CSR REPORT - ANOVO | After-Sales Solutions · · 2015-11-17CSR REPORT . Confidential and ... around 70 disabled people now theworking directly for ANOVO Montauban in an adapted

2014

CSR REPORT

2 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

Corporate Social Responsibility

“Our corporate social responsibility achievements in 2014 reflect our promise to provide innovative, sustainable and cost-effective solutions that protect the reputations of our customers. Since inception, ANOVO has focused on developing services that have a positive impact on our own and our customers’ bottom line, yet at the same time help to shape a better and more sustainable environment. “


Message from our CEO

Quality and Transparency We always strive for excellence in customer satisfaction. Our integral understanding of the lifecycle of digital products enables us to deliver on this target. We are transparent throughout all processes and methods, and these are accredited by our market-leading customers, all of this is underpinned by our core competence in delivering innovative technological solutions that add real value to our customers’ business.

One Team We invest considerable resource on staff training and development, this means that our quality solutions are developed and maintained by expert teams. We also keep an open workspace, based on teamwork that encourages and rewards continuous improvement and values creativity.

Community Spirit We strive to support the communities in which we work and since our business affects almost everywhere in the world, we encourage our people to support charities across the globe.

Reactivity We combine technological know-how with a passion for the industries in which we operate. This allows us to develop innovative services that are built for the products of tomorrow.

Global vision/Local impact We are a group and are proud of it. We want to share our best practices and our best solutions, whilst ensuring suitability to the local markets in which we operate.

Sustainability

We have adopted a holistic approach to sustainability within our repair, refurbishment and recycling business. Core to our operations is the end-of-life management for electronic devices, and it is our goal to become a

leader in terms of responsible and sustainable development within this industry.

François Lacombe CEO ANOVO Group

ANOVO is a market-leading provider of after-sales support and supply chain management services within the technology market place.

We develop solutions that extend the lifecycle of high-tech products. Each year our services provide a second life to more than 29

million products worldwide. The Group has operations in 12 countries supporting our customers through a network of 20 specialized

service centres and reverse logistics hubs.

We are structured to deliver innovative and cost-effective supply chain solutions to our customers’ technology and their multi-channel

customer base. We have adopted a holistic approach to sustainability within our repair, refurbishment and recycling business. Core to

our operations is the end-of-life management for electronic devices.

It is our goal to become a leader in terms of sustainable development within this industry, based on environmentally and socially

responsible practices. To achieve this goal, the Group has developed a corporate social responsibility program, with a commitment to

undertake the following 6 steps towards sustainable development.

Extract from the ANOVO Group Sustainability Charter

Reference MAN.COR.EN.001(D)

Introduction On 2nd March 2015, Ingram Micro announced the acquisition of ANOVO, this

report pre-dates the acquisition. Information on Ingram Micro’s CSR policy can

be gained via http://corp.ingrammicro.com/About-Us/smartcitizen.aspx


http://corp.ingrammicro.com/About-Us/smartcitizen.aspx



Proprietary information of ANOVO, An Ingram Micro Company — Do not distribute or duplicate without ANOVO's express written permission.

Communicating in a responsible and objective way on its social and environmental performances

Understanding that CSR can only be achieved in conjunction with our staff, and aiming to enhance this by: • Promoting diversity within the company • Engaging with local schools and universities to assist with the careers of the next generation through work place

experience opportunities • Seek to help all staff attain their aspirations in terms of professional development through a focus on skills

management and training • Raising awareness amongst employees towards sustainability issues and empowering them to act at their own level

Acting as a socially responsible company by contributing to charitable projects in line with the Group’s core business.

Sustainability Charter: The 6 major axes of ANOVO’s CSR charter

Enrolling in a continuous improvement process to reduce its impact on environment, especially its carbon footprint.

Proposing innovative offers at all stages of the product life cycle. Promoting responsible purchasing.

Undertaking all business activity with honesty and integrity; maintaining internal controls, practices and procedures necessary to ensure standards are met or surpassed, and complying with all relevant legal requirements and duties.

Key Highlights of 2014

October

Third Party Ecovadis grant ANOVO (Group) a Silver Recognition Level for their CSR Commitment.

September

Montauban site - 4th contract signed with a non profit organization : around 70 disabled people now working directly for ANOVO Montauban in an adapted environment.

July

Occupational Health and Safety Management in ANOVO France and HQ is accredited OHSAS18001 (6 sites) enhancing the importance ANOVO puts in its people.

June

Environmental Management Systems of ANOVO Switzerland, ANOVO Benelux and ANOVO Peru are certified ISO 14001. 81% of the Group staff is now working in an Environmentally Certified site.

March

ANOVO UK wins Best Service & Repair category at the Mobile News Awards for the 6th time.

April

ANOVO joins the "Business Charter for the inclusion of those leaving prison" and start a work supply program to prison's workshops.

February

ANOVO wins the Ulysse prize of the best company turnaround.

January

ANOVO Switzerland announces signature by 100% of the staff of ANOVO's Code of Ethics and of Business Conduct.


Introduction We believe corporate social responsibility starts with ourselves, and the policies and procedures we have in place to guide our personal and corporate behaviour. These give us a strong foundation on which to base our decisions, drive innovation and actively manage our international operations. We are working to build in corporate social responsibility as an intrinsic part of our long-term strategy, so our policies are available to all employees and integrated into Employee Handbooks in order to raise awareness amongst all colleagues. Ethics has only a true value if it is shared by the entire supply chain. Hence, ANOVO asks its suppliers to adopt ethical behaviours. This is done by asking them to conform to the Electronic Industry Code of Conduct (EICC).

Code of ethics and of business conduct

• The Code of Ethics and of Business Conduct forms the general rules which govern ANOVO employees and sub contractors, suppliers and other persons with whom the Group are in close collaboration.

• Our corporate vision and values speak to our business standards for ethical, honest and legal practices. We are accountable to demonstrate these values in our day to day work place.

Extract the Code of Ethics and of Business Conduct Group ANOVO

Reference: MAN.COR.EN.003 (B)

Ethical procurement policy statement

• ANOVO recognizes its responsibility to carry out its procurement activities in an environmentally and socially responsible manner.

Extract of the ANOVO Group Ethical procurement policy statement

Reference: MAN.COR.EN.002(B)

Ethics, Honesty & Integrity

8 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.


Assessment Results

Proprietary information of ANOVO, An Ingram Micro Company — Do not distribute or duplicate without ANOVO's express written permission. 9

Group Indicators

Total electricity consumption (KWh)

Total gas consumption (KWh)

Total diesel/oil consumption (KWh)

Mass of gas used to refill air-conditioned equipment (in Kg)

Total waste mass (metrictons)

CO2 emission-scope 1 (Kq of CO2e)

CO2 emission-scope 2 (Kq of CO2e)

Kg CO2e/ € of turnover (scope 1 & 2 of GHG protocol)

Kg CO2e/ € of processed unit (scope 1 & 2 of GHG protocol)

Total # of injuries or wounds in the period

Rate of injuries (# of injuries x 1000 000/ total hours worked)

Rate of lost days (# of injuries x 1000 000/ total hours worked

% of disabled workers out of total workforce

% of women in executive

By publishing this report ANOVO intends to communicate in a responsible and objective way. A set of indicators has been chosen, not because they are particularly in favour of the company but because they are reflecting the concern of our stakeholders.

Reference

Jan-Jun July-Dec Jan-Jun July-Dec GRI G4-

Total electricity consumption (KWh) 4 324 792 4 692 577 4 527 244 4 852 475 EN3

Total gas consumption (KWh) 3 325 035 1 807 538 2 859 706 1 510 326 EN3

Total diesel/oil consumption (KWh) 96 010 96 676 154 424 149 477 EN3

Mass of gas used to refill air-conditionned equipments (in Kg) 48 72 33 39 EN20

Total waste mass (metric tons) 4 157 4 134 4 306 4 431 EN23

CO2 emission - scope 1 (Kg of CO2e) 701 273 470 985 569 549 332 581 EN15

CO2 emission - scope 2 (Kg of CO2e) 1 034 093 1 160 735 1 119 437 1 203 507 EN16

Kg CO2e / € of turnover (scope 1 & 2 of GHG protocole) 0,011 0,010 0,010 0,009 EN18

Kg CO2e / processed unit (scope 1 & 2 of GHG protocole) 0,148 0,081 0,119 0,102 EN18

Total # of injuries or wounds in the period 39 53 46 56 LA6

Rate of injuries (# of injuries x 1 000 000 / total hours worked) 10 13 10 12 LA6

Rate of lost days (# of lost days x 100 000 / total hours worked) 481 475 499 460 LA6

% of disabled workers out of total workforce 2% 2% 3% 3%

% of women in executive 9% 10% 11% 11% LA12

2013 2014


EcoVadis Results

2014 - ANOVO Group obtained the SILVER rank

The complete evaluation is available on our website: www.anovo.com

2013 – ANOVO Beauvais site got the GOLD rank with a score of 63%

Overall 34% 44% 47%

Evaluation date

11/1

0/10

23/0

5/12

24/1

1/14

CSR approach Main actions

Environnement Environment ENV 4 5 6 ISO14001 Certification of 60%-80% of

the sites in the world

Social Labour Practices LAB 4No Group comprehensive policy

OHSAS18001 only in France

Ethique des AffairesFair Business

PracticesFBP 2 5

Set-up of a Code of Ethics in the entire

group (but no deployment evidences)

Fournisseurs Suppliers SUP 3 4Better presentation of the documents

No CSR evaluation of key suppliers

everywhere

OutstandingNone Partial Confirmed Advanced

ANOVO has selected EcoVadis as its’ CSR assessment partner. EcoVadis specialises in tracking, analysing and helping companies to improve on their environmental and ethical performance.

http://www.anovo.com/






International Certifications

Number of Employees working in an ISO 14001 certified facility

Group 81%

Group – Europe 91%

France & Holding 100%

In 2014, ANOVO increased its’ focus on Environmental

Management through the ISO14001 certification. This is now in

place in all major European facilities. ANOVO Benelux,

Switzerland and Peru facilities were certified in June or July

2014.

Occupational Safety Management Systems (OHSAS18001) have

also been implemented in several ANOVO sites, starting in June

2014.

Note: Specific certifications are held by some ANOVO sites, such as

ISO22301 – Societal Security - Business Continuity Systems in Norwich

(UK), ISO17025 – EMC Testing and EC Marking in Brive (FR).

ANOVO’s commitments and progress towards quality, environmental and corporate social responsibility are underpinned by our core capabilities in the set-up of management systems, that are recognized by third-party certifications.


In October 2014, the HR department in Spain and Latin America initiated a HR system where all employee data (personal and contractual) are held in a cloud platform. Vanesa Cantero Alfaro, HR Director, explains: “Using the Portal, all 1100 employees can download their payroll, thus saving on paper, transport and paper management. They can also view their work calendar, request vacations and other absences, which was previously all requested by paper, saving time and potential loss of information. The portal also allows them to ask questions directly to the HR department. This has reduced the amount of time wasted waiting and allows for a much more efficient management”.

3 178 Kg of paper

85 trees

28 572 litres of gas from transport

188 940 Kg of CO2e

843 070litres of wastewater not discharged into

lakes, streams and rivers.

1 330household garbage bags not filled by

waste from paper production

1 dump trucks of paper waste

Saving estimates

Full GHG Emission Inventory available on www.anovo.com.

Outcome ANOVO reduces by 15 times the GHG emissions compare to new product purchase.

Carbon Footprint

In 2014, testing, repairing, refurbishing and regenerating Electrical and Electronic Equipment has offered a second life to 29 million products worldwide but also generated around 3 400 tons of CO2 or equivalent (CO2e) – scope 1 and 2 of the Greenhouse Gas (GHG) Protocol.

ANOVO’s Emission Reduction Program has already had very positive results: air freight / sea freight ratio allowed a reduction by a factor 4 of the corresponding GHG emissions (between 2009 and 2014 air freight needs were reduced from 9% to 1% of the imports).

However, other emissions still need more efforts such as the renewing of oldest buildings or the employee commuting program. Nevertheless, by adding freight actions, accessories refurbishing and waste recovery ratio improvement (up to 97% in several countries), ANOVO saves 20 000 tons of CO2e (compared to the 67 000 tons considered in scope 3).

By comparing the ANOVO emission with corresponding emissions of brand new product, it is clear that having a product recycled or processed by ANOVO reduces the GHG emissions by 15 times compared with the purchase of a similar new product.

Case Study: ANOVO Spain, Madrid

Objectives Enroll in a continuous improvement process to reduce its impact on environment, especially its carbon footprint.







Waste Sorting & Recycling

The Belgium Telecommunication operator VOO approached us, to create a returns hub to repair and refurbish Internet Access Devices. Because of the overwhelming amount of returns coming into the hub, ANOVO took the initiative and created a system to efficiently manage the packaging waste by: • Investing in a conveying system, • Buying compacting equipment, • Reducing CO2e emissions by

cutting down on disposal lorry journeys (divided by 4).

Objectives • Improve recycling rate. • Reduce waste volume.

Progress • Recycling rate has improved in every

country. • Volume of wastes has decreased of 6%

(g/€) in 2014 vs 2013.

• WEEE rules and regulations are always evolving and are carefully followed.

ISO 14001:2004 sets out the criteria for an environmental management system. ANOVO follows this framework to audit and take corrective or preventive action against common processes as part of an integral environmental management system.

• In this framework, the Group waste recovery rate has improved year-on-year, achieving 97% for 2014 in France-Belgium-Switzerland.

• Across the Group waste quantities and costs have decreased, as shown below.

• A program of waste sorting and recycling is in place in every facility.

• Special attention is given to the WEEE (Waste of

Electrical and Electronics Equipment). Where possible the used EEE are re-employed and failing that, carefully sorted into the various waste type and transferred to selected and approved waste treatment chains.

• In the case of cardboard packaging (the highest volumes of waste), the Group has invested in conveyors and compactors.

Case Study: ANOVO Benelux, Houdeng


Energy Consumption

The ANOVO Colombia site demonstrates how an increase in volumes has a direct effect on energy consumption. The chart below demonstrates the economies of scale that are achieved by increasing a site’s productivity. By optimising volumes within the site, the KwH consumption decreased by 99% to 0.1 KwH / unit within a year.

Objectives • Reduce energy

consumption

Progress • Group Electricity ratio in

KWH/€ has decreased by 7% in 2014 vs 2013

Some facility relocation are in study, so as to improve energy consumptions drastically. Energy audits will be carried out in all major European facilities in 2015.

Colombia: Effect on volume increase on energy efficiency

In addition, we have undertaken the following energy saving activities: • Adopted a program of changing to energy efficient lightbulbs in all facilities, to improve consumption; • In some service centres energy usage is aligned to working hours. We remain committed to reducing our energy consumption, in particular by raising employee awareness and empowerment As we move forward, we will continue to refine both our energy consumption and our reporting on this topic.

Case Study: ANOVO Colombia, Bogota

ANOVO has opted to monitor and report on energy consumption using ratios, either versus the number of processed units or turnover. The below ratios show positive trends as a result of energy management activities and a warmer winter in Europe.


Health and Safety

0

2

4

6

8

10

12

14

2013 S1 2013 S2 2014 S1 2014 S2

Rate of injures

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013 S1 2013 S2 2014 S1 2014 S2

Rate of lost days

It is the policy of the company to provide all employees with a safe work environment, and to conduct

business in a manner that promotes safety and provides protection from workplace hazards.

In 2014, ANOVO began analysing health and safety data across the group. This included the number of

accidents and incidents, injuries and lost days rates. Safety risks have also been assessed in all major

sites using comprehensive and registered methods.

Objectives Reduce frequency and severity of injuries.

Progress 2014 ended with 12 injury cases per 1M worked hours and 12 lost days per 100,000 worked hours.

New action plans include ergonomics, bench study, safety training, team rotation where pace is intense, higher management implication.

Katarzyna Kruk, Quality Manager, explains: “we defined specific actions to improve the office working condition according to the seasons: In Summer time, we

- increase frequency of breaks and improve unit ventilation

- ensure the availability of water, - and allow lighter summer clothes.

Windows are also equipped with sun-protection films. As for colder months, we ensure availability of warm clothes and invested in ergonomic heating systems.

A working conditions improvement program completes these actions. It includes an anti-cigarette campaign, work station ergonomic audits, risk assessment of warehouses, and more. Training has also been reinforced on First Aid and Fire response. Dedicated H&S communication is available to all, as employee empowerment is essential to success”. Thanks to this comprehensive program, rate of injuries has gradually improved with a 20% reduction at the time of reporting.

Case Study: ANOVO Poland, Wroclaw


Innovative offers

- ANOVO’s Regeneration solution gives a second life to more than 1 million devices worldwide each year. The ANOVO solution includes buy-back of EEE such as tablets, laptops and mobile phones. Our focus is on creating the right channels to efficiently acquire, source and re-market a high volume of electronic equipment and devices, generating significant income for our partners. Devices are tested, sorted, repaired, refurbished where appropriate and then sold for a new lease of life.

- The 2014 carbon inventory reports that the regeneration of a smartphone in one of our factories emits around 1.1Kg of CO2e when the process does not require a spare part exchange, increasing to around 9.9Kg of CO2e when it does. This is a 5 : 50 ratio compared to the purchase of a brand new product.

- Proximity Repair and Returns Avoidance solutions are other examples of environmentally friendly solutions. With both solutions no transport go and return is required : EEE are either processed in a dedicated and local shop –walk-in repair- or by the customer himself through call centers and e-testing

As Samsung continues launching premium, high-end stores selling the entire range of its products, ANOVO has committed to deploy a support network of specialized customer service centres. Aligned to the new store there is also a renewed Technical Service Centre providing some unique support features such as a face-to-face repair service for all consumer electronics, giving an instant ‘walk away’ repair service for customers. Customers can also use the store to access the Smart Tool. Lastly, for products which require an in-home or depot repair service, customers can open an RMA in store to book a service at their convenience.

In 2014 ANOVO continued to lead the way with major innovative as well as environmentally friendly solutions:

Case Study: ANOVO Peru, Lima

Objectives Propose innovative offers at all stages of the product life cycle.

Progress Regeneration was 19% of total ANOVO Group Revenue in 2014

ANOVO is now one of the key reseller of second-hand products on the European e-market, hence participating in the promotion of a more ecological way of consuming.


ANOVO Citizen

ANOVO’s Montauban site is dedicated to the repair and refurbishment of set top boxes and modems. ANOVO has signed 6 partnerships with rehabilitation programs and charities that focus on the reintroduction of disadvantaged people back into the workplace, where they are trained to repair these devices. In 2014, 4,432,000 units were repaired by these partnerships working with ANOVO.

At ANOVO, we believe in a philosophy of operating globally and giving back locally. As part of our CSR program our objective is to make a difference within the communities in which we operate or impact. Involvement takes many forms, including corporate giving, local philanthropic committees, associate volunteerism and associate giving:

Case Study: ANOVO France, Montauban

Objectives

Act as a socially responsible

company.

Progress

Increase in rate of employed disable

people (+6%) and women in executive

(+16%).

17

- Some refurbishing activities, especially of accessories, are subcontracted to non-profitable companies whose aim is to limit discrimination by employing disabled people or prisoners -whether indoors or at the end of their term.

- Through its regeneration websites ANOVO promotes charity actions. For example, in Belgium a donation to the Jane Goodall Institute or to the Red Cross is made possible when selling one’s used mobile phone on the love2recycle.be website.

- Concerned to ensure that its staff members reflect the society’s diversity, 2 standards indicators were defined and reported at group level. These 2 charts show a performance increase, despite their low level. Action plans are required.

Continue to contribute to charitable projects in line with the Group’s core business.


50 % of total Group employees have been trained on the ANOVO Code of Ethics and of Business Conduct or through the Employee Handbook.

Objectives Achievements in 2014 Targets in 2015

Publication of our Corporate Social Responsibility Assessment Report built by EcoVadis on the ANOVO website.

Deployment and implementation across the Group of the Ingram Micro Code of Conduct and the Compliance Framework, following acquisition.

Creation and publication of the first Group CSR Report based on a set of standard indicators supplied by each country ; and of a Group GHG Emissions Report.

ANOVO France and HQ (6 sites) were accredited OHSAS18001 - Occupational Health and Safety Management- thus enhancing the importance ANOVO puts in its people. 85% of our sites are tracking H&S events and reporting standard indicators at Group level.

ANOVO Belgium to be accredited OHSAS18001 -Occupational Health and Safety Management. Continue partnerships with local schools and universities.

Honesty and Integrity: comply with all relevant legal requirements and duties.

Communicating in a responsible and objective way on its social and environmental performances.

Implication of employees in the CSR policies: promoting diversity; developing skills through training; raising awareness towards sustainability issues; improving occupational health and safety; building partnerships with schools and universities.

Diversity Partnerships

Honesty Integrity

Responsible Communication

85% of Site Tracking Events

50% of total Group Employees

Publication of CSR Report

Accreditation of ANOVO Belgium

Deploy Framework

Create & Publish CSR Report

CSR Program in 2015


Objectives Achievements in 2014 Targets in 2015

19

Development of regeneration solutions: creation of a clean room, on the Brive site, for processing of Smartphones LCDs.

81% of employees working in a environmentally certified site, with ANOVO Peru, Switzerland and Benelux ISO 14001 accreditations.

Set-up of Carbon Footprint records and indicators (scope 1 and 2) in 100% of the sites.

Proposing innovative offers at all stages of the product life cycle. Promoting responsible purchasing.

Enrolling in a continuous improvement process to reduce its impact on environment, especially its carbon footprint.

Acting as a socially responsible company by contributing to charitable projects in line with the Group’s core business.

Around 4,4 millions units processed by non-profitable organisations.

Extend the case study of Montauban throughout the group.

New contracts for the recycling of connected and embedded objects (automotive market) and development of return avoidance solutions. Regeneration was 19% of total group revenue in 2014.

CSR Program in 2015 (continued)

Charitable Contributions

Innovation Responsibility

Reduce Environmental Impact

Non-Profit Activity – 4.4M

19% of Total Group Revenue

ISO 14001 Achieved

Montauban Helps The Lead

New Regeneration Solutions

100% of Sites

Didier Moiroud Directeur Qualité et Développement Durable Quality and Sustainability Manager Direct +33-555-183-870 | Mobile +33-680-223-277 www.anovo.com/why-anovo/corporate-social-responsibility

Documents

CSR REPORT - ANOVO | After-Sales Solutions · · 2015-11-17CSR REPORT . Confidential and ... around 70 disabled people now theworking directly for ANOVO Montauban in an adapted