environmental report 2010

COntents

COnsUme Less, saVe mOre

SHaping a better future Clean water and eco-efficiency are the drivers of Kemiras r&d and technology.

PHOtO: sUsanna KeKKOnen, COVer PHOtOs: Getty imaGes and istOCKPHOtO

ater treatment is one of the fastest growing businesses in the world, worth approximately 500 billion dollars. This growth is partly explained by the intensifying water shortage: the amount of available water is decreasing as the need for it grows. Kemira is investing strongly in research and development in order to improve water and energy efficiency as well as water quality. New water chemistry applications and technologies are being introduced rapidly around the world, especially in Asia and South America. In addition, developing countries need basic water treatment solutions. Kemira aims to become a leading water chemistry company. We serve about 10,000 customers, improving their resource efficiency with our deep expertise in industrial processes and water chemistry. Our product portfolio includes applications for the treatment of drinking water, process water, wastewater and sludge. Reduced consumption of energy, water and other raw materials helps cut costs and protect the environment. Less is more. Kemira has more than 70 production plants, where equipment, production processes, environmental efficiency and safety are enhanced continuously. Energy-efficient production plants make business sense. In every way possible, Kemira is committed to efficient water and energy use, which help to minimize environmental impact and improve cost efficiency.
Harri Kerminen President and CeO Of Kemira

extending reacH However challenging, chemical legislation is also beneficial for Kemira.

10

One Step aHead Kemiras customers have many means to reduce their water footprints.

12

Safety firSt Good results in work and process safety for Kemira, once again.

14

big StepS in energy efficiency Kemiras new program enhances energy efficiency and cost savings.

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enVirOnmentaL repOrt 2010 Publisher Kemira Oyj editor-in-Chief anna-Kaisa Skkinen managing editor Johanna Hytnen Producer tytti mrd art director antti Kangassalo Writers arja Haukkasalo, matti remes, Wif Stenger Photographers Susanna Kekkonen, Jari Kivel, rami Lappalainen Printed by erweko

reVieW 2010

COmmitted tO CLean Water

in 2010, Kemira continued its determined long-term work to reduce its impact on the environment. Consistent management processes help the company achieve its environmental goals.
text arJa HauKKaSaLO PHOtOs iStOcKpHOtO, rami LappaLainen and Jari KiVeL

emiras key environmental goals include minimizing wastewater emissions, using water and other resources efficiently, reducing industrial waste and improving energy efficiency. The company is committed to promoting sustainable development in its production and business facilities. Kemiras business operations focus on water and its efficient use, treatment and recycling in industry and municipal waterworks.
DetermineD Development work

Kemira continued to reduce its environmental impact in 2010. The company has achieved good results also in safety. This is because of determined longterm work that consists of small steps toward better results, says Aarno Salminen, Vice President for Environment and Safety. Manufacturing chemical products and ap-

plications for water quantity and quality management requires well-thoughtout safety practices and production processes. Kemira had no major environmental investments in progress related to production plants in 2010. Minor improvement projects were carried out at several plants, related to water chemical production, for example. The process enhancement project at the Tiancheng, China, paper chemical plant was completed in 2010, reducing emissions and waste. Kemiras environmental remediation projects continued as planned at five locations in Finland, Sweden and the United States. For these projects, Kemira has made provisions of EUR 19.6 million. The most important project is the closure of the iron sulfate landfill at the facility in Pori, Finland. According to Salminen, the work has progressed well.

through its products and solutions, kemira has a global impact on how its customers treat and recycle water, says aarno salminen, vice president for environment and safety.

environmental inDex
100

eUr miLLiOn

environmental operating costs

towarD consistent practices

80

tHe enVirOnmentaL index COnsists Of seVen different reLeases, and Of nOn-HazardOUs and HazardOUs Waste. in year 1997 tHe index Was 100.

40 35 30 25 20

60

40

15 10 5

20

97 06 07 08 09 10

06 07 08 09 10

non-hazarDous waste generation

1,000 tOns

eUr miLLiOn

environmental capital spenDing

Equipment and production processes at Kemiras over 70 plants are enhanced continuously. Work to harmonize environmental and safety practices has continued in all operational areas. In addition, Kemira carried out audits in all locations to monitor compliance with internal EHSQ standards. All locations operate under different circumstances, like age and legal requirements. This is why we first analyze and summarize the information collected through the audits. Then we plan the necessary improvements and make decisions about future focus areas. Salminen explains. The goal is to create certified management systems for all Kemira locations globally. In addition to internal systems, Kemira is committed to the international Responsible Care program, the chemical industrys voluntary initiative to continuously improve environmental, health and safety performance.
progress in safety

800 700 600 500 400 300 200 100 0

35 30 25 20 15 10 5 0

06 07 08 09 10

06 07 08 09 10

Kemira recorded good safety levels in 2010. The number of accidents was again lower than in preceding years. There is still room for improvement, however. Our goals are stricter than the current level, says Salminen. Continuous training is essential to improving occupational and process safety. Kemira has increased training for plant managers, for example. Plant managers are crucial in leading by example, Salminen points out. Most of Kemiras plant managers in Europe and North America have completed modern safe-

reVieW 2010

Kemira stresses the importance of safety and efficiency in the use of its own resources, too.
ty training. The programme continues in South America, to be followed by China. Kemira stresses the importance of safety and efficiency in the use of its own resources as well. Kemiras new energy-efficiency programs are an excellent example. We have discovered many new ways to cut costs, says Salminen. Kemira has invested in energy efficiency for more than ten years. Now the company has adopted an even more systematic and goal-oriented approach. Kemiras resource efficiency measures targets all of its global operations, from the production chain to logistics. Emissions and waste can be reduced by closing water cycles, for example. Safe, uninterrupted processes enable highly efficient use of resources, notes Salminen.
strong r&D

Innovations based on strong research and product development give Kemira a competitive advantage in water chemi-

cals. These innovations help customers improve cost-efficiency and minimize the harmful impacts on the environment. Established by Kemira and VTT Technical Research Center of Finland, the Center of Water Efficiency Excellence (SWEET) is a unique research network that brings together top-level water expertise globally. The aim is to develop new technology, which helps to enhance the water usage and recycling, and to create more sustainable and energy-efficient solutions for the water intensive industry.

the kemira coDe of conDuct aDDresses:

financial reporting. environment, health and safety (eHs). Business partners. fair competition. Conflicts of interest and bribery. support for human rights. insider information and investor relations. Company assets. Confidentiality and privacy. reporting procedures.

we are committeD to:

Preventing and minimizing any harmful effects of our operations on the environment, people and property. Continuously improving our environmental and safety performance. Promoting sustainable development by making efficient use of energy and natural resources. the international responsible Care (rC) program. Globalizing our certified management systems.

sHaPinG a Better fUtUre

Kemiras research and development is firmly focused on clean water and eco-efficiency, driven by the dominant megatrends of the coming decades. this year, the companys r&d is boosted by the leading-edge research initiative sWeet.

text Wif Stenger PHOtOs iStOcKpHOtO and Jari KiVeL

hrough more efficient use and reuse of water, Kemira is actively participating in solving water-related issues. The companys products and applications enable manufacturing processes to become less energy intensive. Research and development is proactively focused on new ways to help customers cut costs while lowering their environmental load, water use and energy use and at the same time improving prod-

uct quality. Eco-efficiency also fosters more innovative approaches. Kemira serves water-intensive industry - environmental sustainability is our current and future business, says Heidi Fagerholm, Executive Vice President of R&D and Technology. Kemira is benefiting customers through three R&D program areas: water reuse,

sWeet COLLaBOratiOn
he Center of Water efficiency excellence (sWeet) is a strategic partnership with the prestigious Vtt technical research Centre of finland and other strategic players in the water technology field. sWeet is a new way of working, where Kemira aligns internal and external resources to faster reach commercialization and business success. since it was launched in spring 2010, cooperation with Vtt has gone well. around 200 scientists are hard at work on sWeet-related issues. in certain projects Kemira has been able to proceed to customer trials. this is one example of the need for shortterm wins to validate the possibilities to create new organic business. Collaboration with partner companies has proceeded mostly as planned. as in Kemira r&d, sWeets main initial focuses are on water reuse, biomass and sustainable water chemistry. Kemira wants to create profitable organic growth in these areas, which strongly support all Kemiras segments. the common denominator through is water intensiveness for industrial sectors.

the efficient use and reuse of water is the cornerstone of Kemiras strategy.
biomass utilization and sustainable water chemistry. These are also the targets of the SWEET [see sidebar]. The efficient use and reuse of water is a central principle of Kemiras strategy.
use less, reuse more

Kemira believes that with the opportunities provided by chemistry, its possible to use water more efficiently in water-intensive industries. For example, by developing more efficient processes for desalination and water reuse by optimizing the chemistry used, its

possible to decrease operating costs for produced water. This goes hand-in-hand with emerging megatrends. Availability of fresh water will become a critical issue in many regions. Increasing water demand is driven by urbanization and population growth, particularly in Asia, and by industrialization, especially in Asia and South America. In India alone, the population has increased by 40 million in the past two years, pushing up water demand. In addition, it is estimated that 80 percent of the developing

eco-efficiency fosters more innovative approaches.

worlds diseases are caused by dirty water. 1.3 billion people live without clean water and that number is growing. Climate change is causing more problems. In some places, droughts are depleting the last water reservoirs. Elsewhere, torrential rains and floods degrade the quality of drinking water. These developments, along with stricter regulations and cost concerns, are putting pressure on industry to cut water consumption. While the outlook may seem bleak, many of these challenges can be met by innovative integration of chemistry solutions and industrial process knowhow. Kemira is ready to help shape a better future.
from waste to power

Kemiras target to gain profitable and organic growth is based on delivering the

right kind of water to mankind, whether its drinking or process water. Without clean process water, the water-intensive industries face problems, for example in energy generation. Kemiras business model is based on applying a wide product portfolio to make use and reuse of water more efficient in our customers processes. Among the prime reuses of industrial water and its byproducts is biomass utilization. Kemira is working on technical developments in this promising area of resource efficiency.

Biomass produced through water purification is being used as a source for energy production. Through anaerobic digestion, organic matter in sludge from wastewater treatment converted into methane, which can then be used as an energy source. Digestion is maximized through nutrient supplements, raising the energy efficiency. Besides methane, sludge is also a valuable source of nutrients such as nitrates and phosphorous as well as of course water for recirculation. Another example around the close interconnection of water and energy is the need for cooling water in almost all kinds of energy production. Whether it is raw water intake or water circulation which is in question, water must be treated to hinder organic or inorganic buildup and corrosion, for example.

sustainably into the future

Kemiras strenght is its in-house production and knowledge of water chemistry.

The third main focus of Kemiras R&D is sustainable water chemistry. This, too, is motivated by customer needs, environmental concerns and legislation. The share of biodegradable and recycled raw materials in Kemiras chemistry solutions is becoming even more important. Active development of the portfolio ahead of regulatory constraints is also vital. The entire product portfolio is well in line with the rigorous European product safety standards. Kemira has a long history in water-related technologies and applications. In addition to the continuous developments in water treatment chemicals at its global R&D laboratories, Kemira is one of the key companies that produce these chemicals themselves. This means that Kemira has deep knowledge about the whole process, from raw materials to the final product. Striving for pole position in water chemistry, Kemira is using its competence to ensure that chemistry is well integrated with equipment and analytical instrumentation to meet process requirements. Kemiras R&D is doing its very best to support Kemiras vision and develop new solutions and concepts that will create new business related to efficient use and reuse of water.

extendinG reaCH
text Wif Stenger PHOtOs SuSanna KeKKOnen and SHutterStOcK

the eUs reaCH is among the worlds strictest chemicals laws. While compliance poses challenges, Kemira sees benefits for its own operations.

he general objective of REACH Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals is enhancing protection of human health and the environment. In effect since 2007, the legislation is overseen by the European Chemicals Agency (ECHA), located near Kemira headquarters in Helsinki. Under REACH, industry is responsible for assessing and managing risks posed by chemicals and for supplying safety information to users. From a company point of view, there are actually several advantages, says Liisa Rapeli-Likitalo, Senior Manager, Product Safety. Data is more harmonized, streamlined and publicly available. There is also better management and control of chemicals throughout the supply chain, says the head of Kemiras REACH Project Team. Meanwhile, R&D has more opportunities to explore new molecules via the product and process oriented research and development (PPORD) notification system.
beefing it up

quirement where best practices need to be developed, notes Rapeli-Likitalo. Extensive work is underway to beef up IT systems to support the new REACH requirements. This is also true in regard to the UNs Globally Harmonized System of Classification and Labeling of Chemicals (GHS), known as CLP in the EU. Another challenge has been preparing new SDS and labels for pure substances under these CLP regulations as well as preparation for Classification and Labeling notification. This is required for materials sold as single substances from December 2010 onwards. Kemira product safety is submitting notification dossiers for substances that have not yet been registered under REACH. The work will continue in the coming years as the regulation is expanded to include mixtures.
sharing Data anD costs

liisa rapeli-likitalo (left), head of kemiras reach project team, and susanna toivonen, head of product safety, know that companies benefit from reach in several ways.

All of this poses challenges as well. More information must flow through the supply chain, which requires advanced IT systems. For example, management of registration numbers in Safety Data Sheets (SDS) for various legal entities is a complex exercise. The companies have to update SDSs to comply with the new requirements of REACH and Classification, Labeling and Packaging of Substances and Mixtures (CLP) regulations. For registered chemicals, registration numbers and uses, including exposure scenarios, must also be communicated. Maintaining and communicating these uses is a new re-

A major milestone in the REACH process came at the end of November, the deadline for registering substances with the highest volumes as well as those with the most severe hazards. Nearly 25,000 files were submitted to ECHA by the deadline. Altogether Kemira made around 3,000 pre-registrations, covering many EU-imported substances. In 2010, 93 registrations were made, covering 49 substances. Some of the dossier preparation was done as part of consortia and Substance Information Exchange Forums (SIEFs). These were set up in order to share data and costs under a project launched in 2006. The first registration phase was completed successfully, says Rapeli-Likitalo. However, due to the complexity of REACH, supply chain communication remains challenging. New guidance documents and updates are published often. Implementing REACH has been full of daily inventions to tackle evolving issues no-one has encountered before. REACH is part of a global trend toward stricter safety legislation, with many countries developing new chemical rules. There are also REACH-like regulatory developments in China and Turkey, says Rapeli-Likitalo. And the UNs GHS system is being implemented globally, including countries where no previous classification and labeling legislation has existed before.

10

seCUred riGHt frOm tHe start

emiras approach to product safety is driven by its commitment to responsible Care and iCCa Global Product strategy. responsible Care is fundamental to all Kemira activities and product safety is a crucial part of it. We see excellence in Product safety as beneficial for our business, as we can better serve our customers with products that are compliant in their applications, says Susanna toivonen, Head of Product safety. during 2010, Kemira fine-tuned its product safety network. to efficiently serve the business, global processes have been reviewed and clarified. the Product safety organization was streamlined to support the product management structure. Kemira has been revising the ways of working in its new product development process, explains toivonen. Were involving product safety in the early phases of product development projects. thus we can better guide r&d to choose from alternatives that are viable from the regulatory point of view. meanwhile, to support the new regulatory requirements, Kemira also extensively overhauled its it systems, a process that continues in 2011.

11

One steP aHead

Kemira offers more and more effective ways to use water sustainably. this enables its customers to reduce their water footprints and gain competitive advantage.
text matti remeS PHOtO getty imageS

12

impact on water
12,000

10,000

8,000

6,000

4,000

2,000

ater-intensive industries need to minimize water, energy and raw materials use to cut costs and reduce their environmental effects. Increasingly, companies use carbon calculators and, in future, will use water footprint calculators to evaluate their environmental impact. A carbon footprint indicates how much carbon dioxide and other greenhouse gas emissions a product, service or operation produces during its life cycle. A water footprint represents how much water is used to produce a product, service or operation.
stanDarDs in the making

pioneering work

03

06

09

10

Waste Water disCHarGes (n, P and COd tOnnes) Water PUrified WitH OUr PrOdUCts (indiCatiVe, miLLiOn m3)

The ISO 14067 standard for carbon footprints is expected to be finalized soon, but an international standard for water footprints will take longer to complete. The second draft of the water footprint standard was circulating for comments. Its development will still take a few years, because it involves many governments and other parties. This, however, is the best way to proceed, says Senior Manager Timo Hrm of Kemira. The standard will make it possible to calculate and compare product, company, or government-specific water footprints. Kemiras customers have shown considerable interest.

As part of a pilot project, Kemira is calculating carbon and water footprints for eight of its products, mostly industrial coagulants. The project will produce valuable information, which will be used in standardization work and footprint method development, says Project Manager Marianna Vuorikari. The incomplete standard makes calculating and comparing water footprints relatively difficult, but we want to be proactive in this field. Products that help customers reduce their carbon and water footprints are an increasingly important competitive asset, says Vuorikari. Hrm points out that water footprints also help companies enhance production efficiency. With more accurate information on energy and water use, we will be able to cut consumption where it matters most, says Hrm. Kemira has a very small carbon footprint, largely because carbon-free electricity constitutes 80 percent of the companys electricity use. Kemira also has diminished its water footprint because of efficient process water recycling in production. With Kemiras water chemicals we enable reuse of water and thus make our customers water footprint smaller.

frOm finLand tO tHe WOrLd

finlands country brand Delegation stresses the importance of the water footprint as a key indicator of sustainable development. the delegation, appointed by the foreign minister, suggests that finland should become the first country in the world to calculate water footprints for all the foodstuffs it produces. according to the delegation, this model could also be exported to awaken the world to the significance of the water footprint.

13

thanks to careful management, Kemira again achieved better results in safety.

text Wif Stenger PHOtO SuSanna KeKKOnen

safety first
These international frameworks are the basis of our plan, do, check & act cycle, says Salminen. They leave certain flexibility for us to define the most important aspects that we want to improve.
cooperation for inDustry safety
hazarDous waste treatment

ur driving idea is simply safety first, says Aarno Salminen, VP, Environment & Safety. Visible management commitment is the key. Kemiras main achievement was again improvement in occupational safety measured by Lost Time Accident (LTA1). Despite the better-than-ever levels, the company wants to improve even more.
plan, Do, check & act

Kemira continued to boost process safety auditing and reporting companywide. New tools were added to monitor internal risk and technical safety at production facilities, and to train staff. We are building Process Safety Management System and process safety culture which ensures that our plants operate safely, says Pieter-Jan Bots, Process Safety Manager. Audits identify the strong and weak points in the system and process safety culture, while focusing on key issues to be improved. The first, most important step is the Process Hazard Assessment, followed by technical evaluations at production facilities. Process Safety Critical sites are audited every third year. All sites are regularly audited by Environmental Health Safety and Quality (EHSQ) managers. In Europe, the authorities audit Process Safety Critical sites. As most sites have ISO 9001, ISO 14001 and OHSAS 18001 certification, they are assessed annually by certification bodies.

In process safety, Kemira wants to learn from the best benchmarks and put it into practice in a disciplined manner. Were approaching the best quarter in the international chemical industry and must maintain that level, says Salminen. Kemira is putting more emphasis on preventive measures, so-called leading indicators. These include many kinds of employee and managerial tasks, like safety observations, safety walks, and management of audit findings or near-miss situations. Kemira has obtained new site certificates and adopted a centralized EHSQ management system in North America an approach to be spread to other regions. Kemira has invested in new software to support the performance of Process Hazard Assessments. For accident and near-miss reporting, personnel use dedicated software Synergi, which runs in their native languages. These new software tools and audits are good learning opportunities, says Salminen. This is a permanent training mission.

0,00% 13,36% 51,48% 16,88% 17,94% 0,33%

on-site incineration off-site incineration off-site lanDfilling recycling other treatment on-site lanDfilling

lost time inciDents per million working hours

8 7 6 5 4 3 2 1 0

06 07 08 09 10

14

audits uncover what needs to be improved in the system and process safety culture, says pieter-Jan bots, process safety manager.

environment iso 14001

50% 50%

certifieD sites not certifieD

quality iso 9001

74% 26%

certifieD sites not certifieD

health anD safety ohsas 18001

28% 72%

certifieD sites not certifieD

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in sHOrt
COmPiLed By matti remeS

COmmitted tO saVinG tHe BaLtiC sea

Kemira jOins PrestiGiOUs BUsiness COUnCiL

emira is committed to improving the state of the Baltic Sea. Chemical treatment of wastewater removes hazardous substances and significantly reduces nutrient emissions to seawater. The Baltic Sea Action Group (BSAG) is an independent foundation established to save the most polluted sea in the world. The group collects protection commitments from companies in the Baltic Sea area. Kemira participated in the Baltic Sea Summit held in Helsinki in February 2010 and published its first commitment regarding nutrient recycling from wastewater sludge on September 2009. The second commitment made by Kemira was published on October 2010 with the focus on the development of technologies to remove micropollutants from effluent of wastewater plants. In September 2010, BSAG and Kemira held a water treatment conference for local decision-makers in Riga, the capital of Latvia. Riga has reduced its environmental emissions rapidly: its annual phosphorus disposal to the Baltic Sea has decreased by 100 tons in three years. This constitutes one third of the national goal set by the Helsinki Commission (HELCOM) to be achieved by 2021. HELCOM is the governing body of the Convention on the Protection of the Marine Environment of the Baltic Sea Area. Rigas nitrogen emissions to the Baltic Sea have decreased even more. The opportunity to share experiences was one of the most significant aspects of the convention. The participants discovered that instead of huge amounts of money, progress requires determination and a strong will to succeed. Kemira plays an important role in reducing wastewater emissions to the Baltic Sea. Riga is one of the many cities and municipalities in the Baltic Sea area that use the companys water chemicals.

emira has been accepted as a member of the World Business Council for Sustainable Development (WBCSD). This influential council consists of 200 companies from 35 countries. The WBCSD offers firms an opportunity to learn about sustainable development and share best practices. The council represents companies in a diversity of forums and collaborates with governments and transgovernmental networks, as well as non-governmental organizations. Represented by CEO Harri Kerminen, Kemira contributes to the WBCSD by sharing its water expertise.

CLOser researCH COLLaBOratiOn in sinGaPOre

emira is engaging in closer research and development collaboration with Nanyang Technological University and the national water agency (PUB) in Singapore. Kemira and Nanyang Technological University have launched a two-year project to enhance wastewater treatment efficiency. The project aims to design a low-energy treatment process that produces high quantities of clean water and as little waste as possible. Kemira and PUB collaborate on issues related to raw water, wastewater, recycled water and sludge treatment. The Government of Singapore has selected the environmental and water-related industries as strategic growth areas. Singapore has more than 70 water-related companies.
PHOtO: istOCKPHOtO

16

PHOtO: janne GrninG / GOriLLa

BiOdeGradaBLe PrOdUCts fOr tHe nOrtH sea OiL indUstry

t
PHOtO: istOCKPHOtO

he strict regulations for oil production in the North Sea area increase the need for efficient chemicals for environmentally sensitive conditions. Kemira supplies KemEguard antiscalants to oil industry service companies in the North Sea area, where challenges include precipitation of mineral ions in layers on the pipes and equipment. This could block pipelines, but Kemiras products effectively prevent scaling. Kemiras biodegradable antiscalants have been certified with the Yellow Band Approval for the North Sea, Norwegian Sector. The products meet biodegradability requirements and are environmentally acceptable.

HaLf Less sLUdGe

astewater treatment generates high quantities of sludge. For this reason, Kemiras KemiCond sludge treatment solution is attracting a lot of customer interest. Kppala in Sweden is one of the most advanced wastewater treatment plants in the world. Serving eleven municipalities in the Stockholm area, the plant processes about 50 million cubic meters of wastewater every year. Kppala utilized KemiCond sludge conditioning technology combined with advanced dewatering, hence the amount of sludge is reduced approximately by 50 percent, from 40,000 tons to 20,000 tons. The process also improves odor control. In the fall of 2010, the KemiCond solution was listed in the ICIS Innovation Awards contest for significant innovations in the United States.

PHOtO: jari KiVeL

the amount of sludge is reduced by 50 percent and odor control is improved.

17

Kemiras energy-efficiency program has resulted in many new ways to save energy and costs in production plants, contributing to sustainability.
text matti remeS PHOtO iStOcKpHOtO

BiG stePs in enerGy effiCienCy

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greenhouse gas emissions

1,000 tOns CO2 eq.

voc emissions
tOns

250
n2O as CO2 eq.

200

200

150

150 100 100

CO2

50

50

06 07 08 09 10

06 07 08 09 10

n the spring of 2010, Kemira launched a new program to identify energy-efficiency needs in its production plants. Ten of the companys most energy-intensive plants were reviewed before the end of the year to reduce costs and environmental effects. We adopted a more systematic and goal-oriented approach, and the results are excellent, says Elina Engman, Vice President for Energy at Kemira. We have discovered a great diversity of new ways to save energy. Based on four-day reviews, production plants listed energy-efficiency measures, many of which required no major investments and could be implemented immediately. Energy need can be reduced by adjusting processes and process temperatures or using waste heat for preheating, to name just a few examples. In so doing, energy efficiency can be enhanced by as much as 20 percent.

Kemiras production is based largely on carbon-free energy. Carbon dioxide emissions from Kemiras production plants have decreased by more than 95 percent since 2000 mainly because of structural changes in business operations. Within the European Unions Emission Trading System, the company needs emission allowances and permits only in one location in Sweden.
attituDe counts

Kemiras energy-efficiency program has gained momentum because of additional management resources and, above all, enthusiastic employees. Employees have actively contributed to identifying energy-efficiency needs. In addition, every production plant has been assigned a person who is responsible for furthering the program, says Engman. For investments related to long-term improvements, production plants have prepared project plans and to-do lists.

Kemiras energy management system includes a manual that production plants can use to implement improvements. In addition, production plants can share best practices as part of the review process. Energy needs vary greatly by production plant. Some plants need a great deal of steam, whereas others consume a lot of electricity, gas or oil. All benefit from a common toolkit from which they can choose the tools that work best for them, says Engman.
improvements every Day

Engman stresses that improving energyefficiency is not a separate project. It is integral to everyday operations at each production plant. Energy efficiency is about continuous work, monitoring and improvements, she says. This year, 10 to 15 of Kemiras production plants will be reviewed in terms of energy efficiency. The company is also creating an energy-efficiency system that includes training as well as management and reporting tools. Improving energy efficiency is a process that covers all of Kemiras global operations, Engman points out.

19

enVirOnmentaL data fOr tHe Kemira GrOUP

2006 Releases into wateR, tonnes Chemical Oxygen demand (COd)1 nitrogen (n) Phosphorus (P) suspended solids, 1,000 tonnes metals (Hg+Cd+Pb+Cr+as+Cu+ni+zn) Releases into aiR, tonnes Particulates sulphur dioxide (sO2)2 nitrogen oxides (nO2)3 Carbon dioxide (CO2), 1,000 tonnes Volatile organic compounds(VOC)4 Volatile inorganic compounds (ViC) waste6, tonnes Hazardous wastes, total Off-site landfill Off-site incineration On-site landfil Other treatment non-hazardous wastes, 1,000 tonnes natuRal ResouRces fuel consumption, ktoe fuel consumption as raw material, ktoe Purchased electricity, tj Purchased heat, tj Cooling water volume, million m , approx.
3 7 5

2007 69 70 2 0.9 2.3

2008 53 48 0.4 0.5 1.2

2009 45 4 0.5 0.05 0.3

2010 58 4 0.5 0.02 0.1

29 87 4 0.9 2.3

40 1,813 298 224 171 23

69 1,957 372 223 182 144

63 1,801 323 205 177 142

58 1,015 263 186 174 34

19 168 273 182 96 64

6,497 2,161 2,332 0 1,969 526

8,073 2,738 3,815 0 1,521 639

9,554 3,269 3,709 0 2,576 299

7,109 2,621 3,271 0 1,217 44

14,658 9,079 2,357 59 3,164 26

92 93 10,420 6,754 213 5.7

107 92 11,082 7,340 219 6.1

89 83 10,857 6,497 199 6.0

54 105 9,718 4,327 159 1.4

54 116 10,346 4,726 163 1.2

Waste water volume, million m3, approx. 8 safety number of accidents9 per million working hours RefeRence data, euR million Group net sales environmental capital expenditure environmental operating costs total environmental costs, % of net sales

6.0

6.5

4.4

3.5

3.1

2,522 12.2 35.4 1.9

2,810 30.2 39.1 2.5

2,832 7.2 30.0 1.3

2,500 2.3 14.9 0.7

2,160 2.9 12.9 0.7

1 2 3 4 5

estimate. in this case, partly caused by inorganic discharges. all sulphur compounds calculated as sO2. nitric oxide and nitrogen dioxide calculated as nO2. VOC is a sum of volatile organic compounds as defined in eU directive 1999/13/eC sum of ammonia, hydrogen chloride and six other simple inorganic compounds.

6 reported figures do not include on-site incineration, waste which is further processed into products at the sites, or sold as a co-product to external recycling. figures are on wet basis. 7 2009 increase mainly due to a calculation correction at one site. 8 Wastewater volumes to external treatment are excluded 9 accidents causing an employee absence at least one day (Lta1).

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sUmmary Of tHe enVirOnmentaL data

Kemiras environmental releases remained stable compared with the previous year. Safety performance continued to improve globally, and there were no accidents with serious consequences. Environmental remediation works proceeded also well. Costs of environmental protection continued to decrease slightly.

he environmental data of Kemira has been compiled from 71 production sites globally. Separate terminals or storage areas are not covered. There were no first-time reporters in 2010, but three sites were closed and 13 sites were left out due to business arrangements. The reported production volumes were down by 6 % reflecting the smaller number of sites, while volumes in the continuing businesses were higher. The total energy consumption increased by 7 %, mainly as a result of higher production volumes and electricity use in sodium chlorate manufacturing. Climate gas emissions were stable, at a level of only 3 % of the situation in early 2000s. The reported sulphur dioxide emission dropped by as much as 80%, as a consequence of divesting the sulphuric acid production in Kokkola, Finland. Volatile organic (VOC) emissions were down by 45%, a change explained by spinning off the paint business of Tikkurila Oyj. The waste water volumes continued on a downward slope, mainly as a result

of business divestments. Cooling water use increased due to higher production volumes. Amounts of non-hazardous waste were about 42% lower than in the previous year. The change was mainly caused by higher one-time off-site disposal of waste in 2009. Hazardous waste from production remained practically unchanged, but contaminated soil from remedial projects in Scandinavia rmore than doubled the overall figures.
environmental costs in control

Kemiras environmental report employs the principles of financial reporting and complies with the finnish accountancy Boards (KiLa) general instructions on the recognition, measurement and disclosure of environmental issues in the annual reports of companies, 2006. in addition, the data of the report is in substantial compliance with the responsible Care reporting Guidelines (2006) of Cefic, the european Chemical industry Council. Of the core parameters defined by this guideline, nitrous oxide and CfC compounds are not reported because of no significant emissions, and transport incident data is not collected globally.

The environmental costs have decreased substantially in Kemira over the past years, and this trend continued also in 2010. Total costs amounted to EUR 15.7 (17.2) million. The reduction is explained by lower operating costs totaling EUR 12.9 (14.9) million. Environmental capital expenditure was somewhat higher, EUR 2.9 (2.3) million. The rise came from many small improvements at several plants, in a year of no significant ongoing environmental investments.

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enVirOnment and safety at sites in 2010

11 12 2 1 310 13

BRazil

sweden

spain

The loading and storage areas were improved at the Arapoti plant. In Rio Claro, water management and waste neutralization were enhanced, helping also in the final disposal of waste. A gas scrubbing system was installed at Camacari, solving the air emission impacts in the vicinity of the plant. The Lages plant reduced waste and improved reactor safety. Compensation was paid for a local fish-kill that occurred in the nearby creek in the previous year.
mexico

Helsingborg site increased water recycling and investigated gas scrubbing efficiency. A limited area of contaminated soil was cleaned up, and the demolition of old factory buildings was largely completed. Sea sediment investigations of the adjacent areas revealed a spot of elevated concentrations of arsenic. A lively public discussion took place when renewing the safety permits of the site.
denmaRk

The Torrelavega plant advanced with scrap use in the process and started upgrading the scrubbers. A new permit was obtained by the Tarragona site with tighter conditions on waste water and water monitoring. The Zaramillo site optimized process waste separation.

10 italy

A new filter press at Cremona makes metal separation more efficient.

The Xoxtla plant upgraded dust control within the factory area.
finland

A fairly large leak of ethanol storage tank occurred at Provestenen, but there were no injuries or damage to the environment.
the netheRlands

11 canada

Noise control was enhanced at the Oulu hydrogen peroxide plant. The Vaasa plant made soil investigations and started the sediment remediation project of the nearby Lake Infjrden. The Joutseno site made improvements in spill control and energy efficiency. The Kuusankoski plant upgraded emission control with automation and new gas analyzer. Tightening of the salt storage area was undertaken at ets, and the plant also sent old hazardous waste storage to approved treatment, as well as took into use new emergency equipment. The coagulant plant in Pori was equipped with a new dissolving unit for Ferix waste.

The Botlek plant improved oil separation to comply with waste-water limits and made soil investigations. The hydrogen peroxide plant at Europoort improved energy efficiency and water management. The water chemical plant started using recycled aluminum raw material.
united kingdom

The Maitland plant conducted a modeling study of noise and air emissions. A leak of close to three tons of hydrogen peroxide in loading area was contained immediately. A new containment tank was built at the Ottawa coagulant plant.

12 united states

Process changes at Goole enhanced energy efficiency substantially.

fRance

The Marietta plant enhanced control of spills and occasional releases. The Columbus plant improved piping and water control. The Washougal plant started aeration to cut waste water oxygen consumption.

13 china 8

The Sausheim plant shaped-up rain water and spill control. In Pierre Benite, a new process reduces air and water releases, and recycling measures were also taken to cut solids and aluminum discharges substantially.

The Tiancheng plant made good progress in expansion and revamping projects, thereby improving also process safety and reducing solvent emissions and waste.

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indePendent assUranCe rePOrt

tO tHe bOard Of directOrS Of Kemira OyJ

We have been engaged by Kemira Oyj (hereafter: Kemira) to provide limited assurance on Kemiras environmental and occupational safety information from the reporting period 1.1.31.12.2010 presented in Kemiras separate Environmental Report 2010, as well as in Kemiras Annual Report 2010 on pages 50-51 (hereafter: Environmental Reporting). The data and assertions included in the Environmental Reporting remain the responsibility of the management of Kemira. Moreover, the management of Kemira is responsible for preparing and presenting the environmental reporting in accordance with the Finnish Accountancy Standards Boards recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies (2006), as well as for preparing and presenting the statistics presented in connection with the environmental reporting in accordance with the European Chemical Industry Councils (CEFIC) Health, Safety and Environmental Reporting Guidelines (2006), where relevant to Kemiras operations. Our responsibility is to carry out a limited assurance engagement and to express a conclusion on the environmental reporting subject to the assurance based on the work performed. We have conducted the engagement in accordance with the International Standard on Assurance Engagements (ISAE 3000): Assurance engagements other than audits or review of historical financial information, issued by the International Auditing and Assurance Standards Board. Amongst others, this standard requires that the assurance team members possess the specific knowledge, skills and professional competencies needed to understand and review the information to be assured, and that they comply with the requirements of the IFAC Code of Ethics for Professional Accountants to ensure their independence. The evaluation criteria used for our assurance are the Finnish Accountancy

Standards Boards recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies (2006); and the CEFIC Health, Safety and Environmental Reporting Guidelines, as applied to Kemiras environmental reporting.
limitations of the engagement

ment, and therefore less assurance is obtained than in a reasonable assurance engagement.
in our engagement we have performeD the following proceDures:

Environment and safety related information is subject to inherent limitations regarding data accuracy and completeness, which are to be taken into account when reading our assurance report. The presented environmental reporting is to be considered in connection with the explanatory information on data collection, consolidation and assessments provided by Kemira. Our assurance report is not intended for use in evaluating Kemiras performance in executing the environmental or safety principles Kemira has defined. To assess the financial state and performance of Kemira, the Kemira audited Financial Statements for the year ended 31 December 2010 is to be consulted.
the work performeD in the engagement

Our assurance procedures are designed to obtain limited assurance on whether the information subject to the assurance engagement is presented in all material respects in accordance with the Finnish Accountancy Standards Boards recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies (2006); and in accordance with the CEFIC Health, Safety and Environmental Reporting Guidelines, as applied to Kemiras environmental reporting. A limited assurance engagement consists of making inquiries, primarily of persons responsible for the preparation of the environmental reporting presented, and applying analytical and other evidence gathering procedures, as appropriate. The evidence gathering procedures mentioned above are more limited than for a reasonable assurance engage-

Interviews with the people responsible for the preparation of the report; An assessment of data management processes, information systems and working methods used to gather and consolidate the presented environmental reporting, and a review of Kemiras related internal documents; Comparison of the presented environmental reporting to underlying rules of procedure, management and reporting systems as well as documentation; A review of the presented environmental reporting, including the performance data and assertions, subject to the engagement, and an assessment of information quality and reporting boundary definitions; Testing of data accuracy and completeness through samples from the Groups information systems and original numerical information received from Kemiras companies; Visits to two sites selected on the basis of a risk analysis taking into account both qualitative and quantitative information.

conclusions

Based on the assurance procedures performed, nothing has come to our attention that causes us to believe that the information subject to the assurance engagement is not prepared, in all material respects, in accordance with the criteria applied to the assurance engagement.
helsinki, 22 march 2011 Kpmg Oy ab peKKa paJamO authoriseD public accountant nina KiLLStrm corporate responsibility aDvisor
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Kemira OyJ
POrKKaLanKatU 3 P.O. BOx 330 fi-00101 HeLsinKi, finLand teL. +358 10 8611 fax +358 10 862 1119 WWW.Kemira.COm