arn sustainability report 2012
Working together to form lasting relations
o6
In production
27
Joining forces
40
Financial report
Recycling fee
The Netherlands is a clear frontrunner in Europe in terms of car recycling. End-of-life vehicle recycling is made possible by the disposal fee of
â‚Ź 45 paid by every new car buyer.
Thanks to this fee, the businesses in the car recycling chain (vehicle dismantling, collection, recycling
and shredder companies) together with arn guarantee the high-quality recycling of cars. In 2012, 83.7% by weight of end-of-life vehicles was
well spent
recycled in addition to which 12.4% by weight was recovered as energy. Performance at this level can no longer be referred to as disposal.
As a consequence, starting in 2013, the fee will be known as the recycling fee, since this term better reflects the real situation.
4 arn sustainability report 2012
Foreword malpractice or misconduct, in the interests of its contract partners. In that framework, arn is a member of a number of working groups, together with chain partners and representatives from government. Research has revealed that satisfaction with arn among vehicle dismantling companies rose in 2012. In 2013, once again, arn will make every effort to further improve its relationships, for example by intensifying communication. In 2012, arn commissioned a new software package that brings together all the processes in the internal organisation. As a result, arn is able to exchange data with its customers faster and more efficiently.
In an increasingly mobile world, in which awareness of sustainability is growing, it is essential that we handle raw materials as efficiently and sustainably as possible, in a continuous and proactive process. Based on this vision, arn sees it as its mission to encourage and promote transparency and progress in terms of environmental protection and sustainability in the mobility and recycling sectors. arn fulfi ls this mission through the exchange of knowledge, change management, recycling and innovation. In this manner, arn wishes to make an active contribution to the raw materials roundabout, in which waste materials are converted into reusable materials. arn is well on the way to achieving the European target of 95% reuse and recovery of end-of-life vehicles. A major step forwards in this process was taken in 2012, when the post shredder technology (pst) facility in Tiel went into production. Through collaboration with shredder companies, the delivery of sufficient shredder waste to arn coming from cars is guaranteed. At the same time, a raft of research projects is underway to identify sales channels for the highest possible level of recycling for materials from the pst facility. In Europe, arn is actively sharing its acquired knowledge in the framework of the s – life project, a prestigious project that aims to improve the sustainability of material use for modern cars on a European scale. arn recently merged with the Institute for Sustainable Mobility (IvDM), a logical step in the process of combining knowledge for the improved sustainability of the mobility sector. arn is and remains a powerful advocate for tackling unfair competition. arn views it as its task to bring to public note any
At the request of the foundation Scooter Recycling Nederland, arn is now acting as implementing body for the safe and environmentally-responsible recycling of scooters and mopeds. This Foreword is a fitting place for a critical comment about government policy on waste incineration furnaces. According to the National Waste Management Plan 2009-2021, it is permissible to incinerate car shredder waste. The overcapacity at waste incineration furnaces has resulted in a huge downturn in incineration charges. This development is having negative consequences for arn, forcing the organisation to set its processing charges for car shredder waste well below cost price, despite the fact that following processing by arn, shredder waste is returned to the chain at a much higher quality level. Without the necessary support from the government, all post-separation techniques lose much of their justification. To ensure that the raw materials roundabout truly functions, it is vital that the government considers this point in its policy making. At the end of 2012, it was decided to rename the disposal fee to recycling fee. This ties in better with the activities of arn, namely the highest possible quality recycling of materials. Once again in 2013, the recycling fee will remain set at 45 euro (including vat) per car, despite the rise in vat to 21% as from 1 October 2012. The amount available in the recycling fee fund remained practically unaltered in 2012. The fund is still necessary to allow us to collect and recycle end-of-life cars, now and in the future, free of charge. Economic expectations for 2013 in the Netherlands are not overly optimistic. Rising unemployment and further cutbacks are expected, for example in road building. These are just two of the problems that will reflect on the automotive sector. Forecasts suggest that sales of new passenger cars will once again fall. In conclusion, I would like to thank all external parties for the successful cooperation in 2012, and all staff at arn for their dedication to the organisation! Arie de Jong Managing Director arn Amsterdam Zuidoost, 11 June 2013
5
Contents
40 Appendix 1: Financial report 2012 42 Appendix 2: Vehicle fleet development 43 Appendix 3: Explanatory notes to arn materials 44 Appendix 4: Internal organisation 45 Appendix 5: Financial report 2012 arn Management Plan 46 Appendix 6: Independent assurance report
Colophon Publication Stichting Auto & Recycling en arn Holding b.v., P.O. Box 12252, 1100 ag, Amsterdam zo Text VanderHeijden Communications: Yvonne van der Heijden. arn: Janet Kes. Total Identity: Yvonne van de Wal.
Design and realisation Total Identity: Sieds de Boer, Julius van der Woude, Stijn van Diemen, Yvonne van de Wal, Jochem Duyff, Arjen Firet, Guus Witteveen. Photography Jack Tillmans, Lars van den Brink (cover). Translation sbv Andere Taal Printing HuigHaverlag Printing. Paper: Cocoon, manufactured from 100% fsc recycled pulp, chlorine-free.
The 2012 sustainability report is available in Dutch and English. Should different interpretations arise, the Dutch language version prevails.
Everyday work
6 arn sustainability report 2012
Since its establishment in 1995, arn has developed to become the leading centre of expertise for recycling in the mobility sector. arn shares its knowledge and experience with others, and operates as a network organisation. Everyday work at arn ensures the broadening and deepening of this knowledge and experience, thereby laying the foundation stones for tomorrow’s activities.
More production, better production At the launch of the pst facility, the production process experienced a number of teething troubles. These problems have largely been eradicated, and together with suppliers the production process has been further optimised. Above all fibres deliver greater volumes than expected. The aim of arn is to ensure that all businesses that shred Dutch cars have their shredder residue processed in Tiel. Through further automation of discharge transport it was possible to reduce the number of team members from eight to just six. In the past, the fi nished product was taken to the storage area by forklift truck. This process is now almost fully automated. The result is higher production at lower production costs. Following optimisation of fibre processing and plastic separation, in 2013, the pst facility can now focus fully on increasing production and widening the sales market. arn aims to further improve fi nal quality by also removing metals from the end fraction. The goal is to obtain the iso 14001 certificate for the organisation’s environmental management system in 2013.
A day at the pst facility Every day, 100,000 kg of shredder waste arrive at the pst facility. This waste is separated into various material fractions that can each be recycled in a different way. The daily capacity of the processing installation was raised in 2012 to 100 tonnes of shredder waste. To be able to process that volume, a second group of operators has been trained. The pst facility is now able to run continuously between 6 o’clock in the morning and 10 o’clock at night, with two teams of operators. Since the spring of 2013, the facility will in fact operate a three-shift service. This approach is more efficient, because starting and
stopping production is very timeconsuming. This change has made it possible to raise daily capacity from 100 to more than 200 tonnes. In 2013, arn aims to achieve an annual production of 60,000 tonnes. This change also brings the recycling target of 95% reuse and recovery within reach, by 2015. Eventually, production should reach the maximum capacity of 100,000 tonnes a year. Shredder waste from Dutch cars amounts to 40,000 tonnes. arn therefore also brings in other material flows in order to ensure full capacity utilisation.
7
Recycling of cars
At the heart of society
arn collects the recycling fee paid on every new car, and using that money makes sure that the statutory target for end-of-life vehicles is achieved. To that end, arn collaborates with more than 300 chain partners, such as vehicle dismantling companies, collectors, recycling companies and shredder companies. arn forms the fi nal link in the chain with its Post Shredder Technology (pst) facility, fi rst opened in 2011 in Tiel, and transformed in the second half of 2012 from a trial plant to a production company.
There is much interest in the process for dealing with shredder waste, as built by arn. Foreign groups regularly visit the pst facility for a guided tour. Groups of visitors from Portugal, Russia, Greece, Turkey and Scandinavia visited Tiel in 2012. The facility also opened its doors to representatives of Dutch government bodies, other operators in the sector and school groups. In addition, the pst facility acts an allround learning establishment. In 2012, five students from higher professional education completed internships at the laboratory, in production and in the fi nancial department. Six pupils from secondary education enjoyed an introductory traineeship, and four members of arn staff participated in the vapro vocational training programme for operators and technicians.
Responsibility for the recycling of end-of-life vehicles in the Netherlands is entrusted to arn. arn is responsible for the correct processing of cars registered for dismantling at the car dismantling companies affi liated to arn, as laid down in the End-oflife vehicles Management Decree (Bba). As from 2015, the statutory task and target is the reuse and recovery of 95% of the weight of an end-of-life vehicle. At least 85% must be reused and recycled; the remainder may consist of energy recovery. At present, the statutory standard for reuse and recovery is 85%, with at least 80% reuse and recycling.
arn and the outside world Recycling is all about fi nding the right balance between what is technically possible and the related costs. arn strives to achieve the highest possible quality recycling of shredder waste, at an acceptable price. The appendix on page 42 shows the development of the vehicles on the road, as relevant to arn.
High-quality recycling arn makes shredder waste suitable for reuse in sellable products. The recycling of materials contributes to achieving the recycling target. In addition, the highest possible quality recycling is essential for the viability of the pst facility. High-quality recycling results in lower recycling costs and increased sustainability and efficiency in the mobility chain.
Shredder waste Shredder waste is the residue left after a car has been dismantled and shredded. The liquids and a number of materials are removed from the car, at which point the car is taken to the shredder. Here, the car is ground into shredder waste, and the metals are separated out for further processing. Whatever remains is known as shredder waste, a mix of different materials, which is difficult to recycle. Using mechanical separation techniques in the pst facility, useful raw materials are recycled from the shredder waste. These raw materials can be widely used for a range of applications.
Mass balance tests Mass balance tests were carried out on all batches of shredder waste that arrived at the pst facility, in 2012. Shredder waste is very heterogeneous in its composition, with a mix of metals, fibres, plastics and mineral fractions (a sand-like fraction). In a mass balance test, the value of the shredder waste is determined. The shredder waste delivered daily from the shredder company is broken down into 22 different materials. The results of the test are used to set the charge for the shredder company for the processing of its shredder waste. The knowledge acquired by arn from its mass balance testing is needed to adjust the process methods, and to make it possible to evaluate the end fractions produced. By processing shredder waste, arn is able to raise the recycling percentage.
8 arn sustainability report 2012
Street name signs and children’s furniture
To achieve the 95% target and to organise the recycling chain as efficiently as possible, together with the market, arn is constantly in search of new sales opportunities for the recycling of end-of-life vehicles. To fi nd possible applications for the mineral fractions, arn collaborates with npsp Composieten. This Haarlem-based company produces sustainable, composite materials for construction, design, mobility and industry. npsp and arn have jointly developed the new product BlueRoots. BlueRoots consists of mineral fractions from the pst facility. By mixing these mineral fractions with a
binding agent, and subsequently casting the resultant mass, a whole range of applications have been opened up from street name signs and street furniture through to kitchen work surfaces and children’s furniture.
BlueRoots is an excellent example of recycling that helps prevent low-value processing methods such as dumping. Prior to collaboration with npsp, students in industrial design at the Delft University of Technology carried out research into the product opportunities for the various materials. The fi nal choice went to
Waste management in garages arn also uses its knowledge of end-of-life vehicles for waste flows in the car replacement market. arn advises garages on waste management issues, and organises their overall management. An extensive network of collection companies and processing companies guarantees an environmentally friendly solution to the waste problem.
Challenge! In order to compress fibres, the pst facility is required to raise the temperature to between 150 C° and 160 C°. Adding water then cools the fibres, but this is a difficult process. The quantity of water must be precisely monitored; too much water makes the fibres too wet, while insufficient water can lead to fires. The ideal quantity has now been calculated.
composite materials, and following technical studies; the recipe for BlueRoots was determined. The aim is to bring the fi rst customer(s) on board in 2013. Thanks to collaboration with npsp, arn now knows that it is no easy task to develop and bring to market a sustainable product. Nonetheless, it has been a positive experience. BlueRoots is the proof that even very difficult-to-recycle fractions can be made suitable for material recycling. As a result, arn is contributing to reducing the waste mountain, reducing CO 2 emissions and increasing the recycling percentage of cars.
erp Navision In 2012, arn commissioned the erp Navision software package, responsible for successfully managing all processes in the internal organisation. This means that arn switched from a series of different it systems to a single integrated system. One of the consequences of the introduction of Navision is a uniform customer relation management process. The contact details for customers have been streamlined. This improvement enables arn to communicate faster and more efficiently with its customers.
Online registration systems To determine the number of starter batteries and high-voltage batteries placed on the market each year, arn works in close collaboration with the implementing organisation Stibat. Via the online register myBatBase, companies can specify the quantities of all types of batteries that have been placed on the market. Collection companies and recycling companies can then record the batteries they have collected and recycled in the online system MyBatteryBalance. Both arn and Stibat use this system.
7%
9
Sustainable in every respect
Lithium-Ion batteries in 2020 It is estimated that by 2020, 7% of new vehicle registrations will consist of fully electrical vehicles and the new generation ‘plug-in’ hybrid cars. These vehicles are often equipped with Lithium-Ion (Li-Ion) batteries. Expectations suggest that the fi rst Li-Ion batteries will reach the end of their useful life in around 2020. If an importer aims to collect and process (a proportion of) its own Li-Ion batteries, arn can offer tailor-made solutions.
Dismantling
Transport
Intermediate storage
One important task of arn is to monitor the end-of-life vehicles travelling through the recycling chain. An end-of-life vehicle transfers from a vehicle dismantling company via a shredder company to the pst facility, or the material is transported from a collector to a processor. In consultation with its chain partners, arn carries out projects aimed at achieving greater sustainability in the mobility chain. In selecting companies for cooperation, arn also operates a system of requirements in terms of sustainability. In tenders for recycling companies and collection companies, for example, requirements are listed in the tender documents in respect of the company’s own vehicle fleet. Another real-life example is the different approach to the collection of car tyres. Since 2012, intermediate storage has been discontinued, resulting in considerable savings in terms of transport kilometres and costs.
Transport
Consumer survey In 2012, arn organised a survey among more than one thousand consumers into the name awareness of the disposal fee and of arn. This survey revealed that generally speaking, Dutch consumers are positive towards the recycling of products. They associate recycling with green, sustainability and necessity. The majority of people are aware that a disposal fee is collected for certain products, intended for the sustainable processing of those products. Many consumers, however,
Processing
Awareness of disposal fee proved unaware of the disposal fee paid for cars. What actually happens with that the disposal fee is only known to a very limited group. arn as an organisation is almost entirely unknown to the general public. A campaign will be launched in 2013 to bring the disposal fee to the attention of the consumer. The aim of the campaign is to generate greater awareness of the performance of the automotive industry in terms of recycling.
22%
15%
54%
Known
Unknown
78%
63%
Disposal fee general
22%
24% 22%
Is there a disposal fee for cars? Yes
Probably
No
You recently purchased a new car. Did you pay a disposal fee? Yes
I think so
No
Management of end-of-life car batteries arn in Europe End-of-life car batteries are products that require responsible recycling. In collaboration with the Stichting Batterijen (Stibat), arn is responsible for implementing the Battery Management Decree (Bbb) for car batteries. Based on the Car Battery Management Plan, arn offers manufacturers and importers who fi rst place a battery on the market a collective solution for compliance with the obligations contained in the Bbb Decree. To participate in the management plan, they are required to pay a management fee for every battery, which is reset each year. At the end of each year, arn submits a report to the Ministry of Infrastructure and the Environment in return for the management fee. arn also provides a national network of handover points where private end users can hand in their starter battery, free of charge.
Ten national implementing organisations from countries in the European Union established the European umbrella organisation Eucobat, for batteries, in 2012. Alongside Stibat, arn has also become an affi liate to the organisation. Eucobat is a platform on which knowledge and experience about the safe dismantling of high-voltage batteries from electrical and hybrid vehicles are exchanged. Eucobat is also involved in research into possibilities for a second life for the batteries. arn is already heavily involved in research in this field, and is able to submit much useful information. arn in turn has a great deal to learn from countries like Norway, where electrical cars have been widely used for more than twenty years.
“Mosae osae volende pel is res atur mollici millesedatur mollici millesed el ipsunti velist el ipsunti nvelist� Dimitri Janssen Projectleider NPSP
pst facility Plastics are separated from one another at the pst facility using the sink-float technique.
Beelds
“Mosae osae volende pel is res atur mollici millesedatur mollici millesed el ipsunti velist el ipsunti nvelist� Rob van der Linden Projectleider arn trainingen
spread
Tomorrow’s work 12 arn sustainability report 2012
Over the past twenty years, arn has acquired a great deal of knowledge about the recycling of cars and the materials released in that process. In sharing this expertise with chain partners, the focus is on issuing advice on chain management and recycling technology. Through cooperation with others, arn is continuously establishing new knowledge and experience.
The s_ life-project ensures close collaboration between European clusters in the automotive industry, for the development of green solutions right across the value chain.
Cooperation with market parties The aim of arn is to return finished products as high as possible in the production chain, by using the best environmental technologybased solutions and high-quality end technologies. To succeed in that aim, arn actively searches out market parties with whom it can develop and manufacture new products, using the recycled materials. In that process, arn contributes its material knowledge and recycling technology, and is able to fi nance trial projects. The partners contribute their knowledge and technology for converting recycled materials into sellable products. The eventual goal is to achieve 95% material reuse and recovery. Sustainability and continuity must go hand in hand. The fi nal result should be a reduction in chain costs. Market parties in search of a partner are in fact themselves now actively contacting arn.
13
arn in Europe The unique knowledge and experience of arn in chain management and technological innovation have not gone unnoticed, in Europe. arn was invited by the European Commission, together with six European automotive industry clusters, to participate in a regional collaboration project. S(ustainable) _ life. The goal of this prestigious project is to chart out current European research within industry, science and government on material use in cars, and to formulate targeted innovative programmes across the entire material chain. This combined knowledge should then form the basis for a European policy for sustainable material use in future cars. With its expertise in end-of-life treatment, arn represents the fi nal phase in the material cycle: recycling and valorisation, in other words conversion into commercially viable products. Knowledge exchange in the Netherlands and within the collaborating regions is an important tool for realising the objectives of the three-year s_life project, namely the sharing of European knowledge and experience. That in turn calls for an initial inventory of existing knowledge on raw material efficiency as well as a strengthweakness analysis in the various regions. As part of the s_life project, together with the other participants, arn will be developing a vision on the state of the automotive chain, in 2030. A research agenda will also be drawn up, identifying the actions to be taken for identifying solutions for the major bottlenecks. arn will draw up an action plan with projects to be rolled out by arn itself or other Dutch centres of excellence on a Europe-wide basis. This action plan should be unveiled in June 2013. A sounding board group has been assembled of people from everyday practice in the automotive industry. On behalf of the Netherlands, this group has representatives from importers and the recycling industry. One of the challenges in achieving greater raw material efficiency in cars relates to developments within the automotive industry itself. The strategy of car manufacturers is primarily aimed at reducing CO 2 emissions. In that light, they are focusing on the production of less heavy vehicles, by using lighter materials. However, fibre-reinforced plastics used to replace metals are more difficult to recycle
than traditional steel and aluminium. The emissions and energy requirements during the use of these cars will fall, but the total energy requirement for raw material extraction and recycling will rise. With its pst facility, arn effectively offers the chain a practical facility for investigating the recycling of the complex materials from the cars of the future.
Efficiency stroke With an eventual capacity of 100,000 tonnes per year, there is also plenty of space for processing more shredder waste than the 40,000 tonnes generated by Dutch cars. By deploying the installation on a larger scale, it is also possible to achieve a technological efficiency stroke for the processing of car shredder waste. This in turn will lead to greater raw material preservation.
srw Metalfloat The company srw Metalfloat GmbH, Germany (part of Scholz AG) was in search of a technique for retrieving plastics from shredder residue. The question posed was whether one specific technique was suitable for the shredder residue from their own process. arn opted for a large-scale practical trial to identify the perfect technology. The purpose of this trial was twofold: determining the processing capacity of the technology for the specific shredder residue, and identifying the characteristics of the output flows for each of the shredder residue flows selected by the customer. In just two days, four large batches of material were processed. Mass balances were drawn up for all incoming and outgoing flows. Through sampling and analysis, the quality of all materials produced was determined. On the basis of these observations, a recommendation was made for a situation in which the materials could be processed using the analysed technique. In this way, srw Metalfloat GmbH was able to draw up a solid business case for the possible processing of each of the flows of shredder residue, using the intended technology.
14 arn sustainability report 2012
Russia faces a huge problem in the disposal of end-of-life vehicles. Awareness in that country of the need for recycling is also growing.
15
Even further afield: Russia There is also interest in the expertise of arn beyond the boundaries of the European Union. Together with the Dutch Government’s Road Transport Department (rdw), over the past few years, arn has established contacts with one of Russia’s largest vehicle manufacturing regions Nizhny Novgorod, some 500 kilometres east of Moscow. The initial introduction dates back to 2010, when arn took part in a seminar about Russia’s first dismantling programme. arn is now supplying knowledge on chain management, to allow a recycling infrastructure to be established in Russia. The Russians have a number of reasons for establishing a recycling system. Russia faces a huge problem in disposing of end-of-life vehicles in its own country, while awareness of the need for recycling is growing in the Russian automotive industry. Furthermore, it is becoming increasingly fi nancially attractive to recycle vehicle materials. The most important driving forces are clearly the European requirements on recyclability and the recycling infrastructure if Russian vehicles are exported to the European Union (eu). In addition, after joining the World Trade Organisation wto in August 2012, Russia was forced to halt import duties on cars. Instead, they now charge a recycling fee. The spending of the funds thus generated needs to be accounted for. Local car manufacturers are exempted from the recycling fee, if they contribute to a recycling system.
By building up local contacts, arn has entered into several joint ventures: in Russia with a university and a knowledge institute; in the Netherlands with the rdw, the National Aerospace laboratory (nlr) and the University of Twente. This collaborative venture has won the tender for the exchange of knowledge in respect of recycling and car materials in Russia. As well as knowledge of recycling, arn will also contribute expertise on recyclability requirements for new cars. This is the fi rst time that arn has undertaken any activities outside the eu.
arn is deploying its knowledge on car recycling in Russia. This is the first time that arn has undertaken activities outside the eu. eu
s_life In the s_life project, European ‘regions’ from the heart of Europe’s automotive industry are pooling their resources: • the German clusters Bayern Innovativ and rkw Baden-Württemberg • the French Pôle Véhicule du Futur • the Italian Ceipiemonte cluster • the Slovenian acs cluster • the Belgian InterfacEurope • arn s_life distinguishes four main phases in the material cycle: raw materials management, production phases, actors in the life phase and recycling and valorisation. With its expertise in the field of chain management and recycling technology (end-of-life treatment), arn represents the final link within the s_life consortium.
Kennisuitwisseling Europese partners in de automobielindustrie.
From rules to 18 arn sustainability report 2012
By providing figures on the achievements regarding reuse and recovery of endof-life vehicles, arn accounts for its activities to its customers, and on behalf of its customers to the legislator and to the public who pay the recycling fee. In addition, arn operates two tools (developed by arn itself) for measuring and promoting sustainable business practice in the mobility sector: Approved Sustainability scans and Ecotest.
Environmental performance 2012 The basis for the processing of end-of-life vehicles and accounting for that activity is laid down in the European Directive 2000/53/ec. The Netherlands implemented this Directive in 2002 in the End-of-life vehicles Management Decree (Bba). In the Netherlands, the car importers, which are represented by rai Vereniging, are responsible. arn ensures compliance with the requirements of the Bba on their behalf. The Bba specifies for example that at least 85% of the weight of any end-of-life vehicle registered in the Netherlands must be reused and recovered. Of that amount,
Table 1 – Materials from de-pollution and dismantling (in kg based on processed volumes) For an explanation of the establishment of the specified volumes in this table, refer to the appendix on page 43. LoW code
13 02 05 16 01 07 16 01 13 16 01 14 14 06 01 16 01 16 16 06 01 16 01 03 16 01 20 16 01 19 16 01 99 Total
Material
non-chlorinated mineral oil oil fi lters brake fluids antifreeze fluids refrigerants tanks for liquid gas lead-acid batteries end-of-life tyres glass plastics waste not recorded elsewhere
Reuse
Recycling
Product reuse
Material reuse
46,114,460
910,916 28,548 7 1,422 592,610 2,774 92,893 564,953 3,868,972 3,706,075 1,015,330 0 10,854,493
Energy recovery
Total recovery
Disposal
19,590 34,892 1,504 31,190 0 0 17,473 0 0 150,790 0 255,439
930,506 63,440 72,926 623,800 2,7 74 92,893 582,426 3,868,972 3,706,075 1 ,166,1 20 0 11,109,932
48,974 0 2,255 157,587 212 0 0 0 366,535 124,547 0 700,110
Tabel 2 – Achieved recycling levels (in kg, based on processed volumes and weighing details) Reuse
Recycling
Recovery
Product reuse
Material reuse
Material reuse + energy Product reuse + material reuse recovery
Total reuse and recycling
Product reuse + material reuse + energy recovery
46,114,460 24.0%
114,013,915 59.7%
137,719,127 72.1%
183,833,589 96.1%
160,128,376 83.7%
Total reuse including recovery
Total number of end-of-live vehicles: 187.143 / Average weight per vehicle: 1,022 kg.
results at least 80% must be reused and recycled, supplemented by 5% energy recovery. The recycling target as from 2015 has been raised to reuse and recovery of 95% of the weight. Of that total at least 85% must be reused and recycled, supplemented by 10% energy recovery.
the level of reuse. This share is determined by weighing the disassembled end-of-life vehicles, in 2012 on average 712 kg. Reuse is the average orad weight (1,022 kg, see page 29) minus the weight of the disassembled end-of-life vehicle, less the materials removed via arn.
The European Commission has drawn up detailed rules for recording these percentages and the way in which the Member States of the European Union should report on the results to Brussels. arn submits a report to the Ministry of Infrastructure and the Environment each year in accordance with these rules.
Dismantling companies remove the so-called arn materials, on behalf of arn. These materials are sent to recycling companies contracted by arn, by collection companies also contracted by arn. The recycling companies submit data on the mass balance, explaining how much of the processed material was recycled, incinerated with energy recovery or dumped. These materials appear in table 1 under their European List of Waste (LoW) code. Fuel (diesel, petroleum and gas) is not
Number of end-of-life vehicles In 2012, 196,763 cars were registered in orad (online registration system for
96.1% recovery.
vehicle dismantling) by the vehicle dismantling companies contracted by arn. 187,143 dismantled end-of-life vehicles were delivered to the shredder. Average weight of end-of-life vehicles In 2012, the average empty weight of all end-of-life vehicles was calculated at 1,022 kg, on the basis of orad reports with the Government Road Transport Department (rdw). Dismantling company share Dismantling companies sell parts and materials from cars, which are included in
included in the calculation of the level of recycling achieved. In 2012, 184,126 kg (diesel, petroleum and gas) was processed. Share of shredder companies Using a shredder test carried out in 2010, arn calculates the share in the recycling performance represented by Dutch shredder companies. In this shredder test, mass balances were determined for the entire recycling process, on the basis of which the share of the shredder company can be calculated. For end-of-life vehicles processed by foreign shredder companies, the individual mass balance details from
19
these companies are taken into account. The recycling share comprises mainly the metal separated from the end-of-life vehicles by the shredder company. Processing of shredder waste Since March 2010, (car) shredder waste has also been incinerated in a waste energy power plant with R1 status. The shredder waste incinerated by the plant counts as incineration with energy recovery. Several shredder companies supply their shredder waste to an incineration plant with R1 status. This share counts as energy recovery in the total environmental performance of end-of-life vehicles. As a result, the proportion of incineration with energy recovery as part of the total percentage reuse and recovery in 2012 is high, as was the case in previous years. Recycling performance 2012 Table 2 provides an overview of the recycling performance for the end-of-life vehicles that arrived at shredder companies in 2012. The reuse rate is 24%. The recycling percentage at 59.7% is the total of the arn materials (see table 1) and the metals recycled following shredding. The figures in table 2 show that in 2012, a total recycling percentage of 83.7% was achieved, on top of which a further 12.4% was recovered in the form of energy. This represents fulfi lment of the statutory requirements from the Bba, which demands that a percentage of at least 80% be reused and recycled, supplemented by 5% incineration with energy recovery. Over the next few years, the pst facility will above all contribute to an increase in the recycling percentage, from the current 83.7% to at least 85%. In the calculations, account has been taken of the plastics processed by the pst facility in 2012. The remaining part of the shredder waste processed in 2012 by the pst facility has not been taken into account. The volume processed was still insufficient in relation to the total number of recycled cars. The majority of the processed volume has been recycled or recovered.
20 arn sustainability report 2012
Optimisation of pst facility with life+ In 2011, arn was awarded a 1 million euro subsidy from the European Subsidy programme life+, intended for the implementation of European legislation. The advanced pst facility contributes to the high-quality recycling of shredder waste in a cost-efficient manner. As a consequence, arn helps the Netherlands to achieve the 95% standard. The subsidy from life+ was intended for the further improvement of the separation processes in the plant. In 2012, for example, fibre processing and plastic separation were optimised. Investments were made in the fibre module to arrive at a higherquality end fraction. The European funding can also be used to fi nd new applications for materials from the facility such as the use of fibres in sheet materials. In all cases, arn collaborates with suppliers and customers that have the knowledge needed to arrive at a better result in the pst facility. Thanks to the pst facility, raw materials can be returned to the chain at an ever higher level, while less and less waste remains from end-of-life vehicles. For car recycling, arn serves as a role model in Europe. In return for life+ funding, arn shares its knowledge from the pst facility within other EU Member States to enable them to catch up with frontrunner arn. arn for example supplies speakers at conferences, offers guided tours of the pst facility and regularly issues a newsletter containing useful facts about recycling activities in Tiel.
arn guides many groups around the pst facility in Tiel, such as this group of journalists in May 2012.
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arn Management plan for car batteries Hybrid and electrical vehicles Hybrid and electrical vehicles represent a growth market. In 2012, 4,651 small Lithium-Ion batteries and 3,334 large Lithium-Ion batteries were placed on the market. In addition, a management fee was charged in 2012 for 18,741 hybrid vehicles with a NiMH battery. The hybrid cars currently driving on Dutch roads are mainly equipped with Nickel-metal hydride batteries (NiMH). The fully electrical vehicles and the new generation of ‘plug-in’ hybrids are above all fitted with a Lithium-Ion (Li-Ion) battery. Management fees In 2012, the management fee for starter batteries and NiMH batteries was 0.05 euro (excluding vat) per battery. In 2013, the management contributions for the recycling of Li-Ion batteries will be same as charged in 2012: – 180 euro (including 21% vat) for Li-Ion batteries with a total weight of 100 kg and more. – 90 euro (including 21% vat) for the lighter Li-Ion batteries with a total weight of less than 100 kg.
Steady growth in car batteries from electrical vehicles. Both rates apply as from 1 January 2012 to Li-Ion batteries fitted in vehicles placed on the market in 2012. Reserve for car batteries The steady growth in the number of electrical and hybrid vehicles is bringing about a rise in the amount reserved for the processing of car batteries. At the end of 2012, the reserve had risen to 167,053 euro, as compared with 133,364 euro at the end of 2011. The reserved amount will continue to rise further, over the coming years. With a view to transparency, the arn management plan for car batteries appears on page 45 of the fi nancial report.
Monitoring sustainability: the Ecotest Insight into sustainability: the Ecotest Recycling is no longer the only sustainability aspect that is considered today. CO 2 emissions, toxicity, biodiversity and land use are other important yardsticks for sustainability. Achieving sustainability targets is an interplay between legislation, economics and technology. arn believes that recycling must not be allowed to lead to unnecessary energy consumption or the related CO 2 emissions. To gain a more in-depth insight into the various indicators, arn has developed the Ecotest, in collaboration with FFact, a consultancy fi rm with knowledge of the waste sector. This is a tool that makes sustainability measurable in terms of raw material efficiency, CO 2 footprint and costs.
materials and an office environment. In all such processes, arn operates as a consultant, in collaboration with FFact.
The Ecotest generates transparency on sustainability of a product or in the recycling chain. It also makes it possible to benchmark the sustainability performance of individual businesses. The Ecotest was the result of an internal project with FFact, aimed at calculating the CO 2 footprint of the car recycling chain. The result of this project gave an insight into the possible improvements to be achieved via the pst facility. In addition to CO 2 emissions, according to arn, cost efficiency is also of key importance. Against that background, the Ecotest was born, taking account of the various factors that determine the outcome of the recycling process.
The reprocessing of passenger car tyres emerged as the best option from the Ecotest, with a high score for material recycling and a high CO 2 emission saving. However, due to strict requirements on the carcass of the recycled tyre, reprocessing is only usable to a limited extent. Combined heat and power installations and cement furnaces deliver similar results in terms of CO 2 emission savings, but in these options, the rubber itself is lost.
The results from the Ecotest offer a valuable starting point for policy setting. The measurement data facilitate carefully considered decisions, whereby economic, ecological and recycling aspects remain well balanced. The Ecotest has now been deployed in several chains. In 2011 and 2012, Ecotests were for example carried out in the battery and car tyre chains, as well as for plastic packaging, composite
Ecotest for car tyres RecyBEM is responsible for implementing the Car Tyre Management Decree on behalf of the car tyre sector. RecyBEM is also responsible for the annual collection of almost 9 million passenger car tyres. arn takes for its account the removal from the environment of approximately 1 million passenger car tyres coming from end-of-life vehicles. To gain an insight into the tyre recycling chain, the Ecotest was carried out for the recycling chain for passenger car tyres, in collaboration with RecyBEM.
With that in mind, arn and RecyBEM are both encouraging ‘reprocessing’. The granulation of tyres delivers an 80% recycling rate. This is considerably more than the 20% material recycling required according to the Car Tyre Management Decree. In addition, tyre granulation makes an important contribution to the percentage of material recycling, as laid down in the End-of-life vehicles Management Decree (Bba).
For more information about the Ecotest, surf to www.ecotest.nu
22 arn sustainability report 2012
Sustainability trends in the mobility sector
Approved Sustainability scans arn, bovag and the Institute for Sustainable Mobility (IvDM) collaborate in the development and implementation of Approved Sustainability scans. The scans are tools that help garages and damage repair companies further elaborate their processes of corporate social responsibility. Car companies looking to implement corporate social responsibility can select from three types of scan: – The arn Environmental scan offers businesses an insight into their current waste behaviour and energy consumption. – The Approved Sustainability scan from bovag. Car dealers are assessed for environmental aspects, sustainability of business operations and human resources policy. – The Approved Sustainability Plus scan is a combination of the Approved Sustainability scan and the arn Environmental scan, making it the most complete csr scan for automotive businesses. For each of these scans, arn carries out the assessment at the company premises. In 2012, arn carried out 47 scans for the certificate Approved Sustainability Plus and 150 scans for the Approved Sustainability certificate. For non-bovag members, the arn Environmental scan is available. In 2012, together with bovag, arn started discussions aimed at encouraging other market parties such as focwa and stiba to participate in a joint csr and sustainability initiative such as Approved Sustainability and csr policy. The aim is to introduce a single programme for the entire automotive industry.
The scans measure the sustainability of business operations in respect of a wide range of aspects such as consumption of energy and water, management of waste flows, communication on sustainability with customers, fi nancing and hrm. The analysed companies receive advice on how to make their business more sustainable. Damaged vehicle repair companies, for example, can save energy by resetting the booth and drying installation, or using another kind of paint. Considerable cost savings can be achieved on waste flows, by preventing waste and separating waste materials. For example by separating plastic packaging and paper, the collection frequency for a container can be reduced. The scan however also and above all brings about greater awareness. The scan shows companies the environmental consequences of their activities and the immediate advantages of energy savings and waste separation. Based on the scans, arn draws up a benchmark, which is updated each quarter. For a company that has an Approved Sustainability scan carried out, the scores per workshop visit can be immediately compared with the average in the sector. In this way, arn is able to collate a pool of knowledge about energy consumption and waste flows in the garage and damage repair sectors. One point that has emerged is a fall in the costs for waste disposal. Another conclusion is that car companies are gradually becoming more aware of the importance of waste separation.
– Companies are focusing ever more attention on the economic, environmental and social aspects of sustainability. Demand from the B2B market for sustainably operating car companies is also increasing. – Businesses regularly take up subsidy opportunities for innovation and sustainability initiatives. The number of sustainability-related aspects in the courses on offer is also increasing. – More and more car companies recognise the value of good waste management, partly stimulated by the fact that more waste flows now have a positive value. – Companies are taking a closer look at costs; businesses increasingly negotiate on energy costs. – Businesses are quicker to recognise the importance of the correct disposal of waste by approved collectors, and the use of the correct disposal documents. – The demand for energy-efficient lighting, heating and even alternative energy sources is growing steadily. However, the current economic climate means that investments in these elements are often postponed. – Although there is clear attention for ‘The New Driving’ from businesses, and although ‘The New Driving’ is a household term for many consumers, there is still a great deal to be achieved in terms of both environmental protection and finance. – Businesses that have a far-reaching sustainability and csr policy generally have a solid hold on all processes within the company.
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Advice arn advisor Steven van den Belt makes a tour of the company, while carrying out the Approved Sustainability scan, in order to be able to offer sound advice.
Responsible recycling will secure the future of our business
From now on, the recycling of scooters and mopeds is in good hands! Starting on 1 March 2013, any consumer purchasing a scooter or moped will have to pay a recycling fee of 10 euro. Using this fee, Scooter Recycling Nederland (SRN) will
ensure the environmentally responsible recycling of the end-of-life scooter or moped, in the Netherlands. SRN is an initiative of the RAI Association and BOVAG.
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arn supports partners in the mobility sector who are ready to take responsibility for improving sustainability. Responsible mobility businesses are becoming reliable discussion partners for government, the market and stakeholders, and viable cooperation partners. Self-regulation is leading to the intended developments. Below are a number of examples of cooperation, leading to self-regulation.
Selfregulation Scooter Recycling Nederland The rai Association and bovag have taken the initiative of establishing a system for the collection and recycling of scooters and mopeds. To achieve this goal, they have founded the Stichting Scooter Recycling Nederland (srn), a foundation that will cooperate with implementing organisation arn. The objective is to ensure the socially responsible recycling of scooters and mopeds, the creation of new raw materials and the correct disposal of environmentally harmful substances. The recycling structure for scooters and mopeds up to 50cc is a reflection of the arn system. In the same way as for cars, a recycling fee will be charged for scooters and mopeds, and collected via the importers. In establishing the chain, the problem emerged that in the Netherlands, for the legal dismantling of scooters and mopeds, a specific environmental permit is required. A permit for vehicle dismantling is not enough.
In 2012, just a handful of vehicle dismantling companies also held a scooterdismantling permit. At the urging of srn, the Ministry of the Infrastructure and the Environment decided to include scooter dismantling in the Activities Decree for 2014. From that moment onwards, a vehicle dismantling company or scooter dealer that meets all the requirements for the legal dismantling of a scooter need do no more than simply issue notice to the government authority. Until that time, the srn has signed a Green Deal with the government. This Green Deal is based on a declaration of intent according to which the scooter and moped sector is working towards a sound recycling method in a full-scale chain, which will include the scooter dealers. To be able to execute the tasks of srn, arn worked together with bovag and the rai Association, the Ministry of Infrastructure
and the Environment, importers, scooter dismantling companies and service providers rdc, v we and A2SP, who will be responsible for vehicle registration. The importance of a sound system for scooter dismantling lies in reducing the environmental impact of scooters and mopeds by introducing standards and creating awareness. Monitoring provides an insight and offers opportunities for control. The scooter sector has taken its responsibility and is able to demonstrate that the end-of-life scooters and mopeds are processed in an environmentally sound manner.
26 arn sustainability report 2012
Tackling unfair competition is one of the spearheads of arn. Together we can deal with these illegal activities!
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Unfair competition Unfair competition in the car recycling sector trough the processing end-of-life vehicles without complying with the applicable legislation and regulations is a threat to all partners in the chain. It is however also a stubborn problem, with many guises. The fi rst of these guises is improper export, whereby cars are registered for export, without actually crossing a national border. This leads to unfair competition, causing damage to the vehicle dismantling and shredder companies that operate in good faith. It is also bad for the environment, because in many cases these cars are not handled in accordance with environmental guidelines. Estimates suggest this form of behaviour affects tens of thousands of cars every year. Another problem is that the threshold for reporting dismantling under own management is very low. This scheme is only intended for private individuals, but in practice it is also employed regularly by commercial operators. The consequence is illegal dismantling without the necessary permits or approval. The trade in end-of-life vehicles via the Internet is also increasing, again leading to unfair competition. There are more than 3,500 private dealers active on the Internet. They sell car parts on such a large scale that they must be dealing with more than one vehicle. Because they are effectively a commercial operation, this means that they should also comply with the applicable rules and regulations. The Internet,
however, offers these businesses a simple channel for selling parts.
Crime (AVc) and regularly holds discussions with the sector organisation stiba.
There is also unfair competition at the back end of the market. Car dismantling companies are required to send end-of-life vehicles to a shredder company. However, end-oflife vehicles can also be processed by a chopping installation. This is not permitted in law, because in a chopping installation, the metal is not separated from the dirt. A chopping company offers much higher prices for a car than a shredder company.
Unfair competition is making it increasingly difficult for bona fide vehicle dismantling and shredder companies to operate a profitable business and therefore resist the temptation to also slip into illegal practices. After all, these businesses have invested in their company in order to be able to comply with legislation, to operate professionally and to offer their customers the best possible service. Unfair competition represents an immediate threat to arn’s market share, and a negative attack on the national network of vehicle dismantling companies. Rising Internet sales simply increase the level of that th reat. In 2013, together with stiba and others, arn will join a project, with AVc, the aim of which is to identify the possibilities of tackling Internet crime in the automotive sector.
Tackling unfair competition is one of the spearheads of arn. arn uses indications of illegal activities from the vehicledismantling sector in discussions with for example provincial enforcement organisations, the Ministry of Infrastructure and the Environment, and the rdw. The reporter is informed of any actions taken. The partners are essential because they have powers to act that are not available to arn. The role of arn is above all in passing on information and acting as an intermediary between the vehicle dismantling sector and the government. This interplay with partners is essential for submitting enforcement requests for tackling unfair competition, altering legislation and dealing with abuse of the rdw approvals, dismantling under own management and improper exports. arn is also a participant in the foundation for Tackling Vehicle
The chopping of end-of-life vehicles is not permitted. Nonetheless this work is undertaken, because higher prices are offered.
In 2012, an average car comprised some 1022 kg of different materials.
Metal 765 kg Iron 715 kg / Aluminium 35 kg / Copper 10 kg / Other metals 5 kg
Sand (mixture of rust, sand, paint) 65 kg Plastics 55 kg Textile and fibres 55 kg Glass 25 kg Tyres 30 kg Battery 13 kg Liquids 14.2 kg Oil 4.2 kg / Petroleum and diesel 5 kg / Coolant 3.5 kg / Brake fluid 0.4 kg / Windscreen washer fluid 1.1 kg
2.o Mobility 30 arn sustainability report 2012
In the next ten to twenty years, electrical cars, bicycles and scooters will become much more everyday objects. By 2025, there will be between 400,000 and 1 million hybrid and fully electrical vehicles with three or more wheels on the road, and arn is deploying its knowledge to identify the challenges of mobility 2.0 for the recycling sector and in that connection is investigating possible solutions. First and foremost this research concerns issues relating to the batteries for hybrid and electrical vehicles.
Collection network for Lithium-Ion batteries The Battery Management Decree obliges manufacturers to take back so-called industrial batteries, at the end of their useful life. This applies also for end-of-life Lithium-Ion (Li-Ion) batteries from hybrid and electrical vehicles. For a number of manufacturers of electrical vehicles, arn has taken on the full range of responsibilities, from collection through to processing. The charge for this work is 180 euro per newly marketed battery. Car manufacturers often opt to undertake collection and recycling themselves, enabling them to determine the future use of the battery. In certain cases, they still call upon the services of arn to physically collect the batteries, and transport them to their own storage depot. In 2012, arn for example reached an agreement on this kind of service with the French car manufacturer Renault. A third category of manufacturers themselves take full responsibility for the collection and processing, while arn carries out nothing more than the statutory registration.
31
Training in dismantling electrical vehicles In 2012, together with Innovam, a training institute for the automotive industry, arn developed a training programme for dismantling companies to teach their staff how to dismantle hybrid and electrical vehicles, while complying with the guidelines of the nen 3140 standard. The demand for knowledge had previously repeatedly been referred to in an inventory among the vehicle dismantling companies. The SafeBAT survey also revealed a lack of information in this area, within the dismantling sector. A number of arn staff has been trained to themselves provide this training programme, which lasts just one day. The course location is the arn research centre adjacent to the pst facility in Tiel. The training starts with a number of theoretical questions: what kind of car is a hybrid or electrical vehicle? What other components do these vehicles contain? What is the danger of working with highvoltages that in modern electrical cars can rise to 400 volts? What are the risks in the event of disasters, such as fi re? What personal protective equipment should be worn during dismantling? How should you dismantle electrical vehicles? During the training day, the participants must for example successfully dismantle the battery from a hybrid car. The course participants are expected to prepare for the training day in advance, via an e-learning module. The course is concluded with an examination, which, if a pass grade is achieved, is rewarded with a certificate for the safe dismantling of electrical and hybrid vehicles. The training course ties in with the arn’s aim to strengthen cooperation with the vehicle dismantling companies. It is for that reason that arn decided to provide the training course itself. This offers arn the opportunity to share knowledge with the affi liated vehicle dismantling companies and to work together with those companies on ensuring good quality vehicle dismantling.
Feasibility study Second life for Lithium-Ion batteries 2Bcycled In 2012, together with dnv kema, arn started preparations for a follow-up programme from the SafeBAT project undertaken in 2011. The objective of this central government project was to chart out the development of safe electrical batteries. A recommendation from the SafeBAT report was to undertake further research into the possibilities of second-life applications. Giving electrical batteries from vehicles a second life is essential because for the time being, the residual value of end-of-life Li-Ion batteries is very much in the negative. This is entirely different for the traditional Nickel-metal hydride (NiMH) batteries, which have a positive residual value as a result of the recovery of nickel, cobalt and other scarce earth metals. From an ecological point of view, a second-life application for electrical vehicle batteries would be a step up on the so-called Ladder of Lansink. A second life would represent (product) reuse rather than (material) recycling.
The follow-up study from SafeBAT hopes to demonstrate the viability of second-life applications for Li-Ion hev batteries. Possibilities could include energy storage in a domestic environment. The end-of-life Li-Ion battery could serve as storage for people who generate their own energy, for example via solar panels. These so-called prosumers at present feed their self-generated energy back into the mains, writing off their contribution against the energy they themselves draw from the mains supply. Internal storage becomes an attractive option when a prosumer generates more energy than he or she consumes, or if the balancing scheme referred to is scrapped, in the Netherlands. On behalf of network operator Alliander, arn and dnv kema have launched a project plan for a feasibility study. In the project plan entitled 2Bcycled, arn is responsible for the automotive technology aspect, while dnv kema is responsible for the energy component. arn is investigating possibilities for the safe dismantling and storage of the batteries. The organisation will also take manufacturers’ responsibilities and product liability into account. The exchange of knowledge at the interface of technology is essential to both project partners in raising their own knowledge of mobility 2.0 to a higher plane.
End-of-life Li-Ion batteries can be used as storage for people who generate their own energy, for example via solar panels.
Training course for the dismantling of electrical vehicles The training course for the dismantling of electrical vehicles was developed in 2012, in collaboration with Innovam. Various people from the arn organisation have already completed the training course. In 2013, training will be provided to dismantling staff at the vehicle dismantling companies. The training courses are given at the arn research centre in Tiel.
arn-staff offer training to dismantling workers to enable them to safely dismantle hybrid and electrical vehicles.
34 arn sustainability report 2012
Exploring boundaries Composite panel Crusca.
By 2015, in accordance with European regulations, the Netherlands will be recycling and recovering 95% of end-of-life vehicles. In achieving this target and developing new technologies and sales markets, arn is reaching the boundaries caused by unchanged circumstances in the market and the regulations. If things are to move forward, these two elements also need to change. Achieving the 95% target is not so much a technical problem; the technology is already available. The question that arises is whether recycling can be kept affordable. Is the market really open to recycled materials that as a result of the processing technology cost just as much as or even more than primary raw materials? To what extent should existing regulations be used to promote innovation?
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BlueRoots
Mineral fraction Consist of a mixture of sand, rust and paint residues. Street name signs The mineral fraction is mixed with composite material to produce street name signs.
Raw materials roundabouts arn puts society’s changing ideas on the recycling of materials into practice, on a daily basis. In the past, waste materials were above all dumped or incinerated, and monitoring was mainly aimed at restricting the possible fi nal destinations for waste. Today, the establishment of raw materials roundabouts is being widely encouraged. In the same way as a roundabout works in road traffic, waste substances are ‘driven’ around a roundabout on which they are processed, ready to leave at a turnoff further on as a new raw material. The chain for the recycling of end-of-life vehicles, with the pst facility as its fi nal link, is a perfect example of such a roundabout. This cycle is part of what has become known as the circular economy, an economic system that aims to maximise the reusability of products and raw materials, while dealing with primary and secondary raw materials in the most efficient manner possible. This approach is very different from the current monitoring system, in which raw materials are converted into products which following use are then recycled at low value as materials, or simply incinerated. If it wishes to become strategically less dependent on foreign raw materials suppliers, the Netherlands needs a more circular economy.
The aim of arn is to achieve the highest possible recycling percentage. The 85% recycling target for 2015 is a minimum requirement, in the eyes of arn, supplemented by 10% recovery. To achieve that ambition, arn is working to identify possible applications for the recycling of all fractions from the pst facility. Examples identified in 2012 are two applications for the mineral and the fibre fraction. BlueRoots, a material that can for example be used for street name signs and street furniture from the mineral fraction and Crusca, a product that is very suitable as high-quality construction material. Disruptive substances One real problem lies in the fact that shredder waste continues to contain low concentrations of disruptive substances, which are harmful for the environment. Barely traceable residues of for example heavy metals and engine oils mean that shredder residue is sometimes qualified as hazardous waste, whenever the levels exceed the threshold boundaries for nonhazardous waste. Although the pst process leads to much cleaner materials, the risk still remains that a waste fraction from the pst facility will contain oil or heavy metals. For certain fractions, this fact acts as a brake on sales. After all, companies that could use recycled materials in their production process as a secondary raw material, to replace primary materials, are scared off or are unable to obtain a permit
for the use of waste that has been labelled hazardous. To develop new products and to identify potential customers, arn is collaborating with raw materialprocessing companies and product developers. Further innovations can only succeed if a number of conditions are met. The secondary materials must be made available to producers at a competitive price. In addition, product specifications and permits must allow the use of materials recycled from shredder waste. A third condition is that the fear of ‘hazardous’ waste at government and business level must be overcome by proven technology and high-quality applications that demonstrably represent no risk to health or the environment. Further advances in innovation and the sale of new products are relevant to arn in its efforts to make the car recycling chain more sustainable. The development of secondary materials cannot be postponed until such time as shortages have forced the prices of primary raw materials so high that it becomes commercially viable to use recycled materials. If we wait until then, both the Netherlands and Europe will be left trailing behind the developments. Together with its chain partners, and in close consultation with the government, arn is searching for opportunities to identify high-end uses for pst materials. arn is convinced that together with the relevant market parties and based on new
36 arn sustainability report 2012
pst facility
Among the materials extracted from shredder waste are valuable aluminium and copper.
insights acquired by government, it should be possible to leave the beaten track, and make real progress in achieving a circular economy. Ensartech smelting technology In 2012, in collaboration with Ensartech based in Delfzijl, arn identified a method of making the mineral flow (sand and glass) from the pst facility suitable for recycling. A large-scale test has demonstrated that the smelting installation commissioned in 2012 by Ensartech is ideally suited for processing the residual waste flows from arn. Any heavy metals still present in the mineral fraction are evaporated, and captured in the smoke via an activated carbon fi lter, or are melted and sink to the bottom. If organic contaminants are present, they will be simply incinerated. All in all, this process guarantees that all possible contaminants are removed from the fraction. The smelting product is a form of basalt, which can be reused as a fi nished product. Processing in Ensartech’s smelting oven represents an excellent alternative for the use of the sand fraction as a fi ller material for worked-out underground mine tunnels. The practically boundless application of a possibly contaminated material sometimes comes up against restrictions caused by the classification of recycling as imposed by government. The heating process for separating usable material from unwanted residual substances is normally classified by government as thermal removal. Processes in installations aimed at processing waste are often placed very
low on the Ladder of Lansink. This ladder specifies the hierarchy for the use of waste substances, with dumping as the lowest rung. A comparable process in an installation originally created for the processing of new material is often viewed more positively. arn and Ensartech have discussed these issues in detail with the Ministry of Infrastructure and the Environment, to ensure that the environmental added value of processing in the Ensartech installation is guaranteed to be classified as recycling. The Ministry rewarded these efforts, in 2013. As well as Ensartech, there is now also a construction material trader willing to purchase the basalt obtained through the development of the processing method. The materials supplier, the processor and the customer all ensure that the Ministry of Infrastructure and the Environment, responsible for the classification, remains closely involved in the project. This project has demonstrated that even the product flow from shredder waste with the greatest risk of residual contaminants can be converted into a usable material. This is one of the new steps that will help to make the car recycling chain more sustainable. Glass in the post-separation process The post-separation of materials in the pst facility eradicates the need for removing a number of materials from an end-of-life vehicle. Full dismantling is no longer necessary thanks to the various new applications for materials from the pst facility. These applications in turn lead to recycling, and achieving the recycling
target. An additional aspect is that because a number of materials no longer need to be manually removed, the chain has become considerably more efficient and cheaper. Manual dismantling of for example glass has been rendered unnecessary. In practice, however, the non-removal of glass does still lead to a number of barriers, which hinder possible pst innovations. Nonetheless, the Activities Decree does now state that vehicle-dismantling companies are no longer required to remove glass from endof-life vehicles, if recycling is guaranteed via a post-separation technique. One of the fi rst practical boundaries facing arn consists of the acceptance conditions formulated by the government, for Dutch shredder companies. These conditions state that shredder companies are not permitted to accept end-of-life vehicles from which the glass has not been removed. Shredder companies are able to apply for a so-called change permit that does grant them permission to accept end-of-life vehicles in which the windows are still fitted. However, applying for such a permit takes time and increases the administrative burden on the shredder companies. Via the Ensartech smelting installation, arn has now found a solution for processing the glass that via the postseparation process ends up in the mineral fraction of the pst facility, into a new material, namely basalt. The process of manual removal is labour-intensive, thereby generating high costs for arn. The manual removal of glass costs arn
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Ensartech
Mineral fraction Consists of a mixture of sand, rust and paint residues.
a great deal of money. Based on its objective of keeping recycling affordable, arn is constantly on the lookout for more efficient solutions. The costs via the Ensartech route are considerably lower than the costs for manual removal. Another barrier faced by arn in respect of the non-removal of glass is enforcement. The Activities Decree specifies that a vehicle dismantling company is not required to remove glass and large plastic parts, if post-separation guarantees recycling. The problem is that there is no uniform method according to which compliance can be monitored by the supervisory bodies, to ensure that if a company no longer removes these materials, they do actually end up in a post-separator installation. arn wishes to reach binding agreements with government on uniform enforcement. Such agreements will help prevent placing vehicle dismantling companies in an impossible position. With a view to achieving the enormous potential cost reductions, arn is currently consulting with vehicle dismantling companies, shredder companies and the enforcement bodies, to generate support for the non-removal of glass. Car dismantling companies and glass recycling companies have a clear preference for manual removal, from the point of view of fi nancial gains and raw material availability, respectively. In response, arn suggests that it is not actually necessary to recycle glass, for the production of new glass. After all, glass is produced from non-scarce raw materials, namely sand and soda.
Basalt The fraction is thermally decontaminated. The residue is in the form of the igneous rock basalt, which is ideally suited for a number of applications.
Crusca For the fibre fraction from the pst facility, arn has identified a new application in composite panels that can for example be used in the construction industry. Crusca, the name derived from the origin of the material ‘crushed cars’ was developed together with Holland Composites Innovations (hci) in Lelystad. The new product contains two waste flows, namely the fibres from the pst and powder coating from the paint industry. Crusca can be used
Ensartech smelting installation.
in table tops, kitchen work surfaces and as sheet piling for ditch and river banks, and for noise abatement embankments. In the technical feasibility study, arn acted as the driving force. arn will also be the supplier of the fibres, once a company has been found that is willing to invest in the production of panels consisting of secondary raw materials. That is indeed the next stage. arn and hci are currently screening the market for parties that see a product
38 arn sustainability report 2012
Crusca
Panel material Veneer-coated Crusca.
Fibres Following the removal of copper wires, the fibres are ground. The fibres are then mixed with a powder coat residue from the car painting industry and compressed to form a panel material for the construction industry.
manufactured from recycled materials as a good business opportunity. Crusca is in fact a typical example of another boundary that arn has come up against: the question of willingness on the part of the market to invest in recycled materials. The Crusca project makes a 100% contribution to arn’s target of high-quality recycling. hci provides knowledge of composites and experience in identifying potential customers for Crusca, so Crusca panels can be delivered to the market at a later stage. The developers have not come up against any legal boundaries, but do face requirements with regard to product specifications. There are chemical threshold values for the use of raw materials in construction material. The products must be within those specifications in terms of seepage and volatile gases. Studies have shown that Crusca meets those specification requirements. The next stage is to identify investors and develop sales markets for Crusca. The detailed market reconnaissance will be elaborated in 2013, and the search for potential investors continued.
Crusca plant
A usable material can even be produced from the most contaminated residual flow from the shredder waste. This represents yet a further step towards a sustainable automotive chain.
Appendix Appendix 1: Financial report 2012 Appendix 2: Vehicle fleet development Appendix 3: Explanatory notes to arn materials Appendix 4: Internal organisation Appendix 5: Financial report 2012 arn Management Plan Appendix 6: Independent assurance report
40 arn sustainability report 2012
Appendix 1: Financial report 2012
The consolidated balance sheet and the consolidated profit and loss account include the figures for Stichting Auto & Recycling, arn Holding b.v., arn Auto Recycling b.v., arn Recycling b.v., arn Recycling Services b.v. and arn Advisory b.v.
Consolidated balance sheet as at 31 December (following appropriation of profits in euro)
2012
2011
1 Tangible Fixed Assets
37,953,836
41,496,933
2 Financial Fixed Assets
35,293,946
32,539,314
73,247,782
74,036,247
Assets
Total 3 Stocks 4 Receivables 5 Liquid Assets Total
Total assets
70,204
150,459
1,534,081
3,647,424
16,490,084
15,945,086
18,094,369
19,742,969
14,521
14,521
14,521
14,521
81,081,946
81,305,023
91,342,151
93,779,216
Liabilities 6 Equity capital Total 7 Recycling fee fund
11,368
8 Provisions 9 Long-term Liabilities
11,073
11,209
10 Short-term Liabilities
10,223,243
12,448,463
91,327,630
100,441,997
Total
Total liabilities
91,342,151
93,779,216
Stichting Auto & Recycling Explanatory notes to the financial report 2012 1 Tangible fixed assets Tangible fi xed assets comprise land, buildings, machines and installations of arn Recycling b.v. In addition, at the end of 2012, arn Auto Recycling b.v. had 216 draining installations (2011: 220), the majority of which were lent to affi liated vehicle dismantling companies. 2 Financial fixed assets The Stichting Auto & Recycling has delegated the management of the investment portfolio to an asset manager. The funds are invested in both bond and share funds. The asset manager has been given a defensive mandate, derived from the investment regulations of the Stichting Auto & Recycling. The risks connected with
investment are therefore limited as far as possible. At the balance sheet date, 35,293,946 euros (2011: 32,539,314 euros) was invested in shares and bonds. 3 Stocks Stocks consist mainly of raw materials and secondary materials for the production of arn Recycling b.v., and are valued at acquisition price, namely purchase price plus additional costs. Any loss in value as at the balance sheet date is taken into account in the valuation of stocks.
4 Receivables The receivables consist mainly of debtors, interest to be received and value-added tax that can be reclaimed. 5 Liquid assets The cash of the Stichting Auto & Recycling, arn Holding b.v. and its subsidiaries is held at systemic banks 6 Equity capital The Stichting Auto & Recycling’s capital has been paid up by the stakeholders rai, bovag, focwa and stiba. Each organisation has contributed a proportional share to the capital. 7 Recycling fee fund The recycling fees received are deposited in the fund. The fund is used as a reserve for both anticipated and unforeseen future expenditure. 8 Provisions A provision is established for major maintenance to buildings at arn Recycling b.v. on the basis of expected costs over a period of 15 years. 9 Long-term liabilities The affiliated vehicle dismantling companies have deposited a guarantee for the use of logo signs. As at 31 December 2012, 248 (2011: 247) vehicle dismantling companies had an affi liation agreement. 10 Short-term liabilities The short-term liabilities consist mainly of accounts payable and the item ‘liability to vehicle dismantling companies for materials’. The liability to vehicle dismantling companies for materials item shows the premiums still to be paid to the vehicle dismantling companies for dismantling, collection and processing. This liability is linked to the outstanding material balances of each company. Outstanding material balances represent the materials that are still in the end-of-life vehicles that have been registered for dismantling, are in the existing packaging or have already been disposed of but not yet claimed for. The liability for materials is calculated on the basis of the prevailing rates in 2012.
41
Consolidated profit and loss account (in euro)
2012
2011
11 Income from recycling fee
20,939,484
23,311,481
12 Income from investments
3,858,069
648,287-
13 Other income
2,597,347
3,061,301
319,593
255,521
27,714,493
25,980,016
14,578,234
15,580,970
3,647,837
2,616,993
2,905,231
2,655,516
14 Interest and similar income Totaal Opbrengsten 15 Cost price of sales 16 Costs of outsourced work and other external costs 17 Wages and salaries 18 Social Insurance contribution and pension costs
626,954
722,291
6,124,362
4,637,223
54,951
13,617
27,937,569
26,226,610
-
-
223,076-
246,594-
19 Depreciation of tangible fixed assets 20 Interest and similar costs Total operating costs Operating result
223,076-
21 Tax on the result Result after Tax
arn Holding b.v. forms a fiscal unit for corporation tax with arn Auto Recycling b.v., arn Recycling Services b.v., arn Recycling b.v. and arn Advisory b.v. This fiscal unit has a consolidated offsettable loss. 11 Income from recycling fee In 2012, recycling fees were collected for a total of 549,332 (2011: 603,000) newly registered vehicles. 12 Income from investments The Stichting Auto & Recycling has issued its asset manager a defensive mandate, characterised by investment in bonds and shares. The income from these investments rose sharply in 2012 as compared to 2011, due to improved market conditions. 13 Other income Other income consists mainly of the proceeds from the sale and purchase of materials and consultancy for third parties.
246,594-
14 Interest and similar income The interest consists mainly of the interest on deposits and savings. The slight rise in relation to 2011 is due to a rise in liquid assets in 2012. 15 Cost price of sales In 2012 there were on average 248 affi liated vehicle dismantling companies which between them dismantled 196,763 end-oflife vehicles (2011: 206,150). These companies are paid premiums for dismantling, collection and processing. The cost price of sales also includes production costs at arn Recycling b.v. The cost price of sales also refers to the cost price of purchase, collection, lease of packaging and storage of materials. 16 Costs of outsourced work and other external costs Costs of outsourced work and other external costs relate to publicity, accommodation, offices, cars and other operating costs. This item also includes project costs for the erp system implemented in 2012.
17 Wages and salaries arn’s work force consists of 49.5 fte (2011: 43.6 fte). The employees perform work for the Stichting Auto & Recycling, its subsidiaries and external parties. The Stichting Auto & Recycling has a Board consisting of 4 members; arn Holding b.v. has a Supervisory Board comprising 5 members. 18 Social insurance contributions and pension costs In addition to the compulsory social insurance contributions, this item also includes pension costs. From the moment of entering service, employees participate in the collective pension scheme. 19 Depreciation of tangible fixed assets This item relates mainly to the depreciation on the drainage installations that arn Auto Recycling b.v. has lent to the vehicle dismantling companies and the depreciation on the now commissioned arn Recycling b.v. facility. 20 Interest and similar costs Interest is paid on the balance held by the importer at the 12-month Euribor rate. 21 Tax on the result arn Holding b.v. and its subsidiaries form a fiscal unit for the purposes of corporation tax.
42 arn sustainability report 2012
Appendix 2: Vehicle fleet development In 2012, a recycling fee was collected for 549,332 new passenger cars and light commercial vehicles.
The age breakdown for the vehicle fleet offers arn an insight into the expected number of end-of-life vehicles that will have to be dismantled over the coming years. Broadly speaking all vehicles on four wheels that can be driven by a holder of B-driving licence and which, including load, have a maximum weight of 3,500 kg are covered by the Management of End-oflife Vehicles Decree. The information about vehicle fleet development in this report
On-the-road vehicle fleet in the Netherlands
2010
2011
2012
Number 700.000 600.000
400.000 300.000
Dismantling In 2012, a total of 237,207 Dutch end-of-life vehicles were deregistered at the rdw. This is less than in 2011, when 249,607 vehicles were deregistered.
At the end of 2012, arn had cooperation agreements with 248 vehicle dismantling companies.
200.000 100.000 0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ≼25*
Age in years
*classic cars
Dismantling and export age breakdown
Export
Dismantling
Number 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0
Vehicle fleet At the end of 2012, a total of 8.9 million registered cars were in use on the roads in the Netherlands. Of those, 8 million vehicles are in the category passenger cars, and 900,000 vehicles are registered as light commercial vehicles. The size of the vehicle fleet has therefore remained practically unchanged since 2011. The average age of the vehicle fleet in 2012 is 9 years, slightly higher than the 8.9 years in 2011.
Of the total number of deregistered endof-life vehicles, 196,763 were processed via arn. This represents a market share for arn of 82.9%, a slight rise as compared to 2011, with a market share of 82.6%.
500.000
0
therefore relates to those components of the vehicle fleet.
0
1
2
3
Age in years
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ≼25* *classic cars
The average age of dismantled end-of-life vehicles, at 16.8 years, was slightly higher than in 2011, when the average age was 16.7 years. In 2012, for the third consecutive year, hybrids and electrical cars were submitted for dismantling. A total of 48 of these vehicle types were dismantled, including 1 electrical vehicle. Export In 2012, the number of dismantled endof-life vehicles was considerably lower than the number of second-hand vehicles exported from the Netherlands. The average age of exported vehicles was 11.7 years. The number of exported secondhand vehicles once again rose sharply in 2012. Total exports amounted to 389,092 second-hand cars. This represents a rise of over 15% compared to 2011, when 337,245 second-hand vehicles were exported. A proportion of this growth is explained by the export of four and five year-old cars, on which a BPM tax rebate was received from the Tax and Customs Administration.
43
Average age export
2010
2011
2012
Number 45.000 40.000
The number of export reports of older second-hand vehicles also rose. This cannot be directly explained by a massive rise in the demand for second-hand cars in export countries. arn sees clear indications that a proportion of these vehicles are in fact fake exports. Older vehicles are reported for export without actually leaving the country. In this way, the owner avoids the obligations in respect of the environmentally-responsible dismantling process and the accompanying costs.
35.000 30.000 25.000 20.000 15.000 10.000 5.000 0
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ≥25*
Age in years
*classic cars
Appendix 3: Explanatory notes to arn materials (table 1, page 18) and description of the management procedures implemented by arn with regards to the goods flow an the payment of premiums Table 1 on page 18, in particular the columns Recycling, Energy recovery and Disposal, lists the quantities of arn materials received and accepted by the contracted recycling companies, from contracted collection companies. These quantities are based on the reports received from the contracted recycling companies in respect of received and accepted quantities of arn materials. The arn materials originate from the dismantling of end-of-life vehicles reported in orad by the vehicle dismantling companies affi liated to arn. These vehicle dismantling companies receive a premium for each dismantled material. The quantity reported in the column Reuse of Table 1 on page 18 was calculated by reducing the average orad weight (1,022 kg) of the total number of dismantled end-of-life vehicles arriving at the shredder (187,143), by the weight of the dismantled end-of-life vehicles (712 kg), and subtracting the materials dismantled for arn, the quantities for which appear in the columns “Recycling”, “Energy recovery” and “Disposal”. In the framework of this goods flow management, a system of administrative organisation and internal control procedures has been established, under the responsibility of the Stichting Auto & Recycling, the purpose of which
is to guarantee that: – all premiums paid to vehicle dismantling companies are correctly paid, and – all materials submitted by vehicle dismantling companies are collected by contracted collection companies and accepted for processing by contracted recycling companies. This system of administrative organisation and internal control systems broadly comprises the following components: – Physical volume and quality inspections at affi liated vehicle dismantling companies and contracted collection and recycling companies. These inspections are undertaken periodically. In 2012, 647 quality inspections were carried out at affi liated vehicle dismantling companies (this means on average 2 per vehicle dismantling company), at 181 inspections physical volume inspections were carried out, during which material stock is counted physically and compared with the administrative stock; eventual differences has been analysed, and if necessary the administrative stock has been adjusted. The inspection frequency varies from 1 per year tot several times per year, depending on the quality of the work undertaken by the vehicle dismantling company. In 2012, 71 inspections were carried
out at contracted collection and recycling companies (that represents on average more than 1 inspection per contracted collection and recycling company). This includes at 5 inspections the actual stock at the collection company has been counted. The inspection frequency varies from once every two years to several times a year, for each contracted collection and recycling company. – The execution, at regular intervals, of a mass balance control, whereby the quantities of ARN material reported to ARN by the affi liated vehicle dismantling companies and the contracted collection and recycling companies are compared with one another. This control is being carried out every year at all affi liated car dismantling companies and contracted collection and recycling companies. kpmg Accountants n.v. has inspected the existence and operation of this system of administrative organisation and internal control systems during the course of 2012, and the quantities of arn materials collected and accepted for processing as shown in table 1. For the report by kpmg Accountants n.v. of its activities, you are referred to the independent assurance report on page 46.
44 arn sustainability report 2012
Appendix 4: Internal organisation arn organisation structure Supervisor of recycling fee fund Stichting Auto & Recycling is a foundation with four executives who represent the car industry in the Netherlands: bovag Trade association of companies in the mobility sector
focwa
rai
Trade association of vehicle body repair companies
Vereniging (trade association of manufacturers and importers of road vehicles)
stiba Trade association of vehicle dismantling companies
Stichting Auto & Recycling Manages arn Holding
arn Holding b.v. Directs the activities of the operating company arn Auto Recycling, arn Recycling, arn Recycling Services and arn Advisory.
arn Auto Recycling b.v. Increase arn Auto Recycling’s market share. Curb leakage flows.
arn Recycling b.v. Increase the recycling percentage, reduce the costs of car recycling.
Support vehicle dismantling companies in the collection of materials with a negative value.
Employees At the end of 2012, a work force of 34 was employed at the arn offices in Amsterdam; the pst facility in Tiel has a staff of 20, of whom 9 were taken on in 2012. In respect of employment conditions and remuneration, arn operates an integrated personnel policy for staff who work at the two locations, each with an entirely different character. Staff turnover at arn is low. Health In 2012, arn switched the Health and Safety at Work service that supports arn in drawing up and implement working conditions and absenteeism policy. The policy focus at arn is on a preventive approach to sickness and incapacity for work. In 2012, sickness-related absenteeism amounted to 1.6 %; the national average in comparable companies in 2012 was 3.2%.
Raad van Commissasissen Handles the financial administration, human resource management and marketing & communication.
arn Recycling Services b.v. Position arn’s environmental scan and Approved Sustainability scan firmly in the mobility sector. Reduce costs of waste flows for the mobility sector.
Support vehicle dismantling companies in the collection of materials with a positive value.
All-round learning organisation The pst facility operates as an all-round learning organisation. In 2012, two students from higher professional education successfully completed their graduation assignment in Tiel, three students of higher professional education were introduced to the practical operation and offered support in the implementation of the erp system. In addition, a total of six pupils from secondary education completed an introductory traineeship. Four arn staff are undertaking the vapro vocational training programme for process operators.
The holding is supervised by the Supervisory Board (two industry representatives and three independent members).
arn Advisory b.v. Use its expertise in internal and external assignments.
45
Appendix 5: Financial report 2012 arn Car Battery Management Plan Balance sheet as at 31 December (in euro)
2012
2011
109,913
72,595
57,141
60,869
Total
167,054
133,464
Total assets
167,054
133,464
Equity capital
-
-
Total
-
-
167,054
133,464
-
-
167,054
133,464
1 Amounts payable 2 Amounts receivable
3 Management fee fund Total Total liabilities
Explanatory notes to financial report arn Management Plan 1. The claim against debtors has a term of less than 1 year. 2. The item accounts receivable relates primarily to management fees still to be received. 3. Reserves for recycling costs for car batteries still to be incurred. 4. Income from the management fee relates to management fees collected for each type of car battery. 5. Costs of outsourced work relates to costs of myBatbase, communication and arn activities. 6. The rise in the car battery reserve in 2012. ––
* In the framework of the Battery Management
Profit and loss account
Decree (Bbb), arn is responsible for the
(in euro
Management Plan. The Management Plan consists Total 2012
2011
75,735
95,997
75,735
95,997
5 Costs of outsourced work
42,145
72,103
6 Allocation to management fee fund
33,590
23,894
75,735
95,997
Tax on results
-
-
Results after Tax
-
-
of establishing a reserve for the correct and sustainable recycling of end-of-life car batteries,
4 Income from management fee * Total income
including hybrid and electrical vehicle batteries. ** Income from management fee shows the balance as at 5 February 2013.
Operating result
46 arn sustainability report 2012
Appendix 6: Independent assurance report To: the board of Stichting Auto & Recycling
Assignment The board of Stichting Auto & Recycling asked us to provide reasonable assurance regarding the existence and operation of the internal management procedures operated by the organization in respect of the goods flow and the payment of premiums as outlined on page 43 of the Sustainability Report 2012. The board of the Stichting Auto & Recycling also asked us to provide reasonable assurance regarding the figures contained in table 1 on page 18 of the Sustainability Report 2012 concerning the quantities of materials collected and accepted for processing, in accordance with the criteria as described on page 43 of the Sustainability Report 2012. Responsibility of the board The board of the Stichting Auto & Recycling is responsible for the existence and operation of the internal management procedures in respect of the goods flow and the payment of premiums in accordance with the internal control procedures as described in outline on page 43 of the Sustainability Report 2012. The board of the Stichting Auto & Recycling is also responsible for the accuracy of the figures contained in table 1 on page 18 of the Sustainability Report 2012, in accordance with the criteria as described on page 43 of the Sustainability report 2012. Auditor’s responsibility We have conducted our examination in accordance with Dutch law including standard 3000 “Assurance engagements other than audits or reviews of historical fi nancial information”. Our assurance engagement is aimed at obtaining reasonable assurance concerning the existence and operation of the internal management procedures of the Stichting Auto & Recycling during the course of fi nancial year 2012 in respect of
the goods flow and the payment of premiums as outlined on page 43 of the Sustainability Report 2012. As a consequence, we pass no judgment on the adequacy of the internal management measures. Our assurance engagement is also intended to obtain reasonable assurance that the quantities of material collected and accepted for processing as outlined in table 1 on page 18 of the Sustainability Report 2012 are correctly reproduced in all material respects, in accordance with the criteria as described on page 43 of the Sustainability Report 2012. The principal procedures for conducting our assurance engagement comprised: – Assessing the existence and operation of the internal management measures in respect of the goods flow and the payment of premiums in accordance with the description on page 43 of the Sustainability Report 2012, by means of interviews with officers responsible for goods flow management and the payment of premiums, and by selective observations aimed at assessing the operation of the procedures according to the described structure. – Determining that the quantities of material collected and accepted for processing, as listed in table 1 on page 18 of the Sustainability Report 2012, throughout 2012, are correct in all material respects in accordance with the criteria as described on page 43 of the Sustainability Report 2012, through a combination of interviews with the officers responsible for measurement and registration, analytical review of the figures, making concept audits and undertaking detailed audits focused directly on this information. The detail audits were undertaken via selective observations based on internal and external sources of information. In our opinion, the assurance information we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion, the internal management procedures in respect of the goods flow and the payment of premiums in the fi nancial year 2012, in all material respects, were in
place and operated in accordance with the description on page 43 of the Sustainability Report 2012. Furthermore, in our opinion, the quantities of material collected and submitted for processing, as contained in table 1 on page 18 of the Sustainability Report 2012 are correctly reproduced in all material respects, in accordance with the criteria as described on page 43 of the Sustainability Report 2012. Eindhoven, 11 June 2013 kpmg Accountants n.v. E. van Os RA
arn Holding De Entree 258 1101 ee Amsterdam Zuidoost PO Box 12252 1100 ag Amsterdam Zuidoost The Netherlands T +31(0)20 6613181 F +31(0)20 6613191 E info@arn.nl
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