p\01»communication on Progress

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1 p\01»communication on Progress ALECTIA 2013

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3 Contents p\03 05 CEO statement 06 Our approach to CSR 08 Key Activities in The 10 principles of the UN Global Compact 1-2 Human Rights, 3-6 Labour, 7-9 Environment, 10 Anticorruption

4 p\04 Axeltorv EjendomsSelskabet Norden is building a new and spectacular building with space for cafés, shops and offices. ALECTIA is acting as engineering consultant for detailed design, mechanical and electrical services, indoor climate and energy performance. The building is designed to meet future requirements for energy performance. Lundbeck energy savings Since 2010, Lundbeck has been cooperating with ALECTIA s specialists in pharmaceutical technology and energy optimization. Ever since, the company has achieved its goal of reducing its global energy consumption by 10% each year. ALECTIA has carried out energy screenings and implemented several energy projects at Lundbeck s Danish sites in Valby and Lumsås, which have led to large energy savings.

5 CEO statement ALECTIA is among the leading engineering and consultancy companies in Denmark, with clients and projects around the world. Taking our vision Masterminding Sustainable Progress as our starting point, we strive to deliver innovative and sustainable solutions that generate progress and long-term results for our customers. We joined the UN Global Compact in 2009 and have since been working on making social responsibility an integrated part of our consultancy and work. Our approach to CSR is based on a fundamental respect for the internationally acknowledged principles defined by the UN Global Compact. Over the next years we will strive to create greater transparency in the goals we set out for our responsibility as well as in the results we achieve based on the principles of human and employee rights, the climate and anti-corruption. Jesper Mailind CEO, ALECTIA p\05»we joined the UN Global Compact in 2009 and have since been working on making social responsibility an integrated part of our consultancy and work.

6 Our approach to CSR p\06 The sustainable development of society is one of the cornerstones of our work in ALECTIA. We wish to contribute to the development of our clients businesses and the society we are a part of by developing and delivering the best and most holistic and sustainable methods and solutions. We express this ambition in our vision statement: Masterminding Sustainable Progress. By advising on nature, energy, water, environment, indoor climate and occupational health and safety we have a unique possibility for affecting the sustainable development of society. Together with our clients we develop sustainable solutions that are implemented through crossdisciplinary cooperation between ALECTIA s four business divisions.»by advising on nature, energy, water, environment, indoor climate and occupational health and safety we have a unique possibility for affecting the sustainable development of society. A number of ALECTIA employees contribute to sharing their knowledge of sustainability by assuming positions as teachers, instructors and examiners at technical schools and universities, by giving lectures at Danish and international conferences and by publishing technical literature and articles in trade journals. Additionally, we contribute to the development of norms and sustainability certification systems in the building industry. As a company, we wish to take responsibility for our actions. We work with climate and energy management in structured ways and collect data of our own energy consumption, which is documented in our climate accounts following the standards of The Greenhouse Gas Protocol (GHG) Initiative. Additionally, we work continuously on strengthening our work-life balance and wellbeing of our employees. In the future, we will work on adapting our CSR work to the UN Guiding Principles on Business and Human Rights, just as we will develop politics and management processes that follow to the international standards.

7 Omkostningseffektivitet Lav Høj 0 Meter Groundwater mapping ALECTIA have been awarded a number of new contracts as part of the Danish Nature Agency s nationwide groundwater mapping project. We help the Danish Nature Agency s nature management units in e.g. Ribe, West Jutland, Storstrøm and Roskilde by determining where the groundwater reservoirs are vulnerable to pollution from the earth s surface as well as to naturally occurring substances. Wellhead protection areas (BNBO) Wellhead protection areas (BNBO) have also been a particular area of investment in We have helped a number of municipalities apply for BNBO funds and define the efforts needed to protect our groundwater. As a part of our consultancy services we carry out financial calculations of the cost of these protection efforts. This gives our customers a strong foundation from which to budget necessary activities. p\07

8 Key activities in 2013 p\08 THE ALECTIA FOUNDATION NEW WAY OF MEASURING CLIENT SATISFACTION Being a knowledge company, maintaining close links to research environments is an important part of our strategy and corporate social responsibility. ALECTIA is owned by the ALECTIA Foundation which has initiated ALECTIA s business research programme, through which an average of four PhD students are always connected to ALECTIA A/S. In 2013 we supported four PhD projects: Integration of Health & Safety Knowledge in Design Processes Optimised Hospital Design Stability of Thin-shell Structures in Metal Digital modelling of the Ideal Plastic Loadbearing Capacity of Concrete Slab Structures In 2013, our annual customer satisfaction analysis was replaced by focused customer satisfaction surveys, which are conducted on a regular basis for individual projects. We are very happy with the new way of measuring our customer satisfaction, as it gives us frequent and current input for improving our projects. The surveys provide valuable starting points for dialogue with our clients and help us to reconcile expectations and identify the development and investment areas which are most important to the individual client. The results of the customer satisfaction surveys for 2013 show improvement compared to 2012, and we maintained our general goal of achieving an average customer satisfaction rate above 4 on a 5-point scale. The industrial PhD projects are all designed to bring the newest knowledge into our consultancy and contribute to strengthening our business and competitiveness. The knowledge generated from these projects is used in our work, meaning that our investments in the PhD projects generate value for the students, ALECTIA, our customers and society. We have a longstanding tradition of employing our industrial PhD students after the completion of their projects, and we currently have over 25 fully-qualified employees with a PhD.

9 RETHINK WATER THE WATER SUPPLY OF TOMORROW p\09 Globally, the food and drink industries use more than 60 km³ of water annually, and the anticipated investments in water and wastewater technology is expected to increase from USD 3.3 billion in 2011 to USD 6 billion in Hence it is more important than ever to increase water efficiency in the industry, both in Denmark and abroad. We have joined the Rethink Water project, which is working to raise awareness among the global food and drinks industry of the water expertise at Danish consultancy companies.»globally, the food and drink industries use more than 60 km³ of water annually, and the anticipated investments in water and wastewater technology is expected to increase from USD 3.3 billion in 2011 to USD 6 billion in The biggest development project for drinking water in Danish history became a reality when the Danish Ministry of the Environment allocated DKK 13 million to support the The Water Supply of Tomorrow project in The project will safeguard Danish drinking water for the future and create international awareness of Danish water technologies. ALECTIA is a central stakeholder in the project and will participate in developing a tool for handling an intelligent renovation strategy for the water supply system, among other things.

10 p\10 Documented drinking water safety We help utility companies maintain the safety levels needed for supplying high-quality drinking water. We solve these assignments through a close interdisciplinary cooperation between our water experts and process consultants to ensure that our customers receive wellimplemented, efficient and live systems for ensuring documented drinking water safety. Esbjerg New Water Supply A new water supply in Esbjerg will set the future standards for sustainable water supplies. Special attention is given to securing the supply and drinking water safety as well as occupational health and safety for the employees.

11 The 10 principles of the UN Global Compact p\11 The UN Global Compact s 10 principles a set of principles in the areas of human rights, labour standards, the environment and anti-corruption enjoy universal consensus. At ALECTIA, we want to embrace, support and enact these principles.

12 Human rights p\12 FOCUS ON THE WELL-BEING OF OUR EMPLOYEES 1-2 PRINCIPLE 1 BUSINESSES SHOULD SUPPORT AND RESPECT THE PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS; AND PRINCIPLE 2 MAKE SURE THAT THEY ARE NOT COMPLICIT IN HUMAN RIGHTS ABUSES. ALECTIA is Denmark s leading advisor on occupational health and safety a position which makes demands on our internal efforts in this area. We give special attention to creating a sensible work-life balance as well as to the well-being, productivity and commitment of our employees. In 2013 our annual employee satisfaction survey followed up on the internal analysis carried out in 2012 under the headline Wellbeing, Energy and Productivity. In the employee satisfaction survey for 2013 we followed up on the focus areas which had been identified in 2012, and we have prepared the ground for the management to follow up by using our Well-being Compass.»We give special attention to creating a sensible work-life balance as well as to the well-being, productivity and commitment of our employees.

13 PERFORMANCE MANAGEMENT AND LEADERSHIP TRAINING LAUNCH OF THE HEALTH & SAFETY BAROMETER p\13 At ALECTIA, we use Performance Management as a leadership tool to operationalise our strategies, values and financial targets. In 2013, we have continued our work with Performance Management to ensure a close link between ALECTIA s overall strategy and the personal goals of individual employees. Our approach to Performance Management allows us to prioritize the efforts and goals for all employees and focus on the development of our managers and employees. To improve our managers ability to utilise the Performance Management system, we will focus on their abilities to execute so that general plans become more suitable to the individual employees as well as more user-friendly. One of the ways we will achieve this is through managerial training focusing on the manager s role in their day-to-day leadership in In 2013, ALECTIA presented The Health & Safety Barometer which will become an annual nationwide survey that follows trends in the Danish labour market and the development of the most important resources available to Danish businesses: the employees. With the Health & Safety Barometer, we want to contribute to public debate and create awareness of national health and safety issues and hence help improve the occupational health and safety conditions of Danish workplaces in both the private and public sectors. We use the results of the survey to strengthen our own consulting services related to leadership, health and safety. Futhermore, we use the results to disseminate significant points and tendencies such as the fact that stress is one of the three biggest working environment challenges in Denmark in 2013 through Danish news media, blogs and our TankOp! conferences. HEALTH AND SAFETY ON THE PUBLIC AGENDA To put occupational health and safety on the public agenda and give our clients and partners inspiration for improving their work environments and ensuring that they live up to current rules and regulations, we continued our TankOp! conferences with topics on leadership, health and safety in Since we launched the TankOp! initiative in 2012, we have seen an overwhelming interest in the conferences. The first seminars in 2014 focus on indoor climate, sedentary work and the middle management s responsibility for the working environment. ALECTIA s Occupational Health & Safety division is certified to OHSAS for occupational health and safety.

14 Labour rights p\14 DIVERSITY 3-6 PRINCIPLE 3 BUSINESSES SHOULD UPHOLD THE FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING; In accordance with the recommendations on diversity in the supervisory board and management as well as the rules in the Danish Companies Act, ALECTIA has prepared goals and policies for ensuring diversity in the supervisory board and management, including gender distribution. The proportion of women in management positions at the end of 2013: PRINCIPLE 4 THE ELIMINATION OF ALL FORMS OF FORCED AND COMPULSORY LABOUR; PRINCIPLE 5 THE EFFECTIVE ABOLITION OF CHILD LABOUR; AND PRINCIPLE 6 THE ELIMINATION OF DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION. Supervisory board members elected by the Annual General Meeting: 25% Senior Management: 29 % All managers: 20 % A number of activities are planned for 2014 concerning recruitment and talent development which are expected to increase the number of women in management team within the next three years. ALECTIA has a zero tolerance policy in relation to discrimination and harassment. NEW STRUCTURE FOR THE SAFETY ORGANIZATION A central part of ALECTIA s strategy is to be an attractive workplace in which our employees thrive and develop. In order to ensure that work on ensuring the safety at the workplace is prioritised at all ALECTIA locations, we have launched a new structure for ALECTIA s safety organization in The new safety organization was launched to enhance both the working environment and the cooperation between ALECTIA s senior management and our employees.

15 Environment IT p\ PRINCIPLE 7 BUSINESSES SHOULD SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES; PRINCIPLE 8 UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY; AND All ALECTIA workplaces are equipped with personal video conference equipment, just as many of our meeting rooms are equipped with video conference equipment. This reduces unnecessary travel time, which benefits our employees private lives while minimizing our greenhouse gas emissions. In 2013 we have carried out a structural analysis of our IT equipment, and we are still identifying possibilities for optimizing and consolidating our structure, for instance through more cloud-based solutions and reduced server operation. PRINCIPLE 9 ENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES. CLIMATE AND ENERGY MANAGEMENT We work on climate and energy management in a structured manner. We gather data and analyze the consumption of electricity, heat and water in the buildings where we have our offices, and our climate accounts are prepared in accordance with the standards of The Greenhouse Gas Protocol (GHG) Initiative. One of the largest solar cell facilities in northern Europe is installed on the roof of our Virum offices, providing power corresponding to 24% of the combined electricity consumption for the offices.

16 Environment (continued) p\16 Greenhouse Gas Emissions (tcoe) % change 2012 to 2013 Transport Diesel car (average) 117,5 84,1 97,4 15,9% Petrol car (average) 424,2 258,3 257,5-0,3% Scope 1 emissions 541,7 342,4 354,9 3,7% District heating Denmark mix 323,4 260,2 245,6-5,6% Electricity Denmark 125% 565,3 382,1 369,2-3,4% Scope 2 emissions 797,7 642,3 614,8-4,3% Other travel Bus regional/national Train (Nordic) Waste Waste, incinerated 4,5 Materials & products Water, ground (UK) 0,9 1,3 1,3 0,8% Scope 3 emissions 5,5 1,3 1,3 0,8% Total emissions (tco2e) 1344,8 985,9 971,1-1,5% Percentage change 26,7% 1,5% Total emissions (tco2e) , ,9 971,

17 Key Performance Indicators % change 2012 to 2013 Greenhouse gas emissions per full-time employee / tco2e/fte 1,9 1,3 1,3-1,5% Energy consumption per full-time employee / MWh/FTE 8,5 7,0 6,8-2,5% p\17 Greenhouse gas emissions per full-time employee (tco2e/fte) 2,0 1,5 1,9 1,0 1,3 1,3 0, Energy consumption per full-time employee / MWh/FTE , ,0 6,

18 Anti-corruption p\18 BUSINESS INTEGRITY MANAGEMENT 10 PRINCIPLE 10 BUSINESSES SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION AND BRIBERY. At ALECTIA we take anti-corruption very seriously, and we have formulated a policy based on Danish legislation concerning the nature, receipt and payment of bribes. The policy outlines the precautions we want our employees to take in distinguishing between acceptable gifts in connection with occasions such as anniversaries, retirements, etc. on the one hand and bribes on the other. When in doubt, employees are urged to consult with their immediate superior to avoid involvement in issues relating to corruption, money laundering, etc. In the future, we will work intently with Responsible Supply Chain Management to make sure that we uphold our commitment both to our vision of being a sustainable company and to integrating a strong CSR management throughout our business enterprise, including in our activities with customers and suppliers. In 2014, we will sharpen our policy and guiding tools as a consequence of our increasing international engagement to make sure that we continue to uphold important anti-corruption principles.»in 2014, we will sharpen our policy and guiding tools as a consequence of our increasing international engagement to make sure that we continue to uphold important anti-corruption principles.

19 p\19 New refrigeration system for the Copenhagen Meatpacking District In 2013, we have helped several industrial businesses to achieve a more sustainable production by identifying and implementing energy-saving solutions and initiatives. For instance, we were assigned the reconstruction of the central cooling facility in the Copenhagen Meatpacking District to ensure the tenants a more reliable and environmentally friendly cooling system. Climate adaptation and protection against floods Part of our work is to find solutions to help nature and civilization co-exist. For instance, we have carried out a number of draft projects on climate adaptation for Aabenraa Municipality to protect the city of Aabenraa from floods. In connection with a flood in one of Danfoss production areas, we have similarly helped identify the risk of future floods.

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22 ALECTIA A/S Teknikerbyen Virum linkedin.com/company/alectia alectia.com