INTRODUCTION. In 2013 the company initiated the collection of environmental data. Monthly data is collected on energy and waste recycled and disposed.
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1 ANNUAL CSR REPORT 2014
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3 INTRODUCTION TELEPLAN ANNUAL CSR REPORT 2014 Teleplan provides integrated end-to-end after-market supply chain service solutions for the computer, communications and consumer electronics industries. Lifecycle care ranges from simple manual repairs to highly sophisticated technological and electronic hardware and software solutions from a suite of six core service segments. 1 Headquartered in Amsterdam / Schiphol, the Netherlands, Teleplan supports customers from more than 90 countries and operates from service center locations in Europe, North America and Asia Pacific with some 5,000 employees. Environmental and sustainable aspects influence Teleplan s operations. Teleplan has a vital role in mitigating the environmental impacts of electronic devices through the provision of repair services and, in the instance when a repair cannot be made, the recovery, reuse, recycling or safe disposal of components and materials. Leading brands are looking for partners who add value and provide efficient and cost-effective services whilst maintaining strong ethical and sustainable practices. Teleplan enables its customers to manage faulty, damaged and waste products thereby prolonging the life of the product. Teleplan has identified the environmental and social aspects of its business. Principally these are: 1. The health and safety of our people and the facilities in which they work 2. Conducting our business with the highest ethical standards 3. Supporting the communities in which we operate 4. The recruitment, employment, training and development of some 5,000 people across multiple sites and geographies 5. The use of energy in the heating / cooling and lighting of facilities and the operation of test and repair equipment 6. The recovery, reuse, recycling and disposal of waste 7. The disposal of hazardous spare parts and substances such as batteries and florescent bulbs. Teleplan manages these impacts through systems and procedures which are integral to the day-to-day management of the business. In line with this approach, the company is working towards certification to the environmental standard ISO at each of its service centers. Teleplan has twelve locations with ISO certification. In 2013 the company initiated the collection of environmental data. Monthly data is collected on energy and waste recycled and disposed. Teleplan s Management Board agrees to objectives and annual targets to ensure that the social and environmental aspects of the business are managed appropriately. A report on progress towards the achievement of these targets is made to the Management Board twice a year. The annual CSR report is published on Teleplan s website.
4 EXCELLENT REDUCTIONS IN ENERGY CONSUMPTION CONTRIBUTE TO OUR CSR OBJECTIVES 2 Electricity consumption decreased by 9 % in 2014 to 45,793 MW/h and natural gas consumption decreased 22 % to 272K/m 3, as a result of energy management activities and a warmer winter in Europe. Investment in energy efficient lighting was made at one service center and several facilities improved alignment of energy usage to working hours. Employee awareness programs were established in many service centers to encourage turning off of equipment when not in use. 60,000 50,000 40,000 Electricity Consumption (MWh) MHw 30,000 20,000 10,000 EMEA APAC AMER Natural Gas Consumption (meters 3) 400, , ,000 meters 3 250, , , ,000 EMEA APAC AMER 50,
5 SIGNIFICANT REDUCTION IN WASTE GENERATION CONTRIBUTE TO OUR CSR TARGETS TELEPLAN ANNUAL CSR REPORT 2014 Teleplan has established programs to recover, reuse and recycle electronic waste. Other types of waste include cardboard and paper, metals and plastics all of which are managed through recycling programs. 3 In 2014, Teleplan recycled over 6.5 metric tons of its own and customer-owned materials, parts and equipment. The overall recycling rate was 89 % which is in line with the industry standard. Teleplan is also following regional standards such as WEEE regulations in the EMEA region. Waste Streams Recycled 60 % 50 % 40 % 30 % 20 % 10 % 0 % Computer equipment/ e-waste Paper and cardboard Plastic Metal Wood (pallets) Batteries Other: Aluminum cans Print/toner cartridges
6 ENCOURAGING TALENT DEVELOPMENT DRIVES BUSINESS PERFORMANCE 4 Teleplan employs some 5,000 people across multiple service centers and geographies. The recruitment, employment, training and development, health, safety and well being of these employees are integral to Teleplan s value, culture and the prosperity and success of the business. Teleplan is committed to developing and maintaining a workplace and working environment which contributes to high quality business performance and operational excellence, in which employees are treated fairly and with respect and have the opportunity to develop and prosper. The after sales service and supply chain industry in which Teleplan operates is highly competitive, fast changing and demanding. Talented leadership and high performing individuals and teams are critical to the performance of the business. Teleplan places a strong emphasis on further development and continuous learning. Employees are encouraged to take up training opportunities which are available through a variety of channels including e-learning, on-the-job learning and coaching. Individual performance and progress are managed and measured through a performance review process undertaken between an employee and their line manager and for those with management responsibilities 360 degree feedback mechanisms. In 2014 Teleplan conducted its regular employee survey across the organization to gauge employees satisfaction on a number of issues, with a particular emphasis on determining the overall climate of the organization. Some 3,500 employees were invited by or promotional posters in the service centers to complete the online survey, which was translated into 7 languages and made accessible using computer kiosks. Teleplan achieved a satisfaction level of 63 % which is higher than the average of 60 % across all industries. The results were communicated to employees, action plans created and progress on implementation of improvement plans shared through regular town hall meetings in the service centers. Quarterly updates on progress are made to the Management Board. Teleplan operates a Leadership Academy to foster and develop leadership talent within the business. Programs run in 2014 engaged participants from across the business and gave them the opportunity to experience the complexity of running their own business and learn about the impact of emotional intelligence and situational leadership in achieving business goals. These programs also facilitate and contribute to the building of effective relationships between colleagues working in different geographies, cultures and functions.
7 HEALTH AND SAFETY OF OUR EMPLOYEES IS OUR HIGHEST PRIORITY TELEPLAN ANNUAL CSR REPORT 2014 Teleplan has six service centers certified to the international health and safety standard ISO In 2015 plans are in place to further extend ISO certification to additional service locations. 5 In 2014, Teleplan began collecting health and safety data. This includes the number of accidents and incidents, injuries and lost-time injuries. Accidents and lost time are an indication of an unsafe workplace. Lost Time Cases in 2014 (as defined by OSHA) was Teleplan s results are far below industry averages. The average Lost Time Cases from the US Bureau of Labor Statistics in 2013, for Professional, Scientific and Technical Services was 0.2.
8 OUR CODE OF CONDUCT ENSURES THE HIGHEST ETHICAL STANDARDS 6 Our shared values of leading, unifying and caring for our Teleplanners underpin everything we do and are the foundation of Teleplan s business principles manifested in our Code of Conduct. Teleplan s Code of Conduct is published on our corporate website and communicated to employees when they join the company. The Code includes information on how to raise concerns, issues or suspected violations of the Code. Employees confirm their understanding of the Code and compliance to it through a written sign-off process which is managed by the global HR function. In 2014 the Code was updated and reissued. It was translated into the seven principal languages used across Teleplan s operations. Awareness and understanding of the Code and its importance to the business were promoted through a program of employee training and communications. Teleplan also established a whistle blowing policy and procedure which ensures that any individual can report in confidence and without fear of reprisal, actual or alleged breaches of the Teleplan Code of Conduct. Many of Teleplan s customers are members of the Electronic Industry Citizenship Coalition (EICC), a coalition of the world s leading electronics companies which works with a common code of conduct to improve social, ethical and environmental responsibility in the global electronics supply chain. Teleplan recognizes the importance of meeting customers requirements to ensure an ethical supply chain and has set the EICC Code as the standard to work to. To ensure that Teleplan has appropriately trained people to lead the process of assessment and audit to the EICC Code three members of the Quality Management team trained and qualified as EICC Labor and Ethics Lead Auditors in 2014 and a program of self-assessment and audit is underway. In addition Teleplan has participated in the social and environmental assessment survey operated by EcoVadis, the leading and highly respected organization in this field. As the result of a comprehensive improvement program, Teleplan increased its EcoVadis rating from Bronze in 2013 to Silver in With the objective of engaging with suppliers on fair business practice to ensure that its ethical standards are met, Teleplan has developed an ethical supplier policy.
9 AN ETHICAL SUPPLY CHAIN IS VITAL TELEPLAN ANNUAL CSR REPORT 2014 Teleplan provides its customers with service solutions which range from simple repairs to highly sophisticated technological and electronic solutions. The units and components required to undertake these service solutions are purchased primarily from the Original Equipment Manufacturer (OEM) or from a supplier designated by the OEM. In these instances (the bulk of Teleplan s activity) Teleplan does not determine the supplier or source of the component. In other instances Teleplan purchases industry standard parts. Teleplan does not subcontract the manufacturing of any units or components. 7 Whilst a material part of the supply chain is determined by the customer, Teleplan nonetheless expects its major suppliers to be aligned with and meet the social, environmental and ethical standards of the Electronics Industry Citizenship Coalition EICC Code of Conduct which has been adopted by many of its customers. In 2014, Teleplan has undertaken an evaluation program to better understand the positioning of its major suppliers on CSR. Major suppliers are those which represent 75 % of total spend in Membership of the EICC, certification to international health and safety and environmental standards such as ISO18001 and ISO14001 and locations of operations in high-risk countries were all taken into account. In 2015 Teleplan will undertake further engagement with its major suppliers in the implementation of its ethical supply chain policy.
10 COMMUNITY AND EMPLOYEE ENGAGEMENT ARE KEY 8 As a result, we place CSR and responsible business practices at the core of our activities. We are actively taking responsibility for our impact on society. We encourage employees to get involved individually and together in fund-raising activities and volunteering initiatives in support of the good causes important to them. Community and charitable deeds are publicised and celebrated company-wide through INTOUCH, the employee newsletter which is produced bi-monthly and always includes a round-up of community activities across the Teleplan world. Some of these were: A clothing drive to support St. Jude Children s Hospital in the US, teamed with the local radio station to collect over 1,000 pounds of clothing. Success through Positive Mental Attitude Program in Malaysia. This program was specially customized for employees children to participate in. The program consisted of various educational activities including team building, tree planting and a Fire Bridge exhibition Support of CASA HOGAR MAMI AC, a non profit organization in Mexico that supports 150 children offering education, meals and shelter. The local team participated in an Impact Day at the shelter. Funds were raised through various activities and donations were made to the British Heart Foundation and Rowans Hospice in the UK.
11 CONTINUOUS DEVELOPMENT OF OUR CSR PROGRAM: OBJECTIVES AND TARGETS TELEPLAN ANNUAL CSR REPORT 2014 The table below details the objectives agreed by the Management Board to ensure continual improvement in the management of the social and environmental aspects of the business; The table shows the progress we have made against these objectives in 2014 and the targets agreed for Objective Achievement in 2014 Target 2015 Effective management of environmental impacts Manage use of energy in major facilities efficiently To build and maintain high levels of employee engagement Ensure a safe workplace and minimise workplace accidents Meet customer expectations in the social and environmental management of our business 12 service centers have been certified to ISO14001 Energy consumption analysis has identified highest usage facilities Employee engagement survey undertaken and results reported to the Management Board and Regional Management Teams. Appropriate corrective action plans devised and underway Extend certification to ISO14001 to Dallas, TX and Reynosa, MX Continue to work with highest usage locations to reduce energy consumption Monitor corrective action plans and report progress to stakeholders on a regular basis 6 service centers certified to ISO Extend certification to ISO18001 to Roseville, CA Completed self-assessment and social and environmental auditing in all three regions at Mexicali (Mexico), Penang (Malaysia) and Prague (Czech Republic) Engaged in the EcoVadis social and environmental survey and achieved a silver rating. Continue to undertake self-assessment at major service centers with the EICC Code and implement time-lined improvement plans To facilitate employee charity fund-raising and volunteering Effective and timely communication of social and environmental management performance to key stakeholders Continually improve management of environmental and social impacts Three Regional Quality Managers qualified as EICC Labor and Ethics Lead Auditors Fund-raising and volunteering initiatives undertaken in support of good causes individually and at facility level published throughout the organization via the company newsletter. Responded to requests for self assessment and auditing from major customers. Created a dedicated CSR area of the corporate website and an annual CSR report. Half-yearly reporting to Management Board on CSR metrics and progress on targets. Share best practice and celebrate achievements across the business by ensuring that each issue of the employee newsletter includes a roundup of community activities Continue to respond to auditing requests in a timely and transparent manner. Publication of the annual CSR report on the Teleplan corporate website 2015 targets agreed and CSR report on progress against targets half-yearly to the Management Board and published annually on the Teleplan website.
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We have made good progress and gains in each of these areas over the past year and I look forward to sharing these developments.
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