PROGRESS REPORT 2014
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1 PROGRESS REPORT FORTSCHRITTSBERICHT 1
2 HOW TO READ THIS REPORT We signed the Change-maker Manifesto in 2013 and in the year that followed we spared no effort in achieving our own goals and making our core business as sustainable as possible. For more information on the goals and measures we have adopted, please refer to our Changemaker Manifesto at The purpose of this report is to inform the reader of what we have achieved so far and what we are still working on. To help show the progress we have made, we use the following symbols: Target reached We are on the way Target is not yet reached For each commitment we define new goals. This report will also introduce you to two projects where we were able to significantly increase sustainability. We hope you enjoy the report and look forward to hearing from you and any questions, comments and constructive criticisms you may have at Attorney Colette Rückert-Hennen Chief Information, Branding and Personnel Officer, CIBPO FORTSCHRITTSBERICHT 2
3 COMMITMENT 1 WE ARE MAKING SUSTAINABILITY A TOP PRIORITY. Goal #1 To complete the systematic and company-wide adoption of sustainability principles in recruiting, management training, performance management and employee compensation by On a conceptual level this goal has already been achieved given that sustainability is an explicit part of the company s competency model. In terms of employee compensation, this means that, for example, sustainability goals are to be incorporated into the official objectives of all departments. Full implementation in each of our business sites is a continuous process and is expected to last until the end of We are adhering to this goal until FORTSCHRITTSBERICHT 3
4 COMMITMENT 2 WE ARE INTEGRATING SUSTAINABLE PRINCIPLES INTO OUR MANAGEMENT PROCESSES AND OUR ENTIRE VALUE CHAIN. Goal #1 Systematic accounting of environmental impact in all major company decisions (e.g. changes to products or processes) by conducting an environmental impact assessment based on a lifecycle analysis. A recommendation for the criteria catalog, a specific weight assigned to environmental impact in company decisions and a draft process for incorporating the environmental impact assessment have been developed. Because the various requirements have made standardization impractical, a user input screen has not been created. In 2015, the submitted recommendation is to be critically evaluated with the specialist departments and tested as a pilot in practice. FORTSCHRITTSBERICHT 4
5 COMMITMENT 3 WE ARE ACTIVELY INVOLVING OUR EMPLOYEES AND WANT TO AWAKEN THEIR INTEREST IN SUSTAINABILITY. Goal #1 A special intranet site on the subject of sustainability was created and launched in October. All employees from workers to experts can access the site to learn about sustainability at SolarWorld. It provides basic information on all important topics. In addition, the News Portal will be updated regularly (at least once every 3 months) with information on new developments (e.g., in the fall of information was added on SolarWorld s re-certification as a Green Brand, SolarWorld s improved performance in the Carbon Disclosure Project and the launch of the Sustainability intranet site). To adopt a more global approach for our local green teams in To this end green teams are to be given a shared vision and strategy and implement joint projects at their respective locations. The intention here is to continuously increase employee involvement. FORTSCHRITTSBERICHT 5
6 COMMITMENT 4 WE MINIMIZE THE USE OF NATURAL RESOURCES, CONTINUALLY IMPROVE OUR ENERGY EFFICIENCY AND LOGISTICS, AND ARE COMMITTED TO MEE- TING ELECTRICITY REQUIREMENTS THROUGH RENEWABLE ENERGY. Goal #1 We aimed to reduce the cumulative energy consumption (primary, in MJeq/Wp) of our products (= modules) by 15% from 2012 to 2020 as follows: from 21.6 MJeq/Wp (2012) to 18.4 MJeq/Wp (2020) Due to a major unforeseen process change, we managed to achieve 18.1 MJeq/ Wp by the end of 2013, which represents an 16% reduction. Goal #2 We aimed to reduce company-wide energy consumption (in kwh/ Wp) by 25% from 2012 to 2020 as follows: from 0.63 kwh/wp (2012) to 0.47 kwh/wp (2020) In 2013 we achieved 0.59 kwh/wp, which represents a 6% reduction. Goal #3 We aimed to reduce the company-wide water consumption (in m3/ MWp) by 10% from 2012 to 2020 as follows: from 2,253 m3/mwp (2012) to 2,028 m3/mwp (2020) In 2013 we achieved 2,958 m3/mwp, which represents a 31% reduction. Goal #4 We aimed to reduce company-wide wastewater production (in m3/ MWp) by 10% from 2012 to 2020 as follows: from 1,738 m3/mwp (2012) to 1,564 m3/mwp (2020) In 2013 we achieved 2,550 m3/mwp, which represents a 47% reduction. FORTSCHRITTSBERICHT 6
7 4 COMMITMENT WE MINIMIZE THE USE OF NATURAL RESOURCES, CONTINUALLY IMPROVE OUR ENERGY EFFICIENCY AND LOGISTICS, AND ARE COMMITTED TO MEE- TING ELECTRICITY REQUIREMENTS THROUGH RENEWABLE ENERGY. Goal #1 Our goal of reducing the cumulative energy consumption (primary, in MJeq/Wp) of our products (=modules) was achieved earlier than expected and has now been revised as follows: from 21.6 kg MJeq/Wp (2012) to 16.2 kg MJeq/Wp (2020) This represents a 25% reduction from the baseline year. Goal #2 The goal of reducing company-wide energy consumption (in kwh/wp) by 25% by 2020 remains in place. Goal #3 The goal of achieving a 10% reduction in company-wide water consumption (in m3/ MWp) by 2020 remains in place. Due to deteriorating values in 2013, we will take additional measures to achieve this goal by Goal #4 The goal of achieving a 10% reduction in company-wide wastewater production (in m3/ MWp) by 2020 remains in place. Due to deteriorating values in 2013, we will take additional measures to achieve this goal by FORTSCHRITTSBERICHT 7
8 COMMITMENT 5 WE ARE SIGNIFICANTLY REDUCING OUR POLLUTANT AND GREENHOUSE GAS EMISSIONS. Goal #1 We aimed to reduce greenhouse gas emissions throughout the company (based on the global warming potential (GWP) in kg CO2eq/Wp) by 15% from 2012 to 2020 as follows: from 0.45 kg CO2eq/Wp (2012) to 0.38 kg CO2eq/Wp (2020) Due to a major unforeseen process change, we managed to achieve 0.31 kg CO2eq/Wp by the end of 2013, which represents a 31% reduction in emissions. Goal #2 We aimed to reduce the global warming potential of our products (= modules) (in kg CO2eq/Wp) by 15% from 2012 to 2020 as follows: from 1.3 kg CO2eq/Wp (2012) to 1.1 kg CO2eq/Wp (2020) We were able to achieve this goal by the end of 2013 due to the aforementioned process change. Goal #3 We aimed to reduce average CO2 emissions from all new cars in the SolarWorld fleet of vehicles by 38% from 2012 to 2020 as follows: from 152 g CO2eq/km (average of all cars, 2012) to 95 g CO2eq/km (2020) In 2013 we achieved 130 g CO2eq/km, which is a reduction of 14%. FORTSCHRITTSBERICHT 8
9 COMMITMENT 5 WE ARE SIGNIFICANTLY REDUCING OUR POLLUTANT AND GREENHOUSE GAS EMISSIONS. Goal #1 Our goal of reducing company-wide greenhouse gas emissions (in regard to global warming potential (GWP) in kg CO2eq/Wp) has already been achieved and will therefore be revised as follows: from 0.45 kg CO2eq/Wp (2012) to 0.29 kg CO2eq/Wp (2020) This represents a 35% reduction from the baseline year. Goal #2 Our goal of reducing the global warming potential of our products (=modules) (in kg CO2eq/Wp) has already been achieved and will therefore be revised as follows: from 1.3 kg CO2eq/Wp (2012) to 0.98 kg CO2eq/Wp (2020) This represents a 25% reduction from the baseline year. Goal #3 We were unable to change vehicle selection in due to our reliance on rental vehicles. We will continue to lease vehicles as from 2015, but the goal shall remain in place until Goal#4 After joining the Pro Recycled Paper initiative, SolarWorld AG now uses printer and copy paper that is not only 100% recycled, but also purchased locally to avoid unnecessary shipping emissions. This measure not only preserves the environment, but also reduces costs. In 2015 we want to convert to 100% recycled printer and copy paper in our German subsidiaries and apply the same standard to stationary paper. FORTSCHRITTSBERICHT 9
10 COMMITMENT 6 WE ARE OPTIMIZING OUR MATERIAL CYCLES AND PREVENTING WASTE. Goal #1 We aimed to reduce company-wide waste production (in t/mwp) by 10% from 2012 to 2020 as follows: from 26.9 t/mwp (2012) to 24.2 t/mwp (2020) In 2013 we achieved 25.5 t/mwp, which is a reduction of 5%. The goal of achieving a 10% reduction in company-wide waste production (in t/mwp) by 2020 remains in place. FORTSCHRITTSBERICHT 10
11 COMMITMENT 7 WE PLACE GREAT VALUE ON OUR SOCIAL STANDARDS AND THEREFORE EXCEED INDUSTRY OR LEGAL STANDARDS. Goal #1 We plan on introducing an employee compensation system referred to as the cafeteria plan for the entire company. It is designed according to the local needs of employees. A precondition of achieving this goal is to discuss the provisions of the cafeteria plan with the works council and reach a mutual agreement. At that point the plan will be implemented on a company-wide basis. In a works council in Bonn and one at the new business site in Arnstadt were established in addition to the works council in Freiberg. The process of agreeing on company-wide solutions is becoming significantly more complex due to the fact that coordination with all three works councils takes place on an individual basis. For this reason we were unable to achieve this goal in. Due to the ongoing restructuring process, we intend to achieve this goal by FORTSCHRITTSBERICHT 11
12 COMMITMENT 8 WE BIND OUR SUPPLIERS AND PARTNERS TO SUSTAINABLE PRINCIPLES. Goal #1 To improve the verifiability of supplier performance with respect to sustainability, we intended to add specific risk factors for each supplier category in our internal audits in. The first step in achieving this goal is performing a risk analysis. The search for suitable suppliers led to the realization that comprehensive and ongoing risk assessment provided more meaningful results. In the audit questionnaire for supplier approval was expanded to include criteria related to health, safety and the environment. Our goal for 2015 is to evaluate the results of the risk analysis and, if necessary, expand the audit questionnaire to include additional risk factors. FORTSCHRITTSBERICHT 12
13 COMMITMENT 9 WE ACTIVELY DEMAND AND SUPPORT SUSTAINABLE BEHAVIOR WITH OUR CUSTOMERS AND SOCIETAL CONTACT PARTNERS. WE STRIVE TO GIVE OUR RANGE OF PRODUCTS AN INCREASINGLY SUSTAINABLE ORIENTATI- ON. Goal #1 To raise awareness among the main target groups for energy saving, energy storage and power grid relief, we introduced the Suntrol emanager* (hardware) in and installed a variety of useful applications on it (e.g., an app for connecting to the battery storage). In addition, we created a load profile for each main user group that focused on energy-intensive businesses (case studies). A brochure will be created for commercial customers based on these studies. To raise awareness for solar solutions among architects, we formulated a plan and introduced the first implementation steps: the availability of architect workshops. These workshops, which were held at trade shows, have been officially recognized by the Chamber of Architects in North Rhine Westphalia and Hesse. Goal #1 Marketing of Suntrol myhome: The goal is to increase the self-consumption of power among customers (e.g., via remote device switching), provide a visualization of power consumption and identify power guzzlers. The CO2 savings achieved in this manner will be displayed to the customer and converted to distance travelled in kilometers for more clarity. Goal #2 Information for customers via solar power calculator: The benefits to the customer should be shown in a clearer manner, including the effects of changes to the rate of self-consumption. Goal #3 Market introduction and more extensive marketing of Sunpac Lion: The intention here is to increase the self-consumption of power among customers by means of a battery storage unit. FORTSCHRITTSBERICHT 13
14 COMMITMENT 10 WE COMMUNICATE OUR ADVANCES AND CHALLENGES TRANSPARENTLY, HONESTLY AND REGULARLY. Goal #1 Reporting was completed in March based on the G4 Sustainability Reporting Guidelines published in 2013 by the Global Reporting Initiative. In the process we collected new operating figures (e.g., with respect to the supplier chain), expanded the materiality analysis and facilitated stakeholder dialog on an international level. These measures were implemented in full. The next report should be released by the end of March The high G4 Comprehensive standard set by the Global Reporting Initiative will be maintained. The validity of the materiality analysis needs to be improved: Data should be collected with the help of an Online Portal. The survey of our pool of experts should also quantitatively and systematically cover all issues relating to the materiality analysis. FORTSCHRITTSBERICHT 14
15 OUR FLAGSHIP PROJECT SOLAR2WORLD SOLAR2WORLD SUPPORTS A RADIOSTATION IN UGANDA UNDER THE NAME SOLAR2WORLD, SOLARWORLD PROVIDES FUNDING FOR AID PROJECTS IN EMERGING AND DEVELOPING COUNTRIES. REGIONAL DEVELOPMENT IS AT THE HEART OF THE COMPANY S COMMITMENT, WITH A CLEAR FOCUS ON AFRICA. OUR OFF-GRID SOLAR POWER SOLUTIONS PROVIDED MODELS FOR SUSTAINABLE ECONOMIC DEVELOPMENT AND SELF-SUFFICIENT ENERGY SUPPLY. The radio station Radio WA (Our Radio) in the Lira Diocese in northern Uganda will be operated with additional solar power from SolarWorld in the future. As part of the Solar2World program, SolarWorld provides a total of 20 kwp to Radio WA. This Catholic radio station focuses on the approximately 30,000 children who have been abducted by the rebels from the Lord s Resistance Army (LRA) and used as child soldiers. Due to the atrocities that they have been forced to commit by the rebels, these children are usually afraid to return to homes where often they FORTSCHRITTSBERICHT 15
16 OUR FLAGSHIP PROJECT SOLAR2WORLD have injured or even killed their own family members. Radio WA wants to encourage these children to flee their captors and return to their families. The radio station also broadcasts news and focuses on issues such as education, health, development, peace, the environment, justice and human rights. In September 2002 the rebels attacked and set fire to the station. The transmission tower, however, survived the attack and Radio WA was able to continue broadcasting with a range of 200 kilometers. Thanks to donations, the radio station was rebuilt in Previously the station was supplied with grid power, yet constant power outages resulted in the use of diesel generators. Even with the generators the supply of power was not always available, which meant that the station had to shut down occasionally. The power supply shortage will now be eliminated with a solar power system. The Catholic Dreikönigsaktion in Austria provided two-thirds of the funding necessary to complete this project. Technical consulting is provided by BBM Austria (procurement services of the Missionary Transport Charity). FORTSCHRITTSBERICHT 16
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