributors are key ambassadors for our business, and we support them by providing comprehensive training and development. The Amway Academy is an integrated system of professional education comprising classroom training, e-learning courses and Web presentations. In 2010, over 500,000 distributors benefited from Amway’s instructor led training, of which 98 per cent was delivered at no cost to the participant.

A diverse community of distributors

Diversity is not only a fundamental company value, it is also an important part of our success. Our distributors live and work in a wide range of European countries and cultures, and they also represent a diverse cross-section of age and gender. Following the recent economic downturn in Europe, employment opportunities are particularly challenging for young people and those over fifty. At Amway Europe, we are proud that 33 per cent of our distributors are 50 years of age or above, while a further 16 per cent are below the age of 30.

Single women are also well represented amongst our distributors, making up 71 per cent of businesses (where data are available). Many women enjoy the flexibility of owning their own business. A further 14 per cent of independent businesses are owned by a couple.

Amway Academy: Investing in our distributors

For an Amway distributor, getting to know and understand the company’s products and learning how to run a business efficiently, ethically and successfully are essential.

To help distributors achieve this, the Amway Academy offers an integrated system of professional education consisting of e-learning courses, Web presentations, classroom training and personal training courses.

In 2010, over 500,000 distributors benefited from Amway’s instructor led training. Training is available for all distributors as part of continuous personal and professional development.

Training is highly flexible and tailored to each individual’s needs. Progress is regularly monitored so that support can be provided early and constructively.

The Amway Academy collaborates with around 100 freelance coaches across Europe and this number is increasing, delivering courses in 24 languages.

Around 70 per cent of the training sessions offered are traditional face-to-face classes. However, e-learning, which provides great flexibility, is becoming more and more popular among distributors. E-learning courses are conducted in all European Amway markets.

16%

25%

26%

23%

10%

Age of distributors

below 30

30 to 39

40 to 49

50 to 59

60 and above

71%

15%

14%

Family status of distributors

Single women

Single men

Couple

age of distributors

Family status of distributors


Training for distributors in Europe 2010

TrainingNumber of distributors

Instructor led 529,000

Online 155,000

Web live 13,200

Academy certified distributors 30,000

New distributors are helped with the Welcome to Amway (WTA) induction programme, which introduces Amway and our way of working. In Europe, the new WTA is currently offered in the UK, Ireland, German-speaking countries and Italy. In 2010, over 8,500 new distributors attended. Plans are in place to roll out this new programme throughout the rest of Europe.

The Academy has also established a European network. This allows our trainers to interact with other experts in the field, and gain knowledge on the latest training developments, methods and evaluation tools. The network includes close contact with companies that, just like Amway, work on the development and implementation of professional education solutions.

Amway Experience Centers

The European headquarters in Munich houses the Amway Experience Center. The Center informs distributors and external audiences about Amway, its products and the company’s business model.

Furthermore, almost every affiliate in Europe maintains an Experience Center (e.g. Istanbul, Madrid and Vienna), showroom or a smaller version of a center. This means that distributors can experience the Amway product range first-hand.

Amway Experience Center Munich

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IRELAND

Award for supporting distributors

ROByN CREWEBusiness Development Manager, Amway Ireland

Robyn Crewe won the Best Support Award at the Ireland Direct Selling Association Awards in October 2010.

The award is presented to a member of staff (from the 16 direct selling companies in the Direct Selling Association) who has given the most outstanding support to distributors over the last year.

Acting as a mentor and business advisor, Robyn worked with successful Amway distributors to grow their business.

Key to Robyn’s success has been his product and business training - particularly for new distributors.

environment

Commited to environmental protection and sustainable management.

enViRonMent24

Managing our environmental impacts

Reducing our environmental impact means adapting the way we operate. In 2010, we have started to develop a more comprehensive environmental management system and as a consequence we will launch our new environmental practices manual across our operations in Europe. We have started a programme of increasing the sustainability of our local and international events. Another example of positive sustainability actions is our decision to move the manufacturing of specific Home Care products from the United States to Europe, reducing transportation carbon emissions by up to 79 per cent.

Improving environmental management

We are committed to improving our environmental management systems year on year. Our aim to move to a more comprehensive management system under the Global Reporting Initiative (GRI) in 2011 and beyond will further improve our systems.

People play a large role in helping to reduce our environmental impacts, including energy, waste and water use in our offices. That is why we have been developing a new Environmental Practices Manual. The Manual – to be launched in 2011 – is a user-friendly guide to help managers and staff to conserve energy, reduce water and tackle waste more effectively.

Transportation and carbon emissions

As a company, we want to play our part in tackling climate change by reducing our carbon footprint. As well as reducing energy use – and carbon emissions – in offices and buildings, we have identified potential for reducing emissions from international transportation.

For example, we traditionally produce all our Home Care products in the United States. In 2010, we will begin local production of Dish Drops™ Concentrated Dishwashing Liquid, L.O.C™ Multi Purpose Cleaner, SA8™ Delicate and AMWAy™ Gel Oven Cleaner in Europe. These products are scheduled to be in market from around October 2011.

The product formulations and packaging will continue to meet our high quality and performance standards, going through the same level of commitment on sourcing, quality and production as usual.

Manufacturing these Home Care products locally will not only increase efficiency through reduced lead times, but also deliver up to 79 per cent reductions in carbon emissions during transportation.

The Environmental Practices Manual


Green events and employee travel

As part of continued efforts to reduce our environmental impact, we are rolling out a programme to make our events more sustainable. At Amway Europe, a total of 70,000 distributors attend local events every year. In addition, an average of more than 6,500 distributors attend each of our week-long international events based in hotels or on cruise ships – an average of more than 32,500 nights for each event.

Our aim is to maintain the positive results of these events for distributors and the wider community, while reducing negative environmental, social and economic impacts. We have committed to achieving BS 8901 certification: the British Standard developed specifically to help the events industry to operate more sustainably. And we aim to meet the international ISO 20121 certification when it has been adopted by the International Standards Organisation.

Given the size and distribution of our operations in Europe, our employees also travel widely. As part of our development of GRI reporting standards, we have started a programme of measuring the number of flights taken by employees and the resulting carbon emissions. In 2010, we recorded 3,900 flights covering over 13 million kilometres and producing 4423 tonnes of carbon.

We have implemented employee travel guidance to reduce unnecessary air travel. For example, business trips may only be planned if a tele/video conference is not possible. A total of 1800 video conferences took place in 2010 across Europe, and we are monitoring the impact of this initiative.

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FRANCE

Engaging employees in sustainability

CAROLINE DUARDBusiness Consultant, Amway France

Caroline likes to lead a green life and actively promotes environmental issues in primary schools in her spare time.

“It’s very important for me to work for a company involved in caring for others and protecting the environment.”

“Sustainability is something I’m really passionate about. It’s great that as employees we’ll be taking part in the 2011 consultation – we can each play a part in shaping Amway’s sustainable future.”

Video conference rooms increase efficiency and reduce carbon emissions.

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smart buildings

Energy conservation in our buildings is a smart way to help tackle climate change and save money. At our European Headquarters in Puchheim near Munich, we have cut gas consumption by 43 per cent and electricity use by 22 per cent in 2 years. While in Krakow, our new state-of-the-art office is designed with eco-friendly features.

Buildings and energy

At Amway, we recognise that better building design can reduce energy use, improve our carbon footprint and save money. A real win-win.

That is why we are reviewing our energy consumption and carbon emissions across our European operations.

We have already started to reduce energy – and carbon emissions – at our European Headquarters in Munich. Over the last two years, we have reduced gas consumption by 43 per cent and reduced electricity use by 22 per cent.

We have achieved these reductions through a variety of measures including energy efficient lighting, smart night switching, thermostats and raising awareness among staff.

And we want to go further. In 2011, we are committed to developing GRI standards across our European operations, to ensure that our energy and carbon management meets best practice.

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POLAND

Green office certificate for krakow

Our new office in Krakow has been awarded the Green Office Certificate by the Partnership for Environment Foundation.

The Certificate is awarded to organisations that meet criteria in over 20 environmental areas.

Some of the areas covered include: • Installation of heat regulators• Energy efficient office equipment• Energy-efficient lighting• Auditing of energy sources: electric, gas,

biomass or other fuel• Re-use of consumables• Recycled paper• Reduced paper use• Waste reduction, storage and monitoring• Noise protection• Sustainable procurement of office materials• Biodegradable cleaning products • Measures to reduce waste generation• Promoting the use of ecological solutions

(e.g. through internal newsletters, information on websites)

Green design in Krakow

Our new Krakow office is housed in a Class A building in Krakow Business Park, constructed with high quality, state-of-the-art materials and infrastructure. The office is designed especially with eco-friendly features.

Examples of green features include the installation of temperature regulators and energy efficient lighting. In addition, the office is managed with the environment in mind. For example, the office takes pride in having sustainable management of electricity, heating, water and waste supplies, regulated waste management, re-use of consumables, recycled paper, environmentally-friendly purchasing policies and environmental education of employees and clients.

In recognition of these building features and management practices, the Partnership for Environment Foundation awarded us the Green Office Certification.

Amway’s new Business Center Europe, Zabierzov near Krakow.

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Products, packaging and Life Cycle Analysis

Using products, processing and packaging that reduce environmental impacts is an important goal of our environmental policy. The boxes we use to transport our products are made of 60 per cent recycled material with 100 per cent biodegradable cornstarch loose-fill. Using Life Cycle Analysis, we continue to reduce the environmental impacts of our products, while Nutrilite - the vitamin and mineral brand owned by Amway - grows, harvests and processes plants on its own sustainably-managed farms.

Recycled packaging

Each year, we distribute millions of products across Europe which need packaging for storage and transit. Packaging ensures that the products we use are protected, safe, easy to use and clearly labelled.

We are committed to reducing the impact of our packaging on the environment. As part of this commitment, our transport boxes are made with at least 60 per cent of recycled material and the inner cardboard dividers are made of 100 per cent recycled material. They can also easily be reused or recycled where facilities are available.

We have also introduced carbon-neutral loose-fill in our packaging. Instead of using plastic loose-fill, we use cornstarch, which is 100 per cent biodegradable. In 2010, we also introduced a label to inform consumers about the packaging materials we use.

Life Cycle Analysis: Minimising environmental impacts

Life cycle analysis (LCA) is part of the company’s efforts to minimise the environmental impacts of products and processes. Impacts analysed include air emissions, water effluents, solid waste, and energy use.

LCA supports our sustainability principle to develop new, innovative, profitable and sustainable products and improve the sustainability of existing products, while balancing consumer needs and cost.

The benefits of LCA include, among others, effective identification and prioritization of environmental performance improvements during the design phase; more informed R&D decision-making; creation of more relevant indicators of environmental impacts; ability to validate environmental performance claims; and expanded environmental and sustainability awareness throughout the company.

Packaging label introduced for consumer information


Sustainable farming

As part of our commitment to sustainability, Nutrilite - the vitamin and mineral brand owned by Amway - grows, harvests and processes plants on its own sustainably-managed farms. The farms use natural processes to build soil health and plant nutrition. Also, instead of using pesticides, we rely on natural enemies such as ladybirds to protect plants from pests.

Nutrilite farming blends cultural practices, land preparation and sustainable farm management. Soil is a living system, and managing soil’s organic matter and organisms is key to sustainable farming practices. All Nutrilite farms follow a programme of continually enhancing the soil with cover crops, green manure crops, composts and other naturally-mined materials required for crops to flourish.

kEy FACts

Principles of Nutrilite’s sustainable Farming

On our farms, we follow key principles of sustainability:

• Integration and diversity of the plants, animals and people on the farm.

• Habitat preservation – natural ecological areas within the farm boundaries to sustain the diversity of native plant and animal species.

• Natural soil nutrition – maintaining healthy soils with 45 to 50 natural elements.

• No contamination – creating a healthy and thriving base.

• Preservation and cultivation of a wide variety of seeds.

• Traceability of every action performed on each piece of land.

• Social life – ensuring that the farm is a viable and rewarding operation that provides economic security and sustainability for the families who depend on it.

Sustainably managed NUTRILITE farm.

Community

Helping to improve people’s lives in local communities.

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One by One Campaign for Children

Amway Europe and its distributors support local communities across Europe and the world. The Amway One By One Campaign for Children coordinates our various charitable programmes that support disadvantaged children – helping to fund nursery schools, play and sensory rooms as well as hospital care for young people. In 2010, we raised over 2.8 million dollars, and distributors invested over 55,000 hours in voluntary services.

Helping children in local communities

Ever since Amway began in 1959, corporate citizenship has been an important part of our philosophy. The One by One Campaign for Children is a perfect example of this. The campaign uses the resources of the global Amway value chain - distributors, employees, affiliates and consumers—to make a difference to the lives of children around the world.

Since its launch in 2003, One by One has helped more than 8 million children, involving 2.3 million volunteer hours, and raised 141 million dollars for children’s causes worldwide.

More than 2.8 million dollars donated to community projects

Across the countries and local communities in which Amway Europe operates, employees and distributors support a wide variety of charitable organisations that deliver resources to help children to live, achieve, learn and - of course - play.

In 2010, Amway Europe fundraising and donation activities raised more than 2.8 million dollars.

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ROMANIA

London to Romania: Cycling to improve children’s lives

BOGDAN CRISTEAAmway distributor

“The Cycle Slam was a truly inspirational experience. With the help of Amway’s One by One Campaign we were able to help these young people improve their lives.”

In August 2010, Amway distributor Bogdan Cristea and his team cycled all the way from London to the Odobescu Orphanage in the Timisoara region of Romania.

The team cycled 2,000 km over 18 days, travelling through eight countries – and raised over 3,600 dollars with the help of Amway UK, Amway Romania and Amway Germany. Part of the donation will be used to expand the Odobescu orphanage to support more children.

Additional money raised will support the ‘Doina Pocioianu Therapy Through Art’ programme which has helped over 750 children with special needs since it began in 1998.


Company, $1,741,156

Distributors & employees, $1,067,150

Amway Europe donations to One by One projects

Encouraging employees and distributors to get involved

To encourage local support, employees are granted one day off per year to support organisations such as nurseries, hospitals, schools and orphanages. At the same time, Amway distributors take part in fundraising and provide their own time and energy in local projects. In total, employees and distributors invested over 55,000 hours in voluntary services in 2010.

Supporting the work of UNICEF

For the last ten years, Amway Europe has supported UNICEF (United Nations Children’s Fund) under the umbrella of the One by One campaign. UNICEF is now the largest recipient of One by One donations, receiving over 1.1 million dollars in 2010 alone. Projects include play and sensory rooms in Russia, nursery schools in Turkey, subscriptions by Amway Europe distributors and employees to UNICEF’s pledge programme, and support to the relief effort following the Haiti earthquake.

Haiti, $167,538

Nursery schools, $369,704

Pledge Program, $257,619

Play & sensory rooms, $244,776

Other donations, $156,353

Girls at the Atatürk Nursery built by Amway and UNICEF in Van.

amway europe donations toone by one projects

amway europe one by one donations to uniCeF projects

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Examples of One by One community projects supported by Amway Europe

Country Project Community

1 Austria School for LifeHelps children with learning difficulties using specially designed acting lessons. Amway supported the programme through a School for Life musical.

2 Croatia Every Child Needs a Family Support for research on foster care from the child’s perspective.

3Czech Republic

Kolecko - Children’s Trauma Clinic

This project provided funds to help children injured in accidents, primarily those who have experienced road traffic accidents.

4 DenmarkWalk your way into a Healthy Heart

Donations to the Danish Heart Foundation in more than 25 different places in Denmark.

5 Finland Naisten KymppiAmway distributors and employees ran for UNICEF in support of nursery schools in Van, Turkey.

6 FranceTheodora and the Paris Charity Run

Supporting clown doctors to help children in hospital have fun.

7 GermanyRonald McDonald’s Children Fund and various local charity donations

Partnering with Ronald McDonald’s House Charities, undertaking fund raising activities for UNICEF and a range of local projects in Germany.

8 Greece The Smile of the ChildThe programme focuses on the care of children in orphanages and the protection of their rights. Amway supported this project via donations, products, and voluntary work.

9 Hungary Global Handwashing DayThis project raises awareness among children of the importance of hand hygiene - one of the cheapest and most effective healthcare interventions.

10 Italy Abruzzo EmergencyVolunteering and donations to help in the relief effort following the Abruzzo earthquake.

11 Poland AKOGO FoundationSupporting the construction of the Alarm Clock Clinic to provide long-term rehabilitation for children suffering from neurological disorders.

12 Romania*Helping premature babies with heart disease

Amway Europe and distributors joined forces to purchase two high-tech medical devices designed specifically for neonatal wards to help newborn babies with heart disease.

13 RussiaSupport for OrphansA Child’s Smile

Amway and UNICEF opened 30 new play and sensory rooms in Russian social and medical institutions across 22 cities. Amway distributors also provided home care and personal care products for orphanages.

14 Slovakia ArabeskaSupporting gymnastics, dance and education activities for children with mental health problems.

15 Slovenia UNICEF Rag Doll AuctionThis initiative helped to raise funds for UNICEF’s project to vaccinate children against infectious diseases.

16 Spain Theodora Children Trust Supporting clown therapy to help children in hospital have fun.

17 Switzerland Swiss Children’s Homes Providing Amway products to children’s homes in the country.

18 Turkey* Brick by BrickVan is a remote province in Turkey, where only 11% of children have access to nursery schools. In association with UNICEF, Amway funded two new nursery schools in the region.

19 U.K. Children in NeedDonation to MK Dons SET for their Land’s End to John O’Groats bike ride.

20 Ukraine Road to SuccessThis project helped teenage orphans to prepare for independent life beyond the orphanage by developing their practical skills and abilities.

* Pan European Project


TURKEy - Atatürk Nursery School in Van

RUSSIA - the circus visits an orphanage in Moscow

FINLAND - Naisten Kymppi 10 km fun run for nursery schools in Van, Turkey

RUSSIA - Playroom opening in Chelyabinsk

RUSSIA - Equal in Sport

UKRAINE - Chestnut Run

UKRAINE - Road to succes ITALy - Abruzzo sports centre

CZECH REPUBLIC - Donation to the Kolecko - Children’s Trauma Clinic

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The winning team - Futbolishka from St. Petersburg

Well-being

In 2010, over 12,000 participants registered for Team NUTRILITE™ in Kiev’s Chestnut Run, raising 46,000 dollars to help children with heart disease. Goal by Goal raised 150,000 dollars for a new sports centre following the Abruzzo earthquake in Italy, while Amway Russia launched its new NUTRILITE football project – Equal in Sport – for children with special needs. Fitness and a good diet are important components of a balanced lifestyle. Team NUTRILITE is a community that has an online site that provides practical well-being advice and information on a range of opportunities for participating in sports and activity events.

Team NUTRILITE – building an online community

Team NUTRILITE™ is a community open to all those interested in leading a balanced lifestyle, making positive nutritional choices and taking regular exercise. Our online platform (in German and starting from 2011 also in Russian) offers practical advice from fitness trainers, nutritionists and physiologists.

Thanks to the Team NUTRILITE Online Community, members can also join a wide range of sports and activity events organised all over Europe by other members of the community and share their experiences.

Thousands of Amway consumers, distributors and employees have joined Team NUTRILITE to improve their well-being and fitness as well as being part of a Europe-wide community spirit. Further details can be found at www.teamnutrilite-community.eu/de or www.teamnutrilite-community.eu/ru.

Goal by Goal

In April 2010, forty children from L’Aquila, which was devastated by the Abruzzo earthquake in Spring 2009, were invited to a match at AC Milan’s San Siro stadium, where Amway made a donation of 150,000 dollars in the presence of Fabrizio Suaria, General Manager of Amway Italy. The funds – part of Amway Europe’s Goal by Goal programme - helped to build a new sports centre for children in the community: the NUTRILITE – AC Milan Sports Center which opened in October 2010.

Equal in Sport – engaging children with special needs

While many of us take sport and active living for granted, children with special needs often have fewer opportunities to participate. In November 2010, Amway Russia launched its new NUTRILITE football project, Equal in Sport, to help engage children with special needs.

A total of 73 children with special needs from low income families participated in the futsal (indoor football) competition. The project ran in four cities, and the final match was held in Moscow with the support of the Futsal Association of Russia, which also held the awards ceremony. The children had the opportunity to take a special sightseeing tour around Moscow.

What’s more, the winning team - Futbolishka from St. Petersburg - received an extra special prize, a visit to AC Milan where they met Ronaldinho and other star players.


disaster relief

The Haiti earthquake in January 2010 was devastating for families and communities. Amway Europe raised over 200,000 dollars to support the relief effort. We also supported emergency efforts in other parts of the world, including the floods in Hungary, the Czech Republic and Pakistan, and the earthquake in Italy.

Haiti earthquake

According to the Haitian Government, around one million people were made homeless by the devastating earthquake in January 2010. Schools and public buildings were damaged and destroyed. Amway Europe responded by giving over 200,000 dollars to support the relief operation.

Other relief efforts

In May and October 2010, heavy rainfall led to extreme flooding in parts of Hungary causing serious damage and displacing thousands of residents. In response, Amway Hungary supported the people of the flood stricken areas by calling for donations, products and voluntary assistance from Hungarian product distributors. Amway Hungary received an Appreciation Award from The Red Cross.

Other areas of the world where Amway supported relief efforts following natural disasters include the earthquake in L’Aquila, Italy and the floods in Pakistan and the Czech Republic.

Earthquake in Haiti: Red Cross Red Crescent responsePhoto: Talia Frenkel/American Red Cross (p-HTI0544)

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CAsE study

UKRAINE

Helping children with heart disease

NADEZHDA VASyLIIEVAGeneral Manager Amway Ukraine

“I would like to thank all the Team Nutrilite participants in the Chestnut Run. Each of them made their own contribution towards saving the lives of Ukrainian children.”

Every year, Amway distributors take part in the Chestnut Run in Ukraine. In 2010, we registered a record 12,971 participants for the event - making our Team Nutrilite the largest group of charity runners on the streets of Kiev on May 30th.

The team raised an impressive 46,000 dollars which went towards the development of the Centre of Cardiology and Cardio-Surgery. The Centre, managed by the Ukraine Ministry of Health, helps thousands of early-age children with congenital heart disease. The funds will be used to buy new equipment, medicines, and materials.

As well as raising funds, the day provided a great community spirit, with Amway distributors getting involved enthusiastically. And to top it off, over 5,000 coloured balloons were launched into the sky - the largest number ever released in Ukraine.

Almost 13.000 Amway participants

More than 5000 balloons were launched into the sky

ACKNOWLEDGEMENTS Contact We welcome your views about our efforts to be a more sustainable company.

you can contact us at: [email protected]

Credits This report has been prepared byAmway EuropeCorporate Social ResponsibilityBenzstrasse 11b-c82178 Puchheim / MunichGermany Consultancy, editing and design:Climate Aspect – [email protected] – [email protected]

Copyright © 2011 AmwayPhotographs in this report are copyright Amway GmbH unless otherwise stated.The paper used for this report is certified by the Forest Stewardship Council.

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