SolarWorld AG - Annual Report 2009 - Sustainability - GRI, Global Compact, DVFA

GRI, Global Compact, DVFA

KPI’s for ESG (Key Performance Indicators, DVFA)

The German Society of Investment Professionals (DVFA) Commission on Non-Financials (CNF) has been working since 2006 on the development of Key Performance Indicators to integrate extra- and non-financial performance indicators on ESG (environmental, social and governance issues), sustainability, corporate governance and risk management, into established corporate analysis and investment decision methodology. We are actively participating in this discussion and are for the second time including the DVFA criteria (status: 2008) in our reporting. Up to today, the data are not yet available for all criteria, but progress is indicated annually.

THE KEY PERFORMANCE INDICATORS OF THE DVFA

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General Key Performance Indicators for Environmental, Social and Governance Issues (KPI‘s for ESG)
Prio	Indicator	Name	Description	2008	2009	2010	Comments
1	ESG 1-1	Total Energy Consumption	Total corporate energy consumption (primary & secondary sources) in MWh	269.600e	368.002e		As in previous year a growth of similar size (underproportionate to production increase) is expected.
1	ESG 1-2	Energy Intensity	Total corporate energy consumption in MWh/sales in €	300	363e		Strong increase in production, production figures are not disclosed, price drop of some 30% in the module and kit market in 2009.
1	ESG 2-3	Renewable Energy	Investments in renewable energy consumption as percentage of total investments	100%	100%	100%	Due to the business field all investments are connected to the use of renewable energies.
1	ESG 3-1	Staff Turnover	Percentage of full-time employees leaving in year	3,6%	9,3%		No distinction has been made hitherto between full-time and part-time. (In the 2008 report absolute figures were quoted)
1	ESG 4-2	Training & Qualification	Average expenditure on training/employee (in €)	382,13	356,53		Expenditure on training by external providers has hitherto not been included.
1	ESG 5-2	Maturity of Workforce	Percentage of workforce to retire within the next 5 years of reported period	n.a.	2e%		Estimate (basis: employees aged 60+): 20 employees at German sites, 27 at US locations, no employees at locations in Spain, Singapore and South Africa.
1	ESG 6-1	Absenteeism Rate	Working times lost/employee	2,5%	3,4%		Causes of increase so far not known.
1	ESG 7-1	Restructuring related relocation of jobs	Total cost of relocation in T€ including indemnity, pay-off, outplacement, hiring, training, consulting	n.a.	427		Data not yet collected in this aggregated form, but values available for 2009 in the USA (including indemnities, outplacements, extended health insurance).
1	ESG 8-1	Contributions to political parties	Contributions to political parties in k€/revenue	45	40		To promote renewable energies and climate and resource protection SolarWorld exerts social influence. In this context we also give financial support to individuals, parties and associations who work in favor of renewable energies.
1	ESG 9-1	Anti-competitive behaviour, anti-trust, monopoly practices	Expenses and fines on actions and law suits related to anti-competitive behavior, anti-trust and monopoly practices	n.a.	0
1	ESG 10-1	Corruption	Percentage of business in regions with Corruption Index below 6.0	16e%	31%		2009 incl. wafers for first time; Wafers: 53%, Trade: 7%
1	ESG 11-1	Customer Satisfaction	Percentage of satisfied customers as percentage of total customers	n.a.	> 85%		Aggregate figure (trade) Satisfaction analysis (wafers) will come to hand in Summer of 2010.
1	ESG 12-1	Revenues from New Products	Percentage of revenues from products with lifecycle shorter than 12 months	n.a.	35%

Specific Key Performance Indicators for Environmental, Social and Governance Issues (KPI‘s for ESG)
Prio	Indicator	Name	Description	2008	2009	2010	Comments
1	ESG 13-8	CO_2eq emissions	CDP definition (in CO_2eq)	96.310e	139.278e		Estimate. With strong production increase in 2009.
1	ESG 14-8	NO_x, SO_x emissions of all production sites; entire company	GRI definition (in tonnes)	2,05e	3,5e		Estimate. With strong production increase in 2009.
1	ESG 15-1	Waste	Total waste related to production (in tonnes)	9.383e	13.010e		Estimate, only absolutely specified, as production figures are not disclosed (strong production increase in 2009).
1	ESG 16-2	Environmental Compatibility	Percentage of ISO 14001 certified sites (weighted by average capacity)	74%	64%		USA not yet certified due to relatively small production/trading volumes (strong production increase in year 2009).
1	ESG 17-1	End-of-lifecycle impact	Percentage of material recovered for reuse at end of lifecycle of product	Ca. 0%	Ca. 0%		Products fully recyclable; goal: to maximize material recovery for new PV products; recycling of SolarWorld modules (“scrap”) so far not significant due to reliable long-life technology (so far very little recovered material in relation to newly produced goods). Recycled material (production and semi-conductor waste) used in manufacturing; “reject” approx. 20% of silicon consumption. Member of PV Cycle
1	ESG 18-1	Diversity	Female employees as percentage of total employees	19%	22%		Ratio of women fell from 2007 to 2008 due to relocating US wafer and cell production from Camarillo (solar and semi-conductor market with high percentage of women) to Hillsboro (solar and semi-conductor market with low percentage of women); by now group-wide share of women close to 2007 level again
2	ESG 23-1	Supplier agreements and supply chain partners screened for compliance with ESG	Number of suppliers screened for compliance with ESG as percentage of total number of suppliers	n.s.	n.a.		Supplier agreement exists since end of 2009 and will be incorporated into contracts in 2010.
2	ESG 24-2	Health & Safety aspects of products	Number of product recalls for safety or health reasons as percentage of total products sold or shipped	0	0
2	ESG 25-1	Litigation payments	Total litigation payments in k€	n.s.	17e		Amount rounded. Extraordinary influence: Trademark lawsuit in the USA (payments for the litigation not neatly separable from payments for settlement, therefore not included).
2	ESG 26-1	Dimension of pending legal proceedings	Amount in dispute in k€	n.s.	42e		Amount rounded. Active litigation, counter-claims and cases with no fixed amount in litigation are not considered.
1	ESG 27-1	R&D expenses	Total R&D expenses (in m€)	13,0	11,8
2	ESG 28-1	Patents	Number of invention claims registered within the last 12 months	18	28		Our control variable is the number of inventions claimed and not the number of patents registered (value for 2008 was appropriately adjusted).
2	ESG 30-2	Customer Retention	Average length of time of customer relationship in years	n.s.	6e		Have hardly ever lost customers, but are steadily gaining new ones; in the market for 11 years; Number of specialist partners rose by 20% to about 500 in 2009.

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The DVFA

THE DVFA has for years been considered the trend setter for industrial standards, like for example the German Standards for Financial Research (Deutsche Grundsätze für Finanz-Research = DGFR), the standards for effective financial communication as well as the rating and validation standards.

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