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Shaping Responsibility.The Corporate Responsibility Online Report 2009.

Linde Corporate Responsibility Report 2009

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Corporate Responsibility Online Report 2009

This is the fourth sustainability report issued by The Linde Group. As inprevious years, we show how we live our sense of corporate social responsibility across the five action items we have defined.These are Employees, SHEQ (Safety, Health, Environment, Quality), Corporate Citizenship, Ethics and Compliance and Capital Markets.


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Climate protection and employees

We see the successful management of environmental and climate protection issues,plus a dedicated worldwide talent development strategy as key success factors for thefuture of The Linde Group. This is why this year’s Corporate Responsibility report putsthe spotlight on these factors alongside current non-financial key indicators.

Environmental and climate protectionEnvironmental and climate protection go hand in hand when gas applications reduce or –even better – eliminate hazardous emissions. For Linde, environmental protection refersto the various efficiency measures taken at our production sites on the one hand, and tothe ecological gains which our gases and technologies offer our customers on the other.One of the biggest global challenges we face – and will continue to face over the comingdecades – is how to slow down the process of climate change and mitigate its consequences.Linde has defined climate change as one of the defining forces that will shape the futureof our business. Synergising our gases and engineering know-how, we deliver a broadrange of products and processes to render renewable energy cost-effective, dramatically cutconsumption of natural resources and help reduce or even eliminate harmful emissions. Thisalso reflects our stakeholders’ recommendation to make climate protection a top priority.

Our peopleThe growing gap in demographic trends between industrialised and emerging economiespresents a range of HR management and talent development challenges for a global playersuch as Linde. During the period under view, we developed a range of talent programmesfor the various target groups within our company and started rolling out these initiatives. Wetake as global a perspective as possible on the talent development front. The Junior Circleof our Gases Division, for example, networks talented young employees across Europe. Ourlong-term success depends on our ability to attract highly qualified engineers. However,there is a marked shortage of next-generation engineers especially in Germany. We havetaken a number of steps across all levels of the education system to actively resolve thisshortage. For instance, we have established a number of sponsorships with schools inGermany aimed at raising interest in natural sciences. Looking beyond Germany, we are alsoactively involved in partnerships with universities and the research community.


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The Linde Group

The Linde Group is a world leading gases and engineering company with almost 52,000employees working in around 100 countries worldwide. In the 2008 financial year, itachieved sales of EUR 12.663 bn.

Gases DivisionThe Group comprises three divisions: Gases and Engineering (the two core divisions)and Gist (logistics services). The largest division, Gases, has four operating segments,Western Europe, the Americas, Asia & Eastern Europe, and South Pacific & Africa, whichare subdivided into nine Regional Business Units (RBUs). The Gases Division also includesthe two Global Business Units (GBUs) – Healthcare (medical gases) and Tonnage (on-site)– and the two Business Areas (BAs) – Merchant & Packaged Gases (liquefied and cylindergases) and Electronics (electronic gases). We offer a wide range of compressed and liquefiedgases as well as chemicals and we are therefore an important and reliable partner for ahuge variety of industries. Our gases are used, for example, in the energy sector, in steelproduction, chemical processing, environmental protection and welding, as well as in foodprocessing, glass production and electronics. We are also investing in the expansion of ourfast-growing Healthcare business, i.e. medical gases, and we are a leading global player inthe development of environmentally friendly hydrogen technology.

Engineering DivisionOur Engineering Division is successful throughout the world, with its focus on promisingmarket segments such as olefin plants, natural gas plants and air separation plants, as wellas hydrogen and synthesis gas plants. In contrast to virtually all our competitors, we areable to call on our own extensive process engineering know-how in the planning, projectdevelopment and construction of turnkey industrial plants. Linde plants are used in a widevariety of fields: in the petrochemical and chemical industries, in refineries and fertiliserplants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gasand in the pharmaceutical industry. We enjoy worldwide reach with around 5,200 employeesstaffing over 20 Group companies and local offices. More than 4,000 plants in 100 countriesand over 1,500 process engineering patents bear testament to the exceptional scope of thisbusiness area.


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Key indicators

Non-financial indicators allow us to also document and evaluate the ecological andsocial footprint of our business activities. Our key financial indicators are reportedaccording to our 2008 financial report.

Financial indicatorsOur key financial indicators are reported according to the International Financial ReportingStandard (IFRS) in our consolidated financial statements. You will find more information in our2008 financial report.

Human ResourcesWe have adapted and consolidated our human resources indicators to reflect The LindeGroup’s organisational structure. 31 December is the closing date for each year. Duringthe year under review, we started gradually rolling out our new Group-wide standardisedreporting system. This system scales smoothly, allowing us to easily add new indicators stepby step. The employee figures are reported as full-time equivalents.

Health, Safety, Environment (HSE) indicatorsOur key HSE figures relate to 819 national and international production, sales andadministration locations, covering around 94 percent of the consolidated companies.We are making ongoing efforts to increase standardisation of our data collection methodsand improve the quality and scope of our key indicators. In 2008, we employed a numberof measures to advance data collection across the Group. Key developments here includegreater accuracy in terms of definitions, creating and communicating internal guidelines forrecording and validating environmental indicators, extending data acquisition to companiespreviously not consolidated and to new locations and introduction of a standardised, web-based data capture system.Although these measures – in particular the web-based data capture tool – have a positiveimpact on data quality, we are aware that they may also compromise meaningful comparison

with data from previous years. We realise that the data pool on which HSE indicators arebased involves uncertainty due to the actual nature of the data and the fact that we havelimited means to verify compliance with data capture guidelines. This is compounded by thefact that measurement methods may vary and some indicators are based on estimates orcalculations that have to be regularly updated.We continue to focus on improving the quality and comparability of the HSE data. Above all,we will be stepping up internal checks on data quality across all organisational levels andtightening up documentation of these checks.

We commissioned an independent service provider to audit our reporting of selectedindicators for the first time. The auditors KPMG Sustainability assessed our process forcapturing HSE metrics relevant to our business. The audited indicators are identified with a .The Assurance Report is available here.

You will find additional indicators and detailed information on our CR accounting processeshere.


Fast facts - P.2

2008 2007 2006

FINANCIAl INdICAtORS¹

Sales € million 12,663 12,306 8,113

In Germany % 10.5 10.2 14.6

Outside Germany % 89.5 89.8 85.4

Operating profit 2 € million 2,555 2,424 1,586

Earnings before interest and taxes on income (EBIT) 3 € million 1,703 1,591 989

Earnings before taxes on income (EBT) € million 1,006 1,375 363

Earnings after taxes on income € million 717 952 1,838

Earnings per share 4 € 5.46 5.02 4.66

Dividend € million 303 283 241

Market capitalisation (at closing rate) € million 10,084 15,046 12,579

Capital expenditure (excluding financial assets) € million 1,470 1,035 776

Cash flow from operating activities % 14.8 14.4 10.5

Equity ratio % 34.6 36.9 29.5

Return on capital employed (ROCE) % 12.4 10.3 11.4

Research and development costs € million 104 97 92

Cost of materials € million 5,431 4,662 5,834

humAN RESOuRCES

Number of employees 51,908 50,485 51,038

In Germany % 14.7 14.1 14.1

Outside Germany % 85.3 85.9 85.9

Employees with limited contracts % 4.7 6.7 5.9

Female staff % 20.2 19.4 18.7

Staff turnover rate % 6.6 7.2 6.8

Employees who have taken up

training opportunities % 56.9 54.1 53.1

Personnel costs € million 2,380 2,449 2,809

hEAlth, SAFEtY, ENvIRONmENt (hSE)

Consumption of electricity TWh * 20.0 19.9 20.4

Electricity consumption by air separation plants TWh * 17.5 16.9 17.8

Consumption of natural gas 5 TWh * 23.2 21.9 24.8

Natural gas consumption by HyCO plants 5|6 TWh * 20.7 21.2 20.2

Direct CO2 emissions Million tonnes * 4.5 4.7 4.2

Direct CO2 emissions from HyCO plants Million tonnes * 3.4 3.3 3.1

Indirect CO2 emissions Million tonnes * 9.7 9.7 10.0

Indirect CO2 emissions from air separation plants Million tonnes * 8.4 8.0 8.7

Consumption of water 7 Million m³ * 49.3 54.8 n/a

Water consumption by air separation plants Million m³ * 34.7 33.8 31.7

Number of workplace accidents per million hours worked by

Linde employees (Lost Time Injury Rate; LTIR) 8 * 2.1 2.6 2.6

Number of working days lost per million hours worked 34.1 42.3 70.0

Number of fatal industrial accidents

involving Linde employees 2 6 1

* created an Assurance Report (02.11.2009) for this indicator, which you will find on page 14.

1 BOC is included in this figure from September 2006 to yearend as BOC was consolidated for the first time in September.

2 EBITDA before nonrecurring items, including our share of the income from associates and joint ventures.

3 EBIT before nonrecurring items and before amortisation of fair value adjustments identified in the course of the purchase price allocation.

4 Adjusted for the effects of the purchase price allocation and nonrecurring items.

5 Prioryear figures for 2008 have been adjusted. Some of the information therefore differs from the information given in the 2008 financial report.

6 HyCO plants is a collective term for plants producing hydrogen, carbon monoxide and synthesis gas. This includes steam reformers, partial oxidation plants and methanol crackers.

7 Water consumption refers to drinking water and process water. It does not include oncethrough water for cooling systems.

8 Our high safety standards also apply to contractors working on behalf of Linde. Together with our partners, we have introduced a wide range of measures aimed at raising safety standards across both companies. To assess the success of these measures, we document the LTIR reported by our contractors every quarter and publish these figures in the Internet.


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All consolidated companies

Our Corporate Responsibility Report 2009 is an online document that went live on 2November 2009, accompanied by a fast facts printed brochure. Similar to 2008, thereport covers all consolidated companies in which Linde has at least a 50 percent stake.

Reporting across entire organisational structureOnce again this year, we report according to divisions as there are considerable differencesbetween our main Gases and Engineering Divisions and our logistics business, Gist. See ourregular Corporate Responsibility link at www.linde.com for details on our CR activities at Gistand an overview of activities and initiatives of a regional nature.

Our CR guidelinesThis CR Report follows current, internationally recognised recommendations by the GlobalReporting Initiative (GRI). Both this report and our “Corporate Responsibility 2009. At AGlance.” brochure are available in English and German. The copy deadline was 30 June 2009.The report also includes the annual Communication on Progress (COP) report under the UNGlobal Compact. The Linde Group plans to continue publishing regular sustainability reports.The publication date for the next report will be announced in good time on our website.


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CornerstonesWe feel a strong sense of responsibility towards all of our stakeholders - whether they be shareholders, businesspartners, employees or society at large - and towards the environment. This commitment extends across everyone of our business areas, regions and locations worldwide. At Linde, we have drawn up a voluntary Corporate Responsibility Policy to ensure that key criteria for sustainability are hardwired into our corporate business processes. This policy sets down the principles and guidelines governing sustainability at Linde.


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Understanding and mastering globaltransformation processes

In an increasingly networked world, it has become virtually impossible to divorce thewelfare and security issues facing industrialised nations from the economic and politicalrealities of emerging and developing economies.

The current global financial and economic crisis calls on governments, political circles, societyat large and industry players to fundamentally review the way they think and act. This isreflected in the G20 agenda. Typically concentrated on international financial reforms andmulti-billion recovery packages launched in several countries, the world’s major economiesfrom both the industrialised and emerging world are now also turning their attention towider strategic topics. These include ways of protecting consumers through informationtransparency, combating tax havens and money laundering more effectively and includinglargely sidelined, non-G20 nations who have been worst hit by the recession into the crisismanagement process. In an increasingly networked world, it has become virtually impossibleto divorce the welfare and security issues facing industrialised nations from the economic andpolitical realities of emerging and developing economies.

For us, as for many other global organisations, this means constantly raising the bar – notjust for employee excellence, but also for process quality. We are challenged to increaseproductivity against stiff international competition and expand our leading position in up-and-coming markets without incurring unreasonable business risks – as might be the case inemerging economies that lack political stability. We are called upon to support our customersworldwide in the drive to cut energy consumption, emissions and costs. The market alsoexpects us to partner and innovate the energy delivery chain, delivering solutions – also formobility – with a minimal environmental footprint.

We can only achieve this if we actively live our value system, strictly adhere to our businesscodex and constantly prove our ability to master global change processes as a unit.

One of the biggest challenges we face today is the rapid swell in the world’s population,concentrated in developing and emerging economies. The under-18 population is currentlyestimated at 2.2 billion and 1.9 billion of those youths currently live in developing andemerging countries. These regions will face spiralling demand across the board – foreducation, childcare, healthcare and energy – to mention but a few.

But the demographic trends are anything but uniform. While the population in developingand emerging economies continues to swell, Europe and Japan will see a marked drop in birthrates. In addition, the population in these regions will age significantly. This trend will have amarked impact on our socio-economic system – and thus on our company – over the companydecades. We are pre-empting this shift with a variety of action plans and have strengthenedour pension scheme with a demographics fund, for example.


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development of future-proof, environmentally sound technologies, we are also constantlyworking to maximise energy efficiency across our own process landscape.

The process of global climate change is closely linked to the energy question. Over the nextfew years, we aim to dramatically cut emissions of carbon dioxide and other greenhousegases in order to mitigate the effects of climate change. Our mission is to do everything inour power to develop products and technologies that underpin our position as a leading,responsible company with its sights firmly set on sustainable growth.

To deliver on this mission, we have committed to the ten principles of the UN Global Compactin the areas of human rights, labour, environment and anti-corruption.

Entitled “Shaping Responsibility”, our Corporate Responsibility Report 2009 is only availableonline. On this microsite you can see how we are stepping up to employee responsibilities,corporate citizenship, climate change and environmental protection. You will discover presentconcrete positions in a time of flux.

Best wishes

Professor Dr. Wolfgang ReitzleChief Executive Officer of Linde AG

The two global megatrends climate change and energy demand are already firmly rootedin our corporate strategy. We are pre-empting the inevitable shortage of fossil fuels with aforward-looking strategy based on intelligent solutions. The key to energy security as wemove forward can only lie in diversifying the energy mix and deploying new technologies.Hydrogen is a perfect example of this diversification. Not only are we actively involved in the


CR-Management - P.1

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Putting our values into practice

At Linde, corporate responsibility management means gradually weaving our valuesand guidelines into our processes. It thus bridges the gap between abstract ideas andconcrete value management.

Corporate Responsibility CouncilThe cornerstones of our corporate responsibility strategy are defined by the CorporateResponsibility Council, a body that was founded in 2004. The Council’s remit involvesmaking decisions on the five following action items: Employees, SHEQ (Safety, Health,Environment, Quality), Corporate Citizenship, Ethics and Compliance and Capital Markets,where we focus on Socially Responsible Investments (SRI). The Corporate ResponsibilityCouncil creates a roadmap detailing the goals for the five action items. These objectivesalign with our Corporate Responsibility Policy. The decisions reached by the Council arebinding for the entire organisation. The Corporate Responsibility department is responsible forimplementing the Council’s decisions. This central function is anchored within the umbrellaCorporate Communications & Investor Relations department at company headquarters. TheCouncil comprises Professor Wolfgang Reitzle, Chief Executive Officer of Linde AG, and DrAldo Belloni, Member of the Executive Board, together with managers responsible for thefollowing corporate functions: Corporate Communications & Investor Relations, Group HR,Internal Audit, Group Legal and Group SHEQ.Depending on the area in question, the Council must also work very closely with otherdepartments such as Innovation Management or Corporate Strategy.

Corporate Responsibility RoadmapWe are committed to continually improving, benchmarking and documenting our performanceacross all five action items on our corporate responsibility agenda. Each year, we createa roadmap outlining our corporate responsibility goals and activities. We check that theobjectives and action plan reflect the principles of sound corporate governance and – aboveall – are realistic and attainable. In the medium term, we intend to improve the significance,measurability and transparency of the information presented in our roadmap by quantifyinggoals based on our key indicators. The next step in this direction involves the definition ofGroup-wide concrete environmental targets, such as the reduction of emissions. These will beapproved by the Corporate Responsibility Council in 2010.As sustainability is an increasingly important indicator of a company’s value, our roadmap isalso evolving into a key tool for analysts.


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Our vision

Our vision is to be the world’s leading global gases and engineering group - admiredfor our people, who create innovative solutions that make a difference to the world.This vision defines who we are and what we do and inspires our corporate values.

Our valuesOur core values are “passion to excel”, “innovating for customers”, “empowering people”and “thriving through diversity”. We are guided by a strong sense of safety, sustainability,integrity and respect. Our corporate culture is built on the vision, values and principles thatguide the way we do business. All of which are anchored in the Linde Spirit, our corporatephilosophy that was approved by the Linde AG Executive Board in 2007.

Key guidelines and codesOur Code of Ethics provides an ethical framework that aligns with legal and internal companyregulations. Just like the Code of Ethics, the Linde Group’s Corporate Responsibility Policy alsobuilds on the values and principles set down in the Linde Spirit. Our SHEQ (Safety, Health,Environment, Quality) Policy frames and inspires the continuous worldwide improvement ofour performance in these areas. Together, these guidelines create an umbrella frameworkthat steers the actions of all Linde employees and divisions across the globe. Our ethical/legal procurement guidelines also give valuable guidance. See Corporate Responsibility atlinde.com to see how our various sets of guidelines and codes complement each other toform an integrated whole.


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Linde’s corporate responsibility roadmap

Every year, the Corporate Responsibility Council pinpoints goals to improve oursustainability performance. To ensure that this process remains transparent andtraceable, we publish our goals as a roadmap.

Structuring the roadmapThe roadmap lays out our goals and measures for achieving these goals for each of our fiveaction items: Employees, Safety, Health, Environment, Quality (SHEQ), Corporate Citizenship,Ethics and Compliance, Capital Markets. Above all, we want to be seen as an attractiveinvestment for people with a sense of social responsibility.Each action item is assigned certain topics that we consider to be important. Following theroadmap shows you whether we have reached our targets, are still working on a particularchallenge, or have not managed to reach a milestone for specific reasons.

Key corporate responsibility goals for 2009/2010The focus in the coming fiscal year will remain on environmental and climate protection.Although we have already made substantial progress on this front by improving the qualityof Group-wide data acquisition and by commissioning an independent assurance report, wewould like to continue moving forward with concrete environmental and climate protectiongoals.

Corporate Responsibility Roadmap


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Open dialogue with our stakeholders

The trust our stakeholders place in us is one of our greatest assets, and we strive tojustify and strengthen this trust through open dialogue.

First stakeholder surveyWe conducted our first stakeholder survey on the subject of corporate responsibility in 2006.The results of this survey continue to give us valuable pointers.The participants came from the following areas: Business (business partners and othercompanies), Capital markets (analysts and investors), Science and research, Non-governmentorganisations, Lobbyists (trade associations and other organisations), Politics (governmentalorganisations, politicians) and other stakeholders not assigned to a specific group.The following is brief overview of the resulting long-term recommendations expressed by ourstakeholders:

- Establish more transparency and increased public commitment to key community issuessuch as climate change

- Align certain instruments, such as the Code of Ethics, more strongly with internationalstandards

- Ensure targeted, sustainable product development- Report on dilemmas and challenges- Ensure that voluntary commitment to society is closely tied to Linde’s core businessOverall, stakeholders felt that Linde had a good chance of achieving higher ratings in SRIindexes and funds. And their confidence has been borne out in many instances with anupgrading of our ratings.The results are displayed and evaluated in more detail in the Linde Corporate ResponsibilityReport 2007 on page 015 and pages 028 to 031.

Stakeholder dialogue during the period under reviewDuring the period under review, we intensified dialogue with our customers in particular.Across the widest range of industries – from chemicals through glass to beverages – interestis growing in our corporate responsibility activities. Not only are our customers keen tomitigate risks along their own value chains, they are also asking what technologies Linde candeliver to help them achieve their climate protection goals, for example.At the same time, we have been working more closely with analysts specialised in sociallyresponsible investments. They are looking for increasingly detailed information about oursustainability performance.See Corporate Responsibility at linde.com for an overview of our involvement in associationsand organisations committed to social responsibility.


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Fields of Action


HSE management - P.1

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Cornerstone

The core principle of our SHEQ policy states that “At The Linde Group, we do not wantto harm people or the environment”. This core value guides our actions across theentire SHEQ spectrum and inspires us to make the right decisions. It ensures that atLinde, people always come first.

AimsCertify new locations and recertify existing locations to OHSAS, ISO 14001, ISO 9001.

MeasuresAudits according to internal standards defined in our integrated management system. Roll outnumerous awareness-raising safety and environmental training programmes worldwide.

Facts and Figures

Certified locations

Percentage of HSE-audited locations


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Percentage of employees who have taken up HSE trainingopportunities

Next stepsAccelerate roll-out of our Behaviour SHEQ programme to intensify environmental and safetyawareness.


Our position - S.1

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Cornerstone

The core principle of our SHEQ policy states that “At The Linde Group, we do not wantto harm people or the environment”. This core value guides our actions across theentire SHEQ spectrum and inspires us to make the right decisions. It ensures that atLinde, people always come first.

Integrated management systemsThe integrated management systems deployed by our Gases, Engineering and Gist logisticsDivisions provide the tools to monitor and steer our SHEQ (Safety, Health, Environment,Quality) activities.They incorporate internal SHEQ guidelines and describe in detail the processes that mustadhere with these guidelines in order to meet our internal standards.Our Gases Division is establishing a global system for identifying core requirements andbest practices – Linde Management Systems and Standards (LiMSS). Existing standards willtherefore be replaced by these new global guidelines.The primary aim here is to systematically improve safety and simultaneously cut the risk ofthird-party liability claims resulting from different safety standards within the company.For our Engineering Division, occupational safety, health, the environment and quality havealways been top priorities when planning and building plants all over the world. Since thevast majority of the Engineering Division’s customers use the abbreviation “HSE”, the divisiondecided in consultation with the Executive Board to use “QHSE” instead of the “SHEQ”abbreviation usually used throughout the Group. This is not indicative of any shift in value orweighting of the individual elements.The QHSE policy of our Engineering Division aligns with the SHEQ policy of The Linde Group.Linde Engineering’s integrated management system (IMS) provides an umbrella frameworkincorporating process, quality and HSE management. The system helps Linde Engineeringachieve its strategic goals. Process know-how is a core element of IMS and forms the basis ofall our optimisation initiatives.IMS was developed with the aim of identifying, modelling, consolidating and improvingprocesses.

SHEQ auditsThe internal environmental and safety audits run by our Gases Division comply with the maininternationally recognised standards. Responding to the demands of our customers, mostof our local offices and companies are also certified to ISO 9001. Many locations are alsocertified to the environmental management standard ISO 14001, the Safety Certificate forContractors (SCC) and/or the Occupational Health and Safety Assessment Series (OHSAS18001). We are constantly working to extend certification to more Linde companies.The following chart shows how many locations are certified and the number of SHEQ-auditedoperating facilities.


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Linde as a sustainable investment

Linde is viewed as exhibiting strong potential to assume an exemplary role in terms ofsustainability. To ensure we constantly improve our rankings, sustainability is a high-priority facet of our corporate strategy.

AimsFurther improve rankings among analysts specialised in sustainable business models; gainadmission to additional SRI funds and indices.

MeasuresTransparent, factual reporting on our sustainability performance according to internationalstandards. Open, steady dialogue with analysts, investors, shareholders and rating agencies.

Facts and FiguresDuring the period under review, we considerably improved our sustainability rankings. TheOekom Research rating agency awarded Linde “B” status overall. An “above-average” ratingfrom Sarasin qualifies Linde for the bank’s sustainable investment universe.Swiss-based Sustainable Asset Management (SAM) analysts have given Linde a better ratingthan ever, leaving us just short of Dow Jones Sustainability Index.For the fourth year in a row, Linde participated in the Carbon Disclosure Project (CDP).

Next stepsDefine and publish environmental and climate protection targets, continue close dialog withanalysts and investors.


Education, science and research - P.1

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Community involvement through education

We believe in actively promoting education, science and research. We collaborate withschools and other educational institutes on projects that are closely linked to our corebusiness. Our commitment in these fields embodies the traditional values advocated byour company founder, Carl von Linde.

AimsContribute voluntarily to education as a good corporate citizen, promote natural sciences inschools and higher education institutes, encourage talented students at all levels, renewpromotion of medical research through the Gas Enabled Medical Innovations (GEMI) Fund.

MeasuresSchool projects in Australia, Germany, Great Britain and South Africa. Support of highereducation institutes primarily in Germany.

Facts and FiguresIn fiscal 2008 in Germany, targeted promotion of physics studies, including for examplean award programme for the best dissertations completed in Bavaria. Organisation of the"Inspiring Gases" programme in British schools. Support for schools and pupils in Australiaand South Africa through community involvement programmes. Consolidation of existingcollaborations with higher education institutes, particularly in Germany.

Next stepsIn 2009/2010, roll out online tool to report all community involvement projects worldwide,including educational projects and collaborations.


Our position - S.1

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Community involvement through education

We are actively promoting education, science and research. We collaborate withschools, universities and other educational institutes on projects that are closely linkedto our core business. Our commitment in these fields embodies the traditional valuesadvocated by our company founder, Carl von Linde.

Collaboration with schoolsIn order to encourage the engineers of tomorrow, we must step up our efforts to fosterinterest in natural sciences among children and young people. Which is why Lindeparticipates actively in several national educational initiatives and has also established anumber of its own sponsorship programmes. In addition to supporting schools in general,Linde also sponsors promising students.Ongoing contact with educational organisations is equally important. One such example wasthe open day at our Pullach plant in Germany in the summer of 2009. Here European studentsfrom secondary schools, third-level institutions and postgraduate courses visited our largestplant, all united by a common interest in and pursuit of natural sciences and engineering.These young scientists, who have formed a youth research network, received guided tours ofour production facilities and our technology and research centre. We also hosted a series ofpresentations to tell them more about Linde.We have long-standing sponsorship links with schools in Germany named after our founder.The best natural science students at the Carl von Linde Realschule in Kulmbach and the Carlvon Linde Gymnasium in Kempten (second-level schools, both located in Bavaria, Germany)receive awards on completion of their school studies. At the Carl von Linde Gymnasium, thistradition goes back 46 years.A further sponsorship programme that encourages natural science enthusiasts is our annualdissertation award. Here we give prizes for the ten best dissertations in advanced-levelphysics each year. We work closely with the physics faculties and departments of all Bavarianuniversities for this award.For a number of years now, Linde has also been one of the partner companies affiliated withthe Schloss Hansenberg boarding school in Hessen, Germany. This is currently the only stateschool in Germany that is run as a public-private partnership. The challenging curriculum aimsto help students become well-rounded individuals ready and willing to assume responsibilitywithin society.More information on our international educational projects is provided under CorporateResponsibility at www.linde.com.

Collaboration in higher education and promotion of researchLinde AG is headquartered in Munich, Germany. The Technical University of Munich (TUM) istherefore an obvious choice of partner. The TUM has hosted the Carl von Linde Academy forthe last 5 years. We founded the Academy along with the Carl von Linde Chair of Philosophyand Economic Theory, As a central, interdisciplinary scientific body, the Academy gives youngengineers, computer scientists and scientists a grounding in intellectual, cultural and socialstudies to further their subsequent professional careers. The Carl von Linde Academy thusextends the concept of education beyond pure technical knowledge. The Academy alsoprovides further training for mathematics and science staff. Each semester, highly qualifiedLinde engineers and HR managers give hands-on guest lectures at the university.The Technical University of Munich is also home to the Carl von Linde Foundation. It wasfounded as early as 1932 with the aim of supporting education and research and helping totrain young scientists and engineers in the German state of Bavaria.


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Since 2007, LKCA Dresden, our Engineering subsidiary, has been involved in a dual studyprogramme for field engineering at Dresden International University (DIU). This offers acombination of practical training and in-depth scientific knowledge, preparing students forfuture challenges in the company. After three and a half years, students simultaneouslyqualify as industrial mechanics and Bachelors of Engineering (BEng).Moreover, Linde has been supporting researchers in their quest to find new uses for medicalgases for more than 15 years now. Foundation of the GEMI (Gas Enabled Medical Innovations)Fund extended this programme to the international medical community. Further informationon the GEMI Fund is provided under Corporate Responsibility at www.linde.com.


Community involvement of employees - P.1

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Community projects worldwide

Corporate responsibility extends beyond national boundaries. Linde is not just anindustrial gases and engineering player, but also a corporate citizen of the societieswhere Linde people live and work around the globe.

AimsSystematic record all community projects worldwide in which we as a company or ouremployees are involved. Identify best practice projects.

MeasuresEstablish an internal network bringing together employees who are responsible forcommunity projects in the Divisions, Business Areas and Global Business Units.

Facts and FiguresIn fiscal 2008, Linde sponsored 21 separate projects at Group level. We donated around190,000 euros to emergency relief efforts following the earthquake in Sichuan, China.

Next stepsIn 2009/2010, roll out online tool to report all community involvement projects worldwide,including educational projects and collaborations.


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Community projects worldwide

Corporate responsibility extends beyond national boundaries. Linde is not just anindustrial gases and engineering player, but also a corporate citizen of the societieswhere Linde people live and work around the globe.

Activities in Europe, Americas and AsiaIn Great Britain and Ireland, our sense of corporate social responsibility is expressed mainlythrough education and medical research. This is flanked by employee involvement incommunity projects in these countries. In Great Britain, for example, we match the donationsmade by our employees to charitable causes. In the UK and Ireland Regional Business Unit(RBU), we also support selected community involvement programmes.Although the South American economy is generally up-and-coming, standards of livingstill vary considerably throughout the region. We are committed to supporting the entireregion, largely through numerous local community projects, many of which benefit from thedirect and active involvement of our people. Donations and the personal commitment of ouremployees underpin our commitment to education, health and environmental protection.North America, on the other hand, is one of the most highly developed and advanced regionsin the world. Traditionally, many companies show strong social commitment, and we alsoplace great emphasis on our social responsibilities in this region. Our activities includesupporting the ill and disadvantaged and investing in professional training for young peoplein North America.South and East Asia is regularly stricken by natural disasters such as strong earthquakes and/or the accompanying tsunamis, as well as widespread flooding. In the event of such disasters,we contribute to both emergency relief operations and longer-term support projects.

Community involvement programmesOur community involvement or community investment programme provides the overarchingstructure for our corporate social responsibility activities in the South Pacific and AfricaRBUs. In Australia and New Zealand, the programme essentially comprises three sponsoringprojects. These offer assistance to children suffering from cancer, promote road safetyawareness among school children, and support environmental projects focusing on waterprotection in particular.In South Africa, our subsidiary Afrox is bound by law to show a sense of corporateresponsibility. Companies must prove that they comply with a strict corporate governancecodex before they can do business with public bodies or government authorities in thiscountry. However, long before legal corporate responsibility requirements were even put intoplace, Afrox had already founded the Community Involvement Programme (CIP) that givesemployees the opportunity to support community projects run by local organisations. Ourcommitments here include implementation of the Broad Based Black Economic Empowerment(BBBEE) guideline, a donations programme, support for a vocational welding school, as wellas support for the education and training of underprivileged students.


Healthcare for our employees - P.1

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Multifaceted healthcare programme

Healthcare and occupational safety go hand in hand, which is why they alwaysfly under the same banner at our company. Various central functions such as SHEQand Group Human Resources work closely to ensure ongoing improvements on thehealthcare front.

AimsDevelop a healthcare strategy and create uniform standards for healthcare servicesthroughout the Group. Reduce the number of days lost due to sickness, encourage employeesto adopt a healthier lifestyle.

MeasuresSurvey of all Linde locations worldwide regarding the quality of healthcare.

Facts and Figures Average number of days sick leave per employee

Next stepsLaunch a Group-wide programme to minimise health risks to employees, particularly thoseinvolved in manual work. This includes noise protection, for example, as well as training inthe correct handling of chemicals.


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Multifaceted healthcare programme

Healthcare and occupational safety go hand in hand, which is why they alwaysfly under the same banner at our company. Various central functions such as SHEQand Group Human Resources work closely to ensure ongoing improvements on thehealthcare front.

Global healthcare management auditIn 2008, a central Occupational Health and Hygiene officer was appointed. Under this newmandate, a Group-wide quality audit was carried out between November 2008 and January2009. This not only gave an overview of the current status; the findings also feed into newobjectives. Overall, around 80 Linde locations (regional subsidiaries of the Gases Division, theEngineering Division and the Electronics Business Area) answered around 60 questions. Thesewere related to issues such as guidelines, healthcare standards, medical check-ups, filing ofdata as well as regulations for handling chemicals.Evaluation of the responses showed that the strengths and weaknesses of healthcareservices vary from region to region. While there are numerous excellent programmes, thesetend to be local. In the regions surveyed in China, for example, all employees take an annualmedical check-up and are also covered by health insurance. The occupational safety andhealthcare management system in place at all locations included in the African RegionalBusiness Unit (RBU) as well as at the regional subsidiaries in Denmark and Finland is alreadycertified to the international standard OHSAS 18001. Other examples of how wide-rangingour healthcare services already are include health guidelines for employees involved inmanual work, rehabilitation programmes for employees returning to work following longerperiods of illness, regional subsidies for sporting activities, as well as programmes aimed atpreventing domestic violence.

Healthcare schemes in the Engineering DivisionFor many employees, being part of our international plant engineering business means livingand working abroad. However, unfamiliar climates and standards of hygiene can quicklycause illness and premature termination of overseas postings. Our Engineering Divisiontherefore has a strong focus on preventive healthcare, and offers comprehensive travelservices. Appropriate medical check-ups are mandatory for Engineering Division employeesprior to any business travel abroad or on-site assignments. These ascertain medical fitness foroverseas travel, for instance via stress ECGs, and ensure that the employee has the requisiteimmunisations. In addition, every employee receives a first-aid kit tailored to their particularcountry of destination. We also ensure it is clear beforehand how they can obtain reliablemedical care once they have relocated.


Climate protection strategy - P.1

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Climate protection across different value chains

We deliver products and processes that make renewable energies cost-effective,dramatically cut consumption of natural resources and help reduce or even eliminateharmful emissions.

AimsImprove energy efficiency, reduce greenhouse gas emissions, define Group-wide objectivesfor climate protection.

MeasuresImprove energy efficiency of air separators. Provide gas solutions that enable our customersto reduce emissions and increase energy efficiency. Use modern, environmentally friendlytechnologies in plant engineering. Set up pilot plant for second generation (2G) biofuels.

Facts and Figures CO2 emissions in million tonnes

Next stepsAnalyse the possibility of plant-specific efficiency targets. Calculate the carbon footprint ofcertain industrial gases.


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Climate protection across different value chains

We deliver products and processes that make renewable energy cost-effective,dramatically cut consumption of natural resources and help reduce or even eliminateharmful emissions.

CornerstonesIn our Corporate Responsibility and SHEQ policies, we make a firm commitment to protectingthe environment, offering safe, eco-friendly products and services and pursuing research anddevelopment into particularly sustainable products, services and technologies. We regularlymeasure and evaluate company processes that have an impact on the environment andclimate, publishing the results in our annual Corporate Responsibility Report in accordancewith internationally approved standards. Measures to support climate protection arein place in both divisions, albeit at different stages of the respective process chains.However, the deployment of our industrial gases and process technologies offers numerousopportunities to conserve energy, reduce emissions, utilise solar energy in a more efficientand environmentally friendly fashion and produce fuel from biogenic raw materials.

Climate protection in the Gases DivisionClimate protection in this Division focuses primarily on our most energy-intensive productionfacilities: air separators and HyCO plants, whose primary products are hydrogen and carbonmonoxide. We are also working to optimise our route planning for road transit – whether forgas cylinders or liquid gas in tank vehicles – to cut fuel consumption and thus emissions. Ourgases also enable highly diverse applications geared towards climate protection, both byreducing and substituting harmful emissions. Find out more about some of our particularlyenvironmentally friendly applications and processes under Corporate Responsibility atwww.linde.com.We have already prepared lifecycle assessments evaluating the eco balance of oxygen andhydrogen.

Climate protection in the Engineering DivisionIn this Division, climate protection is integrated into all three process levels – management,core and support.At a management level, climate protection is covered under the QHSE managementprogramme. At a core process level, the spotlight is on the preparation of tenders and plantplanning. Whenever possible, our Engineering Division offers tried-and-tested processtechnologies that extend beyond the customer’s RFQ and/or local environmental regulations.Here we always undertake to advise our customers of the benefits of these solutions anddemonstrate how they could be integrated into the relevant project. Another of our HSEEssentials, this undertaking is a further example of the Engineering Division’s new QHSEpolicy in practice. Our engineering and environmental safety department ensures that theplant is engineered in accordance with customer specifications, applicable laws and statutoryregulations, established guidelines and standards, and the latest advances in engineeringand environmental safety. Further details are provided under Corporate Responsibility atwww.linde.com.


Work/life balance - P.1

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Achieving a good work/life balance

We support our employees in achieving a successful balance between private andprofessional goals in many countries, Germany included.

AimsEmbed work/life balance within the larger context of demographic trends.

MeasuresHelp in locating family services (childcare, advice on care options for elderly or sick familymembers) in Germany, similar offers in other countries.

Facts and Figures Percentage of part-time employees

Proportion of women in percent


Work/life balance - P.2

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Percentage of women in senior management positions

Next stepsIn 2010, the demographic trends taskforce will resume regular meetings.


Our position - P.1

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Achieving a good work/life balance

We support our employees in achieving a successful balance between private andprofessional goals in many countries, Germany included.

Family services in GermanyA successful career also hinges on a good balance between private and professional goals.To support its employees in this regard, Group headquarters, the Gases and EngineeringDivisions, and participating subsidiaries in Germany have joined forces with an externalconsultant to help employees find appropriate childcare. This system has been in placefor more than two years now, and caters for children of all ages. Having reviewed the agestructure of our employees, we also introduced a Homecare or Eldercare service in January2008 to support employees with family members who are ill or require special care. Offeringsupport when family members become ill or require special care is becoming more and morevaluable, as a significant number of Linde employees belong to the sandwich generation – inother words, they are raising children while their parents are arriving at an age where theymay also require special care. What makes the situation all the more difficult is the need toact quickly, as illness or the need for special care can often arise without warning. Supportservices offered by an employer can be vital in such cases. As an employer, Linde covers allconsultation and service-finding fees. The actual care services such as childminders, crèchefacilities, or nursing care for the elderly are paid for by the employee.

Childcare vouchers in Great BritainEmployees at our British subsidiary can take advantage of childcare vouchers. These areclassed as non-cash benefits and the value of the voucher is added to the gross salary beforetax. The vouchers can be redeemed at state-approved childcare facilities. We are currentlyconducting an international review in order to determine the Linde locations where similarfamily-oriented programmes have already been introduced.


Environmental management - P.1

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Environmental protection and environmentalmanagement

The production of industrial gases accounts for the lion’s share of our eco footprint.However, we also pay close attention to environmental protection in all of our non-production processes.

AimsImplement a standardised, Group-wide environmental management system, flanked byregular audits and training. Define quantitative targets for emissions and other environmentalmetrics such as energy and water.

MeasuresIn some cases, environmental management systems and environmental targets are alreadyin place on a regional level and should be consolidated centrally. Improve eco reportingworldwide. Conserve resources, particularly water and electricity.

Facts and Figures

Energy consumption in GWh



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Total waste in tonnes

Percentage of waste by disposal method



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Water consumption in million m³

Next stepsRoll out the Linde Integrated Management Systems and Standards ("LiMMS") web platform.Define environmental targets; focusing in particular on direct and indirect CO2 emissions.


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Environmental protection and environmentalmanagement

The production of industrial gases accounts for the lion’s share of our eco footprint.However, we also pay close attention to environmental protection in all of our non-production processes.

Environmental protection in the Gases DivisionIn our Group Corporate Responsibility policy, we make a firm commitment to protecting theenvironment and conserving natural resources. At Linde, environmental protection refers tothe various measures taken within and by our company, for example at our production sites.Environmental protection in the Gases Division includes the certification of locations to ISO14001, measures to cut energy consumption, reduction of direct and indirect greenhouse gasand other air emissions, waste management, eco-friendly management of water consumptionand wastewater disposal, documentation and, where applicable, a reduction in materialsconsumption (metal, packaging materials) and reporting on key environmental indicators.One of our big current projects in this area involves raising minimum environmental standardsas part of the existing Integrated Management System (IMS). This is based on a moredetailed impact analysis and an action plan to better monitor, reduce or – even better –eliminate our environmental impact in certain areas. Regular training and audits will ensurecompliance with the new standards. And our Corporate Responsibility Report will documentimprovements here.See Corporate Responsibility at linde.com for further information on environmental protectionprojects within the Gases Division and details of the environmental gains our customers canenjoy by deploying our gases and technologies.

Environmental plant engineering conceptsThe Engineering Division operates over twenty locations worldwide, the majority of which areplanning offices. Here our facility management activities ensure the careful use of resourcessuch as energy and water. We measure the ecological footprint of this division’s locations bylargely the same criteria applied to the Gases Division, with the exception of plant-specificdata. However, the scale of consumption here pales in comparison to that of a productionsite.So our engineers take all the more care in plant planning, considering both materialsconsumption (e.g. tonnes of steel required for plant construction) and energy requirements,plus air, noise and wastewater emissions during future operation of the plant. Communicationwith our customers is very important in this respect, to convince them of the merits ofthe latest green technologies. We generate a detailed environmental protection plan forevery plant we engineer. This comprises an emissions list, a framework for obtaining officialenvironmental clearance and specifications for noise protection measures. The emissions list,in turn, consists of a drainage and wastewater treatment plan and an air pollution controlconcept. These are incorporated in the plant operating manuals.


Demographic trends - P.1

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Talent development faces new challenges

The increasing average age in industrialised countries and the need for qualified talentin less developed countries present new challenges for a global player such as Linde.

AimsUnder the umbrella of our People Excellence initiative, establish a standardised, Group-wideleadership competency model spanning succession planning and development programmesfor expert and leadership skills by the end of 2009.

MeasuresEmbedding People Excellence into all talent development processes, establishment of theLinde University.

Facts and Figures Age structure of permanent staff in percent

Next stepsTrain older employees and of those with limited qualifications at Linde Gas, Germany,projects for talent development in the Global Business Units Healthcare and Tonnage, internalmentoring programme at Linde Engineering.


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Talent development faces new challenges

The increasing average age in industrialised countries and the need for qualified talentin less developed countries present new challenges for a global player such as Linde.

Lifelong learningThe shift in global demographics presents a range of HR management challenges. On theone hand, we face a rapidly ageing population and rising life expectancy in industrialisedcountries. On the other, we need to systematically tap and develop talent in emergingand developing countries. In many industrialised countries, Germany included, the pool ofqualified specialists is dwindling and experts are urgently needed. This is attributable tofalling birth rates and reduced investment in education.There is an acute shortage of engineers in particular. The ability to attract highly qualifiedengineers is, however, crucial to the long-term success of a technology player such as Linde.We have taken a number of steps across all levels of the education system to actively resolvethis shortage. For instance, we have established a number of sponsorships with schools inGermany aimed at raising interest in natural sciences. Looking beyond Germany, we are alsoactively involved in partnerships with universities and the research community.Another example of our proactive stance in this area is the active encouragement of learningamong older members of staff through the WeGebAu (Weiterbildung Geringqualifizierter undbeschäftigter älterer Arbeitnehmer in Unternehmen) programme. We are initially rolling thisscheme out in Germany in conjunction with Bildungswerk der bayerischen Wirtschaft, theeducational institute of industry and commerce in Bavaria. This move underpins our belief intargeted education opportunities for employees of all ages.

Global, dedicated talent developmentTo ensure we can meet our future needs along the full competence chain, we take as globala perspective as possible on talent development. The Junior Circle of our Gases Division, forexample, networks talented young employees from around the globe at a regional level.Competence networking complements traditional hierarchical structures, also increasingresponsiveness and speed across divisions. Under the umbrella of our People Excellenceprogramme, our various HR development initiatives are designed in a modular fashionto meet the needs of different target groups. We believe in complementing theory withhands-on experience, giving our trainees the best possible springboard for a successfulcareer in our company. Group-wide examples of this in practice include training schemesfor future managers. They are coached by Linde-certified trainers who are qualified asengineers, scientists or technicians. Our Line Manager Training Programme is targeted attop and second-level managers as these carry the greatest direct responsibility for staffat Linde. One of the core competencies acquired with this course is people management –how to effectively steer and actively engage employees in such a way as to strengthen thecompany’s position as a whole.


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Evaluating customer satisfaction

Customer satisfaction with our products and services is a key success factor for all ourdivisions and business areas. And so we regularly and systematically ask our customershow we rate.

Examples of customer surveysEach year, Linde Gas Germany commissions an independent body to conduct a customersatisfaction survey on our products and services. In 2008, a representative sample of around2.300 customers were contacted across five sales regions in Germany. They were divided intopick-up, drop-off and tank customers. Customers who had been surveyed in previous yearswere not included. Survey topics include customer satisfaction with in-house and field serviceand with logistical services.The responses demonstrate that our customers are satisfied with Linde as a gases supplierand service provider, with good/above-average rankings compared with our peers. We aimto continue improving on this excellent foundation. Concrete areas of improvement includeconsulting from our in-house sales and service advisors, service quality and complaintshandling.Customers in the Electronics Business Area are particularly demanding when it comesto quality. These exacting demands have largely shaped the Global Quality Roadmapestablished by the Electronics Business Area. This programme provides guidelines and anindicator system to help employees in this Business Area meet customer expectations anddemands more effectively.It is also very important to evaluate customer satisfaction among medical gases customersof our Healthcare Global Business Unit. Our medical gases are used by both homecare andhospitalised patients. Hence satisfaction extends beyond statutory quality and purity levels toinclude soft factors such as the delivery service offered by our field staff.In the Engineering Division, customer satisfaction is also analysed and reported each year.

Ensuring that customers handle our gases correctlyIn the Gases Division, our product stewardship activities include customer screening. Here,specially trained Linde technicians perform pre-delivery assessments at customer sites toensure the prerequisites are in place to handle gases correctly. We have drawn up a productlist specifying the gases that are subject to this screening. By the same token, our customerscan expect support from us around the clock.Should any problems with gas cylinders arise outside business hours or at the weekend, ouremergency teams are on hand to prevent accidents, for instance resulting from leaks.What’s more, we dispose of residual CO2 when storage facilities and tanks are dismantledor tested, for example. We are the only gases manufacturer with our own vehicle speciallydesigned to empty CO2 for this purpose. We also encourage customers to return surplusgases, cylinders and valves, and offer our services to help them recycle and reuse gases in anappropriate manner.See Corporate Responsibility at www.linde.com for more information on product stewardshipand the significance of REACH (Registration, Evaluation and Authorisation of Chemicals) for usand for our customers.


Plant safety - P.1

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Engineering safety into planning and operation

We identify safety risks and analyse them systematically at all stages of the plantlifecycle - from planning by our Engineering Division to operation by our Gases Division.

AimsMinimise risks and comply with legal and internal regulations.

MeasuresAnalyse risks systematically during plant planning (Hazard and Operability Study, HAZOP) andoperation (Major Hazard Review Program, MHRP).

Facts and FiguresIn 2008, around 300 Linde Gas locations with larger production facilities or particularlyhazardous operations were awarded internal licenses according to MHRP.

Next stepsImplement a standardised Major Hazards Review Programme (MHRP) for all Linde Gaslocations; introduce Gate Reviews globally across the Engineering Division to systematicallyverify compliance with quality and HSE requirements during each planning phase of anengineering project.


Our position - P.1

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Engineering safety into planning and operation

We identify safety risks and analyse them systematically at all stages of the plantlifecycle - from planning by our Engineering Division to operation by our Gases Division.

Operational safetyRisks that our plants might pose to employees and any neighbouring companies or peopleliving in the vicinity must be systematically identified and evaluated. We are rolling out amanagement system, the Major Hazards Review Programme (MHRP), across the entire Groupfor this purpose.Its objectives include identifying the maximum potential hazards and managing themeffectively. It is also important to measure risks on a uniform basis for all locations andintroduce controls that minimise these risks as far as possible. Monitoring the maximumpotential hazards encompasses all key aspects of occupational health, safety andenvironmental protection.As a minimum requirement under the MHRP, all locations operated by Linde that store orprocess hazardous substances (including pipeline transport) must possess a valid licenceawarded following an internal audit.We are currently working on the new Linde Group MHRP standard. In future it will divide alllocations into three categories, with category 1 representing the greatest hazard potential.At a regional level, we pursue other risk prevention programmes as well as Major AccidentPrevention Policies (MAPP) in line with our SHEQ policy, strengthening the aim of TheLinde Group to avoid harming people or the environment and defining concrete areas ofresponsibility.

Engineering safetyAlmost every plant we build is unique; tailored to individual process requirements, capacitydemands and site conditions. To ensure effective project execution that complies with allQHSE (Quality, Health, Safety, Environment) specifications, our engineering process followsa clearly defined, step-by-step blueprint. Design reviews play an important role here, withinterdisciplinary teams checking requirements are implemented in line with QHSE regulations.These mandatory reviews also include the hazard and operability study (HAZOP). Experts,usually led by an external supervisor, analyse in detail occupational safety for each individualpart of the plant. This process – often requested by the customer – may take between oneand two months, depending on the plant size and type. Although the customer is responsiblefor plant safety after handover, Linde Engineering builds up to this with in-depth advice andtraining, also supporting operations post-handover if required.This stringent quality assurance process ensures that QHSE specifications are incorporated atall plant engineering steps.See Corporate Responsibility at www.linde.com for more information about HSE managementand HSE Essentials at our Engineering Division.


Green innovations - P.1

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Innovating to protect the environment andclimate

Our environmental strategy includes pre-empting future ecological challenges. So wemeasure and evaluate the potential of our innovative technologies to protect theenvironment and climate and to conserve natural resources.

AimsMeasure and evaluate our innovation potential to protect the environmental and climate.

MeasuresDevelop an Environmental Innovation Performance (EIP) leading indicator.

Facts and FiguresQuantitative data gathered over time; to be published as of 2010 at the earliest.

Next stepsRoll out the EIP indicator across all Engineering Division product lines; introduce the EIPindicator in Research and Development in our Gases Division.


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Innovating to protect the environment andclimate

Our environmental strategy includes pre-empting future ecological challenges. So wemeasure and evaluate the potential of our innovative technologies to protect theenvironment and climate and to conserve natural resources.

Environmental Innovation Performance leading indicatorA company’s environmental performance is generally measured by the environmentalimpact of its operations and its response to that impact. However, to really make a mark inthe sustainable growth space, a company must also pre-empt future eco-challenges andincorporate these into its environmental planning. This includes innovations targeted atenvironmental and climate protection. A forward-looking strategy is essential for manycompanies in order to maintain their competitive position as market dynamics change (inresponse to resource shortages for example).As a technology player, we innovate to optimise our own processes and those of ourcustomers. This adds economic value to our ecological achievements. Hence laggingindicators (such as the absolute number of patents registered in a fiscal year) do notreally capture the big picture. So we have also introduced an Environmental InnovationPerformance (EIP) leading indicator to benchmark our Engineering Division’s innovativecontribution to environmental and climate protection.

The Environmental Innovation Performance (EIP) indicatorThe EIP indicator benchmarks our Engineering Division’s strategic environmentalperformance. The first step in measuring environmental innovation performance involvesdocumenting all current development projects. These are assigned to “eco classes”depending on their focus. Linde has defined six eco classes, including technologies basedon renewable resources, carbon capture, storage and recycling and ways of reducing otheremissions. This includes projects for treating wastewater emissions and reducing acid gasesthat combine with water to create acids.

The next step involves defining the current level of maturity according to our ranking system.This allows us to check whether the technology is in the incubation, accelerated developmentor final phase. Development projects are then mapped to a matrix where the ecologicalpotential of a project is multiplied by a given maturity factor. Additional indicators allow usto plot changes in ecological potential over time. The EIP gives Linde the chance to evaluateits environmental innovation capability in quantitative and qualitative terms. It also makes iteasier for us to transparently communicate our performance in this area.


Winning and developing talent - P.1

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Rich spectrum of professional opportunities

Linde offers a wide variety of tasks in numerous different fields worldwide, so we areconstantly looking for highly qualified new talent. We look for results-driven peoplewho combine an entrepreneurial, hands-on approach with team spirit and a passion forwhat they do.

AimsA look at Linde’s appeal as an employer – particularly for engineering and natural sciencegraduates.

MeasuresVarious recruitment activities; wide range of training opportunities; skill-building afterstarting career.

Facts and Figures Percentage of trainees

Percentage of trainees in Germany

Next stepsInclude introduction of the student loyalty programme “CONTINUE” at Linde Engineering.


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Rich spectrum of professional opportunities

Linde offers a wide variety of tasks in numerous different fields worldwide, so we areconstantly looking for highly qualified new talent. We look for results-driven peoplewho combine an entrepreneurial, hands-on approach with team spirit and a passion forwhat they do.

Internships and training opportunitiesAnyone who is fascinated by gases and engineering will receive a warm welcome at Lindeand discover a host of interesting training opportunities, ranging from initial work experienceand student internships to trainee placements overseas. Our Action programme was speciallycreated to support high-flying students – offering supplementary seminars, help searching fora suitable internship abroad and assistance with dissertations, for instance.Any student can apply to prepare their dissertation or thesis project at The Linde Group. Ourdissertation forum offers a range of topics. We also offer student apprentices the opportunityto flank their studies with practical experience in one of our areas of expertise. In addition,Linde regularly participates in job fairs.We offer a wide range of industrial/technical and commercial training opportunities, both inGermany and worldwide. Our vocational training is not only about transferring knowledge,it also fosters personal development and a sense of initiative. Linde companies in Germanysupport vocational schools by offering supplementary tuition, voluntary further trainingopportunities and even short-term apprenticeships abroad.In addition, we offer dual study programmes as an alternative to traditional higher educationcourses. These programmes combine practical training with studies at a vocational institute orstate academy. In Germany, Linde partners with state academies in Stuttgart and Mannheim.

Talent management and Linde UniversityUnder the umbrella of our People Excellence initiative, we run a variety of talentdevelopment programmes to support our employees in gaining leadership and specialist skillsonce they have started their careers. Talent management at Linde bundles all processes thatharmoniously align each individual’s professional growth with Linde’s business objectives.At Linde, employees have a wealth of opportunities waiting for them, including the option tochange division, team or actual job across national boundaries. Our graduate and exchangeprogrammes are designed to foster international know-how transfer, and allow our people tobuild networks across the Linde world.We also offer our employees a challenging and rewarding suite of education programmesat regional and global levels. These programmes aim to develop the key qualities we lookfor in our people. Under the umbrella of The Linde University, we have an established globaltraining and development framework for leadership and business management skills, aswell as continuing professional development. The Linde University curriculum combinesboth classroom-based and online, interactive learning programmes. To channel the latestscientific findings and academic insights into the learning experience, we partner withleading universities around the world. And we involve our most senior managers in oureducation programmes to create learning experiences with lasting practical impact.


Safe handling of gases - P.1

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Safety is no accident

Long-term success in the pursuit of safety is only possible if we are constantly vigilantin all our actions and areas of responsibility. Safety is our no. 1 priority - this applies tothe entire Linde Group and along the extended Gases and Engineering value chains.

AimsCreate a strong safety culture at all locations; promote safety awareness among employeesand management; zero accidents; product safety; compliance with legal and internalregulations.

MeasuresIntensive training for employees and management; Integrated Management System (IMS)for Safety, Health, Environment, Quality (SHEQ); data capture; external and internal safetyreporting.

Facts and Figures Number of workplace accidents per million hours worked by Lindeemployees (LTIR)


Safe handling of gases - P.2

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Number of workplace accidents per million hours worked bycontractors (LTIR)

When reviewing this data, it should be noted that we rely on our contractors to supply uswith accurate, reliable figures.

Number of fatal industrial accidents

Next stepsReduce the number of traffic accidents and lower the Lost Time Injury Rate (LTIR); introducethe Golden Rules for Safety worldwide to strengthen safety awareness within the company.


Our position - S.1

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Safety is no accident

Long-term success in the pursuit of safety is only possible if we are constantly vigilantin all our actions and areas of responsibility. Safety is our no. 1 priority - this applies tothe entire Linde Group and along the extended Gases and Engineering value chains.

Safety – for Linde and our customersOur Safety, Health, Environment, Quality (SHEQ) policy guides our safety managementactivities. The core principle of this policy states that “At The Linde Group, we do not want toharm people or the environment”.In reality, this means that all Linde employees, partner employees, contractors and customersmust look beyond getting maximum return on our gases to also prevent accidents anddamage.Linde’s safety culture is defined by Group-wide safety regulations, which are then adaptedand implemented at regional and local level in line with specific requirements.The integrated management systems deployed by our Gases, Engineering and Gist logisticsDivisions provide the tools to monitor and steer safety management. They form a basicframework that governs our behaviour across the board and especially at management level.Each employee must comply with safety regulations. In other words, he or she must assumeresponsibility for their personal and collective safety.We systematically train our employees to identify risks. However, our training extendsbeyond identification. Through films and a risk matrix, we also ensure our employees areable to correctly assess risks. After all, correct classification is the only way of ensuring thatsuitable preventive measures are implemented.Meeting legal regulations on safety in the workplace can pose a major challenge for manyoperators of gas plants. So, in many countries, we bundle the requisite know-how andmeasures into safety programmes, enabling precise implementation of relevant occupationalsafety guidelines. Our customers can therefore be sure that they are fulfilling their specificobligations to the letter. We also provide thorough support for customers purchasing cylindergases, advising them on a range off issues from safe transport to correct disposal methods.

Safety is the top priority for many processesOur comprehensive safety management programme includes product stewardship, REACH(Registration, Evaluation and Authorisation of Chemicals), safety datasheets, training,transport safety, plant safety and occupational safety, as well as healthcare. See CorporateResponsibility at linde.com for more detailed information on these topics.For example, transport is the core business of our Gist Division, but is also among the keyprocesses of our larger Gases and Engineering Divisions. While the Gases Division deliversits products to customers itself, either by pipeline or transport fleet, the main focus for theEngineering Division is on careful selection of transport service providers and precise timing.Safety plays a central role in all our transport activities.The transport of gases is regulated by the ADR (European Agreement concerning theInternational Carriage of Dangerous Goods by Road, from the French: Accord européen relatifau transport international des marchandises Dangereuses par Route). The potential hazardsof such transport are significantly reduced by handling the products correctly, knowing theirproperties and optimising packaging.Transport incidents can be very hazardous and are among the safety risks we particularlyfocus on. Our aim is to reduce the number and frequency of transport-related accidents –both among Linde employees and our contractual partners.


Resource-efficient production - P.1

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Systematically optimising processes

Our aim is to continuously cut water and energy consumption in productionprocesses within our Gases Division in particular. At the same time, we are looking topermanently reduce air and water emissions and waste levels.

AimsCut energy consumption; use energy efficiently in production processes; avoid or furtherreduce greenhouse and other gas emissions; reduce water consumption and emissions intowater; reduce waste volumes; lower the hazardous potential of waste; improve our disposalpolicy; monitor and reduce noise emissions; and improve transport logistics.

MeasuresMeasurement and evaluation of our environmental performance, environmental optimisationprojects at many locations worldwide.

Facts and Figures Electricity consumption by air separation plants in GWh



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Indirect CO2 emissions from air separation plants in million tonnes

Water consumption by air separation plants in million m³



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Natural gas consumption by HyCO plants in GWh

Direct CO2 emissions from HyCO plants in million tonnes

Next stepsDefine quantitative environmental targets for the Group, focusing in particular on direct andindirect CO2 emissions.


Our position - P.1

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Systematically optimising processes

Our aim is to continuously cut water and energy consumption in productionprocesses within our Gases Division in particular. At the same time, we are looking topermanently reduce air and water emissions and waste levels.

Improving productivity at our air separation plantsResource efficiency is essential to optimise energy consumption, air and water emissions,water consumption, waste volumes and transport logistics. See Corporate Responsibility atlinde.com for more information on each of these areas.The business of producing industrial gases is energy-intensive, so cutting consumption andusing energy efficiently is one of our main production challenges. All progress on this fronthelps reduce greenhouse gas emissions.The Linde Group’s total energy consumption includes our use of fuels and energy fromexternal power plants, such as electrical energy and district heating. Electricity and naturalgas are our main sources of energy here, required in particular to operate our air separationand HyCO plants. Over 80 percent of the electricity we consume is used in the courseof air separation, and our HyCO plants account for around 90 percent of our natural gasconsumption.We are constantly optimising our production processes to improve the productivity andenergy efficiency of our plants. Innovations and energy management programmes are thekey to a more economical use of energy and lowered greenhouse gas emissions.

Worldwide environmental projectsIn our Continental & Northern Europe Regional Business Unit (RBU), we pursue a number ofchannels to optimise our plants and delivery processes.The electricity saved just by using a new turbo compressor for oxygen in our air separationplants amounts to around 13,000 megawatts per year, for instance. To promote this type ofachievement within our organisation, we have launched an energy prize for air separationplants in Germany. This is awarded to plant managers who achieve the most energy-efficientratings.In IJmuiden, the Netherlands, we initiated a production optimisation project at our airseparation plant. Energy savings from this are estimated at 6,700 megawatt-hours per year.Another project at the same location has also cut energy consumption by a further 700megawatt-hours per year by reducing the temperature of the coolant in winter months.We have also taken measures to make the distribution of our gases by truck more efficientand environmentally friendly.In addition, we have modernised our fleet in Germany, replacing several five to six year-old trucks with new, lighter vehicles. Offering lower fuel consumption, these new vehiclescomply with EURO4 or even EURO5 emissions standards. And we hold special eco-drivingtraining courses to help our drivers increase fuel efficiency.We transfer programmes that have successfully minimised environmental impact toprojects at other sites across the globe in line with our best practice policy. See CorporateResponsibility at www.linde.com for examples of these programmes and projects at RBUlevel.


HSE management among contractors - P.1

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Core HSE requirements are an integral part ofagreements with contractors

For our Engineering Division, occupational safety, health, the environment and qualityhave always been top priorities when planning and building plants all over the world.

AimsEnsure contractors comply with core HSE requirements on construction sites.

MeasuresThe authorisation process for site contractors working for the Engineering division must berepeated to ensure HSE compliance with each new project.

Facts and FiguresReducing contractors’ Lost Time Injury Rate (LTIR).

Next stepsContinue to monitor contractors’ Lost Time Injury Rate (LTIR).


Our position - P.1

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Core HSE requirements are an integral part ofagreements with contractors

For our Engineering Division, occupational safety, health, the environment and qualityhave always been top priorities when planning and building plants all over the world.

HSE Essentials in the Engineering DivisionLinde management has defined a set of core regulations called HSE Essentials (Health,Safety, Environment). These also cover HSE requirements on non-Linde construction sitesand the procedure in the event of unacceptable risks to Linde Engineering employees onsites not under Linde’s jurisdiction. These Essentials are binding for all the subsidiaries of ourEngineering Division. See Corporate Responsibility at linde.com for more information.Core HSE requirements for construction sites are defined in our HSE “Site” programme.This regulates areas such as risk assessment, HSE coordination, work-permit procedures,HSE training, personal protective equipment (PPE), scaffolding work, and health andenvironmental protection. Compliance with these core requirements is not only a bindingHSE Essential for all Engineering Division employees, but also an integral element of ouragreements with contractors working on sites on our behalf.

Enforcing safety on construction sitesOur close coordination of contractors in relation to HSE extends well beyond legal regulations.This is essential in order to guarantee the highest possible safety standards on ourconstruction sites, particularly in view of the global shortage of qualified site staff.Concrete project-specific HSE requirements are also anchored in agreements with contractorsworking on construction sites on our behalf. Evaluation of feedback from contractors showsthat project-specific framework conditions have a significant influence. So in 2007, LindeEngineering decided to repeat the authorisation process for site contractors with eachnew project. We view this as an important precondition in ensuring compliance with QHSEstandards on our construction sites.Where hazardous operations are involved, our experts conduct a thorough inspection ofsafety measures before work gets underway.If our employees identify unacceptable risks at customer construction sites not under Linde’sjurisdiction, they are obliged to make an immediate request that the supervisors undertakeappropriate improvements. If no such measures are taken, we reserve the right to withdrawour staff from the site for safety reasons.


Compliance programme - P.1

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Ethics and compliance at Linde

The Linde Group is committed to integrity in all its business dealings. This is non-negotiable.

AimsEnsure company compliance with legal regulations through appropriate instruments.

MeasuresLinde Code of Ethics, reporting system (Integrity Line) and a centralised departmentresponsible for ethics and compliance.

Facts and FiguresOur Code of Ethics is available in over thirty of The Linde Group’s languages; employees cancontact the Integrity Line via a web portal, phone, post and fax.

Next stepsIn September 2009, kick off web-based compliance training for all employees worldwide.


Our position - P.1

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Ethics and compliance at Linde

The Linde Group is committed to integrity in all its business dealings. This is non-negotiable.

Code of Ethics and Integrity LineIntegrity is one of our four guiding principles. It is the fabric of our moral and ethical codex,ensuring that we always act with honesty and fairness. Linde’s Code of Ethics anchors ethicalconduct within our organisation, setting out guidelines to ensure we act in accordancewith legal and internal Group regulations. The Code is supplemented by our ethical/legal procurement guidelines. The Linde Integrity Line is an integral element of ethicsand compliance at The Linde Group, providing a channel for both internal and externalstakeholders to raise legitimate issues. See Corporate Responsibility at linde.com for moreinformation.

Our compliance organisationTo reinforce compliance with both legal regulations and voluntarily adopted principles,we have set up a global compliance organisation. The Executive Board has establisheda compliance office within Group Legal. Compliance officers have been appointed in thedivisions, business areas and operating segments to support Group-wide observance of thecompliance programme.


Divisions - P.1

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Corebusiness - Gases and Engineering DivisionsThe Gases Division at Linde AG offers an extensive portfolio, ranging from industrial gases to processes, plants, equipmentandservices. Our Enginee-ring Division bundles and synergises the engineering know-how of numerous Group organisations across the globe.


Gases Division - P.1

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Leader in the international gases market

Our Gases Division offers a highly diverse product portfolio ranging from the actual gases to processes, plants, equipment and services for the broadest application spectrum. Across a wide variety of industries, our products help customers reduce the impact of their operations on the environment and climate. They achieve this by replacing hazardous materials, raising combustion efficiency levels, cutting emissions and reducing waste, for example.


Recycling with liquid nitrogen - P.1

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Using liquid nitrogen to recycle used tyres

The storage of used tyres has been prohibited in EU member states since 2003.Liquid nitrogen is an environmentally sound way of complying with this regulation byrecycling scrap tyres into high-quality rubber products.

Wide range of applicationsTyres comprise around 65 percent rubber, 30 percent steel and 5 percent textile cord.All of these components are processed in special plants. Rubber granules and powder areparticularly high-quality end products which can be used in the manufacture of new products.And there are countless areas of application for these recycled rubber materials, rangingfrom surfaces on playgrounds and sports grounds through sound insulation to additives forasphalt production. Rubber granules increase the elasticity of asphalt. This not only cuts noiseemissions by fifty percent (“low-noise asphalt”), but also significantly reduces frost damage,thus doubling the lifespan of the asphalt surface.Other tyre parts are also well suited to recycling. Steel, for example, can be melted downagain while textile components can be used as insulating material or for stabilizing textilessubject to heavy wear and tear.

Advantages of cryogenic grindingCryogenic grinding of plastics and elastic or heat-sensitive materials offers a range ofcompelling benefits. With traditional grinding methods, the ambient temperature increasesdue to the enormous amounts of heat generated by engines, blades and grinders. Allof which has a negative impact on the quality of the material. This is not the case withcryogenic grinding.During this process, liquid nitrogen (-196° C) is used to cool tyre granules to –100° C, makingthem extremely brittle and as hard as glass. The granules can then be ground to a powder,with grains measuring approximately 0.25 mm. The size of the grains in the powder can bevaried by adjusting the temperature to which the granules are cooled (in other words theamount of gas applied). Magnets are used to remove even the finest steel elements whereastextile microparticles are filtered out.The resulting purity levels exceed 99.9 percent.The automobile industry is one of the main markets for this finely ground, pure rubberpowder, where it is used to enhance the properties of bumpers, dashboards and panels.Depending on the type of plant used, around 1.5 tonnes of liquid nitrogen is required toproduce 1 tonne of rubber powder. Linde delivers liquid nitrogen to recycling companiesthroughout Europe.


Gases in the plastics industry - P.1

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Carbon dioxide and nitrogen are increasingly being used as environmentally friendlyblowing agents for different industrial foaming processes. Linde not only manufacturesthese gases but complements them with supply solutions for customers.

Inert gases – the environmentally sound alternativeThe Montreal Protocol from 1989 is a multilateral treaty that has been ratified by around200 countries worldwide. The protocol obliges signees to reduce and ultimately eliminatesubstances that deplete stratospheric ozone, more commonly known as the ozone layer.Chlorofluorocarbon (CFC) is one compound that is covered by this regulation. The drastic dropin CFC emissions worldwide is certainly a direct result of this international treaty.Linde was one of the forerunners in developing metering applications aimed at successfullydeploying the inert gases carbon dioxide and nitrogen as more environmentally soundalternatives to these harmful gases in the plastics industry.Previously, CFC was used as the blowing agent to create foamed polymers’ characteristiccellular structure. Since demand for foamed plastics remains high among a diverse range ofindustries and end-users, eco-friendly production is of key importance.The benefits of foamed plastics are indisputable. Low density, excellent heat and soundinsulation, mechanical damping, low water vapour permeability and reduced humidityabsorption are just some of their valued properties. Today, foamed plastics are manufacturedin a more eco-friendly way with carbon dioxide and are key products for a wide range ofsectors including the packaging, construction and automobile industries. They are also usedin the production of insulating material, furniture and mattresses. There are many differenttypes of foamed plastics and manufacturing processes.

Recycled CO2 for mattressesThe decision to use chemical or physical blowing agents depends on the process in questionand the required density of the end product.Chemical blowing agents are mixed with the plastic pellets. They then dissolve at highertemperatures, usually separating into nitrogen (N2) or carbon dioxide (CO2). These gases thenact as blowing agents. The disadvantages of this procedure are its unwanted by-products andthe often high cost of the chemical blowing agents themselves.In contrast, physical blowing agents are metered into the plastic melt. In other words, addedto one of the initial products.Using the inert gases nitrogen (N2) or carbon dioxide (CO2 CFC dennab rof setutitsbus sa )has many benefits. Carbon dioxide is a very cost-efficient solution as it is inexpensive andefficient in consumption, ensuring rapid return on investment for CO2 loading systems. CO2

also has a low level of reactivity, is non-flammable and non-toxic, and therefore does notleave behind any residue in the foamed product. Furthermore, carbon dioxide is not an ozonedepleting substance, nor is it produced explicitly for the plastics industry. The CO2 used here isthe recycled by-product of other production processes, which is purified, dried and liquefiedunder pressure by Linde before use.


Using gases in the construction industry - P.1

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Using gases to drive efficiency levels in theconstruction industry

Global competition is making efficiency an increasingly hot topic for companies in theconstruction industry. Industrial gases are a cost-effective way of optimising a range oftasks without impacting on the environment, quality or safety.

Cooling with nitrogen, neutralising with carbon dioxideIn the construction industry, pressure to reduce costs and meet tight deadlines can oftenhave a negative impact on quality. Industrial gases can reduce project costs withoutcompromising on quality, safety or environmental impact. In many cases, they are used fordedicated steps or specialised tasks on a large project, for example to accelerate turnaroundor prepare for downstream processes. Liquid nitrogen (N2), for instance, can help ensurehigh-quality concrete by cooling fresh mixtures to the optimum temperature for pouring.Carbon dioxide (CO2), on the other hand, can be used as an environmentally sound methodof neutralising alkaline wastewater from construction sites. When it comes to stabilizing siteterrain, soil freezing with liquid nitrogen is often a fast, safe and, above all, environmentallyfriendly solution. This not only accelerates project turnaround, but also reduces the footprintrequired for construction work.

Artificial ground freezing with liquid nitrogenArtificial ground freezing is used, for example, in underground or tunnel construction projects.This type of work has to be carried out under increasingly adverse geological conditionsgiven the growing construction density in urban spaces. Walls and buildings need to bestabilised and supported as a result of irregular soil formations or groundwater inflows. Thiscan be achieved by freezing the ground with liquid nitrogen. Ground freezing is also the idealway to comply with statutory environmental regulations. In order to freeze soil, the exactamount of liquid nitrogen required is calculated and fed into the subsurface through pipesinserted into the ground. At a temperature of -196°C, the liquid nitrogen extracts heat fromthe surrounding soil and vaporizes. This process causes water in the soil around the pipe tofreeze. After around five to ten days, a solid wall of ice forms. At this stage, the ground isstable and work can begin. This process offers major environmental benefits in comparisonwith conventional methods. Hazardous substances are not released into the soil and nogroundwater is removed.


Biological wastewater treatment - P.1

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Biological wastewater treatment

Today, water quality is largely controlled by statutory regulations. Biological treatmentof wastewater plays a crucial role here. Which is why we at Linde have beensystematically improving our oxygen-based wastewater purification processes.

Cleaning wastewater with oxygenIn EU countries, treatment of industrial wastewater is on the whole strictly regulated,especially when the water in question is being returned directly to the environment.Temperature, pH value and the degree of contamination are all subject to control. Figuresrelating to chemical and biochemical oxygen demand provide information on the amountof organic substances in wastewater as they reveal how much oxygen is required to breakdown organic matter.Mechanical/physical, biological and chemical processes are all used to treat wastewater,which is why modern treatment plants function on a three-tier principle, with each stagefocusing on a different treatment process.Part of the biological phase involves microorganisms degrading any biological contaminantsstill present in the wastewater. If the water contains too many contaminants, however,the process may break down and the water will start to smell. This is caused by insufficientoxygen supply to the microorganisms degrading the pollutants in the wastewater. Once thisoccurs, the water can no longer be properly cleaned. Yet the situation can be avoided byartificially adding oxygen.Injecting oxygen in this way can quickly raise performance and efficiency levels in treatmentplants, often eliminating the need for time-consuming and costly expansion.Oxygen injection systems from Linde have therefore played an important role in wastewatertreatment for many years now. And we are committed to continually developing ourprocesses in order to streamline these cleaning processes through more efficient use ofoxygen.

Specialists in oxygenation technologyA number of factors are crucial to ensuring that oxygen in treatment plants is used asefficiently as possible. Oxygen-rich and oxygen-deficient water, for example, must bedistributed evenly and the wastewater effectively circulated. Controllable, in other words,flexible oxygen injection systems are also key to maximising plant efficiency. And Linde notonly supplies the oxygen, but also the necessary equipment such as nozzles and perforateddiffuser hoses. These are fixed to the bottom of a wastewater tank and release oxygen intothe water.Linde also specialises in feeding oxygen into pressure pipes. If the natural gradient of thepipes is too low, the wastewater has to be pumped to the treatment plant. Due to bacterialactivity, oxygen in the pipes is consumed very quickly and the wastewater starts to decayif it is allowed to stagnate in pipes for too long. These conditions promote the generation ofhydrogen sulphide (H2S), a toxic, foul-smelling gas, which can be used by certain bacteriain damp conditions to produce sulphuric acid (H2SO4). This can lead to pipe corrosion. Theproblem can be resolved by injecting sufficient amounts of pure oxygen into the wastewater– a solution that is not only kind to the environment, but also inexpensive to purchase andoperate.


Gases for solar cells - P.1

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Gases for the photovoltaic and solar cell industry

Electronic gases play a key role in photovoltaic cell manufacturing. Our ElectronicsBusiness Area and subsidiaries Nippon Sanso and Eco-Snow™ Systems are trustedpartners and suppliers in this field the world over.

Recycling and replacing harmful gasesLinde’s activities here involve providing innovative solutions to replace harmful gases withclimate-neutral ones and enable further expansion of the eco-friendly solar cell industry.High-purity gases from Linde are also often an environmentally friendly alternative toconventional materials used in the manufacture of electronic components.Until now, the consumption of traditional electronic gases for manufacturing semiconductorsand solar cells has had its downside – the conventional cleaning gases sulphur hexafluoride(SF6) and nitrogen trifluoride (NF3) are harmful to the climate. An NF3 molecule has a globalwarming potential around 11,000 times greater than that of a carbon dioxide molecule, andan SF6 molecule 22,000 times greater. Even the most stringent procedures during productioncannot prevent NF3, for example, escaping into the atmosphere. Our Electronics BusinessArea has calculated that the small amounts of NF3 released in this way add an extra twoyears to the period a solar cell needs to be in operation before it offsets the CO2 footprintcreated during its production. The solar cell industry estimates an average payback periodof four years, without taking NF3 emissions into account, and aims to reduce this to one yearin the future. Which is yet another reason to fluorine (F2), the actual active cleaning agent.Further information on our SF6 recycling process as well as our award-winning on-site fluorinegenerator is available under Corporate Responsibility at linde.com.

Cleaning electronic components with CO� snowCarbon dioxide (CO2) is also being increasingly deployed in the electronics industry thanksto its valuable properties. Here, CO2 snow is used in a number of applications including theremoval of unwanted residue such as flux (additives that facilitate thermal treatment orhandling thermally treated materials).CO2 snow is created by initially storing liquid CO2 in what are usually vacuum insulated tanksat -20°C and a pressure of 20 bar. Fine snow is produced as the CO2 becomes solid. And sincethe CO2 snow sublimates (turns directly into a gas without becoming liquid) when it comesinto contact with heat, it does not leave behind any residue after cleaning. CO2 also has a lowlevel of reactivity so there is no risk of chemical reactions with the environment.Furthermore, the CO2 that we industrially manufacture does not contribute to global warmingas it is a by-product of combustion and the chemical processes required to make substancessuch as ammonia, alcohol and fertiliser. The CO2 we capture in this way and turn into avaluable product would otherwise be released directly into the atmosphere.Our subsidiary Eco-Snow™ Systems has also launched another CO2 snow cleaning process thatremoves unwanted particles from image sensors used, for example, in mobile phone camerasor computers.


Cleaning with CO2 snow - P.1

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R&D in the field of electronic gases

Environmental sustainability and cost-efficiency were the main drivers of a researchproject conducted by our subsidiary Eco-Snow™ Systems in collaboration with a Belgianresearch centre for nanotechnology.

Reliable cleaning resultsLinde joined forces with IMEC, a leading European research institute in the field ofnanotechnology based in Leuven, Belgium, to assess the effectiveness of cleaning electroniccomponents with carbon dioxide (CO2) snow in conjunction with solvent-based, non-oxidisingchemicals.One of the main aims of the research project was to ascertain whether CO2 snow couldbe used as a reliable and cost-effective method of removing photoresist after it has beenimplanted with high doses of ions (electric charge created as a result of ionising radiation).

Sound ecological and economical senseRigid care must be taken during cleaning to ensure that exposed, nanoscale semiconductorstructures are not damaged during cleaning. These structures are key enablers in the drive toenhance manufacture of silicon-based electronic components.Cleaning is also important to minimise the number of defective components due to foreignparticles.Research has shown that our Eco-Snow™ solution meets all of these requirements, removingunwanted particles without damaging the board.In comparison with traditional wet cleaning, this Linde-engineered process is cost-effectiveand reduces environmental impact, as it eliminates the need for solvents. Two major MEMS(microelectromechanical systems) manufacturers have already installed our Eco-Snow™solution. MEMS components are used in a wide variety of applications, ranging from ink-jetprinter heads to airbags.


Pain relief - P.1

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Paediatric pain relief

A mixture of medical gases that is already widely used in pain relief therapy for bothout-patient and in-patient care. It is also ideal for use in paediatric medicine.

Easing pain with laughing gas and oxygenThe gas mixture LIVOPAN™ consists of nitrous oxide or laughing gas (N2O) and oxygen (O2) inequal parts. Its analgesic and sedative qualities make it ideal for use in paediatric medicine,for instance, for injections or lumbar punctures, out-patient surgery or suturing wounds.Information collected from children, parents and medical staff confirms the positive impactof this product. One study revealed that 90 percent of parents and medical staff questionedprovided positive feedback on the effects of treatment with laughing gas and oxygen. Otheranalyses showed that 95 percent of children did not notice receiving an injection aftertreatment with the gas mixture and that its analgesic effect leads to improved acceptance ofsubsequent treatment stages.

Success beyond Germany’s bordersIn view of these findings and the proven success of this product in Europe, we also launchedit in several other markets including Brazil. We anticipate interest in this treatment to growhere, particularly since the government is strongly supporting the development of pain-relief strategies in paediatric care. In South America, Linde is a key supplier of medical gasesand supporting hardware. Our strong ties here have also led us to support local communityhealthcare projects.


Healing with oxygen - P.1

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Indispensable helpers in medicine

Medical gases are invisible helpers in medicine, relieving pain, accelerating the healingprocess and even saving lives. Many medical breakthroughs would never have beenpossible without gases.

Healthcare – a flourishing businessGases have been used in medicine for nearly 200 years. They are invaluable tools inmany areas from anaesthesia through surgery to respiratory support. Linde bundles itsmedical gases business in its Healthcare Global Business Unit, which is steadily growing.In industrialised countries, for example, this growth is primarily driven by changingdemographics – in other words, aging populations. Improvements in diagnosing illness anda wider choice of therapies, in particular for chronic disease, are also fuelling the increaseddemand for therapeutic gases. Our Healthcare activities include supplying hospitals, as wellas out-of-hospital patients, providing homecare patients with oxygen, for example. TheHealthcare segment now accounts for around ten percent of overall revenue.

Treating chronic wounds with oxygenA chronic wound is a wound that does not show signs of healing despite regular, localizedtreatment. This inability to heal may be caused by underlying illnesses such as diabetes orvascular disease. Infections can be a further barrier to the healing process. According tothe German society for the healing and treatment of wounds (Deutsche Gesellschaft fürWundheilung und Wundbehandlung e.V.) there are no official statistics on the number ofpeople suffering from chronic wounds. However, around two million people are believed tosuffer from chronic wounds in Germany, with approximately 60,000 new cases diagnosedeach year. Typically, out-patient treatment is costly and success rates often low.To rectify this situation, Linde has developed a method of treating chronic wounds withpressurised oxygen. The therapy involves placing the affected foot or lower leg in anencapsulating chamber, into which oxygen is intermittently pumped at a pressure between 0and 50 mbar for around an hour. Argentina is the first country in the world to authorise Lindeto market this treatment. At the same time, we are also conducting studies in other SouthAmerican countries. The initial results are certainly promising – all wounds treated with thismethod so far have either significantly reduced in size or healed completely.


Pure oxygen for fish farming - P.1

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Using gases to create optimum conditions for fishfarming

Overfishing of our oceans and seas is a serious ecological problem. To keep up withglobal demand, fish for human consumption has to be raised commercially. Pureoxygen helps keep fish healthier and raise stocks.

Overfishing – a threat to natural fish stocksThe food industry has seen sales of fresh fish products soar in recent years, reflecting thesteady increase in annual fish consumption. According to the German Fish Information Centre(FIZ), German citizens consumed an average 16 kilograms of fish per capita in 2008 – anew all-time high. However, rising fish consumption is not just a national trend but a globalphenomenon.All of which has had devastating consequences for the world’s natural fish population.Around 80 percent of fish stocks are now endangered as a result of overfishing. Fish farminghas therefore become increasingly important in recent years, filling the gap between globalsupply and demand.And it is here that the injection of pure oxygen plays a crucial role as the gas is vital forensuring healthy fish growth. Consistent oxygen levels enable fish to digest their food moreefficiently. In contrast, excessive fluctuations in oxygen content lead to slower growthlevels and higher disease rates. So when it comes to creating ideal fish farming conditions,sophisticated technology is a must.

End-to-end systems for low-impact fish farmingLinde’s technical solutions for oxygen injection are carefully developed and can be deployedfor salt-, fresh- and brackwater breeds. At our test and development centre in Ålesund onthe coast of Norway, we gained valuable insights into the behaviour of gases in water,supplementing our experiences thus far through close collaboration with Europe’s leadingfish farms.We then used these findings to develop end-to-end systems for the continually growingaquaculture market. From the gas itself through oxygen injection technology to software foroptimizing breeding conditions, these highly specialized solutions guarantee optimum levelsof gas in the water, thus ensuring a controlled, healthy environment for fish and successfulyields.Optimum oxygen levels, however, cannot entirely eliminate the threat of disease for fishstocks. Linde has therefore developed a further process to counter this risk. It involvestreating water with ozone before it is pumped into the breeding pools. This process killsgerms and spores in the water without the need for antibiotics or similar substances. It is alsosafe for the environment as the greenhouse gas ozone automatically changes to oxygen onceit has been released.


Transport cooling - P.1

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Refrigeration on demand

Continuous refrigeration is an absolute necessity for many different types of food.Ensuring that products are kept cool during loading and transport is a challenge - yetone that can be met with Linde’s low-emission and low-noise cooling solutions.

Keeping cool – from production to consumptionProviding reliable refrigeration for goods such as fresh meat products is not a problem inclosed production environments. However, even the briefest rise in temperature is enough tosignificantly impair the shelf-life and quality of many foods.Linde offers tailor-made, cost-effective and eco-friendly solutions for maintaining the coldchain while transporting fresh food to consumers, even over long distances.A system that cools food products without requiring power supply, for example, is particularlyuseful when foodstuffs are transported by ship. Linde’s snowcool system is ideal for suchcases. The cooling process here is based on sublimation of dry ice snow (CO2 snow) that hasa temperature of -78°C (sublimation is when a substance directly transforms from a solid to agaseous state).The dry ice snow is created using liquid carbonic acid (H2CO2) directly in the snow gun, whichis used to fill a ‘snow box’ installed inside a special transport container known as an isotainer.

Safety firstA stationary unit is used to measure the exact amount of liquid carbonic acid and CO� snowrequired for the specific product and the distance it has to be transported. This eliminatesthe risk of using too much ice and helps control costs. Isotainers guarantee consistenttemperature in any vehicle for up to 72 hours. They do not require a power supply and aretherefore completely silent.This solution comes with a sophisticated safety concept. Highlights include a unique,patented CO2 capture system using the snow gun. Here, an exhaust pipe on the gun capturesthe carbon dioxide produced when the liquid carbonic acid expands (almost equal amountsof CO2 gas and snow are produced during this process). If carbon dioxide is left to escapeinto the atmosphere, concentration levels in the air rise, leading to a risk of asphyxiation forhumans. And since CO2 is invisible and odourless, this happens without warning for thoseworking in the vicinity. Added safety features include gas alarms.Innovative developments of this kind are always the result of collaboration with ourcustomers. We are currently working together with customers to develop suitable solutionsfor manufacturing gas-impervious packaging from renewable raw materials.


CO2-Snow for foundries - P.1

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CO2 snow - an environmentally friendly solutionfor foundries

Liquid magnesium reacts violently to oxygen. A research project showed that CO2 snowis a viable solution to this problem.

A research project leads to successMagnesium, the lightest structural metal currently available, is growing in popularity in theautomotive industry in particular. When processing magnesium alloys, care must be taken toprevent the liquid metal from oxidising – the surface temperature of the melt is approximately630°C – as liquid magnesium reacts very violently to oxygen. In the past, manufacturersrelied on sulphur hexafluoride (SF6) or sulphur dioxide (SO2) to avoid fires in magnesiummelting processes and oxidation of the liquid metal. SO2 is highly toxic and requires extensivesafety precautions before it can be used in foundries.SF6 is not ideal either due to its high global warming potential (GWP). The GWP of an SF6 molecule is approximately 23,000 times higher than that of a CO2 molecule. Hence SF6 hasbeen banned for magnesium melting since 2007. The only exception is foundries requiringless than 500 kg of SF6 per year.To resolve this challenge, Linde Gas and its partners launched a research project sponsoredby the German government. The research focuses on the use of CO2 snow to cover moltenmetal. This process is patent-pending.If gaseous CO2 was used to cover the hot molten magnesium, this would produce largequantities of highly toxic carbon monoxide, at the same time depositing elementary carbonon the surface of the molten bath. Carbon may then fall into the melt. This could make theresulting metal parts susceptible to corrosion.

CO2 snow protects the meltTo combat the disadvantages of gaseous and liquid CO2 in protecting the melt, Linde and itspartners tested solid CO2.Once preliminary testing was successfully completed, a nozzle was produced to create solidCO2 snow from liquid CO2. This nozzle then spread solid CO2 over the surface of the moltenbath.

elzzon eht ta sdnapxe 2O the C taht os dengised saw enihcam wons 2OC eht no elzzon ehToutlet. The output speed from the nozzle is close to the speed of sound. To protect the moltenmagnesium against the negative effects of this high velocity, the CO2 stream is slowed downby attaching a “snow pipe”. In this pipe, the fine cristalline snow at -87.5°C is compacted intoparticles.This CO2 snow is deposited on the molten bath and lowers the surface temperature, slowingdown magnesium evaporation. When the CO2 snow sublimates, (changes directly from solidto gas form), the gas expands, displacing all oxygen from the bath surface and thus achievingthe desired effect.


Oxygen increase efficiency - P.1

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Oxygen and new burner technologies increaseefficiency

When recycling aluminium, both climate protection and upcoming regulations dictatethat emissions be reduced and energy saved wherever possible.

Lowering emissions is a top priorityAluminium is a lightweight metal, remarkable for the fact that, unlike other metals, itsproperties remain intact even after it has been fashioned into an end product. This meansthat aluminium can be recycled as often as necessary, without any deterioration in quality.When aluminium is refined, or at the end of a product lifecycle, it classifies as a secondaryraw material. There is a global market for secondary aluminium.The energy required to recycle aluminium corresponds to around 10 percent of the energyrequired to extract primary aluminium, often done by refining aluminium ore (bauxite). Sorecycling is definitely worthwhile.From 2013, secondary aluminium refineries, which smelt aluminium for recycling, will besubject to the EU emissions trading scheme. This means that avoiding emissions and loweringenergy costs where possible is a high priority for the aluminium recycling industry.

Innovative burning technologiesLinde has developed a special oxygen burning technology to optimise melting processes. Thistechnology can help the aluminium recycling industry to lower emissions and save energy.The AIROX® process greatly reduces emissions (dust, NOx, and CO2) when compared withsystems using ambient air only. It also improves efficiency and reduces energy costs. Theunderlying technology is a combination burner, which can be set to use atmospheric oxygen,pure oxygen or a mix of the two. This offers numerous benefits for customers. Smelting canbe performed more efficiently and quickly than with other methods due to the flexibilityof the burner, and this lowers energy consumption and reduces emissions. Many of ourcustomers are already using this technology with considerable success.Linde also developed the WASTOX® process, which is used in the aluminium recyclingindustry to melt down low-quality aluminium scrap (for example, used drinks cans) withoutadditional environmental impact. The WASTOX® process simultaneously regulates oxygenburners and oxygen lances in the furnace, enabling instant combustion of volatile organiccompounds (VOCs) released when can coatings and paint are combusted. The energyreleased partially replaces fossil fuels, thus also reducing emissions and saving energy.


Cleaning with CO2 - P.1

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CO2 for industrial cleaning

Carbon dioxide, which is colour-free, odourless, flavour-free and non-flammable, is anenvironmentally sound alternative to traditional industrial cleaning methods.

Wide application spectrumCarbon dioxide (CO2) has good solvent properties, both in its liquid and supercritical state.In thermodynamics, the critical state is defined as the point where the properties of the gasand liquid phases of a material approach one another. In supercritical state, the high solvencyof a liquid and the low viscosity (fluidity) of a gas are combined in one material. This is whyCO2 is already successfully deployed as an alternative to conventional chemical cleaningprocesses, in textile cleaning for example. Linde evolved the long-established CO2 cleaningtechnology to develop an environmentally sound textile cleaning process. It launched thistextile innovation in 2006 under the name Fred Butler® (see Corporate Responsibility atlinde.com).At the moment, industrial cleaning usually relies on water-based or solvent-based processes.The disadvantage here is that parts must be dried after cleaning and solvents used oftenhave a high global warming potential.

Easy removal of product residueSolid carbon dioxide (dry ice) has become increasingly popular for industrial cleaningapplications in recent years. This is due to the many benefits offered by dry ice. For example,it is an excellent replacement for corrosive and aggressive solvents, eliminating harmfulemissions. As it does not use water, it also eliminates the generally expensive waste watertreatment step. Sticky, elastic dirt can be removed quickly and easily without leavingremnants of any blast-cleaning agent, thus eliminating additional cleanup and removal costs.There are two CO2 cleaning methods – dry ice blasting and CO2 eci yrD .gninaelc wons blasting is usually carried out manually when heavy-duty cleaning is required. Linde suppliespellets of dry ice or particles obtained from blocks for CO2 blasting. CO2 snow cleaning usespressurized, liquid CO2 in cylinders or tanks. This liquid CO2 is expanded to generate a streamof solid CO2 snow particles that is sprayed on the surface to be cleaned. This method ispopular for professional cleaning work, for example, in the printing, food, metal and rubberindustries. Dry ice blasting was also the method of choice when the oil tanker “Prestige” sankoff the coast of northern Spain in November 2002, necessitating a wide-scale, effective andenvironmentally friendly cleanup of oil spillage.


Oxygen in paper production - P.1

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Oxygen reduces the eco-footprint of paper

Oxygen and ozone improve the efficiency and eco-balance of numerous processesin pulp and paper production. These gases are increasingly popular replacements forharmful chemicals.

Global demand for paper is continually risingTo this day, the “paperless” office has yet to materialise. In fact, demand for paper is actuallyincreasing worldwide. Market researchers set global demand at approximately 450 milliontonnes by 2015, fuelled largely by fast-growing China. Researchers also predict a steady risein demand in Europe.This makes it even more important not just to save paper wherever possible, but also toensure that we put environmentally friendly production solutions in place. We have beenworking closely with our customers to develop sustainable paper and pulp processeschains since the 1980s. The paper industry is long-since established as one of the biggestenvironmental polluters. This is due to the large-scale consumption of wood, but also to thehuge amounts of water and energy required. Huge progress has already been made on thisfront. In modern pulp and paper mills in Europe and North America, and increasingly also inAsia, fresh water is almost completely recovered and recycled. Even the chemicals used inthe paper process chain can be recycled. And small power plants fired by organic waste frompulp production can create electricity, steam and hot water.

Oxygen replaces chlorineThe products and services that Linde provides to the pulp and paper industry range from plantmonitoring and operation to employee training. Gas solutions allow manufacturers to fulfiltheir customers’ quality expectations on the other hand and comply with increasingly strictenvironmental regulations on the other.The most important gas in the paper industry is oxygen, which has many applications. Forexample, it often replaces chlorine in the bleaching process. More and more pulp productionplants also use ozone (O3) for bleaching. Ozone is an increasingly popular bleaching agentas it is more environmentally friendly than other chemicals, such as chlorine dioxide. Thispowerful oxidizing agent causes irritation to the respiratory passages, but quickly decays toordinary diatomic oxygen.We also supply oxygen for pulp mill wastewater treatment systems – particularly in Europe,where they are mandatory for the mill to receive an operating license. As in other types ofwastewater treatment systems, oxygen is used to enable bacteria to break down organicsubstances. Instead of delivering oxygen via tanker, Linde often builds on-site plants. Thiseliminates long-distance transport-related emissions.


Engineering Division - P.1

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End-to-end process know-howOur Engineering Division is an expert in the construction of plants to process and convert raw materials, also applying its wealth of process know-how to advance the field of renewable energies. It bundles and synergises our expertise spanning olefin, natural gas, air separation, hydrogen and synthesis gas plants.


Solar energy - P.1

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Solar power - even after the sun sets

As renewable energies are set to play an increasingly important role in tomorrow’senergy mix, innovations in process technologies are essential to effectively tap solarenergy.

Thermal solar power plantsThe 2007 acquisition of Swiss plant construction firm Bertrams Heatec AG has expanded ourEngineering Division’s portfolio to include solar power technologies. Bertrams is a leadingspecialist in the construction of systems for the safe transport of process heat. These systemsare used in many different industries. They also play a major role in thermal solar powerplants.

Storing heat with heat-transfer saltsUnlike photovoltaic systems, thermal solar power plants use mirrors to concentrate sunlight.The resulting heat (hence the term thermal) is used downstream to create steam, which isharnessed to create electricity in generators. Heat storage is a particularly important featurefor these kinds of power plant. Effective storage allows the heat captured during the dayto be used at night for uninterrupted electricity supply. Heat-transfer salts are the idealway to capture and store heat here. During the day, they are heated and transferred toinsulated tanks. This heat is then used at night to generate electricity – a key technologicalstep towards a non-stop, efficient and renewable flow of energy.


Biomass - P.1

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Innovative process technologies forenvironmental and climate protection

Increasingly strategic lines of business for our Engineering Division include the latestprocess technologies to efficiently produce biofuels from biomass and hydrogen fromregenerative energy sources.

BiofuelsBioethanol is created by breaking down or fermenting biomass substances such as wheatand maize straw, grasses and wood. The drive to refine biotechnologies that turn renewableraw materials into ethanol is inspired by the prospect of a sustainable, CO2-neutral liquid fuel.Dwindling crude oil resources and rising oil prices provide added momentum. As a matterof priority, Linde is determined to push bioethanol production technologies that avoid anyconflict with food production, especially in emerging economies. In contrast to 1G biofuels,2G biofuels safeguard food supplies by exclusively using plant waste from food production.At the end of 2007, we entered into an exclusive cooperation agreement with Süd-ChemieAG, a world-leading manufacturer of catalyst and adsorbent materials, to develop and marketplants for the production of 2G biofuels.Industrial-scale gasification of biomass is also suited to a wide variety of regenerative rawmaterials including straw, organic waste and wood by-products. Our Engineering Division is atrusted partner for many companies involved in this process chain.

See Corporate Responsibility at www.linde.com for more information.

BiogasFrom a chemical perspective, biogas is a by-product of fermentation. Its most valuableenergy-rich component is methane. Methane is twenty-five times more damaging to theearth’s atmosphere than carbon dioxide, making landfill sites the world’s largest man-madesources of methane if the gas is not captured before escaping into the atmosphere.The Linde Group has partnered with US company Waste Management Inc. to build the world’slargest facility for converting landfill gas into environmentally sound biogas in Livermore,California. The liquefied biogas is set to fuel 300 of Waste Management Inc.’s refusecollection trucks in California. Under the joint venture, Linde is responsible for engineeringand building the plant, as well as for purifying and subsequently liquefying the landfill gas.But biofuels alone are not enough. It must be possible to refuel vehicles with compressedbiogas and natural gas efficiently and cost-effectively. To achieve this, Linde developed theiKompressor™ system. Instead of solid, metal pistons, this refuelling innovation uses ionicliquids to compress gases at an almost constant (isothermal) temperature.iKompressor™ refuelling systems cut energy costs and maintenance effort withoutcompromising on reliability. This means that operators of compressed natural gas and biogasrefuelling stations will be able to offer their customers with particularly cost-effective fuel infuture.

Hydrogen from regenerative sources of energyHydrogen is widely regarded as the energy carrier of the future. And once a way can befound to produce “green” hydrogen from regenerative energy sources on a commercial scale,this energy carrier will be in a league of its own.The largest hydrogen plant engineer in the world and Europe’s leading gases company,Linde has been supplying hydrogen for the most varied of applications in the chemical,petrochemical and food industry, for example, since 1910.


Biomass - P.2

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Now, thanks to a range of hydrogen breakthroughs, including innovative refuelling andsupply systems, Linde is also positioned as a defining player in the move to establishhydrogen as one of tomorrow’s strategic energy carriers.Hydrogen can be generated from both fossil fuels and renewable energy sources. Primaryrenewable sources include the sun, water and wind. Hydrogen can, however, also be madedirectly by microorganisms such as microalgae.The biomass process chain involves first turning the raw material into a hydrogenousgas which can then be used to generate hydrogen. Linde continues to research waysof producing hydrogen from biogenic raw materials that are readily available, do notcompromise food supplies and are already sophisticated enough to generate commerciallyviable hydrogen. Following extensive studies to explore suitable raw materials and in-depthlaboratory tests, work is now underway on a landmark demo plant at our Leuna site. Thisfacility will pyroreform glycerol to create a hydrogen-rich synthesis gas.


Natural gas - P.1

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Helping to meet future energy needs with naturalgas

Many companies rely on our Engineering Division for efficient ways of recovering,processing, purifying and liquefying natural gas. As the global demand for energygrows, natural gas is growing in importance.

Sizeable share of the global energy mixGlobal reserves of the fossil fuels coal, crude oil and natural gas will run out over the nextfew decades. Yet new forms of renewable energy are not mature enough to effectivelybridge the resulting deficit if worldwide energy demand increases as expected.So it is crucial that we work on improving the recovery, and processing of fossil fuels.Natural gas plays the most important role here as it offers three major benefits. Firstly,it has a higher heating value than coal or crude oil. In other words, more energy can begained from gas than from the equivalent amount of coal or crude oil. Secondly, natural gascombustion produces fewer pollutants, residues and carbon dioxide emissions. And finally,at current consumption levels, global natural gas reserves are forecast to last for at least 60years, whereas experts anticipate that oil wells will run dry within the next 40 years.

Liquefied natural gas (LNG)Across the natural gas entire value chain, Linde delivers a wide range of process technologiesaimed at raising efficiency levels or reducing emissions. Prime examples include onboardreliquefaction of LNG on tank ships, and floating production, storage and offloading units orFPSO.Cryostar, a member of The Linde Group and leading outfitter of LNG tankers, has beencontracted to supply the onboard boiloff gas reliquefaction facilities for five LNG tankerscurrently under construction. FPSO floating platforms open up natural gas reserves in coastalwaters or far out at sea where pipeline transport is not feasible.Natural gas liquefaction plants are one of the core competencies of our Engineering Division.We engineer these LNG plants in a variety of sizes for the widest range of applications.Our most impressive reference project here is Europe’s largest LNG plant at Hammerfest, inNorway. Designed and constructed by Linde, it was opened by the Norwegian petroleumcompany StatoilHydro at the end of September 2007. The plant separates CO2 contained innatural gas and pipelines it back into storage 300 metres below ground.See Corporate Responsibility at www.linde.com for more information.

Gas to liquids (GTL)Liquid fuels such as diesel or kerosene that have been produced from natural gas can easilymeet the increasingly stringent emissions standards in North America and Europe. In contrastto conventional fuels, GTL fuels primarily comprise paraffins and are almost completely free ofharmful aromatic hydrocarbons, nitrogen oxides and sulphur.Converting natural gas into liquid fuels is a multi-step procedure known as gas to liquids(GTL). First of all, oxygen is used to convert natural gas to a synthesis gas made up ofhydrogen and carbon monoxide. The Fischer-Tropsch process is then applied in a second stepto convert this synthesis gas to sulphur-free, liquid hydrocarbons.Growing demand for air separators to produce GTL fuels presents a promising new growthopportunity for Linde Engineering. In 2006, Linde Engineering won one of the biggestcontracts in the history of engineering. On behalf of Qatar Shell GTL Ltd., it is building eight ofthe world’s largest air separation plants, to be handed over turn-key by the end of 2010.See Corporate Responsibility at www.linde.com for more information on the GTL process.


Crude oil - P.1

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Recovering and purifying crude oil

Nitrogen and hydrogen help maximise our return on crude oil by supporting enhancedoil recovery (EOR) and fuel desulphurisation respectively.

Enhanced oil recovery (EOR)The earth’s crude oil reserves are finite. And as an oil field becomes depleted, the flowpressure declines, and after a while, the feed rate starts to slow down. However, it ispossible to exert some influence over this process using enhanced oil recovery (EOR). Thismethod involves injecting gas or water to heat the oil, or using chemicals to reduce surfacetension. This delays or reduces the drop in feed rates.The most common EOR method is water flooding, which means that water is pumped into thereservoir. However, this method also increases production costs, due to the effort involved insourcing and disposing of the water.Carbon dioxide (CO2) or nitrogen (N2) flooding works along the same lines but is even moreefficient. Here, water and CO2 or N2 are pumped into the reservoir alternately. This yieldssignificantly better results than water alone, allowing recovery of at least another 10 to 15percent of the oil reserve. A further benefit is that the gas, injected under high pressure, iseasy to separate from the recovered oil and can then be pumped back into the system.Linde supports these EOR processes with air separators that produce the nitrogen required.

Desulphurising fuelThe desulphurisation of fuel with hydrogen is growing in importance as governmentauthorities tighten environmental regulations covering emissions.Refineries generally rely on on-site facilities to supply the H2 they need to desulphurise theirpetrol and diesel. Customers looking for an on-site supply of H2 benefit from the synergised,single-source offering of The Linde Group, spanning both engineering and operation of on-site plants.Our Gases Division placed a major H2 contract with our US subsidiary Linde Process Plants(LPP). This entails building a second hydrogen plant at our Lemont site in Illinois and thensupplying the neighbouring refinery, run by CITGO Petroleum Corporation, with around 1.3million standard cubic metres (scm) of H2 per day. CITGO will use the hydrogen to treat high-sulphur (or sour) crude oil from Canadian oil sands.


Coal - P.1

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Converting coal to liquid fuels

Regenerative sources of energy will not be sufficient to meet growing global energydemands. As an alternative to oil, coal has re-entered the picture as a promising sourceof liquid fuel.

Fischer-Tropsch synthesisCoal reserves worldwide outsize and will outlast those of natural gas and crude oil. Studiesestimate that fossil fuels will account for around 80 percent of the primary energy mix in2030. This is a relatively insignificant drop relative to the current balance. Coal will continueto meet more than one third of total energy requirements in this future scenario. However,this projected reliance on fossil fuels is at odds with the need to stabilise the world’s climate.Unless technologies such as carbon capture and storage are deployed on a much broaderscale worldwide.

Coal was first directly liquefied at the start of the last century. In 1925, Franz Fischer andHans Tropsch pioneered a new indirect method, which still bears their names today – Fischer-Tropsch synthesis.

Coal to liquids (CTL)The Fischer-Tropsch process uses synthesis gas as the feedstock – a mixture of carbonmonoxide and hydrogen. The synthesis gas can be produced from coal or natural gas (andalso from oil fractions such as heavy oil). It is completely sulphur-free, although purificationis sometimes required to achieve this. Consequently, the fuels produced by Fischer-Tropschsynthesis are also completely free from impurities.High crude oil and natural gas prices mean coal is becoming increasingly important as araw material in synthesis gas plants. The purity of the synthesis gas is a key benefit for alldownstream steps, as it helps minimise harmful emissions released when the fuel is burnt.Against this background, The Linde Group is constructing a gas purification pilot plant in Chinafor Shell. This plant will be an important milestone in the journey towards CTL fuel projects.


Carbon capture and storage - P.1

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Technologies for lower-emission electricity

Linde is actively involved in development of the three main processes used to capturecarbon dioxide at coal-fired power plants and in research into CO2 injection.

Pre-combustion capturePre-combustion capture, or integrated gasification combined cycle (IGCC) technology, is anupstream process for gasifying coal in combined cycle power plants (also known as gas andsteam power plants). IGCC technology first converts coal to a synthesis gas (syngas) inside agasifier at high temperatures and under pressure. The syngas mainly comprises hydrogen (H2)and carbon monoxide (CO).A water-gas shift reaction is then used to create carbon dioxide and additional hydrogen.The carbon dioxide can then be scrubbed, and the hydrogen burnt in the gas turbine. IGCCtechnology without CO2 capture has been used in power plants since the 1980s.IGCC increases plant efficiency levels compared with other CO2 capture technologies. It isalso a versatile process enabling different feedstocks (such as biomass or waste) to be usedinstead of coal. And the resulting syngas can be used to manufacture fuels such as methanol.See Corporate Responsibility at www.linde.com for information on our research projects.

Post-combustion capturePost-combustion capture uses chemicals to separate the carbon dioxide in conventionalcoal-fired power plants following desulphurisation of the flue gas. It is the only methodsuitable for retrofitting existing power plants and therefore particularly valuable. Widespreadpenetration of new power plants with integrated CO2 capture will take several more decadesdue to lengthy investment cycles – 40 years being the norm. We have already launched apilot facility for this process, known as CO2 scrubbing, in collaboration with BASF and RWE. Thefacility will be located at the lignite power plant in Niederaußem (North Rhine-Westphalia,Germany).The energy group Vattenfall Europe is planning to retrofit a power station in Jänschwalde,Germany, with post-combustion capture technology, thus establishing a CO2-free, lignite-powered pilot facility. Our Engineering Division is producing a feasibility study for this project.

Oxy-fuel combustionIn the oxy-fuel process, coal is combusted in an atmosphere consisting of pure oxygen andCO�. This means the resultant flue gas is not diluted by nitrogen from the air, but primarilyconsists of CO� and water vapour.This vapour is easily condensable, leaving a highly concentrated CO2 stream. The CO2 can thenbe compressed and transferred to storage. The energy group Vattenfall decided to build onthis technology and thus went on stream with a 30-megawatt pilot oxy-fuel facility on thesite of the Schwarze Pumpe lignite power plant in Brandenburg, Germany. Vattenfall intendsto create a demo plant showcasing oxy-fuel technology in Jänschwalde, Germany.

Carbon capture and storage (CSS)We do not yet have a mature solution for the disposal of CO2 captured from combustion gases.One method currently on trial is sequestration, i.e. CO2 storage below the ground or seabed.The gas can be stored in crude oil or natural gas reservoirs, saline aquifers or coal seams.This is part of the carbon capture and storage (CCS) process chain, which extends all the wayfrom CO2 separation to final disposal, making an important contribution to a more sustainableenergy chain. However, the CO2 sequestration step is still in the development stages. Underthe umbrella of the CO2 SINK project, Linde is participating in investigations into technologies


Carbon capture and storage - P.2

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capable of permanently pumping CO2 into plutonic rock. Linde is also involved in a furtherpilot project investigating the use of carbon dioxide to increase natural gas recovery rates(enhanced gas recovery, EGR).See Corporate Responsibility at www.linde.com for more information.

CO2 recyclingIt’s a well-known fact that carbon dioxide helps plants grow. With this in mind, Dutchgreenhouse operators previously used gas furnaces even in summer to increase plantationproductivity with the CO2-rich flue gas. The CO2 benefitted the plants, but it also added toglobal emissions.So supported by Linde’s Dutch subsidiary, Hoek Loos, two engineers from the Netherlandslaunched OCAP (“Organic CO2 for Assimilation by Plants”), a project to supply greenhouseswith CO2 from a nearby refinery instead. A bright idea that is a win-win for everyone –the diverted CO2 from the crude oil refinery no longer escapes into the atmosphere as agreenhouse gas, and the plants in the real greenhouses grow faster.


S 1

area of activity 2006 objectives

Human resources Integration

• Renewa of v s on, va ues and nc es• aunch of nvento s C ub as a G ou w de nnovat on fo um• Awa d ng of f st zes to the ten best atents ac oss two catego es• va uat on of va ous so ut ons fo ou Ge many ocat ons

HR Roadmap


People Excellence


Driving innovation


Work/life balance


SHEQ Organisation, management, programmes

• nt oduct on of mo e standa d sed management of g oba safety and env onmentaotect on n the Gases and ng nee ng

d v s ons• P omot on of c oss d v s ona , wo dw de nteg at on• Deve o ment of a standa d sed env onment and c mate otect on st ategy

• Ongo ng esea ch nto hyd ogen techno ogy and enewab e ene gy• Ve f cat on that ega egu at ons and oduct safety standa ds wo dw de a e met• x ans on of P otect og amme• Def n t on of sco e of non f nanc a met cs n acco dance w th mate a ty and nte naequ ements

• Standa d sat on of met c def n t ons

Environmental and climate protection


S 2





Product Stewardship





Health & Safety





Health, Safety, Environment (HSE) Key Performance Indicator, Reporting


S 3





Corporate citizenship Education, science, research

• Rev ew and eva uat on of a act v t es su o t ng th s a ea• P omot on of nnovat on and esea ch n va ous med ca a cat ons of gases us ng theG M und (Gas enab ed med ca nnovat ons)• Assessment of whethe to cont nue BOC oundat on fo the nv onment• Rev ew of nd v dua oca act v t es wo dw de

Healthcare


Environmental protection


Local commitment / charity work


Ethics & compliance Guidelines, management, programmes

• Gene at on of eth ca gu de nes fo ocu ement

• nt oduct on of an adv so y system (“ nteg ty ne”)

Capital Markets Communication & Investor Relations

• ntens f cat on of stakeho de d a ogue


S 4

area of activity Achieved in 2006


• 250 manage s wo dw de asked fo feedback on the com any cu tu e• A ova of v s on, va ues and nc es by the xecut ve Boa d• nv tat on to jo n nde Annua atent Awa ds fo nde and BOC s atent a cat ons fo the

e od 1 Janua y to 31 Decembe 2006• ee of cha ge a ocat on of ch dca e aces fo a em oyees n Ge many nt oduced nes onse to an em oyee su vey

HR Roadmap



People Excellence



Driving innovation



Work/life balance





S 5

• st G ou w de hea th, safety and env onment confe ence n May 2006

• stab shment of a G ou w de SH Q de a tment w th n the new o gan sat ona st uctu e

• A ova and nt oduct on of G ou w de SH Q o cy• dent f cat on of e evant ocesses both n oduct on and a cat on of s ec f c ndust agases• m ovements n qua ty and cons stency of safety datasheets• nt oduct on of un fo m g oba standa ds fo hea th & safety management

• Conso dat on of acc dent e o t ng wo dw de and nt oduct on of qua te y e o ts foacc dent stat st cs• Def n t on of sco e of non f nanc a met cs n acco dance w th mate a ty and nte naequ ements (cont nued w th BOC)

• Standa d sat on n acco dance w th exte na equ ements

• Standa d sat on of met c def n t ons (cont nued w th BOC)








Product Stewardship








S 6

Health & Safety















• Rev ew, eva uat on and c ass f cat on of act v t es nc ud ng BOC ana ogous to the o e at ngmode• “ ns e Awa d” estab shed by BOC a so a g ant su o t ng med ca a cat ons of gases,focus ng on em ca a cat on esea ch BOC awa ded th s tw ce n 2006 nde and BOC

omot ona act v t es cont nued n a a e• Dec s on to d scont nue BOC oundat on• Pe fo mance of ev ew, nc ud ng BOC cha ty act v t es

Healthcare


S 7










• Pub cat on of eth ca ocu ement gu de nes

• Rev ew of nde and BOC com ance act v t es

• o mat on of a Code Wo k ng G ou to deve o a new code of conduct fo the newo gan sat on


• Pe fo mance and ana ys s of stakeho de su vey n s x count es

• va uat on and conso dat on of nde and BOC Co o ate Res ons b ty act v t es


S 8

area of activity 2007/2008 Objectives


• Ancho ng the nde S t (ou v s on and co e va ues) wo dw de• Ongo ng m ementat on of human esou ces (HR) oadma• P esentat on of nde G ou Patent Awa d (2008 onwa ds he nde G ou Patentand nnovat on Awa d) P zes g ven to a tota of ten w nne s n 2007 n the catego es“techno og ca nnovat on” and “ nnovat on w th the h ghest moneta y va ue” he w nne sa so become membe s of the nde nnovato s C ub, a h gh of e n t at ve to bund e thecom any s nnovat ve st engths• x ans on of fam y o entated offe ngs beyond a ocat on of ch dca e se v ces

HR Roadmap


People Excellence


Driving innovation


Work/life balance


S 9



• m ementat on of a g oba SH Q nfo mat on and documentat on management system

• Deve o ment of an em oyee nfo mat on atfo m fo SH Q• Concent at on on nd v dua as ects of c mate otect on, e g a t c at on n m ss on

ad ng Scheme ( S) and o t m sat on of

ene gy eff c ency n oduct on fac t es

• nc eased eff c ency fo ou t ans o t f eet• m oved oduct nfo mat on n ne w th nte nat ona gu de nes such as R ACH andG oba y Ha mon zed System (GHS)

• a geted aud ts fo new oduct aunches• Cont nuat on and fu the deve o ment of hea th and safety og amme w th ze o acc dentta get

• nhancement of t a n ng measu es• G ou w de nt oduct on of web based e o t ng too

• x ans on of sco e of HS met cs to be e o ted

• Coo d nat on and nt oduct on of KP s as measu ement too and dent f cat on of object ves












S 10

Product Stewardship










Health & Safety












S 11











• va uat on of o o tun t es to omote educat on w th ta geted ec u tment su o t

• aunch of new n t at ves f a cab e• nde a ms to become a efe ed esea ch a tne fo deve o ment of nnovat ve the a esus ng med ca gases

• St engthened esea ch co abo at on w th sc ent sts n hos ta s and un ve s t es wo dw de• va uat on of o o tun t es to omote env onmenta otect on w th n a g oba f amewo k• Ongo ng ojects and act v t es

Healthcare









S 12






• Rev s on of eth ca ocu ement gu de nes fo the nde G ou

• stab shment of a g oba com ance o gan sat on


• Pub cat on of Co o ate Res ons b ty Re o t 2007

• Soc a y es ons b e nvestments (SR ) oadshow


S 13

area of activity Achieved by June 2008


• nde S t successfu y o ed out ac oss ent e G ou• m ementat on of HR oadma ongo ng Add t on of va ous to cs, a t cu a y e ated tostaff deve o ment• P ze ce emony n Se tembe 2007 n D esden

• nv tat on to jo n he nde G ou Patent and nnovat on Awa ds n 2008• de ca e se v ce ava ab e to a em oyees n Ge many f om 1 Janua y 2008, ocu ngadv ce and su o t fo staff w th e at ves equ ng ca e and ass stance

• oundat on of Wo k and am y taskfo ce

HR Roadmap




People Excellence




Driving innovation




Work/life balance


S 14





• stab shment of nde Management Systems & Standa ds ( MSS), conta n ng b nd ngdocuments and ocess desc t ons and subject to cont nua ex ans on

• MSS made access b e to a em oyees w th PCs

• nt oduct on of G ou w de SH Q nfo mat on symbo s

• Gene at on of “ ead ng n SH Q” oadma to cha t SH Q o cy goa s

• G ou w de a gnment of SH Q standa ds, e g th ough nt oduct on of SH Q og amme foconst uct on s tes n the ng nee ng d v s on• Ongo ng

• Ongo ng• Ongo ng


• Ongo ng

• nt oduct on of G ou w de Safety Awa d Scheme st awa d ce emony at 2008Management Meet ng• Web based e o t ng too s nt oduced fo occu at ona safety and env onment met cs

• Sco e ex anded to nc ude add t ona met cs such as wate and mate a s consum t on andwate em ss ons

• Resea ch oject on KP s



S 15








• Ongo ng




Product Stewardship








• Ongo ng





S 16

Health & Safety








• Ongo ng






S 17








• Ongo ng





• Ongo ng

• ng nee ng d v s on esea ch co abo at on w th Deggendo f Un ve s ty of A ed Sc ences;KCA D esden estab shment of f e d eng nee ng cou se n coo e at on w th D esdennte nat ona Un ve s ty (D U)• Ongo ng• n shed • Ongo ng• Ongo ng ojects and act v t es

Healthcare

• Ongo ng




S 18

• Ongo ng



• Ongo ng



• Ongo ng

• Ongo ng


• Pub shed Novembe 2007

• Ongo ng


S 19

area of activity 2008 / 2009 objectives


• n shed• Ongo ng m ementat on of HR oadma w th a t cu a focus on “Peo e xce ence”object ves• „Peo e xce ence“ s a a t of the HR oadma and means equ ng a em oyees w thoutstand ng sk s New staff deve o ment og ammes to ensu e e equ s tes fo h gh

e fo mance com any cu tu e• Awa d ng of 2008 Patent and nnovat on Awa d to a tota of n ne w nne s h ee zes neach of the catego es

echno og ca nnovat ons

nnovat ons w th the h ghest moneta y va ue

Bus ness nnovat ons• Deve o ment of com ehens ve og amme to m ove wo k/fam y ba ance

• P ann ng fo nu se y n Pu ach, Ge many ( a gest nde G ou ocat on)

HR Roadmap







People Excellence


S 20







Driving innovation







Work/life balance








S 21


• u the deve o ment of MSS

• G oba m ementat on of system of cons (SH Q cons)

• Ongo ng su o t fo SH Q og amme n the eg ons, nc ud ng ex ans on of nte naaud t ng

• x ans on of exte na ce t f cat on to nte nat ona y ecogn sed standa ds• m ementat on of og ammes and best act ce ojects to m ove ene gy eff c ency andeduce CO em ss ons

• Ana ys s of env onmenta management at a ocat ons and enhancement to a gn w thnte na standa ds whe e a o ate

• fecyc e ana yses of se ected ndust a gases

• u the deve o ment of G ou w de c mate otect on st ategy, nc ud ng def n t on ofconc ete measu es and ta gets

• Act ve su o t fo em ss on t ad ng o cy f amewo k and ts m ementat on

• n t at ves to educe CO em ss ons f om com any ca s and bus ness t ave n Ge many• P om t m ementat on of R ACH egu at ons; com ance w th dead ne fo e eg st at on ofe evant substances (1 Decembe 2008) Pa a e e a at ons fo GHS m ementat on


• Ongo ng

• Cont nuat on of Safety Awa d Scheme• Ongo ng

• Conc us on of extens on of sco e w th add t ona key data

• Conc us on of esea ch oject; subsequent coo d nat on and nt oduct on of G ou KP s



S 22











• Ongo ng




Product Stewardship


S 23











• Ongo ng




Health & Safety


S 24











• Ongo ng






S 25











• Ongo ng





• Ongo ng

• Ongo ng• Ongo ng• Ongo ng• Ongo ng ojects and act v t es

Healthcare

• Ongo ng




S 26

• Ongo ng



• Ongo ng



• nteg at on of eth ca ocu ement gu de nes n su e ag eements by Gas and ng nee ngd v s ons

• Ongo ng


• Pub cat on of Co o ate Res ons b ty Re o t 2008

• Ongo ng


S 27

area of activity Achieved by June 2009


• Ongo ng m ementat on• m ementt on of g ou w de a gned eade sh com etenc es mode , success on ann ngand Pe fo mance Management ocedu es• nv tat on to jo n he nde G ou Patent and nnovat on Awa d fo 2009• nc us on of wo k/fam y ba ance unde the umb e a of demog a h c t ends

• Cons de comm ss on ng an aud t by the He t e oundat on

• P ans fo nu se y n Pu ach, Ge many ( a gest nde G ou ocat on) ha ted due to econom cc s s

HR Roadmap




People Excellence




Driving innovation




Work/life balance


S 28





• B nd ng documents, standa ds and ocess desc t ons subject to cont nua ex ans on

• SH Q cons oject com eted

• Ongo ng

• Ongo ng• Ongo ng o t m sat on, focus ng on a se a at on and HyCO ants

• Pe fo mance of nte na aud ts as we as e eated aud ts fo ocat ons a eady ce t f ed toexte na standa ds

• ocus on the ca bon foot nt of a gases D scuss on of va ous ca cu at on mode s

• Ongo ng ana ys s and d scuss on of d ffe ent o t ons

• Ongo ng

• Ongo ng• Deta ed nfo mat on fo a stakeho de s v a a ded cated webs te


• Ongo ng

• Ongo ng• Successfu de oyment of e o t ng too

• Comm ss on ng aud to s to check se ected HS nd cato s (th d a ty aud t)

• m ementat on at nde ng nee ng



S 29



• Ongo ng





• Ongo ng



• Ongo ng




Product Stewardship


S 30



• Ongo ng





• Ongo ng



• Ongo ng




Health & Safety


S 31



• Ongo ng





• Ongo ng



• Ongo ng






S 32



• Ongo ng





• Ongo ng



• Ongo ng





• P esentat on of Phys cs P ze n conjunct on w th Bava an state un ve s t es and the Ge manPhys cs Soc ety Host of nte nat ona Summe Sc ence Cam o gan sed by the Ge man YoungResea che Netwo k

• A ance w th the Management Cente nnsb uck

• Conce t on and nt oduct on of student og amme “CON NU ”• Ongo ng• Ongo ng• Ongo ng ojects and act v t es

Healthcare






S 33









• Ongo ng

• stab shment of a g oba com ance o gan sat on com eted


• Pub cat on of Co o ate Res ons b ty Re o t n Novembe 2008

• nde awa ded “ me nvestment” status by oekom esea ch AG


S 34

area of activity 2009/2010 objectives


• Ongo ng m ementat on• mm ementat on of a deve o ment og am fo ne manage s, ta geted deve o ment oftechn ca sk ed staff• P ze ce emony at the end of 2009• Cont nuat on of scheme fo a ocat ng ch dca e and othe se v ces ( de Ca e) S m a

og ammes fo nde G ou em oyees n d ffe ent count es

HR Roadmap



People Excellence



Driving innovation



Work/life balance





S 35

• Ongo ng

• n shed

• Ongo ng

• Ongo ng• Ongo ng, focus ng on a se a at on and HyCO ants




• Ongo ng



• Ongo ng

• Ongo ng• x ans on of on ne data ca tu e too to nc ude commun ty nvo vement nd cato s

• Pub cat on of key nd cato s n assu ance e o t

• m ementat on at nde Gas



S 36

• Ongo ng

• n shed

• Ongo ng





• Ongo ng



• Ongo ng




Product Stewardship


S 37

• Ongo ng

• n shed

• Ongo ng





• Ongo ng



• Ongo ng




Health & Safety


S 38

• Ongo ng

• n shed

• Ongo ng





• Ongo ng



• Ongo ng






S 39

• Ongo ng

• n shed

• Ongo ng





• Ongo ng



• Ongo ng





• va uat on of how the Phys cs P ze can a se awa eness and nte est

• Ongo ng

• Ongo ng• Ongo ng• Ongo ng• On ne, systemat c ca tu e and eva uat on of a commun ty nvo vement ojects

Healthcare


• Ongo ng




S 40


• Ongo ng




• Ongo ng



• Ongo ng

• On ne com ance t a n ng fo a em oyees


• Re aunch of on ne co o ate es ons b ty m c os te, ub cat on of Co o ate Res ons b tyRe o t 2009 (on ne and nt b ochu e)

• nc ease nde s a ea as a soc a y es ons b e nvestment

Strategy and analysis

1.1 Statement from the Chief Executive Officer

1.2 Description of key impacts, risks and opportunities

2 Organisational profile

2.1 Name of the organisation

2.2 Primary brands, products and/or services

2.3 Operational structure

2.4 Location of organisation’s headquarters

2.5 Countries where the organisation operates

2.6 Nature of ownership and legal form

2.7 Markets served

2.8 Markets served Scale of the reporting organisation

2.9 Significant changes during the reporting period regarding size, structure or ownership

2.10 Awards received in the reporting period

3 Reporting parameters

3.1 Reporting period

3.2 Date of the most recent previous report

3.3 Reporting cycle

3.4 Contact point for questions

3.5 Definition of report content and stakeholders

3.6 Boundaries of the report

3.7 Limitations on the scope of the report

3.8 Joint ventures, subsidiaries, outsourcing

3.9 Data measurement techniques and basis of calculations

3.10 Effects of new re-statement of information

3.11 Changes from previous reporting periods

3.12 GRI content index

3.13 External assurance statement

4 Governance, commitments and engagement

4.1 Governance structure, including responsibility for sustainability

4.2 Independence of Supervisory Board Chairman

4.3 Management bodies and statement regarding independence of members of the

highest governance body, senior managers and executives

4.4 Mechanisms to provide recommendations to the highest governance bodies

4.5 Linkage between the compensation for members of the highest governance body,

senior managers and executives, and the organisation’s performance with regard to

sustainability

4.6 Processes to ensure conflicts of interest are avoided

4.7 Qualifications and expertise of the members of the highest governance body with

regard to sustainability

1 4.8 Missions, values and codes of conduct

4.9 Procedures employed by the highest governance body to monitor the organisation’s

performance with regard to sustainability

4.10 Processes for evaluating the highest governance body’s own performance

4.11 Implementation of the precautionary principle

4.12 Support of external initiatives

4.13 Memberships in associations

4.14 List of stakeholder groups engaged by the organisation

4.15 Basis for identification of stakeholders

4.16 Approaches to stakeholder dialogue

4.17 Statement on key concerns raised by stakeholders

Key economic indicators

Management approach

EC1 Direct generated economic value

7 EC2 Financial implications of climate change

EC3 Scope of the organisation’s defined benefit plan obligations

EC4 Financial assistance received from government

EC6 Procedures for selecting local suppliers

6 EC7 Procedures for local hiring

EC8 Infrastructure investments and services provided primarily for public benefit

Key environmental indicators

Management approach

8 EN1 Materials used by weight or volume


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8, 9 EN2 Percentage of materials used that are recycled input materials

8 EN3 Direct energy consumption by primary energy source

8 EN4 Indirect energy consumption by primary source

8 EN8 Total water withdrawal by source

8 EN11 Land in, or adjacent to, protected areas

8 EN12 Impact on biodiversity

8 EN16 Greenhouse gas emissions

8 EN17 Other greenhouse gas emissions

7, 8, 9 EN18 Initiatives to reduce greenhouse gas emissions

8 EN19 Emissions of ozone-depleting substances

8 EN20 NOx, SOx and other air emissions

8 EN21 Water discharge

8 EN22 Waste by type and disposal method

8 EN23 Total number and volume of significant spills

7, 8, 9 EN26 Initiatives to mitigate environmental impact of products and services

8, 9 EN27 Reclaimed packaging material

8 EN28 Sanctions for non-compliance with environmental laws and regulations

Key social indicators Labour practices and decent work

Management approach

LA1 Total workforce by employment type, employment contract, and region

6 LA2 Employee turnover

1, 3 LA4 Employees covered by collective bargaining agreements

3 LA5 Minimum notice period regarding significant operational changes

1 LA7 Rates of injury, occupational diseases, lost days, and absenteeism

1 LA8 Risk-control programmes in place regarding serious diseases

LA10 Employee training

1, 6 LA13 Composition of governance bodies

1, 6 LA14 Differences in salary according to gender

Key social indicators Human rights

Management approach

1 to 6 HR1 Significant investment agreements

1 to 6 HR2 Screening of suppliers with regard to human rights issues

1, 2, 6 HR4 Incidents of discrimination

1, 2, 3 HR5 Operations involving significant risk to exercise freedom of association and collective

bargaining agreements

1, 2, 5 HR6 Operations involving significant risk of child labour

1, 2, 4 HR7 Operations involving significant risk of forced or compulsory labour

Key social indicators Society

Management approach

SO1 Impact on local communities

SO2 Risks related to corruption

10 SO3 Anti-corruption training

10 SO4 Actions taken in response to alleged incidents of corruption

10 SO5 Public policy positions and lobbying

SO8 Sanctions for non-compliance with laws and regulations

Key social indicators Product responsibility

Management approach

PR1 Impact on health and safety throughout the product lifecycle

PR3 Product information

PR6 Laws and standards related to advertising

PR9 Sanctions for non-compliance with laws and regulations concerning products and

services

1 UN GC Communication on Progress (the ten principals of the UN Global Compact initiative).

2 GRI GRI key indicator number.

3 Status Covered in full Covered in part Not covered Low priority Not usable/relevant

4 Additional information.


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Assurance Report - P.1

Assurance Report

IntroductionWe have been engaged by the Executive Board of Linde AG (further referred to as ‘Linde’)to provide limited assurance on the data for the parameters listed in the section ‘Scope’,together with the related explanatory information in the publication: ‘Shaping Responsibility.The Linde Corporate Responsibility Online Report 2009.’ (further referred to as ‘The Report’).The Report, including the identification of material issues, is the responsibility of thecompany’s management. Our responsibility is to issue an opinion on whether the data for theselected parameters, stated below, and the related explanatory information are fairly stated.

ScopeOur engagement was designed to provide limited assurance on whether the data for theparameters listed in the table below, together with the related explanatory information, arefairly stated.

Energy consumption Total consumption of electricityTotal consumption of electricity by airseparation plantsTotal consumption of natural gasTotal consumption of natural gas by HyCOplants

CO2 emissions Direct emissions of CO2

Direct emissions of CO2 by HyCO plantsIndirect emissions of CO2

Indirect emissions of CO2 by air separationplants

Water consumption Total consumption of waterTotal consumption of water by air separationplants

Safety Number of workplace accidents per millionhours worked by Linde employees (Lost TimeInjury Rate; LTIR)

Procedures performed to obtain a limited level of assurance are aimed at determining theplausibility of data and are less extensive than those for a reasonable level of assurance.

Reporting criteriaThere are no generally accepted standards for reporting sustainability performance. Lindeapplies the Sustainability Reporting Guidelines of the Global Reporting Initiative (G3) togetherwith internal corporate guidelines. It is important to view the performance data in the contextof this explanatory information. We believe that these criteria are suitable in view of thepurpose of our assurance engagement.

StandardsWe conducted our engagement in accordance with the International Standard for AssuranceEngagements (ISAE) 3000: Assurance Engagements other than Audits or Reviews of Historical

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Financial Information, issued by the International Auditing and Assurance Standards Board.Amongst other things, this standard requires that the assurance team members possess thespecific knowledge, skills and professional competencies needed to understand and reviewthe information and that they comply with the requirements of the IFAC Code of Ethics forProfessional Accountants to ensure their independence.

Work undertakenWith regard to the information in The Report, we carried out the following activities:

- reviewing the systems and processes for data management, internal control andprocessing of the selected parameters as defined under Scope;

- reviewing the data as defined under Scope as reported by the production sites underoperational control of Linde;

- visiting six selected production sites in the USA, India, the Netherlands and the UnitedKingdom;

- visiting one selected regional office in Sweden;- interviewing representatives of four regional business offices in the USA, Europe and Asia;- reviewing data trends and discussions with management thereto;- interviewing staff at corporate level responsible for the analysis and reporting of the data

and explanatory notes for the parameters defined above under Scope.

During the assurance process we discussed changes to the various drafts of The Report withLinde, and reviewed the final version of The Report to ensure that it reflected our findings.

ConclusionBased on the work described above, we conclude that the data for the parameters as definedunder Scope, together with the related explanatory information, do not appear to be unfairlystated.

Emphasis of matterWithout qualifying our opinion above, we draw attention to the paragraph 'Health, Safety,Environmental (HSE) indicators' under Fast facts, which explains the uncertainty related tothe CO2 emissions, energy consumption and water consumption data.

Amstelveen, 2 November 2009

KPMG SustainabilityW.J. Bartels

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