Performance Indicator and Description |
Information |
Partial/Full |
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. |
2010 Corporate Commitment to Sustainability: Strategic Growth, Profitability: p. 6–7
Our market leading position in bio-refined pine-based chemical solutions, our core and value-added innovations for target markets, and our ability to shift production and manage costs have enabled us to generate improving profit margins across diverse macroeconomic environments. While we were forced to remove production capabilities in 2009, those difficult decisions began to pay dividends in 2010 as we increased productivity in several facilities and benefitted from operating efficiencies.
| Component |
2010 Value |
| Direct economic value generated |
- |
| Revenues |
$931.8 MM
Net sales plus revenues from financial investments and sales of assets |
| Economic value distributed |
- |
| Payments to government |
$21.2 MM total |
|
Community investments |
$35,944 |
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EC3
Coverage of the organization's defined benefit plan obligations. |
Arizona Chemical offers employer sponsored retirement savings plans. In the U.S. this plan is known as a 401K plan. Arizona Chemical matches up to 8% of contributions (i.e. 70% match for the first 4% and 50% on the second 4%). Employees are always vested in their own contributions to the plan but employer matching contributions and investment income on these dollars vests at 100% after 3 years of service.
Additionally Arizona Chemical may contribute a discretionary amount to employee 401K savings accounts (known as a "Performance Award") each year that is based on a percentage of an employee's prior year's base earnings. Employees are automatically vested in the discretionary "Performance Award" allocation. In 2010, our U.S., participation rate was approximately 87%.
Arizona Chemical adheres to all national laws in the EU relating to retirement benefits. |
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EC4
Significant financial assistance received from government. |
Arizona Chemical received no government aid in 2010. To the contrary, we increased our own expenditures on efforts to prevent government financial incentives that would siphon our raw materials and underwrite their use by the renewable energy sector. Despite these efforts, Sweden, for example, gave significant monetary aid to the biodiesel industry to use pine based raw materials. This had a negative impact on our raw material cost and availability, and is an inefficient use of a natural resource. |
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EC5
Range of ratios of standard entry level wage at significant locations of operation
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In the U.S., the current minimum wage is $7.25 per hour. At Arizona Chemical entry level wages vary by position and job duties. Our company’s entry level wages in the U.S. are significantly higher than the minimum wage for both men and women. In 2010, the lowest hourly wage for a male was $14.18 per hour and for a female was $15.15.
In the EU, minimum wage varies with each country. As an employer seeking to recruit and retain high quality employees, we provide competitive wages at all levels. |
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EC7
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
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Hiring procedures vary depending on the type of job and skills required. Hourly and blue collar workers in the factories and laboratories tend to come from the local area, defined as being within a reasonable commuting distance. Our approach to recruiting these workers is based on using local media, job boards, professional recruiters and other local sources.
Professional and managerial employees likely come from national or regional candidates. Procedures for hiring these employees include use of local media, job boards, recruiters, college graduate recruiting and employee referral. Human resource professionals and managers use objective interview techniques in the final selection process.
All hiring is undertaken in accordance with local and national laws. Priority is given to the best skill match between the job and the candidate. |
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