Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee...

40
MOVING YOUR BUSINESS FORWARD Sustainability Report FY2018 Vanderlande Industries Holding B.V. Financial Year 2018

Transcript of Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee...

Page 1: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

MOVING YOUR BUSINESS FORWARD

SustainabilityReport FY2018Vanderlande Industries Holding B.V.Financial Year 2018

Page 2: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

2

About this report 3

Highlights 4

Foreword from the CEO 5

Company profile 6

Core and brand values 7

Company locations 8

Sustainable ambition 10

Stakeholder inclusiveness 12

Materiality assessment 13

Health and safety at work 15

Design safety and ergonomics 18

Employee development and training 20

Employee engagement 22

Energy use (products and systems) 26

Sustainable product design 28

Responsible sourcing 30

Circular solutions 32

Corporate governance 35

GRI content index 38

Contents

Page 3: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 3

About this report

This report addresses the sustainability approach, position

and performance of Vanderlande Industries Holding B.V., a

fully owned subsidiary of Toyota Industries Corporation (TICO).

It has been prepared in accordance with the GRI standard:

core option.

This is Vanderlande’s first report in accordance with the GRI

standards. For this reason, it should be as a new baseline and

not compared with the previous report in respect to material

topics and their respective boundaries.

All data refers to Vanderlande’s financial year 2018 (1 January

2017 to 31 March 2018) and represents every employee

globally, unless otherwise stated. The financial year has been

extended to 15 months due to the acquisition of Vanderlande

by TICO in 2017.

Vanderlande’s previous Sustainability Report was published

on 3 June 2015 and covered the financial year 2015 (1 April

2014 to 31 March 2015). The company’s ambition is to now

produce a Sustainability Report biennially.

Vanderlande is not obligated by legislation to report on

sustainability. However, the company believes in transparency

and has chosen to voluntarily publish this Sustainability

Report. For this reason, it has not been externally assured.

Vanderlande acts in a practical way to apply the precautionary

principle in its approach while maintaining its competitive

position in the market. The company takes account of scientific

evidence and global trends to reduce carbon emissions and to

act responsibly.

For more information on Vanderlande and its reports, please

refer to www.vanderlande.com. Questions regarding the

content of this Sustainability Report can be addressed to

[email protected].

Page 4: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

4

Highlights

Foreword from the CEO

see page 5

Sustainable ambition

see page 10

GRI content index

see page 38

Health and safety at work

see page 15

Responsible sourcing

see page 30

Employee engagement

see page 22

Sustainable product design

see page 28

Circular solutions

see page 32

Design safetyand ergonomics

see page 18

Page 5: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 5

Foreword from the CEO

It gives me great satisfaction to welcome you to Vanderlande’s

latest Sustainability Report. This documents our performance

with regard to this topic during FY2018, as well as outlines our

overall philosophy, through which we will further strengthen

our approach. Sustainability is an integral part of our corporate

strategy and provides a strong, long-term basis for doing good

business with our customers.

In today’s world, the increasing needs of our growing population

create more strain on the planet’s natural resources. As a result,

raw materials are becoming increasingly limited in availability.

However, the rising levels of digitalisation result in smarter

responses from the industry, enhance customer experiences

and create insights into sustainability issues, as well as provide

intelligent solutions to these challenges.

Innovative and fast-growing companies such as Vanderlande must

strive harder than ever to reduce CO2 emissions, help to establish

circular-based economies, look after the long-term wellbeing

of its people, and respect the natural capacity of our planet. By

driving forward with our vision on sustainability, Vanderlande is

displaying its dedication to being a responsible entity within the

global community.

This means that we not only look after our own needs as a business,

but also respect our position in the world and understand the

ecological impact of our activities. Sustainability is part of

Vanderlande’s everyday working practice and, in this way, we can

further improve the competitive positions of our customers. It is

already a fundamental part of our design processes and means

that we look at the materials we use to see if they can be recycled.

We are inspired by circular economy principles and see it as our

responsibility to cooperate with partners, key customers and other

third parties to evolve towards circular systems. Vanderlande can

achieve positive outcomes by offering business models, such as

‘managed services’ and integrating our activities along the entire

value chain. By doing so, we can expand our areas of influence

and allow our sustainable approach to become even more visible.

Our people can also help us to make a difference and we want

to attract highly motivated employees, who can proactively add

value and align with our strategic goals.

Sustainability is given a high priority within our organisation and

it is regularly discussed at board level. Our current structure offers

transparency and visibility, but we are also continuing with our

efforts to make sustainable thinking more driven from the bottom

up. In recent years, it has been satisfying to see sustainability

become further embedded within our DNA. Today, all of our

employees internationally have the power to make a positive

impact with regard to our ambitions.

Due to our market-leading position, Vanderlande is in an ideal

position to assist our customers in implementing their own

sustainability strategies, and we can also exert a positive

influence on our suppliers to help us achieve this. Our approach

has already yielded some exciting results and I am delighted that

we have been helping customers across all of our core markets to

realise their sustainable ambitions.

For example, in the airports market, we recently launched FLEET,

a flexible baggage handling solution that uses autonomous

vehicle technology. It makes a bold statement of intent from

Vanderlande to the industry, due to the high level of innovation

involved and the fact that we are delivering FLEET ‘as a service’ to

our customers. In addition, it contributes strongly to our ‘green’

credentials, because FLEET consumes up to 50% less energy than

a traditional baggage system.

At Vanderlande, we not only focus on our economic and

environmental impact, but also on our internal processes and

people. We promote a healthy work environment for every

colleague around the world in line with good welfare standards and

strive to support their personal growth. Through this approach, we

intend to develop the skills and knowledge that are required both

now and long into the future.

In February 2018, we were awarded the highest rating in the

category of ‘Manufacturing and Industry’ in the Best Employer

Survey (The Netherlands). This result is based solely on the

personal feedback of our colleagues, which also shows that we

actively allow our colleagues to speak up about any potential

issues and respond directly to their opinions.

We are proud of the progress we have made on sustainability,

and the recent acquisition of Vanderlande by Toyota Industries

Corporation (TICO) creates significant opportunities to investigate

and develop further initiatives together. TICO has a clear vision

on sustainability and displays an active commitment to corporate

social responsibility. As a result, we expect that the knowledge-

sharing and cooperation between both organisations will also

have positive overlaps in this field.

Vanderlande has never been more ready to achieve the targets it

has set itself on sustainability, and we hope to pass on the benefits

to our customers. With the knowledge, skills and enthusiasm of

our employees and partners, we can look forward to achieving an

exciting programme of activities.

Remo Brunschwiler

President & CEO Vanderlande

Page 6: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

6

Company profile

AIRPORTS

WAREHOUSING

PARCEL

>5,500 EMPLOYEES

1.4 billion REVENUE

Established since 1949

Global market leader

million bags per day

10.1 AIRPORTS INCLUDING

13 OF THE WORLD’S TOP 20

600

39 millionp a r c e l s s o r t e de v e r y d a y

Largest

parcel

and postal

companies5

global e-commerce playersretailers

of the largestMany

innovative systems intelligent so�ware life-cycle services

> Atlanta Airport

> London Heathrow Airport

> Hong Kong Int. Airport

> Amsterdam Airport Schiphol

> Amazon

> Lidl

> Zalando

> Asda

> UPS

> Deutsche Post DHL

> TNT

> FedEx

> DPD

Vanderlande’s baggage handling systems move 3.7 billion pieces

of luggage around the world per year, in other words 10.1 million

per day. Its systems are active in 600 airports including 13 of

the world’s top 20. More than 39 million parcels are sorted by

its systems every day, which have been installed for the world’s

leading parcel companies. In addition, many of the largest global

e-commerce players and distribution firms have confidence in

Vanderlande’s efficient and reliable solutions.

The company focuses on the optimisation of its customers’

business processes and competitive positions. Through close

cooperation, it strives for the improvement of their operational

activities and the expansion of their logistical achievements.

Vanderlande’s extensive portfolio of integrated solutions –

innovative systems, intelligent software and life-cycle services –

results in the realisation of fast, reliable and efficient automation

technology.

Vanderlande was acquired in 2017 by a successful, strategic

partner, Toyota Industries Corporation. The synergies between

the two companies exist with: the cross-selling of products and

solutions; product innovations, for example with automated

guided vehicles (AGVs); and joining forces in research and

development. The two companies have a strong strategic match

and the financial strength of Toyota will help Vanderlande to

continue with its sustainable profitable growth.

Vanderlande has more than 5,500 employees, all committed to

moving its customers’ businesses forward at diverse locations on

every continent. With a consistently increasing revenue of more

than 1.4 billion euros, it has established a global reputation over

the past seven decades as a highly reliable partner for value-

added logistic process automation.

Group structureVanderlande Industries Holding B.V. is a limited liability company

incorporated and domiciled in The Netherlands and is registered

in the Commercial Register of The Netherlands Chamber of

Commerce under no. 16055699. The address of its registered

office is Vanderlandelaan 2, Veghel. Vanderlande Industries

Holding B.V. is a 100% participating interest of Toyota Industries

Europe AB.

Vanderlande is the global market leader for value-added logistic process automation at airports,

and in the parcel market. The company is also a leading supplier of process automation solutions for

warehouses.

Page 7: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 7

Core and brand values

CONTINUOUSLY LEARN,

DEVELOP AND INNOVATE

WE AIM TO BE THE BEST

TAKE PERSONAL

RESPONSIBILITY

TO MINIMISE

OUR FOOTPRINT

IN A SAFE AND ENGAGING

WORKING ENVIRONMENT

WORK TOGETHER

AS A TEAM

Our core values define Vanderlande. If we have a drive to

win, we will finish projects ahead of schedule and beat our

competitors. However, we’re always learning to do things

every day better.

We care, not only about our own colleagues, but also

about our customers. Creating a safe base is vital in

safeguarding everyone’s wellbeing, so we can all work in a

positive environment.

Teamplay is how we work together, how teams are built

and cooperating effectively at all levels. Finally, ownership

is about performing to the highest level and taking

responsibility for your actions.

Our brand values are how our customers define their

experience of working with us.

> Reliable: predictability and trustworthiness are

paramount – reliable products, technology, service and

people

> Together: we enjoy working as a team and aim to

support our customers in every way

> Sustainable: we embrace the triple bottom line

commitment to people, planet and profit

> Trendsetter: we surprise our customers with innovative

solutions to enhance their businesses – and in doing

so, set the standard

> Best customer value: our customer insight and industry

expertise allows us to create added value

Vanderlande headquarters in Veghel, The Netherlands

Page 8: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

8

Company locations

> Canada

> Mexico

> Colombia

> Chile

> U

Vanderlande site-based teams

Vanderlande offices

A global presenceAlthough its headquarters are located in Veghel, The Netherlands,

Vanderlande’s employees are involved in a variety of activities across the

globe. To support them, the company utilises a network of strategically

placed offices. From these, more than 100 service teams and many other

site-based personnel actively support Vanderlande’s customers with system

maintenance, logistics management and business improvement processes.

Vanderlande’s core focus remains project-based and it accepts full

responsibility for the supply of materials to these projects. In addition, the

company is committed to reducing its environmental impact. It proactively

seeks ways to lower both its logistics and transportation costs. In addition,

it has organised its supply chain as efficiently as possible in response to

international growth, and retains three dedicated centres in Europe, North

America and Asia.

Vanderlande has also accommodated the significant growth and further

development of its suppliers. For example, it opened an additional

manufacturing facility in the USA and sees many exciting future innovations

within the company’s product groups. These include other companies it has

acquired with a solution-specific focus, such as Vanderlande Beewen and

Vanderlande Smatec.

In its supply chain, Vanderlande is currently redesigning its processes in order

to manage the company’s growth. The aim is to be more flexible and effective

in ordering, manufacturing and shipping, as well as executing installations

and commissioning on site. By working in a smarter way, Vanderlande’s daily

global activities are contributing to its overall efficiency, and progressing its

circular economy ambitions.

Consolidated legal entitiesVanderlande Industries Holding B.V., Veghel, The Netherlands — Vanderlande Industries

B.V.,Veghel,The Netherlands — Vanderlande Industries Contracting B.V., Veghel,

The Netherlands — Equipment Supply International B.V., Veghel, The Netherlands —

Vanderlande Beewen Verwaltungs G.m.b.H., Siegen, Germany — Vanderlande Beewen

G.m.b.H. & Co., KG, Siegen, Germany — Vanderlande Industries Holding Deutschland

Verwaltungs G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries Holding

Deutschland G.m.b.H. & Co., KG, Mönchengladbach, Germany — Vanderlande Industries

G.m.b.H., Mönchengladbach, Germany — Vanderlande Industries G.m.b.H., Dortmund,

Germany — Vanderlande Industries United Kingdom Ltd., Hampton—in—Arden, United

Kingdom — Vanderlande Industries Espana S.A. Sociedad Unipersonal, Barcelona,

Spain — Vanderlande Industries Santpedor S.L.U., Santpedor, Spain — Vanderlande

Industries Logistics Automated Systems (Shanghai) Co., Ltd., Shanghai, China —

Vanderlande Industries Hong Kong Ltd., Hongkong, China — Vanderlande Industries

Private Ltd., New Delhi, India — Vanderlande Industries Software Private Ltd, Pune,

India — Vanderlande Industries Inc., Marietta GA, USA — Vanderlande Industries BHS,

LLC, Marietta GA, USA — Vanderlande Industries Manufacturing USA Inc., Calhoun GA,

USA — Vanderlande Industries Singapore Pte, Ltd, Singapore, Singapore — Vanderlande

Industries Canada Inc., Vancouver, Canada — Vanderlande Industries S DE RL DE CV

Jalisco, Ciudad Granja, Mexico — Libyan Airport Technology Joint Venture Company,

Tripoli, Libya — Vanderlande Industries OOO (LLC), Moscow, Russia — Vanderlande

Industries LLC, Dubai, Dubai — Vanderlande Industries Do Brasil Comercializacao,

Importacao e Instalacao de Sistemas de Bagagem Limitada, Sao Paulo, Brasil —

Vanderlande Industries Australia Pty, Ltd, Sydney, Australia — Vanderlande Industries

(Thailand) , Ltd, Bangkok, Thailand — Optosecurity Inc., Quebec City, Canada —

Optosecurity Corp., Delaware, USA — Optosecurity B.V., Amsterdam, The Netherlands.

Vanderlande has an investment in Smart Robotics (The Netherlands), which is not

included in the consolidation.

Permanent: 875

Temporary: 2

Vanderlande supply chain centres

Page 9: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 9

> Argentina

> Brazil

> Spain

> Italy

> United Arab Emirates

> Oman

> Hong Kong

> Shanghai

> South Korea

> Singapore

> Australia

> Saudi Arabia> India

> Malaysia

> Germany

> Russia

> France

> United Kingdom

> Veghel, The Netherlands (Headquarters)

> USA

> Norway

> Poland

> Switzerland

Total employees 5,501(Headcount - 31 March 2018)

Permanent: 4,901

Temporary: 600

Female 842

Full time 645

Part time 197

Male 4,659

Full time 4,376

Part time 283

MalePermanent 4,187Temporary 472Total 4,659

FemalePermanent 714Temporary 128Total 842

Permanent: 117

Permanent: 425

Temporary: 191

Permanent: 106

Temporary: 2

Permanent: 3,234

Temporary: 349

Permanent: 144

Temporary: 56

Page 10: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

10

Sustainable ambition

With the continuous growth and increasing life

expectancy of the global population and the

rise in average wealth and social opportunities

of developing nations, natural resource use,

escalating greenhouse gas levels and equality

issues are becoming a global challenge. Everyone

is required to act responsibly and contribute to

effective solutions.

Vanderlande believes that by working hard today, in joint effort

with its employees, customers, suppliers and other stakeholders,

it can make a difference for its future and make the world of

tomorrow a better place. By establishing – and working towards

– the company’s long-term ambitions on sustainability, it can

continuously drive and challenge itself to perform better every day

based on the following three key global drivers:

Establishing a healthy and fair societyThis is a fundamental need that drives sustainable development.

Clean water and air, and healthy and available food sources are

the most primary needs for the world’s population.

The basic UN sustainable development goals aim to eradicate

poverty, end hunger, and to ensure clean water and sanitation

for everyone. These goals also go further to build on the need

for social and economic development that supports the creation

of an inclusive, healthy and fair society, and proactive and

responsible governance. Vanderlande’s approach incorporates

these principles.

A safe base is at the heart of Vanderlande’s business and it believes

that the highest levels of health and safety are fundamental.

Through active engagement and training, the company also

develops a working environment in which its employees can

continually learn and develop, while Vanderlande believes that

strong leadership is the key for a successful and sustainable

future.

Respecting the natural capacity of our planet This relates to the long-term ability of our ecosystems to maintain

themselves. It is becoming increasingly evident that the world

climate is changing, resulting in an increased risk of floods,

droughts and other natural phenomena that are reported to be

strongly related to global warming.

With the energy transition in progress, steps are being taken to

establish a low-carbon economy. It is important to support the

UNFCCC Paris Climate Agreement, which world economies have

signed up to, with the outcome of driving down greenhouse gas

emissions. This currently provides the most pressing example

of the need for a collaborative approach towards protecting our

planet.

Vanderlande cares about how its business activities impact on the

environment and the part it plays in resource availability, waste,

energy use and climate change. The company is also dedicated

to reducing its energy use, and continuously engages with its

customers on a range of initiatives to achieve this.

Establishing a circular-based economyThis driver requires governments, businesses and other

organisations to use less scarce raw materials for economic

growth. By accelerating the circular economy, outcomes including

a reduction in raw material resource use, waste and emissions will

help to close energy and material loops, and optimise the use of

resources.

Vanderlande can contribute to establishing a circular-based

economy through its corporate governance, which enables

proactive cooperation with a multitude of partners both locally

and globally. The company is also committed to developing

circular services and products and supporting initiatives that help

to accelerate these.

The three drivers translate to Vanderlande’s pillars of sustainability

– people, planet and profit – which have been rooted to the core

of the company’s strategy for several years.

The company is able to share its knowledge and expertise

with partners throughout the entire value chain. By doing

so, sustainability will deliver a range of benefits, broaden

Vanderlande’s horizons and create opportunities to respond to a

rapidly changing world.

However, its sustainable ambitions cannot be achieved in

isolation. To succeed, Vanderlande must work closely with all

stakeholders to realise a sustainable business and a better world

for all communities.

Vanderlande believes that embracing sustainability and making

this an integral part of its daily activities is the only way to have a

strong profitable business, to contribute to the protection of the

planet and to take care of its people.

The company holds itself accountable for the effect that its

activities and decisions have on people and the environment.

The company’s ambition is to implement sustainable solutions

worldwide and it considers the processes and work involved in

achieving these to be both rewarding and worthwhile.

Although there are many challenges ahead, Vanderlande is making

considerable progress in its performance on sustainability and has

set itself clear targets. With the knowledge, skills and enthusiasm

of employees and partners, it will succeed in achieving significant

results.

“Vanderlande cares about how its business

activities impact on the environment and the

part it plays in resource availability, waste,

energy use and climate change.”

Page 11: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 11

Establishing a circular-basedeconomy

Circular solutions

Corporategovernance

Respecting the natural capacity of our planet

Establishing ahealthy and fair society

Health and safety at work

Design safety and ergonomics

Employee developmentand training

Employeeengagement

Energy use products and systems

Sustainableproduct design

Responsiblesourcing

Page 12: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

12

Stakeholder inclusiveness

StakeholdersAs Vanderlande continues to drive its business forward in the

pursuit of sustainable development, it actively encourages its

stakeholders to join forces in the realisation of common goals. This

is because the focus on sustainable development and the impact

of business operations are not just about what Vanderlande does

in isolation. It involves the entire value chain and the company

understands that it is only one of the links in this process.

Vanderlande is confident that through open, transparent

and systematic engagement with its stakeholders (including

employees, customers, suppliers, local communities, government

organisations and industry bodies) it can jointly lead the way.

By obtaining feedback from all stakeholders, the company can

continuously review and update its strategy, policies and general

conduct on sustainability.

To achieve this, Vanderlande regularly connects with its

stakeholders via customer engagement, key customer focus

programmes, conferences and supplier audits, as well as

cooperating on industry initiatives and conducting employee

surveys. The key topics raised from engagement relate to a wide

range of subjects. As an example, the action to investigate the

needs of the company’s more mature employees was developed

from the extensive employee surveys. In addition, the internal

safety climate surveys led to behavioural programmes being

developed and rolled out on a global basis.

Vanderlande has also experienced an increasing demand for the

energy management of its systems by engaging with customers.

For this report, Vanderlande has identified – and engaged with –

internal sustainability representatives by assessing factors such

as their expertise, enthusiasm, location and leadership skills.

By exploring the topic of sustainability together, Vanderlande can

have a greater impact and create more opportunities for tangible

benefits relating to the environment – both now and in the future.

Suppliers Other stakeholders

Employees Customers

“Vanderlande actively encourages its

stakeholders to join forces in the realisation

of common goals.”

Stakeholder engagement (employees)

Page 13: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 13

Materiality assessment

People Planet Profit

Product packaging

Circular solutions

Customer-driven solutions and

engagement

Employee engagement

Energy use (manufacturing and

shipping)

Responsible sourcing

Sustainable product design

Energy use (products and systems)

Health and safety at work

Design safety and ergonomics

Employee development training

Corporate governance

Quality, reliability and performance

Transparancy, accountability

reporting

Legislation

Bribery, corruption and business

ethics

IT security

Equal opportunity and diversity

Waste management

Supporting local communities

Energy use (facilities and

business travel)Water management

MINOR MEDIUM HIGH MAJOR

MIN

OR

ME

DIU

MH

IGH

MA

JOR

Relative importance to Vanderlande business success

Sig

nifi

can

ce o

f e

con

om

ic,

en

viro

nm

en

tal a

nd

so

cia

l im

pa

ct t

o s

ust

ain

ab

le d

eve

lop

me

nt

Material matrixIn sustainability reporting, ‘materiality’ is the principle that

determines which topics are sufficiently important to report on.

Through positive stakeholder engagement, and by assessing

their input, via a workshop based on GRI reporting principles a

materiality assessment is undertaken. This is used to gather

insights into the relative importance of specific economic,

environmental and social impacts, and highlight where

Vanderlande can have the most significant impact.

The company’s previous materiality assessment was carried out in

the process of writing its second Sustainability Report (FY2015).

For the FY2018 report, Vanderlande has updated its materiality

assessments by reviewing the sustainability issues it faces afresh,

reconfirming its long-standing focus areas, and clarifying and

shaping its strategy.

The materiality matrix maps out topics by their relative importance

to sustainable development and Vanderlande’s business

success. All topics are categorised based on the three pillars of

sustainability – people, planet and profit.

The topics in the four upper right-hand sections fall above the

materiality threshold for the purpose of this report and are deemed

‘material’. Those mentioned below the materiality threshold are

considered ‘non-material’. It is important to note that some non-

material topics can be mentioned in this report if an overlap or

other instance of contextual relevance occurs.

Working with the materiality matrix enables Vanderlande to focus

on the areas in which it can have the greatest positive impact,

minimise negative impacts, and identify emerging issues and new

leadership opportunities. Targets have been set regarding each of

the materiality topics deemed important by its stakeholders.

Further information about the issues covered by the materiality

matrix, and corresponding GRI disclosures, can be found in the

GRI Content Index (page 38).

Materiality Assessment Vanderlande FY2018

Page 14: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

14

Material topics

Page 15: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 15

Health and safety at work

Upholding the highest standards of health and safety is

fundamental to all of Vanderlande’s stakeholders, whether it be

in the initial design phase or during daily work activities. Creating

a proactive health and safety culture drives the company’s

reputation as a leading international employer and supplier.

As Vanderlande continues to grow, it is welcoming many new

recruits across the globe. Every employee expects – and deserves

– to work in a safe environment that not only protects them from

the risk of an accident or ill health, but also promotes good mental

health and a healthy lifestyle. Vanderlande’s care for the whole of

its workforce is driven by a basic respect for human rights and the

establishment of a fair and equitable society.

Workforce engagement, active involvement and the promotion of

the right safety behaviours are fundamental to achieving a strong

health and safety culture. This also ensures that employees are

committed to promoting high standards and making continual

improvements. Employee safety climate surveys are utilised in

the business to identify potential areas for development and

benchmarking is also undertaken.

Visible safety campaigns are designed to initiate conversations

regarding safety and communicate coherent safety messages.

Vanderlande’s commitment to its people means not only investing

in incident prevention, but also looking at long-term ergonomic

and social challenges. There is an increasing focus on issues

including mental health, fitness and overall wellbeing, which

complements Vanderlande’s health and safety activities.

The company’s operations involve a number of high-risk activities,

which – if not strictly controlled – create the potential for fatal

or life-changing injuries. In addition, activities can impact on

the health of Vanderlande’s employees in regards to shift work,

ergonomics, hazardous substances and business travel.

No matter where it does business, Vanderlande’s expectation is

that every employee can return home safely at the end of every

day. This is non-negotiable and the promotion of a proactive

approach to health and safety provides the foundation on which

its approach is developed.

The boundary of Vanderlande’s health and safety activities are

driven by the scope of its global operations. This encompasses all

locations around the world, and includes work on Vanderlande’s

own and third-party sites. As an international company, it

appreciates that cultural maturity and standards can vary, and are

influenced by local legislation, customers, contractors and other

parties, as well as the company’s own teams.

It is important to influence a wide range of stakeholders in respect

to safety, as the poor performance of one could have a negative

effect on others. Vanderlande has the ability to have a positive

influence on many of its stakeholders, including its supply chain

partners, and the actions of its employees and customers. As such,

being a proactive partner can really help to control the outcomes.

Safety at work campaign

Page 16: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

16

A significant proportion of Vanderlande’s business takes place

at customer locations, where it delivers integrated systems and

services. Therefore, its responsibilities extend to ensuring that

there is effective coordination of health and safety risks on each

site. This mainly involves the company’s customers, contractors

and subcontractors, but can also extend to interactions with

visitors, the general public and other parties.

In addition, decisions made during the design process (see ‘Design,

safety and ergonomics’ on page 18) are extremely important in

terms of their influence on the safety of teams interfacing with

a system. As a result, these decisions are integrated through

the identification and communication of residual risks in the

engineering design phase.

Vanderlande’s approach is aimed at developing leaders who

can create and contribute to a health and safety culture that

delivers high standards and minimises risk. A ‘safe base’ is one

of Vanderlande’s core values and provides a strong foundation for

its teams. These values are communicated to new recruits during

their induction and reviewed as part of their ongoing appraisals.

Vanderlande’s philosophy on safety is best summarised by the

saying, ‘if it can’t be done safely, then don’t do it’. The company’s

CEO leads this through commitments in the corporate health and

safety policy, which summarises the importance of safety within

the business – ‘there is no job so important that it may be done

in an unsafe manner’. This creates a strong and clear message

to employees, contractors and stakeholders that safety is of the

utmost importance.

Health and safety is the responsibility of Vanderlande’s line

management and is supported by dedicated professionals who

provide strategic direction and specialist advice. Vanderlande’s

goal is to promote high standards within all of its business

activities in order to eliminate accidents and ill health. This

is driven through commitment at the top of the organisation

and means that everyone has a clear understanding of what is

expected of them.

The company recognises the importance of its managers in

implementing high standards. They are responsible for leading

by example and providing adequate resources for the activities

under their control. Influencing the behaviours of Vanderlande’s

managers supports a proactive approach to the execution of

critical safety activities. This minimises the risk of accidents, and

maintains a strong health and safety culture.

Vanderlande’s behavioural safety programme focuses on

developing the skills of its senior managers to actively engage

with teams on an ongoing basis and deal with any issues raised.

In addition, user-friendly tooling and documentation has been

developed in conjunction with operational teams to ensure that it

provides a practical and safe way of working.

Until recently, Vanderlande’s approach to health and safety has

been decentralised. In 2017, the company recruited a Global

Head of HSE (health, safety and the environment) to lead its

international approach, build a strong network of HSE managers,

share information and best practices, align standards, and drive

forward with improvement initiatives.

Safety training

Page 17: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 17

Targets

Health and safety at work FY2018 FY2019 FY2020 FY2021

Enhance global HSE and sustainability organisation and roll out strategy √ √

Improve central collection of H&S data √ √

Organise safety climate survey √ √ √ √

Develop and roll-out H&S database √ √

Implement global behavioural safety roadshow √ √

Implement working at height best practice programme √ √

Implement moving machinery best practice programme √ √

Implement electrical safety best practice programme √

Global improvement programmes are focused on safety-critical

activities and assisting local teams with tooling and training

packages to support their delivery. At a local level, HSE resources

provide support to teams by promoting a positive health and safety

culture, planning the implementation of safety requirements,

communicating legal requirements and training needs, and

managing incidents.

Adhering to legislation is a basic deliverable and this is

enhanced through the implementation of safety toolkits and

training. Vanderlande has been recognised by external parties

and customers for delivering high standards in this area. The

company’s safety management systems are based on OHSAS

18001 and, in time, this will be updated to the new ISO45001

standard, which has been introduced in 2018.

Vanderlande is aware that the continued promotion of a positive

health and safety culture, effective planning, clear communication

structures and the ability to respond quickly to changing situations

are critical. Through effective coordination and engagement at

all levels internally and externally, a solid network structure is

created that can adapt to changing situations and guarantees that

everyone continues to stay safe.

Making the safety management system work effectively

involves the need to manage the interfaces with Vanderlande’s

stakeholders and promote constructive dialogue with all parties,

including customers, subcontractors, employees and other

representatives. This ensures that actions are aligned with

stakeholder requirements, are appropriate to the activities being

undertaken and are continually reviewed.

Vanderlande’s effective engagement programme is important to

ensure the health and safety processes, and control measures

address the risks and concerns faced by individual workers and

teams. The method of engagement will depend on cultural and

regional factors, and will include the country, site where the work

is taking place and legislative requirements. There is no internal

corporate requirement to hold formal health and safety committee

meetings, however all locations are required to ensure that this

is effectively managed to support Vanderlande’s core value of

having a safe base.

If management/worker health and safety committees are in place,

then this is usually at a site or business unit level. The meetings

are attended by elected or voluntary representatives from the

workforce, as well as local management and safety team members.

Minutes are taken to ensure that the action points and decisions

are not only recorded, but also pursued. Due to the structure of the

business and its networks, it is currently difficult to identify the

exact percentage of workers represented in formal committees,

however this figure has been calculated at approximately 60%

based on a high level review of teams.

If there are no formal management/worker meetings in place,

informal gatherings and direct engagement with workers fulfil

the same purpose. This ensures that all workers have a voice in

influencing health and safety issues.

Vanderlande’s primary concern is for the whole of its workforce,

whatever role they have and in whatever location they work. As

a responsible organisation, it acknowledges that the actions

of every employee reflect its commitment to health and safety.

The company actively monitors its approach through quality

management systems, individual representatives and annual

reporting.

“Vanderlande’s commitment to its people

means not only investing in incident

prevention, but also looking at long-term

ergonomic and social challenges.”

Page 18: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

18

Design safety and ergonomics

The company’s material handling solutions impact upon the

health and safety of those that interact with them during their

entire life cycle, which can last over 20 years. Working with

safe and ergonomic products and systems touches the core of

sustainable business and applies to both Vanderlande’s and its

customers’ teams.

Design has a significant impact across the value chain of

Vanderlande’s products. Manufacturing, assembly, installation,

commissioning, operation, maintenance, modifications and

dismantling all need to be performed in a safe and responsible

way. Various legislation and standards apply to design safety and

must be taken into account.

Supplying safe solutions is a primary expectation of Vanderlande,

its customers and other stakeholders. High standards of health

and safety are fundamental, critical to the company’s success,

and have a social impact on the people working with its systems.

Long-term ergonomic and health effects can be influenced by

interfaces with displays and other human factors. Vanderlande’s

solutions inherently contain moving parts, heavy items and can

often involve the need to work at height. Moreover, the increased

levels of automation, with higher speeds and capacities, result in

increasingly complex systems and a higher potential of injury. It is

important to manage health and safety issues in the design phase

in order to minimise risk during operations and maintenance.

Vanderlande’s approach is aimed at developing products and

solutions that integrate life-cycle safety into the design. Within

its R&D department, a safety competence team is responsible for

staying up to date with international regulations and certification

standards. It also creates awareness, develops and rolls out

training programmes, and constantly challenges the safety level

of Vanderlande’s systems.

As an expert in its field, Vanderlande has a responsibility to act in

the right way and influence global safety standards. With this in

mind, a number of the company’s internal design safety experts

are involved with international standarisation committees, such

as technical committee TC148-WG2 with a focus on redrafting EN

619.

Safety is of paramount importance within the Vanderlande

process map for the development of products. In accordance with

legal requirements, various review sessions, failure mode effect

analyses and risk assessments are integrated into the stage gate

model. This means that residual risks are made available for

Vanderlande’s project engineers, who take the focus of safety

from a product to system level.

Integrated design safety is the responsibility of the company’s

various engineering departments across the globe. To comply with

legal and the company’s high standards, performing a health,

safety and risk assessment is therefore part of the aforementioned

process and applies to every product the company designs.

STACK@EASE ergonomic baggage handling device

Page 19: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 19

Targets

Design safety and ergonomics FY2018 FY2019 FY2020 FY2021

Create R&D safety design competence team √

Centralise the user interface and ergonomics design competence √

Train one certified machine safety expert √

Implement design safety process review √

Redesign the user experience of two major software products √

Make 80% of sales and technical organisation aware of the added value of

user-centered design

Have user experience design embedded in the organisation √

Delivering a safe system for customers does not stop at the design

phase. It follows a chain within Vanderlande and encompasses

site implementation and inspection, as well as documentation

and certification, which helps to ensure the creation of a safe

working environment.

As a fast-growing company in a rapidly changing market,

Vanderlande needs to adapt and improve, and continuously learn

and understand the world of its customers, and factor in user-

centric designs and ergonomic evaluation assessments. Over

the past decade, it has delivered highly innovative solutions in

line with this approach, including PICK@EASE and STACK@EASE.

These have significantly decreased physical stress for employees

during the processes of item picking and baggage handling.

The immediate future also shows that some developments

in IT are booming, such as apps on mobile devices, artificial

intelligence and big data. By considering the design of aesthetic

and intuitive applications for the user, while designing smart

technological solutions, the improvement of human performance

and equipment goes hand in hand.

Vanderlande also has a User Experience department that designs

human-system interactions, and therefore assesses such human

factors as cognitive and physical ergonomics. It ensures that

workplaces and user interfaces are not only designed around

business and technical requirements, but also the needs,

capabilities and limitations of human operators.

Proven analysis and design methods are used, such as those

provided in international standards, for example: ISO 9241,

Ergonomics of Human-system Interaction; and EN 1005, Safety of

Machinery – Human Physical Performance. The focus on usable

software and ergonomic solutions guarantees that everyone who

interacts with Vanderlande systems is protected from long-term

health issues.

In today’s climate, the scarcity of manual labour and high

market demands are increasing the pressure on the distribution

performance of material handling systems. Vanderlande believes

that the next generation of ergonomic solutions will also reflect

a strong human-machine interface, in which repetitive tasks

currently performed by a human operator can be assisted or fully

taken over by robots.

Vanderlande is investing heavily in smart robotics and it

showcased its smart item robotics (SIR) technology at the LogiMAT

exhibition in 2017. SIR focuses on the robotised handling of single

items during order picking and infeed loading. It is an effective

and low-risk way to gradually introduce robotic technology into an

active environment, while retaining high levels of scalability and

flexibility.

Robotising tasks reduces the physical effort required by human

operators, but increases the cognitive pressure they face.

Supervisory tasks will become more important, resulting in higher

levels of human-to-device interaction. Systems should, therefore,

be optimally designed for use with people – ‘cognitive ergonomics’.

Through increased computer intelligence, Vanderlande’s systems

can help its customers to make more informed choices, as well as

link seamlessly to the company’s global service team.

With its market-leading position and customer base around the

globe, Vanderlande senses an opportunity to optimise working

conditions for a large number of workers. Alongside the obvious

ergonomic factors, the company intends to work closely with

customers to optimise other aspects, including environmental

conditions, as well as behavioural and organisational influences.

Vanderlande’s annual reporting structure, management systems,

and dedicated internal and external representatives, also ensure

that it can proactively evaluate its associated activities.

“As an expert in its field, Vanderlande has

a responsibility to act in the right way and

influence global safety standards.”

Page 20: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

20

Employee development and training

Skilled and dedicated employees are a pivotal factor behind

Vanderlande’s success, and at the centre of its ‘How to Win’

strategy. The company wants its employees to have confidence in

their abilities and to feel passionate about their work, because

long-term, personal and professional development results in

high levels of satisfaction, motivation and engagement. Enabling

people to develop and expand their capabilities will also have a

positive influence on the company’s future growth.

The company believes in the added value – from both a personal

and business perspective – of continuous learning. However,

having access to a high standard of education is not equally

available to all people. For this reason, Vanderlande is keen to

support the growth of employees at every level globally, which will

also help in retaining knowledgeable and talented individuals.

Technology is changing and evolving more rapidly than ever.

Vanderlande needs to serve its customers in the most effective

way and create loyalty to achieve sustainable profitable growth.

The company’s employees develop the path to new solutions

and satisfied customers, however, they need the right knowledge

in order to meet the increasing demand for logistic process

automation. This applies to both new and more senior employees.

Employee development and training within Vanderlande focuses

on their current competency, which is based on three pillars:

knowledge, skills and attitude. Within the HR department,

the Vanderlande Academy plays an important role in helping

employees to reach their potential. Its vision is to meet the

requirements of its ‘internal’ customers by providing the

necessary training programmes and closely mirroring any business

developments. This is reflected in its approach – ‘short time to

knowledge, learn effectively, anytime and anywhere’.

Due to continued growth, a new Vanderlande Academy (certified

BREEAM Excellent) building is under construction at the

company’s headquarters in The Netherlands. This is scheduled to

open by the end of 2018. The building will house the company’s

growing Academy team of consultants and trainers, and highlights

Vanderlande’s dedication to the development of its employees.

Learning through Vanderlande aligns with the ‘70-20-10’ model.

This takes a formal approach through structured programmes

and courses to create an initial knowledge base. The next stage

involves social learning via networks, sharing and coaching to

provide insights into how to implement this basic knowledge, and

then experiential learning. Vanderlande is constantly challenged

by its customers to create better products, services and systems

to improve their competitiveness. As a result, there are numerous

opportunities for development and training on offer.

Vanderlande’s HR team also plays an important role in

coordinating the training needs of employees, and facilitating

learning and development activities at a local level. The concept

of the Vanderlande Academy is currently being rolled out to the

company’s major office locations in the USA, Spain, India and

China, where its HR teams can create a strong and sustainable

platform for learning. It will also provide easier access to a growing

international pool of talented employees.

“In a world of technology, a belief in people”

A global approach to training is the key to achieving Vanderlande’s

preferred one way of working across all of its activities and to

support its growing customer base. However, having the requisite

skills is not enough and the application of knowledge is equally

important. The company works with standard processes across

the world and the next step is to roll out learning modules on how

to apply these. This will further improve Vanderlande’s flexibility

and international workload levelling.

In addition, ‘train-the-trainer’ programmes facilitate growth in

local and regional competences. The materials used in these

courses are standardised and centrally maintained by the

Academy. Local aspects, such as language courses and specific

safety standards, are organised by individual office locations.

Vanderlande’s aim is to create the necessary tools and materials

to keep all employees skilled, motivated and informed throughout

their career – wherever they are located.

Employee training

Page 21: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 21

Vanderlande faces various challenges, and its activities often

require skills and knowledge that are not within the scope of

educational establishments and cannot be transferred easily.

The increasing speed of developing advanced technology drives

Vanderlande’s business and continuous learning is vital. The

company’s skilled and dedicated people can become experts

in their fields, as well as improving their ‘soft skills’. Due to the

company’s fast growth, Vanderlande’s experts can become

mentors, teachers and leaders for the next generation of

employees.

The company’s approach to training and development also

focuses on prospective employees. The global recruitment market

is challenging in terms of accessing people with the right attitude

and skills, which is why Vanderlande actively connects with

schools to promote technical professions from an elementary level

through to university. It organises guided tours and participates

in networks that promote relevant skill sets. It also arranges

seminars for students and an annual event to open up the male-

dominated technical world to women.

Overall, Vanderlande’s approach is forward thinking with the

intention of developing the skills and knowledge that are required

both now and in the future. Internally, the company measures its

progress according to the levels of employee satisfaction. Every

year, Vanderlande takes part – and performs favourably – in the

‘best employer’ survey (see ‘Employee engagement’ on page 22).

For additional transparency, it also believes that highlighting the

average number of hours per individual, per annum represents a

fair way of demonstrating its commitment to employees.

At the close of FY2018, Vanderlande had 5,501 employees.

The company is in the process of internationally aligning the

registration of training hours. For 3,748 employees in four

locations (The Netherlands, United States, India and China),

information on training hours is collected centrally. Information

from other locations is available, but Vanderlande has decided

to disclose this when it is also collected centrally. For FY2019,

Vanderlande wants to increase central data collection on

employee development and training to 80%. Data represents

FY2018, a 15-month period.

Targets

Employee development and training FY2018 FY2019 FY2020 FY2021

Establish dedicated learning consultant position to ‘train the trainers’ √

Establish network of specialist parties for training material content √

Roll-out global leadership training √ √ √ √

Build BREEAM excellent academy training centre at HQ √

Ensure global coverage of critical courses √

Steering committee to determine global strategic priority on required competences √

Select new learning management systems tooling √

Continue centralising development and training information,

covering 80% of employees

29.6

69.5

Higher management

Male Female

Centrally registered

staff trained: 3,748

Hours of training:

76,994

Overall average:

20.5 hours

27.9

36.9

Middle management

Male Female

20.5

17.1

Other

Male Female

Amount of training hours

Page 22: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

22

Employee engagement

Employee engagement is not easily defined. Dedication, focus,

involvement and the drive to go the extra mile are all clear

expressions of motivated employees. However, they are not solely

created by offering fair compensation and benefits. Other needs

must be met to create a positive working environment.

Vanderlande wants to attract employees into its growing business

who proactively add value and align with the company’s strategic

goals. The global recruitment market is challenging in terms of

accessing individuals with the right talent, skills and levels of

competence. Even after recruitment, retaining and developing

employees is crucial in order to keep them engaged, and help

them to add value to the business.

Vanderlande has an extensive global workforce, and every

employee has different needs relating to their personal

circumstances, culture and expectations. To keep the right

people, the company needs to focus on both individual needs

and the interconnectivity within and between teams to maintain

a positive atmosphere. Vanderlande’s business is changing, and

its employees face ever-increasing external societal demands and

pressure, which can create turmoil, uncertainty and stress.

Employee engagement is evident across Vanderlande’s global

community. The company is involved with each individual through

the employer-employee relationship. For prospective employees,

Vanderlande reaches out via marketing campaigns and other

connections. The company believes that strong leadership is the

key to engaging its employees. Managers must understand the

personal needs, motivations and ambitions of each individual in

their team to inspire them to achieve optimal work results.

Vanderlande hopes to increase the levels of engagement from its

employees by promoting and improving the interpersonal skills

of its leaders and focusing on creating and maintaining an open

and respectful working environment. It is necessary to act from

the top-down to create a long-term healthy workspace. This will

result in an environment in which everyone feels comfortable and

valued, as well as confident that their opinions can be shared.

Vanderlande’s recruitment department plays an important role in

maintaining its culture and values. Throughout the recruitment

process, it ensures that the people it hires match the company’s

core values. A ‘drive to win’, with a sense of ‘team play’ and

‘ownership’ are essential drivers for Vanderlande’s success.

Town Hall meeting in Veghel

Page 23: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 23

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2013 2014 2015 2016 2017

Level of employee engagement at Vanderlande

(Veghel, The Netherlands)

Engaged % Industry average %

Selecting the right employees, and making them feel at home

from the start of their careers, is something the company has a

strong focus on.

In previous years, Vanderlande’s efforts to integrate new

employees into the organisation have increased significantly.

New employee training programmes, e-learning modules, ‘buddy’

systems, company tours and onboarding classes are now a vital

part of the way in which it supports new employees and helps to

familiarise them with the company.

Vanderlande utilises both central and decentral governance.

On the one hand, it relies on one way of working and central

knowledge building. On the other, personal entrepreneurship is

an important driver. In addition, due to the international scope of

Vanderlande’s activities, specific local cultures and customs are

actively recognised and encouraged.

There is a small percentage of Vanderlande’s workforce (below

10%) who fall under collective bargaining agreements on an

industry level. However, applying or following this type of

agreement is not a standard way of working for the company.

Vanderlande strives to be a good employer, remain competitive

and attract the right employees to add value to the business.

The terms and conditions of employment meet and/or exceed

the legislative standards of the countries it operates in. On an

organisational level, the company follows the Hay job evaluation

systems for all employees. These include a standard HR cycle

covering such aspects as appraisals, pay reviews and the setting

of targets.

Shanghai (China)

The 2017 team outing to Shanghai

was a huge success. Participants

were randomly assigned to different

groups and challenged to a series

of ‘games’. This helped to increase

cohesion between the team

members and establish better lines

of communication and trust between

departments. Overall, it was a great

step forward in building trust and

inter-departmental relations.

Page 24: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

24

The backbone of the HR organisation is created via standard human

capital tooling and processes. These are centrally investigated

and tested before being internationally rolled out. In this way,

Vanderlande can create equal standards and opportunities for all

of its employees.

In FY2018, the roll-out of Vanderlande’s new human capital

management tool Workday was completed. All HR employees

now work in a standard way via one tool. Appraisals, salary

reviews and requests for leave are now processed in a uniform

way globally. Workday also allows Vanderlande to gain valuable

insights regarding its employees worldwide, such as their role in

the organisation, and their capabilities and aspirations.

Vanderlande’s workforce is maturing alongside the company.

Everyone celebrates together when an employee reaches a

milestone anniversary, and every year this list gets longer. This

maturing workforce will be an important influence over the coming

years. For example, research focusing on site-based service teams

has highlighted a point of attention relating to night shifts, which

will be addressed in FY2019 and FY2020.

The results of Vanderlande’s FY2018 employee satisfaction

survey highlighted that – at its headquarters in Veghel – 55%

of participants were ‘engaged’. The company is incredibly

proud of this result, which is significantly higher than the global

industry figure of 37%. Similar surveys have been performed

across Vanderlande’s various locations, and in FY2020, a global

employee satisfaction survey will also be carried out. The results

will be published in the next Sustainability Report.

Vanderlande experienced some fluctuations in the engagement

levels of its employees due to certain other factors. These

include its rapid growth and new ownership by Toyota Industries

Corporation, as well as process, cultural and societal changes.

Despite being higher than the industry average in terms of staff

satisfaction, Vanderlande believes that it is essential for long-

term sustainability to further increase the connectivity between

its employees.

Site visit involving younger employees

Page 25: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 25

Targets

Employee engagement FY2018 FY2019 FY2020 FY2021

Recruit employee engagement (HR) officer (UK) √

Employee engagement survey The Netherlands √ √ √ √

Roll out global leadership course √ √ √ √

Deploy activities relating to mature workforce in order to keep them fit for work and

increase engagement levels

Develop and roll-out employee engagement survey for global customer centres √ √

Keep employee engagement level (The Netherlands) above FY2018 level √ √ √

Barcelona (Spain)

Cursa de la Dona is Europe’s largest female sports event. Eight

cities in Spain all enjoy taking part in popular athletic pursuits,

as well as showing solidarity. In 2017, Vanderlande colleagues

participated in this unique event and enjoyed the experience!

Sydney (Australia)

In 2017, colleagues from the Vanderlande Sydney office

participated in the Sydney Run festival. More staff are joining

every year. Great fun!

The company strives to create an engaging environment, in

which professional and personal growth go hand in hand. By

embracing ways for its employees to grow, everyone can share in

Vanderlande’s success.

Vanderlande aims for all employees to broaden their horizons, and

to maximise their potential via challenging projects, internal job

mobility, personal development and other activities during and

after work hours. As such, the company supports team-building

experiences on both international and local levels. Recent

examples have included the team outing in Shanghai (China), the

Sydney Run festival (Australia) and the Cursa de la Dona (Spain),

which is Europe’s largest female sports event.

For Vanderlande’s employees, opportunities for further

engagement are prevalent everywhere. These may arise from a

customer that sets ambitious targets, colleagues, or an energetic

and respected manager who constanly inspires those around

them. Vanderlande wants to enable all employees to broaden

their horizons, maximise their potentional, enjoy job mobility,

and undertake personal development programmes, as well as

participate in activities during and after work hours.

Engaging younger employees

In the beginning of 2015, Vanderlande launched an internal

organisation whose aim is to help the company’s younger

employees to extend and strengthen their networks by bringing

them into contact with other like-minded employees. In

addition, it has been designed to stimulate cross-departmental

knowledge-sharing, and personal and professional development.

This is achieved via a ‘buddy’ system, and through various

activities such as workshops, lectures, case studies and visits to

external companies.

“Vanderlande strives to create an engaging

environment, in which professional and

personal growth go hand in hand.”

Page 26: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

26

Energy use (products and systems)

Respecting the natural capacity of the planet is one of

Vanderlande’s three main drivers. It is imperative to support the

UNFCCC Paris Climate Agreement, which has the central aim of

strengthening the global response to the threat of climate change.

The intention of the agreement is driving down the emission

of greenhouse gases, and create transparent and supportive

frameworks.

Emissions cause a global challenge and generally arise at the

source of the power production. However, the consequences of

these impacts do not necessarily occur at the production site

itself. Users, such as governments and other companies, face

the ongoing risk of using energy, for example taxation on carbon

emissions, which can lead to significant additional costs.

As a result of climate change commitments, some countries

are creating legislation that drives down the use of energy and

encourages the production of renewable alternatives. To prevent

the further build-up of non-renewable energy supply capacity,

innovative solutions need to be implemented in order to reduce

energy use, as well as focus on local renewable energy supplies.

The company’s stakeholders already recognise the influence of

Vanderlande in the design and implementation of products and

systems, which enables it to strongly impact on the use of energy

at customer sites.

The energy use of Vanderlande’s systems has a significant

influence on the life-cycle impact of its products, ranging from

mechanical equipment and controls, through to software and

hardware. Other challenges must also be addressed.

The growing demand for quick delivery times across the world,

increasing cost of human labour and expectation for high service

levels is increasing the demand for automated material handling

systems. Better insights into energy use will create opportunities

to become energy predictive, and help to increase the efficiency

within the logistics network.

Vanderlande wants to support its customers in meeting their

sustainability commitments. Energy measurements have been

performed at various customer sites for decades, and a more

structured approach within Vanderlande’s products and systems

has recently been implemented with this in mind. The company

focuses on the energy use of its products that have been

developed in-house, and it is making steps to compare its systems

on a solution level, where its influence is the largest.

During the development of the BLUEVEYOR, Cradle-to-Cradle

life-cycle assessments were performed, which generated valuable

insights into energy use. Across an expected 15-year life cycle, the

impacts generated from the ‘use phase’ were 85%. This means

that these are far greater than the impacts caused by, for example,

the extraction of raw materials for manufacturing and the shipping

of equipment.

The largest contributor by far within the ‘use phase’ relates to

the energy consumption of the equipment. This input and other

detailed results were used to improve the design of Vanderlande’s

standard products, as well as its predictive calculation models.

The company’s software is also used to optimise the electrical

layout and grid connections at future customer sites.

FLEET

Page 27: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 27

Vanderlande expects more energy-related regulations to enter the

material handling industry in the coming years. For this reason, it

participated in ECoDeMISE, which was overseen by the Karlsruhe

Institute of Technology and the partners of the FEM (European

materials handling federation).

With this initiative, various research institutes and companies

cooperated to create a guideline for the standard calculation and

measurement of energy consumption for various material handling

systems. ECoDeMISE is also a positive example of how competitive

companies are able to cooperate in the pursuit of a worthwhile

objective. At the time of writing this report, at an industry level,

no standard for comparative measurement is available. For this

reason, Vanderlande cannot objectively disclose the energy use

of its products.

Vanderlande works closely with its customers and suppliers to

develop new solutions and insights. As a result, it has helped

to promote the use of low voltage-driven equipment, which has

been implemented to create smaller, more efficient and modular

products. Leading by example, Vanderlande will soon roll out a

full IE4-supported (super premium efficiency) range of products in

each of its market segments.

In addition, the company’s life-cycle services provision offers a

comprehensive range of options for customers. Vanderlande’s

process engineers work closely with customers to improve the

flow of goods, assist with energy-related topics and undertake

energy scans. When energy consumption is better understood,

opportunities to make savings become more visible.

These range from the smarter use and improved balancing of

operational systems, to implementing improved products or

switching to different material handling solutions. By making

changes to software settings, improving process (batch) control

and managing redundancy in the system, it is possible to make

them more efficient.

New circular business models create a demand for increased

insights into the life cycle of an asset. Not only is energy use a

major influencer in the total cost of ownership, but it is also

used as input for Vanderlande’s ‘big data’ framework. Combined

with sensor and flow data, and smart algorithms, the company

is aiming to increase its business intelligence capabilities and

move towards a more predictive approach. In support of this,

Vanderlande utilises a dedicated data science team to work on

these topics.

On a global level, the energy production transition towards a low

carbon economy is in progress. Moving away from the use of fossil

fuels to renewable alternatives will take time to be implemented

and achieve the desired outcome. In addition, there is much to

accomplish from an innovation perspective.

The potential for Vanderlande’s products to store and recover

energy, and to change the way logistic chains are designed,

remains open for further development. However, the targets that

the company has set itself in terms of the energy use of it products

and systems are clear. As a responsible organisation, Vanderlande

is dedicated to the continuous evaluation of its performance on

energy and has structures in place to assess this correctly.

Targets

Energy use (products and systems) FY2018 FY2019 FY2020 FY2021

Pilot energy monitoring software at first customer site √

Publish ECoDeMISE report on energy consumption determination methods √

Promote alliances with customers to create joint initiatives √ √ √ √

Roll-out energy monitoring software at five customer sites √

Review and consolidate energy-related demands of key customers √

Improve and validate predictive energy modelling software √

Sell five energy reduction consultancy projects per region √

Set energy reduction objectives for products and systems √ √

“Vanderlande works closely with its

customers and suppliers to develop new

solutions and insights.”

Page 28: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

28

Sustainable product design

Vanderlande is a vertically integrated solution provider. This role

begins with in-house product development, and continues through

to life-cycle services and dismantling. Product design involves

the selection of appropriate materials and from a sustainability

perspective includes the consideration of key attributes of those

materials such as costs, processing and transportation, hazardous

content, scarcity and human rights issues in the locations where

they are sourced.

Unless recycled or regenerative materials are used, raw materials

must be extracted somewhere in the world. Oil spills, soil erosion

and deforestation are just some of the potential consequences of

selecting a specific type of material.

Over 80% of the company’s impact on the environment is

determined during the design phase in which a range of

materials can be selected. A good design considers a product’s

purpose, including its energy use and potential for repair, reuse,

remanufacture and recycling. In addition, a design not only focuses

on the potential waste stream, but also on safe maintenance and

dismantling.

Product design touches the core of Vanderlande’s business and

it strives for optimal sustainable product design choices. These

relate strongly to the circular economy. As a market leader,

Vanderlande has a responsibility to motivate others to design

sustainable products. The impacts of product design can be seen

at an early stage, beginning with the extraction of raw materials

and their subsequent transport.

All Vanderlande’s products are developed to follow the stage-gate

process in which a design starts with an ‘opportunity’ and ends

with a product’s ‘end of life’ stage. Each ‘gate’ comprises a list of

deliverables and a set of decisions that must be made in order to

proceed to the next phase. Vanderlande’s influence is the creation

and life cycle of all products that the company has designed

in-house.

Ecodesign involves the integration of certain environmental

factors into the design of the company’s products. By improving

their design, this can have a spillover effect across Vanderlande’s

future installed base for the full life cycle of its products. It has

not yet been fully implemented by Vanderlande, however certain

aspects of the ecodesign philosophy have been integrated into

the design process, and some developments have been executed

in full accordance with these principles.

A product undergoes an ongoing change during its life cycle. For

example, new legislation can result in the update or redesign

of Vanderlande’s products to meet these changing standards.

Improved insights arising in the manufacturing processes can

also help to remove hazardous substances during production.

Other improvement processes focusing on cost and risk reduction

mean that Vanderlande continually reviews its products and

manufacturing techniques and keeps up with technology changes

and development opportunities.

For the majority of Vanderlande’s equipment, there is a fixed

component structure, combined with moving parts that suffer

from wear and tear. This makes the company’s products

highly suitable for repair and long-term refurbishments, and

improves the longevity of its systems. Alongside mechanical

upgrades, software and hardware updates can be performed to

keep Vanderlande’s systems operational and protected in the

long term.

BLUEVEYOR

Page 29: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 29

Targets

Sustainable product design FY2018 FY2019 FY2020 FY2021

Redesign TUBTRAX carrier based on circular design principles √

Assess sustainability classification systems √

Apply circular design principles to one major development project √

Apply super premium efficiency class motors (IE4) to high-runners in all market

segments

Move forward with sustainability classification system √

Develop sustainable conveyor belt √

Develop programme and train ten engineers in circular design principles √

Determine way forward for material passport √

Execute R&D sustainable development project per business segment √ √ √

The company is testing the concept of a ‘material passport’ on a

number of products, in which every material is documented. This

contributes towards the circular economy, and creates further

opportunities to recover, recycle and reuse raw materials. Steel is

one of the most heavily used materials in Vanderlande products

and it retains an extremely high overall recycling rate.

Vanderlande’s sustainable design started in 2010 with the

BLUEVEYOR, a project that was guided by ecodesign and Cradle-to-

Cradle principles. This concept conveyor achieved a 68% reduction

in the carbon footprint compared to the company’s conventional

conveyors. A second phase of the BLUEVEYOR (2.0) was released

in 2017, and energy measurements showed a consumption that

was up to three times lower than standard conveyors.

By changing its business models into circular ‘as a service’

concepts, Vanderlande expects to overcome certain sales

limitations. Following successful prototypes and pilots, specific

structural changes will help the company to work towards a more

circular economy.

Another positive example is Vanderlande’s new baggage carrier,

which is used in airports and constructed of 100% recyclable

mono-material. However, baggage carriers of a previous generation

that were not designed to the latest standards, cannot be recycled

with such ease. Vanderlande has decided to address this issue

by putting it in the public eye and is refashioning older carriers

into contemporary sofas. The first units have been successfully

delivered to Schiphol, Vancouver and Hong Kong airports.

To better evaluate its activities, Vanderlande is in the process of

selecting a product sustainability classification system. Before

FY2020, a circular design workshop will be organised for a select

group of R&D engineers, and BLUEVEYOR developments will

continue to create a fully recyclable and low-energy use conveyor

belt. This will make it possible to more accurately predict the effect

on the company’s footprint, as well as guide its decision-making

process. Vanderlande’s positive spirit has created promising

results in recent years and these can be quantified more effectively

using a classification standard.

Investing in smarter solutions for waste and finding ways to reuse

raw materials are not always regulated, but they are increasingly

becoming an ethical issue for many companies. Vanderlande

hopes that the knowledge it has gained from creating the sofas,

for example, will stimulate further innovation and help it move

closer towards the circular economy. It is also a strong indication

of how the company is proposing to close the loop (particularly in

relation to plastic) and turn waste into new products.

Within the GRI reporting standards, there is no specific disclosure

available relating to sustainable product design. Vanderlande

is in the process of determining in what way the company can

provide support to an industry-standard product sustainability

classification. The company believes that this is an industry issue

involving many stakeholders – in particular in the supply chain

and waste industry – and needs to be addressed at industry level.

Page 30: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

30

Responsible sourcing

Vanderlande believes that establishing a healthy and fair society

– which is at the heart of responsible sourcing – is a fundamental

need that applies to employees, customers and the global

community. The company also expects its suppliers to fulfil their

corporate social responsibilities.

Material handling solutions are made of physical components,

which require raw materials to be extracted, processed, formed

and treated. To do so, energy is required and waste is created.

Vanderlande shares responsibility for minimising these impacts.

Vanderlande spends a significant part of its revenue

(approximately 65%) on its supply chain. To produce – or procure

– a product or service, impacts can be seen at locations where

raw materials are extracted. They are also visible when materials

are transported to and at manufacturing sites where they are later

fashioned into products and systems.

With its increasing global operations, sustainable product design

and processes, as well as its supply chain, Vanderlande has an

influence on the relative size, location and type of sustainable

impacts that occur. The company chooses to focus on its own

direct activities and those of its direct suppliers.

Vanderlande’s global supply chain is managed by dedicated

centres in Europe, the USA and Asia, which work with local

manufacturing and installation companies and suppliers. The

‘one design, one quality’ principle enables Vanderlande to be

flexible in shifting production all over the world. It operates an

end-to-end supply chain, in which manufacturing, subcontracting

and procurement processes are managed and measured.

The switch from utilising a single supply centre in The Netherlands

to three dedicated supply locations has been made in the past

decade. This was originally decided to lower lead times and costs,

but reducing Vanderlande’s carbon footprint was an important

side effect. Close cooperation also allows the company to switch

to local production sites on each continent that are closer to

customers, so that less equipment is required to be shipped – and

over shorter average distances.

As part of Vanderlande’s continuous improvement strategy, its

Supply and Delivery Excellence programme has been introduced.

This aims to further optimise the supply chain and create a

global strategy on sourcing. To improve costs and reduce risks,

Vanderlande wants to increase its expenditure on preferred

suppliers. In order to facilitate better cooperation, the company

has made the move from project-based contracts to long-term

framework agreements. These create mutual commitment,

insights and increase trust.

Vanderlande has continually focused on making the procurement

and supplier code of conduct an essential part of the framework

contracts it signs with suppliers. Since FY2018, renewed attention

has been directed towards its implementation. This is a starting

point for discussions on sustainability and moving closer to

achieving these ambitions. Human rights, which translate into

labour conditions, are an important theme within this document.

Vanderlande’s procurement and supplier code of conduct fully

complies with the basic principles as specified in the UN’s global

compact platform. It was compiled in line with: international

labour office conventions; the UN’s universal declaration of human

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Framework contracts including code of conduct

Number of framework contracts (YTD) Percentage of framework contracts including code of conduct

Page 31: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 31

Targets

Responsible sourcing FY2018 FY2019 FY2020 FY2021

Initiate Supply and Delivery Excellence programme √

Audit high-risk suppliers √ √ √ √

Define and create baseline for global supplier classification process √

Reach 25% code of conduct implementation of signed framework contracts √

Integrate Dun & Bradstreet principles in GSC process (supplier risk identification) √

rights and conventions on the rights of the child; the convention

on the elimination of all forms of discrimination against women;

and the OECD’s guidelines for multinational companies. The code

of conduct also concerns the expectations that suppliers have

towards Vanderlande.

Vanderlande is committed to ensuring that working conditions

within its supply chain are safe, workers are treated with respect

and dignity, and manufacturing processes are environmentally

responsible. The company’s objective is to increase the level of

signed codes of conduct to 25% of the framework contracts by

FY2019, with the ambition of increasing this up to 70% within five

years.

Vanderlande is not reporting on topic specific GRI disclosures at

this stage, but estimates that it is more appropriate to disclose the

amount of code of conducts signed as part of a supplier framework

contract.

Vanderlande sees significant challenges in the market of ‘off-

the-shelf’ commodities, in which the company is a relatively

small player. Its influence is minor, apart from in applying global

standards and measures. However, the suppliers that Vanderlande

selects to manufacture and deliver the company’s in-house

designed parts and equipment are easier to influence, and there

is a significant responsibility in this respect. By choosing the right

partner and producing the best product, Vanderlande can make a

positive impact.

Many of Vanderlande’s projects involve subcontracted labour. All

of these are managed with a strong attention to health and safety

and subcontractors are managed as if they were Vanderlande’s

own employees. Examples include safety toolbox meetings,

preventive control measures, personal protective equipment, and

creating awareness through active engagement and training.

To close the loop, Vanderlande regularly audits its partners

and, based on a risk priority number process, it determines the

suppliers that carry the highest risk. The level of risk is based

on three factors: the criticality for Vanderlande’s business; the

performance of the supplier over a specified period of time; and

the expenditure on a supplier per annum.

Alongside other aspects, Vanderlande verifies supplier

agreements and quality manuals, product specifications and

quality management systems. In all of its audits, health and safety

is taken into account. In the long term, Vanderlande fully expects

to increase the potential scope of its audits to include additional

topics, such as information security.

Internally, Vanderlande has compiled a code of conduct for

employees that helps them to deal with the ethical dilemmas they

may face at work. The company continually promotes strong ethics

and strives to lead by example. To further protect employees,

Vanderlande’s whistle-blower policy has recently been updated.

Alongside the codes of conduct, employees can easily access

these documents through Vanderlande’s intranet page.

To assess its activities with regards to responsible sourcing,

Vanderlande utilises specific evaluation tools, including:

ongoing supplier audits based on risk priority profiles; code of

conduct KPIs; and an EcoVadis assessment (EcoVadis is one

of the world’s leading platforms for environmental, social and

ethical performance ratings for global supply chains). At all times,

Vanderlande aims to set a good example and display faultless

ethical behaviour, supported by its partners, and guided by clear

frameworks and codes of conduct.

“Vanderlande is committed to ensuring that

working conditions within its supply chain

are safe, workers are treated with respect and

dignity, and manufacturing processes are

environmentally responsible.”

Page 32: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

32

Circular solutions

For many years, corporations have followed the traditional linear

‘take, make, dispose’ production model in which products are

manufactured, used and then disposed of as waste. However,

with the growing scarcity and depletion of natural resources,

this process cannot continue. Many materials are becoming

increasingly costly and used at a rate that is unsustainable, and

the percentage that can be recovered by conventional recycling is

not enough to fill the gap.

Consequences are generated in locations where raw materials

are sourced, and where waste is handled and disposed of.

Vanderlande has long recognised that it must evolve from this

linear process to a circular-based model. In this way, materials are

selected not just for their short-term tangible properties, but also

for their effect on people, the environment and their capacity for

reuse.

Establishing a circular-based economy is one of Vanderlande’s

three main drivers. By designing products and services in a

circular way, risks will be reduced, opportunities to learn will be

created, and the company will become better able to adapt and

perform optimally every day. A number of positive outcomes can

also be achieved, including a reduction in raw material use, waste

and emissions, as well as the enhanced use of resources. It will

also help Vanderlande move towards closing energy and material

loops.

Vanderlande’s stakeholders believe that by creating truly

circular services and products, the company can be both

highly successful in the future and create a positive impact

on sustainable development. Vanderlande is highly vertically

integrated: it not only designs products, but produces,

integrates and installs them, as well as offering services, such as

end-of-life upgrades and the dismantling of systems. The

company’s influence on circularity has the potential to be

great within the correct business model, where Vanderlande’s

responsibility across the life cycle of a product is increased.

Vanderlande designs and manufactures products that require raw

materials, which are supplied from third parties via the supply

chain. Its customers currently procure and own Vanderlande

products and systems and – as a result – are responsible for any

waste generated during their operation, maintenance and end of

life. This includes spare parts, replacements or refurbishments,

and means that the crucial aspects of managing materials and

waste are outside of Vanderlande’s control.

Overall, Vanderlande has a limited influence over the sourcing of

raw materials and waste management processes at its suppliers.

However, it has a significant influence on the selection of materials

and their design in order to enable repairs, reuse, remanufacturing

and recycling. It can also influence the business models that are

required to create a more circular approach. By improving these,

as well as fine-tuning responsibilities and accountabilities in

relation to its products and services, Vanderlande can refine and

support the development of circular solutions.

To develop market-leading solutions, Vanderlande listens to its

customers to ensure that the company delivers products and

services that meet changing demands and trends. Requirements

from a sustainability perspective are becoming increasingly

important drivers for customers and link longer term societal

and environmental challenges with Vanderlande’s growth as a

business.

Vanderlande’s development of circular solutions focuses on

the total cost of ownership alongside the environmental costs.

This allows it to provide market-leading solutions that support

customers while taking care of everyone’s collective future. The

company sees it as its responsibility to cooperate with partners,

customers and other third parties to evolve towards circular

systems. It is an opportunity to further integrate its activities

along the value chain, and strengthen customer engagement and

service levels.

MATERIALS PARTS PRODUCTS USE

RECYCLE

REMANUFACTURE

REUSE

REPAIR

WASTE

Closing the loop

Page 33: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 33

Vanderlande utilises a three-phase programme to support its

interests. Each phase is an amalgamation of themes, ambitions,

initiatives and a corresponding timeline. Themes include Cradle-

to-Cradle and circular economy principles. By offering innovative

business models such as ‘pay per use’ or ‘products as a service’

concepts, Vanderlande’s customers can access the lastest

technology, while helping to keep products, components and

materials operating at the highest level for as long as possible.

This approach allows Vanderlande to increase the scale of its

operations by optimising repairs, reuse, remanufacturing and

recycling processess across the global customer and supply

base. This enables the company to reduce waste and increase

its capabilities to act in a circular way, and Vanderlande believes

that this will benefit customers and the environment, as well as

contribute towards its ongoing business success.

In line with this, Vanderlande has decided to support the Platform

for Accelerating the Circular Economy (PACE) – a public-private

collaboration co-chaired by the CEO of Philips, and the heads of

the Global Environment Facility and UN Environment. PACE aims

to create change at speed and scale by enabling its supporters to

broker partnerships that will expand existing, and kick-start new,

circular economy projects.

Supporting companies will be able to address cross-cutting

barriers to scale the circular economy through a Global Leaders

Network. They will also be able to link networks and knowledge,

and share best practices and policies across existing institutions.

Vanderlande has pledged that by 2020 it will have successfully

launched new solutions and services that fully close the loop by

utilising innovative business models.

A first step towards this is FLEET, a flexible logistics solution

that replaces the need for fixed conveyors and sorting systems.

It combines Vanderlande’s passion for creating technical

innovations that deliver a seamless experience with its desire

to use natural resources responsibly. By utilising autonomous

vehicles, FLEET facilitates new business models and consumes up

to 50% less energy than traditional baggage handling systems.

The design of the solution also means that the vehicles can be

recycled, which contributes to a circular economy.

FLEET was chosen as the winner of the 2017 inter airport

Europe  Innovation Award in the interTERMINAL category,  which

was voted for by the global airport community. Moreover, it

received the top distinction in the ‘Red Dot: Best of the Best’

competition. In 2018, designers and manufacturers from 59

countries submitted more than 6,300 objects to the competition,

which credits the best products manufactured each year. The ‘Best

of the Best’ award is reserved for designs that the panel of experts

deems to be of a superior quality.

To help close the loop and minimise waste, Vanderlande has also

challenged itself to reuse equipment, procured items or systems

that are not consumed in the execution of a project or service.

This process – managed by the company’s Reverse Logistics

department – allows Vanderlande to remove materials from a

project and return them to its European supply chain centre in

Veghel for future use.

As part of a continuous process, these materials are sorted,

itemised and made available as stock, either displayed or stored.

In October 2016, the Reverse Logistics department celebrated a

milestone. For the first time in its existence, it returned materials

“By designing products and services in a circular

way, risks will be reduced, opportunities to learn

will be created, and Vanderlande will perform

optimally every day.”

Targets

Circular solutions FY2018 FY2019 FY2020 FY2021

Achieve reverse logistics value above € 1 million √

Deliver project with pre-owned equipment √

Support Platform for Accelerating the Circular Economy (PACE) √

Create plan for customer engagement on circularity √

Secure three pay-per-use customer contracts √

Select and roll-out R&D training programme on circular design √

Select circular solutions company disclosure √

Keep reverse logistics value above FY2018 level √ √ √

Page 34: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

34

€ 0

€ 200,000

€ 400,000

€ 600,000

€ 800,000

€ 1,000,000

€ 1,200,000

€ 1,400,000

€ 1,600,000

FY2014 FY2015 CY2015 (9 months) CY2016 FY2018 (15 months)

Reverse value

to projects, spare parts, manufacturing, suppliers and anonymous

stock with a total value greater than € 1 million over a period of

less than ten months. In 2017, the total value of returned materials

exceeded € 1.5million.

Another major advantage of having Reverse Logistics is the

support that it delivers to project execution teams and the R&D

department. In cases of missing or damaged materials, equipment

can be obtained with minimal lead times.

An equal initiative is organised directly for Vanderlande’s

customers in which systems or products that have become

obsolete, can be used again. Through this, the company has been

able to help customers in the airport and parcel markets match

their changing requirements and reuse equipment from other

sites.

As pledged during the World Economic Forum, Vanderlande is

committed to accelerating the circular economy and reporting

in line with GRI principles. Within these principles there is

currently no specific disclosure relating to circular solutions. For

this reason, Vanderlande will report on the reverse value of the

Reverse Logistics department. In the coming years, the company

aims to make improvements on the disclosure and reporting of its

progress to accelerate the circular economy.

Page 35: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 35

Corporate governance

Effective leadership, transparency and the delivery of high

standards have formed the basis of Vanderlande’s success.

They also provide a foundation for meeting increasing societal

demands for strong corporate governance, which will sustain the

company’s long-term future. This creates the drive, motivation and

opportunity to progress the challenging materiality topics that are

critical to Vanderlande’s success.

Corporate governance is also an important topic arising from the

materiality assessment performed by Vanderlande’s stakeholders.

They believe that the way in which the company conducts itself as

a business has a significant impact on its reputation. Responsible

companies such as Vanderlande – with honest working relations

and a correct approach – can prevent bribery and corruption, and

in doing so, contribute to a fair and equitable society.

Vanderlande believes that it can lead by example to maintain its

reputation. It is growing and adapting globally, and international

economic and societal differences influence the company’s culture

and way of working. Therefore, the company wants to maintain the

highest level of cultural respect, and take care of its people in their

day-to-day activities, while retaining the one company approach.

The influence of sustainability is both internal and external, and

involves employees, customers, suppliers and local communities.

Vanderlande is committed to acting responsibly wherever it

does business. Within the Board, the CTO is responsible for

sustainable topics and oversees the relevant programmes. In

2017, Vanderlande’s policy on this topic was updated and signed

by the CEO.

Vanderlande utilises the potential of its network to actively

contribute to global sustainability goals. The company believes

that governance is about supporting and empowering employees,

by setting the standard and facilitating decision bodies, processes

and policies. This will result in gradual change and ensure that

sustainability becomes ingrained in their actions.

To guide a growing organisation, Vanderlande has published

its vision, which incorporates three high-level key drivers for

achieving a sustainable society. This is translated into the three

pillars of sustainability, with each connecting to specific goals

and targets. Vanderlande has also created the ONE company

approach. This allows it to execute a larger volume of projects

more effectively, with less risk and to the highest quality.

By having one approach, culture and set of tools, Vanderlande is

better equipped to realise growth. This will result in a balanced

international workload, and the maximum use of local knowledge

and capacity across the company’s supply and engineering centres.

The ONE company approach will also ensure that Vanderlande

continues to respect cultural and societal differences, but retain

one way of communicating and acting towards customers. This is

also supported by its training programmes on cultural awareness.

Vanderlande’s sustainability organisation is still growing,

and spreading out with new roles and champions globally. All

employees are role models and everyone is expected to meet the

company’s high ethical standards. Equality, mutual respect, and

acting fairly and with integrity are at the core of Vanderlande’s

employee code of conduct: Good Business.

In addition, Vanderlande’s HSE activities are now organised on

a global scale. With an international workforce and increased

mobility, new roles are only filled by the most suitable

candidates. To maintain the highest standards, Vanderlande

embeds quality management systems, such as ISO9001,

ISO14001 and ISO50001.

CEOR. Brunschwiler*

CTOV. Kwaks

MD AA. Manship

MD WPT. Verkuijlen

COOG. Bossink

CFOH. Molenaar*

CHROR. Lamberts

> Global Services

> Marketing and Communications

> IT Solutions

> R&D

> Systems

> Sustainability

> Sales

> Project Execution

> Services

> PG APC

> PG FLEET

> Sales

> Project Execution

> Services

> Operations

> Supply Chain

> Manufacturing

> HSE

> PG Beewen

> PG Robotics

> PG Smatec

> PG Dinamic

> Finance and Control

> Legal

> ICT and Quality

> Global shared

services

> Continuous

Improvement Board

> Human Resources

> Vanderlande

Academy

*Statutory responsibility

Company structure

Page 36: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

36

In 2018, it was also assessed by EcoVadis in terms of its

sustainability rating, achieving a silver rating and the company is

striving for a gold rating in 2020.

In 2017, the acquisition of Vanderlande by Toyota Industries

Corporation was a major topic on the agenda of various bodies

within the company. In particular, the Works Council was highly

involved in the process, and continues to update and align

employees regarding important topics, such as strategic market

and business developments, and employment conditions.

Vanderlande is a founding father, associate and active board

member of the Make Next Platform. This initiative was established

alongside other innovative OEMs to accelerate ‘scale-ups’ in

support of the Dutch manufacturing industry.

Vanderlande is also a member of Brainport Industries and

participates in various activities within its branches. The

cooperation among industry, knowledge and educational

institutions and the government – the so-called ‘triple helix

association’ – is unique and a key driver for the Brainport region’s

success in The Netherlands.

The FEM (European Materials Handling Federation) has represented

manufacturers of material handling, lifting and storage equipment

since it was founded in 1953. Vanderlande is actively involved

in this initiative, of which its employee Jan van der Velden was

president from 2012 to 2016.

Globally, Vanderlande is a member of other associations, such

as the Australian Industry Group and the Confederation of Indian

Industry. In addition, the company is a part of the International

Association of Airport Executives Canada, the Australian Airports

Association and the Airport Operators Association (UK).

By having a strong network, Vanderlande can promote proactive

cooperation between a multitude of partners both locally and

globally. This will also help the company to achieve its sustainable

ambitions, as well as meet the increasing demand for effective

corporate governance. To ensure that Vanderlande is aligned

correctly in this area, it closely monitors – and follows up on –

its activities through yearly EcoVadis assessments and quality

management systems, for example.

Targets

Corporate governance FY2018 FY2019 FY2020 FY2021

Elect board representative for sustainability √

Create sustainability report, using GRI framework (core) √

Renew and roll-out employee code of conduct and whistle-blower policy √

Achieve ISO50001 at three offices in The Netherlands, United Kingdom and Germany √

Improve EcoVadis rating at HQ: bronze to silver √

Achieve ISO14001 at HQ √ √

Develop sustainability integrated organisation approach and roles √

Set long-term sustainable ambitions and goals (2030 and 2050) √

“Vanderlande wants to maintain the highest

level of cultural respect, and take care of its

people in their day-to-day activities, while

speaking one company language.”

Page 37: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 37

Page 38: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

38

GRI content index

GRI standards GRI disclosure Page Remark

Organisation profile 102-1 Name of the organisation 6

102-2 Activities, brands, products and services 6

102-3 Location of headquarters 8-9

102-4 Location of operations 8-9

102-5 Ownership and legal form 6

102-6 Markets served 6

102-7 Scale of the organisation 6, 8-9

102-8 Information on employees and other workers 8-9

102-9 Supply chain 8-9

102-10 Significant changes to the organisation and its supply

chain

5-6,

30-31

102-11 Precautionary principle or approach 3

102-12 External initiatives 10, 17,

20, 26,

27, 30,

31, 33

102-13 Membership of associations 35-36

Strategy 102-14 Statement from senior decision-maker 5

Ethics and integrity 102-16 Values, principles, standards, and norms of behaviour 7

Governance 102-18 Governance structure 35

Stakeholder engagement 102-40 List of stakeholder groups 12

102-41 Collective bargaining agreements 23

102-42 Identifying and selecting stakeholders 12

102-43 Approach to stakeholder engagement 12

102-44 Key topics and concerns raised 12

Reporting practice 102-45 Entities included in the consolidated financial statements 8-9

102-46 Defining report content and topic boundaries 13

102-47 List of material topics 13

102-48 Restatements of information - Not applicable

102-49 Changes in reporting 3, 13

102-50 Reporting period 3

102-51 Date of most recent report 3

102-52 Reporting cycle 3

102-53 Contact point for questions regarding the report 3

102-54 Claims of reporting in accordance with the GRI standards 3

102-55 GRI content index 38-39

102-56 External assurance 3

Page 39: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> Vanderlande Sustainability Report FY2018 39

GRI standards GRI disclosure Page Remark

Health and safety at work 103-1 Explanation of the material topic and its boundary 15-17

103-2 The management approach and its components 15-17

103-3 Evaluation of the management approach 15-17

403-1 Workers representation in formal joint management-worker

health and safety committees

15-17 Estimated data

Design safety

and ergonomics

103-1 Explanation of the material topic and its boundary 18-19

103-2 The management approach and its components 18-19

103-3 Evaluation of the management approach 18-19

416-1 Assessment of the health and safety impacts of product

and service categories

18-19 Health and safety

risk assesment

Employee development

and training

103-1 Explanation of the material topic and its boundary 20-21

103-2 The management approach and its components 20-21

103-3 Evaluation of the management approach 20-21

404-1 Average hours of training per year per employee 20-21

Employee engagement 103-1 Explanation of the material topic and its boundary 22-25

103-2 The management approach and its components 22-25

103-3 Evaluation of the management approach 22-25

- Employee engagement level 22-25 Vanderlande KPI

Energy use (products and

systems)

103-1 Explanation of the material topic and its boundary 26-27

103-2 The management approach and its components 26-27

103-3 Evaluation of the management approach 26-27

- No material topic specific information available -

Sustainable product design 103-1 Explanation of the material topic and its boundary 28-29

103-2 The management approach and its components 28-29

103-3 Evaluation of the management approach 28-29

- No material topic specific information available -

Responsible sourcing 103-1 Explanation of the material topic and its boundary 30-31

103-2 The management approach and its components 30-31

103-3 Evaluation of the management approach 30-31

- Supplier framework agreements with code of conduct 30-31 Vanderlande KPI

Circular solutions 103-1 Explanation of the material topic and its boundary 32-34

103-2 The management approach and its components 32-34

103-3 Evaluation of the management approach 32-34

- Reverse logistics value 32-35 Vanderlande KPI

Corporate governance 103-1 Explanation of the material topic and its boundary 35-36

103-2 The management approach and its components 35-36

103-3 Evaluation of the management approach 35-36

102-20 Executive-level responsibility for economic, environmental,

and social topics

35-36

Page 40: Sustainability Report FY2018 · 2020. 7. 9. · Employee development and training 20 Employee engagement 22 Energy use (products ... involved and the fact that we are delivering FLEET

> vanderlande.com

Sustainability Report FY2018

Vanderlande

Vanderlandelaan 2

5466 RB Veghel

The Netherlands

Phone: +31 (0)413 49 49 49

Fax: +31 (0)413 36 29 10

Email: [email protected]