Environmental technologies for a global market A (precious) metal perspective Thomas Leysen CEO Umicore ETAP 4th European Forum on Eco-innovation, Vienna 31 January

Sustainable Development Definition Sustainability may be best defined as the capacity for continuance into the long term future. Anything that can go on being done on an indefinite basis is sustainable. Anything that cannot go on being done on an indefinite basis is unsustainable. In that respect, sustainability is the end goal or desired destination for the human species. By contrast, sustainable development is the process by which we move towards sustainability (Jonathan Porrit – Capitalism as if the world matters) 2

The world is full of unsustainable trends: - Climate change - Resource depletion (  energy & metals) - Reduction of biodiversity - Deterioration of ecosystems - Excessive income disparity... There is a need to correct the course sooner rather than later Business cannot be the only driver, and not even the prime driver, but should be part of the process – and part of the solution 3

societal benefit social context resource use energy efficiency waste generation impact on ecology & climate eco-efficiency: more value with less impact Social dimension of sustainability: Environmental technology from a large company‘s perspective: innovatively using a company‘s core competencies economically viable, attractive for shareholders and other stakeholders Environmental technologies need to address these issues 4

main part of metals refined are from secondary resources such as end-of-life materials or industrial by-products roughly half of required metals can be sourced from internal refining capacity application- dedicated materials, allowing for technological differentiation metals are a pass-through cost in most of our businesses but a sensitive issue for our customers Our core competencies – a material technology company 5

automotive catalysts & diesel particulate filters fuel cells (electro-catalysts, MEA’s, auxiliary equipment) photovoltaic applications: semiconductor substrates, thin film technology, PV-metals (indium, selenium, tellurium, solar grade silicon) key materials for rechargeable batteries recycling services for precious & special metals (20 metals in total!) Umicore’s clean technologies 6

Less is more: Automotive Catalysts From 1995 to 2005 thrifting in PGMs for automotive catalysts of more than 50% Virtuous circle: -Reduced loadings mean benefits for the customer -New technology meets ever more stringent emission standards and also enables system cost savings for the customer -Catalyst recycling provides more PGMs & improves eco- balance Umicore a world leader in both automotive catalysts as well as PGM recycling 7

Less is more: rechargeable batteries Umicore leadership in compounds for lithium ion (Li-ion) batteries Need for increased energy density is key driver Need to reduce materials use (and cost) for customers These more resource / cost effective materials will be the enabler for Li-ion in new applications e.g. Hybrid Electric Vehicles Battery recycling provides more raw materials & improves eco-balance 8

Metals Recycling unlimited recycling however challenge of recycling dissipated metals (open vs closed loops) 85% of PGM use of mankind after 1980 (catalysts, electronics)  similar for cobalt, germanium, indium, tellurium & other special metals  extended use of « smart metals » is a young phenomenon & a booming segment need to maintain « metallic diversity » 9

Umicore’s « high-tech » recovery of precious and special metals Unique flowsheet Recovering 17 metals: Au, Ag, Pd, Pt, Rh, Ir, Ru, Cu, Pb, Ni, Sn, Bi, Se, Te, Sb, As, In Recovered metal value (2006): PM: 2,000 M$, others 300 M$ Global supply base World class environ-mental standards (BAT) ISO & 9001 > 1 billion € investment Umicore’s integrated metals smelter at Hoboken (Antwerp) 10

Meanwhile, at the competition 11

More is less - CO 2 benefit of recycling Example: Umicore Precious Metals Refining, Hoboken/Belgium (UPMR): recovered metals 2006:75,000 t* total CO 2 impact of UPMR in 2006: 0.28 Mt total CO 2 impact primary production**: 1.28 Mt ►CO 2 saved due to recycling*: 1.00 Mt *Output: 1100 t Ag, 32 t Au, 32 t PGM, 70,000 t Cu/Pb/Ni, 4100 t Sn/Se/Te/In/Sb/Bi/As **calculated with ecoinvent 2.0, ETH Zürich 12

Substantial resources required Investment is long-haul effort e.g. Automotive Catalysts e.g. Fuel Cells and requires continuous improvement 13

« Best of all... Would be an evolutionary transformation of the primary producers from an extract, refine and sell industry to a true service industry which treats each of the metals as a capital asset rather than as a commodity. » Robert Ayres Umicore as a provider of innovative environmental technology is increasingly offering dedicated services along the lifecycle of our products 14

Environmental technologies – key interdependencies 15

Lessons learnt realise the multi-dimensions of an issue, go beyond the obvious think holistically, use a system approach, combine your expertise in related fields team up with others where appropriate address global markets but regard local needs & frame conditions don’t overlook interdependencies & feed back effects thinking holistically requires significant financial and intellectual investment from companies and authorities 16

Conclusion Enterprises can be frontrunners in environmental technologies: creatively make use of new emerging business opportunities (pioneer approach) form early alliances with relevant stakeholders (incl. Research & NGOs) to push new developments (instead of trying to retard things) early impact and stimulate legislation to set up the necessary framework in a supportive way (instead of ex-post trying to change burdensome regulations developed without appropriate industry participation) However, enterprises rely on a constructive, science based dialogue with regulators, NGOs and other stakeholders, in a holistic approach that reflects the complex interdependencies 17