ReInventing Light for 110 Years. Sustainability at OSRAM

Transcription

1 ReInventing Light for 110 Years Sustainability at OSRAM

2 Light is sustainable Sustainability is an integral part of our corporate culture. The corporate values innovative respectful entrepreneurial define our attitude in dealing with one another. Dr. Olaf Berlien, CEO OSRAM Licht AG As a leading provider in the global lighting industry, our strategic decisions are based on an integrated concept consisting of the three pillars of sustainability: economy, environment and society. These provide a holistic framework for our thoughts and actions.

3 Economy, environment, society The basis for our strategic decisions is the integrated concept of the three pillars of sustainability economy, environment, society. Economy Environment Society Corporate Governance OSRAM strives to ensure that its corporate governance strengthens its corporate values responsibly, transparently and sustainably. Innovation Management OSRAM works continuously on its ability to innovate. Research and development (R & D) are the fundamental cornerstones for continued sustainability. Operative & Brand Excellence As a leading lighting manufacturer, OSRAM offers a consistently high brand and quality promise. Product Responsibility OSRAM makes an active contribution to environmental protection with innovative products for sustainable lighting solutions, ranging from components and luminaires to complete light management systems. Operative Eco-efficiency Environmentally-friendly production methods support the achievement of self-imposed environmental protection objectives. Climate Strategy OSRAM is committed to the ambitious targets of the EU which call for an absolute reduction in CO 2 emissions, water consumption and waste generation by 20 percent in each case. Employees OSRAM assumes responsibility as an employer that respects human rights and offers fair working conditions. The health and safety of employees at their workplace is a high priority for OSRAM. Commitment As part of our social commitment, OSRAM promotes a variety of unique initiatives relating to education, science, art and culture, and supports social and humanitarian projects. The success of our sustainability activities was again confirmed by external agencies in For example, RobecoSAM, the investment specialist focused on sustainability investing, honored us again with the 2017 Bronze Class Award and inclusion in their 2017 Sustainability Yearbook. We are listed on the Dow Jones Sustainability Index (DJSI) World, the FTSE4Good Index and the STOXX Global ESG Leaders Index. We also retained our oekom Prime Status which was granted in 2015.

4 The path of light... Our sustainable approach can best be demonstrated along the value added chain.* UN Global Compact OSRAM has been a member of the UN Global Compact since 2005 and as such publishes annual progress reports on its sustainable processes and projects. Sustainable Development Goals OSRAM is committed to the 17 Sustainable Development Goals of the United Nations which include concrete measures to be taken at global and local level by Industry 4.0 The Industry 4.0 project was initiated by the German government to prepare the German economy for the digitization of processes. This is already in place at the OSRAM plant in Berlin. Two projects, one for monitoring process and production data and one for monitoring maintenance and repair jobs, have already been implemented. The use of tablets and smartphones has resulted in new flexible structures for the workforce. These projects have helped us to improve our productivity and adapt processes more quickly to changes on the market. Business Conduct and Compliance Compliance with current laws and corporate guidelines is a matter of course for OSRAM and is based on the Prevent Detect React principle. * All figures relate to the businesses of OSRAM Licht AG (excluding LEDVANCE GmbH), except supplier codices, energy efficiency as well as data regarding energy and water use, waste

5 R & D locations China, Germany, Hong Kong, India, Italy, Canada, Malaysia, Slovakia, USA Research & development Diamond initiative With its Diamond technology, innovation and growth initiative, OSRAM intends to invest around 3 billion euros in sustainable growth by the year A cumulative figure of 2 billion euros will be provided for R & D and a further 1 billion euros for expanding capacity in the semiconductor sector. 334 million was invested in R & D in fiscal That corresponds to 8.8 percent of group turnover. 16,600 Patents and patent applications commercial property rights such as patents, brands and know-how are of particular importance in the lighting industry. The large number of patents reflects our ongoing powers of innovation. 91 % of R & D expenditure was invested in LED technology. That corresponds to around 304 million euros employees are working in the area of R & D. That corresponds to 9.7 percent of all employees

6 RoHS Directive on the restriction of the use of certain hazardous substances OSRAM is committed to complying with this directive for systematically reducing hazardous substances such as lead, cadmium and mercury in its products. The aim is to protect employees and the environment and to make products easier to recycle. Rare earths research project White LEDs contain a large proportion of rare earth metals which are time-consuming and expensive to obtain and which have limited availability. The Opto Semiconductors business unit, together with experts from the Schwabmünchen plant, the Saarland University and BASF, is now conducting research into alternatives for these metals. The aim of the project is to find phosphors that are more affordable and more eco-friendly. Raw materials 30 % Before luminaires are painted in our Traunreut plant the individual parts have to be thoroughly cleaned. In cooperation with partners, we have now succeeded in improving the cleaning process to such an extent that there is virtually no further need to heat up the process water. Energy consumption in the paint shop has been reduced by 30 percent. This saves up to 120 tonnes of CO 2 emissions. Conflict minerals The entire OSRAM Group has set itself the aim for 2017 of creating complete transparency in the origin of potential conflict minerals.

7 CSR audits OSRAM has extended its regular supplier audits to include corporate social responsibility (CSR) aspects. These aspects are reviewed annually in representative random samples. In addition to self-reporting, suppliers are checked by an external audit company. 684 Recently signed supplier codices OSRAM covers 98 percent of the procurement volume with these.* Suppliers Supplier portal OSRAM places high requirements on all suppliers. These are defined for each material field and are checked as part of the tendering process. They are clearly presented on the OSRAM supplier portal. Code of conduct for suppliers OSRAM has a code of conduct in compliance with international standards and conventions which has to be signed by all suppliers worldwide.

8 Certification Award for cogeneration plant The OSRAM plant in Eichstätt, Germany, received an award in 2016 for its cogeneration plant. The plant was described by the Federal German Cogeneration Association (B.KWK) as exemplary and pioneering. Energy at the site is used efficiently, reducing CO 2 emissions. ISO All OSRAM production sites. ISO All OSRAM European production sites. ISO 9001 All OSRAM production and development sites. ISO TS All sites that supply automotive customers. OHSAS Headquarters and Asian production sites excl. Panyu; Italy: Bergamo. SA8000 India: Headquarters, design center, production sites. Production EHS guidelines Requirements governing health & safety at work are defined in OSRAM s EHS Guidelines (Environmental Protection, Health and Safety) and are binding throughout the world. OSRAM is committed to meeting the EU targets of achieving 20 percent savings in CO 2 emissions, water use and waste by 2020.

9 12 % less partially recyclable and 9 percent less non-recyclable waste (i. e. waste for disposal) in fiscal countries in which OSRAM is active. Sales Region for Region OSRAM operates on a regional basis that enables customers to be supplied locally more rapidly, with greater flexibility and more in line with their requirements. The Digital Systems business unit exemplifies this approach. Right now production facilities are being built in Plovdiv, Bulgaria, for Europe and expanded in Mexico for the Americas region. Energy efficiency Thanks to the OSRAM s Energy Efficiency Project which is being implemented worldwide in our plants, global energy productivity was increased by 3 percent in fiscal Standardized reporting to DIN EN OSRAM uses the EN method to calculate greenhouse gas emissions for transport logistics. The applied criteria must be fulfilled by all parties, and these parties are obliged to continually reduce their CO 2 emissions. All the recorded data is collated and published in monthly reports. Employees 2,300 are active in sales, corresponding to 9.3 percent of all employees

10 Light means quality of life Light that adapts to natural rhythms, in other words blue light for periods of activity and warm reddish light for periods of relaxation, has a positive effect on well-being. OSRAM is involved in various research projects relating to human centric lighting. The Memory Center run by St. Augustinus Kliniken in Neuss is conducting research into the relationship be-tween biologically effective lighting and positive therapeutic outcomes. OSRAM experts developed a human centric lighting concept that uses a tablet and app to deliver the right light at the right time. Recycling OSRAM achieves a high proportion of recyclable materials by paying attention to the concept of recycling right from the product development stage. Use & disposal

11 En.lighten and U4E (United for Efficiency) The UNEP initiative en.lighten was established in 2009 as a public/private partnership be tween UNEP and industry with OSRAM as one of the founding members. The initiative is working towards a global transition to more ecologically sustainable and energyefficient lighting technologies. Since 2016 the U4E initiative has added further aspects to en.lighten, again with the aim of supporting cost-effective ways to reduce power consumption and to slow down climate change. German Red Cross OSRAM has been a partner of the German Red Cross since October 1, Cooperation focuses on disaster prevention, disaster relief and reconstruction.... leads us on Global challenges such as urbanization, climate change, shortage of resources and demographic changes require sustainable product solutions. Light is a rapid and effective lever here. Artificial lighting is responsible for around 15 percent of worldwide power consumption and therefore for almost 5 percent of greenhouse gas emissions. The lighting industry therefore plays an important role in tackling these challenges. A worldwide switch to energy-efficient lighting could reduce CO 2 emissions by 580 million tonnes per year and save approximately 125 billion euros. In addition to improved efficiency and cost benefits, sustainable lighting offers many other advantages. Light protects, energizes, provides comfort and improves our quality of life. OSRAM offers a wide range of innovative products for sustainable lighting solutions, from components and luminaires to light management systems. Developing new solutions for the future, creating sustainable value for our customers and the environment, and introducing them to the fascination of light that is what inspires us.

12 OSRAM Licht AG Group Sustainability Christina Schmöe Marcel-Breuer-Strasse Munich Germany For more information on sustainability at OSRAM go to Contact: sustainability@osram.com Concept and layout: Nur Baute Berlin GmbH Printed on RecyStar Polar. The paper is FSC -certified and carries the labels Blauer Engel, EU Ecolabel, as well as Nordic Swan Ecolabel.