Page 1

arn is in charge of the recycling of end-of-life vehicles in the Netherlands. On behalf of the manufacturers, arn is responsible for achieving 95% recycling of cars by 2015. The pst facility plays an essential role in achieving that recycling percentage. With a focus on continued progress, arn is helping to ensure a sustainable future. arn Sustainability Report 2011

focus on sustainability For the production of new goods, it is essential that the raw materials comply with certain quality requirements. This also applies to materials produced from waste. Compliance with the customer’s specifications is an absolute requirement for our pst facility. All material flows produced in the facility are therefore analysed in our own laboratory, both chemically and in terms of their composition.


Contents Foreword 2 arn makes sustainability measurable 4 ‘Tiel’ creates new dynamism 8 Focus on tackling unfair competition 12 Integration in the recycling market 22 Expansion of services for sustainability 26 Distribute knowledge in the market 30 Vision and policy

Profile and organization arn Auto Recycling arn Recycling

arn Recycling Services

arn Advisory

Appendix  Financial report 2011 Auto & Recycling Foundation 36 Goods flow management procedures 38 Financial report 2011 arn Management Plan car batteries 39 Vehicle fleet development 40 Independent assurance report 44

Colophon Published by Auto & Recycling Foundation and arn, P.O. Box 12252, 1100 AG Amsterdam zo. Copy VanderHeijden Communications: Yvonne van der Heijden. arn: Janet Kes. Total Identity: Sieds de Boer, Yvonne van de Wal. Concept and design Total Identity: Sieds de Boer, Arjen Firet, Jeannette Kaptein, Anneloes Logjes, Annemarie van Noort, Yvonne van de Wal, Julius van der Woude. Photography Aatjan Renders Fotografie. Foto Focus: Jack Tillmanns. Hollandse Hoogte: Harald Braun Illustrations Unger-Kisman: Thijs Unger. Print Aeroprint. Paper: Revive and Cocoon, 100% fsc recycled out of pulp; ecf.

Facts. Figures. Focus. The sustainability report from arn contains fact and figures that reveal the actual results achieved by the organisation. This is as it should be. However, arn is more than merely the sum of the bare figures. arn is a organisation bubbling with ambition and energy, with employees and partners striving to achieve sustainability. It is specifically that focus that represents a special story, and a vision arn would like to share with you. The 2011 sustainibility report is available in Dutch and English. Should different interpretations arise, the Dutch language version prevails.

1


2 arn Sustainability Report 2011

3

The commissioning of the pst facility in Tiel will further enhance arn’s ability to fulfil its objectives. A European grant to the tune of 1 million euro will give arn the funding it needs to optimize the recycling processes. arn is hard at work sealing off any leakage flows, and increasing its market share.

Foreword

arn can reflect on a good year in 2011. The undoubted highlight was the start of operations at the Post Shredder Technology (pst) facility in Tiel on 28 April 2011. The enormous public interest and media publicity for this event show that arn has proved its worth as a partner in attempts to increase sustainability in the mobility chain. The facility strengthens arn’s position and enhances its reputation. It also allows the consumer to see how the waste disposal fee for cars is being used. The European Union has also expressed its appreciation of arn’s activities. The European Commission has allocated approximately one million euro from the life+ subsidy programme for the development and implementation of the eu’s nature and environmental policy to further improve the recycling processes. The pst facility, which will play an essential role in complying with the target of recycling 95% of cars laid down in the End of Life Vehicles Directive, serves as a demonstration project for the rest of Europe. There were also disappointments in 2011. arn’s market share fell to 82.5% from 86.7% in 2010. The main culprit was leaks in the stream of cars for recycling. Fake exports (cars disappearing without actually being exported) were also a problem.

This practice is distorting competition and harming bona fide dismantling and shredder companies. It is also bad for the environment, because there is no form of control whatever of what happens with the materials from these cars. arn would like to see the government and automotive industry join forces in a severe crackdown on dishonest practices. Measures should also be taken to combat the growing trade in parts from old and damaged cars by parties that do not always comply with the laws and rules. Expectation 2012 arn Recycling expects its activities to grow in 2012. The volume of shredder waste processed by the PST facility is expected to double to 60,000 tons per annum in the course of the year. The diversity of contracts secured by arn Advisory will increase. The arn Environmental Scan and the Sustainable Business Scan (in association with bovag) is a steady base for arn Recycling Services. arn Auto Recycling will continue to pursue further cost reductions in the chain through its tendering procedure and by concluding the best possible agreements with collection and recycling companies. Apart from reducing costs, the Ecotest, which was jointly

developed by FFact and arn Advisory, will also identify better options in terms of sustainability. In 2012, arn will devote special attention to its relationship with the car dismantling companies by improving communication with them. The disposal fee will remain at 45 euros (inclusive of vat) per car in 2012. The funds from the disposal fee will probably decline slightly. The collection of some materials for which a premium is paid will continue for longer than previously expected. Car sales are expected to fall by 10% in 2012, following an increase of 15% in 2011. Our expectation is that the number of cars to be dismantled will rise by around 5% in 2012. arn organization In 2011, Peter Janssen was succeeded as chairman of the executive board of the Auto & Recycling Foundation by Olaf de Bruijn, the director of the rai Vereniging. There was also a change in the Supervisory Board of arn Holding b.v., with Frank de Munck standing down after 15 years and being replaced by Peter Janssen. arn would like to thank with Mr Janssen and Mr De Munck for their contributions to the further development of arn.

Mrs Ingrid Niessing was appointed as arn’s financial director at the end of August 2011. The expansion of the executive board was dictated by the growing complexity of the organization and the growth of arn’s activities. I would like to thank all of arn’s ­employees for their dedication and all the external partners for the successful cooperation in 2011!

Arie de Jong Managing director arn Amsterdam Zuidoost, 24th May 2012


4 arn Sustainability Report 2011

arn makes sustainability measurable. Sustainability is a term with many different aspects. It is therefore sometimes difficult to determine what actions a company should take, and what positive effects those actions will have. It is up to arn to ensure the measurability of the gains that can be achieved through sustainability.

Vision and policy

In an increasingly mobile world in which awareness for sustainability is growing, it is essential to constantly and proactively search for the most efficient and sustainable use of raw materials. Important factors driving that trend are the desire to improve the living environment and to use raw materials efficiently and sparingly. But companies also benefit financially from sustainable business operations, and hence they also contribute to the continuity of the enterprise. arn has taken the lead in making the positive effects of sustainability measureable in the mobility sector. That is the practical aspect of arn’s efforts, together with its partners, to raise the level of sustainability in the mobility chain. Ecotest The Ecotest, developed in association with FFact, allows sustainability to be measured. The model used shows the performance in terms of sustainability of the entire recycling chain for old cars, but also of each partner within the chain. To give a specific example: according to the model, the arn recycling system yields savings of 1.7 tons in CO2 emissions for each end-of-life car. That is the equivalent of the CO2 emissions of an average car over more than 12,000 kilometres. The Ecotest

can also calculate opportunities for further improvements in the sustainability of a company’s operations. The Ecotest provides arn, the centre of expertise for sustainability in the mobility sector, with the underlying data to support the further development of its activities, including the optimization of the overall performance of the recycling chain for endof-life cars and the development of markets for the high-quality recycled materials from the pst facility. The Ecotest can be widely used throughout the recycling sector. Analyses are currently being made for the recycling of car tyres and batteries, for example. Pioneering role The scarcity of raw materials is leading to growing interest in discarded products. Consequently, the value of materials from old cars is increasing. Cars also contain more valuable materials from built-in computer-driven systems, for example. arn’s ambition is to process those materials and to encourage and assist market actors in the use of the recycled fractions for high-value applications. This is all part of arn’s business strategy of playing a pioneering role in the mobility sector.

electrical vehicles According to expectations, this number of electrical vehicles will be driving on the roads of the Netherlands. In 2011, 34 hybrid vehicles and two electrical vehicles were dismantled. This process reveals that the dismantling of damaged and old batteries requires specific knowledge, in particular because of the high voltages generated by the batteries. A training course for this work will be developed in 2012.


7

“Sustainability can only be achieved through cooperation and knowledge sharing” Arie de Jong Managing director arn

My car to the scrap yard:

what happens?

A car taken to be dismantled is almost completely processed, and the various materials are reused. An overview of what is separated, where.

1

Deregistration of a vehicle

at the car dismantling company

2

1000 kg

Dismantling at car dismantling company

310 kg

Here, one-third of the car is separated:

230 kg

Second-hand parts such as:

A company approved by the RDW registers the vehicle for dismantling

80 kg

ARNmaterials including: • liquids • tyres

1/3

Fibres

• engine • gearbox • headlights etc.

1/3

Minerals

3

Shredder company

520 kg

Retrieval of metals • iron • copper • aluminium

“Sustainability must not be allowed to become bogged down in idealism; it has to deliver concrete results. Sustainability should have added value. For businesses, that added value may be cost savings, increased profits, more customer satisfaction or a better image. All around us we are seeing that businesses that take an interest in their surroundings are better able to justify their existence in the long term.  However, it is my firm conviction that sustainability can only be successfully achieved through cooperation with other parties and knowledge sharing. Everyone has to join forces if we are to take the next step towards achieving a sustainable outcome. On an international level, too, we need cooperate in order to achieve improvements. For example with the European organization of car manufacturers acea. Knowledge generated at arn will help car manufacturers to achieve their sustainability targets. By processing end-of-life vehicles we deliver a huge contribution to sustainability. Our work really does help protect the environment and we are right to be proud of that fact. The pst facility makes a massive contribution to improving the image of the automotive industry, in addition to which we are raising awareness among car drivers about how we can sustainably process a car at the end of its lifecycle.

Progress is essential to us all. For me, sustainability is itself an essential element of progress. With that in mind, we must continue to further develop in our specialist field, namely recycling. After all, nothing stays the same: the market, the composition of products and even the role of sustainability itself. That is why I see such an important role for arn as a driver for innovation and cooperation to further the goals of sustainability.”

The depletion of raw materials means that producers are searching intensively for ways of retaining control over the materials they use for their products. One option would be for manufacturers to introduce a type of lease construction for materials, where consumers would pay a price to use a product for a specific period , while the producer retains ownership of the materials. A number of car makers want to retain ownership of the batteries in electric vehicles, for example. This would make them less dependent on the availability and price of the raw materials they need. Another option might be to introduce a deposit system, where companies pay a premium for the return of materials. The anticipated trends will create new opportunities for arn. As manager of the recycling chain, arn can help producers in recovering the materials from their products. The pst facility will play a key role in this. arn also has a structure in place for collecting materials and is exploring ways of recovering materials as efficiently as possible. To perform its role as manager of raw materials, the post shredder tech­ nology will have to be refined to allow for further separation of materials. Ideally, as often as possible the fractions emerging

1/3

4

PST facility

Plastics

170 kg

At the installation, materials are separated off for reuse, using Post Shredder Technology.

from the pst facility would be the same as the basic materials used in the production process. A logical step in arn’s further development is the creation of recycling systems for other mobility products. Since 2011, arn Scooter Recycling Nederland has been helping to establish a system for recycling scooters and mopeds. arn is also holding talks with the manager of the rail network, ProRail. In the health care sector there are opportunities for recycling of products that use electric motors, such as electric wheelchairs, mobility scooters and adjustable beds. Growing sustainability in the mobility sector arn operates in a dynamic environment. With an appropriate policy towards corporate social responsibility and further professionalization of its own organization, arn will be able to evolve further as a sustainable organization in the years ahead. In this way, arn will make its own ­contribution to increasing the sustainability of the mobility sector. arn’s policy addresses the three dimensions of sustainability: people, planet and profit.

Activities of the individual operating ­companies that help in accomplishing arn’s mission include: arn Auto Recycling – Increasing arn Auto Recycling’s market share. – Curbing leakage flows from the recycling system. – Assisting car dismantling companies in the collection of materials with a positive value. arn Recycling – Increasing the recycling percentage – Reducing the costs of car recycling. arn Recycling Services – Positioning arn’s Environmental Scan and bovag’s Sustainable Business Scan firmly in the mobility sector. – Reducing costs of waste flows for the mobility sector. arn Advisory – Using its expertise for internal and external assignments. More info www.arn.nl/english/ARN/ About-ARN/Vision-on-sustainability


8 arn Sustainability Report 2011

‘Tiel’ creates new dynamism in the organization. The opening of the pst facility in Tiel started with an eye-catching opening show. Three percussionists gave a performance on car wrecks, wheelie bins and oil drums. Secretary of State Joop Atsma handed over the key to the factory, and guests could enjoy a film and listen to an audio tour about the separation process. The plant is now running at full capacity. Profile and organization

In 2011, arn enhanced its position as a centre of expertise for the environment and recycling in the mobility sector. arn is gaining a strong reputation in the Dutch recycling market. The four operating companies each play their own part in carrying out arn’s mission to promote sustainability in the mo­bility sector. Each of the operating companies has its own responsibilities and management, and the individual managers report to the executive board of arn Holding. arn wants to further develop the organization in accordance with the principles of the three domains of corporate social responsibility : people, planet and profit. Binding factor In its short existence the pst facility in Tiel has grown from a minor player to a binding factor within the arn organization. Every employee of arn is proud of the production facility, whose activities have created a new dynamism and elan in the organization.

Respect Respect is one of the key aspects that underlines arn’s approach to sustainability. Respect for one another is essential for creating a good working atmosphere that is conducive to achieving our common goals. For arn as an employer, this means listening to the employees and giving them the responsibility appropriate to their jobs. Employees are given room to perform their jobs as they see fit within the prescribed limits. The challenge is to find a healthy balance between achieving a goal and allowing employees discretion in how that goal is reached. Another aspect of respect is that the employer informs employees in good time of developments that are relevant to them. Employees are assigned a key role in ­promoting arn as a reliable and solid ­partner that implement the producer ­responsibility. A fundamental requirement is that they are professional in their contacts with stakeholders, customers and other external parties. Further professionalization To increase the professionalism of the organization, a new erp software package will be rolled out in 2012.

kg shredder residue How do you recycle the material from the pst facility for the highest possible value? Keeping the characteristics of the material in the back of your mind, you start searching for possible applications. Identifying possible solutions is an unpredictable process, ranging from a brainstorming session with architects from the construction sector to production companies working with similar materials. At a certain point, we ended up at a composite company that manufactures unique products including chairs and other items of furniture using natural fibres and resin. Together, we started looking at our mineral and fibre fractions. The result was a sheet material produced using bio-based resin that could for example ideally be used for the production of street name signs. Every year, the pst facility is expected to process some 35 kilotons of automotive shredder residue. Broadly speaking, the shredder waste consists of one third fibres, one third plastic and one third minerals. We are now on the lookout for new applications for 10 kilotons of fibres and 10 kilotons of minerals.


11

Supervisor of disposal fee fund Foundation with four executives who represent the car industry in the Netherlands: bovag

focwa

rai

stiba

Trade association of companies in the mobility sector

Trade association of vehicle body repair companies

Trade association of manufacturers and importers of road vehicles

Trade association of car dismantling companies

Auto & Recycling Foundation Steers arn Holding. Principal of the holding company.

arn Holding

“The Ecotest will contribute to a targeted optimization of the output from the pst facility” Marijn van der Maesen Consultant at FFact

“In my view, the real added value of the Ecotest is that it delivers arguments for sustainability based on hard figures. The tool also makes it possible to compare the sustainability performance of different companies. The Ecotest calculates the three key sustainability criteria: CO2 emissions, raw material preservation and the economy. A key characteristic of the tool is that as far as possible it ties in with practice. After all, the results are based on information we obtain directly from the players in the product chain. Based on the Ecotest a business or organization can redirect its sustainability policy. arn can use the Ecotest jointly developed with us to specifically optimize the output from the pst facility. The key point for arn is to identify how to produce the highest quality end product; market value is one of the components of the analysis. The better you can separate the shredder residue, the greater the potential quality of the end product, and the higher the yield. The fibre fraction, for example, can be used for processing sludge or as a composite in construction materials. The latter option delivers the greatest return in terms of improved CO2 emission savings and a higher market value of the materials. The Ecotest helps to deliver facts to support the decisions that need to be taken to optimize output.”

Directs the activities of the operating ­companies, arn Auto Recycling, arn Recycling, arn Recycling Services and arn Advisory.

Supervisory Board Handles the financial administration, personnel management and marketing & communication.

The holding is supervised by the Super­visory Board (two industry representatives and three independent members).

arn Auto Recycling

arn Recycling

arn Recycling Services

arn Advisory

Increase arn Auto Recycling’s market share.

Increase the recycling percentage.

Curb leakage flows from the recycling system.

Reduce the costs of car recycling.

Position arn’s Environmental Scan and bovag’s Sustainable Business Scan firmly in the mobility sector.

Use its expertise for internal and external assignments.

Assist car dismantling companies in the collection of materials with a positive value.

The new software is better suited to arn’s requirements in allowing the processes in the organization to run smoothly and for dealing more efficiently with internal and external data in communication, both within arn and with stakeholders. Individual employees will benefit from the further professionalization of the organization, as it will enhance their personal development and career prospects. arn has a dedicated training policy. Managers are provided with instruments to provide career advice and internal coaching. Employees can follow courses to acquire specific knowledge of new developments in the areas in which arn is active, for example the implications of the emergence of electric vehicles and advances in the application of materials from the pst facility. Health arn devotes a lot of attention to creating a pleasant working environment and promoting the health of its employees. For example: – employees can have periodic voluntary medical check-ups, if necessary accompanied by strictly personal health advice; – employees can join the company fitness

Reduce costs of waste flows for the mobility sector.

scheme and the bicycle scheme; – the company promotes a clean desk policy; – a healthy lunch is provided every day, always with fruit on the table; – sporting activities are organized for the entire staff; – smoking is discouraged. Absenteeism The absenteeism rate in 2011 was 1.7%; the national absenteeism rate in comparable companies was well above 3% in 2011. In consultation with the occupational health and safety service, measures are being formulated to prevent illness and incapacity for work. Management expanded At the end of Augustus 2011, arn’s executive board was expanded with a financial director, who will also be responsible for support services, including hrm and information technology. At the end of 2011, arn had 46 employees, including 14 at arn Recycling in Tiel. Additional employees will be hired with the planned introduction of a two-shift operation in 2012.

Participation in ‘green driving’ challenge As part of its Corporate Social Responsi­ bility policy, arn is taking part in the Green Driver Challenge, a four-month ­competition designed to promote a sustainable style of driving that reduces fuel consumption. Participants are expected to drive as efficiently as possible and so reduce CO2 emissions. Practical tips for driving more cheaply and smartly are part of the challenge. Employees are competing individually and in teams against each other and against other organizations. arn is also competing as an organization. More info www.arn.nl/english/ARN/ About-ARN/What-we-do


12 arn Sustainability Report 2011

Focus on tackling unfair competition. Every year, end-of-life vehicles disappear from view, into the illegal circuit. Exactly how many cars disappear in this way is pure guesswork. Signals from the market suggest that numbers are enough for it to be a cause for concern and a problem that requires an integrated approach.

arn Auto Recycling

Developments in 2011 – Dismantling premium ended for pur foam, coconut fibre, rubber strips and safety belts. – Initiative taken to establish an integrated approach to leak flows and crime in the recycling chain. – A number of reports of unfair competition were received. – Car dismantling companies gave arn an overall rating of 7.0 for its service. – Participation in SafeBAT. – A meeting was organized to inform importers about the new categories in myBatbase. – Approximately 900 fully electric and hybrid cars with a Li-Ion battery were newly registered.

arn Auto Recycling oversees the recycling of end-of-life cars in the Netherlands. It is responsible for ensuring that cars registered for dismantling are recycled properly in accordance with the End-of-Life Vehicles Management Decree. As chain manager, arn decides where the materials are sent for recycling. From 2015, the statutory standard is that 95% of the weight of a car should be recycled, with at least 85% of the weight being recycled and the balance being achieved through energy recovery. Until then, the statutory recycling standard is 85%. arn works with almost 300 partners in the recycling chain, including arn’s contract partners: 247 car dismantling companies, 4 collection companies, 17 recycling companies and 14 accredited shredding companies. The trends in vehicle numbers that are relevant for arn Auto Recycling are presented in the annex on page 40. Termination of dismantling premiums In 2011, arn started to phase out the payment of dismantling premiums for a number of materials following the ­commissioning of the pst facility in Tiel, where shredder waste is processed into useful materials using post shredder technology (pst).

The current situation for different ­ aterials is: m pur foam, coconut fibre, rubber strips and safety belts  Payment of the dismantling premium was stopped as of 10 April 2011. Car dismantling companies were given until 1 June 2011 to register the materials they had removed via the Extranet. Bumpers, hubcaps and grilles  Talks with enforcement agencies and the trade association stiba are at an advanced stage. Glass  The dismantling premium will end when markets have been found for highquality applications for glass from the pst facility. arn Advisory is conducting extensive research into this. Curbing leak flows arn is working closely with trade associations, investigative agencies, the rdw and other partners in the Foundation for Tackling Vehicle Crime (avc). There has been a leak flow if the number of cars registered for dismantling is greater than the number of cars that arrive at the shredding companies. arn Advisory is investigating methods of gaining a clearer view of the illegal waste streams.

kg basic oil The oil collected by vehicle dismantling companies and garage businesses is fully reprocessed into base oil. As its name suggests, base oil forms the basis for a large number of oil products, such as engine oil. For every 100 kg of oil we supply, about 60 kg of base oil are left following the regeneration process. Every year, around one million kg of used oil are regenerated to form 600,000 kg of base oil.


15

“In the fight against unfair competition, arn uses its powers of persuasion both on the government and the private sector, in particular the car dismantling industry. Our strength lies in very solid grassroots ties with the vehicle dismantling companies. They supply us with practical information from the sector and we can use that information, backed up by our own data, in discussions with external parties such as enforcement bodies, the Ministry of Infrastructure and the Environment and the Vehicle Registration Authority (rdw). This interaction with partners increases our effectiveness and is essential when submitting requests for enforcement in tackling unfair competition, revising legislation and tackling abuse of the rdw scheme for dismantling under own management and false exports. In my current position, I am a member of a fair number of consultation bodies on behalf of arn. We cooperate for example with the rdw, the sector organization stiba, the police and the Tax and Customs Administration. To give a practical example of the influence of arn: the Ministry of Infrastructure and the Environment, in consultation with the rdw, is preparing measures aimed at restricting dismantling under own management. The changes involve raising the age limit for vehicles or even abolishing the scheme altogether. Both would be positive developments because

there are alternatives, for example disposal via arn dismantling companies.  For me, one of the most important elements is effective feedback to the grassroots. Effective communication with the car dismantling companies about our activities ensures continuity in tackling unfair competition.”

In 2011, arn developed two methods to improve monitoring of the leak flows: 1 checks by inspectors of the volumes of materials at car dismantling companies; 2 monitoring through the exchange of information with the intermediate trade. arn is still studying this option. arn published a special issue of its magazine 95 devoted to the subject of leak flows in recycling in the summer of 2011. The publication prompted Guus Wesselink, the director of the avc, to establish a working group to investigate malpractices in the car trade. The working group has identified three major problems: Fake-exports  Where cars are exported on paper but do not officially leave the country. This distorts competition and causes damage to legitimate car dismantling and shredder companies. It is also bad for the environment, since these cars are generally not recycled in accordance with environmental guidelines. The number of cars involved is estimated at several tens of thousands every year. Dismantling under own management  The threshold for registering a vehicle for dismantling under own management is very low. This leads to many cases of illegal

Car dis m Afficomp antl liat ani ing ed es to A RN

of AR N sc op e be yo nd

to A RN

Ch rat oppi h shr er thng edd an ing

Wh suben veh sta icle nce s a s ar re c e n hop ot p pe rop d, w erly ast sep e ara ted © Unger-Kisman 2011

S

ARhred N-a d ppr er ove •M e d • M tals

G IN D D RE SH

Sep • Li aratio q • Gl uids n of • Aiass • Serbags • Seatbel t • Ty cond- tensi o • O res hand ners il fi par • Ba lter ts tte s ries

G IN TL AN M IS D

r di egi D ds sm stra ant tio ling n )

Sc owrapp n m ing ana und gem er ent Car dis No comman t affi pa tlin liat nies g ed

of lif e

Exp ort

N IO AT TR IS EG ER D

De via reg Ag Gover istr e a (on ncy innmen tio ca line r ORA t Roa n

Ille scr gal app ing

ted por x e not but t r o exp for d re iste Reg

inp or ut

Co La n st su tro ow pe lle rv d ne ise re rN d cyc et by lin he AR g rla N Re nd P cy s an oss clin i b d l g ris e l ou ks ea ts of ka ide po ge A llu flo RN tio ws . n.

Aarnout van Duuren Manager arn Auto Recycling

o all t ove Ab oland 1. Pelarus 2. B kraine 4. U

derIncor e r Ad gis ect mi tr in snistra atio yst tive em er n r

In the Netherlands, some 500,000 cars part company with their final owner every year. Of those, the majority are correctly recycled via ORAD. A small proportion, however, does not follow that route. Where are the leakage flows?

En d

“Interaction with partners increases effectiveness in tackling leakage flows”

i • Fi neral b s • Pl res a • O stic the r

commercial dismantling without the necessary licence or certificate. Sale of discarded vehicles on Internet   There are more than 3,500 private dealers on the Internet. They sell car parts on a scale that must involve more than one car. They are in fact operating commercially, which means that they must also comply with the relevant rules. It is also often impossible to determine the origin of the spare parts. Integrated approach arn has taken the initiative to develop an integrated approach to dealing with leak flows and crime in the recycling chain. The system would be modelled on the Regional Information and Expertise Centres, which serve as information hubs and centres of expertise for provinces, municipalities, the public prosecution service, the police, the special investigative services and the tax authorities in the fight against organised crime. The aim is to achieve closer cooperation between supervisory authorities, inspection agencies, organizations like arn, stiba, the provinces and the tax authorities in tackling abuses in the recycling chain.

Tackling unfair competition At regional meetings in February 2011, arn called on car dismantling companies to provide tips about unfair competition. In response, there were 31 reports in the first half of the year. Almost all of the tips related to environmental offences. Two concerned other illegal activities, such as the sale of parts from stolen cars and vin switching, and they led to a major investigation that had not yet been completed at the end of 2011. Certified car dismantling companies arn wants to continue expanding the network of car dismantling companies. In the process, it will gradually switch to remuneration for quality rather than quantities of materials. The network of car dismantling companies could also be used in future to recycle products from other sectors. The government must provide assistance in achieving the improvement in quality. In 2011, arn awarded an additional payment of roughly 60% of the annual certification costs to the majority of certified car dismantling companies. The additional fee was raised to 100% on 1 January 2012.


16 arn Sustainability Report 2011

In 2011, 96.2% of the weight of a car was recycled; of this, 83.1% was material reuse. By 2015, this 83.1% must have been raised to at least 85% material reuse; the pst facility aims to make an important contribution to achieving this target.

17

In 2011, 96.2% of the weight of a car was recycled.

From 83.1% to 85% by 2015

To qualify for the premium, companies must meet a number of criteria: – Discarded vehicles must have demonstrably been delivered to a shredder company with an arn contract. – Barcode labels must be correctly applied. – The accompanying forms must contain the correct Eural code and accompanying waste code numbers. – The arn compressor in the drainage installation must be legitimately used. – There must be a signed drainage agreement. – Consignments must be claimed in the Extranet after receipt of weighing vouchers. – The quality requirements must be met for materials: glass, tyres and lpg-tanks. Implementation extranet The Extranet went into use on 1 January 2011. There were some initial problems with its launch. Teething problems in the system meant that payments were late and procedures changed. They also affected communication with the companies. By the end of 2011, the Extranet was working properly and helping to reduce the administrative costs for companies. To further reduce those costs for its partners, in 2012 ARN will start paying collection companies and recycling companies directly and they will no longer be paid by the car dismantling companies.

Customer satisfaction survey arn conducted a second customer satisfaction survey among car dismantling companies in September 2011. The overall rating was 7.0, which is slightly lower than the score of 7.4 in the first survey in 2010. The outcome was not a complete surprise for arn. In addition to the problems with the introduction of the Extranet, a number of staff changes were also occurring at arn around that time. arn has taken the results of the survey to heart. Measures have been taken to streamline the administrative procedures and payments. The introduction of the news page on the Extranet should improve communication with the stakeholders. Efforts will also be made to involve car dismantling companies more closely in arn’s activities and at an earlier stage. Since the last quarter of 2011 arn has been holding intensive talks with enforcement agencies and stiba about the end to the dismantling of larger plastic parts. The aim of these talks is to ensure that all the stakeholders are on the same wavelength so that the parties communicate the same message. Google AdWords arn has switched from advertising in the Yellow Pages to online advertising with Google AdWords. This is a way of attracting visitors to a website and making it easier

to find a company. A hundred of the 247 car dismantling companies added their own page to the arn site in 2011, complete with a link to their own website. More than 73,000 visitors found a car dismantling company via the arn site using Google AdWords. In 2012, arn will encourage the other car dismantling companies to post their own page on the arn site. Tender for collection and processing of car tyres Car tyres removed by car dismantling companies for arn are collected and stored by collection companies under contract with arn, which then transport them to recycling companies selected by arn. arn issued a tender for the collection and processing of car tyres in the autumn. Among the requirements that bidding companies must meet are that they are in possession of an iso 9001 certificate. They must also have all the relevant environmental permits. Market share Of the total number of end-of-life vehicles dismantled in 2011, 206,150 were processed via arn, representing a market share of 82.6%. In 2010, the arn share was 86.7%. Two reasons can be put forward: increase in dismantling under own management and increase in orad registrations by businesses also holding a permit for the scrap metal trade.

Recycling yield in 2011 The basis for the treatment of end-of-life vehicles and accounting for those activities is laid down in the eu ‘Directive 2000/53/ ec’. This Directive was taken up in the Netherlands in the End-of-life Vehicle Management Decree (Bba), which was revised in 2007. One of the requirements is that of all end-of-life vehicles registered in the Netherlands, at least 85% of the weight must be recycled or reused. At least 80% must be reused as a product or a material, while the remaining 5% can be achieved through energy recovery. The recycling target has been raised from 2015 onwards to the reuse of 95% of the weight. Of that, at least 85% must be achieved through reuse as a product or material and a maximum of 10% through energy recovery.

The European Commission has drawn up detailed rules for determining these percentages and for the way in which the Member States of the European Union (eu) must report on these figures to Brussels. According to these reports, the European Commission will check whether the targets as formulated in the elv Directive have been complied with. The rules of the European Commission determine that periodic shredder tests have to be carried out. The results from these shredder tests are needed for the annual report to the Ministry of Infrastructure and the Environment. In 2010, arn undertook a shredder test in order to have a baseline measurement prior to the commissioning of the pst facility, in 2011. The data from the shredder test in 2010 were used for calculating the recycling percentage for 2011. The recycling figures published in this report and the quantities of material processed were calculated according to the European monitoring rules. In 2013, arn will once again carry out a shredder test in which the performance of the pst facility will be included. Quantity of end-of-life vehicles In 2011, 195,052 end-of-life vehicles arrived at the shredder companies for treatment. The number of registrations in orad (the

online vehicle dismantling registration system) by arn companies in 2011 totalled 206,150. The discrepancy can in part be explained by vehicles not yet disposed of at vehicle dismantling companies. Determination of the average weight of end‑of-life vehicles In 2011, the average empty weight of all end-of-life vehicles was calculated at 1016 kg. This figure was calculated on the basis of the orad registrations from the Dutch vehicle registration authority rdw. Share of dismantling companies in the recycling percentage The recycling companies that are under contract with arn provide figures on the mass balance. The mass balance indicates how much of the processed material has been usefully reused, incinerated with energy recovery or dumped. For a balanced report, these mass balance figures are compared with the weighing note figures from the collectors and the vehicle dismantling companies. Table 1 shows the actually processed volumes of material according to their European List of Waste (LoW) code. Fuel (diesel, petroleum and gas) are not included in the calculations for the recycling percentage. In 2011, 248.122 kg of fuel (diesel, petroleum and gas) were processed in an environmentally-safe manner.

In the recycling percentage, the parts dismantled for reuse by the dismantling companies are included in the recycling percentage. This is achieved by weighing the stripped end-of-life vehicle before it is transported to the shredder. Reuse is determined as follows: average end-of-life vehicle weight minus the average weight of the stripped (dismantled) end-of-life vehicle, minus the arn materials. Share of shredder companies in the recycling percentage The results of the shredder test carried out in 2010 also served as the basis for the calculation of the share of the shredder companies in the recycling percentage in 2011. These figures relate only to the end-of-life vehicles processed by the Dutch shredder companies. For end-of-life vehicles processed by foreign shredder companies, the individual mass balance figures from these companies are included in the recycling percentage. The share of reuse comprises the metal separated by the shredder company from the end-of-life vehicles for further use in the metal processing industry.

kg recovery

Table 1 Materials of depolution and dismantling in kg based on recycled quantities

LoW-code Material Reuse Recycling Energy recovery

Total recycling and recovery

Disposal

13 02 05

mineral-based non-chorinated oil

979,643

21,068

1,000,711

16 01 07

oil filters

44,899

19,242

64,141

52,669 0

16 01 13

brake fluids

43,629

938

44,567

2,346

16 01 14

anti-freeze fluids

653,315

34,385

687,700

226,711

14 06 01

refrigerant

3,122

0

3,122

101

16 01 16

tanks for liquid gas

112,349

0

112,349

0

16 06 01

lead batteries

707,246

97,551

804,797

8,129

16 01 03

discarded tyres

3,660,638

108,572

3,769,210

0

16 01 20

glass

3,707,510

0

3,707,510

505,570 127,718

16 01 19

plastics

2,064,182

948,456

3,012,638

16 01 99

waste not otherwise specified

45,162

0

45,162

5

46,486,016

12,021,695

1,230,212

13,251,907

923,249

For explanatory notes on the realization of the arn materials in this table, see appendix on page 38.


18 arn Sustainability Report 2011

recycling per vehicle

Table 2 Recycling yield Reuse Recycling Total recovery Totaal reuse and recycling

Total reuse and recovery

46,486,016

118,161,134

144,119,045

164,647,150

190,605,061

23.5%

59.6%

72.7%

83.1%

96.2%

Total number of end-of-life vehicles

195,052

Average weight per vehicle

1,016 kg

Processing of shredder waste Since March 2010, (car) shredder waste is incenerated in a waste-fired power station (waste incineration installation) with R1 status. The R1 status means that the waste incinerated in this plant counts towards useful application with energy recovery. Various shredder companies supply their shredder waste to a waste incinerator installation with R1 status, so this share also contributes to the recycling performance of end-of-life vehicle. As a consequence, the energy recovery proportion of the recycling percentage in 2011 was relatively high, as was the case in 2010. Recycling yield in 2011 Table 2 provides an overview of the recycling yield from end-of-life vehicles in 2011. Reuse of 23.5% consists of the components dismantled from the end-of-life vehicle by the vehicle dismantling companies. The recycling percentage at 59.6% is the total of the arn materials (see table 1) and the metals reused following shredding. The figures in table 2 show that in 2011, a total reuse and recovery percentage of 96.2% was achieved, of which 83.1% reuse as product or material and 13.1% incineration with energy recovery. As a result, the statutory obligation from the Management of End-of-Life Vehicles Decree was fulfilled. As compared to the recycling percentage achieved in 2010, this represents a rise of 0.9%, mainly caused by the larger proportion of incinerated shedder waste. From 2015 onwards, according to the European rules, a maximum of 10% may be reported as recovery.

Legislation and regulations Car dismantling companies that fall under Activities Decree Since 1 January 2011, all car dismantling companies have fallen under the Environmental Management (General Rules for Establishments) Decree (otherwise known as the Activities Decree). This means that car dismantling companies only need to report the company’s activities to the competent authority. All of the rules that previously applied remain in force. The rules laid down in the Management of End-of-Life Vehicles Decree on funding for dismantling, collection and recycling have been transferred to the Activities Decree. Consequently, the Management of End-of-Life Vehicles Decree is now a purely a product decree, containing targets for producers. Change in the rules for dismantling car glass The Ministry of Infrastructure and the Environment amended the Activities Decree with regard to the removal of glass in 2011. The change arises from a decision of the European Court of Justice (C 64/09, 15 April 2010) and a subsequent communication from the European Commission that the End-of-Life Vehicles Directive does not require glass to be removed manually before shredding if the glass can still be reused as a material after shredding. Car glass therefore falls into the same category as large plastic parts and tyres. In the course of 2011 it became clear that, in this context, the definition of large plastic parts refers to bumpers, grills and hubcaps. Introduction of zero-rate landfill tax for waste Decree from 1 January 2012 From 1 January 2012, the landfill tax for waste is zero. In 2011 a provisional decision

was also published to amend the Decree on Landfill Sites and Landfill Ban in 2012. The proposal is to extend the ban on landfilling to various categories of waste, including earth. arn submitted its views on the provisional decision to the Ministry of Infrastructure and the Environment in 2011, calling for the addition of mixed streams or residues from the sorting of the streams of shredder waste to the category of shredder waste. In light of the zero rate for landfill tax, this could guarantee a management structure that is as free of leaks as possible. European working group on uniform reporting for End-of-Life Vehicles Directive Together with the Ministry of Infra­struc­ ture and the Environment, participates in an eu working group that has been formed to develop a uniform method for the ­reporting by eu member states on the End-of-Life Vehicles Directive. Uniformity would make it easier to compare the performance of the member states in terms of recycling and help to create a level playing field in the member states. Other members of the working group are representatives of the member states, the automotive industry, the shredder industry and the dismantling sector. In that context, the European Commission will adopt a shredder test protocol in 2012. The mandatory character of this protocol will be effected with an amendment to Commission Decision 2005/293/EC in 2012, which will prescribe the method of reporting to be adopted by the member states for the End-of-Life Vehicles Directive.

scooters and mopeds discarded In the Netherlands, between 2009 and 2011, in total 35,000 scooters and mopeds reached the end of their useful life. Although the volume of waste from a scooter amounts to only 10% of that from a car, the sector still recognises the importance of taking responsibility for this waste flow, too. As a result, the sector has established a collection and recycling system for scooters that goes by the name Scooter Recycling Nederland. This system now manages approximately one million kg of waste every year.


21

“European recognition has contributed to a sustainable image and role model position” Angelina Molenaar Lawyer at arn

“As a legal advisor, I was very closely involved in the application for the life+ grant. For arn, the awarding of this European environmental grant represented a major milestone. After all, by making the award, the European Commission has indicated that we are on the right track for achieving 95% recycling, and above all the 85% reuse of materials. On that basis, the pst facility will serve as an example for the rest of Europe. Other countries can learn from our experience. European recognition has contributed to the sustainable image of arn and the role model position we are striving for. The life+ grant has made it possible to go in search of higher-value applications for many of the materials from the pst facility, and to ensure that those materials are successfully marketed. Together with a partner, for example, we have developed street name signs made from composite material using the fibre fraction and mineral fraction from the pst facility. Our next step is to interest municipal authorities in this sustainable product. As well as starting the life+ project, I am now heavily involved in the project’s implementation. That is what makes working for arn both interesting and varied. On top of your own specific expertise, you can contribute to the success of a grant project.”

arn Management Plan car batteries The arn Management Plan car batteries provides manufacturers and importers that first bring a battery onto the market with a collective solution for meeting their obligations under the Battery Management Decree. To join the scheme, the companies pay a fixed annual management fee for each battery. arn reports annually to the Ministry of Infrastructure and the Environment on the management fee. arn also provides a national network of collection points where private users can dispose of their car batteries free of charge. Hybrid and electric vehicles Hybrid and electric vehicles constitute a growing market. At the end of 2011, a management contribution was paid for 73 small Li-Ion batteries and 168 big Li-Ion batteries. The number of hybrid vehicles is far higher, a management contribution was paid for 14,232 vehicles. Most hybrid cars now on the Dutch roads are fitted with nickel-metal hydride (NiMH) batteries. The majority of the fully electric vehicles and the new generation of ‘plug-in’ hybrid cars run on lithium-ion (Li-Ion) batteries. In 2020, an estimated 7% of newly registered vehicles will fall into these categories. The first Li-Ion batteries are expected to be discarded in eight years’ time. arn can provide tailored solutions for importers that opt to collect and process Li-Ion batteries themselves. Participation SafeBAT In 2011, arn took part in the government’s SafeBAT project, together with a number of other organizations. The aim of the research relating to the end-of-life phase was to increase safety and standardization in the management structure for discarded ev batteries. One of the findings from the research was that there are still very few recycling companies capable of processing Li-Ion batteries. NiMH batteries have a positive residual value from the recovery of nickel, cobalt and rare earth metals. The residual value of discarded lithium-ion batteries is still very negative. arn therefore feels the current recycling rate of 5 euros per kilo is still not representative. Another conclusion was

that no second-life applications have yet been developed in practice. Important recommendations to emerge from this study are: – Further legislation on the storage of ev batteries is required. – Given the severely negative costs of recycling, further research is needed into the potential for second life applications. – A specialist should be hired for the safe dismantling of a damaged ev battery (resulting from a crash). Online registration systems arn works closely with Stibat, the implementing organization for portable and other industrial batteries, in calculating the number of car batteries and high-voltage (hv) batteries coming onto the market every year. Companies can use the online registration system, myBatbase, to report the quantities of all types of batteries that are brought onto the market. Collection companies and recycling companies can report the number of batteries they recollect and recycle in the online system, MyBatteryBalance, another system also used by both arn and Stibat. In mid-2011, new categories of hv ­batteries were added to myBatbase and a meeting was held to inform importers about it. Decrease of management contributions The management contribution for car batteries and NiMH batteries was 0.07 euros in 2011, and has again been reduced for 2012, to 0.05 euros (excluding vat) per battery. The management contributions for the recycling of lithium-ion batteries will be the same in 2012 as in 2011: 180 euros (incl. 19% vat)  for lithium-ion batteries with a total weight of 100 kg or more. 90 euros (incl. 19% vat)  for lighter lithiumion batteries with a total weight of less than 100 kg. Both rates will apply from 1 January 2012 for lithium-ion batteries in vehicles that are brought onto the market in 2012. Reserve for car batteries The steady growth in the number of hybrid and electric vehicles is causing a sharp increase in the reserve for car batteries. At the end of 2011 the reserve had risen to 133,464 euros, compared with 109,570

euros at the end of 2010. The reserve will continue to grow substantially in the coming years. In the interests of transparency, a balance sheet and a profit and loss account is presented in an annex to this report on page 39. More info www.arn.nl/english/ARN-AutoRecycling/Recycling-of-cars

Outlook for 2012 – arn will pay collection and recycling companies directly. – The Extranet will be expanded further, for example with a News Page. – arn will hold regional meetings for car dismantling companies. – Start implementing a recycling chain for scooters and mopeds. – Secure the iso 9001 certificate for quality management. – arn will strive for closer cooperation with stiba to develop more joint services for the car dismantling sector. – The management contribution for car batteries and high-voltage NiMH batteries has been fixed at 0.05 euros (excl. vat) per battery. – The management contributions for Li-Ion batteries for electric vehicles has been fixed at 180 euros (incl. 19% vat) for batteries with a total weight of 100 kg or more and 90 euros (incl. 19% vat) for batteries lighter than 100 kg.


22 arn Sustainability Report 2011

Integration in the recycling market. arn looks at end-of-life vehicles through different spectacles. Every end-of-life vehicle is the start of a new product or the source of raw materials suitable for a range of applications. The opening of the pst facility is the ideal moment to grab the attention of players on the recycling market, and to encourage joint innovations. arn Recycling

Developments in 2011 – Testing of pst facility in February. – Official opening of pst facility, with final completion of production line in mid-December. – Completion of laboratory for analysis of materials, including oil and PCBs. – eu life+ subsidy of roughly 1 million euro awarded. – Composition of materials from dust removal installation determined. – Start of construction of a second bunker hall. – Certification as Practical Teaching Company for laboratory assistants and process operators. – Research conducted into possibilities for reuse of minerals. – Agreements made with hks Metals for the supply of shredded waste. – Further preparations made for iso 14.001 certification of the environmental management system in 2012.

The production line at arn Recycling in Tiel has been fully operational since December 2011. The start-up proceeded smoothly, especially given the complexity of the plant where shredder waste is transformed into useful material flows using post shredder technology (pst). Minor problems with the drive caused a small number of stoppages. Good outlook Integration in the recycling market is arn Recycling’s message now. The prospects for the supply of shredder waste and for the sale of recovered materials are now good. Actors in the recycling market are already finding their way to the pst facility for partial recycling. The unique project seems to appeal to people. Companies are approaching arn themselves to enquire whether their waste could be transformed into reusable material with pst. In 2011, more than 500 visitors were given guided tours of the plant, including representatives of the automotive industry via rai and bovag, as well as school groups and interested individuals. The expectation is that the 95% recycling target will be within reach in the course 2012, when annual production can be increased from 30,000 tons to 60,000 tons and the plant will hire additional

employees in order to introduce a two-shift operation. life+ subsidy In July 2011, the European Commission granted arn Recycling a life+ subsidy of roughly one million euro. life+ is the eu programme to subsidize the development and implementation of European nature and environmental policy. By helping to meet the 95% recycling target in the eu’s End-of-Life Vehicles Directive, the pst facility can serve as a demonstration project for the rest of Europe. arn can use the life+ subsidy to: – Improve the quality of the end products, for example by removing mineral oils from the mineral stream. – Conduct a feasibility study for the recovery of copper from specific high-density plastic fractions. These fractions are now sent to a metal processing company in Belgium. – Develop more advanced technologies, for example to separate fine copper wire. – Search for optimal sales channels with the highest possible added value, for example for alternatives to thermal recycling for certain plastic fractions.

copper wire From seat heating through to engine management systems, over the past few years, the volume of electronic components in cars has increased massively. People are creatures of comfort, both at home and in their cars. Extra electronic systems, however, mean a huge volume of extra wiring, in many cases consisting of copper wire with a pvc sheath. Even following the shredder process, these materials are difficult to separate because the wires become entangled in the textile. However, in a simple but efficient manner, a new element in the pst facility, the Prall Mill (a sort of rotary system) solves this problem. In the machine, the wires are whirled around and collide against a wall with considerable force, which causes them to slowly roll up. A rolled-up copper wire is subsequently far easier to separate. The final kg of the 8 kg per car is separated in the Prall Mill.


25

“Striving to achieve the maximum”

Hans van de Greef Manager arn Recycling

“We must be ambitious enough to strive to achieve the maximum; we must always want to go beyond the targets set. The most important contribution I can make to that goal in my position at the pst facility is to encourage the people working here to achieve their goals. That is why I try to make sure everyone comes to work every day with a smile on their face, even though they know that some days not everything will go according to plan. The pst facility was established to achieve the 95% recycling target, in particular the 85% material reuse requirement. We have planned a number of innovative projects to increase the proportion of reuse. One example is what we can do with composite sheet material suitable for use for example in the construction industry. If the trial proves successful, we will see a win-win-win situation for arn, for the construction industry and for sustainability as a whole. arn is an active partner in the mobility chain. We are not looking to establish standard supplier-customer relationships. We want partnerships. The need for cooperation is self-evident; after all, simply for placing our products on the market we need partners. We leave the development of new separation techniques to others; our expertise lies in the resultant products. We are constantly in search of new innovations, to allow us to sell our products in even higher-value markets.”

Examples of the reuse of materials: Bricks  Mineral fractions, such as sand, rust and glass, are now stored in German salt mines. Laboratory tests have shown that mineral fractions can be reused in the brickmaking industry. In 2012, a pilot project will be carried out to make and use real bricks. Composite sheet materials  Fibres from the shredder waste of discarded cars can be mixed with waste from the powder coating industry and compressed under high pressure and at a high temperature into robust and waterproof sheets, which could be used for sound screens along motorways or as sleepers under railway tracks. Crusca, a product made entirely from waste materials, has been jointly developed by arn and Holland Composites Innovations and is expected to go into production in 2012. Water filter  A German water authority mixes fibres into sludge to filter water during drainage. The filter cake is burned to recover energy. Plastic granulate  The lightest fraction of plastics is sent to a French plastic compounder, which produces granulate from it that it sells to suppliers of parts for various car manufacturers. Material from dust removal installation The composition of the materials from the dust removal installation was determined in 2011. The conclusion is that they can be used in the cement industry with energy recovery and as a filler, in addition to sand, for cement. This avoids the need for landfilling. Agreements on supply of waste by shredder companies The price that a shedder company has to pay to supply waste to arn was determined by a large scale pilot project to identify the composition of 150 tons of shredder waste. The price is based on the relationship between the selling costs of the shredder companies and the product they deliver. The guiding principle is that the playing field for the sale of shredder waste must be level for all shredder companies that process cars in the Netherlands. A basic price was fixed for shredder waste in 2011. Firm agreements on delivery were made with shredder company hks Metals in 2011. Since then, other shredder companies have also applied for extensive trials.

For the processing of 35 million kg of shredder waste, the facility in Tiel operates 169 machines, of which 84 are transport devices. At maximum capacity, we process twenty thousand kg of shredder waste with a specific gravity of 330 kg/m3 every hour.

The output comprises: two fibre fractions, three mineral fractions, three plastic fractions, various ferrous flows, a range of copper flows and several aluminium flows.

Administration Laboratory Technical services Production workers 30,000 tonnes of shredder waste in every 8-hour shift

Human resources, total 13 fte

169 machines made up of 100,000 components

Accredited practical training company In 2011, arn Recycling earned accreditation as a practical training company for process operators with a diploma in process engineering up to mbo level. The company’s laboratory in Tiel is also certified as a Practical Training Company, which means that arn can train people for nationally certified diplomas. More info www.arn.nl/english/ARN-Recycling/ Process

Maximum energy consumption 4,000 kw

30% fibres 30% plastics 30% minerals 10% dust

Outlook for 2012 – Reguliar production to take shape. – Adjustment of fibre module in the production line. – Doubling of processing of shredded waste to 60,000 tons a year. – Expansion to two-shift operation. – Completion of second bunker hall. – Continued search for best environmental solutions and high-end technologies. – Agreements on supply with new suppliers of shredded waste. – iso 14.001 certification of environmental management system.


26 arn Sustainability Report 2011

Expansion of services for sustainable enterprise. Many companies in the automotive sector already operate sustainably based on their own sense of responsibility for the environment. They can now crown their ­efforts with a certificate. Bringing together the knowledge of arn Recycling Services and the experience of bovag has resulted in the Approved Sustainability Plus scan and the ­accompanying certificate.

arn Recycling Services

Developments in 2011 – Joint venture with bovag to assess the sustainability of car companies. – Integration of the arn Environmental Scan and the scan for bovag’s Approved Sustainability Certificate into the Approved Sustainability Certificate Plus. – Start of implementation, in association with Van Gansewinkel, of an improvement plan for all branches of Care Schadeservice. – Development and introduction, in association with Kroon-Oil, of an ­environmental care plan for all company waste.

arn Recycling Services further enhanced its reputation as an adviser on effective management of waste and energy by garages and car repair companies during 2011. By joining forces with trade association bovag, arn Recycling Services significantly expanded its services relating to sustainable business practices. In the coming year, arn will focus more on car dealers and car repair chains. Environmental and sustainability scans The partnership established between arn and bovag in 2011 means that car companies will in future be able to choose from three types of scan designed to improve their corporate social responsibility: – The arn Environmental Scan shows companies how they currently perform in terms of waste management and energy consumption. – bovag’s scan for an Approved Sustain­ ability Certificate assesses car dealers on environmental aspects of their business, the sustainability of their operations and their human resources policy. – The Approved Sustainability Certificate Plus scan integrates the first twos scans to produce the most comprehensive scan of aspects of corporate social responsibility for car companies.

arn performs the assessments of the companies for all of the scans. Since it was introduced, the arn Environmental Scan has been performed for more than 100 times. In 2011, arn performed 20 scans for the Approved Sustainability Certificate and 58 scans for the Approved Sustainability Certificate Plus. Businesses that are not members of bovag, mainly damage repair companies, can still request an arn Environmental Scan. arn intends to further expand its ­environmental scan to include, for example, alternative energy sources, such as solar panels. Examples of recommended improve­ments: – Replace a 2,500-litre container for business waste that has to be collected every week with a 5,000-litre container. – Replace bottles of liquid that are used when servicing cars with bulk containers with a tap system. – Replace lamps in a car showroom with lighting that uses less energy. – Use sensors to switch lights on and off in rooms that are not used throughout the day, such as meeting rooms and toilets.

potential saving of 20,000 kg CO2 emissions

The arn Environmental Scan examines garages and damage repair companies according to five aspects. One of those aspects is the consumption of energy within the company. The recommendations issued via the Environmental scan often lead to considerable energy savings, good for saving money and good for the environment. On the basis of the scans carried out to date, the average potential saving to be achieved by each company is between 15,000 and 20,000 kg of CO2 emissions.


29

“arn-Environmental scan has taught us to rethink our entire vision on operations” Sven Zipp Manager Operations support Care Schadeservice

Install energy-efficient lighting and sensors

“Car repair company ‘Care Schadeservice’ has enjoyed three years of positive cooperation with arn. We started with a project to investigate the possibilities for making savings, and called in arn to assist us in optimizing that process. arn can provide a mass of specific knowledge for advising our 54 locations in the Netherlands. The arn Environmental Scan has helped us limit waste flows. After completing the scan at all our locations, we identified the ten major sources of waste. Under supervision from arn, we started work on reducing waste volumes. Through its efforts, arn has helped us achieve our sustainability targets. Of course we are able to identify ourselves a number of areas where savings could be achieved, for example better adjusting compressors, reducing the temperatures in paint spraying booths, and other issues relating to the production process. When it comes to building management and dealing with equipment and lighting, however, we are no experts. We can try to reduce gas consumption, for example, but the arn Environmental Scan has taught us to radically rethink our entire vision on operations. That is the added value of arn. Care Schadeservice is the first company in the car repair sector to follow such a deliberate approach to sustainability. Our efforts

have gained us positive media attention and have helped improve the image of the company.”

Use of alternative energy sources such as solar panels

Improvement programme for Care Schadeservice At the beginning of 2011, arn and Van Gansewinkel started implementing plans to make improvements at every branch of Care Schadeservice, a chain of damage repair companies. The plans were drawn up after arn had conducted an environmental scan at all of the company’s repair shops in the Netherlands. The improvements form part of Care’s ambition to reduce CO2 emissions by 20% in three years. arn offers to draw up an improvement plan as a followup to its environmental scan. Environmental Care Plan company waste arn and Kroon-Oil developed and introduced an environmental management plan for all business waste at the beginning of 2011. The plan takes care of the entire organization of waste flows for the customers of the lubricant producer. arn arranges the collection and processing of waste streams for these customers. Batteries and cable trees The market for the recycling of batteries and cable trees was turbulent in 2011. Competition intensified because of the increase in raw material prices. arn is exploring the potential of these materials.

Adjustable skylights for daylight as an alternative for artificial lighting

Replace small liquid packaging sizes with bulk packs

Starter motors and dynamos Research conducted in 2011 showed that relatively few starter motors and dynamos are surrendered with parts that can be reconditioned. Consequently, the return is insufficient for arn to handle these materials. More info www.arn.nl/english/ARN-RecyclingServices/Services

Outlook for 2012 – The arn Environmental Scan will be further developed in relation to energy, for example by encompassing alternative sources of energy, such as solar panels. – Introduction of arn Waste Scan on a ‘no cure, no pay’ basis for companies with a workshop. – A waste flow monitor will be developed to show importers what happens with waste flows during the lifecycle of a car. – A customer satisfaction survey will be held among companies that have assigned the collection and processing of their waste flows to arn. – A joint study will be conducted with trade association focwa to identify what sustainability can mean in the body repair sector. – Use of Google AdWords to attract customers. – The Extranet will be used to publish information for clients, such as volumes of waste, invoices, collection data and newsletters.


30 arn Sustainability Report 2011

Distribute knowledge in the market. Achieving sustainable targets calls for interaction between legislation, economy and tech­nology. Recycling must not result in unnecessary energy consumption or higher CO2 emissions. To make the right choices, ever more complex considerations must be made. With that in mind, together with FFact, arn Advisory has developed the Ecotest.

31

arn Advisory

Developments in 2011 – First assignments carried out for local authorities. – Ecotest applied to recycling chains for batteries and car tyres. – Management structure designed for Scooter Recycling Nederland. – Cooperation agreement concluded with rdw to jointly advise other countries on the Dutch deregistration system. – Attendance at a conference in Russia to help with implementation of recycling activities in the country’s vehicle production chain. – An exploratory study conducted into car dismantling in Turkey for NL Agency. – The processing of shredder waste and a mass balance drawn up for a German shredder company in the pst facility in Tiel.

arn Advisory is arn’s centre of expertise on every aspect of recycling and reuse of raw materials, auxiliary materials and components. It applies the knowledge acquired throughout the organization for consultancy assignments for internal and external clients relating to sustainability in the mobility sector in general, and recycling in particular. There is a growing demand in the market for arn’s specific expertise, which was reflected in a larger number of external assignments in 2011. arn’s expertise can be divided into four categories: 1 Processing, for the recycling of materials 2 Chain management 3 Legislation and regulations 4 Chain modelling and carbon footprint Ecotest for recycling of batteries and tyres The Ecotest quantifies the environmental impact of the chain in relation to the most important indicators and provides information about the relationship between: – Ecology (CO2 footprint) – Raw material retention (recycling) – Economics (costs) arn developed the model in association with the environmental consultancy FFact. The actual data from the chain produced

by the model helps to underpin decisions relating to sustainability. The Ecotest was carried out in two product chains in 2011: Batteries  In association with Stibat, a survey of the battery recycling chain was started. The study will continue in 2012. Tyres  Together with the collective implementing organization, RecyBEM, the Ecotest was carried out for the recycling chain for car tyres. One of the most important conclusions was that the granulation of tyres yields a recycling rate of 80%; this is far more than the 20% recycling rate required by the Car Tyre Management Decree. Furthermore, tyre granulation makes an important contribution to the recycling rate laid down in the End-of-Life Vehicles Management Decree. The Ecotest can be used in many different sectors. It is also a dynamic model, which means it can be adapted fairly easily to new situations. arn and FFact will organize a seminar to increase awareness of the Ecotest in 2012.

Scooter Recycling Nederland rai Vereniging and bovag have set up a system for collecting and recycling scooters and mopeds in an environmentally sound manner. They have established Stichting Scooter Recycling Nederland (srn) to arrange the optimal recycling of all harmful and valuable materials. arn has used its expertise in car recycling to design a management structure for the scooter recycling system. Car dismantling companies, scooter dealers and other recyclers can join srn. An additional advantage of scooter recycling is that it will make criminal activities involving old scooters, such as VIN switching and selling parts illegally, more difficult. There are now a million scooters on the road in the Netherlands. At srn’s request, arn will implement the recycling system, which will start on 1 March 2012. Cooperation agreement between arn and rdw arn and rdw concluded an agreement in 2011 to jointly provide advice to other countries about the Dutch deregistration system. The agreement builds on the existing cooperation between the organizations in the Netherlands, which will be intensified in light of the challenges arising from the large-scale introduction of fully electric cars. Vehicle recycling in Russia As a result of their participation in a trade mission to Russia in 2010, arn and rdw attended a conference in the Nizhny Novgorod region in October 2011. During the conference there was a discussion of how they could help in setting up a recycling system and integrating it in the vehicle production chain in Russia. arn could play a part in its implementation, in particular. acea is an ideal candidate to design a recycling system suitable for Russia. rdw signed a statement of intent for cooperation in helping the Russian vehicle industry to set up and integrate a recycling system in the vehicle chain. One aspect of this will be to find a solution for the problem of abandoned car wrecks. rdw will recruit arn for its specific expertise in the field of vehicle recycling.

thousand scooters Scooter Recycling Nederland (srn) There are now more than one million scooters in the Netherlands. Every year, approximately ninety thousand new scooters are sold. The number of endof-life scooters is also rising; the current rate is around twenty thousand a year. To ensure the environmentally-responsible recycling of these machines, the rai Association and bovag established the srn organization. Demonstration unit for car dismantling in Turkey arn has conducted a survey into car dismantling in Turkey for NL Agency. On the basis of the findings, the agency has issued a tender for the establishment of a model car dismantling unit in Turkey. arn will supervise the design of the model unit on behalf of NL Agency during 2012. Sharing knowledge of pst In 2011, arn investigated the processing of a German shredder company’s shredder waste in the pst facility in Tiel and prepared a mass balance. This assignment reflected arn’s strategy of sharing knowledge about the potential of processing with post shredder technology with external parties. S_Life: sustainability of the car industry in Europe Advisory is taking part in the European Commission’s S_Life-project, the purpose of which is to increase the sustainability of the car industry in Europe. arn is working in a cluster with sister organizations from France, German, Italy and Slovenia. The S_Life project will promote closer cooperation between European cluster organizations in the search for new scientific, economic and structural solutions for a ‘greener’ automobile chain in every phase of the lifecycle. The project will start in 2012 and last three years.

Rail sector In an assignment for the rail sector in 2012, arn Advisory will use knowledge and experience from the automotive sector to explore the various possibilities for a management structure for waste flows. Recycling of mineral fraction In 2011, the mineral fraction that is released from the shredded waste in the pst facility was still being stored in German salt mines to prevent subsidence. arn is determined to find more sustainable applications for the mineral fraction. arn Advisory will conduct further research into this subject in 2012. More info www.arn.nl/english/ARN-Advisory/ Our-consultants

Outlook for 2012 – Further application of the Ecotest in new fields. – Seminar with FFact to increase awareness of the Ecotest and its possible applications. – Supervision of the design of a car dismantling model unit in Turkey. – Shredder test with the pst facility in the recycling chain. – Start of participation in three-year European S_Life-project aimed at making the car industry in Europe more sustainable. – Research into high-value sales opportunities for the mineral fraction from the pst facility. – Carrying out of an assignment for the rail sector.


32 arn Sustainability Report 2011

Ecotest

Expertise in sustainability Ecotest was developed by a team of consultants and thus provides a wealth of expertise: – 15 years of experience with lca studies, chain analyses and economic analyses. – Much knowledge of and experience with the waste and recycling market. – Software based on lca software simapro 7. – Standard database Ecoinvent available – Collaboration with various universities. – Project implementation according to iso 14040.

Focus on practice The test is not an academic study but a practical tool based on practical information from the chain. Ecotest only makes use of the most essential indicators to underpin any decision. With its tool, arn hopes to help companies better understand the huge range of environmental indicators commonly used in a lifecycle analysis (LCA) study. The Ecotest fully complies with the iso standards applicable for carrying out lca analyses. Ecotest differs from a static lca study or a CO2 calculation in that it is a dynamic model. Once all data from a production chain have been entered, changes can still be made to the model, thereby making it possible to calculate new situations.

Sustainability tool Increasingly, businesses are being confronted with sustainable business practice. The preservation of raw materials and climate change are important catalysts in this process. Within product chains, choices can be made that will have an environmental impact. Despite all the CO2 tools, ladders and labels developed over the past few years to encourage sustainable business practice, there are still very few methods capable of quantifying and weighing the full impact of the chain. The underlying question is how throughout its production chain – from the extraction of raw material through to production, consumption and disposal – a business can improve its environmental impact. Ecotest provides the answer. Using Eco­test, the impact of production chains can be tested and a range of chain options quantified. This test brings together our expertise on complex chains and knowledge of climate, raw materials, recycling and economy. Ecotest underpins decisions With its Ecotest, arn offers a ‘decision support tool’ for policy makers wishing to underpin decisions relating to sustainability with practice-based facts about the production chain. The system enables the user to assess an entire chain for the following aspects: – Ecology (CO2 footprint and other indicators such as toxicology) – Raw material preservation (recycling) – Economics (costs) Ecotest makes the impact of the production chain transparent by weighing up these three elements against one another.

Valuable for lifecycle The idea to develop the Ecotest arose from a CO2 study carried out by FFact and arn Advisory for the recycling chain for end-of-life vehicles. The aim was to gain an insight into the chain, and in that way make arn a better discussion partner for government authorities and other stakeholders. It turned out that merely optimising CO2 savings was not enough. After all, as well as emission avoidance, arn also has to deal with recycling percentages imposed by legislation and cost limits imposed by manufacturers and stakeholders. The eventual answer to all these challenges was the Ecotest. It then turned out that other parties were interested in the Ecotest tool. arn has formulated the ambition of helping these companies reach a higher position on the various ecological performance ladders like the popular CO2 Performance ladder and the csr Performance ladder. Ecotest is a valuable tool in every stage of the lifecycle.

Ecotest Identifying the approach – Problem analysis – Customer wishes – Determination of chain and options – Translation of customer wishes

Assessment

– System definition – Drawing up process model – Data collection – System choices – Establishing calculation model – Validation

Analysis

– Effect assessment – Translation of data into CO2 effect, raw material preservation, cost efficiency – Interpretation and evaluation

Presentation

– Conclusions – Recommendations – Reporting

Implementation and service – Tool made available for customer use – Data updating – Calculating new chain options

m 3 of air per hour A dust removal installation is responsible for extracting the dust from the factory process and our production hall in Tiel. The machine 3 in fact refreshes a staggering 200,000 m of air every hour. As a result, dust emission into the outside air is eradicated entirely, and we keep our working environment clean, to boot. Even the dust is subsequently recycled.


35

Appendix

Financial report 2011 Auto & Recycling Foundation 36 Goods flow management procedures 38 Financial report 2011 arn Management Plan car batteries 39 Vehicle fleet development 40 Independent assurance report 44

“Ecotest led to better organization of collection and recycling of batteries” Jan Bartels Managing director Stibat

“For the collection and recycling of batteries, our focus is increasingly on the reuse of materials, for example steel, zinc, manganese and nickel. Thanks to the Ecotest, we have moved on to the next level in sustainability, by identifying the recycling possibilities for the various flows, and the related costs. Most aspects of battery recycling still cost money.  The Ecotest has helped us weigh up the climate effects, raw material savings, toxicity or environmental burden and costs. The resultant parameters have helped us to better organize the collection and recycling of batteries. Some of the questions that emerged were how we can improve the servicing of the 22,000 collection points, how our five trucks can be used in the most efficient way for the collection of batteries in the Netherlands, and whether a smarter approach would be possible. The Ecotest helps provide the answers. Demand for recycling capacity is set to expand over the years ahead. The Ecotest makes it possible to assess the sustainability of businesses active in the recycling market. Such assessment is also vital because at some point we will have to look beyond the boundaries of Western Europe. Together with our colleagues in Belgium and Germany, we have already taken the initiative of establishing a European sector organization. Eucobat will be launched in April 2012 with fellow organizations from

eleven countries, and will offer an excellent platform for rolling out the Ecotest across Europe.”


36 arn Sustainability Report 2011

37

Financial report 2011 Auto & Recycling Foundation Appendix

The consolidated balance sheet and the consolidated profit and loss account include the figures for Auto & Recycling Foundation, arn Holding b.v., arn Auto Recycling b.v., arn Recycling b.v., arn Recycling Services b.v. and arn Advisory b.v. The figures are taken from the annual financial statements of Auto & Recycling Foundation and ARN Holding B.V., which were audited by kpmg Accountants n.v.

balance sheet total

Consolidated balance sheet as of 31 december

Consolidated profit and loss account

(after appropriation of result, in euro)

(in euro) Totaal 2011

Totaal 2010

10 Income from waste disposal fee

32,236,831

11 Income from investments

12 Realized changes in the value of investments

Assets 1

Intangible fixed assets

41,496,933

2 Financial fixed assets

32,539,314

33,307,657

Total

74,036,247

3 Stocks

150,459

55,152

4 Receivables

3,647,424

2,949,641

5 Liquid assets

15,945,086

31,907,237

Total

Total assets

operating income

19,742,969 93,779,216

65,544,488

34,912,030

100,456,518

Liabilities

Totaal 2011

Totaal 2010

23,311,481

11,909,903

690,644

991,884

-740,238

-63,206

13 Non-realized changes in the value of investments

-598,693

905,815

14 Other income

3,061,301

2,425,699

15 Interest and similar income

255,521

845,106

Total operating income

15,580,970

19,525,438

2,350,985

2,441,694

18 Wages and salaries

2,655,516

2,105,297

19 Social insurance contributions

722,291

513,381

20 Depreciation of tangible fixed assets

4,637,223

4,290,296

21 Other business expenses

266,008

130,110

22 Interest and similar costs

13,617

14,301

Total operating expenses

26,226,610

Operating result

- 246,594

7 Waste disposal fee fund

8 Long-term liabilities

11,209

11,209

9 Short-term liabilities

12,448,463

18,879,172

Total

93,764,695

100,441,997

23 Tax on result

Total liabilities

93,779,216

100,456,518

Result after tax

-246,594

Notes to the 2011 financial report 1  Intangible fixed assets arn Auto Recycling b.v. lent drainage installations to 220 (2010: 217) affiliated vehicle dismantling companies. On 3 March 2008, arn Recycling b.v. purchased the land from the Municipality of Tiel and started construction of the pst facility. The building and infrastructure were completed in May 2009. Evaluation of the possible processes led to a definitive choice: the v w-SiCon process. Following completion of the building and infrastructure, a start was made on installing and building the processing line. The facility went into operation at the end of 2011, and a start has now been made on construction of the 2nd bunker hall. Also in 2011, an erp system was purchased. This system will replace the current system in 2012.

81,305,023

81,551,616

2  Financial fixed assets Auto & Recycling Foundation has delegated the management of the investment portfolio to a single asset manager. The funds are invested in both bond and share funds. The asset manager has been given a defensive mandate, characterized by investment in bonds and shares. The risks connected with investment are therefore as limited as possible. At the balance sheet date, 32,539,314 euros (2010: 33,307,657 euros) was invested in shares and bonds. 3  Stocks Stocks consist mainly of spare parts, laboratory parts and trade goods valued at acquisition price, namely purchase price plus additional costs. Any loss in value as at the balance sheet date is taken into account in the valuation of stocks.

14,521

4  Receivables The receivables consist mainly of interest to be received and value-added tax that can be reclaimed. 5  Liquid assets The cash of the Auto & Recycling Foun­ dation, arn Holding b.v. and its subsidiaries held at ing Bank comes under the notional ‘pooling arrangement’. 6  Equity capital The Foundation’s capital has been paid up by the shareholders rai, bovag, focwa and stiba. Each organization has contributed a proportional share to the capital. 7  Waste disposal fee fund The waste disposal fees received are deposited in the fund. The fund is used as a reserve for both anticipated and unforeseen future expenditure.

29,020,517

16 Cost price of sale

14,521

17,015,201

17 Costs of outsourced work

Total

25,980,016

6 Equity capital

14,521

14,521

8  Long-term liabilities The affiliated vehicle dismantling companies have deposited a guarantee for the use of logo signs. As at 31 December 2011, 247 (2010: 251) vehicle dismantling companies had an affiliation agreement. 9  Short-term liabilities The short-term liabilities item covers the income from consumers/dealers who wanted to import their vehicle via the rdw testing stations. The Foundation had to receive the waste disposal fee before the rdw could issue the registration number. Since 1 January 2007, these vehicles have been exempt from paying the waste disposal fee. Advance payments and monies received before 31 December 2006 will not lead to payment of a waste disposal fee. There is a procedure that consumers can use to claim a refund on the payment. In addition, the procedure automatically

covers duplicate payments and excessive payments. Income that is not reclaimed or cannot be repaid because there is insufficient information, is released in favour of the result after 5 years. In 2011, the remainder of this item of fully prepaid or excess paid waste disposal fee was fully released. arn Holding b.v. forms a fiscal unit for corporation tax with arn Auto Recycling b.v., arn Recycling Services b.v., arn Recycling b.v. and arn Advisory b.v. This fiscal unit has a consolidated off-­ settable loss. Current account agreements have been concluded with the importers. The waste disposal fee owed is charged each month to the current account. Interest is paid on the outstanding balance each year at the 12-month Euribor rate. The ‘liability to vehicle dismantling companies for materials’ item shows the premium still to be paid to the vehicle

- 12,005,316

-12,005,316

dismantling companies for dismantling, collection and processing. This liability is linked to the outstanding material balances of each company. Outstanding materials balances represent the materials that are still in the end-of-life vehicles that have been registered for dismantling, are in the existing packaging or have already been disposed of but not yet be claimed for. The liability for material is calculated on the basis of the prevailing rates in 2011. 10  Income from waste disposal fee In 2011, waste disposal fees were collected for a total of 603,000 (2010: 500,000) newly registered vehicles.


38 arn Sustainability Report 2011

Financial report 2011 ARN Management Plan car batteries

11  Income from investments The income from investments in 2011 fell sharply as compared to 2010, due to poorer market conditions.

16  Cost price of sale The cost price of sale relates mainly to the cost price of purchase, collection, lease of packaging and storage of materials.

19  Social insurance contributions From the moment of entering service, employees participate in the collective pension scheme.

12  Realized changes in the value of investments A loss was made in 2011 due to changes in the investment portfolio.

17  Costs of outsourced work In 2011, there were on average 247 affiliated vehicle dismantling companies, which between them dismantled 206,150 end-oflife vehicles (2010: 215,975). The companies are paid premiums for dismantling, collection and processing. The maintenance and service of the drainage installations is subcontracted to the companies that installed the systems. Some of the packaging is leased from the collection companies; the rest is the property of the Foundation. This item includes the leasing costs and the costs of maintaining the Foundation’s own packaging. The rdc supplies the data for the collection of the waste disposal fee and for monitoring the vehicles registered in orad.

20  Depreciation of tangible fixed assets This item relates mainly to the depreciation on the drainage installations that arn Auto Recycling b.v. has lent to the vehicle dismantling companies and the now commissioned arn Recycling b.v. facility. The depreciation charges include any book profit or loss on the sale or return of the installations and any other changes in their value.

13  Non-realized changes in the value of investments The investment portfolio is valued at market value as at 31 December 2011. The difference compared to the purchase price, or the market value on 1 January 2011, is recognized as the non-realized change in the value of investments. In 2011, the non-realized change in the value of investments was negative. 14  Other income Other income consists mainly of the proceeds from the sale and purchase of materials and consultancy for third parties. 15  Interest and similar income The interest consists mainly of the interest on deposits and savings. The fall in relation to 2010 is due to a reduction in liquid assets in 2010.

39

18  Wages and salaries arn’s workforce consists of 43.6 ftes (2010: 42.6 ftes). The employees perform work for the Foundation, its subsidiaries and external parties. arn Holding b.v. has a Supervisory Board comprising five members.

balance sheet total

Balance sheet as of December 31 (after appropriation of result, in euro)

Total 2011

Total 2010

Assets 1

Accounts receivable

2 Receivables

Total

72,595

39,597

60,869

69,973

133,464

109,570

Total assets

133,464

109,570

21  Other business expenses Other business expenses account for the accommodation costs (i.e. the rent, service and maintenance) of the offices at Entree 258 in Amsterdam Zuidoost.

Liabilities

22  Interest and similar costs Interest is paid on the balance held by the importers at the 12-month Euribor rate.

Group equity

Total

- ‑

-

-

3 Reservation car batteries

Total

133,464

Total liabilities

23  Tax on result arn Holding b.v. and its subsidiaries form a fiscal unit for the purposes of corporation tax.

109,570

133,464

133,464

109,570 109,570

operating income

Profit and loss account (in euro)

Goods flow management procedures Explanatory notes Table 1 on page 17 shows the volumes of arn materials received and accepted from affiliated collection companies by contracted recycling companies. These quantities are based on reports received from contracted recycling companies concerning the quantities of arn materials received and accepted. The arn materials originate from the dismantling of end-of-life vehicles registered in orad by car dismantling companies affiliated to arn. These car dismantling companies receive a premium for each item of dismantled material. In the framework of this goods flow management process, Auto & Recycling Foundation has established a system of administrative organization and internal

management procedures with a view to guaranteeing that: – all premiums paid to car dismantling companies are justified, and – all materials offered by car dismantling companies are collected by contracted collection companies and accepted for processing by contracted recycling companies. This system of administrative organization and internal management procedures primarily consists of the following components: – Physical quantity and quality inspections at affiliated car dismantling companies, collection companies and recycling companies. – Implementation of a mass balance inspection during which the quantities of arn materials reported by the car

dismantling companies, collection companies and recycling companies to arn are monitored and matched. – Maintaining and analysing material records for each car dismantling company on the basis of orad registration, premium payments and physical material quantity inspections at car dismantling companies. Throughout 2011, kpmg Accountants n.v. investigated the existence and operation of this system of administrative organization and internal management procedures, and the quantities of arn materials accepted for processing, as reported in table 1. For the report from kpmg Accountants n.v. in respect of its activities, please refer to the independent assurance report on page 44.

4 Income from management contributions

Totaal 2011

Totaal 2010

95,997

108,998

Total operating income

95,997

5 Costs of outsourced work

72,103

67,685

6 Dotation reservation management contributions

23,894

41,313

108,998

95,997

108,998

Operating result

-

-

Tax on result

-

-

Total operating expenses

Result after tax

Notes to the 2011 financial report Management Plan car batteries The figures on the balance sheet and profit and loss account of the Management plan for car batteries are derived from the annual financial statements of arn Auto Recycling b.v.

1 The claim against debtors has a term of less than 1 year. 2 The receivables item consists mainly of management fees to be received. 3 Reserve for car batteries recycling costs still to be incurred. 4 The income from the management fee

- -

consists of collected management fees per car battery type. 5 Costs of outsourced work consist of costs of myBatbase, communication and activities of arn. 6 The increase in the car batteries reserve in 2011.


40 arn Sustainability Report 2011

Explosive rise in exports of used cars forms major cause for concern. By leakage flows we mean the end-of-life vehicles that disappear from the chain of environmentally-responsible processing. For more than 15 years, arn has been responsible for the recycling chain, which is why it closely monitors this development. Leakage flows represent a substantial financial loss to the sector, as well as generating an unwanted burden on the environment.

Vehicle fleet development

2011 saw an explosive rise in the number of exported used vehicles. Total exports amounted to 337,245 used vehicles, 35% more than in 2010. arn views this as a very worrying development. In 2011, in total 613,457 new passenger cars and light commercial vehicles were sold. This figure itself is 15% higher than the total achieved in 2010. The largest rise in new sales took place in the first five months of the year. Developments in the vehicle fleet are important to arn, since they form a source of information on how many end-of-life vehicles will have to be disposed of over the coming years. arn is broadly responsible for the recycling of all four-wheeled vehicles that may be driven by a holder of a B driving licence and which, fully laden, represent a maximum weight of 3,500 kg. The information on vehicle fleet development in this chapter refers to that part of the vehicle fleet. Vehicle fleet At the end of 2011, there were in total 8.9 million registered vehicles on the road in the Netherlands. Of those, 8 million fall into the category passenger cars, and 900,000 are light commercial vehicles. The 100,000 vehicle rise as compared to the end of 2010 consists mainly of new registrations via the Dutch importers. The total number of

vehicles imported from abroad in 2011, at 86,679, represented a 12% fall as compared to 2010. Veteran cars The average age of the vehicle fleet in 2011 was 8.9 years, slightly higher than the 8.8 years recorded in 2010. At the end of 2011, there were 251,373 ‘veteran cars’ on the road. This represents a 13% rise as compared to year-end 2010. ‘Veteran cars’ refers to the category of vehicles aged 25 years or older, for which no road tax has to be paid. Market share Of the total number of end-of-life vehicles dismantled in 2011, 206,150 were processed via arn, representing a market share of 82.6%. In 2010, the arn share was 86.7%. A number of reasons can be put forward for this considerable shrinkage in market share, namely: – Increase in dismantling under own management. The number of vehicles deregistered in 2011 as having been dismantled under own management rose from 7,573 in 2010 to 10,151 in 2011. – Increase in orad registrations by businesses also holding a permit for the scrap metal trade.

End-of-life vehicles in the Netherlands When it comes to waste disposal, things are well organised in the Netherlands. As a densely-populated country, it is essential that waste be rapidly and efficiently processed into new raw materials. To achieve that goal we have an excellent infrastructure, with a network of vehicle dismantling companies that offers national coverage. The situation in Turkey, for example, is completely different. That country has a far larger surface area, and is less densely populated. The size difference makes it impractical to establish a fully-equipped vehicle dismantling company every 60 km. Instead, you ‘simply’ hand in your end-of-life vehicle to the local garage, or even the nearest petrol station. The end-oflife vehicles are then transported onwards to a number of large dismantling and processing stations. In 2012, arn will be helping to establish a demonstration company. By way of example to others, this company will be equipped with the very latest technology. Visitors from all over Turkey can then learn about the most efficient and environmentally-friendly techniques for dismantling and recycling cars.


43

cars on the road

At year end 2011, arn had signed cooperation agreements with 247 vehicle dismantling companies, (2010: 251).

“Helping businesses understand their opportunities for sustainable practice” Marlies Meijer-Willems Consultant arn Advisory

“a rn has a great deal of knowledge about recycling, materials and chain management. By sharing that knowledge with other sectors, we can contribute to improved sustainability. Just one practical example is organizing an Ecotest. Using the Ecotest, the company in question gets to know all the ins and outs of its own chain and knows for example where each activity takes place. In that way, we help businesses better understand their own processes and the opportunities they have to improve sustainable practice. One of our clients for the Ecotest is Stibat, the organization responsible for collecting used batteries. I was trained as a chemist and have also studied industrial ecology. arn is a company that offers me the opportunity to employ a multidisciplinary approach, something that perfectly matches my background. Take for example the training programmes organized by arn to help vehicle dismantling companies safely and responsibly remove batteries from hybrid and electrical vehicles. The course not only considers the technical aspects but also encourages the participants to examine the applicable rules and regulations.”

Dismantling In 2011, a total of 249,607 end-of-life vehicles were dismantled, as compared to 249,008 in 2010. The difference is therefore negligible. The average age of the dismantled endof-life vehicles, at 16.7 years, was slightly higher than in 2010, when the average age was 16.6 years. In 2011, for the second year, hybrids and electrical cars were registered for dismantling. In total, 36 of these different vehicle types were registered for dismantling. In 2010, 21 vehicles of this type were dismantled. Export The number of exported cars rose considerably in 2011 to 337,245 cars, as compared to 250,245 in 2010; an increase of 35%. The average age of exported cars was 11.1 years, six months older than in 2010. One explanation for this untrammelled growth in used car export is the export of three and four-year old cars. Owners selling these cars profit from the refund on the bpm purchase tax on passenger cars. In 2011, the export of four-year old cars tripled to 34,875 vehicles, as compared to a total of 11,743 in 2010. arn cannot provide an explanation for the remaining share of the 35% rise in the number of used vehicles exported in 2011. Demand for used vehicles in the export countries has certainly not risen to such a spectacular extent that it could explain the huge rise in export numbers. Analysis of the figures suggests one obvious conclusion: a large number of vehicles is registered for export without ever actually leaving the country. These leakage flows have a negative influence on the environment, since the vehicles in question are dismantled without any supervision by the competent authorities.

Vehicles on the road Number 70,000 60,000 50,000 40,000 30,000 20,000 10,000 ≥25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 Age in years

2009

8

7

6

5

2010

4

3

2

1

0

2011

end-of-life vehicles recycled by arn

Dismantling and export by age 2011 Number 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

1

2

2

Age in years

4

5

6

7

8

9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ≥25 Export

Dismantling


44 arn Sustainability Report 2011

To the board of Auto & Recycling Foundation Independent assurance report

Assignment The board of Auto & Recycling Foundation asked us to provide reasonable assurance regarding the existence and operation of the internal management procedures operated by the organization in respect of the goods flow and the payment of premiums, as described in outline on page 38 of the Sustainability report 2011. The board of Auto & Recycling Foundation also asked us to provide reasonable assurance regarding the figures contained in table 1 on page 17 of the Sustainability report 2011 concerning the quantities of materials collected and accepted for processing, in accordance with the criteria as described on page 38 of the Sustainability report 2011. Management’s responsibility The management of the foundation is responsible for the existence and operation of the internal management procedures in respect of the goods flow and the payment of premiums in accordance with the internal management procedures, as described in outline on page 38 of the Sustainability report 2011. The management of the foundation is also responsible for the accuracy of the figures contained in table 1 on page 17 of the Sustainability report 2011 in accordance with the criteria as described on page 38 of the Sustainability report 2011. Auditor’s responsibility We have conducted our examination in accordance with Dutch law, including Standard 3000 “Assurance engagements other than audits or reviews of historical financial information”. Our assurance engagement is aimed at obtaining reasonable assurance concerning the existence and operation of the internal management procedures of Auto & Recycling Foundation during the course of financial year 2011 in respect of the goods flow and the payment of premiums as described in outline on page 38 of the Sustainability report 2011. This means that we have issued no judgment on the adequacy of the internal management measures.

Our assurance engagement is also intended to obtain reasonable assurance that the quantities of material collected and accepted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, are correctly reproduced in all material respects, in accordance with the criteria as described on page 38 of the Sustainability report 2011.

Furthermore, in our opinion, the quantities of material collected and submitted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, are correctly reproduced in all material respects, in accordance with the criteria as described on page 38 of the Sustainability report 2011.

The principal procedures for conducting our assurance engagement comprised: – Assessing the existence and operation of the internal management measures in respect of the goods flow and the payment of premiums in accordance with the description on page 38 of the Sustainability report 2011 by means of interviews with the officers responsible for the goods flow management and the payment of premiums and by means of observations aimed at assessing the operation of the procedures according to the described outline. – Determining that the quantities of material collected and accepted for processing, as contained in table 1 on page 17 of the Sustainability report 2011, throughout 2011, are correct in all material respects in accordance with the criteria as described on page 38 of the Sustainability report 2011, through a combination of interviews with the officers responsible for the measurement and registration, analytical review of the figures, association testing and substantive testing. We performed substantive testing (at random) based on internal and external data.

kpmg accountants n.v. R.P.A.M. Engelen ra

In our opinion, the assurance information we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the internal management procedures in respect of the goods flow and the payment of premiums in financial year 2011, in all material respects, were in place and operated in accordance with the description on page 38 of the Sustainability report 2011.

’s-Hertogenbosch, 24 May 2012


arn is in charge of the recycling of end-of-life vehicles in the Netherlands. On behalf of the manufacturers, arn is responsible for achieving 95% recycling of cars by 2015. The pst facility plays an essential role in achieving that recycling percentage. With a focus on continued progress, arn is helping to ensure a sustainable future. arn Sustainability Report 2011

focus on sustainability For the production of new goods, it is essential that the raw materials comply with certain quality requirements. This also applies to materials produced from waste. Compliance with the customer’s specifications is an absolute requirement for our pst facility. All material flows produced in the facility are therefore analysed in our own laboratory, both chemically and in terms of their composition.

Profile for Martijn Boelhouwer

Sustainability Report 2011  

Sustainability Report 2011

Sustainability Report 2011  

Sustainability Report 2011

Profile for arnbv
Advertisement