Vanheede Environment Group - Sustainability report 2020-2021

Sustainability report 2020-2021

Edition: VANHEEDE ENVIRONMENT GROUP nv Dullaardstraat 11, 8940 Geluwe www.vanheede.com Responsible editor Kim Delvoye: p.a. Dullaardstraat 11, 8940 Geluwe Contact Kim Delvoye, Marketing & Communication Manager You can send your reaction regarding this edition to kim.delvoye@vanheede.com Special thanks to Audrey-Laure Verhost, Assistant Marketing & Communication Dirk Devlieger, photography CSR expertise and counselling © slidingdoors Concept and realisation © www.magelaan.be Print Zquadra

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About Vanheede

About our projects

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page 26 About our projects

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Preface About Vanheede Environment Group Key figures Recognition for our efforts Business model Integrated waste management Vanheede Environment Group 13 business units organised into 2 strategic axes In the spotlight: safe collection and processing of special and hazardous waste How do we make a difference?

Our strategy: sustainable, innovative and customer-oriented Applying 50 years of experience to the circular economy Safeguarding our future with respect for today’s world Five innovation programmes for rolling out our strategy Staying relevant in a rapidly changing digital world Impact awareness, targeted solutions

28 PASSION 29 Why innovate?

30 Innovation in practice 32

33 34 35 36

PLANET The best destination for your waste Maximum material valorisation Sustainable energy production Reducing our ecological footprint

38 PEOPLE 39 A culture supported by our values 41 Working to keep our workers happy 42 Working together to create a safe working environment

44 PROFIT 45 Infrastructure of the future 46 Sustainable partnerships

48 PRIDE 49 Committed to improving customer satisfaction 50 Cooperation with certified suppliers, contractors and processors 51 Smarter is also more sustainable 51 Sale of high-quality end products 52 Our sustainable commitment, in black and white 53 Customer reviews demonstrate satisfaction

54 Our values in practice Values work

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Contents

About our results page

56 Financial results 2020

60 Measuring points

62 Sustainability report: approach 62 Balancing stakeholder and company interests 63 Scope and approach

64 GRI reference index

About this report

This is the sustainability report of Vanheede Environment Group, with registered office at 1080 Brussels, Beekstraat 25, Belgium. The report has been compiled according to GRI standards: Core option. This report pertains to 2020; it is our intention to publish updates annually. Sustainability reports for other years can be found at www.vanheede.com/en/corporate-sustainability/.

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1 About Vanheede

Preface Towards a circular world, in a sustainable way As our common objective, and the purpose of our business, this principle was the crux of our efforts to help our 800 employees navigate the very unusual developments that took place in 2020. Last year placed significant burdens on our staff and our clients. Having to rapidly adapt to changing working conditions and adhere to more stringent regulations and more complex waste streams were only two of them. By remaining true to our values and keeping lines of communication open, we made sure that we never lost sight of that common objective.

To ensure that the crisis caused by the pandemic did not in turn cause a sanitation crisis, the waste and recycling sector was quickly designated as essential. I am deeply impressed by the strength and flexibility of our personnel in keeping our services operational.

We shifted into a higher gear, accelerating plans for digitalisation and automation. Our office staff succeeded in working remotely. We accelerated process automation with a view to improving both sorting and the quality of end products, an important step towards a circular economy. Our drivers remained on call to collect waste and transport it to existing and new processing sites.

Our customers have also been notably flexible throughout the crisis. With the help of our new digital technologies, we are more committed than ever to ensuring a positive customer experience and creating the greatest possible added value for our customers.

This year, more than ever before, sustainability and continuity went hand in hand.

David Vanheede, CEO Vanheede Environment Group

Ghent Bruges

About

Antwerp

Vanheede Environment Group?

(Oostkamp)

Asse Roeselare (Rumbeke)

Genk Wervik (Geluwe)

BRUSSELS Paris

Lille

(Marquettelez-Lille)

Wanze

(Vinalmont)

Lens

(Billy-Berclau)

Luxemburg (Rodange)

Mouscron (Dottignies)

Mons

(Quévy)

Arlon

(Messancy) Head office Logistics centres Recycling companies

Vanheede Environment Group is a sector leader in the management of regular, special and hazardous waste in the Benelux region and northern France. For our customers in Belgium, France, the Netherlands, Germany, Luxembourg and the United Kingdom, we work constantly to determine the best destinations and most sustainable solutions for their waste products.

Besides offering an extremely extensive range of waste collection services, Vanheede Environment group also has a wealth of experience in sorting and processing waste and in valorisation technologies. With our pro-active approach to waste processing, we are a true pioneer in the circular economy.

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Key figures 2020

employees

810

94,62% recycling and valorisation

2.247

904.844

waste streams

of waste treated

tonnes

160.118 kEUR

consolidated turnover

Recognition 507.889 tonnes

53.144 mWh

15.139

2,6x

for our efforts

new raw materials

Certification in Quality, Environment, Safety, Corporate social responsibility and Strategy!

of green energy produced

households supplied with green energy

energy output equivalent to 2,6x consumption

After previously winning the EcoVadis silver medal for Corporate Social Responsibility (CSR) in 2018, Vanheede Environment Group saw its efforts rewarded with a gold medal in 2021. When choosing award recipients, EcoVadis examines areas in which businesses could achieve the most impact by improving their environmental and social practices. Its evaluation covers 21 criteria in four areas: the environment, social responsibility and human rights, ethics, and sustainable purchasing. This gold medal puts Vanheede Environment Group in the top 5% of businesses with the highest ranking for CSR management. We are justifiably proud!

Kim Delvoye, Marketing & Communication Manager

The Best Managed Companies label is a valuable recognition of the efforts made on a daily basis by our personnel, our customers and others involved in our work. The label confirms to us that we are leading our sustainably growing company on the right path, with the right people in place and the right objectives in front of us. The Best Managed Companies coaches asked us challenging questions about the impact of the pandemic and our digital and sustainability strategies, and inspired us to revise our thinking regarding our role in society.

This critical reflection is an essential part of gaining insight together. It helps us to communicate more efficiently about our vision and mission, our strategies and our innovative programmes for the future. And it enables us to attract and keep the right customers, suppliers and talented personnel.

David Vanheede, CEO Vanheede Environment Group

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1 Raising awareness

Raising awareness among specific customer groups helps us highlight the importance of efficient and environmentally responsible waste management. The emphasis is on sorting at the source, which enables us to extract the highest quality raw materials.

Extracting non-recyclable waste

Non-recyclable materials are delivered to processors for further treatment. Some non-recyclable waste can be landfilled for the purpose of energy recovery.

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2 Engaging in partnerships

We constantly seek out potential new partners, ranging from inter-communal associations to other businesses in the waste management chain.

Establishing partnerships enables us to improve and enhance infrastructure, impact and process efficiency.

Sale of recycled materials

High-quality materials and products are sold to waste processors, manufacturing businesses and other customers.

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3 Collecting and separating waste

Collection includes hazardous and non-hazardous* waste, with a focus on industrial waste. Associated activities are waste sorting and transport to processing sites. * All types, with the exclusion of explosives, animal remains and radioactive waste

Recycling waste

R&D & innovation are geared to achieving the highest possible degree of recycling as well as the extraction of high-quality materials and products.

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Business model Integrated waste management ENVIRONMENTAL SERVICES Vanheede is committed to the concept of integrated waste management in a circular system.

We are active across the entire waste spectrum, from collection, sorting and separation to treatment, recycling and disposal. In practice, this means that our environmental group consists of a number of business units positioned along two strategic axes.

RECYCLING

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Collecting and sorting regular, special and hazardous waste

Sorting at the source will always be the norm, both for our customers and for us. As regulations governing waste management become increasingly more stringent, we must continually evaluate our collection, sorting and recycling methods, yet always keep the focus on the customer. To keep up with their expectations we need to develop collection processes for smaller-volume recycling streams, make use of the latest technological advances and continue to innovate in a rapidly changing landscape.

ENVIRONMENTAL SERVICES

Caroline Vanheede, Executive Director Environmental Services

RECYCLING Transforming waste into energy and/or raw materials

Your waste is put to the best use – we are committed to ensuring so. We produce raw materials, alternative fuels and renewable energy in our own recycling companies. And we make a difference by doing our utmost to ensure that our products are of consistently high quality and our production volumes are continuous. To this end, we invest in perfecting our existing activities and seeking out new recycling techniques.

Evelyne Decrans, Executive Director Recycling

Vanheede Environment Group

13 business units organised into 2 strategic axes Vanheede Environmental Logistics 1 Commercial & industrial waste management 1 Recycling centers

Vanheede Environmental Services 1 Special waste management 1 Projects, support & interventions

Vanheede Propreté 1 Household waste collection

Vanheede Recycling Center 1 Commercial & industrial waste management 1 Recycling center

Vanheede Environnement (FR) 1 Commercial & industrial waste management 1 Recycling center 1 Special waste management

Vanheede Luxembourg 1 Commercial & industrial waste management

1 Landfilling 1 Power- production

1 Plastic recovery facilities

Vanheede Plastic Recovery

1 Polymers and compounds

Vanheede Polymers & Compounds

Digestion

1 Biomass 1 Composting

1 Alternative fuels

Vanheede Biomass Solutions

Power production

Vanheede Alternative Fuels

Unpacking

Vanheede Landfill Solutions

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In the spotlight

safe collection and processing of special and hazardous waste The term ‘special and Special and hazardous waste, our concern hazardous waste’ covers Vanheede Environmental Services has plenty of a very wide range of expertise, which serves as a basis for the advice materials, from small and assistance it provides to public waste disposal centres, neighbourhood collection points, logistics hazardous waste items companies and businesses in the chemical and other to highly specific and/ sectors. or dangerous products We provide UN-approved waste receptacles in all such as laboratory sizes, from 0.3-litre medical barrels to containers capacities of up to 40m3. Large volumes can be waste, oils, spray cans, with collected by the truckload and in bulk using trailers, electrical and electronic sludge containers and vacuum trucks as appropriate. equipment, solvents, When required, we can deploy ADR-compliant that are equipped with our own weighing and acids and bases. vehicles system for accurate registration and invoicing.

Since all of these pose potential risks to health and safety, they must Specialist in logistics and processing always be handled Vanheede operates from four licensed sites in Belgium and France for the storage, sorting and with care. processing of hazardous and special waste, with an

additional two logistical sites. A thorough knowledge of products and waste stream properties (including chemical names, potential hazards, Eural codes, samples for analysis, safety data sheet information and more) is a crucial part of providing the best possible processing solutions. Each day more than

30 drivers are responsible for collecting, correctly identifying and labelling waste and transporting it directly to a licensed processing installation or one of our own sorting centres. To ensure that special and hazardous waste products are transported in compliance with relevant regulations, we provide all legally required documents from identification forms to CMR, transfer documents and more.

Our unique automated tracing system registers and tracks each waste stream we collect, from the time of collection to the completion of processing. We also provide our customers with certificates of disposal showing correct weights and reporting data.

Ready to face the future Hazardous waste processing is an area of constant development. We are working at full speed to relocate our Rumbeke processing site, preparing to open a new site that will feature the very latest and best innovations in automation and digitalisation.

This will enable us to improve not only the working conditions of our personnel, but also on-site safety.

Pre-processing waste streams enhances the quality of the end product and improves processing.

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How do we make a difference?

VANHEEDE ENVIRONMENT GROUP Innovation

Business stability

Having our own R&D department means we have in-house expertise with regard to design and engineering for sorting and processing activities.

We are proud to offer our customers attentive, reliable and flexible service, and always pleased when we hear that they value our work.

Wide-ranging sustainability policies

Local presence, international activities

We play a key role in supporting the circular economy by processing all types of waste streams into new raw materials and/or energy.

Our business has a deliberately globally-oriented approach that is locally anchored.

ENVIRONMENTAL SERVICES Your one-stop-shop for waste management

Keep track of your waste management

Competent multisite management

Our online portal myVanheede and the Vanheede Plus app enable customers to organise their collection calendars, manage reporting and invoicing and order a range of products at their own convenience.

A comprehensive system for each specific company or group, accessible via the myVanheede portal, provides a complete overview of all waste issues.

Maximum recycling guarantee

Our processing companies

High-quality products

Our “Material Recovery” division determines the appropriate sustainable destination for every type of material we collect, whether processing is carried out by own companies or externally.

Thanks to the investments we have made in our processing companies for organic material, plastics and high-calorific waste, we can offer full-spectrum processing and service.

We have in-house expertise and technology for converting waste materials into high-quality products for use as raw materials and fuels in various industries.

Our customers can rely on us for every aspect of waste management, from garbage bags and dustbins to dumpsters and roll-packers, and from signage and waste coaching to reporting.

RECYCLING

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Our strategy

sustainable

ENVIRONMENTAL SERVICES collecting and sorting regular, special and hazardous waste RECYCLING transforming waste into energy and/or raw materials

We first integrated the United Nations Sustainable Development Goals (SDG’s) into our business policies in 2015.

These goals cover a very broad range of sustainability aspects, from climate change to biodiversity and from public health to education and combating poverty. They set the global agenda for sustainability from now to 2030.

As we compiled our annual sustainability report for that year, we considered these global challenges carefully and asked ourselves what the SDG’s mean for Vanheede and the context in which we work.

Since then we have frequently re-evaluated the relevance and purpose of our actions.

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Applying 50 years of experience to the circular economy

Safeguarding our future with respect for today’s world

Our strategy sustainable, innovative and customer-oriented Being a sustainable business means reducing our impact on the environment to a minimum while achieving the best possible results for all of our stakeholders.

innovative

We have a strong commitment to innovation, as it enables us to address two major challenges.

1 Increasing pressure on our climate and the environment: we aim to have a positive impact in a circular world.

1 A rapidly changing world: we must remain flexible in order to respond effectively to developments in technology, legislation, customer satisfaction and more. Our aim is to remain relevant, sustainably.

customeroriented Our loyal customers are the factor that enable us to achieve the greatest impact. Consequently, we consider it crucial to prioritise customer relations and to pro-actively anticipate their questions and needs so that we can work according to their expectations.

Taking a customer-oriented approach helps us to expand our perspectives beyond our own processes and provide customers with maximum added value.

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Five innovation programmes for rolling out our strategy

Staying relevant in a rapidly changing digital world

We will lay out a path towards a circular and sustainable world together with our customers, not on our own.”

David Vanheede, CEO Vanheede Environment Group

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Applying 50 years of experience to the circular economy The recycling sector has an essential role to play in transforming the linear economy into a circular one. Creating closed cycles of reuse takes effort: after all, making things out of existing products is not as easy as starting with raw materials. We are pleased that we use our experience in waste processing to make innovative contributions to the transition to a circular world. The concrete results of these efforts will be evident in our ambitious projects and fruitful partnerships.

Claudette Descamps & Herwig Vanheede †, founders Vanheede Environment Group

Over the years Vanheede Environment Group has amassed a wealth of knowledge and expertise, raising the bar with every new development and innovation. As a result, we are able to solve virtually any logistical problem that arises. Moreover, we now have abundant experience in every area of waste processing, from washing, sorting and separation down to the granular level, to compounding and yeasting, dealing with the products of anaerobic processing, but also water purification. We apply our expertise and attention to each waste stream we receive, always working according to applicable legislation and quality requirements to generate useful, high-quality recovered materials.

The more we aim to recycle, the cleaner the recycled materials need to be if we are going to use them to make new products or replace fossil fuels.

Dieter Grimmelprez, COO & Head of R&D strategy

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Safeguarding our future with respect for today’s world We at Vanheede are convinced that innovation and tradition can go hand in hand – and even complement each other. At the same time, the financial breathing space created by our current business is crucial to successful innovation.

Consequently, instead of focusing solely on new or future activities, we also try to ensure that our current activities can evolve and grow thanks to innovation. In fact, we have been doing this ever since the company was founded, since we have always had to adapt to new regulations, a changing marketplace and emerging technologies. So you could say that an ability to embrace change is part of who we are.

Even though we believe that innovation is often the catalyst for change, we also want to ensure our personnel feel comfortable with developments. For this reason, in the coming years we aim to put more energy into communication, so that our personnel and stakeholders stay on the same page with us in our efforts towards innovation.

This is the only way to succeed in achieving the aims of our mission sustainably, and thus to contribute to a more widespread adoption of circular practices.

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Five innovation programmes for rolling out our strategy Innovation, research and development have slowly but surely become the main focus of attention for Vanheede, and they are now the motors behind the roll-out of our strategy and the application of our corporate vision:

Circular Materials

Towards a circular world, in a sustainable way Over the past year we have carefully examined our various innovation and investment programmes, looking particularly at their content and strategic focus. Based on our findings we shifted from six to five innovation programmes, adapting their structures to achieve a clearer focus. We defined sub-programmes that make it easier for us to spotlight our priorities. And by bringing people with specialist skills together in our company, we have been able to create a fertile environment for generating and developing new ideas.

We have also improved our project management and direction to enable more consistent follow-up on various projects through the use of key performance indicators (KPIs) such as time, scope and budget. As a result, we are now better able to support our employees as they work out projects.

• Two of our innovation programmes are directly linked to our environmental activities, which comprise the collection, sorting, recycling and valorisation of waste, all with respect for the circular economy.

• Three programmes contribute to limiting our impact on the environment and our surroundings, and help ensure that we can continue to operate as a forwardlooking, sustainable business.

Intelligent Supply Chain

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Staying relevant in a rapidly changing digital world

Venturi

Developments in technology, regulations and customer expectations occur rapidly and therefore require non-stop assessment of our systems. This has never been more true than today. If we are to remain relevant in an ever-changing world, we must be prepared to change.

Carbon-Smart Economy

Infrastructural Development

There is no denying that the world is becoming more digital. We embraced digitalisation at a very early stage as a means of creating opportunities for growth, and now we are reaping the rewards. The complexity of our sector and the enormous volume of data it involves have been the major drivers behind this approach.

Beyond the digitalisation of our core business, we are now also taking up the challenge of mapping out our support processes so that we can optimise them using digital technologies. The result will be a data-driven, agile business structure, with a climate in which all of our employees can make full use of their competences and continue to develop them.

24 We offer our customers the most efficient solutions for tasks areas including waste management, material management, green energy and environmental protection.

Our approach is based on quality, professionalism and innovation and represents added value for every stakeholder involved.

We selected our first set of top-priority SDG’s during a 2015 think-tank session with stakeholders during which we discussed corporate sustainability and responsibility (CSR). A broad survey among our stakeholders brought forth fresh insights in early 2021 and enabled us to add SDG 6 (sustainable water management) and SDG 13 (climate action) to our objectives.

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PEO

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Impact awareness,

targeted solutions

To assess our impact, we compared our five values – the Vanheede DNA – to the UN’s framework of Sustainable Development Goals (SDG’s). We evaluated our performance based on our potential for maximising our contribution to creating a circular world and minimising our operational impact.

As a sustainable business, Vanheede Environment Group aims to be a fully-fledged partner in the circular economy.

↓ Our operational impact PASSION PLANET

1 Innovation of processes and products

9 Industry, Innovation and Infrastructure 6 7 12 13 14 15

Clean Water and Sanitation Affordable and Clean Energy Responsible Consumption and Production Climate Action Life Below Water Life on Land

PEOPLE

3 Good Health and Well-being 8 Decent Work and Economic Growth

PROFIT

11 Sustainable Cities and Communities 17 Partnerships to achieve the Goal

PRIDE

16 Peace and Justice Strong Institutions

↓ Our solutions

A Limited environmental impact

2 Maximum valorisation of materials

B Zero accidents Attractive employer

3 Sustainable growth

C Ethical and honest business practices

4 Customer loyalty

Giving back to the world It is important that all of the organic and synthetic material that we extract from the earth is also returned to the earth.

With this task, Vanheede is a major link in the circular economy.

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2 About our projects

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PASSION

PLANET

PEOPLE

PROFIT

PRIDE

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Statistics ’18 FTEs in R&D

Vanheede employees directly involved in innovative projects

’19

’20

25

27

34

-

-

154

SDG’s In order to maintain our market position, we must develop proactive solutions for the environmental challenges of the future and offer sustainable value to our customers and society in general.

29 WE REALIZE DREAMS

We are committed to our work! Our business culture is one of creativity, entrepreneurship, digitalisation and innovation, and has enabled us to forge solid and lasting partnerships.

Why innovate?

We innovate so that we can look ahead and remain relevant in a challenging, rapidly changing world. Change is unavoidable. Whether in the area of technology, legislation or customer expectations, changes take place at the speed of light and requires constant reassessment of thinking processes and systems. Now more than ever. But change also brings opportunities. According to the European Commission, the transition to a circular economy is ‘the path towards transforming our economy and generating new, sustainable competitive advantages for Europe’. And it is an element of the recovery plan for the postCOVID era.

We also innovate in order to create fertile ground for ideas. To ensure we could emerge from this crisis with a new lease on life, we evaluated our innovation projects and tweaked them where necessary. Some were put on hold, while others that could contribute to a ‘new normal’ were implemented at an accelerated pace. With each project, full attention was given to managing processes not only in terms of their technical aspects (project management), but also human ones (change management).

After all, innovation and tradition go hand in hand at Vanheede. Our current successful businesses generate the financial breathing room that we need to embrace innovation. There is a growing realisation that strengthening today’s business and laying down the foundations for tomorrow’s business are equally important parts of ensuring lasting success for our company.

PASSION

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Innovation in practice

+

500 L

LDPE FOLIE NATUREL

500 L

LDPE FOLIE GEMENGD

500 L

300 L

SPANBANDEN

300 L

EPS HARDE (ISOMO, KUNSTSTOFFEN PIEPSCHUIM)

Improving sorting with the Plastic Switch

Partner in a range of European research projects

Waste is a treasure trove of resources, and sorting at the source is the gold standard for achieving the best possible degree of valorisation. Unfortunately, we know that residual waste still often contains recyclable materials, from paper and cardboard to plastics including PMD waste, foils, hard plastics, expanded polystyrene (EMS) and plastic strapping. This inspired us to launch a trial project that we named ‘the Plastic Switch’.

In recent years Vanheede has taken part in countless research partnerships in the area of innovative recycling techniques. These have involved ingenious and comprehensive solutions for bulky refuse (URBANREC – European H2020 project), the production of composite granulates from wood fibre and recycled plastics (RECOVER – R&D project VLAIO, Government of Flanders), research into the best methods for recycling mattresses (INNOMAT – MIP project, Government of Flanders) or into the valorization of plastic materials from complex waste streams to qualitative end-products (PROFIT – MIP-ICON project). The appreciation shown for Vanheede’s contributions underlines our internationally leading position in waste and materials management, as well as illustrating excellent cooperation between local and federal government, knowledge institutes and the business community.

The Plastic Switch has two aims. One is to reduce the volume of selectively collected plastics in adherence with Belgian regulations (Vlarema). At the same time, we also want to provide the market with a logistically feasible solution by collecting the various separate elements together, thus reducing logistical expenses.

How does the Plastic Switch work?

In consultation with Valipac and Fost Plus, we selected 500 customers in the Roeselare region and carefully monitored the contents of their residual waste bins over a two-week period. We detected non-compliance with recycling guidelines in the waste of no fewer than 40%. These customers received a starter pack from us consisting of separate bags for six different kinds of plastic (PMD, mixed foils, natural foils, hard plastics, EPS and strapping). Ultimately, 30% of our customers took part in the trial project. The bags of sorted plastics were collected during PMD collection and sorted at our sorting centres.

Roll-out across Belgium Plenty of people were willing to take part in the trial project, and it became clear that customers were interested in realistic solutions that would help them comply with regulations. Armed with this knowledge, we decided to scale up the programme and roll it out across Belgium. Our aim is to enable a maximum number of customers to reap the benefits of our innovative solution for collecting plastic waste.

Research projects such as these provide us with a wealth of knowledge that can be applied directly to the development of new business opportunities. Moreover, this work helps us build and expand a valuable network that opens doors to the latest market developments and emerging markets.

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Full digital transformation For some businesses, the COVID-19 crisis served as a digital stress test of sorts. Luckily for Vanheede, its business model had already acknowledged the importance of digitalisation, and this anticipation has worked to our advantage.

Over the past 10 to 15 years we have invested heavily in our digital processes, and when 2020 forced us to shift up and accelerate, we were ready to work remotely, hold virtual meetings, digitalise the acceptance of incoming waste streams, and transition to digital bills of lading and identification forms.

MyVanheede and the Vanheede Plus app enable direct communication between us and our customers. The app offers customers round-the-clock access to their collection calendars and provides a clear overview of services and an outlet for real-time feedback. It is easy to request and cancel collections, order extra items online and view or download invoices and other documents – any time of the day or night!

All requests are uploaded directly into our ERP system and scheduled using our revised planning tool. As a result, we can devise the most efficient, precise driving schedules and ensure maximum convenience and efficiency for our customers.

We also use digitalisation to optimise our internal processes. In 2020 we worked hard on our computerised maintenance management system (CMMS) project, which focuses on the development of uniform paperless processes for the maintenance of our production lines and equipment across the entire group.

Recent developments have left us even more convinced of the potential advantages of digitalisation. Not only will it enable us to accelerate our response to customers’ needs and improve the accuracy of reporting and invoicing, we can also use artificial intelligence to anticipate opportunities for pro-active measures.

In recent years we have made great strides in digitalisation by investing in solid IT architecture and putting the best modules in the right places for the right processes. The challenges now are to maintain our head start, to learn from innovative players (particularly those outside of our sector) and to continue to invest in innovation and in training for our personnel. After all, the more digitally competent each member of our staff is, the better we can ensure optimum interaction between people and machines.

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Statistics % recycling & valorisation kWh of green energy generated Waste streams per customer (sector benchmark: 1,49) Average EURONORM of our truck fleet

’18

’19

’20

91,05

94,21

94,62

45 mil. 42 mil. 53 mil.

-

1,6

1,76

5,11

5,21

5,6

SDG’s Awareness of how to handle waste and materials with a minimum negative impact on the environment is of essential importance for the shift to a lowcarbon and circular economy.

33 WE CONTRIBUTE TO A BETTER WORLD

We respect the environment!

We give materials a second lease of life at our sites, an approach that has a positive impact on the climate and our environment for benefits both today and in the future.

PLANET

The best destination for your waste Environmental technologies play a crucial role in addressing major environmental challenges such as climate change, scarce natural resources and loss of biodiversity. Vanheede is working to change ideas about dealing with waste and moving closer to a circular economy. Together with our stakeholders, we are rethinking existing processes and structures. For instance, we help our customers

operate according to a design-for recycling concept that begins in the product development phase. This makes it easier for them to repurpose their own recycled materials later. By shifting our perspectives beyond standard solutions, and by developing our own Vanheede technologies, we can focus clearly on highquality recycling and on generating new raw materials and sustainable energy.

The COVID crisis has had a direct economic impact on businesses in our sector. Not only in terms of recycling centres closing, but also with regard to limitations on imports and exports and fluctuations in the prices of raw materials. For us at Vanheede, the situation turned out to be the catalyst we needed to shift into a higher gear. Alongside the EU Green Deal, this crisis has been a motivation to finally put the circular economy into practice for real.

Nico Kimpe, Sales & Sourcing Supervisor

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Maximum material valorisation Acceptance conditions becoming increasingly important Acceptance is an increasingly important issue, since the presence of non-standard materials in a waste stream can cause problems further down the processing chain. With this in mind, we monitor our customers’ various streams carefully and provide feedback that helps them improve sorting. Materials that do not belong in residual waste streams are collected in more appropriate ways as much as possible in order to keep them out of incinerators. This also helps us decrease volumes of residual waste and increase recycling percentages.

Our digital acceptance app is an essential quality control instrument. Every reading from the weighbridge is sent to the web app, through which acceptance personnel can see the container number, the names of the customer and the transporter, the number plate, waste type and more. If the load is approved then the acceptance department can signal this through the app. If not, the load is flagged as non-approved and the reason and photographic evidence are provided.

Our strict adherence to acceptance criteria not only enables us to comply with our legal obligations (Vlarema), but also reflects our respect for the environment and our future.

The Vanheede Lab: quality control across all of our companies Quality has always come first for the Vanheede Environment Group, with respect to both our own processing work and our incoming and outgoing streams. Quality begins with the customer who produces the waste. While correct sorting and identification of incoming streams are fundamental to ensuring high-quality processing, monitoring and adjustment of various parameters are also essential processing activities. The analyses that the Vanheede Lab uses must be absolutely accurate, with values interpreted in the right context in order to improve processes. This work is done by people with specialist knowledge of specific waste streams, waste producers, waste sources and the requirements of the end users, who in turn are setting stricter, more rigorous and more complex acceptance conditions. All in all, a well-functioning lab enables us to consistently meet every relevant requirement.

Vanheede Alternative Fuels (VAF), Vanheede Environmental Services (VES) and Vanheede Polymers & Compounds (VPC) all rely on the Vanheede Lab. Not only does analysis data reveal synergies, it also helps our subsidiaries learn from each other. We work together to continually develop and adhere to our internal quality policies. Through the Vanheede Lab, we aim to bring a Vanheede Quality Culture into sharper focus.

Altercoal: from non-recyclable waste product to fuel and raw material Vanheede has developed a procedure for transforming specific waste materials, such as non-recyclable plastics and textiles, into environmentally friendly fuels and raw materials for the cement, chalk and steel industries, among others.

These materials can thus be 100% usefully repurposed as alternatives to coal in production processes in the cement and chalk industries. First, energy valorisation occurs as heat is generated during incineration, and then the residual ash serves as a pure raw material for the production of cement, chalk and steel.

Make good use of roadside grass Grass grows plentifully alongside our roads. And all that grass needs mowing from time to time. But what happens to all the clippings? Are they just waste, or do they have the potential to become something else? We think they do. That is why we have joined a European research project in which research institutes, landscape managers and businesses look at ways to repurpose roadside grass clippings. For instance, fermented grass fibres can serve as a building material or as food in insect farming. An added advantage of this treatment is that the fermentation process also generates energy in the form of biogas and heat. Over three years, 23 partners from three countries will evaluate which possibilities are feasible and profitable.

35

Sustainable energy production Injection of gas into the natural gas network in collaboration with ORES At our Quévy site, an industrial biomethane installation transforms organic matter into biogas, which consists of methane and CO2. A cogeneration engine then transforms the biogas into a sustainable form of electricity and heat.

A biogas purification system and a biomethane injection unit have also been operational at the site since June 2021, making ours the second largest large-scale installation for the purification of biogas to natural gas specifications in Belgium.

The new facility produces 700Nm³ of biomethane per hour and injects it into the natural gas network. Not only does this process generate green electricity and heat, but it also means that green gas can now be locally produced for local consumption.

4200 An average family uses about 1,250m³ of gas annually.

The 5.3 million Nm³ we produce annually represents enough green gas for 4,200 families.

Vanheede Biomass Solutions contributes to a low-carbon economy by: 1. developing high-quality processing solutions for food waste 2. offering alternatives to fossil fuels for generating electricity, thus making electricity carbon-neutral 3. producing biomethane to replace the production and importation of natural gas, making gas carbon-neutral 4. using digestate as an alternative to synthetic fertilisers.

The carbon footprint of biomethane is 10 times smaller than that of natural gas.

Biomethane also produces less particulate matter as it is burned.

In the coming years we will be exploring other methods of valorisation for biogas, such as renewable sources of CO2 in industrial and food production processes.

36

Reducing our ecological footprint Our core activities are the collection, sorting and processing of waste.

As we do this, we work as sustainably as we possibly can in order to minimise our energy consumption and our impact on the environment.

Focus areas include:

Sustainable logistics, not only on the road, also on the water

reducing diesel consumption of our trucks and cars

reducing CO2 emissions during transport and production processes

reducing electricity consumption in production processes

From clay mine to landfill to valuable nature sanctuary Our landfill is situated in a region where Yperian clay is mined. Clay is an important raw material that is used to produce bricks and roofing tiles, and the earth and sandy loam that are removed during mining can also be used for valorisation.

We keep a very close eye on developments in the logistics sector. Vanheede is often cited as a pioneer in the testing of new technologies to reduce emissions, increase mobility efficiency and improve traffic safety. Examples have included the first hybrid refuse collection truck and the installation of cameras to replace mirrors for a clearer and safer view of the area around and behind a truck.

For daily transportation requirements, we also use supertrucks. Being longer (25m rather than 18m) and having a larger load capacity (60 tonnes rather than 44) makes them an environmentally responsible alternative. We are exploring possibilities for inland and sea shipping to our more distant end customers, such as those in Scandinavia. Processing quality always comes first. Naturally, driving a truck to a local processing site is still more sustainable than transportation by boat to the Far East.

An advantage of a clay-rich substrate is that it is a natural water barrier, and thus an additional natural barrier level during the construction and lifespan of a landfill.

As the mining pits are filled in with non-recyclable waste, the landfill site is being gradually transformed into a new 40-hectare nature sanctuary by Natuurpunt, the city of Roeselare, the government of West Flanders Province and the natural resources section of the Flemish government’s Environment and Health Department. The zone borders on the Bergmolenbos in Rumbeke, and it is a good fit with the city’s expansion plans for a green axis beginning in the Sterrebos. The creation of walking, cycling and equestrian paths adds value for the people and the environment of the region.

By creating hills and ponds at the site, we hope to develop a range of new biotopes (mudflats, brooks, meadows and areas for shorebirds) where rare land and water birds and other animals will feel at home.

37

reducing and sorting our own waste materials

diverting methane (CH4) to biogas engines

They also form water reservoirs and buffer strips that will help to prevent runoff problems in times of heavy rain.

While nature and economic activity may appear to have opposing interests, this plan illustrates that a middle way can be found that is advantageous to biodiversity. The plan was given the rather surprising name “woudaapje” (Little Bittern), after a rare and threatened heron whose return to the area would be a sure sign of a swamp biotope with high-quality water. Since Little Bitterns can only thrive in a very clean environment, they are rightly seen as heralding the restoration of a healthy natural site.

erstock © Shutt

Keeping dust to a minimum, keeping hazardous materials under control

reducing water consumption

paving and covering sites to avoid waste water infiltration.

A helping hand during flooding Over the years we have often stepped in to help when heavy rain has caused extreme flooding. For example, at critical moments we have diverted the creek that runs alongside our Rumbeke site, directing it towards a mining pit. As part of developing our natural environment we have also identified opportunities to help on a more permanent basis. For example, we worked with various partners to create a global ‘water action plan’ aimed at reducing the danger of flooding in the wider area.

We have created water reservoirs and buffer strips at three locations, two of which are now finished and can hold 16,000,000 litres of water between them. The extra buffers and the slower release of water have a huge mitigating effect on the dangers posed by excessive rainwater, and thanks to the reservoirs we can reduce the use of tap water at the site.

38

Statistics ’18 % employee growth

employees

3,17%

717

’19

’20

7,4% 5,19%

770

810

SDG’s Having an inspiring corporate culture is a crucial factor for retaining staff and attracting new talent.

We all share responsibility for our corporate culture, which is geared towards ensuring the health and safety of all employees.

39 WE ARE A FAMILY BUSINESS

People are important to us, and their health, safety and welfare are our top priorities.

We recognise talent and encourage personal and professional growth, treating our staff with respect.

PEOPLE

A culture supported by our values Vanheede’s employees are: 1 members of a work force among more than 800 colleagues 1 distributed over 14 locations 1 at work in a French and/or Dutch language environment 1 involved in a broad range of activities.

It is always hard to know in advance whether you will feel at home with a new employer. For this reason, based on our 5 values, we have developed a “culture code” entitled: The Vanheede Compass. This code does not require all of our employees to share the same values or the same ways of thinking. In fact, we see a diversity of perspectives as a key to change.

Our compass suggests – but does not impose – a cultural framework of reference by which everyone can understand Vanheede’s history, working methods, context, expectations and more: in short, the spirit of the business. We consider it essential that all employees are familiar with the code but also that they remain true to themselves.

Our culture code is a helpful reference for people as they join our workforce, but just as useful for people who have been with us for years.

Welcome pack for new employees

Working for Vanheede means being part of a business that is full of potential.

It is exciting to see how small improvements can start an evolution. This motivates me to do what I can to contribute.

Maxime Vanheede, Business Development Manager

40 #WomenInRecycling As the chairperson of Women in Recycling, a project initiated by the association of Belgian recyclers (Denuo), Caroline Vanheede is keen to attract more women into a sector that is still widely perceived as a male domain.

Bike to work Back and forth to Australia 6 drivers

113 employees

Denuo’s statistics show that women make up fewer than 40% of employees in the recycling and waste management sector and that fewer than 5% of this group work in areas other than administration.

Our personnel cycled 31,430km in 2020, representing a CO2 reduction of no less than 5.5 tonnes!

While the number of female drivers in our family business has increased slightly in recent years, we still have plenty of room for talented women. Countless positions constantly need to be filled, many in areas that are less physically demanding and thus equally suited to women, such as logistics, planning, communications and management.

Not only is this campaign in line with our sustainable approach to reducing our ecological footprint, it also contributes to the health and wellbeing of our employees.

Vanheede has adopted a gender-neutral hiring procedure that places more importance on an applicant’s skills and capability than whether they are male or female. By joining forces with Women in Recycling, Vanheede aims to contribute to a more inclusive and gender-neutral society.

The creation of a women’s network in this sector is one of the tenets of the Women in Recycling project.

The network is intended to encourage women to join the sector and to demonstrate that there is nothing odd about women building careers in the recycling sector.

16 labourors

At Vanheede, we encourage our personnel to keep the environment in mind during their day-to-day activities. With this in mind, we set up a Bike to Work campaign to motivate people to switch to cycling for their daily commute, rewarding each kilometre they ride with ‘bike coins’ that they can exchange for vouchers.

A second useful life for our ICT equipment

Grafiek/ illustratie

For the past few years Vanheede has donated written-off ICT equipment to local schools. In this win-win situation, giving our computer equipment a new lease of life not only reduces the volume of our own electronic waste, but it also provides some of the region’s most vulnerable young people with computer access they would otherwise go without. More than ever, young people need highlevel computer equipment in order to take part in online training opportunities, and this programme is therefore enormously useful. .

41

Working to keep our workers happy Did you know that the quality of customer experience is largely dependent on the performance and commitment of a company’s employees? With this in mind, we held our first satisfaction survey among our drivers, workers and administrative staff. The aims were to find out how much importance our employees attach to our sustainable themes and to gauge the general level of satisfaction among them. We included criteria such as motivation, their interest in their work, pride in working for Vanheede, the company image, personal wellbeing, working conditions and more.

Once we have implemented a range of measures to improve some areas, we will continue to monitor satisfaction levels and adapt the working environment to keep it as pleasant as possible.

I immediately felt at home at Vanheede, and my colleagues gave me a warm welcome. The atmosphere is family-like and open, something you notice in all kinds of little things. The happiness and wellbeing of employees is clearly important.

Shirley Florissonne, HR business partner since 2021

The Committee for a Good Working Environment The Committee for a Good Working Environment, set up in 2018 on the initiative of the marketing and human resources teams, encourages all employees to make suggestions for improving the workplace atmosphere and promoting good relations among colleagues.

All Vanheede employees are members of the Committee, and are thus encouraged to propose activities in the areas of sports, culture, festivities, charity and family.

Vanheede Learns To ensure that we can respond adequately to an increasing need for qualified employees with a more diverse range of skills, we have enlarged our HR department. We welcomed two new colleagues to the department in 2021, one of whom focuses entirely on the increasingly vital area of training.

At Vanheede we are constantly on the lookout to recruit and retain the most talented people we can. We also invest in developing our employees’ technical and general skills by offering internal and external training opportunities. All of this helps make our company successful, and it helps our employees to grow professionally.

Emmanuelle Debels, HR administrator since 2000

42

Working together to create a safe working environment We began 2020 with great ambitions in the area of safety awareness. But fate brought us something else. The lockdown that began in March 2020 meant that a large number of our employees had to start working from home. Those who could still work on site had to reduce group sizes and contacts with colleagues as much as possible. In other words, circumstances were not ideal for a safety consciousness campaign.

The main priority in 2020: keeping COVID under control Naturally, protecting our employees’ health was our main concern during the pandemic. We used a wide range of channels to make announcements, revising messages continually as the situation changed.

Aims for 2021 1 To keep our employees healthy and safe during the pandemic 1 Action plan for safety in 2021: ! theme 1: adherence to procedures and regulations ! theme 2: preventing falls and tripping

Up to now, our safety training activities have mainly targeted managers who are responsible for passing on information to their teams. Despite our best efforts, we have learned that we need to work even harder on getting and maintaining people’s attention in order to avoid dangerous situations. To provide the men and women at our various sites with relevant information for promoting a culture of safetyconsciousness, we decided to set up working groups for five operational areas: 1 drivers 1 mobile equipment operators 1 other operators 1 maintenance workers 1 administrative workers

Vorming en coachi ng van alle leidinggeven den ter ondersteuning va n elke medewerker.

Veiligheid is een topprioriteit voor elke verantwoordelijke !

Severity rate (SR) 1,55

1,31 0,82

1,05

0,93

1,18

0,77 2020

Onderzoek van ongevallen verbet eren om effectieve maatre gelen te treffen.

Voorkomen is bete r dan genezen.

2019

Neem actief deel aan veiligheidsopleid ingen.

Leer bij over de ris ico’s.

Vorming en coachi ng van nieuwe medewer kers.

Invoeren van het peterschap.

We provided both these groups with a toolbox containing information on a range of health and safety themes. We also introduced a mentorship system for drivers, with experienced colleagues helping beginners to anticipate and safely deal with the most commonly occurring dangerous situations.

2018

Heb aandacht voor gevaarlijke situatie s en durf deze melde n, aan je collega’s en leidinggevende.

Zorg voor elkaar.

Actie op bedrijfsniv eau

2017

Respecteer overal de veiligheidsvoorsc hriften bij het uitvoeren van je eigen job.

Zorg voor jezelf.

2016

Persoonlijke actie

Wat kunnen wij doen?

2015

Wat kan jij doen?

We believe that everyone shares responsibility for safety. Even so, we decided to start by focusing on two personnel groups in which our efforts would have the most impact, since they are the groups in which accidents happen most frequently: drivers and mobile equipment operators.

2014

VAN HEED E ENVI RON MEN T GRO UP AFFI CHE N° 90 - JANU ARI 2021 - NL

Jaaractieplan veiligheid 2021

43

0,68 sectorbenchmark 2019 (NACE2 - code 38)

Frequency rate (FR) 68,07

59,21 45,52

58,42 65,78 55,83

#MISSIONZERO

2020

2019

2018

2017

2016

2015

2014

31,15 21,65 sectorbenchmark 2019 (NACE2 - code 38)

44

Statistics ’18

’19

’20

% investment budget in relation to consolidated turnover

11,52

16,81

13,68

% R&D budget with regard to consolidated turnover

6,94

9,77

8,34

SDG’s Our long-term vision is aimed at business continuity.

Profitability and a healthy financial policy constitute the oxygen for entrepreneurship that enables us to maintain our focus on sustainable partnerships.

45 WE ARE WORKING TOWARDS A SUSTAINABLE FUTURE

We think in terms of win-win-win!

Every one of us can make a difference – for stakeholders, for the company and for ourselves.

Profit is the oxygen that enables us to invest, innovate and organise as efficiently as possibly.

Infrastructure of the future

PROFIT

In the spotlight: a make-over for Vanheede in Antwerp

Our innovation programme Infrastructural Development is intended to lay the foundations for a state-of-the-art business infrastructure with a focus on the requirements of both today and tomorrow. The programme will maximise opportunities for our business’s strategic axes (Environmental Services and Recycling) to make the best use of their current capacity, to expand capacity where they can and to develop and roll out new activities.

Vanheede is committed to being a modern and innovative environmental group, both today and in the future. With this in mind, all of the requirements, plans and objectives of the various business units, as well as the symbiosis between the units, are now mapped out in a master plan for each site. Vanheede can turn ideas into reality by bringing spearheads together as sub-programmes. In our Infrastructural Development programme, these sub-programmes focus more specifically on optimising every aspect of site efficiency.

We also evaluate the management, buffering and containment of the various water flows at sites.

Other key themes include developing biodiversity, preventing fires and explosions and mitigating risk, guaranteeing healthy indoor working conditions, preventing odour and dust problems and shaping the working environment of the future.

In late 2021 work will be completed on a brand new office building at Vanheede’s Antwerp site. It will house about 40 administrative staff and the same number of other workers.

The building has been designed with a focus on the wellbeing of employees and on ensuring maximum sustainability and minimum environmental impact.

Features include: 1 1 1 1 1 1 1 1 1

energy-efficient ventilation, plumbing and heating showers and changing rooms for workers, cyclists and sports enthusiasts a canteen and other areas for people to relax ergonomic office furniture maximum use of natural light, with sun protection on the southern exposure charging stations for electric vehicles and bikes dedicated spaces for training and collaborations two weighbridges parking spaces for 70 cars

46

Sustainable partnerships

© David Plas

Cooperating to create the PMD sorting centre of the future In cooperation with Suez Belgium and the intermunicipal partnerships IDEA (Coeur du Hainaut) and Ipalle (Wallonia Picarde and Sud-Hainaut), Vanheede has invested in an innovative sorting centre.

The centre, Val’Up, will become operational in the summer of 2021. Each hour it will be able to process about 5,000 of the blue PMD bags in which an extended range of plastic packaging is collected from over 2,000,000 residents across various Belgian municipalities.

The aim of this public-private collaboration is to sort and recycle even more household packaging, thus contributing to the expansion of the circular economy in Belgium’s Hainault region.

From left to right: Caroline Decamps, General Manager IDEA - Elio Di Rupo, Minister-President of Wallonia - Philippe Tychon, CEO Suez Patrick Laevers, Managing Director Fost Plus - Céline Tellier, Minister of Environment, Nature, Rural Renovation and Animal Welfare David Vanheede, CEO VANHEEDE ENVIRONMENT GROUP - Vincent Van Leynseele, Director of the Circular Economy and Legal Division of Ipalle Jacques Gobert, President of IDEA

47

2 million

© Jan De Nul

This PMD sorting centre will sort PMD from so many residents

Grensland is Circular Vanheede joined the project ‘Grensland is Circular’ as a research partner. Involving 80 businesses in Menen and Wervik and rolled out at a circular and sustainable industrial site, this project has taken major strides towards realising a circular economy.

The aim of the project is to identify solutions that will help the businesses involved to improve the management of their materials, reduce waste and improve the selective collection of waste streams.

Yet another partnership along the path towards a more sustainable world!

From left to right: Guido De Roo, Kristof Moeyaert, Gunther Bamelis, Philippe Tavernier, Herman Wenes, Kim Delvoye and Liesbeth Hollebeke

48

Statistics ’18

’19

’20

NPS score

29

31

35

NPS score myVanheede users

23

36

38

-

-

47

82%

84%

84%

-

-

4,5/5

NPS score Vanheede Plus app users General customer satisfaction rate Trustpilot TrustScore

SDG’s Loyal partnerships are based on trust. Common interests, ethical conduct and integrity ensure that we can always look each other in the eye.

49 WE ARE ALL PROUD AMBASSADORS OF OUR COMPANY

We are proud of what we do!

We fulfil our ambitions by working transparently, remaining faithful to our values.

Each of us is a proud ambassador of our company.

PRIDE

Committed to improving customer satisfaction Maximum customer satisfaction, flexible service and good communication are essential when the aim is to build long-term relations with customers. Our awareness of this fact is evidenced by the positive results of the customer satisfaction survey that we held in December 2020.

On top of a general customer satisfaction score of 84%, the survey revealed a number of interesting insights.

Vanheede Plus, your app for waste management We completed and rolled out Vanheede Plus app in February 2020, then ramped up our promotional campaign for it in response to the COVID-19 pandemic. Today more than 1,700 of our customers use the tool. It has been used to request services on more than 3,000 occasions.

1 Customers who use the myVanheede customer portal are more satisfied (86%) than those who do not (82%).

1 Customers who use the Vanheede Plus app are more satisfied (86%) than those who do not (84%).

Regardless of whether or not our customers use the digital tools we provide, they report a generally high level of satisfaction. And that is what is most important to us!

Our official Net Promotor Score is 35. This means that we have loyal customers who are ambassadors for our business and who consider us as a valuable partner.

The survey also brought plenty of comments and questions, which we followed up carefully. Last year saw a significant drop in the number of comments requiring follow-up, which we see as a reflection of good communications and responsive customer service.

Did you know that we sent out five times as many personalised messages in 2020 than in 2019?

Doing so helped us create a much stronger feeling of involvement among our customers, which in turn has led to a better understanding of the challenges that are part of our daily work together.

Joining Vanheede means joining a family business with a warm atmosphere and open lines of communication. Vanheede is a business with a future-oriented vision, but also one that retains its respect for previous generations.

Across the entire company there is a clear emphasis on entrepreneurship and a drive to provide unique, top-level customer experience.

Justine Vanheede

50

Cooperation with certified suppliers, contractors and processors Sustainable purchasing

RETHINK – REDUCE – REUSE – REPAIR – RECYCLE – RECOVER

As a sustainable business, Vanheede takes responsibility for its supply chain by applying a sustainable, circular purchasing policy. Our preference for partners who are also committed to the circular economy is evidenced by our choice of suppliers, which are mainly European companies and have demonstrable quality and sustainability values.

We are committed to using receptacles that are re-usable and repairable.

Correspondingly, we purchase only recycled receptacles that can be shredded at the end of their lifespan to serve as a raw material for the production of new receptacles.

Our main purchasing areas are: 1 fuels, which come from Belgian refineries 1 containers 1 office supplies, which include FSC-certified paper, fair trade coffee brands and ergonomic office furniture 1 work clothing, with our Vanheede uniforms coming from a supplier who works with a returns system for old and damaged items.

Generally speaking, robustness and quality are criteria for every purchase. Our objective is permanence, and wherever possible we try to repurpose materials that we no longer need by re-using them ourselves or selling them on, for example when we renovate.

Starting on 1 January 2021 we have been using only garbage bags that contain a specific amount of recycled plastic (in adherence with Vlarema regulations). The Flemish government has set minimum requirements for the recycling of plastics, starting at 80% from 1 January 2021 onwards and becoming 100% by 2025, half of which must consist of recycled postconsumer plastics. We are taking a leading role in this transition.

100% Metal barrel

recycled content

51

100% recycled content

Medical barrel

Smarter is also more sustainable Thanks to our smart connected compactor, customers no longer have to check how full their bins are. When a bin is almost full and needs to be emptied, the smart sensor system lets us know via the myVanheede app and we take care of the rest.

This smart technology helps us avoid emptying bins that are only half full, reducing our customers’ transportation fees and enabling us to plan our routes more efficiently. At the same time, it gives customers one less thing to think about.

Instead of us driving routes every couple of weeks according to a fixed schedule, as we used to, in most cases we now only empty bins when absolutely necessary.

Less work for more satisfied customers!

Sale of high-quality end products Wheelie bin

50% recycled content

We may be one of Europe’s major recycling champions, but it would be pointless to sort waste into various streams if we did not do something useful with them.

With an increasing number of laws and regulations calling for businesses to use recycled materials in their production processes, more and more sales markets for recycled goods are opening up.

Our “Material Recovery” department constantly aims to achieve the highest possible recycling percentages for our customers.

We have an extensive network of top-quality (mainly European) end users who help us close the circle of material recycling.

Our focus on quality and pre-treatment enables us to guarantee that recycled waste will be usefully repurposed. As a result, customers can be sure that all of the sorting and recycling activities they carry out are well worth the effort.

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Our sustainable commitment, in black and white In line with guidelines such as Ecovadis, ISO 9001, ISO 14001, VCA and Best Managed Companies, Vanheede Environment Group has compiled a code of conduct for all of its personnel and a number of policy rules for full commitment to addressing environmental, social and administrative issues.

Code of conduct

CSR policy

This document sets out our expectations regarding behaviour between and among colleagues and managers, in the organisation in general, towards our customers and the outside world.

Vanheede has integrated the principles of socially responsible entrepreneurship in its strategies and daily activities. As a business working in the public and private sectors, our purpose encompasses much more than being profitable. We contribute to developments in the community in which we operate. To contribute to the welfare of various community sectors, we engage in activities that are socially, ecologically and economically beneficial and which represent a commitment to the sustainable development of the community and of society in general.

onduct Code oetf hicca l work A guide to

Corporate Social Re

sponsibility Policy

Vanheede Environ

nt Group

ment Group

vironme Vanheede En Beekstraat 25 l sse Bru 1080

Vanheede Environment Group erkent dat als winstgevend zijn. Ze bedrijf in de publieke helpt mee aan de ontwi van verschillende segme kkeling van de samen en private sector, haar bestaansdoel verder leving waarin ze actief waardoor ze mee instaa nten van de samenleving onderneemt is. Om bij te dragen reikt dan enkel ze t voor een duurzame ontwikkeling van de sociaal, ecologisch en economisch nuttig aan het welzijn gemeenschap en de e activiteiten Vanheede Environment samenleving in het algem Group verbindt zich ertoe alle een. als administratieve werkin activit eiten inzake g van het bedrijf te ondersteune Corporate Social Respo zichzelf om als voortr nsibilit n, waarde heeft voor alleekker in Corporate Social Responsibility consistent met de belangen van de stakehy in zowel de operatieve erkend te worden en olders. Ze engageert belanghebbende partije verzek n. ert dat dit significante toegevoegde Dit beleid is van toepas sing op alle activiteiten business units. Alle medew uitgevoerd door of onder erkers van Vanheede naam van Vanheede die in dit beleid worde Environment Environment Group en haar door deze overwegingen beschreven, in hun dagelijkse werkza Group passen de Corporate Social Respo amhed nsibilit n te incorporeren in de besluitvorming van en toe. Managers en directieleden fungery-overwegingen, alle bedrijfsactiviteiten en als rolmodel Dit beleid is gebaseerd . op volgende gebieden die bestaande en opkom ende normen voor CSR reflecteren: Sustainabi

lity

•

• •

Vanheede Environment Group innoveert voortd urend in antwoord op centraal onderdeel van de verschillende uitdagi de aanpak van grote ngen. Milieutechnologieën milieu-uitdagingen, vormen een zoals klimaatverandering, van biodiversiteit. schaarse natuurlijke hulpbronnen en verlies Vanheede Environment Group ondersteunt ontwik kelinge n die een duurzame maatschappij door middel waarde creëren voor van haar verschillende zowel haar klanten als de innovatieprogramma ’s.

Vanheede Environment Group hanteert een duurzaam beleid voor de aankoop van dienste procedures worden vastgel n en producten, waarin egd. de beginselen en

Environment

•

Vanheede Environment Group zet zich in voor de bescherming van het milieu in al haar biodiversiteit en behoud aspecten. Preventie van hulpbronnen zijn van vervuiling, behoud de sleutel tot een duurza van zakelijke besluitvormin me omgeving. Deze concep g. ten worden efficiënt geïntegreerd in de Vanheede Environment Group streeft naar een minima lisering van een negatieve impact omgeving door middel en maximalisering van van een verbintenis tot positieve impact op de voortdurende verbete • Vanheede Environ ring. ment Group werkt samen met haar partners om • Vanheede Environ oplossingen voor milieument Group zal haar uitdagingen te ontwik impact op het milieu kelen. beoordelen en openlij k rapporteren aan alle belanghebbenden.

Heal •

• •

ular world, Towards a circ ble way in a sustaina

th & Safety

Vanheede Environment Group zet zich in voor de gezondheid en veiligh inbegrip van haar medew eid van alle personen erkers, klanten en het die betrokken zijn bij haar activiteiten, met publiek.

Vanheede Environment Group maakt alle medew erkers bewust van hun aan een veilige werkom verantwoordelijkheid geving, het bevorderen en aansprakelijkheid van een veilige werkho voor het bijdragen uding en voor het werken manier. op een duurzame verantw oordelijke

Business Ethics and

• • • •

Transparency

Vanheede Environment Group zet zich in voor het handhaven van de Vanheede Environment hoogste normen van integriteit en corpor Group zal alle wetten ate governance. , die reguleren en van Vanheede Environment toepassing zijn, naleve n.

Group doet zaken in een transparante, eerlijke Vanheede Environment sfeer en op ethische Group adviseert haar wijze. partners, aannemers hen om consistentie en leveranciers over in dit beleid te bereike haar beleid inzake CSR n. en zal samenwerken met

Towards a circular world , in a sustainable way

53

Environmental policy

Sustainable purchasing

As much as possible, Vanheede aims to minimise the negative impact and maximise the positive impact of its activities on the environment, the climate and sustainable consumption of natural resources. As a business in the environmental sector, we apply a clear environmental policy to our own work that is supported by all parties involved and at every level.

As a sustainable business, Vanheede takes responsibility for its supply chain by adhering to a sustainable purchasing policy. Consultation and collaboration with suppliers and customers contribute to a transparent, efficient and advantageous purchasing policy that improves processes for all involved.

Sustainable Procur ement Policy

Environmental Policy Vanheede Environment Group

voeren met een minimale negatieve impact en een Vanheede Environment Group streeft ernaar om haar activiteiten uit te gebruik van natuurlijke grondstoffen waar mogelijk. maximale positieve impact op het milieu, het klimaat en op het duurzaam van een eenduidig milieubeleid waar alle betrokAls milieubedrijf engageert ze zich eveneens intern door de implementatie ken partijen zich voor inzetten, op alle niveau’s.

Dit doet ze door middel van: 1. Maximale materiaal-valorisatie op uitdagingen zoals o.a. het belang van sorteren aan Vanheede investeert continu om proactief een antwoord te kunnen bieden de bron, het vermijden van restafval en het ontwikkelen van nieuwe recyclagetechnieken.

2. Duurzame energieproductie onze gezondheid en levenskwaliteit te behouden, Om klimaatveranderingen op lange termijn onder controle te houden en zetten we in op energie-efficiëntie en hernieuwbare energie.

3. Terugdringen van luchtemissies d.m.v. partnerships voor lagere emissies, efficiëntere Vanheede zet zich in als pionier om nieuwe technologieën en werkwijzen mobiliteit, etc. te testen.

4. Sluiten van de waterkringloop en de waterkringloop gesloten wordt.

Waterzuiveringsinstallaties zorgen ervoor dat er geen water verloren gaat 5. Verhogen van bodemkwaliteit vermijden.

Terreinen worden verhard en overdekt om insijpeling van afvalwater te

Vanheede Environment Group engageert zich om:

•

de milieueffecten van haar activiteiten te identificeren, beoordelen en controleren. op het milieu en van de manieren waarop deze medewerkers bewust te maken van de impact die het bedrijf kan hebben impact het meest effectief kan worden geminimaliseerd. medewerkers bewust te maken van correct sorteren aan de bron. afval. medewerkers bewust te maken van correcte beheersing van eigen geproduceerd in te zetten op duurzaam aankopen om de circulaire economie te bevorderen. leerpunten te delen en ervoor te zorgen dat haar samen te werken met klanten en industriepartners om de belangrijkste

•

aanpak zo effectief mogelijk is. bij de ontwikkeling van gebruik te maken van universitaire en regelgevende instanties om te helpen

• • • • •

• • • • • • • •

Customer reviews demonstrate satisfaction

oplossingen voor milieuproblemen. bij het ontwikkelen van economisch samenwerking en begrip te bevorderen met het publiek en overheidsinstanties haalbare en milieuvriendelijke doelstellingen voor afvalwaterzuivering. het management. door herzien laten te regelmatig -taakstellingen en milieudoelstellingen milieu-incidenten te rapporteren. verbeteringsideeën terug te koppelen naar haar milieuprocedures. te zorgen dat ze zich voortdurend verbetert. haar prestaties te meten aan de hand van vastgestelde doelstellingen om minimum te beperken, operaties en technologieën te ontwikkelen en verbeteren om afval tot een veilig en verantwoord te verwijderen. gezondheids- en veiligheidsrisico’s tot een minimum te beperken en afval n door te voeren in al haar gebouwen, installaties het water- en energieverbruik actief te beheren en efficiëntiemaatregele en apparatuur, overal waar dit kosteneffectief is. met inbegrip van het besparen van energie, te zorgen voor een verantwoord gebruik van energie in het hele bedrijf, hernieuwbare in plaats van niet-hernieuwbare het verbeteren van de energie-efficiëntie en het geven van voorkeur aan

Vanheede Environ

ment Group

Als duurzame onder neming wil Vanheede toeleveringsketen opnem en aan de hand Environment Group haar verantwoordelijk leveranciers en afnem heid in haar ers resulteert in eenvan een duurzaam aankoopbeleid. Overl van alle betrokken partij transparant, efficiënt eg en samenwerking en. en gunstig aankoopbel eid dat processenmet verbetert Vanheede Environmen t Group werkt enerzijds die goederen aanleveren samen met leveranciers die materialen aanle Group samen met afnem ter ondersteuning van bedrijfsproc veren, alsook leveranciers essen. Anderzijds werkt ers die zich ontfermen die gerecycleerde en Vanhe over afvalv ede gevalo Enviro erwer riseerde materialen inzett nment king verder in de keten rekening gehouden met , alsook met afnemers en in hun zowel de prijs, kwalit processen. de aanko partijen. eit en levertijd, alseigen op en afzet wordt met de sociale enBijmilieu aspecten van de betro er Vanheede Environmen kken t Group is toegewijd aan: • Het vaststellen van doelstellingen en actiep lannen ter ondersteun voortdurende verbetering ing van dit beleid, en het nastre van haar praktijken. ven van • Het geven van priori teit aan leveranciers die duurzame en ethisc en die dergelijke prakti he praktijken hebben jken binnen hun eigen ingebed in hun organ toeleveringsketen aanst • Het voldoen aan isatie uren. alle toepasselijke vigere nde wetgeving en deze te overtreffen.

In overeenstemming met onze

toewijding aan dezelfde normen in hun bedrijfsvoering nastre de hoogste normen verwachten we dat ook onze leveranciers ven. Hierbij wordt gelet en afnemers op volgende aspecten:

Een circulaire wereld

Onze leveranciers en afnemers engageren zich voor een circula • het behoud van ire wereld. Dit doen hulpbronnen, waaro ze door: nder het gebruik van • afvalbeperking, energie, water en mater zowel binnen hun eigen ialen. activiteiten als bij hun • te voldoen aan alle externe activiteiten. toepasselijke milieuwetten in de respectievelijke • initiatieven te nemen landen /jurisd icties. om een grotere milieu verantwoordelijkheid • vermindering van te bevorderen. de uitstoot van broeik asgassen en andere schade lijke stoffen voor het milieu

.

Bedrijfsethiek

Onze leveranciers en afnemers zijn ethisch in al hun bedrijfsfacett • Alle relevante intern en. Dit doen ze door: ationale en nationale wetten met betrekking • Aan te tonen dat tot ethisch zakendoen er procedures bestaa na te leven. n voor het voorkomen van: • Witwassen van geld • Fraude, omkoping, corruptie • Belangenconflicten • Schending gegeve nsbeveiliging

Arbeid en mensenre

chten

Onze leveranciers/afnem ers zetten zich in voor de samenleving. Dit • te voldoen aan alle doen ze door: toepasselijke wetten , in overeenstemming • het verbieden van met de Universele Verkla slavernij en het gebrui ring van de Rechten k van gedwongen, gebon van de Mens.

• het verbieden van den of kinderarbeid onwettige discriminatie in de hele toeleverings en intimidatie voor een keten. veilige en inclusieve werkomgeving.

energie wanneer dat haalbaar is.

Towards a circular world, in a sustainable way

Towards a circular world , in a sustainable way

People have never been so concerned with transparency as they are today, and many seek input from online reviews when making their decisions. To keep up with this development, Vanheede decided to adopt a B2B approach by working with Trustpilot, an online system for transparent registration of customer reviews. This instrument processes customer input in real time to create a result – the TrustScore – that is shown as a rating from one to five stars.

Vanheede’s TrustScore rating is 4.5 out of 5 stars, or ‘excellent’. This is a clear sign that our customers have confidence in our business and would advise new customers to trust us too.

54 Malik Zatar has worked as a crane truck driver at the Quévy site since 2018, collecting organic and non-hazardous industrial waste in the Brussels, Wallonia-Brabant and Hainault region.

He is passionate about his work, and would not want to work anywhere else than at Vanheede.

He is also constantly on the lookout for ways to improve his work and that of his colleagues.

In fact, it was him who came up with the idea of using a crane truck with a compactor to simplify his work. Thanks to this idea, he received a personalized truck “By Malik Zatar”.

I feel like I learn something new every day. Each new day brings a new challenge.

PASSION

PLANET

“What I enjoy about this job is the variety and the diverse working environments. Every day brings something different: traffic, the weather, meeting people, solving minor problems with access or parking.

When I set off for work, I can never predict exactly what my day will bring.

Adaptability is really essential in this job.”

“Working for an environmental company has really woken me up.

Nowadays I avoid disposable packaging as much as possible when I’m shopping, and I pay more attention to sorting waste. I also try to show my friends and family just how important it is to manage waste properly. I am so proud when my daughter, who is barely three years old, throws her own nappies in the bin!”

55

Our values in practice Values work

PRIDE

PEOPLE

PROFIT

“The human dimension is very important to me. I like to talk to customers and take the time to ask them how they’re doing. People often thank me for the work I do, and sometimes a customer will even offer to help. I find that heart-warming. It motivates me to continuing doing my very best.”

“When I have an idea that could improve efficiency or the quality of my work, I work it out and present it to my managers. I don’t think only in terms of what it means for me, but also what it can do for Vanheede, our customers and my workmates.”

“For the past few months I have been a mentor for new drivers. I have a lot of experience, so I am able to anticipate their questions. I also know what kind of challenges they will face, so my role is to help them respond in the best way. I am so proud of the work I do.”

56

Balance sheet

3 About our results

The consolidated balance sheet of the year 2020 is closed with a balance sheet total of K€ 140.387.

On the assets side the book value of tangible fixed assets has increased. The investments for the financial year amount to K€ 21,907. Important achievements here are the purchase of a piece of land (Roeselare-Haven), the construction of a gas injection system and the completion of the automatic washing machine installation in Quévy, the start-up of a new lab in Dottignies, a water buffer basin in Rumbeke and the construction of a new office complex in Antwerp. With respect to the accounting policies there are no modifications compared to last year.

The amounts falling due within one year have slightly increasing, especially in the area of trade receivables.

The available liquid assets amount to K€ 13,191. The liquidity level amounts to 1.15, which is sufficient to meet all obligations in the short term.

Due to the positive result of the financial year (see info under “profit and loss account”) the own capital has increased. The provisions for risks and charges mainly consist of the established provision for the after-care of our landfill site. The overall provisions have slightly decreased.

On the debt level the long-term and short-term financial debts together are stable (LT financial debt is decreasing, ST financial debt is increasing). The commercial debts as of 31/12/2020 are lower than the previous financial year.

The solvency ratio of Vanheede Environment Group has increased and is very healthy: 45.04%; we hereby take into account the subordinated long-term ‘DACAR’ loan (M€ 25), on which a repayment was made in the year 2020, that is added to the own capital (Dacar: family holding of the Vanheede family).

Jan Minne - CFO

57 KEY FIGURES

Sustainable growth Long-term investments The innovation drive at Vanheede is very strong. Every new technology also entails important investments that have to be feasible, highly-performing and profitable.

The financial management therefore requires the monitoring of quite a lot of parameters: gross margin, operating profit, solvency, profitability, ... The financial figures are reported for each legal entity and finally consolidated.

Financial section 2020

Consolidated balance sheet (in KEUR) ASSETS

2020

2019

LIABILITIES

2020

2019

Intangible fixed assets

4,771

5,840

Capital

3,353

3,350

Tangible fixed assets

79,122

73,925

34,872

24,378

Financial fixed assets

3,861

920

38,225

27,728

87,754

80,685

4,981

5,114

650

700

0

0

3,542

3,238

PROVISIONS, DEFERRED TAXES

4,981

5,114

Amounts falling due within one year

34,731

34,383

Debts falling due after more than one year

49,962

51,876

Liquid assets

13,191

12,032

Debts falling due within one year

45,735

46,197

518

982

1,483

1,105

CURRENT ASSETS

52,632

51,335

97,180

99,178

TOTAL OF ASSETS

140,386

132,020

140,386

132,020

FIXED ASSETS Amounts falling due after more than one year Stocks

Accruals and deferred income

Consolidated reserves OWN CAPITAL Provisions for risks and charges Deferred taxes

Accruals and deferred income DEBTS TOTAL OF LIABILITIES

Key figures The annual accounts 2020 (01/01/2020 -31/12/2020) of Vanheede Environment Group nv and its subsidiaries, as well as the consolidated annual account, can be consulted free of charge at the Central Balance Sheet Office of the National Bank of Belgium. We will give you a brief overview in this sustainability report.

58 Profit and loss account

Consolidated profit and loss account (in KEUR)

The non-consolidated turnover over the year 2020 has increased by more than 8% compared to last year; i.e. from M€ 172 to M€ 187.

The consolidated turnover has increased by about 9% to K€ 160,118.

The gross margin has increased (in % of turnover) compared to last year; from around 62% to over 64%. In absolute figures the gross margin has increased by more than M€ 12.6 (= + 14% compared to the year 2019).

The “other operating income” rises to K€ 2,255 due to the realisation of a number of operating subsidy dossiers and the positive result of a temporary business partnership with an external partner.

The “services and diverse goods” (code 61) and “own wage costs” (code 62) have increased. This increase remains, especially for “services and diverse goods”, below the percentage increase in turnover, which has a positive impact on the EBTIDA. The annual amortisation of the consolidation goodwill (at a rate of 5%) is separately mentioned in the consolidation under item “amortisation of consolidation differences” and amounts to K€ 1,056.

The depreciation and amortisation on intangible and tangible fixed assets are increasing, mainly due to the depreciation on the invested assets of the year 2019 (these will be included in the depreciation expense for a full calendar year in the year 2020) and the amortisation on the purchase cost of land (Roeselare Haven, year 2020).

The financial income and expenses remain fairly stable compared to the previous financial year.

Exceptional income and expenses remain limited and mainly concern capital gains and losses on the realisation of fixed assets.

The consolidated EBITDA of Vanheede Environment Group increases both in absolute figures (+ €9.8 M compared to last fiscal year) and in percentages compared to turnover (from 15.73% year 2019 to 20.54% year 2020). EBIT rises sharply, both in absolute figures and in percentage of turnover (M€ 15.12 and 9.45% year 2020 ; M€ 8.27 and 5.65% year 2019).

Taxes increase with the higher accounting and tax results.

The consolidated profit and loss account as per 31/12/2020 closes with a consolidated profit of K€ 11,135.

2020

2019

160,118

146,413

218

63

2,255

1,722

162,591

148,198

Purchases and subcontracts

57,183

56,003

Services and diverse goods

33,620

32,553

Remunerations and social expenses

36,756

34,420

Amortisations

16,882

14,157

-176

-457

Other operating expenses

2,146

2,197

Amortisations of consolidation differences

1,056

1,056

147,467

139,929

15,124

8,269

Financial income

419

373

Financial expenses

960

980

14,583

7,662

Exceptional income

193

387

Exceptional income

28

18

14,748

8,031

-7

-73

3,606

2,877

11,135

5,081

Turnover Changes in stocks/ produced fixed assets Other operating income OPERATING INCOME

Depreciations and provisions

OPERATING EXPENSES OPERATING PROFIT (LOSS)

PROFIT/LOSS FROM ORDINARY ACTIVITIES

PROFIT/LOSS OVER THE FINANCIAL YEAR BEFORE TAXES Withdrawals Taxes CONSOLIDATED PROFIT/LOSS

59 24,618

Summary of consolidated profit and loss account (in KEUR)

21,907

20,000

Subordinated ‘DACAR’ loan*

25,000

26,600

Corrected own capital

63,225

54,328

Balance sheet total

140,386

132,020

Solvency ratio

45.04%

41.15%

1.15

1.11

* see explanation page 56 - balance sheet

9.45%

6

5.65%

4

142,630

2

2.75%

3.71% 2.25%

2017

2020

2019

172,038

2018

5

2017

187,009

156,625

140,000

13.87% 13.48% 13.65%

2016

180,000

EBITDA evolution of EBITDA (in % of the consolidated turnover

EBIT evolution of EBIT (in % of the consolidated turnover)

20

30,000

124,712

100,000

15

80,000 10

60,000

28,898

16,882

10,538

11,401

12,709

14,157 15,000

13,522

15,309

16,390

19,837

2016

2017

2018

2019

2020

The non-consolidated turnover of the year 2020 has increased by 8% compared to last year; i.e. from K€ 172,038 to K€ 187,009

Amortisations evolution of amortisations (in KEUR) excluding amortisations consolidation goodwill

2020

2019

2018

2017

2016

2020

2019

2016

20,000

2018

5

40,000

2017

120,000

15

10 8

15.73%

10

Non-consolidated profit and loss account (in KEUR)

160,000

20.54%

20

Turnover evolution of turnover (in KEUR)

2016

Liquidity ratio

Investments evolution of investments (in KEUR)

2020

27,728

2020

38,225

2019

Own capital

50,000

5,000

2019

5,081

2018

11,135

2018

Net result

2017

23,025

2016

32,888

2020

EBITDA

100,000

12,177

160,118 146,413 135,907 125,082 110,170

10,000

2019

146,413

15,660

15,000

2018

160,118

Turnover

150,000

17,847

2017

2019

2016

2020

Operational cash flow evolution of operational cash flow (in KEUR)

60

Measuring points 2018

2019

2020

unit

25 10

27 9

34 7.32

numb

872,479 485,434 91.05

923,415 583,492* 94.21

904,844 507,889 94.62

ton

8.95

5.79

5.38

%

45,000,000

42,000,000

53,144,175

kWh

13,000

12,000

15,139

numb

24,033,074

33,617,366

26,931,218

kWh

Landfill gas

3,832,897

4,801,253

2,717,878

kWh

Wind energy

4,447,412

3,298,053

5,556,836

kWh

Solar energy

252,142

222,556

204,243

kWh

16,560,466

18,768,368

20,485,487

kWh

71,999

70,674

76,136

numb

5.68

5.37

4.92

lit.

50

60

64

kWh

PASSION

Process and product innovation

# FTE R&D % R&D budget against consolidated turnover

PLANET

Maximum material valorisation

Tonnage of processed waste Tonnage of new raw materials % recycling and valorisation of collected material (recycling, sorting, fermentation, composting, physical-chemical treatment, co-processing, incineration with valorisation) % elimination of collected material (incineration with elimination, landfilling)

Sustainable energy

# kWh production of green energy (electricity & heat) # households provided with energy by this

%

ton %

Source of energy production Biomass

# kWh electricity consumption # green certificates # litres of diesel consumption/tonnes of waste # kWh energy consumption/tonnes of sorted plastics

82

81

85

kWh

# kWh energy consumption/tonnes of recycled plastics

290

444

339

kWh

Average emission standard truck fleet (Sector average is 4.89)

5.11

5.33

5.6

78.59 21.41 33,451

74.54 25.46 29,544

72.65 27.35 52,681

m3

57.70 5

58.27 3

58.27 3

numb

# kWh energy consumption/tonnes of produced alternative fuel

Reduction of air emissions Closing the water cycle Increasing soil quality

% tap water % rainwater # m3 purified water (recycling) % paved surface # soil investigations

* Figure recalculated

% % %

Measuring points

PEOPLE

Attractive employer

% growth collaborators # fixed collaborators # collaborators Per region

100%

Per age

Luxemburg France

0,8 6.3

Wallonia

36.2

> 45

Per language

45.8

French

Per gender 51

Female

50%

Flanders

56.7

30 - 45

42.4

< 30

11.8

Dutch

2019

2020

unit

3.17 622 717

7.39 666 770

5.19 714 810

numb

Per type of employment 19.6

75%

Male

2018

% numb

Per category

Part-time

5.2

Full-time

94.8

Drivers

40.5

Employees

33.6

Labourors

25.9

80.,4

49

25%

Zero accidents

Severity rate Frequency rate

PROFIT

Sustainable growth

EBITDA Net result Balance sheet total Corrected own capital Solvency ratio Liquidity ratio Non-consolidated turnover Consolidated turnover

PRIDE

Customer loyalty

% customer satisfaction NPS score

0.77 58.42

1.07 65.78

1.18 55.83

Eg

18,554 2,876 124,847 53,249 42.65 1.30 157,834 135,907

23,025 5,081 132,020 54,328 41.15 1.11 172,926 146,413

32,888 11,135 140,387 63,225 45.04 1.15 187,009 160,118

keur

82 29

84 31

84 35

%

Fg

keur keur keur % keur keur

61

62

Balancing stakeholder and company interests To identify the focal points of our strategy for a sustainable future, we took a six-step approach.

1. An internal brainstorming session aimed at addressing key questions

2. Identification of challenges that are also ‘material’ aspects

3. Expansion to include a number of external stakeholders

1 What added value does Vanheede represent? Where does Vanheede make a difference, whether for itself as a business or for its partners and customers, society, or the environment?

These are issues that are important factors in Vanheede’s long-term strategy but also with regard to meeting the expectations of our stakeholders. To clarify who our stakeholders are, their interests, their impact on our operations and the extent to which they support our organisational goals, we used stakeholder mapping and took account of the following criteria:

In 2015 we expanded this approach to include a number of external stakeholders. With the help of the CSR think tank, we decided to extend our investigation beyond the international GRI reference framework for sustainability reporting, and also look at how we could contribute to the UN’s Sustainable Development Goals (SDG’s). The fresh perspectives that think tank members provided regarding entrepreneurship and the potential opportunities and challenges that lie before us proved to be of real added value

1 For which social and other trends and challenges does Vanheede hope to contribute solutions?

Brainstorming provided us with a longlist of relevant topics that we measured against the CSR sector passport for environmental companies compiled by our sector federation, Denuo, as well as sustainability reports issued by colleagues in our sector in Belgium and elsewhere.

1 what is this stakeholder’s impact/ influence on Vanheede?

1 what are this stakeholder’s interests vis-à-vis Vanheede?

Our primary concern was to identify stakeholder interests for a number of internal stakeholders. Some of our partners and managers shared their insights and challenges for the future.

Customers Board of Directors / Shareholders

Employees

Government

63

Sustainability report: approach 4. Transition to GRI standards In 2016 and 2017 we shifted from GRI G4 directives to GRI standards for our reporting.

5. In-depth interviews with selected essential stakeholders In 2018, Vanheede’s 50th anniversary seemed like the perfect moment at which to conduct in-depth interviews with selected essential stakeholders to discuss sustainability issues that are relevant for us. We collected their insights in the ‘about tomorrow’ section of our 2017-2018 sustainability report. Apart from this, we submitted the Vanheede sustainability policy to Master of Business Administration and Commercial sciences students at the Brussels campus of KULeuven, who carried out a thorough analysis in the scope of their study subject Corporate Social Responsibility (lecturer: Anouk Van de Meulebroecke).

6. The big Vanheede stakeholder survey In our rapidly changing society, the Methodology interests and expectations of our stakeholders are also subject to change. To gain a better understanding of current market dynamics and apply them to our sustainability strategy, we opened up a broad dialogue with our stakeholders in 2020-2021.

1. We compiled a long list of 100 socially relevant questions pertaining to the domain of our work.

2. We conducted an in-company dialogue to identify the 25 most relevant questions pertaining to the waste collection and waste processing sector, and then assessed their importance.

3. We conducted a dialogue with internal and external parties to assess the relevance of the 25 most important themes.

4. We compared our own interests with those of our stakeholders in order to compile a materials matrix.

Scope and approach This 16th sustainability report covers all activities of the Vanheede Environment Group nv (registered office: Beekstraat 25, 1080 Brussels, Belgium) in Belgium, Luxembourg and France. The report pertains to results in the year 2020 and is prepared according to GRI standards: Core option. As a family business, Vanheede recognises the importance of reporting annually on its sustainable business practices and results. Previous sustainability reports are available at www.vanheede.com.

CEO David Vanheede is a permanent member of the Board of Directors (Vamastine bv), along with commercial director Caroline Vanheede (Vanica bv) and director Claudette Descamps (Imdaca nv). They receive advice from an advisory committee consisting of an external expert, Karel Gielen, and an internal expert, Evelyne Vanheede-Decrans.

64

GRI reference-index GRI-standard reference (page) GRI 102 General disclosures 1. Organizational profile 102-1 Name of the organization 102-2 Primary brands, products and/or services 102-3 Location of the organization’s headquarters 102-4 Number of countries where the organization operates 102-5 Ownership and legal form 102-6 Markets served 102-7 Scale of the organization 102-8 Workforce 102-9 Describe the supply chain 102-10 Significant changes during the reporting period regarding the organization and its supply chain 102-11 Describe which way the precautionary principle is applied 102-12 Externally developed CSR charters, principles or other initiatives subscribed by the organization 102-13 Memberships of associations, where the organization exercises functions, provides financial contributions or considers its membership a strategic instrument 2. Strategy 102-14 A statement from the Board of Directors about the relevance of sustainable development for the organization and its strategy 3. Ethics and integrity 102-16 A description of the organization’s values, principles, standards, and norms of behavior 4. Governance 102-18 Governance structure

* https://www.vanheede.com/en/corporate-sustainability/

Cover, 2 7,10-13,17 2 7 5 7 8, 9 29 10-13 20-23 9 9 *

6

9, 20-23, 39, 52, 53

63

GRI-standard Reference (page) 5. Stakeholders engagement 102-40 List of relevant stakeholder groups engaged by the organization 102-41 Percentage of employees covered by a collective bargaining agreement 100% 102-42 Basis for identifying and selecting stakeholders with whom to engage 102-43 Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group 102-44 Most important feedback from stakeholders and how the organization has responded to that 6. Reporting method 102-45 Operational structure, report boundaries 102-46 Explanation of the process for defining the report content and implementation of reporting principles 102-47 List of material topics 102-48 Restatements, if any, of information given in previous reports 102-49 Significant changes in reporting compared to previous reporting periods 102-50 Reporting period 102-51 Date of most recent report 102-52 Reporting cycle 102-53 Contact point for questions regarding the report or its contents 102-54 Reporting in accordance with GRI standards 102-55 GRI content index 102-56 External assurance

62, 63 62, 63 62, 63

39, 41, 46, 47, 49, 50, 53, 62, 63 5 20-23 24-25 nvt nvt 5 june 2020 * 5 2 5 32, 33 n/a

65

GRI reference-index GRI-standard Reference (page) Material topics Economic Economic performances 103 Management approach 201-1 Direct economic value generated and distributed Environment Materials 103 Management approach 301-1 Materials used by weight or volume Energy 103 Management approach 302-1 Energy (consumption / production) within the organization 302-1 Energy intensity Water 303-1 Water withdrawal by source 303-3 Water recycled and reused Emissions 103 Management approach 305-1 Direct (Scope 1) GHG emissions Effluents and Waste 103 Management approach 306-2 Waste by type and disposal method Environmental compliance 103 Management approach Supplier Environmental Assessment 103 Management approach

44-47, 56-59 56-59, 61

32-37 32, 60 32-37 32, 60 60 37 37, 60 32-37 60 32-37 60 36, 37 50, 52, 53

GRI-standard Reference (page) Social Employment 103 Management approach 401-1 New employee hires and employee turnover Health and safety 103 Management approach 403-2 Types of injury, occupational diseases, lost days and absenteeism figures, and number of work-related fatalities by region and by gender Diversity and equal opportunity 103 Management approach 405-1 Diversity of governance bodies and employees Local communities 413-1 Operations with local community engagement, impact assessments, and development programs Supplier Social Assessment 103 Management approach Marketing and labeling 103 Management approach

38, 41 38, 61 41-43 61

38-41 61 36, 37

50, 52, 53 48-49

66

67

The making-of

Sustainable waste management: are you ready?

As a pioneer in sustainability, for over 50 years Vanheede Environment Group has been the ideal waste processing partner for businesses committed to social responsibility. We look forward to transforming your waste into materials that are new and useful, and we are always happy to advise you on how your waste streams can be recycled or repurposed using another valorisation method.

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