Environment

Our Group believes that contributing to the reduction of global environmental impacts--through the effective use of resources such as water, energy, and raw materials, and the prevention of environmental pollution--is essential for sustainable business operations. With this belief, we will advance various initiatives and proactively leverage innovative technologies to build sustainable business operations.

Resources and Environment

Group policy

Our business and communities depend on the sustainable consumption of natural resources and protection of the environment and biodiversity. We will work to improve the life cycle and circularity impacts of our products and supply chain.

Risks & opportunities

The key risks and opportunities associated with resources and environment are summarized in the table of materiality page (Materiality, Risk, Opportunity). While these are largely common across the consolidated group, though individual PCGs do have different focus areas and action priorities that reflect the local maturity of their improvement journeys.

Improvement & performance

In 2023, our total waste generated decreased 7% to 14.7 kilograms per tonne (kg/t), while the hazardous waste proportion increased 3.3 percentage points (pp) to 36.6%. Waste recovered (recycled, reused) decreased 5.5 pp to 30.8% of total waste generated. These changes were driven by a combination of factors, including reduced generation and improved recovery through improvement initiatives in a number of businesses, increased production in NIPSEA Group, changes in production mix across different business units, and inclusion of recent acquisitions. These same factors also influenced water performance, where water withdrawal decreased 7% to 0.54 kiloliters per tonne (kL/t), while water consumed increased 20% to 0.47 kL/t. A new metric has been established to improve understanding of water consumption in regions of high or extremely high water stress, with 61% of total water consumption occurring in such regions during the year. This metric will help determine future priorities for improvement in sustainability impacts associated with water consumption.

Performance

2023 performance and changes versus the prior year for individual PCGs are summarized in the following table, together with the key improvement priorities for the year.

Metrics and results related to Resources and Environment (2023)

* Figures in brackets indicate year-on-year change

PCG Waste Water Improvement Priorities
Total Waste Generated
(kg/t)
Hazardous Waste Generated
(% of total)
Waste Recovered
(% of total)
Total Water Withdrawn
(kL/t)
Total Water Consumed
(kL/t)
Water Consumption in High Stress Regions
(% of total)
NIPSEA Group 10.4
(-1%)
46.8%
(+3.6 pp)
11.0%
(-9.9 pp)
0.49
(-6%)
0.48
(+26%)
66% Implementation of local improvement projects, including a water project at the Shanghai factory that reduced
water discharge by 90% via reuse in production. Reduce water intensity by 8% by 2025.
DuluxGroup 40.1
(-13%)
26.6%
(+1.8 pp)
52.5%
(+15.0 pp)
0.55
(-11%)
0.34
(-10%)
36% Implementation of landfill waste plans to achieve 2030 target of 50% reduction in DuluxGroup (Pacific), waste
water treatment plant improvements (France, Italy), and implementation of waste and water metrics across
recent acquisitions.
Japan Group 53.6
(+7%)
12.4%
(-1.9 pp)
80.6%
(-15.9 pp)
1.66
(+2%)
0.53
(-13%)
0% Continued focus on waste separation for recovery and recycling of wash waters in paint manufacturing.
Dunn-Edwards 9.9
(-11%)
1.0%
(+1.0 pp)
5.4%
(-4.9 pp)
0.63
(+10%)
0.50
(-4%)
93% -
Total 14.7
(-7%)
36.6%
(+3.3 pp)
30.8%
(-5.5 pp)
0.54
(-7%)
0.47
(+20%)
61% Sharing of best practices across the Group, including support for implementing new water consumption performance metrics in high-stress regions.
For details on Resources and Environment, see the ESG Data page.

Environment initiatives

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