The German Association for Financial Analysis and Asset Management (DVFA) Commission on Non-Financials (CNF) has been working since 2006 on the development of Key Performance Indicators for the integration of extra- and non-financial performance indicators on ESG (Environmental, Social, Governance), Sustainability, Corporate Governance and Risk Management into the established corporate analysis and investment decision methodology. We are actively participating in this discussion and are for the first time including the current state of the DVFA criteria (as at 2008) in our reporting. Until the time of writing the required data have not yet come to hand for all the criteria. Progress is to be shown annually.
SOLARWORLD AG // Key Performance Indicators of DVFA (Deutsche Vereinigung für Finanzanalyse und Asset Management)
| General Key Performance Indicators for Environment, Social and Governance Issues (KPIs for ESG) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Prio | Indicator | Name | Definition | 2008 | 2007 | 20091) | Comment | |
| 1 | 1 | ESG 1-1 | Total Energy Consumption | Total corporate energy consumption (primary & secondary sources) in MWh | 270,290 | 194,003 | N.R. | As in previous year a growth of some 40% is expected. |
| 2 | 1 | ESG 1-2 | Energy Intensity | Total corporate energy consumption / sales (Euro) | 300 | 281 | N.R. | Production figures are not disclosed. Production ramp-up leads to shortterm increase in energy intensity. Price developments could impair meaningfulness of indicator. |
| 3 | 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. |
| 4 | 1 | ESG 3-1 | Staff Turnover | Percentage of full-time employees leaving in year / total number of employees | 65 | 94 | N.R. | No difference is made between full time and part time. |
| 5 | 1 | ESG 4-2 | Training & Qualification | Average expenditure on training / employee in Euro | 382.12 | 387.37 | N.R. | Estimate. A uniform group-wide definition of training is being developed. |
| 6 | 1 | ESG 5-2 | Maturity of Workforce | Percentage of workforce to retire within the next 5 years of reported period | N.R. | N.R. | N.R. | Not significant; not yet identified for reporting purposes. |
| 7 | 1 | ESG 6-1 | Absenteeism Rate | Working times lost / employee | 50 | 42 | N.R. | Measured in hours rather than days. |
| 8 | 1 | ESG 7-1 | Restructuring related relocation of jobs | Total cost of relocation in Euro including indemnity, pay-off, outplacement, hiring, training, consulting | N.R. | N.R. | N.R. | Not significant; not yet identified for reporting purposes. |
| 9 | 1 | ESG 8-1 | Contributions to political parties | Contributions to political parties in Euro / revenue | 45,000 | N.R. | N.R. | |
| 10 | 1 | ESG 9-1 | Anti-competitive behavior, anti-trust, monopoly ractices | Expenses and fines on actions and law suits related to anti-competitive behavior, anti-trust and monopoly practices | N.R. | N.R. | N.R. | Not significant; not yet identified for reporting purposes. |
| 11 | 1 | ESG 10-1 | Corruption | Percentage of business in regions with Corruption Index below 6.0 | 16% | 10% | N.R. | Estimate; relates to trading segment only. Corruption Perceptions Index 2008. |
| 12 | 1 | ESG 11-1 | Customer Satisfaction | Percentage of satisfied customers as percentage of total customers | N.R. | N.R. | N.R. | No aggregate figure available (planned for 2009). Customer satisfaction could be increased for 70% of criteria. |
| 13 | 1 | ESG 12-1 | Revenues from New Products | Percentage of revenues from products with lifecycle shorter than 12 months | N.R. | N.R. | N.R. | Not yet identified for reporting purposes. |
| Sector specific Key Performance Indicators for Environment, Social and Governance Issues (KPIs for ESG) | ||||||||
|---|---|---|---|---|---|---|---|---|
|
|
Prio |
Indicator |
Name |
Definition |
2008 |
2007 | 20091) |
Comment |
| 14 | 1 | ESG 13-8 | CO2 Emissions |
CDP definition |
96,297 | 76,724 | N.R. | Estimate. |
|
15 |
1 |
ESG 14-8 |
NOx, SOx Emissions of all Production Sites; Entire Company |
GRI definition (tonnes) |
2 | 0.33 | N.R. |
Estimate. |
|
16 |
1 |
ESG 15-1 |
Waste |
Total waste related to production / number of units produced (in tonnes) |
9,322 | 11,488 | N.R. | Estimate, only reported absolutely as production figures (in MW) are not disclosed. |
|
17 |
1 |
ESG 16-2 |
Environmental Compatibility |
Percentage of ISO 14001 certified sites (weighted by average capacity) |
74% |
14% |
67% |
Not yet USA due to relatively small production / trading volumes (planned certification 2010 at earliest). |
|
18 |
1 |
ESG 17-1 |
End-of-lifecycle impact |
Percentage of material recovered for reuse at end of lifecycle of product |
N.R. |
N.R. |
N.R. |
Member of PV Cycle; products fully recyclable; goal: to maximize material recovery for new PV products; recycling of SOLARWORLD modules so far not significant due to reliable long-life technology. |
|
19 |
1 |
ESG 18-1 |
Diversity |
Female employees as percentage of total employees | 19% | 23% | N.R. | |
|
20 |
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.R. | N.R. | N.R. |
Ad-hoc screenings, but no formal process yet; to be institutionalized in future; largely internal suppliers (strategy of vertical integration) that are fully controlled (for this SOLARWORLD received the German Sustainability |
|
21 |
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 | 0 |
Only exchange of rubber seal. |
|
22 |
2 |
ESG 25-1 |
Litigation payments |
Total litigation payments in Euro |
N.R. | N.R. | N.R. | Not yet identified for reporting purposes. |
|
23 |
2 |
ESG 26-1 |
Dimension of pending legal proceedings |
Amount in dispute / controversy from legal proceedings |
N.R. | N.R. | N.R. | Not yet identified for reporting purposes. |
| 24 | 1 | ESG 27-1 | R&D expenses | Total R&D expenses in m Euro | 13.0 | 10.8 | N.R. | Development of spending on R&D in 2009+ will be in line with production growth. |
|
25 |
2 |
ESG 28-1 |
Patents |
Number of patents registered within the last 12 months |
25 | 6 | N.R. | Number of patents granted and applied for as per 31.12.2008: 211, divided into 95 patent families, of which granted patents: 131. |
|
26 |
2 |
ESG 30-2 |
Customer Retention |
Average length of time of customer relationship in years |
N.R. | N.R. | N.R. |
Not yet identified for reporting |
1) Target value
N.R. = not reported
DISCLOSURE TO GLOBAL REPORTING INITIATIVE STANDARD
GRI INDEX
| Disclosure to GRI standard | Page | Status | |
|---|---|---|---|
| 1.1 | Statement from the most senior decision-maker | 067ff., 072ff., 203f. |  |
| 1.2 | Key impacts, risks and opportunities | 055f., 072ff., 110ff., 116ff., 126ff., 210ff., | |
| 2.1 | Name of organization | 049 | |
| 2.2 | Brands, products, services | 056f. | |
| 2.3 | Operational structure | 052ff. | |
| 2.4 | Location of the organization’s headquarters | 052 | |
| 2.5 | Countries where the organization operates | 053f. | |
| 2.6 | Nature of ownership | 094 | |
| 2.7 | Markets served | 053f., 072ff. | |
| 2.8 | Scale of organization | 100ff., 110ff. | |
| 2.9 | Significant changes in size, structure or ownership | 124f., 139ff. | |
| 2.10 | Awards | 212f. | |
| 3.1 | Reporting period | 213 | |
| 3.2 | Date of last report, if applicable | 213 | |
| 3.3 | Reporting cycle (annual, biennial, etc.) | 213 | |
| 3.4 | Contact for questions on report or its contents | 214 | |
| 3.5 | Process for defining report content | 214 | |
| 3.6 | Reporting boundary | 214f. | |
| 3.7 | Limitations on scope of reporting | 215 | |
| 3.8 | Joint ventures, subsidiaries, leased facilities, outsourced operations | 215 | |
| 3.9 | Data measurement techniques | 215 | |
| 3.10 | Re-statement of information from earlier reports | 215 | |
| 3.11 | Changes in reporting scope, boundary or measuring methods | 215 | |
| 3.12 | GRI index | This table | |
| 3.13 | External assurance | 216 | |
| 4.1 | Governance structure of the organization | 057ff. | |
| 4.2 | Indication whether the Chair of the highest governance body is at the same time the Managing Director | 057ff. | |
| 4.3 | Details of unitary organization | N.A. | |
| 4.4 | Mechanisms for recommendations or instructions to the highest governance body | 057ff. | |
| 4.5 | Relationship between compensation for members of the highest governance body, senior executives, and members of the Executive Board on the one hand, and the organizations’ performance on the other | 216 | |
| 4.6 | Mechanisms for avoicance of conflicts of interest within the highest governance body | 057ff., 067ff., 216 | |
| 4.7 | Qualifications and expertise of members of the highest governance body with respect to sustainability topics | 216 | |
| 4.8 | Statements of mission, code of conduct, principles | 050f. , 067ff., 087ff., 098f., 110ff., 216 | |
| 4.9 | Procedures of highest governance body for overseeing sustainability performance | 067ff., 087ff., 216 | |
| 4.10 | Procedures for evaluating the highest governance body’s own sustainability performance | 217 | |
| 4.11 | Precautionary principle | 087ff., 090ff., 126ff., 217 | |
| 4.12 | External agreements, principles or initiatives | 082f., 217 | |
| 4.13 | Memberships | 218f. | |
| 4.14 | Stakeholder groups | 220 | |
| 4.15 | Selection of stakeholders | 220 | |
| 4.16 | Engagement of stakeholders | 080ff., 084ff., 110ff., 221 | |
| 4.17 | Key topics and concerns raised by stakeholders | 221 | |
| 5. | Management approach EC, EN, LA, HR, SO, PR |
050f., 067ff., 087ff., 110ff., 222ff. | |
| Economic | |||
| EC1 | Direct economic value generated and distributed | 226 |  1,3) |
| EC2 | Financial implications due to climate change | 227 | |
| EC3 | Coverage of organization’s defined benefits plan | 227 | 2) |
| EC4 | Financial assistance received from government | 227 | |
| EC5 | Entry level wage compared to local minimum wage | Additional indicator | Data |
| EC6 | Selection of locally based suppliers | 227 | |
| EC7 | Locally based hiring of employees | 227 | |
| EC8 | Infrastructure investments and services provided mainly for public benefit | 228 | |
| EC9 | Indirect economic impacts | Additional indicator | N.M. |
| Environmental | |||
| EN1 | Materials used | 228 | 3) |
| EN2 | Recycling input materials | 228 | 2,3) |
| EN3 | Direct primary energy consumption | 229 | 1) |
| EN4 | Indirect primary energy consumption | 229 | 1,2) |
| EN5 | Energy savings | Additional indicator | Data |
| EN6 | Initiatives for energy efficiency and renewable energy | Additional indicator | Data |
| EN7 | Initiatives to reduce indirect energy consumption and reductions achieved | Additional indicator | Data |
| EN8 | Total water withdrawal | 229 | 1) |
| EN9 | Impact of water consumption | Additional indicator | N.M. |
| EN10 | Water recycled and reused | Additional indicator | N.M. |
| EN11 | Land in or adjacent to protected areas or areas of high biodiversity value | 229 | |
| EN12 | Impact on biodiversity | 229 | |
| EN13 | Habitats protected or restored | Additional indicator | N.M. |
| EN14 | Strategies for protection of biodiversity | Additional indicator | N.M. |
| EN15 | Threatened species | Additional indicator | N.M. |
| EN16 | Greenhouse gas emissions | 229 | |
| EN17 | Other relevant indirect greenhouse gas emissions | 230 | 2) |
| EN18 | Initiatives to reduce greenhouse gas emissions | Additional indicator | Data |
| EN19 | Emissions of ozone-depleting substances | 230 | |
| EN20 | NOx, SOx and other air emissions | 230 | |
| EN21 | Total water discharge | 230 | 1,2) |
| EN22 | Waste by type and disposal method | 231 | 1,2) |
| EN23 | Significant spills | 231 | |
| EN24 | Hazardous waste under Basel Convention | Additional indicator | N.A. |
| EN25 | Impact of water discharges on biodiversity | Additional indicator | N.A. |
| EN26 | Initiatives to mitigate environmental impacts | 231 | |
| EN27 | Packaging materials | 231 | 2) |
| EN28 | Sanctions for non-compliance with environmental laws and regulations | 231 | |
| EN29 | Environmental impacts of transporting products | Additional indicator | Data |
| EN30 | Environmental protection expenditure | Additional indicator | Data |
| Social | |||
| LA1 | Total workforce by employment type, employment contract and region | 232 | 2,3) |
| LA2 | Employee turnover | 232 | 2,3) |
| LA3 | Benefits to full-time employees | Additional indicator | Data |
| LA4 | Employees covered by collective bargaining agreements | 232 | |
| LA5 | Minimum notice periods regarding significant operational charges | 233 | |
| LA6 | Employees represented in health & safety committees | Additional indicator | N.M. |
| LA7 | Injuries, occupational diseases, lost days, absenteeism and work-related fatalities | 233 | 3) |
| LA8 | Education and training on serious diseases | 233 | |
| LA9 | Health & safety topics covered in agreements with trade unions | Additional indicator | N.M. |
| LA10 | Initial and further training for employees | 234 | 2) |
| LA11 | Programs for skills management and life-long learning | Additional indicator | N.M. |
| LA12 | Performance and career development reviews for employees | Additional indicator | Data |
| LA13 | Composition of governance bodies | 234 | 2,3) |
| LA14 | Ratio of basic salary of men to women | 235 | 2,3) |
| HR1 | Investment agreements | 235 | |
| HR2 | Screening of suppliers and contractors on human rights | 235 | |
| HR3 | Training on aspects of human rights | Additional indicator | N.A. |
| HR4 | Incidents of discrimination | 235 | |
| HR5 | Freedom of association and collective bargaining | 235 | 2) |
| HR6 | Child labor | 235 | 2) |
| HR7 | Forced and compulsory labor | 235 | 2) |
| HR8 | Training of security personnel | Additional indicator | Data |
| HR9 | Violations of rights of indigenous people | Additional indicator | N.A. |
| S01 | Impact on communities | 236 | 2) |
| S02 | Risks related to corruption | 236 | |
| S03 | Training in anti-corruption policies | 236 | |
| S04 | Corruption incidents and action taken | 236 | |
| S05 | Lobbying | 236 | |
| S06 | Contributions to political parties, politicians and related institutions | Additional indicator | N.M. |
| S07 | Legal actions for anti-competitive behavior | Additional indicator | N.A. |
| S08 | Sanctions for non-compliance with laws and regulations | 236 | |
| PR1 | Impacts on customer health and safety | 236 | |
| PR2 | Non-compliance with health and safety regulations and voluntary codes | Additional indicator | N.A. |
| PR3 | Product information | 236 | |
| PR4 | Non-compliance with codes concerning product labeling | Additional indicator | N.A. |
| PR5 | Customer satisfaction | Additional indicator | Data |
| PR6 | Standards related to advertising | 237 | |
| PR7 | Non-compliance with marketing standards | Additional indicator | N.A. |
| PR8 | Breaches of customer data privacy | Additional indicator | N.A. |
| PR9 | Sanctions for non-compliance with product and service regulations | 237 | |
| + | Confirmation | 238 | |
| + | No appropriate sector supplements exist | N.A. | |
