sustain abilitY report - Rehau Group · 5 Values, Vision, growth a brief portrait of the rehau group Sustainable, passionate, innovative: REHAU stands for the future. As a family-run

sustainabilitYreport

REHaU gROUP

2013/2014

2

Content

Editorial 3

Brief portrait 5

Report profile 6

Objectives 7

Strategy in a time of transformation 8REHAU is prepared for the challenges of the future: sustainability and customer service are the foundation of our activities and the focus of our strategy, structures and processes.

Product responsibility as an opportunity 18The heart of REHAU is our innovative products. We place the greatest importance on ensuring that they meet our demanding standards and fulfil the needs of our customers.

Focus on environmental responsibility 28For REHAU, the environment is more than just a source of raw materials. It is our responsibility to find the best solutions for the environment and our customers.

Social responsibility with a long-term view 36REHAU’s focus is always on people. Whether it’s our employees, customers or society at large – we demonstrate every day that sustainability also always applies to people.

LEgaL nOticE

availabilityThis report is available in German and

English and can be downloaded from our

website www.rehau.com.

PublisherREHAU AG + Co,

Otto-Hahn-Str. 2, 95111 Rehau

Project managementLydia Haupt (Sustainability Officer)

Editorial teamCore team of the Sustainability

Committee: Dr. Stefan Girschik,

Alexander Friton, Klaus Gollwitzer,

Lydia Haupt, Dr. Martin Watzlawek

text and designServiceplan Corporate Reputation, Berlin

PhotographyThomas Leichsenring, Jörg Gulden,

Christian Grund (p. 3), Qilai Shen

(p. 41, 14)

illustrations

Veit Larisch

Print stritzingerprint

3

transformation with a sustainable impaCt our path to long-term success

Dear Readers,

Transformation requires courage, good ideas and a solid foundation. REHAU has laid that foundation over the past two years. What prompted the move? Our role as a family-run company with a long-term view and our commitment to conduct business in an environmentally friendly, socially responsible and efficient manner. Our thinking and our actions are based on long-term objectives that ensure a successful future for ourselves and our partners. We’re faced with the challenge of succeeding in a global market that moves ever faster. Our aim is not simply to keep pace with these changes and meet the requirements of the market, but to break new ground.

We have therefore laid the foundation for the long- term success of the company with a comprehen-sive internal transformation process. Over the past two years, we have built on our traditional strengths of independence, flexibility and innovative power together with our employees and business partners in order to ready ourselves for the challenges of tomorrow. Thanks to simplified decision-making structures, we are now working closer to the market and are making strides through newly created and reinforced structures in our business fields.

This enables us to work even more closely with our customers and help them become more sustainable. After all, sustainability is not only the key to the success of our company, but also a critical factor for our customers. We are making our processes more efficient, becoming more competitive and creating new opportunities.

With our second sustainability report in succession, REHAU is demonstrating its commitment to transparency, now and in the future. Throughout the report, we provide an overview of the areas of corporate strategy, product responsibility, environ-mental protection, and employees and society. We discuss visionary pilot projects and resource-saving forward-looking technologies, interviews with internal and external experts, and shed light on the innovative training and continuing education opportunities that we provide for our workforce.

Together with our partners and staff, we are forging ahead with a transformation for long-term success.

Jobst Wagner Dr. Veit WagnerPresident of the REHAU Group Vice President of the REHAU Group

EDITORIAL

4

DYnamiC anD sustainable on intermediate goals, objectives and plans for the future

Dear Readers,

One thing has always been clear to us: only by acting in an economically sound manner can we advance the cause of resource-saving processes and make a contribution to the sustainability of society. That’s why we have re-oriented our group structure and are actively shaping our future.

This report describes which of our sustainability goals we have already achieved, where we have made important strides and where we are just getting started. Our advancements in the field of product development are a good example of the success of our efforts. For instance, we have developed the SyNEGO window profile in line with our latest resource-saving criteria. The result is a product that not only provides outstanding thermal insulation and was developed in a particularly environmentally friendly manner, but is also completely recyclable. This and similar measures to protect the environment have helped us improve across the entire value creation chain – in termsof energy and water consumption as well as the amount of waste we produce, to name a few examples.

We also assume our corporate responsibility by joining with our partners in living according to the sustainability principles that we espouse. For instance, we’ve been able to persuade manyof our suppliers to commit to the same environ-mental and social principles. By the end of 2014, 37% had already signed the corresponding sustainability agreement, and we hope to have everyone on board by the end of 2015. We also foster responsible conduct on the part of our employees. For example, we have launched an expanded range of e-learning courses that enable employees worldwide to inform themselves about applicable laws and regulations and make it easier to achieve compliance. Our e-learning programs also offer employees the opportunity to participate in ongoing education and training on a range of current topics. This fosters personal development and strengthens our company.

The re-orientation of the group structure and other joint projects to secure the future of the company have required a lot of resources. We have thus had to postpone some important planned activities, including the employee survey. This will now take place in 2015, which has the benefit of allowing us to carry out even more thorough preparations and detailed implementation. The satisfaction of our employees is a crucial component in ensuring the future of our company. Their ideas are the source of our innovation and a critical factor in our common success.

Dr. Stefan girschikDeputy CEO of theREHAU Group, Chairmanof the Sustainability Committee

EDITORIAL

Rainer SchulzCEO of the REHAU Group

5

Values, Vision, growtha brief portrait of the rehau group

Sustainable, passionate, innovative: REHAU stands for the future. As a family-run business, we think and act with a view to future generations – and in keeping with the principle of sustainability. The result is over six decades of business success, always accompanied by healthy growth. Today, over 19,000 employees work for the REHAU Group at over 170 locations worldwide. Over 2,000 of them work in the town of Rehau in the southern German region of Upper Franconia, the head- quarters of our company and the place where it was founded.

Our guiding principles have remained the same: now, as before, we stand for long-term partner-ships with employees, suppliers and customers, healthy growth, independence, innovative drive and environmental responsibility. As a specialist for plastic and polymer solutions, that makes us one of the top providers in the market. What else distinguishes us? We focus on medium and long-term objectives instead of aiming for short-term profits. Our activities are primarily focussed on five so-called megatrends: energy

efficiency, renewable energy, water management, the mobility of the future and living and working spaces. Sustainable development in these five areas will have a major impact on the future of humanity – and we want to play an active role in that process. Technological advancements in the fields of digitalisation and networking help us in these areas. They enable us to create innovative, smart products and services and create production conditions that use less resources and are even more specifically tailored to the needs of our customers.

The ever-increasing global demand for energy, clean water and quality of life makes it absolutely necessary to treat natural resources with greater care and to think about tomorrow in the decisions we make today. With our services and products, we make a significant contribution to driving this process forward. REHAU develops system solutions of outstanding technological capabilities and long-term value. In doing, we are following the principles of our corporate culture: we always act with a long-term view and a sense of responsibility.

BRIEF PORTRAIT

6

planneD sustainabilitY report profile

This sustainability report documents the activities of the REHAU Group in the years 2013 and 2014. We are showing our commitment to transparency in this form for the second time following our 2011/2012 report. In keeping with our sustainabil-ity standards, we intend to document and analyse our future activities with a sustainability report every two years. The topics and figures we present are based on the guidelines of the Global Reporting Initiative (GRI). Our focus is on environmental and social aspects.

The report addresses the activities of the REHAU Group. The primary focus is on REHAU AG + Co as it has the highest sales and the greatest number of employees. It is referred to in the report as REHAU Germany. But we also cover all subsidiaries in

the group that fall under the aegis of the Group Executive Board. As a manufacturing company, all environmental figures presented here refer exclusively to REHAU production facilities unless otherwise indicated. Not included to date are the plants in Santiago de Chile and Rosario.

The report and the data presented in it are primarily based on internal surveys. In selected areas, the figures were also examined by external auditors and found to be accurate. This includes the indicators relating to occupational safety and health. Environmental data such as energy consumption and emissions were also subjected to external checks. We have defined our objectives to take account of the current legal requirements and regulatory framework.

REPORT PROFILE

7

gaining trust through performanCeobjectives

topics Objective Status 2014 Page

Environmentally friendly products and solutions

Focus on an environmentally friendly product portfolio

Compile an environmentally friendly product portfolio geared towards an energy and resource-saving contribution throughout the entire product life cycle by 2016

Environmentally friendly criteria such as energy efficiency, materials and waste were defined that are now being systematically integrated in relevant decision-making processes through an evaluation matrix. Further approaches in this area are being examined.

12

Resource conservation

Reduce primary energy consumption per tonne of production

- 30% by 2020 based on 2009 figures - 7.4% 35

Reduce cO2 emissions per tonne of production

- 25% by 2020 based on 2009 figures + 5.1% - We’ve experienced a slight increase due to the changed electricity mix. In 2015 we expect an improvement of more than 15%.

35

Reduce water consumption per tonne of production

- 40% by 2020 based on 2009 figures - 17.2% 35

Reduce waste in the production process (EMEA)

- 2% annually relative to the quantity produced - 7% relative to 2012 35

Employee satisfaction

Occupational safety and health: Vision Zero

Reduce workplace accidents throughimproved orientation and trainingconcepts in the plants

While the number of reportable workplace accidents improved slightly in 2013, the number rose again in 2014. To ensure a sustained reduction in accident rates, an extensive programme was developed that includes a range of measures to promote a robust safety culture.

39

Improve health management Create a concept for group-wide health management by 2014

The foundation was laid for a group-wide concept that will be fleshed out by 2016 and adapted in the various countries thereafter.

39

Promote the employability of older staff

Create a concept and measures by 2014 Due to the restructuring of the group organisation, the concept will be created in 2016.

40

Increase employee satisfaction Conduct the Great Place to Work employee survey in 2014 (worldwide), 360° feedback up to the middle management level (Germany)

Due to restructuring, the employee survey will be conducted in December 2015. The 360° feedback programme was introduced in 2014.

40

Long-term company objectives

Supplier management: strong commitment to the requirements of sustainability in relationships with business partners

Sustainability agreement for suppliers: 100% of our suppliers of production materials, investment goods and transport services will commit to REHAU sustainability principles by 2015

37% of all defined suppliers signed the sustainability agreement for suppliers by the end of 2014.

15

Further reinforce compliance within the company

Revise the REHAU Compliance Management System; implement further e-learning options

The Legal and Compliance unit was created and a Chief Compliance Officer appointed. Internal regulations with regard to corruption were revised and reconstituted and refined in separate anti- corruption guidelines.

15

OBJECTIVES

8

strategy in a time of transformation

The new lightweight construction centre at the plant in Viechtach, Bavaria, where hydrogen pressure tanks are produced, REHAU also demonstrates innovative power and dedication to a sustainable society in other areas. Like the threads on a radial braider, our divisions may point in diff erent directions, but they share a common core: success, sustainability and customer proximity.

9

We define ourselves primarily through our responsibility towards customers, partners and employ-ees. We think in terms of future generations and keep our focus trained on sustainability. A high equity ratio and our commitment to creating a sustainable future enable us to pursue our dedication to the highest quality with passion. That’s why today, we are already working on the answers to the questions of tomorrow.

If you want to shape the future, you can’t stand still. For our strategy, that means continuity and renewal. Continuity because we continue to live our values in the modern world and renewal because we are actively shaping the future and always striving to improve. We have therefore initiated a comprehensive transformation process to ensure a more flexible and diverse structure that keeps us close to our customers and makes it easier for us to respond dynamically to challenges. This dynamism is also evident in the fact that our employees are now becoming even more

active and have greater opportunities to take on responsibility, and good ideas do not become bogged down in long approval processes. We don’t have a standard template for every situation, but benefit from fast processes that enable us to adapt to individual situations and unbureaucratic solutions.

One of the instruments for clear and fast processes is the revised Compliance Management System in place worldwide. It combines all of the previous guidelines for REHAU employees and provides greater detail on many internal regulations. It’s one of the many areas in which our employees play a major role. We can only muster the strength to transform ourselves with the dedication of all involved. This transformation has required us to concentrate our capabilities and has been very demanding at times – but it was an effort of great significance for our company that will continue to yield benefits for our employees and partners well into the future.

sustainable transformation for a seCure future our strategy

STRATEGy

Human ResourcesOperations and Supply

chain Management competence centre

Strategic Development

corporatecommunications

Division Representatives

REHaU Sustainability committee

group Executive Board

Sustainability is a top-level priority at REHAU: our Sustainability Committee is directly attached to the Group Executive Board. This means that strategic decisions are made and directly integrated into target agreements and processes.

10

a robust struCture with great promisethe change process and its opportunities

REHAU has grown rapidly. Since its founding in 1948, three employees have become over 19,000. At this size, structures develop that can inhibit the further development of the company. Internally, the speed of decision-making and the cooperation of different departments can be optimised. Our customers also benefit from more flexible and effective processes. This is precisely why we have carried out a comprehensive change process. Since December 2014, we have been pursuing the following objectives with simplified and re-organised decision-making structures.

1. a stronger market presence Product-relevance, supply chain, sales concepts: every market is different and requires customised approaches – particularly in times of growing social, environmental and economic challenges. The old organisational structure at REHAU frequently made it difficult to adapt to the different conditions in individual industries, countries and regions. That’s why we have opted for structures better suited to our customers and markets.

2. closer to customersREHAU stands for variety and offers individualised services in the field of plastics processing in many industries. Our competitors, by contrast, are often specialists that concentrate on a single industry. To ensure that we can also be successful against competitors in the future, we have accommodated our customers and their need for a high degree of specialisation, further deepening our expertise in the individual fields. We now handle the different fields of activity in a more focussed fashion in five divisions and are able to react more quickly and precisely to our customers’ needs thanks to fewer layers in the decision-making process.

3. More efficient services and processes Customers choose a product based not only on the price and quality of the product. To be successful against their own competitors, they

also require efficient services and processes. Thanks to the change process, REHAU is now even better positioned to fulfil these requirements: customer-specific services and faster, smoother and reliable processes are the aim.

4. Faster response to market and customer requirements Transparency and clear hierarchies form the basis of effective work processes. Our Rules & Procedures define clear instructions and responsibilities for particular situations. Nevertheless, we frequently faced time-consuming and complex coordination procedures in the past: all parties that shared responsibility took part in the decision- making process; less important matters went through the entire chain of command up to the top, and many non-experts made use of their extensive rights to be involved in the process. As a result, some decision-making bodies have been dissolved to speed up processes and make them more transparent.

The intensive change process has already enabled us to achieve some important goals. Other challenges still lie ahead, but we’re on the right track. Progress requires the courage to change. We’ve demonstrated our courage in close collaboration with our employees and partners, and will continue to build on that foundation. Variety and flexibility have always been our strengths – and will continue to be in the future.

STRATEGy

EMEa (Europe, Middle East, africa)americas asia/Pacific

Building Solutions

Window Solutions

Furniture Solutions

industrial Solutions automotive

REGIONS

DIVISIONS

group Executive BoardGROUP ExECUTIVE

BOARD

Supervisory BoardSUPERVISORy BOARD

STRUCTURE OF THE REHAU GROUP ORGANISATION

Ready for the future: following the change process, our new structure is better suited to the requirements of our customers and markets. The more efficient structure is manifested in pared-down decision-making structures in just three regions instead of the previous eight.

11

Quintet for the future overview of the five divisions

Our markets are as diverse as our range of products. So we’ve decided to move towards greater specialisation thematically and restructure our divisions. In the five divisions we now have, our core competencies are brought to bear precisely where they are needed – quickly, without unnecessary complexity and with a high degree of efficiency.

Window SolutionsScarcer resources, rising energy prices: if you want to protect the environment and save money over the long term, you have to use energy effectively. Windows and curtain walling technology from REHAU make an important contribution to support sustainability and unite function with elegant design. Around the world, we develop groundbreaking technologies together with our partners that minimise energy loss in private and commercial buildings. For example, our multi windows helped Germany’s first passive house in Freiburg achieve 80% lower heating energy consumption.

Building SolutionsThe chief characteristic of modern buildings is complexity. They are composed of an interdependent multitude of elements that must all be finely coordinated. REHAU knows how to create a flawless, functional system using a variety of different components. REHAU creates forward-looking solutions for building technology and infrastructure. This division approaches global trends with new ideas and innovative materials – and meets the challenge of using natural resources more efficiently head on. REHAU helps cultivate the development of alternative energy sources for heating and cooling. Our diverse range of products also includes sustainable systems for stormwater management and efficient drainage systems for roads.

Furniture SolutionsOpen-plan offices are loud, modern apartments are not age-appropriate and residential living in tight spaces is uncomfortable? It doesn’t have to be that way. In the Furniture Solutions division, REHAU identifies the needs of different types of living spaces and designs individual system solutions. As a development partner and provider of new ideas for the furniture industry, REHAU continuously advances

STRATEGy

the development of products, design and processes. We offer more than 18,000 designs for furniture surfaces and develop a wide array of innovations. For example, our product range includes tambour doors that absorb sound and are primarily used in office spaces.

industrial SolutionsHoses, profiles, seals: what sounds like small products can take on large dimensions. As the leading system manufacturer of polymer- based solutions, REHAU is the right partner for industrial service packages of practically any type. In the Industrial Solutions division, we offer both mass production series as well as customised system developments. Our customers come from a wide variety of different industries and benefit from products such as our reliable high pressure hose, safe and standard-compliant drinking water pipes as well as our exceptionally robust seals. REHAU silicone sealing tape, for example, protects the largest clock in the world against environ-mental factors and stormwater. A total of 18km of the tape is found in the 612-metre Tower of Mecca.

automotive The results of our work are not always visible at first glance, but they have a major impact. From bumper systems to the ventilation concept and window frame profiles: our products from the Automotive division meet the highest standards in terms of design, comfort, safety, economy and functionality. Our employees develop intelligent solutions with passion and creativity. This has enabled us to establish ourselves as a development partner and series production supplier for many domestic and international automobile manufacturers. Intelligent solutions from REHAU can be found in every third vehicle manu- factured in Europe and practically all automobiles from renowned manufacturers.

12

sustainabilitY as a guiDing prinCipleConserving resources according to plan

Growth demands strong roots. That’s why we’ve made sustainability an integral part of our corporate thinking. A dedicated steering committee founded in 2011 has made a major contribution in shaping our environmental, economic and social values. It breathes life into our goal of sustained success in all our divisions, continues to develop our guiding principles in the field of sustainability and identifies the most important areas for further action. A structural reform that is paying dividends. We have made significant progress in key areas in recent years.

Long-term corporate strategy Sustainability is an important component of our corporate philosophy. We bear a special responsi-bility towards our 19,000 employees, thousands of customers and partners as well as the environment and society. For this and other reasons, the re- orientation of the Group structure was a milestone for the future of our company. It helps us live up to our responsibility and chart a very promising path into the future thanks to more flexible and diverse structures. We can thus do an even better job of achieving our aims in our five strategic fields of activity worldwide: energy efficiency, renewable energy, water management, the mobility of the future and living and working spaces. Among the successes made possible by the restructuring are major strides in the fields of compliance and supplier management in 2014. For example, a bevy of new e-learning seminars have made a significant contribution to helping our employees around the world ensure compliance with stand-ards and guidelines. Moreover, many of our suppliers have already committed to our sustainability agreement – and thus to sharing our values in terms of human rights, labour law, integrity, compliance and environmental standards.

Environmentally friendly and energy- efficient products Products that cause undue stress on the environ-ment are of no benefit to anyone. We know that, and our customers and suppliers do too. We create sustainable products and solutions along the entire value creation chain and work together with our business partners to tap the potential of sustaina-ble technology. Our goal is to use materials to create products and solutions that are long-lasting, low-maintenance and characterised by exceptional cost-effectiveness. We have been able to put this principle into practice in a wide variety of areas. For example, we made a critical contribution to a showcase project in the Berlin district of Prenzlauer Berg. An elaborately renovated former textile plant has been transformed into one of the most modern buildings in the German capital – not least thanks to 200 windows from the REHAU GENEO profile system. The window profile system utilises an innovative glass-fibre composite that replaces conventional steel reinforcement, resulting in a considerably improved ecobalance. Another practical example is found at the Victoria Docks harbour basin in London. REHAU fitted out two conference rooms at the new Siemens Centre with high-performance chilled ceiling elements that enable highly effective cooling.

STRATEGy

13

Waste and waste waterMaterial savings Energy efficiency

Hazardous substancesRecycled materials

Buildings

Work-life balance Education & training

Diversity / equal opportunityOccupational safety / health

Social involvement

Diversification (products / regions)Supplier managementEconomic stabilityGrowth marketsIndependenceCompliance

Customer satisfaction Product responsibilityProduct development (megatrends)

Environmentally friendly, energy-efficient

products

Employeesatisfaction

Long-term corporatestrategy

Resource efficiency

KEy ISSUESFIELDS OF ACTION

For us, sustainability is clearly defined: with precisely defined fields of action and key issues, we can focus our efforts exactly where improvements are needed.

Resource conservation As a manufacturing company with a resource- saving approach, we have a lot of experience with efficient processes. This pays dividends in all of our fields of activity and, together with fresh ideas, continually leads to sustainable innovations. We work so efficiently that our German locations are now all certified according to ISO 50001 for their energy performance. At the Bioenergiezentrum Hochfranken, we help ensure that a majority of the local demand for heat and electricity can be covered by renewable sources. We also use an increasing amount of high-quality recycled materials to ensure that the greatest possible amount of residual material can be reprocessed and put to use. What does that mean in practice? From recycled cable ducts to reprocessed PVC window systems: we employ sophisticated enhancement processes that combine product quality with an outstanding ecobalance. This resource efficiency is a long-standing tradition at REHAU. Back in the 1980s, we had already begun accepting and recycling old windows. With our sustainability principles, we intend to continue this tradition, use raw materials responsibly, reduce emissions and minimise our impact on the environment.

Employee satisfaction We are a globally active company renowned for an employee-friendly HR policy around the world. People are at the centre of everything we do. Our employees are the source of our innovation. Our growth depends on them. So we nurture their skills, intensively prepare them for coming challenges and help them achieve their profession-al goals. A safe, productive and friendly working environment creates the foundation for high employee satisfaction and long-term success. To identify the areas in which we can make further improvements to the working environment and which of our numerous initiatives, course offerings and programmes are especially well received, we will be conducting our latest employee survey in November 2015. Just how seriously we take the results of these surveys is shown by the new organisation of our group structure. The results of the last employee survey provided a critical impetus for implementing flatter hierarchies and clearer decision-making structures. Thus, in spite of our success, we always remain attentive to the desires and needs of our employees – and ensure that we can create the conditions for successful coopera-tion based on mutual trust in the future.

14

fast anD reliableoptimised processes thanks to rps²

What started small is starting to make waves internationally: the REHAU Performance System (RPS2). The principle behind it is simple:lean, efficient processes that simplify work- flows, improve delivery performance, avoid wasting resources and ultimately promote our growth and competitiveness.

new system in triptis for shorter distances and times One good example of what improvements through RPS2 can look like in practice is the logistics centre at our pilot plant in Triptis, Germany. Changes instituted there have led to shorter walking and transport distances. Previously, employees had to walk a distance of some 12km to pick a shipment with 60 items. Thanks to an optimised warehous-ing arrangement based on RPS² principles, that distance has been cut in half. Other benefits: the use of ergonomically optimised low-lift platform trucks simplifies work for employees in the picking department. In addition, most products are now accessible at reaching height and are closer together if they are to be shipped together. That accelerates the processes and benefits everyone: partners, the company and the employees.

new ideas from outside, strong drive from withinIn addition to our efforts to coordinate internal processes optimally, external influences have played a major role in the development of RPS2. For example, customers are demanding many products in an increasingly large number of variants. In the automotive industry, 50,000

different bumper types for just one vehicle model are no longer out of the ordinary. Developments like this present major challenges for planning and production. RPS2 plays a significant role in helping us handle these increasingly complex customer desires efficiently and precisely. The RPS2 team has a three-step process. It observes and analyses the processes at the respective location and creates a plan for improving the existing processes. The team develops the optimisation approaches together with the employees at the location.

a promising project We started the Lean Management Initiative in Triptis in autumn 2013; in the meantime, the project has spread to locations throughout the world. The results of the REHAU Performance System speak for themselves. In the future, the project will therefore be expanded to areas beyond the optimisation of distances, warehouse organisa-tion and production processes. The underlying approaches and principles will be applied step-by-step to the entire value creation chain. Moreover, business processes in administration are the subject of increasing attention. Many processes can also be improved here to help us secure our success over the long term.

“We look at the entire process – from the customer to the supplier. The goal is not simply to enact short-term changes, but to establish a new corporate philosophy that underpins our activities across the board.”

Stephan MaySenior Consultant RPS²

STRATEGy

15

fairness is a DutYexpansion of supplier responsibility

Thinking sustainably means buying sustainably. In 2012, we developed a sustainability agreement with minimum requirements for suppliers based on international standards such as the UN Global Compact. The thought behind the move is that we can achieve more together – we live our commitment to sustainability and pursue our environmental, economic and social objective with a long-term vision throughout the entire value creation chain.

One for all and all for oneTo ensure that we live up to this principle, we engage in open dialogue with our partners and work together every day to achieve continuous improvement. As part of that process, some 40% of suppliers had already signed our sustainability agreement by the end of 2014. Our goal is for 100% of suppliers of production materials, invest-ment goods and transports to commit to fulfilling the sustainable principles set forth by REHAU by the end of 2015. We have been instructing our purchasers worldwide in this important area since 2014. Among other issues, the e-learning seminar on sustainable sourcing addresses the four pillars of the agreement: human rights, labour standards and regulations, integrity and compliance, as well as environmental standards. What do those four core areas includes in detail?

Human rights REHAU suppliers are called on to protect and re-spect human rights within their sphere of influence. This means prohibiting any form of discrimination in keeping with the applicable rights and laws.

Labour standards and regulations Fair working conditions have many aspects. For REHAU suppliers, these include a prohibition on child, forced and compulsory labour. Moreover, wages, compensation, social benefits and working hours must be in line with the respective applicable laws and industry standards. No less important is safety and a culture of dialogue. Employers must ensure safety and health protection in the work-place and enable their employees to speak openly about their working conditions.

integrity and compliance Trust must be earned – for example by refraining from paying bribes, price fixing and illegal resource extraction practices. REHAU suppliers are thus committed to fighting corruption. They agree not to act in an anti-competitive manner, and they agree not to allow the use of conflict minerals – raw materials illegally extracted from conflict regions.

Environmental standards A sense of responsibility for people and the environment is important not only to REHAU. Our suppliers also demonstrate their commitment to the environment. As part of the sustainability agree-ment, they commit to promoting environmentally friendly technologies and manufacturing processes, enacting measures to assume greater environmen-tal responsibility, and complying with all environ-mental standards relating to their products.

Good relationships depend on a mutual willingness to help each other. So we support our suppliers in implementing the sustainability agreement. We have also developed a three-step process that enables us to strengthen responsible relationships. In addition to the sustainability agreement, it involves an initial assessment of new suppliers, a Supplier Life Cycle System to be implemented in 2016, and a continuous improvement process for existing suppliers. At the same time, the process enables us to suspend suppliers who fail to comply with the regulations. This is our approach to implementing social and environmental standards worldwide together with our suppliers.

STRATEGy

16

olD markets, new pathsproximity to customers: györ

In 2013 and 2014, REHAU expanded the Argentinian location in Rosario, further expanded the construction unit in Prague and opened a new plant in Györ, Hungary. Three examples that show how seriously we take our international growth strategy.

From Pasig city to Rosario: investment in the futureThe Future project at REHAU has many facets. The Philippine market was previously handled by our Singapore location, but our customers have had a local representative since February 2014. With our sales office in Pasig City, we’re able to support the growth of our customers in the construction and real estate sectors more effectively. In the Argentinian city of Rosario, we are investing some $7 million in a production facility for rigid PVC profiles, window systems and refrigerator seals to meet the rising demand. We have been producing a new profile system for sliding doors since April 2014. Its stability makes it especially suitable for high doors, enabling us to serve the trend of modern South American architecture. This shows how we are concentrating on our markets with targeted developments. Innovation, market presence and proximity to customers have always been among our strengths.

greater progress through technologyThe location in Györ, Hungary, is a particularly good example of what efficient, sustainable and

customer-oriented work looks like at REHAU. Construction of the plant in the international industrial park took 279 days. A period during which 3,800 tonnes of steel were heaved, 24,000m3 of concrete were poured and 75,000m3 of earth were moved to construct the new location. REHAU invested more than €50 million in the production facility adjacent to the plant gates of our partner Audi, built a 24,000m2 production facility and created some 300 new jobs. We have assembled bumper variants for various Audi models at our logistics centre in Györ since 2005. In the newly constructed plant, the bumpers for three models are injection-moulded, coated and delivered on time to the customer. The exterior body parts were previously produced in our Viechtach plant in Lower Bavaria. The advantages of local production are numerous: we save costs, reduce transport times, save resources and deepen our customer relation-ship with an innovative partner.

a new plant with heart For REHAU, business success and environmental responsibility are closely linked. Groundbreaking technologies make Györ an exemplary location. The heart of the plant is the painting line. Once the machines have been started up, the system functions in an extremely environmentally friendly manner. For example, the bumpers are cleaned with CO2 instead of water. To increase paint adhesion prior to the coating process, robots apply a flame to the components. This enables us to apply paint in just two coats instead of three, as was previously the case. As soon as the bumpers are painted, we dry them with infrared radiators instead of hot air. We also have around 50 of our own geothermal probes integrated in the earth of the grounds in order to heat the plant in winter and cool it in the summer. Thanks to such innovations, the plant is among the most energy-efficient worldwide.

STRATEGy

17

Alexander Ziehr runs a production facility in Györ, Hungary, that is as large as three-and-a-half football pitches. In this interview, the REHAU plant director talks about the heart of the new facility at the Györ industrial park, the new proximity to Audi and moments that bring people together.

What were the biggest initial challenges you faced with a new and modern plant like the one in Györ?

A completely new building, a new production start for the Audi A3 and the start-up of the plant – all of those things presented us with challenges that required a great deal of time and effort. To master those challenges, we planned for a staggered time line and started with the assembly of bumpers. Later, we started producing the bumpers with the injection moulding method on site. In the final step, the painting line was added.

Do you think that such a modern plant provides an example?

Absolutely. REHAU has learned a lot over recent decades and knows what is required for an energy-efficient, modern plant. We’re able to avoid mistakes and continuously improve. The equipment and the energy monitoring system are definitely setting new standards in the REHAU world.

REHAU established the plant in Györ to work more closely with Audi. Why is it so important to be so close the customer?

The automotive industry in particular is driven by cost-consciousness. As a supplier, transport costs are among the most effective means of reducing our own costs and enabling us to adapt individually to the customer. That also improves our potential to grow with the customer. It reinforces the relationship with the customer and allows us to build trust with them.

What technologies in the plant do you find especially fascinating?

That’s most definitely the painting line – the heart of our plant. It features extremely complex technology that can only be operated with a great deal of technical expertise. As REHAU developed the system together with the Dürr company, it is perfectly suited to our require-ments. The variety in the product ranges of our automotive customers is increasingly complex, which also increases the demands on our painting expertise. After some initial growing pains, today we’ve reached a level of quality that enables the new plant to deliver 2,200 bumpers daily for the A3, the Audi TT and the Q7.

How does the REHAU corporate culture manifest itself in the new plant?

As at all of our locations, we maintain direct contact with line managers, going all the way up to the executive board. I myself am present in the plant several times daily. We also have a breakfast meeting with the plant director every two weeks: each time ten employees from different areas talk with me about what is going well and what we can improve. That open communication is very important to me – especially because the Hungarian culture is different. Hierarchical thinking is very pronounced here and the employees first have to learn that they can come directly to me and the management team. What do you remember especially about the set-up period of the plant?

There are a lot of moving moments when you set up a new plant – as well as a lot of problems and challenges that arise along the way. I remember very well, for example, how in the middle of the night we stood in front of the painting line with great excitement as the first perfectly painted bumpers came out of the shop. Those are moments that bring people together and that you don’t quickly forget.

“this is an exemplary plant”An interview on the challenges and opportunities of progress

INTERVIEW

18

product responsibility as an opportunity

REHAU is confronting global environmental, social and economic challenges with innovative products. We assume responsibility worldwide in every stage of production while ensuring the highest quality. Like this employee in the quality control lab at the Taicang plant in China.

19

We file more than 100 patents every year, making us one of the chief innovators in the industry. Dedication that has brought us a long way, and will bring us even further in the future. The global social, environmental and economic challenges call for innovative products – above all in the fields of energy efficiency, renewable energy, water management, the mobility of the future and living and working spaces. The development of these megatrends will shape everyday life and determine how sustainably we live. Products that are produced in a resource-saving manner and can be recycled in environmentally friendly ways are playing an increasingly important role. We long ago understood that environmentally valuable goods are also economically valuable and continually check our internal processes to ensure that we have the right balance between those two success factors.

We regard innovations as being associated with the greatest possible utility for all involved. They stand

for sustainable products that are consistent with our environmental and social responsibility and at the same time ensure our business success – both for us and for our customers. The demand for resource-saving products is growing worldwide. So we work together with our partners to develop concepts that provide intelligent solutions for the great tasks of the future.

REHAU’s innovative spirit is in demand in the automotive, aviation, construction, furniture and household appliance industries, to name a few. What that means in concrete terms: we develop products that are so light they reduce the CO2 emissions of vehicles and aircraft. We do pioneer-ing work by advancing promising alternatives to fossil fuels, as well as conduct research into what opportunities renewable primary products such as bamboo offer for modern architecture. We work at the cutting edge and transform future visions into real opportunities – for everyone.

For us, innovation is more than just technology. It is the result of passion and a pioneering spirit – and emerges from the tireless drive to find the most intelligent solution. One of our greatest strengths has always been the ability to combine innovation with sustainability. We identify developments at an early stage and adapt to new realities. We’ve demonstrated that with the restructuring of the group organisation and also day after day through our efforts to create the ideal system solution.

innoVation as an engine of growth our product responsibility

PRODUCT RESPONSIBILITy

20

paVing the waY to the futurethe promise of hydrogen technology

Hydrogen is regarded as a highly promising source of energy. It is light, versatile and packs a huge amount of energy. Great hopes are therefore attached to the properties of this gas. In the future, it could establish itself as a clean fuel technology and relegate fossil fuels to the back burner. We’ve been examining the potential of this technology for years: for example, we’re developing hydrogen pressure tanks for the mobility of the future, as well as piping systems for transporting hydrogen.

the tank makes all the difference Our research stands for progress. With our new lightweight construction lab in Viechtach, Bavaria, which opened in 2014, we’ve created the basis for continuing to do pioneering work and tap new markets. Among other things, it is intended to strengthen our position as an innovative supplier for the automotive industry and significantly advance one of our forward-looking projects: the development of hydrogen pressure tanks. Why are they so important for the mobility of the future? Hydrogen is considered one of the few resource-saving energy sources that could compete with fossil fuels. It can not only be converted into heat or electricity in fuel cells, but is also a compelling alternative when filled directly into vehicle fuel tanks. A comparison illustrates the potential of the gas: 1kg of hydrogen contains as much energy as 2.8kg of petrol. That corresponds to roughly 3.7 litres of petrol, so roughly one tenth of a full tank for a small car. However, safe storage and transport systems are required to exploit the advantages of hydrogen – for example the special tank solution from REHAU.

new technology for a special solution The pressure tank developed by us for hydrogen- powered vehicles is cost-effective, environmentally friendly and particularly robust. One figure amply illustrates its strength: it stores hydrogen at 700 bar – pressure conditions equivalent to an ocean depth of 7,000m. The tank was designed to be so robust because it needs to be able to withstand traffic accidents without the gas escaping. To further develop these characteristics with a special production method and prepare the tank for future series production, we invested a total of €3.4 million in specialised production technology in 2014. The innovative production method of the system relies on an extremely robust plastic. It is shaped under high pressure and encased in a cocoon-like structure made of carbon fibre. In combination with another specially developed plastic, the result is exceptionally stable. Moreover, the efficient use of materials will reduce production costs over the long term. In this way, we are underscoring our commitment to being a reliable partner for our customers who breaks new ground with fresh ideas and intelligent solutions – and opens new opportunities that are both environmentally and economically sound. As an innovator, we are thus making a positive contribution to shaping future mobility together with our customers.


21

REHAU in the lead: with our partner Hychico, we turn hydrogen into electrical energy and heat. We provide our RAUHy gas pipe for this, which can safely transport hydrogen and be laid without extensive welding.

Pioneering work in Patagonia We are also breaking new ground in hydrogen research in Patagonia, Argentina, where we have been involved in a pilot project for several years. Storing renewable energy in large quantities remains a major challenge. The park in Argentina is paving the way to the future: on the east coast of Patagonia, the operators of a wind farm convert the energy from the air into hydrogen and store it in caverns underground in the order of hundreds of thousands of cubic metres – over a period of several years and without losses. To produce energy, the hydrogen, along with air, passes

through the fuel cell, which inverts the electrolysis process. Hydrogen and oxygen are recombined to form water, which in turn produces electricity – valuable electrical energy that can be used for industrial purposes, buildings or even mobility. The foundation for this, in addition to the intelligent conversion process, is also provided by the inge-nuity of REHAU. For example, our multilayer hybrid piping system ensures that the hydrogen can be safely transported and stored. The Patagonia project thus also underscores the relevance of hydrogen as one of the most promising energy sources – and we know how to deal with it.

22

innoVatiVe materials, sustainable stanDarDs how lightweight products are conquering the market

We have long understood how important lightweight components are for the future of mobility and have established ourselves at the leading edge of the industry with intelligent and innovative polymer products. Our customers include major national and international players in the aviation and automotive industries. We develop solutions for them in the awareness that every gram counts.

Fly lighter with REHaU With several thousand recipes, we have one of the largest material portfolios in the world. One of the major beneficiaries of that is the aviation industry. Products such as our handle strip systems, cable management systems and floor end strips for aircraft unite a variety of advantages: they not only provide exceptional quality and modern design, but are also cost-effective and sustainable. REHAU designed the RAU-FLIGHT material family specifically for use in the aviation industry. RAU-FLIGHT makes it possible to reduce the weight of some components by over 10%, which also results in lower fuel consump-tion. How does it work? RAU-FLIGHT is a material in which we have embedded glass bubbles. This reduces the weight while maintaining optimal robustness. The advantage of this is demonstrated

by the Airbus A320. For an A320, AIRBUS estimates annual fuel savings of 1,970 litres per 10kg of empty weight reduction. The fuel savings result through weight savings of up to 10% in the existing plastic parts, which altogether weigh some 100kg per plane.

new technology for the automotive industryAdvanced vehicles are economical. As a reliable and recognised partner of the automotive industry, we were among the early actors shaping and driving this trend. For example, our portfolio can also yield weight savings of up to 30% in vehicle manufacturing. Thus, together with our customers, we achieve lower CO2 emissions for the respective model and increase the range per tank of fuel. One example: for the Mercedes GLE, REHAU produces the front-end carrier – a high-tech element whose advantages flow from a new composite material. The carrier is constructed of sheet steel overmoulded with a special composite that does more than just reduce the weight. The production process also makes it possible to integrate a multitude of additional functions, such as headlamp modules or wiper fluid containers. Even the running board of the GLE contains intelligence from REHAU. An impressive development achievement made it possible to reduce the total weight of the component to 4.5kg. That’s half the weight of its predecessor.

Another striking example of lightweight construction is the REHAU technology of foam blow moulding. Using this method, chemically foamed extrusion blow mould components are produced for the automotive industry which can achieve weight reductions of up to 50% thanks to their low density. The technology is already in use in series production with our customer the Volkswagen Group. The advantage is clear: in addition to material savings, better insulating properties improve noise performance, and the installation process is considerably simplified as the components demonstrate excellent resilience. What that means in practice is that any deformation during installation is forgiveable as the foam blow moulded material returns to its original shape without being damaged. Moreover, 100% of the flash waste generated in the production process can be directly fed back into the foam blow moulding process, thus eliminating waste entirely.


The lightness of being: lightweight elements are used in automotive structural elements and are not only extremely thin, but also extremely strong and robust.

23

growth through renewable primarY proDuCtspromising plants

The trend is clear: in light of limited raw materials, polymers will become biopolymers in many areas. Researchers around the world are working on product solutions made of biodegradable materials. Plant-based materials such as wood and bamboo play a central role. Thanks to our research project that started in Singapore in 2013, a REHAU product could soon contribute to making the plant a significant component of environmentally friendly architecture.

the green steel of the futureWorldwide, bamboo is becoming increasingly popular as a raw material and has long since established itself in the international product world. There are bicycles made of bamboo, scaffolds made of bamboo and carpets made of bamboo – for good reason. The wonder grass is not only incredibly robust and strong, but also has an un- parallelled ecobalance. Bamboo is considered the fastest-growing raw material in the world, at some 30cm per day. A team of researchers at the Future Cities Laboratory in Singapore has been working on a formula for a revolutionary procedure since 2012. Using bamboo fibres, they want to replace the reinforcing steel that is used in pillars and load-bearing structures in buildings. The underlying idea: the bamboo fibre is roughly two to three times as strong as steel when pulled. Researchers want to use fibres from the plant and a plastic adhesive specially developed by REHAU to create an extremely robust composite material, a so-called fibre composite. The adhesive makes

the fibres not only extremely strong, but also water-resistant and resistant to environmental factors such insects and fungal growth. Moreover, the adhesion promoter itself has notably environmentally friendly properties. One of its advantages, for example, is its composition. It is based on plant-based raw materials and fibres – renewable resources – instead of crude oil.

three continents with major location advantages Resource-saving processes have a long tradition at REHAU. As a manufacturing company, there are many good economic and environmental reasons for us to produce as environmentally friendly as we can – for example with renewable primary products like bamboo. Especially in regions in which renewable primary products are found in large quantities, it pays to use the plant in production. Continents such as South America, Africa and Asia, for example, are perfectly suited for establishing bamboo as a replacement for wood or steel. In those places, it could be used to avoid expensive imports of building materials from other regions. Plant-based raw materials thus have many advantages: they grow back, reduce waste problems and can replace certain resource-intensive products. That’s why many experts consider them to be the materials of the future.

Plant-based composites are based on renewable primary products. These include materials such as starch or cellulose and increasingly plants like bamboo, maize or potatoes. Above all, they are characterised by their positive ecobalance. The objective is for fibre composites to attain even better material properties than more resource-intensive products.

the materials of the future


Brilliant bamboo: bamboo is more than just a plant. It is a fascinating material with reinforcing and protective properties.

24


Energy source with a boost Planet earth is not exactly too cold. On the contrary: according to current research, tempera-tures in the earth’s core are up to 6,000°C. Some of that heat rises to the surface in a permanent flow of energy. Planet earth emits roughly four times as much energy into space each day as we humans consume. With our innovative system solutions, we can convert that energy for use in heating and cooling – for example in multi-family dwellings, industrial premises and office buildings. Compared to conventional heating, this would allow massive savings in operating costs and CO2 emissions. Up to 75% of heating energy can be extracted from the ground, with the remainder being covered by electrical energy. To make that possible, we employ ground source heat pumps that function something like a refrigerator. A re-frigerator extracts heat from food and emits it into the environment through its rear side. Ground source heat pumps extract excess heat and feedit into the heating system. They conduct the heat upwards from underground through pipes with a circulating fluid. Using the same principle, geo-thermal systems can also cool – by discharging high temperatures from the building into the

ground. REHAU has been working on this tech-nology for years. We offer numerous intelligent system solutions for heating and cooling with geothermal energy.

For example ground-air heat exchanger systems: these are not conventional heating and cooling systems, but they regulate the temperature of the fresh air fed into the living space. They are positioned upstream from the ventilation system and utilise the storage capability of the ground through a pipe system. Ground-air heat exchanger systems utilise the almost constant temperature of 10°C at a depth of 1.5m to 2m beneath the surface to warm fresh air in the winter and cool it in the summer. REHAU is at the leading edge of the development in this field: we developed the first anti-microbial ground-air heat exchanger, which utilises a special coating to substantially reduce microbial growth in the pipes.

Whether with geothermal probes, collectors, energy piles or ground-air heat exchangers: we strive for resource conservation, safety and cost-effective-ness – and want to help energy from the depths reach a permanent high.

limitless energY from the earth rehau wants to help geothermal systems achieve a breakthrough

Their potential is great, and their use ever more in demand: geothermal energy is environmentally friendly, safe and economical – not to mention limitless. With our innovative system solutions, we’re helping to establish geothermal energy as one of the most important renewable energy sources of the future.

Exchange is the magic word: with our ground-air heat exchanger, we can warm air in the winter and cool it to a comfortable temperature in the summer – for an optimal indoor climate.

25

“we have broken new ground” An interview discussing a unique incentive program in the UK

Why did the Government decide to start the Renewable Heat Incentive (RHI) program?

46% of UK energy use is in respect of heat. So, there were three reasons for introducing the RHI. Firstly, to help meet the UK’s binding commitment under the EU Renewable Energy Directive 2009 to increase renewable energy use to 15% of our overall energy use by 2020. Secondly, to help meet the UK’s binding commitment under the Climate Change Act 2008 to reduce its greenhouse gas emissions by 34% by 2020 and 80% by 2050. Thirdly, to start building the supply-chains that would be needed for the transition to a low- carbon economy.

Who benefits from the Renewable Heat Incentive?

The program is aimed at everyone who uses heat as an energy source. Our aim is to promote the transition from fossil fuels to renewable heat systems. We need to make it easier to choose renewable energy sources. We launched the initial program for the non-domestic sector back in 2011; the domestic sector followed in 2014. In simple terms, the beneficiaries of the non-domestic scheme receive 20 years of support from the RHI; private homeowners receive seven years of support, based on the expected cost of renewable heat generation over 20 years.

What technologies does the program incentivize?

For the domestic sector, the RHI covers biomass, ground- and air- source heat pumps and solar thermal collectors. The non-domestic

program incentivises those technologies as well, and also biogas, biomethane injection, combined heat and power (CHP) plants using biomass, deep geothermal energy and energy generated from waste.

How successful has the program been up to now?

We’ve enjoyed several successes. For example, we’ve seen an increase in the use of biomass boilers and biomethane. Some technologies such as ground- source heat pumps and solar thermal, however, have not reached the levels we had expected when the tariffs were set. Overall, the average cost of the renewable heat generated by the technologies installed under the scheme is about 5p/kWh or around seven (euro) cents, which we think is cost- effective renewable heat.

What challenges did this exceptional project present and to what extent might this become a model for other European countries?

There were many unknowns leading up to the project. We didn’t know how the market would respond and what results we would be able to achieve. Gathering the evidence needed to inform the policy design took longer than envisaged. We worked closely with industry to build our understanding of the technologies and markets. It was a constant learning process. And we’re still doing that today. Each day, we collect new data and evidence and learn a great deal about how people use new heating systems, how the market reacts to signals and regulations. I hope our learning can help other countries get similar projects off the ground.

Andy Davey works for the Department of Energy & Climate Change (DECC) in the UK. He was involved in developing the Renewable Heat Incentive (RHI), a unique incentive program for renewable heat in the UK. He sees the project as a milestone in the shift away from fossil fuels towards renewable heating, with opportunity to share learning with other countries. In an interview, he discussed the challenges, and successes for the initiative.

INTERVIEW

26

innoVation with a push moving glass covers enable major energy savings

Our products are found in private households, supermarkets and even bakeries. They are products and system solutions that seem unassuming at first, but deliver huge performance. They include, for example, our patented glass sliding cover for chest freezers, or our sealing frame with a magnetic insert. These products enable our customers to achieve significant energy savings and thus substantially improve the environmental impact of their products.

a promising partnership Refrigeration units are the biggest energy consum-ers in supermarkets. It is therefore important to start there and find ways to use the valuable resource more economically. BEHR are a long-stand-ing partner for innovative glass covers with a great deal of expertise in the energy efficiency of refrigeration units. So the solution was clear: join forces by acquiring the majority holding in the owner-operated Danish company. Until that time, we had supplied BEHR with high-quality profile and sealing systems. We are now development partners and are working together to develop new, ener-gy-efficient innovations. What can customers expect going forward? Innovative system solutions for commercial refrigeration systems through unified expertise for the best possible product. One example: the patented glass sliding cover. Among other options, it is available with aluminium or PVC frames, with curved or flat glass, and double or triple glazing. Its advantages range from consumer- friendly operation to enormous energy savings and increased food safety. The three-section cover system for horizontal freezer cabinets is the only one on the market that can be opened two-thirds of the way – making shopping easier for the customer. The fixed middle section also ensures stability, enabling customers to access the products from both sides and preventing waits even during peak shopping hours. The cover also reduces the thawing process for the freezer cabinet

by up to 87%. That lowers the energy demand and CO2 emissions of the supermarket. The cover also contributes to hygiene as it protects food against soiling and guarantees consistently cool tempera-tures – which also reduces bacterial growth in frozen products.

Robust and impervious: seals from REHaU Whether for commercial refrigerators or household appliances: REHAU offers numerous system solutions that meet the highest requirements in terms of function, design and energy efficiency. Our wide range of products also includes gaskets, hoses and profiles for washing machines, dryers and ovens. Our gaskets for wet appliances, for example, demonstrate extreme robustness – for example against high temperatures and suds. With a special noise barrier, they also reduce the noise of appliances such as dishwashers. In refrigerators, our sealing frames have magnetic inserts to ensure that less cold escapes. Our seals are also the right choice for ovens. They are characterised by high material quality, are easy to install and withstand temperatures of up to 300°C. That makes us a recognised and reliable partner – for the manufacturers of commercial refrigerators and household appliances. They appreciate our material expertise, innovative spirit and flexibility. We share a common goal: we want to make products as environmentally friendly and economical as possible.


27

“the european market is the driving force”In this interview, the founders of BEHR talk about energy-efficient glass covers

In supermarkets, refrigeration systems consume a major share of the energy used. How much is it exactly?

That depends on the size of the supermarket and its energy concept. But on average, refrigeration systems in supermarkets consume between 50-66% of the total energy used.

What options do retailers have to reduce their energy consumption?

The answer is quite simple for such a weighty question: retailers should use more energy-efficient refrigeration systems. In the past, supermarkets used simple polystyrene plates to save energy overnight – but that is an old-fashioned method. Today, glass sliding doors and vertical glass doors are the most efficient way to reduce energy consumption day and night. What makes your glass an innovative product?

To make them as user-friendly as possible, we divided our standard covers into three different glass elements. This makes it possible to open the panes on both sides of the freezer at the same time. We were very surprised that no one other than us was taking such a close look at the issue. That’s why we also have the patent for this innovative solution. The conventional option is a cover that only opens on one side of the freezer. With that choice, end consumers need twice the space and time that is actually necessary, while other customers are forced to wait.

Whether in supermarkets in Berlin, London or Barcelona: milk and sausage products are not always displayed behind glass covers. Why is that not a standard?

The European market is definitely the driving force in this regard. The first countries that used energy-saving solutions were Scandina-via, Germany and the Netherlands. Actually the energy-saving potential is more or less the same everywhere, but the implementa-tion of resource-saving measures has a lot to do with the openness of the people towards those solutions. The southern countries, which are going through an economic crisis, have other priorities. The US is also at least 10 years behind European developments. There are two reasons for this: the first energy prices in the US are much lower, and the second reason is US retailers assume that a glass cover between the customer and the product would negatively impact sales figures. The argument is questionable, however, as data from Europe has shown that glass covers have no impact on sales.

What role does sustainability play at BEHR?

Sustainability is an important part of our corporate philosophy. We were one of the first providers of energy-saving solutions. We can demonstrate the advantages of our products with a simple calculation: our glass covers enable savings of 4kw hours per square metre of freezer per day. If you could describe REHAU in three words, what would they be?

Reliable, competent and sustainable. REHAU has been a reliable partner and supplier for us for over 10 years. We have always had a constructive and honest exchange. The company has outstanding expertise in many different areas. Moreover, REHAU is constantly growing and developing further – and organically, with a focus on medium and long-term objectives.

INTERVIEW

Transparent innovation: since acquiring the majority interest in the Danish company BEHR, REHAU has also offered energy-saving glass cover systems for industrial chest freezers as a full-range supplier. Their push-pull functionality of glass lids from both sides is patented and ensures the highest efficiency. In the interview, Peter Behr, Director of Sales and Development, and Kristian Behr, Sales Manager, talk about a rethinking in supermarkets, a surprising system solution and a widespread misconception in the US.

28

focus on environmental responsibility

Sustainable and effi cient: at our automotive plant in Cullman, Alabama, we’ve been able to reduce energy consumption by 45% over the past four years through a variety of measures.

29

sYstematiC resourCe ConserVationour environmental responsibility

Global business, global responsibility: as a globally active manufacturer with more than 170 locations and over 19,000 employees, we have the opportunity to do a lot for environmental protection. Environmentally friendly conduct is one of our core values. In our own buildings, in our materials research, in production and in the use of our products, we insist on adhering to sustainable standards. We also encourage the environmental consciousness of our employees and select our suppliers based on criteria related to their sustainable conduct.

Thanks to our numerous programmes and individual measures, we conserve resources in production, administration and sales. In many cases, REHAU even exceeds the legal require-ments. Why do we do that? Because everyone involved profits from it: the environment, us as a company, our employees and our business partners. Environmental improvements also yield economic benefits. As an environmentally conscious company, we save costs, help our customers act in a more environmentally friendly way and increase our competitiveness.

For us, environmental consciousness always means the systematic conservation of resources. That’s why we apply an environmental management system certified according to ISO 14001. It defines clear responsibilities, explains processes and provides implementation options. This enables us to identify and avoid environmental impacts as

early as the planning phase and determine the best ways of reducing emissions as well as water, gas and energy consumption. Forward-looking conduct is a long-standing tradition at REHAU.

Just how seriously we take resource-saving conduct is demonstrated by our special budget for energy efficiency. In recent years, we have repeatedly made large investments to save energy and again set aside a special allocation of €2.5million for this purpose in 2014. This instrument is one of the most important means of financing expensive measures that will only pay off in the future. It supports our guiding principle of long-term thinking and action: we do not think in short periods, but act in a forward-looking manner. We place great importance on long-term working and business relationships – and sustainable processes that will have as small an impact as possible on the environment in the future.

ENVIRONMENTAL RESPONSIBILITy

30

Recycling plastic products is nothing new for us. We have been promoting qualified recycling concepts for decades – and have made particular strides in the window division in the reporting period. With new facilities and the introduction of an innovative window profile, we aim to further solidify our position in the industry.

new window profiles: exterior elegance, interior brillianceREHAU began taking back profile sections and old windows and recycling the raw materials back in the 1980s. An approach that we still follow today. We always analyse our products to identify other applications and development opportunities to make them useful beyond their first life cycle. Our recycling team plays a major role in making that happen. It helps us identify the best recycling technologies, include new products in the recycling cycle and decide whether we need to procure particular materials for the recycling process. Just how far we’ve come in recycling materials is demonstrated by the introduction of our SyNEGO window profile on the European market. It contains a recyclate core – i.e. the non-visible parts are composed of a material that was the product of a recycling process. How is this product produced? We recycle old profile sections and feed the re-processed raw materials into a new production process. Within this process, we employ various measures to reduce energy consumption and use resource-saving technologies. The result is environmentally friendly and highly valuable. We produce recyclates without any loss in quality. SyNEGO stands for long-lasting, resource-saving window profiles with outstanding noise protection and excellent thermal insulation properties.

REHaU invests in recycling technology Two branch expansions, one message: for recycled products, we’re the right partner. As the demand for recycled materials continues to rise and this market presents great opportunities for us, we have invested in projects in the UK and Poland, among others. Through the acquisition of the facility in the UK, we are able to separate, shred, clean and recycle old windows by material – and thus produce some 5,000 tonnes of recyclate material annually that we can then integrate back into our production processes. In addition, we have constructed a new facility for recycling technology at our plant in Srem, Poland. Put into operation in June 2015, plans are in place to further expand capacities there. In Srem, we have been working on the sustainable recycling of the plastic waste of our window customers since 2013. Examples like this show how important recycling is for us. With our highly developed recycling concepts, we conserve resources and make ourselves less dependent on volatile raw materials markets.

plastiCs in CirCulation recycling at rehau

the three different ways we use recyclate material

- Closed loop: we use excess material from our own plants- Post-industrial recycling material: we use recyclate material from the production processes of other manufacturers that has not been used by end consumers- Post-consumer: we recycle materials such as old windows that are replaced in renovations

Use of recyclates 2014 [tonnes]

Application area

Pipes, civil engineering 18,800

Window profiles 8,200

Furniture profiles 5,800

Hoses, equipment construction

2,300

Automotive exterior parts 2,500

total 37,600


31

“the important things are in the work”PVC expert Stefan Eingärtner on recycling plastic

Sustainable, robust, versatile: PVC is better than its reputation. To highlight that point, the VinylPlus initiative emphasises the strengths of the plastic, supports PVC recycling efforts and works to advance new, more efficient forms of recycling. In this interview, Stefan Eingärtner, Deputy General Manager at VinylPlus, talks about ambitious goals and the path to a recycling society.

VinylPlus is a voluntary programme by the European PVC industry. What is the idea behind it?

PVC continues to have a poor reputation in some discussions – albeit unfairly so. Because of that, the industry got together 15 years ago to remind people of the sustainable aspects of the material and to work on sustainable solutions. This led to the development of Vinyl 2010, and later VinylPlus. Leading companies in Europe that produce or process PVC joined the movement, including REHAU at a very early stage in the process. If we don’t demonstrate our credibility, unity and expertise as a group, we don’t have a very strong voice. That strong voice is needed again and again to position ourselves in sometimes ambiguous political and legislative contexts, both nationally and in Brussels. With our successes, the programme documents how serious we are about this and has gained a lot of stature, especially on the EU level.

PVC is not generally regarded as very sustainable in Germany. How do sustainability and PVC go together?

With its particular properties, PVC makes it possible to manufacture products with very long lifetimes, in some cases up to 100 years and more. PVC is composed of more than 50% salt, a practically limitless

resource, and it can be recycled relatively easily and with a high level of quality. That gives us the opportunity to organise recycling and re-use. That adds up to a good placement on the sustainability scale.

One of your objectives is to recycle 800,000 tonnes of PVC annually by 2020. How can you achieve that ambitious goal?

To achieve that goal, Vinyl 2010 formed the European network Recovinyl back in 2005. It is comprised of 150 registered and audited recyclers and brings them together with our processing companies. We encourage the processors to use more recycled material and help them in their search for suitable material. Of course, it wouldn’t work without political support. We could make even faster pro-gress if landfills in the current form were no longer allowed or were accordingly expensive. Policy has to create regulations and the right incentives that would enable Europe to become a recycling society. We don’t have major oil deposits and comparatively few of our own raw materials.

What’s the biggest challenge in this context?

At present it is definitely the legislation in Europe. We have to convince the political bodies that waste and product legislation are a good fit with the desire for recycling. Recycling naturally also brings substances back into circulation that today, thanks to improved processes and knowledge, we no longer use. We can define safe applications for these materials. Thanks to its high proportion of construction applications, PVC has an excellent chance of finding solutions. Our industry, and in particular the processors, have made enormous efforts to prepare themselves better technologically for recycling. VinylPlus creates transparency and complete traceability of the material flows and their efficiency. We want to know: where does the material come from? And where is it going? Therefore, we have the recycling processes audited by independent auditors and collect performance indicators.

How would you describe the partnership with REHAU?

REHAU and VinylPlus have the same agenda, so that makes us a good team. Like other leading providers, REHAU recognised the importance of sustainability for its corporate policy at a very early stage, and also as a marketing instrument. REHAU lives the basic principles and the objectives of our programme on a daily basis – through its active engagement in the association, inwardly towards its employees and outwardly towards customers.

INTERVIEW

32

With a visionBy 2020, the German federal government aims to generate 35% of electricity needs with renewable energy sources. The Bioenergiezentrum Hoch- franken had even more ambitious goals. The con- glomeration of political and commercial stakehold-ers planned to exceed this goal before 2020 on a small scale by conserving resources and generat-ing alternative energy on a massive scale. Rehau presented the ideal location for this. Relative to its population, the small city is considered one of the industrial powerhouses of Bavaria. The underlying idea: what works there can serve as a model for the industrial centres of Germany. The plan worked. Thanks to its rapid pace of expansion of renewable energy, Rehau is considered a leader in the field. In addition to a block heating station, a geothermal field, a bioenergy facility and a biogas plant, it has also had an organic waste fermentation plant since 2014.

With an innovative spiritThanks to a process developed by REHAU Energy Solutions GmbH, the new organic waste fermenta-tion plant is one of the most innovative energy pro-ducers of its kind. The REHAU subsidiary developed a way of resolving the problems that have previ-ously hampered the fermentation of organic waste. The process separates impurities from the actual organic substances – i.e. plastic, glass, stones and metal from food and garden waste. At the end of the process, the fermentation waste achieves a purity of over 99.9%. That simplifies the further processing and increases the gas yield compared to previous methods by 25-30%. Thus, 75% of the energy produced in Rehau is generated from waste. In total the combined system of renewable energy sources produces 76,000 megawatt hours per year following the final expansion. By comparison: a pri-vate household with two people consumes roughly 3.1 megawatt hours annually.

Whether food waste, green waste or straw – biomass is a renewable energy source. Its greatest advantage: it is climate-neutral. The process of converting biomass into electricity and heat only releases the pollutants that were previously bound up in the organic waste. Plants, for example, only release the quantity of carbon dioxide that they absorbed during the growth process. Thus, the importance of biomass as a source of energy continues to grow.

Biomass as a core element of the energy transformation

moDel with a futurebioenergiezentrum hochfranken

The small city of Rehau in Upper Franconia, Germany is proving today just how efficiently renewable energy can be used in the future. Using state-of-the-art technology, 40% of local demand for electricity and heat is covered by renewable sources. The model project is the result of a collaboration between the city, municipality and locally based companies such as REHAU. With a new organic waste fermentation plant, we made a major contribution to the city’s energy transformation in 2014. How did we achieve it?


33

“The Bioenergiezentrum is a unique project for the production of renewable energy. The technology is absolutely competitive. The facility is designed so that the delivery and processing takes placed within a closed system. This means that the facility conforms to the highest standards in terms of odour and hygiene.”

Eric PrillerManaging Director of REHAU Energy Solutions GmbH

With local value creationThe organic waste fermentation plant can convert some 30,000 tonnes of waste into biogas and compost. The contents of the organic waste bins come from the local constituencies. The remarka-ble thing about the process: the biogas is sent to decentralised block heating stations and converted into electricity and heat there. With a REHAU local

heating network, the heat is then directly distribut-ed to consumers such as the school centre and the indoor pool. The generated electricity can also be used up to 100% locally by private households and commercial firms. So we produce energy for the region using organic waste from the region and protect the environment along the way.

Waste with added value: with the organic waste fermentation facility, we use what industry and individuals throw away to supply an entire city with electricity

34

outstanDing energY effiCienCYgerman locations certified for efficiency

We have high standards for our partners, and even higher ones for ourselves. By 2020, we want to cut our energy consumption by 30% based on the figures for 2009. But we will only fulfil this ambition if we continue to pursue our objectives as passionately and systematically as we do now.

Success according to plan Energy management plays an increasingly large role in the success of a company. Rising global consumption and dwindling resources will continue to exert upward pressure on energy prices. Just how much we can achieve with the right strategy is demonstrated by our current approach. All 23 REHAU locations in Germany have been certified for their energy efficiency through the globally valid standard ISO 50001 since 2014. The first locations in other European countries are due to follow in 2015. With our ISO 50001-certified energy management system, we are pursuing multiple objectives: we want to continuously improve energy use, consumption and efficiency as well as reduce costs. The certification is not just a satisfying confirmation of our tireless efforts. It also demon-strates to our business partners and employees how responsibly we conduct ourselves with respect to the environment.

a task for the futureWe manage our use of water, gas and electricity so systematically that we want to set even more demanding sustainability goals in the future. “We view the certification as a duty to work continuously in this area and analyse the potential for further savings”, says REHAU employee Frank Stegemann, Director of Building and Energy Services. To date,

we pursue this aim mainly by illuminating and evaluating internal energy flows. Important facilities, equipment, processes and activities are the focus of our analysis. To that purpose, our systematic energy management develops new strategic and organisational optimisation approaches. greater efficiency through more flexible measures It’s no coincidence that our motto is Unlimited Polymer Solutions. After all, REHAU stands for passion and an innovative spirit. Day in and day out, we give our utmost, apply our expertise for the optimal solution and strive for continuous improvement. A corporate culture that is reflected not only in our systematic energy management, but also in measures such as the special budget for energy efficiency. With this, we finance innovative and extraordinary projects and methods that do not entirely correspond with the criteria of ordinary investment decisions. In 2013, the special budget was used to finance 25 measures aimed at improving energy efficiency. Last year, the figure was 60 measures. In practice, we regularly assess the areas in which we can expand such rules – always bearing in mind our guiding principle of unlimited possibilities.

- We trained energy management officers and internal auditors at our locations- Our energy management officers then analysed energy consumption data in the plants and administration- This data was used as a basis for establishing and implementing energy-saving objectives - The final step: the implementation of an energy management system in accordance with ISO 50001. We now check the specified processes at regular intervals

Our steps to iSO 50001 certification


35

oVerView of enVironmental inDiCatorsour objectives by 2020

0.8070.805 0.7830.786

in m3/tonnes quantity produced

-40% based on 2009 fi gures

2012

2012 2012

2013

2013 2013

2014

2014 2014

1,086,114

757,732

468,382

in m3

cumulative water savings

As a resource-saving company, energy effi ciency is one of the most important objectives for REHAU: within the past fi ve years, we have reduced energy consumption by 7.6% and are working hard to improve this value even further in the years to come.

We take waste prevention seriously. Since 2012, we have reduced waste in our European plants by 7% relative to the quantity produced. With that, we’re actually above our objective.

Water consumption has been reduced by 17.2% compared to 2009. We have therefore already made huge strides, but will continue to work on using water even more effi ciently.

Water is a precious resource that is not available in equal quantities everywhere. Switching from open-circuit cooling to closed-circuit cooling is one of the ways we can achieve signifi cant savings.

Water usage per quantity produced

216,8340.476

290,417

0.476

158,962

0.423

in kg CO2/kg quantity produced

-25% based on 2009 fi gures

-25% by 2020based on 2009 fi gures

We conserve resources and protect the environment. That’s why we attempt to reduce emissions and save as much CO2 as possible – for example, through highly effi cient cooling units in combination with free cooling via dry coolers.

To achieve our objective by 2020, we have initiated several measures. Among other things, we will focus more on renewable energy in the future. In 2015, we expect a reduction of up to 0.373kg, which would amount to roughly 70% of the goal.

cumulative cO2 savings Specifi c cO2 consumption


2011 2012 2013 2014

2011 20112012 20122013 2013

0.2350.223

2014 2014

0.2270.220

Electricity [kWh/kg quantity produced] Gas [kWh/kg quantity produced]

Energy usage per quantity produced

-30% by 2020based on 2009 fi gures

-2% per year/tonnesquantity produced

Waste disposal EMEa (without the györ plant)

2012 20122013 2013

22,932

2,298

2014 2014

23,24823,992

2,3191,9841,984

Hazardous waste [tonnes]Non-hazardous waste [tonnes]

1.0421.050 1.0371.043

CO2 in tonnes

36

social responsibility with a long-term view

People drive REHAU: our employees are dedicated and an essential part of our long-term success as a company. So it’s important for us to be there for our employees and provide training and continuing education opportunities.

37

the importanCe of emploYee satisfaCtionour social responsibility

We want to create an attractive working environ-ment for our employees. One of the ways we do this is through our customised working time solutions: because we recognise the great importance of ensuring a good work-life balance, we offer options ranging from reduced full-time hours to variable working hours and mobile work. We also place great importance on training and continuing education. We analyse and support the capabilities of our employees so that they can continue to develop throughout their working lives. But the highest priority with regard to providing a good working environment is this: the safety of our employees. We believe in Vision Zero – accident- free operations – and work with our safety programme to make accidents in the workplace all but impossible.

Whether it’s our family-friendly conditions, development opportunities or safety in the workplace: these are the things that distinguish REHAU as an employer. For us, the satisfaction of our employees is extremely important. As a polymer specialist and innovative partner, we rely heavily on the creative ideas and initiatives brought forth by our employees. This dedication can also be seen in our suggestion scheme, in which any employee can submit ideas for improving process-es, procedures or products and thus advance their own prospects as well as those of the company. In other words: our employees are the engine of our success. Their passion and attention to detail have earned us a reputation of being able to achieve the impossible through intelligent system solutions. We aim to continue on this path and lay the groundwork for a promising future.

REHAU drives people and people drive REHAU. We place great importance on long-term customer and employee relationships, take responsibility for our employees, and understand that a good working environment is the key to success. Satisfied employees are the best employees. They feel good, are more engaged, please customers with their work and thereby shape the future prospects of the company.

SOCIAL RESPONSIBILITy

2012 2013 2014

27,565 28,23226,163

1.64% 1.68%1.58%

4.614.89

4.32

importance of the suggestion scheme

Idea rate in % Number of ideas

Savings [in million EUR]

Our employees are highly engaged around the globe. This can be seen in the numerous ideas that have been devised and submitted to us regarding the optimisation of processes and products, and which have saved us millions of euros.

Staff Hc (headcount)

Region 2013 2014

Europe 13,066 13,629

DE 8,301 8,622

CH 237 249

North America 1,594 1,762

Asia 2,357 2,452

South America 624 720

Africa 462 571

Total 18,103 19,134

Turnover rate 12.10% 11.60%

REHAU enjoys stable growth. Our workforce expands from year to year – especially in the automotive sector in ambitious countries in southern Europe and Asia. The staff turnover rate continues to go down.

38

Women in leadership positions

2013 2014

Total proportion of women

2013 2014

The new group structure presents many opportunities – and a few challenges. Our diversity management is in demand like never before. Our teams are becoming increasingly intercultural and our activities ever more global. This makes it especially important to manage diversity and exploit its potential to the greatest degree possible.

Four experts, twelve time zones, one goal A good example of the success of diverse teams is the construction of the new plant in Rosario, Argentina. To carry out the project, four REHAU experts from four countries worked together intercontinentally: the former Spanish plant director Josep Cid, the Argentinian chemist and engineer Martin yoma, the German business unit director Matthias Trager and the Chinese process engineer Jeffrey Guo. Their task was as exciting as it was demanding. They were charged with building a plant in just 12 months that would, in the medium term, produce window profiles for all of South America. But it wasn’t just the schedule that presented a challenge. Twelve time zones separated the four experts, not to mention many cultural differences. Moreover, they only seldom had the chance to see each other personally, and frequently had to coordinate by way of video conferences. But none of that stopped them from achieving their objective. They worked exceptionally well together as a team, with each one bringing their own particular strengths – from creative problem-solving approaches to outstanding organisational talent. For Jeffrey Guo it’s clear: “This mix was one of the reasons for our success.”

graduates on exchange Effective diversity is decided in the heads of those involved. To execute projects like Rosario with the same success in the future, we think beyond generations and national borders. We promote sensitivity for intercultural collaboration with special programmes, campaigns and initiatives – and we start with our youngest employees. We offer our trainees the opportunity to engage in technical exchanges with colleagues at numerous locations abroad. In the ’International REHAU Trainee Program’, we train university graduates around the world in joint training weeks as well as in project and foreign assignments for their professional activities with REHAU. And we encourage the development of international networks through events like the Alumni Conference in 2013. For the first time, some 50 graduates of the International REHAU Trainee Programme met with graduates of the Management Development Programme to discuss technical presenta-tions, receive training on various leadership issues and take advan-tage of the opportunity to speak with high-level executives. This represented an important step towards an even more open corporate culture that supports regular exchange between all levels of the hierarchy and all divisions of the company.

Managers support diversity Successful diversity requires good leadership. To promote this, we offer numerous diversity management seminars in addition to numerous language courses and other training opportunities – for example “Managing a Multigenerational Team” internationally, or “Managing Diversity – Diversity Training for Managers” in Germany. The objectives include identifying the individual strengths of each employee, making the best possible use of those strengths and enabling successful teamwork. This also depends on how well we are able to bridge large distances. After all, the employees in a team are often deployed at different locations. In workshops like “Leading from a Distance”, managers therefore learn how to work cooperatively and effectively with their employees across national borders and time zones. Going forward, this will help make success stories like the one in Rosario the rule rather than the exception.

promoting DiVersitYfocus on diversity management


Diversity at REHAU is more than just having an international team. For us, gender equality is also a matter very close to our hearts. Although we have increased the share of females across the entire company and particularly on the executive level, we still haven’t reached our objective: even greater integration of women throughout the company.

39

safe anD sounDworking conditions for employees

certified management and outstanding ideasHighest standards with a seal of approval: our administration office in Rehau has been certified according to OHSAS 18001 since 2008, with the certification extended again for 3 years in 2014. The plant for industrial products in Feuchtwangen became the first production location to receive certification in 2013. From 2015 onwards, we plan to have a further plant certified each year in order to make our working environment continuously safer. Our internal safety contests are another helpful instrument in the prevention of accidents. The contests offer our plant locations the opportunity to compete against each other annually, as well as in a ten-year comparison. In 2014, the tool factory in Rehau took the top honours – without accidents and with no downtime. Second and third went to the plants in Bangkok and Winnipeg, Canada. The Safety Award in the long-term competition also went to the tool factory. The ’your safety is valuable to us’ campaign that started in 2015 as part of the Safety Culture programme offers an incentive to promote safety in creative ways. When an employee notices hazard situations, submits an idea for an improvement and the idea is implemented, a financial bonus is awarded. The campaign thus rewards our employees for their dedication while making an important contribution towards an accident-free working environment.

the importance of health Our engagement goes beyond ensuring safe machinery and safe work processes. From regular occupational medical consultations to bonus programmes and age-appropriate information for our trainees – we offer a range of services to promote and protect the health of our employees. We also help in dealing with mental health issues: for example, seminars on resolving psychosocial problems have been included in the REHAU ACADEMy programme since 2012. We work hard to improve safety and maintain the health of our employees – and we will continue to expand our efforts in the future.

aiming for ZeroVision Zero – zero accidents and no work-related illnesses. We at REHAU are pursuing this objective together with our employees. To this end, we developed the Safety Culture programme with the slogan “Safety begins in your head” in 2014. The core of the project: we live our safety culture every moment of every day. The aim is to increase our employees’ awareness of potentially unsafe situations and promote a culture of looking out not only for our own safety, but also that of our colleagues. After all, seemingly small issues can often result in major damage – from missing protective equipment and potential trip hazards to damaged tools. We also address the safety of work processes in production meetings and pay closer attention to potential hazards during regular inspections. We then examine the results of these measures through analysis, monthly management meetings and action plans. We draw conclusions not only from accidents, but also from potential hazards, carry out intensive prevention work and continuously refine our accident prevention concepts.

The safety and health of our employees is a precious asset that we are committed to protecting at all times. Our employees benefit from uniform guidelines for health and occupational safety. With our accident prevention programme, we have consciously exceeded minimum standards and achieved great successes over recent years. Although we were not able to prevent all accidents in 2014, we remain among the very best in the industry in terms of occupational safety. A new, comprehensive programme is intended to help us become even better.


accident frequency 1

2011 2012 2013 2014

Locations in Germany 1.93 2.13 1.70 2.77

REHAU locations worldwide 3.44 4.15 3.82 4.86

1 Accident frequency: number of reportable accidents per 1 million working hours with > lost working days

40

Training and continuing education options are a priority for us in these times of transformation and internationalisation. For this reason, the REHAU ACADEMY added numerous interesting courses to its programme in 2013 and 2014.

individualised advancement – open for all Life-long learning is a principle that REHAU has supported and promoted since its founding. Our philosophy includes a commitment to enabling our employees to continuously improve their personal and professional skills and capabilities. With the assistance of the REHAU ACADEMy, line managers take responsibility for identifying and supporting the personal capabilities and potential of their employees. Through instruments such as the REHAU competence model, change management courses, leadership workshops or individual business coaching, we support our employees and managers in their efforts to master growing challenges and enhance their skills. Standardised compulsory courses in all plants also help to ensure that we achieve our globally applicable

product quality standards. Here we aim to re-double our efforts in the future: our development programmes for our young employees will be even more international in the near future and expanded to include specialist career paths as an alternative career path.

This helps us create an environment from which everyone benefits: our employees are more satisfied and even better qualified – and we build expertise in a targeted fashion. This enables us to react flexibly to changing conditions, learn more quickly as a community and find the right, innovative solutions.

Diversity for managers New structure, new courses: To ensure that the objectives of the re-oriented group structure have

eDuCation aCross the boarDnew off erings for employees


number of training courses at the administrative locations worldwide

The lower number of training courses in the years 2013/14 com-pared to previous years can be explained by restructuring measures and personnel changes, which resulted in not all training courses being off ered, reported or recorded

20132011 20142012

9351,301

9371,039

8,860

11,721

8,8739,380

Number of training courses

Number of participants2011 2012 2013 2014

106

189

89

206

653 657

54

221

56

212

599637

number of trainees in germany

Total number of trainees of which are new hires

of which are completing dual-study programmes

In 2014, we employed more trainees than ever before. The number of young people completing their studies during the time of their traineeship rose signifi cantly.

41

their intended effects as quickly as possible and changed processes proceed as smoothly as possible, we expanded the course offerings of the REHAU ACADEMy in 2013 and 2014 to meet those needs. For managers, a global set of courses and an educational landscape adapted to local requirements is available. The programme offers training courses and workshops on current and REHAU- relevant management competences. New and experienced managers can select from a series of topics and modules that build on each other systematically. For example, the new course “Managing Diversity – Diversity Training for Managers” also covers dealing successfully with the changed structures as many teams are working in a new, global composition. In this training course, managers learn to identify diversity and potential in their teams and to make the best possible use of them for the success of the group. Other seminars that deal with the group structure include “Change Management” and “Intercultural Sensitivity”. In the future, we will train our manag-ers even better: in 2015 and 2016, they will be trained to conduct regular, standardised compe-tence and potential assessments with employees in order to determine what they need and how they can continue to develop. This benefits all employees as well our company.

Feedback among equalsWe can all learn from each other. That’s why, in 2013, we introduced the 360° feedback worldwide for 171 managers. The managers received feedback on their leadership and managerial conduct through systematic discussions with colleagues, employees, internal customers and line managers. This constructive exchange enables targeted further development and improved cooperation. Feedback therefore takes place between equals – good for the employees and REHAU.

new ideas from outsideAs part of the restructuring, the REHAU ACADEMy also re-oriented itself and founded the Shared Learning Services team in 2013. Among other things, the team introduced the practice of having external education partners carry out part of internal training courses. This applies primarily to seminars in which no special REHAU themes are the focus, such as time management, communica-tion or presentation courses. The advantage of these courses: the combination of external and internal instructors increases the diversity and attractiveness of the highly professional seminars. The education partners also bring in fresh ideas from the outside. E-learning: digital path to success As a constantly growing company, we benefit greatly from the opportunities offered by electronic learning – and expanded it significantly in 2013 and 2014. Thanks to e-learning materials, we can qualify and efficiently educate many people in different locations at the same time. In recent years, thousands of employees have participated in our digital courses. In 2014 alone, more than 15,000 e-learning course were completed. We offered a total of 34 e-learning subjects in up to 11 languages. As if that weren’t enough, we want to offer an even broader range of subjects and make our educational offerings even more diverse and flexible in the coming years. Whether elec- tronically or in classroom courses: the variety of programmes for training and continuing education are an example of how important our employees and their life-long learning is to us.

42

Together with our employees, we take action to ensure a sustainable future. Every day, we work to make progress on issues not only through state-of-the-art technology, but above all through the personal engagement of individuals. Everyone has the opportunity to grow and do something good. What does that mean in practice? On World Water Day and during the REHAU Energy Days, for example, we carried out surprising measures to promote resource-saving processes. Water is the future

After agriculture, industry and companies are the biggest water consumers. The production of a car, for example, uses 250,000 litres. In light of increasingly scarce water reserves, this is a challenge that we must confront and want to confront – personal engagement for good water management is just one example. In the context of World Water Day in 2013, we drew attention to the issue at various locations worldwide, focusing on the poor water quality in many regions and presenting some of our own product solutions. Our employees at the Rehau and Erlangen locations, for example, got involved by buying water bottles with the REHAU product branding RAUTITAN – an idea that also came from REHAU employees. All proceeds from the campaign were donated to the organisation Viva con Agua, which works on drinking water and sanitation projects in developing countries. RAUTITAN is the name of the reliable universal pipes from our product portfolio that provide hygienic technology and long-term reliability in drinking water installations worldwide. This cannot be taken for granted everywhere. Some 1.2 billion people lack access to clean water. What can we do about it? Get involved – through personal effort, our innovative ideas and with all our passion.

Orange is the new red For many of our employees, the workday on 20 May 2014 began with a surprise. 8,500 orange stickers were found in many offices on printers, light switches, monitors, windows, heaters and doors. Orange, in this case, is the new red. Because the signal colour transmits a clear message: stop – namely unnecessary energy consumption. The stickers were the result of a trainee project that sensitises the young people for sustainable topics right at the beginning of their REHAU careers. In a workshop, the trainees developed ideas for saving energy. Their sugges-tions are as simple as they are effective. For example, they propose allowing as few devices as possible to run on standby, or avoiding printing out digital documents if at all possible. The stickers were a perfect fit for the REHAU Energy Days 2014 programme. In our auditorium, experts gave numerous presentations on the subject of energy efficiency. In addition, exhibitions and product presentations highlighted major challenges and intelligent solutions in the field of energy consumption.

suCCessful inVolVementemployees show their dedication


43

Developed in Germany, created for the world: our microbiogas system is strongly oriented towards the needs of people in developing countries. It features a multitude of characteristics that are especially advantageous in such regions.

Using cow dung for a better climateHome is not always the ideal place to be. The air in many households is so polluted that it can pose health risks. Worldwide, more than one in three people breathe air in their own homes that is dangerous for their health. This applies especially to developing and emerging countries in Asia and Africa. In these regions, many people burn coal or wood in open fires in order to cook or provide heat and light. To solve this problem and improve living conditions sustainably in these areas, REHAU has developed a microbiogas system that won the German Idea Prize in 2014. The reason: the plant impressed the panel with its socio-cultural, environmental and economic added value. “In Africa several families are already cooking successfully with the first REHAU-HomeGas trial systems.

The result is less CO2 and methane released into the atmosphere. Cooking without wood reduces the amount of smoke in the home and prevents respiratory illnesses”, explains Ingo von Ramdohr, Director of the REHAU Sales Office for International Business Development. The cost-effective and powerful microbiogas system is fired with cow dung, which also yields other benefits: the acquisition of cows also promotes milk sales. It therefore not only provides an additional source of income, but also helps rural regions regain some of their attractive-ness. Children and young people no longer have to spend their time gathering scarce wood for fires, thus leaving more time for schooling and other activities. By replacing the wood used for daily cooking needs, REHAU HomeGas also contributes towards reducing deforestation, which can lead to extreme drought conditions and devastating floods. So it all benefits the environment – worldwide.

Second-generation development assistance We got started in East Africa in 2012 by installing the first microbiogas systems in Kenya. Our engineers assisted in the operation of the HomeGas systems on site until mid-2013. They evaluated the effects

of direct sunlight and the gas requirements of local families in order to further improve the system. Meanwhile, we have made improvements to the microbiogas system together with our German partner AgroSci-ence in a second generation of the system and now aim to spread it throughout Kenya. We are supported in this endeavour by the Federal Ministry for Economic Cooperation and Development and the German Invest-ment Corporation. We have also engaged the University of Nairobi as a local manufacturing partner, which helps us expand production in Africa. We were able to sign the fabricator contract in 2014 and plan a workshop for the university with our engineers. Further steps will follow in 2015 to establish the university as a partner for series production: a REHAU expert will train the employees in Kenya, the workshop will be opened and production of the systems will begin. We want to promote distribution of the systems with a microfi-nancing concept with local partners, first in Kenya, followed by Ghana and ultimately other African countries. The microbiogas system unites the welfare of people withthat of the environment – a technology for the future.

maximum benefits with a miCroproDuCtaward-winning biogas plant helps against air pollution


© REHAU AG + Co Rheniumhaus 95111 Rehau

AV0700 EN 12.2015

Documents

sustain abilitY report - Rehau Group · 5 Values, Vision, growth a brief portrait of the rehau group Sustainable, passionate, innovative: REHAU stands for the future. As a family-run