Schmalz ecosystem. Sustainability Report

Transcription

1 Schmalz ecosystem Sustainability Report 2017

2 The Schmalz Company Schmalz is the market leader in vacuum automation and ergonomic handling systems. Schmalz products are used all over the world, for example in applications in the logistics industry, the automotive industry, the electronics sector or in furniture production. With its own locations and its sales partners, Schmalz is represented in more than 80 countries and in all important markets. The family owned company has around 1,400 employees at its headquarters in Glatten (in the Black Forest region of Germany) and its 18 subsidiaries worldwide. NORTH AMERICA EUROPE Switzerland Nürensdorf Benelux Hengelo Finland Vantaa Canada Mississauga USA Raleigh Germany Glatten Spain Erandio France Champs-sur-Marne Russia Moscow Poland Poznan Turkey Istanbul Italy Novara South Korea Anyang Japan Yokohama China Shanghai ASIA Mexico Querétaro India Pune SOUTH AMERICA AFRICA AUSTRALIA Australia Melbourne With DIN certifications in accordance with ISO 9001 for quality management, ISO for environmental management and ISO for energy management, we guarantee our partners standardized and sustainable processes. 2

3 Contents SUSTAINABLE ENTREPRENEURSHIP 4 ecosystem by Schmalz ECONOMY 6 ECOLOGY AND CONSERVATION OF RESOURCES 8 Positive Energy Company CO 2 -neutral Production Resource-Efficient Products Environmental Protection and Communication SOCIAL COMMITMENT 18 Employees Community MEASURES AND PROJECTS IN This sustainability report is based on the headquarters of J. Schmalz GmbH in Glatten, Germany. The report covers the 2017 financial year. The contents of the report are based on the sustainability reporting standards of the Global Reporting Initiative. 3

4 Sustainably Successful Our mission is the sustainable growth of the Schmalz company. Achieving this goal requires commercial success, ecological accountability and social commitment in equal measure. We think long term and not just quarter by quarter. All the activities we undertake to achieve this goal are grouped together into the Schmalz ecosystem. Our drive for economic success forms the basis of our business. Since 1984, our products have continually set new standards in the field of vacuum technology. We inspire our customers with innovative solutions, allowing us to expand our advantage over the competition. This ensures the long-term stability and independence necessary to practice sustainable entrepreneurship. The Schmalz company generates nearly the same amount of energy from renewable sources as it consumes. At the same time, Schmalz achieves a negative carbon footprint through its resource-efficient production processes, thereby reducing the overall impact on the environment. Social commitment is a further part of Schmalz s strategy. That s why, for example, we offer our employees a secure future and outstanding benefits. They have already recognized us as one of Germany s best employers several times. It s an achievement we re proud of. Our company philosophy goes well beyond simply fulfilling legal standards or gaining an advantage over our competitors. We feel morally and ethically obligated to future generations to leave an ecological footprint as small as possible. Schmalz shows how an industrial company can be run in a sustainable manner while also putting groundbreaking ideas into practice. We want to inspire others too; take part and take action! Dr. Kurt Schmalz Andreas Beutel Dr. Hinrich Dohrmann 4

5 Sustainability Biotope beneath the production hall ecosystem by Schmalz Schmalz sees sustainability as an integrated system of business success, ecological responsibility and social commitment. Numerous sustainability measures have been combined to develop the Schmalz ecosystem. The goals and cornerstones of sustainable management at Schmalz are: ECONOMY A solid financial base is important to Schmalz because it allows the family business to retain its independence and freedom in the long term. ECOLOGY AND CONSERVATION OF RESOURCES Schmalz s goal is to generate more electricity and heat from renewable sources than is consumed by the company. Schmalz s production is carbon neutral, resulting in a reduction of CO 2 emissions. Schmalz products have a significantly lower product carbon footprint than comparable products on the market. Schmalz takes numerous environmental protection measures and inspires others to follow its example. SOCIAL COMMITMENT Schmalz offers its employees a wide range of benefits that goes well beyond what other employers offer. Schmalz supports the region it s based in and is actively involved in numerous networks. 5

6 Energy storage system in Pfinztal Schmalz s CobotPump ECBPi produces vacuum electrically, without compressed air. Economy Commercial success is the foundation of all our company s activities. We are and will remain a family-owned company. This allows us to retain our independence and provides us with the freedom we need to manage our business successfully. FAMILY OWNERSHIP AND SELF-RELIANCE Schmalz is in its third generation of family management and securing the business over the long term is our top priority. The owners place great emphasis on innovation and the company s self-reliance. Stable revenues and high availability of capital are the foundation on which these principles rest. KNOWLEDGE MANAGEMENT AND COMMUNICATION Whether it s our globally networked IT systems, our inhouse training academy or our cross-national project and departmental teams: Schmalz relies on active knowledge management and the structured exchange of information. A globally available intranet serves as the central platform for employees to exchange information and experience. TECHNOLOGY AND INNOVATION Schmalz invests 8.5 percent of its sales in R&D every year. More than 100 employees work in this division. And our approximately 450 granted property rights speak for themselves. Schmalz has been setting technological standards in the field of vacuum technology since Today Schmalz offers a wide range of products for networked production and ergonomic handling of loads. 6

7 Economy VARIETY OF INDUSTRIES AND GROWTH MARKETS Schmalz is active in many different industrial sectors and is therefore highly insusceptible to economic fluctuations in individual markets. International growth markets are particularly important for Schmalz. Industry sectors such as wind energy, packaging, logistics and battery manufacturing offer great potential for additional revenue gains. INTERNATIONALITY AND CUSTOMER FOCUS Customers all over the world rely on Schmalz vacuum technology. A strong customer focus and high-quality service are the top priorities for Schmalz. With 19 subsidiaries and trade partners in more than 60 countries Schmalz ensures customer focus through personal advice and excellent service worldwide. BUSINESS UNIT: ENERGY STORAGE At its headquarters in Glatten, Schmalz develops and produces redox flow stacks for energy storage in large battery systems. Schmalz utilizes its extensive expertise in handling sensitive parts, in cutting-edge production methods and in plastic and process technology, and collaborates closely with the Fraunhofer Institute for Chemical Technology (ICT) in Pfinztal near Karlsruhe, Germany. The stacks are used there to store energy produced by a wind turbine system. Dr. Kurt Schmalz opened the plant in 2017 alongside the Minister of Economic Affairs of Baden-Württemberg, Dr. Nicole Hoffmeister-Kraut. With its energy storage solutions, Schmalz is investing in a business area with a future and making an important contribution to reducing the costs involved in energy storage. Assembly process in accordance with the Schmalz added-value system VALUE CREATION AND IMPROVEMENT To remain competitive, Schmalz relies on lean processes in all value creation areas. The Schmalz value-added system is the basis for designing efficient processes. Our company suggestion sytem allows employees to submit suggested improvements to workflows or products. In doing so, they make an important contribution toward increasing our productivity and securing our long-term competitive position SUPPLIERS AND PARTNERS 800 Schmalz places great emphasis on trust and fairness in its business with partners and suppliers. Suppliers can view the company s current stock levels. If the stock level drops below the specified minimum quantity, the supplier delivers more supplies. This means that Schmalz only stocks the resources that are currently needed. This also allows suppliers to adjust their own production according to Schmalz s demand ORGANIZED BASED ON VALUE-ADDED PROCESSES Flat hierarchies and an organizational structure that is clearly aligned with value-added processes allows Schmalz to achieve short distances and efficient workflows. This provides flexibility and makes us more responsive. Year Number of suggested improvements per 100 employees,

8 Footbridge with a roof made of photovoltaic collectors Company-owned wind turbine Ecology and Conservation of Resources Environmentally conscious business practices and responsible use of finite resources are key parts of Schmalz s sustainability strategy. Schmalz is a pioneer and a role model in the areas of energy management and the development and production of resource-efficient products. 8

9 Ecology Positive Energy Company Schmalz s strategic goal is to be a positive energy company: The company strives to generate its own electricity and heat from renewable energy sources and to keep its energy consumption in balance over the long term. Schmalz achieves this by continually expanding its renewable power plants. Schmalz also takes various measures to reduce its energy consumption. Solar heat (54.345) Hydroeletric power Heat consumption Photovoltaics Wood chips (biomass) Electricity consumption Wind power Electricity and Heat Balance The electricity and heat balance compares energy from renewable sources against energy consumption. An analysis over five years indicates that renewable sources cover 83% of our energy needs. Renewable energy generation kwh Electricity and heat balance Enegery consumption kwh Renewable Energy Generation Creating our own energy from renewable sources has a long tradition at Schmalz. We are always adding new plants. This table shows the production from the energy sources currently in use. Energy source Wind energy Photovoltaics Hydroelectric Wood chips Solar heat power (biomass) Type Electricity Electricity Electricity Heat Heat Used since Annual production 2,276,847 1,285,501 86,990 1,290,000 10,869 for 2017 in kwh Location Glatten* and Dunningen** Glatten and Empfingen** Glatten Glatten Glatten *3 km away **about 25 km away 9

10 REDUCTION OF ENERGY CONSUMPTION In addition to generating its own renewable energy, Schmalz implements a range of measures to continuously reduce its consumption of electricity and heat. Saving Electricity Electricity is needed almost everywhere in the company. As a result, there is a correspondingly wide range of possibilities to save energy. Company-owned wood chip heating system with roof greening The communication center is cooled by water from the nearby Glatt River. The IT server room is cooled using sprinkler water. The heated water is stored in the sprinkler tank. A heat pump removes the heat from this water and transfers it to the heating system and washing system. High-rack storage area with storage and retrieval system In the automated small parts warehouse, the braking energy generated in the storage and retrieval systems is fed back into the grid and reused. Unneeded electricity circuits are switched off during nights and weekends. Lighting throughout the entire company is adjusted in accordance with the amount of available daylight. Only energy-saving light bulbs are used. Only energy-saving PC monitors and peripheral devices are used. The generation of compressed air is frequency controlled and monitored by software, allowing us to reduce the pressure level by 1 bar. Saving Heat Schmalz gets a majority of its heat from an own wood chip heating system. Schmalz also takes measures to reduce its consumption of heat. A heat exchanger passes the waste heat from the air compressors to the heat distributor and washing system. Warm exhaust air from the factory is recovered using a thermal wheel and fed back into the factory supply air. An outdoor air cooling system has made air conditioning systems unnecessary in almost all areas. The buildings are cooled at night using automatic louver windows and skylights as well as fresh air ventilators in the factories. Geothermal cooling from the bed rock is used to cool the research and testing center. A central extraction system installed at the machining tools in the production area reduces the amount of heat generated in the summer. The buffer tank in the wood chip heating system stores heat and therefore reduces the number of operation cycles by the heating system. A central controller ensures that heating, ventilation and cooling are optimally attuned to one another. At 57%, the overall energy efficiency of the production and logistics building is below the requirements of the German Energy Saving Regulation. 10

11 Ecology ENERGY SELF-SUFFICIENCY Whenever technically feasible and economically viable, Schmalz draws its electricity and heat directly from its own energy sources. Since the amount of electricity from renewable sources does not always correspond to the amount of electricity required, some of the self-generated electricity is fed into the public grid or sometimes power is drawn from an external provider. To this end, Schmalz has worked with the Elektrizitätswerke Schönau utility company, which has received many awards as a provider of clean, CO 2 - neutral green energy. Degree of energy self-sufficiency at J. Schmalz GmbH Consumption covered by in-house production 1,950,356 kwh Consumption covered by recovered heat and 1,058,670 kwh 40.9% excess electricity returned to the grid energy Consumption covered from external sources 4,351,457 kwh self- Total energy consumption 7,360,482 kwh sufficiency Origin of energy Demand of energy Energy usage type Own generation of electricity out of renewable sources Wind power Hydroelectric power Photovoltaics Energy procurement out of CO 2-neutral sources (green electricity provider Elektrizitätswerke Schönau) Power input into the public grid: kwh Inserted electricity out of external sources: kwh Reduced demand of electricity** Braking energy small parts warehouse Inserted electricity out of electricity recovery: kwh* Inserted electricity out of own generation: kwh Machinery (~ 50%*) Lighting (~ 12%*) Ventilation systems (~ 8%*) Compressed air(~ 22%*) IT systems (~ 8%*) 49%* 13%* 9%* 16%* 4%* Useful energy out of electricity: kwh IT systems kwh* Compressed air kwh* Exhaust kwh* Inserted heat out of heat recovery: kwh Own generation of heat out of renewable sources: - Wood chips - Solar heat Heat procurement out of external sources: Heating oil Inserted heat out of - own generation: kwh - external sources: kwh Space heat (85 90%*) Process heat (10 15%*) 60 65%* 10 15%* Useful energy out of heat: kwh Reduced demand of heat** Energy flows at J. Schmalz GmbH in 2017 *approximate value **see p. 10 for specific measures 11

12 CO 2 -neutral Production As a manufacturing company, Schmalz is pursuing a clear goal of limiting the environmental impact of its business activities as much as possible. The company is especially interested in minimizing its own carbon footprint. In this respect, Schmalz is setting standards for the manufacturing industry. By using in-house and external energy from renewable sources, Schmalz manages to keep a majority of its energy consumed carbon neutral. The supplementary fuels and heating oil emitted a total of 778 metric tons of CO 2 in At the same time, however, the wind and photovoltaic energy that the company fed into the grid prevented 2,127 metric tons of CO 2 emissions that would otherwise have been caused by conventional generation of electricity. Through feeding regneratively generated power into the public grid, Schmalz was able to save an environmental load of t CO t avoided CO 2-emissions t credit 114 t heating oil 664 t car fleet 0 t A carbon impact of 778 t is offset by a reduction in carbon emissions of t resulting in an overall carbon credit of t Company operations with carbon-neutral power generation In 2017, therefore, Schmalz achieved a negative value for net CO 2 emissions, preventing a total of 1,349 metric tons of the harmful greenhouse gas from entering the atmosphere. CO 2 balance in 2017 Note on the calculation: The calculation factors that are used correspond to the recommendations from the German Federal Environmental Agency, the German Emissions Trading Authority, and the emissions report of the Federal State of Bavaria. Reduction in carbon emissions Carbon impact Schmalz s CO 2 balance is based on the limits established in the Greenhouse Gas Protocol by the World Resources Institute and the World Business Council for Sustainable Development. All influencing factors as prescribed in Scope 1: All direct greenhouse gas emissions and Scope 2: Indirect greenhouse gas emissions from consumption of purchased electricity, heat or steam, are currently being implemented. For the coming years, Schmalz plans on expanding the CO 2 balance limits to include Scope 3: All other indirect emissions along the value chain (including operation and disposal of products). Schmalz CO 2 balance Supplier Scope 1 Scope 2 Scope 3 today in future 12

13 Ecology Logistics area in the production hall Resource-Efficient Products Responsible use of non-renewable resources is one of Schmalz s key corporate goals. Schmalz strives to keep its carbon footprint as small as possible throughout all phases of the product life cycle. The carbon impact of a Schmalz product is therefore significantly less than that of comparable products on the market. emissions Supplier Comparable products on the market Savings through Schmalz products Schmalz products Product life cycle Upstream processes Procurement logistics Production Distribution logistics Usage Disposal Development of CO 2 emissions during the product life cycle (product carbon footprint) PRODUCT CREATION Design-related factors, such as the materials or the production technologies used, have the greatest impact on the product carbon footprint. That s why Schmalz employs the latest design and analysis procedures when developing its products in order to avoid energy-intensive materials and production processes. We also define environmental targets such as energy efficiency values in our products specification sheets. When creating a product, we also take earlier stages in the added-value chain into account: We therefore audit, advise and train our suppliers accordingly. Schmalz also relies on regional suppliers with short transportation distances. These measures help ensure that our purchased parts and assemblies have a low carbon impact. Because Schmalz s production processes are carbon neutral, our product carbon footprints do not increase during the manufacturing process. In fact, when you take into account the carbon credits achieved by the company as a whole, it actually reduces the carbon footprint that Schmalz products have already accumulated. In its outbound logistics department, Schmalz uses carbonneutral shipping methods such as GoGreen shipping from DHL. 13

14 Example: SBPL Basic Ejector Making good things even better this is one of the most important aims of product development at Schmalz. That s why our basic ejector SBPL works with highly efficient eco nozzle technology. This results in maximum energy efficiency in the handling of airtight and porous workpieces as well as a much higher suction rate compared to its predecessor SEM. The SBPL exhibits significantly lower compressed air consumption and sound levels. The SBPL is also advantageous in terms of material. In place of aluminum, the main body and the nozzle system are now made from extremely sturdy, lightweight plastic. The SBPL weighs only 0.8 kg and is 45% lighter than the SEM model. Thanks to its modular design, the vacuum generator SBPL is fast and easy to maintain. And its carbon footprint is just as impressive: Savings on weight and materials reduce its footprint by 65%. Previous vacuum generator SEM New vacuum generator SBPL +33% -45% -11% -19% -65% SEM SBPL Suction rate at 4.5 bar in l/min Weight in kg Air consumption at 4.5 bar in l/min Sound level in db CO 2 emissions in kgco 2 e* Vacuum generator SEM Vacuum generator SBPL Savings 33% 45% 11% 19% 65% The SBPL features more power with lower resource consumption, improved performance and significantly better CO 2 emissions compared to the SEM. *The carbon dioxide equivalent (CO 2 e) includes, in addition to CO 2, other gases that contribute to the greenhouse effect. The carbon dioxide equivalent represents their greenhouse impact in terms of carbon dioxide. 14

15 Ecology PRODUCT OPERATION AND INDUSTRY 4.0 When operating vacuum technology products, it is especially important to use compressed air and electricity resources in an efficient manner. Schmalz products are designed so that they consume energy only during the actual handling process and not during idle times or downtime. In addition, the i series of intelligent products allow for process communication with the user s control systems to adjust all process parameters for energy-efficient operation. Intelligent Smart Field Devices With the vacuum and pressure switch VSi, Schmalz is demonstrating how intelligent field devices can be used to support more efficient process design. This switch not only monitors for excess and insufficient pressure in automation and handling systems, but it also provides the users with important data. For example, thanks to NFC (Near Field Communication), process settings and the operating instructions can also be displayed using a smartphone or tablet for reading quickly and directly at the system, with no cables and in a user-friendly format. Such functions require that all relevant process data be available in real time. Schmalz provides an entire range of smart field devices for this purpose: They are equipped with energy and process control functions, gather and store data, and make it available in the network. With the aid of their diagnostic and forecasting functions, they derive information regarding the condition of the unit and detect subtle changes or imminent malfunctions. With products such as these, Schmalz supports its customers on the path toward Industry 4.0 the switch to the intelligent factory. The ever increasing networking inherent in this trend is resulting in a break up of traditional automation pyramids. Vacuum generators, such as the compact ejector SXMPi, are now taking center stage within an automation cloud where intelligent devices and services communicate with each other and organize themselves. Important process data is available on the smartphone or tablet. Enterprise level (ERP) Enterprise ressource planning Plant management level (MES) Manufacturing execution system ERP MES MES ERP Process management level Human machine interface (HMI) Control Level (SPS) Programmable logic controller Field level Sensors / Actuators HMI HMI Hierarchical organization in the classical automation pyramid and communication in the automation cloud 15

16 Vacuum Handling Without an External Energy Supply The modular vacuum lifting device VacuMaster Eco allows for vacuum generation without an external energy supply. The vacuum is generated and dissipated by the lifting and lowering force of the chain hoist that the VacuMaster is attached to. This eliminates the need to operate an external vacuum generator and also reduces operating costs. In a technological study, Schmalz also applied this principle to a wide variety of grippers in automated handling processes. Vacuum lifting device VacuMaster Eco without external energy supply Radio Remote Control for the Vacuum Tube Lifter The vacuum tube lifter Jumbo can be equipped with radio remote control SRC. This allows you to switch the vacuum generator on and off during work breaks directly from the operator handle. By using energy harvesting, no external energy is required for the radio control. The energy is produced by the piezoelectric effect (pressing the button) or photoelectric effects (integrated solar cell) and converted to a radio signal. When operating a tube lifter, the radio remote control SRC saves up to 40% in energy. SRC Radio remote control SRC for vacuum tube lifters USING THE PRODUCT AFTER THE UTILIZATION PHASE To complete the product life cycle in an efficient way, attention is paid to the separability of the individual materials when the product is first created. For example, the elastomer part on certain suction cups can easily be separated from the aluminum connecting part. Since the elastomer is a part that is subject to wear and tear, it can easily be replaced without having to purchase a completely new suction cup. Separating the two components also allows for proper disposal of both materials. Design of a recyclable suction cup 16

17 Ecology Environmental Protection and Communication ENVIRONMENTAL PROTECTION MEASURES ON THE COMPANY GROUNDS Our multifaceted measures for environmental protection and conservation are evident at many locations across the Schmalz company grounds. Environmentally-friendly methods are also emphasized in our operational processes (3 and 26 km away) Hydroelectric plant with charging station for electric vehicles belonging to the company fleet, employees or the public 2 Schmalz ecological trail loop 3 Biotope with intake structure for hydroelectric plant 4 Rainwater retention basin 5 Wood chip heating system for providing room heating via the local heating grid 6 Wind turbines (3 and 26 km away) 7 Photovoltaic systems for electricity 8 Production hall ventilation with heat exchange 9 North-facing shed roofs to reduce thermal load 10 Solar system for hot water generation 11 Parking spaces with grass pavers to reduce surface sealing 12 Cisterns for rainwater usage 13 Roof greening Ecological Guided Tour Schmalz operates an ecological guided tour to inform the public about the variety of measures implemented. During guided tours, guests from other companies or even members of the public are introduced to the company s environmental protection measures and inspired to follow suit. In 2009, the ecological guided tour was named the Selected Landmark of 2009 by the Germany Land of Ideas initiative. Loop trail through the Schmalz ecological guided tour 17

18 Excited children at the Sendung mit der Maus open house day Internships at Schmalz Social Commitment Total At Schmalz, taking on social responsibility is an important part of the company strategy, on par with achieving business objectives or using resources in an environmentally conscious manner. Not only the local community benefit from Schmalz s social commitment but also our own employees Total Total Total Total Employees The fact that Schmalz is a dynamic company is made clear by both the rising sales figures and the increasing number of employees. Year Employees J. Schmalz GmbH Trainees J. Schmalz GmbH Employees abroad Employees

19 Social Commitment Excellent working conditions and outstanding employer benefits like profit sharing or retirement plans boost not only employee motivation but also help us keep employee turnover low. TRAINING THE EMPLOYEES OF TOMORROW TODAY Vocational Training and Cooperative Education Programs Vocational training for young people is an important part of employee development at Schmalz. 7,0% 6,8%* 5,0% 3,0% 4,4 % 4,5 % 4,4 % 3,4 % 3,5 % 7,0 % The company currently has 31 students from cooperative education universities and about 70 trainees in technical and business fields. This is a training rate of approximately 12% of all of the permanent staff at the headquarters in Glatten, which is above the average in Germany. Schmalz trains the young people with the objective of employing them once their vocational training is complete. Out of all the current employees, 19% have received their vocational training at Schmalz. 1,0% Year Employee turnover *Benchmark: total of all terminations and other forms of employment dissolution in the mechanical engineering field in Germany as a % of all employees (status 2016). (Source: Verband Deutscher Maschinen- und Anlagenbau e.v.) Schmalz supports its employees physical and mental health with a range of programs. When combined with ergonomically designed workplaces, these lead to significantly lower illness rates than at other companies in the mechanical engineering sector. Schmalz trainees at the career information day 5,2%* 5,0% 3,0% Cooperation with Educational Institutions Schmalz places great emphasis on training its own staff. We regularly hold events at schools in the region to inform students about the opportunities at Schmalz. We also offer cooperative programs with many schools, for example the Student-Engineer-Academy with the Freudenstadt Technical Secondary School. 1,0% 3,3% 3,3% 3,2% 3,0% 2,9% Once a year, Schmalz invites the public to attend a career information day. To get children and young adults interested in technical careers, Schmalz also participates in projects such as the jugend-technik-schule, a technical education program for children in the Freudenstadt district, or Technolino, a collaboration with the local kindergarten. Year Staff illness rates for *Benchmark: illness rate in % over all defined working days in the mechanical engineering sector in Germany as a % of all employees (status 2016). (Source: Verband Deutscher Maschinen- und Anlagenbau e.v.) Training Initiative Schmalz is a co-founder of the Ausbildungsinitiative, a vocational training program for the district of Freudenstadt ( This program works with special education centers and vocational schools to train at-risk youths for a career in precision metalworking. 19

20 BENEFITS PROVIDED BY THE EMPLOYER TO ACQUIRE NEW EMPLOYEES AND RETAIN EXISTING EMPLOYEES Schmalz provides its employees with all-around support. LIFE + is a comprehensive benefits package that addresses all areas of employees lives in equal measure so that everyone can participate and benefit from the program. LIFE Finances and Security In addition to job security, employees at Schmalz benefit from an innovative pay system that includes bonuses for team and company successes, profit sharing, a retirement plan that goes well beyond the legally prescribed benefits and many other perks. Future Prospects and Education In terms of career prospects, the company offers a number of programs for the development of junior employees and managers. Alternate career paths were also introduced in the area of departmental and project management. In order to enable employees to pursue advanced training while continuing to work, the Schmalz Academy, the company s in-house training center, offers more than 200 courses in a wide range of subject areas. Health and Well-being Modern, well-lit workplaces and a recreation area on the company grounds help to promote health and wellness. In addition to numerous sports and health courses, we have also set up a massage room, where employees can be treated by qualified physical therapists. To ensure their mental well-being, employees can draw on the services of experienced life counselors, which are provided free of charge and on an anonymous basis. Family and Leisure Time The company supports excellent work-life balance with flexible working hours and a day care center situated close to the company known as the Schmalz Kinderwelt. A wide range of hobby and recreational courses, company parties with the entire family, and team events within the departments help to promote a feeling of unity among colleagues. 20

21 Social Commitment FLEXIBLE WORKING ENVIRONMENTS PILOT PROJECT With the groundbreaking ceremony for the construction of another office building, Schmalz also launched a project on the future of work: On one whole floor, the company is testing how its teams can work together efficiently in an interdepartmental and increasingly international modern office environment. Quiet areas for concentrated work are provided on the floor alongside stimulating creative areas and open areas for exchanging information with each other. The basis of the innovative concept is a flexible spatial arrangement that utilizes the available surface areas in the most effective way possible. The table arrangement is flexible, and fixed workstations have been discarded: Everyone who arrives in the morning chooses a free table and begins their work equipped with the latest hardware and software. Schmalz is using the concept to make its office spaces much more adaptable to changing circumstances. When necessary, the office environment can be adapted to changing re- Pilot level "Flexible Working Environments" quirements with some simple conversion measures. Its focus is on employees satisfaction: They get greater autonomy in shaping their everyday work and can choose the working environment that they feel meets their needs. Community Schmalz also feels a strong obligation to the local community. The company involves its employees in various projects and motivates them to be socially active in their private lives. For example, there have been several blood-typing drives for the German bone marrow donor database. Employees also regularly take part in the Christmas in a shoe box campaign, in support of needy children around the world. Our trainees are active in charitable projects such as the construction of new changing rooms at the local pool and the renovation of the kindergarten. Schmalz s engagement also extends to financial support for local clubs and institutions, for example sponsorship campaigns. Instead of Christmas gifts to its business partners, Schmalz donates to the German Cystic Fibrosis Association at the end of each year to support research and the advancement of therapy. It s all about patty cake at the Schmalz children s vacation program Blood drive at Schmalz 21

22 INVOLVEMENT IN INTEREST GROUPS AND NET- WORKS Schmalz is a member of various committees, interest groups, best-practice groups and networks. Since 2010, Schmalz has been a member of the Business Initiative for Sustainability (WIN) for the federal state of Baden-Württemberg. This also includes participation in the state government s advisory council for sustainable development and in the state s sustainability conference. Schmalz was one of the first companies to sign the WIN charter. Since 2010, Schmalz has been a member of the Companies for Climate Protection. This excellence initiative sponsored by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, the Federal Ministry of Economics and Technology and the German Chambers of Commerce and Industry (DIHK) honors companies for their climate protection efforts and operational energy efficiency. Wolfgang Schmalz (right) and Minister for the Environment Franz Untersteller sign the WIN charter. Schmalz has been part of the Wirtschaft pro Klima initiative since By publishing examples of best practices, the members provide valuable tips to other companies on how to implement climate and environmental protection measures. In 2016 Schmalz has initiated the Campus Schwarzwald in Freudenstadt together with other regional companies a unique merger between research and industry. In cooperation with the university of Stuttgart there will be a study program on master level as well as a teach and development lab for digitalization and energy efficiency in the production. Young talents get an excellent training in management, digitalization and sustainability. Milestone for the Campus Schwarzwald: Signing of the cooperation agreement with the university of Stuttgart Schmalz is involved in a wide range of networks. Schmalz also works closely with various institutes, for example the Fraunhofer Institute for Manufacturing Engineering and Automation (Fraunhofer IPA). The exchange of information and experience within these networks is especially beneficial for the development of new technologies and products. We maintain a number of cooperative education programs with high schools and universities, in which students work actively on projects within the company. Students thereby gain practical knowledge and have the change to apply the theory they are learning in their university courses. Dr. Kurt Schmalz (second from left) at the opening of the Future Work Lab at the Fraunhofer IPA 22

23 Social Commitment Measures and Projects in 2017 All around the Schmalz ecosystem, the company develops its measures and activities continuously in all target areas of sustainability. The energy efficiency is increased annually. Sustainable work is understood as a permanent process. In the reporting year 2017, a large number of projects were carried out to further complete the sustainability measures of Schmalz. Area of sustainability Economy Economy Measure Groundbreaking Ceremony for Office Building B3 and Value Stream Factory More growth in Glatten Opening of New Buildings Abroad Schmalz USA, Japan and India Implementation J. Schmalz GmbH continues to grow. Schmalz strengthened its Glatten site with a new office building and the expansion of production and logistics facilities. Schmalz opened three new buildings in New office and production spaces were established in Raleigh, USA, in Yokohama, Japan and in Pune, India. Economy Gesellschaft für Produktionssysteme GPS Internal start-up for Industry 4.0 Schmalz acquired GPS GmbH from Stuttgart as an internal start-up. It develops innovations, strategies, methods and tools for industrial production. Economy 100 Places for Industry 4.0 Award for successful digitalization solutions In December, Schmalz was awarded as one of 100 Places for Industry 4.0 in Baden-Württemberg by the Ministry of Economics of Baden-Württemberg. Schmalz received the award for its successful digitalization solutions. Economy Market Launch of ControlRoom Control and service app for vacuum components The new Schmalz app lets you install, parameterize and operate vacuum components easily from a table or smartphone. It reduces procurement costs and commissioning times and optimizes device servicing. Ecology Energy Storage Launch of the pilot facilities in Pfinztal, Germany Europe s largest redox flow battery storage system is developed at the Fraunhofer Institute in Pfinztal, Germany. Schmalz supplies the core of the system in the electrochemical converter units, or redox flow stacks. Ecology Bike Leasing Addition to the LIFE + program Schmalz expands its LIFE + program with a further component: By bike leasing the employees benefit of cheap conditions and currently help to save CO 2 emissions. Social issues Intergenerational Residential Complex Collaboration with the Glatten community There are plans to develop an intergenerational residential complex with an innovative design in collaboration with the community and other partners in Glatten. The complex is to provide various models of assistance to suit the different needs of its inhabitants. Social issues Bio Shopping Addition to the LIFE + program Bio shopping in new within the LIFE + program, too. Employees can order fresh bio products from regional farms. They deliver the products directly to Schmalz. Social issues Dual Partner Award Practical phases awarded at the Schmalz cooperative education program Recently, the Baden-Württemberg Cooperative State University honored particularly successful education programs. Schmalz was awarded the distinction in the category of Dual Partners from the Study Field of Commerce with up to 5,000 Employees. 23

24 An Award-Winning Approach to Success. J. Schmalz GmbH has received numerous awards in a variety of areas, extending from environmental protection to the company s excellent working environment. Our innovative products and process flows have also been recognized. Best Workplaces in Germany (2018) Awarded for the fifth time after 2004, 2009, 2012 and 2015 in the Great Place to Work competition 100 Places for Industry 4.0 in Baden-Württemberg (2017) Award from Allianz Industrie 4.0 for the Schmalz Control- Room control and service app Dual Partner Award (2017) Award from the Baden-Württemberg Cooperative State University for excellent practical phases in the cooperative education program German CSR Prize (2016) In recognition of the holistic approach to reducing the ecological footprint of vacuum technology products German Industry Innovation Award (2015) In recognition of the best innovation system Baden-Württemberg Security Award (2015) Award for IT emergency management Axia Award (2014, 2009) Awards for sustainable corporate management (2014) and outstanding human resources management (2009) Green Blue Energy Factory Award (2014) EU award for the generation of energy from renewable sources, the only GBE Demo Factory in all of Germany Climate Workshop 2.0 (2013) Trainee award for uncovering potential savings in the company VR Innovation Award (2010) Award for the development of the Schmalz wafer gripper SWG Excellent Knowledge Organisation (2009) Award for exemplary knowledge management among small and medium-sized companies 365 Landmarks in the Land of Ideas (2009) Recognition of the Schmalz ecological guided tour as a Selected Landmark of 2009 Socially Committed (2008) Award for social commitment in small and medium-sized companies European Solar Prize (2007) Award for owners or operators of systems for the utilization of renewable energy The Dr. Rudolf Eberle Prize (2006) Recognition of the innovative compact ejector X-Pump Ethics in Business (2005) Award for exemplary social and ecological commitment Ecological Manager of the Year (2004) Recognition of Dr. Kurt Schmalz and Wolfgang Schmalz as 2004 Ecological Managers of the Year BDI Environmental Prize and Green Week Award from the EU (2004) Award for commitment to environmental protection Schmalz 06/18 Article no Subject to technical changes without notice Best Assembly Idea (2011) Award for the innovative pick-by-shutter assembly workstation J. Schmalz GmbH Johannes-Schmalz-Str Glatten, Germany T: schmalz@schmalz.de