Sustainability at HUBER+SUHNER 2015

Environmental performance indicators for Switzerland

This year, HUBER+SUHNER will once again publish the environmental performance indicators for Switzerland in the current report. As soon as they are available, the information from the larger global production locations will be published on the Internet.(hubersuhner.com/en/Company/Sustainability)

In Switzerland in 2015, CO2 emission increased slightly by 2.1 % compared with the previous year. One reason was the higher heating energy requirements resulting from the many cold days at the beginning of 2015. On the other hand, electricity consumption (–10.9 %) and waste quantities (–16.5%) dropped considerably in 2015. Water consumption rose by 15.3 % as a result of numerous hot days in the summer and the increased cooling water demands.

Award for sustainable environmental managementSustainability is an important topic for HUBER+SUHNER. The company has participated in climate change reporting of the non-profit organisation Carbon Disclosure Project (CDP) since 2011. In 2015, HUBER+SUHNER was chosen for the “Sector Leader” award in the field of industry in the DACH (Germany, Austria and Switzerland) region. With a score of 96 points from a maximum of 100, HUBER+SUHNER achieved its best rating to date, thus reaching a top place amongst the 350 largest listed companies in the DACH region.

Ulrich Schaumann, Chief Operations + IT Officer, and Werner Koch, Head of Environmental Management System, (2nd and 3rd from left) at the awards ceremony with the management of CDP.

Global commitmentHUBER+SUHNER promotes environmental protection on a worldwide basis. The environmental performance indicators are recorded and evaluated in Switzerland, Germany, Poland, Tunisia, China, Malaysia and Brazil. Great Britain was added in 2015, with the result that seven of 19 locations are now covered. India will follow suite next year. Numerous measures at all locations were implemented to lower energy and water consumption, to reduce the volume of waste and CO2 emission as well as to increase the recycling ratio.

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* Scope 1+2; Scope 1 without direct emission from own vehicles and from SF6 (system limits in accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard). Updated background data was used for calculation purposes for the financial year 2015. As a result, the CO2 equivalents cannot be compared directly with the values in the previous annual reports.

Filtering water and the use of LED lightsIn Herisau, the water required for production is filtered, enabling the return of pollutant-free water back into the environment. A new, smaller chamber filter press, which requires less electricity and compressed air, has been in operation since July 2015. The system is fully automatically controlled and can be operated without supervision as it is deactivated immediately in case of a malfunction. Weekly testing is used to ensure that the water is pollutant-free. As of 2016, this filter system will also be used at the Pfäffikon ZH compounding facility.

The fluorescent lamps used in production in China were replaced with LED lights in 2015 in order to save energy. This reduces energy consumption in production by around 47 % from 95 to 49.9 megawatt hours per annum.

The chamber filter press filters pollutants out of the water, enabling it to be returned to the environment in a clean state.

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in relation to value added [CHF 100 million]

CO2 equivalents* [electricity+heat] (t) 4 734 2.1 %* 2015

2014

2013

2 919

2 376

3 086

t

Energy [electricity] (GWh) 27.4 –10.9 % 2015

2014

2013

16.9

13.2

14.5

GWh

Water (1000 m3) 1 127 15.3 % 2015

2014

2013

695.0

418.6

477.3

1000 m3

Total waste (t) 2 756 –16.5 % 2015

2014

2013

1 699

1 413

1 368

t

Recycling ratio 81.1 % –3.4 2015

2014

2013

81.1 %

83.9 %

83.0 %

absolute

HUBER+SUHNER as employer

The HUBER+SUHNER India team with Urs Kaufmann, CEO, Drew Nixon, COO Global Sales, and Gerhard Wenger, Managing Director ISA

In 2015, the number of permanent employees around the world fell from 3 891 to 3 649, mainly in China and Switzerland. Whereas the Chinese site suffered from the weak development of local demand, in Switzerland measures had to be imple-mented to ensure competitiveness because of the consequences of the strong Swiss franc. Further to job reductions, measures restricted to one year were also implemented, such as increasing the number of weekly working hours to 43 and reducing the remuneration of the Board of Directors and the target salaries of Executive Group Management and management members. These steps helped to alleviate the economic consequences of the strong Swiss franc. At the end of 2015, the company employed 1 271 permanent employees in Switzerland (–96 compared with the previous year, including divestiture of the Composites unit). As a result, the fluctuation rate in Switzerland increased during the past year to 12.3 %.

The group company in India recorded massive growth. Thanks to several large-scale orders, the number of employees increased significantly. This rapid growth required a thorough induction and training for the employees on site. Special indi-vidual health promotion programmes and training sessions on dealing with hazards in the workplace were initiated. In addition, specific leadership trainings took place for the new managers.

Key figures for Switzerland 2015 2014

Fluctuation rate 12.3 % 8.3 %

Absence due to illness of target working time 3.4 % 2.7 %

Fraction of vacant management positions staffed with internal candidates

48 % 52.9 %

Training and further education Switzerland

2015 2014

Investment in apprenticeship training

CHF million 2.0 2.4

Investment in further education CHF million 1.4 1.9

Number of further training days 1 621 1 970

Thorough training and employee development are important concerns for HUBER+SUHNER. In Switzerland, the company invested approximately CHF 3.4 million in further training of employees and in apprenticeship training in 2015.

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Added value distribution Added value is a measure of a company’s economic performance. It is calculated from profit before taxes and depreciations plus personnel costs minus other financial results.

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Added value distribution 2015: CHF 296.5 million (2014: CHF 344.1 million)

225.4

in CHF million

19.512.234.2

5.30.08

The distribution calculation reveals the extent to which the added value goes to the various company stakeholders or remains in the company.

Company (retained earnings)

Employees (personnel costs and benefits)Shareholders (proposed dividend)Public authorities (income tax)

Creditors (interest)

Company (amortisation and depreciation)

The HUBER+SUHNER Foundation

The HUBER+SUHNER Foundation is committed to social, cultural and sporting activities; it places particular emphasis on sustainability and the develop-ment of young professionals. The purpose of the foundation includes both the promotion of internal projects for the benefit of employees and also external projects, especially in the regions close to HUBER+SUHNER’s major locations in Switzerland. The foundation was involved in some 180 projects in 2015, each consisting of roughly one third from the fields of culture, sports and social issues.

One of the institutions supported cares for and assists the disabled – a brief insight.

Landscheide: Living space and workplaceThe Landscheide Association residential home and workshop was founded in 1990 and offers people with mental, physical and psychological disabilities a location which suits their individual needs and capabilities. An interdisciplinary team accompanies and assists the people in the organisation of their individual leisure time, in community life as well as at their workplaces in the workshop.

The residential home provides supervised accommodation for 34 people in various residential groups. The supervised accommodation focuses on promoting independence. The inhabitants do their household chores and cater for themselves independently. On the other hand, they enjoy a greater degree of support due to the specified structures in the supervised residential groups.

An employee manufactures a native wood product together with a supervisor in the workshop.

CUlTURE 26 %

SPORT31 %

SOCIAl 43 %

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The workshop consists of six different working groups with 48 supervised workplaces in the areas of silk painting, ceramics, woodwork as well as paper and textile design. The activities range from development and manufacture of the products through to marketing and selling them to exhibitions or from the workshop’s own shop.

Contribution to new building for the workshopConstruction of a new building for this workshop commenced in 2015 with the aim of improving the requirements for specialist developments as well as enhancing future supervision require-ments with appropriate premises. The move is planned for autumn 2016. The HUBER+SUHNER Foundation contributed to the costs of this new building.

Moreover, the Foundation was involved in four further new construction and refurbishment projects for social institutions in its catchment area in 2015. “The HUBER+SUHNER Foundation enables us to support institutions which promote and assist the disabled. We consider it important that people with a dis-ability can also live life as independently as possible”, explains Urs Alder, President of the HUBER+SUHNER Foundation.