Wienerberger Sustainability Report 2016
Smart Solutions Sustainable Solutions Demand
Holistic Thinking and Acting
For years, Wienerberger has made every effort to integrate classic financial optimization with a style of corporate governance guided by sustainability targets. A holistic and integrated approach provides the basis for our successful corporate strategy and our self-imposed commitment to continuously improve our ecological, social, societal and economic performance. We are consistently pursuing the ambitious targets laid down in our Sustainability Roadmap 2020. We are convinced that, in the long term, companies acting in full awareness of their responsibility, contributing to the improvement of people’s quality of life today and ensuring the wellbeing of future generations, will be among the more successful ones.
Indicators from the Wienerberger Group 2016 compared to the previous year:
Quantitative targets and our performance in 2016
Introduction by the Chief Executive Officer
Ladies and Gentlemen,
We have the courage to take a new approach. The Wienerberger Group is the technology and innovation leader of its sector of industry. Looking toward the future, we are ready to embark on a course of continuous further development. This is our way of addressing the challenges confronting us in an environment of ongoing transformation. The essential issue for us is to put the right questions – and to find adequate answers. This is how Wienerberger generates “Smart Solutions”.
The world is facing major challenges: preserving peace, fighting against poverty and hunger, providing food, drinking water and energy for a growing world population, supporting and integrating refugees and displaced persons, generating sustainable economic growth while ensuring humane working conditions, health and education for all, reducing inequalities within and between countries, limiting the volume of greenhouse gas emissions and adjusting to climate change, adopting responsible consumption patterns in view of the growing scarcity of resources, preserving eco-systems, coping with urbanization and strengthening the resilience of urban communities. The United Nations have incorporated these challenges in their 2030 Agenda for Sustainable Development and defined 17 Sustainable Development Goals to be reached by 2030. As the technology and innovation leader of our industry, we consider it our duty to contribute to the achievement of these goals, especially in view of the fact that many of the challenges referred to, such as climate change, the scarcity of resources, humane working conditions, urbanization and demographic change, directly or indirectly concern Wienerberger.
In 2016, we succeeded in reducing our specific energy consumption by 1.3% from the previous year’s level, and the specific CO2 emissions from our ceramic production came down by 3.3%. We are going to consistently pursue this course.
Climate change demands that we fight against its root causes and adjust to its consequences. The main cause is well known: the rise in greenhouse gases present in the atmosphere as a result of the world’s increasing consumption of fossil sources of energy, above all oil and coal. Our products are highly energy-intensive: in 2016, Wienerberger’s total energy consumption amounted to approx. 7,590 GWh. We are making consistent efforts to reduce our energy consumption and to rely, above all, on energy sources generating the lowest possible volume of specific CO2 emissions. Our goal is to achieve a 20% reduction in the specific energy consumption of our major business units by 2020, as compared to 2010.
At the same time, we are developing forward-looking smart solutions that should enable us to better cope with the consequences of climate change, such as the increasing frequency of extreme rainstorms. In 2016, for instance, we completed a lighthouse project for the construction of tornado-proof houses in Tuscaloosa, Alabama, in cooperation with Habitat for Humanity.
Today, more than half of the world population lives in cities; by 2050, according to a UN study, it will be two thirds. If so many people are to live together peacefully in a confined space, healthy, affordable and socially acceptable housing as well as functioning infrastructure solutions are indispensable. Wienerberger is continuously working to develop new, innovative products, system solutions and services for these applications. In this context, we regard an innovation-oriented corporate culture and proximity to our customers as crucial factors of success. In 2016, we invested close to 1% of our revenues in research and development and in future-oriented products. As a strong partner in new residential construction, renovation and infrastructure, we generated 27% of our revenues through innovative products. All our business units achieved or outperformed their individual targets. We intend to further pursue this course in the years to come.
Wienerberger currently employs a workforce of almost 16,000 people. They are the key to the successful future development of our company. Our objective is to be the preferred employer in our markets. We attribute great value to diversity and equal opportunities, a motivating work environment, the consistent involvement of our employees, a culture of open communication, and attractive initial and further training options.
As an industrial producer, ensuring occupational health and safety for all our employees is our top priority. Zero accidents throughout the Group is our yearly target.
Thanks to our Group-wide safety standard and the individual safety programs of our business units, we were able to reduce the frequency of accidents by 18.4% and the severity of accidents by 15.5% in the Wienerberger Group, as compared to the previous year. Despite our efforts, one fatal occupational accident each occurred in the Wienerberger Group and in a 50% subsidiary of Wienerberger’s. We deeply regret these accidents. We have further intensified our efforts to improve the safety of our employees.
Cultural diversity and decentralized structures characterize Wienerberger’s corporate identity. We regard regionally recruited teams as a crucial factor of our success. In our human resources planning, we therefore make every effort to employ local staff and executives, which enables us to gain a better understanding of the local market and to consider the specificities of the region in decisions taken at Group level. It is our policy to give preference to women for new appointments to senior management and executive positions, provided the candidates’ qualifications are equal. In 2016, 12% of Wienerberger’s senior management positions were held by women, which corresponds to a 50% increase over the previous year’s level. The satisfaction and motivation of our employees are the basic prerequisites for positive human resources development. The average length of service with the company remained high at 13 years in 2016. We regard this as a strong vote of confidence in the Wienerberger Group from our employees. The ongoing employee survey will be rolled out to all local companies of the Wienerberger Group by 2018; its results will provide the basis for measures to further improve the degree of employee satisfaction.
In a world of digital transformation, Wienerberger is directly affected by issues of data usage and data security. Digitalization concerns every segment of our company and covers the entire range of our value chain.
In our production, we see great opportunities in networking and in advanced technologies, as this enables us to meet individual requirements at short notice and to adjust to our customers’ needs.
At present, we are working on the implementation of our digital agenda. It covers a broad range of topics, from product development to webshop marketing, from production processes to supply chain management, from customer apps to integrated 3D planning in real time. Within the framework of our digital agenda, we are working intensively on projects for all our product groups. We are opening up new fields of business and playing a leading role in the digital transformation of our industry. As regards data security, we apply strict rules to protect the interests of our customers, employees and suppliers.
When we signed the UN Global Compact in 2003, we officially acknowledged our responsibility as a corporate citizen. We actively promote business ethics, we see to it that the ten principles of the UN Global Compact are consistently implemented, and we advocate “good corporate citizenship” throughout the Wienerberger Group. Our 2016 Communication on Progress in respect of the UN Global Compact is reproduced on pages 96 to 100.
In the coming years, we will continue to work intensively on the achievement of our targets and the implementation of the corresponding measures. I will be pleased if you continue to follow our progress.
About this Report
Wienerberger reports once a year on the Group’s non-financial indicators. In accordance with past practice, publication of a full Sustainability Report alternates with a concise update presenting the most essential facts and figures. The 2015 Sustainability Update was published in June 2016. The 2017 Sustainability Update will be published in June 2018.
This Sustainability Report covers Wienerberger’s activities in 2016. The figures contained in this report also refer to the years 2014 and 2015 to show a three-year trend. The report focuses on the ecological and social aspects of Wienerberger’s activities and their impact on society. For more detailed information on Wienerberger’s economic performance, its organizational profile and its corporate governance structure, please refer to the 2016 Annual Report
This report covers the fully consolidated subsidiaries of the Group with operations in the wall, roof, façade, ceramic pipe, plastic pipe and concrete paver product groups. A list of all companies covered by the consolidated financial statements is contained in the 2016 Annual Report of Wienerberger. Sustainability reporting follows the scope of consolidation of the Wienerberger Group, but includes Tondach Gleinstätten only from the reporting year 2015. The majority of Tondach Gleinstätten, the leading producer of clay roof tiles in Central and Eastern Europe, was taken over in July 2014 and is now part of the Clay Building Materials Europe (CBME) Division of the Wienerberger Group. As the structures required for the collection of non-financial indicators first had to be integrated in the course of 2014, the indicators and activities of Tondach Gleinstätten are not yet included in the data for 2014. Deviations from the reporting scope are indicated in the respective sections. Moreover, the data presented in the chapter “Production” only refer to our production sites, whereas all other data include all sites of the Wienerberger Group. For details on the scope of consolidation and the segmentation of the Wienerberger Group, please refer to Wienerberger’s Annual Report.
The topics and key indicators presented in the report were elaborated by subject-specific working groups in cooperation with the Corporate Sustainability Officer. The decisions were taken by the Wienerberger Sustainability Steering Committee (SSC).
This Sustainability Report was prepared in accordance with the current G4 guidelines of the Global Reporting Initiative (GRI), “core option”.
The data presented in this Sustainability Report are based primarily on internal statistics. Important topics were validated by an independent external auditor. In the year under review, the audit focused on facts and figures regarding occupational safety, health, employee turnover, energy consumption and emissions. The audit also covered the underlying sustainability management system and the processes employed to collect data and to implement the sustainability strategy.
UN Global Compact:
Communication on Progress 2016
The activities of big industrial companies, such as Wienerberger AG, have a strong impact on society and the environment. Such companies therefore bear a special responsibility and should act in an exemplary manner. The minimum standards to be complied with include, above all, the principles of the UN Global Compact regarding human rights, labor standards, environmental protection and the fight against corruption. Through its accession to the UN Global Compact in 2003, Wienerberger officially committed to the ten principles and undertook to foster their implementation within the framework of the company’s possibilities. Once a year, we report on progress achieved in this respect.
The 2016 Communication on Progress in respect of the Global Compact forms part of our 2016 Sustainability Report. In order to ensure maximum transparency andto make it easier for our readers to find the individual examples, we have aggregated the most important state-ments on the ten principles and, in addition, marked the corresponding indicators in the GRI Index and added references to the pages concerned.
We want to be the most highly regarded producer of building materials and infrastructure solutions and the preferred employer in our markets. We share our values, our knowledge, our experience and our success.
We improve people’s quality of life by providing outstanding, sustainable building material and infrastructure solutions.
The primary goal of our entrepreneurial activities is to achieve a sustainable increase in the value of the company in accordance with ecological, social and economic principles.
Expertise – Passion – Integrity and Respect – Customer Orientation – Entrepreneurship – Quality – Responsibility
Our values form the basis of our entrepreneurial activities. We live by our values and share them in our day-to-day cooperation.
Annual Report 2016
If you want to know more about the indicators of Wienerberger please click here:annualreportwb.com