Total Productive Management (TPM) − SolarWorld  Scorecard: perspectives processes and customers − increases process effectiveness by identifying “best practice” examples (e.g. set-up workshops) and translating them into group-wide process standards. TPM covers not only Production but also Technical Service, Logistics and the IT Department. The objective is to make the working areas leaner and to avoid losses. In the process, internal target values serve as guide figures for cost reduction and efficiency improvement. This continuous improvement forms the very basis for further innovations. One of the target indicators is the identification of “Overall Equipment Efficiency”, which is the product of (machine) availability, performance/efficiency and quality. At the Freiberg location the TPM Cup has been awarded since 2009. It backs up our ideas and innovation management at the site.  Managing ideas with the company suggestion system In the course of our growth in the USA we also intensified our local TPM. The 2009 results confirm that TPM leads to cost reductions. In the year under review, for example, we succeeded in saving a double digit million euro amount through specific TPM projects.

Customer Relationship Management (CRM) – SolarWorld Scorecard: perspective customers − is designed to guarantee the best possible service for our customers. To this end we have to respond to customer needs specifically. For example, in 2009, SolarWorld introduced the black module in its product range at the request of customers because, for certain customer groups, visual appeal plays a crucial role.  Innovation targets and priorities 2009

Quality Management (QM) – SolarWorld  Scorecard: perspecitves customers and processes – ensures the quality of our processes and products by way of defined standards. We define quality on the basis of the demands of our customers. The top-level control variable is the degree of customer satisfaction. In addition, we also permanently check the product quality of our external suppliers within the context of our quality management system. By way of regular audit and evaluation procedures we guarantee the stable and high quality of the products and merchandise of our suppliers.  Critical selection of suppliers pays off – supplier capital Almost all SolarWorld sites worked according to quality standard ISO 9001 in the year under review. At our US production site Hillsboro we are striving for certification in the first half of the year 2010.

Environmental Management (EM) − SolarWorld Scorecard: perspectives processes and society − continuously improves our resources utilization. Environmental policy is therefore an integral part of our quality policy. With our integrated quality and environmental management we counteract the risks in the process chain and guarantee group-wide quality, process, and environmental standards with according gains in efficiency. Target agreements and measures derived from these are stipulated annually. In this process we set ourselves internal reduction targets for energy consumption as well as for waste, waste water and CO_2eq emissions in order to increase our eco-efficiency. Our targets exceed the legal requirements. Since the target values serve internal control purposes, they are not disclosed, but the performance achieved is reported annually.

This is how we again identified our annual CO₂ balance in 2009: According to provisional estimates the GHG emissions in 2009 increased in line with production growth by 44.6 per cent to 139,300 (previous year: 96,300) tCO_2eq. We were able to improve our average emission intensity, i.e. emissions per produced Watt peak: They dropped to 164.5 (previous year: 175.8) gCO_2eq/Wp. During the average module life span of 25 years it is possible to save some 4.6 million (previous year: 3.1) million tCO_2eq with the modules sold by us in 2009. This will help avoid costs for environmental damage amounting to €318.9 million (previous year: 219.7 m€). If you compare the CO_2eq emissions avoided by our modules with the CO_2eq emissions caused by our company the result is a positive CO_2eq balance for SolarWorld. The emissions avoided continue to exceed the emissions caused by a factor of 33.  Report on sustainable corporate management

Within the framework of environmental management, concrete measures are planned and implemented at the individual locations. In addition, we expedited preparations for the introduction of the certification according to ISO 14001 in the USA in 2009. In 2010 SolarWorld will have group-wide certifications in accordance with both ISO 9001 and ISO 14001.

Internal environmental audits and annual identification of the indicators serve to check the efficiency of the measures and the degree of target achievement. In addition, the Environmental Management Officers report to management on the basis of an internal target/actual comparison.

External environmental communication is handled by Investor Relations in the context of our sustainability reporting in accordance with the Global Reporting Initiative (GRI) and through publication of the data in the annual Carbon Disclosure Project (CDP). An internal environmental reporting system as well as audit reports and regular management reports ensure that all management levels in the SolarWorld Group are well informed. Our environmental reporting system includes a multi-facetted statistics network concerning waste, emissions, waste water and power statistics as well as auxiliary material and consumables statistics. At this point we would like to refer you to the presentation of the ecological performance indicators in the Report on sustainable corporate management.

By means of our Health and Safety Management – SolarWorld Scorecard: perspectives processes and employees – we create safe working conditions for our employees and support them in protecting their health. In 2009 meetings of the occupational safety committees, occupational health screenings, hazard analyses as well as occupational safety and protection seminars were conducted on a regular, group-wide basis. All group companies have their own Safety Officer available. In addition, we employ special safety engineers at the production companies.

Group-wide, health and safety management is rapidly merging. As a result of interaction of the new and older locations, the system is being further developed and standardized. In data collection, differing definitions may occur due to varying general legal conditions. These differences are disclosed in the indicator section of the GRI Report. Report on sustainable corporate management

Risk Management – SolarWorld Scorecard: all perspectives – is a tool that covers all business areas. We record risks group-wide in all departments. Deviations from early indicators show the existence of short- to medium-term risks. By way of the Scorecard performance drivers, we can identify the long-term risks. Opportunity and risk management system

Internal Auditing is carried out by an independent staff department attached to the Management Board’s Finance unit. The object of the audit is to determine the effectiveness of the Internal Control System (ICS). In addition to being oriented towards the past in the form of the (Re-)Assurance, the Internal Audit also has a consultative and directional function in that it also examines the degree to which our processes make sense.

In addition to the management tools mentioned we prepared the SolarWorld Code of Conduct in the year under review and completed it in a version ready for approval. The contents were developed in a group-wide exchange with colleagues. Furthermore, legal compatibility with German and US law was verified. The Code constitutes a voluntary, group-wide behavioral standard regulating our activities in areas where no economic or legal framework conditions have been formulated or where the existing ones are insufficient from the SolarWorld point of view. The Code of Conduct is therefore binding on a group-wide basis. It is based on applicable national and international law. At the end of the year under review the Code of Conduct was submitted to the Freiberg works council for general approval.

On the interlinking of our management tools please also see the Sustainable corporate management