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December 2014 • VOL 12 • ISSUE 5 €7.70

Bringing Down the Trade-Talk Wall: Eighth Transatlantic Business Conference

Cover Story: Doing Well by Doing Good Investment Region: Growth Company Forum: Helping Start-Ups Business Barometer: Keeping a Positive Outlook BIG SOLUTIONS

FOR A GROWING PLANET Dan Hickman, Fellow Reaction Engineering, Core R&D

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Corporate Social Responsibility: More Transparency and Commitment Needed

Managing with foresight, dealing fairly with employees, taking responsibility for society and the environment – these are the pillars of corporate social responsibility (CSR). For Germany, an exporting country committed to the social market economy, the question of corporate respon- sibility plays a key role in complying with international labor and social standards. By means of

CSR, companies underscore that they want to give something back to the societies whose re- © BMAS sources and infrastructures they use. Many German and European companies accept this respon- sibility and attach increasing importance to integrating CSR into their core business activities. By Federal Minister of Labor and Social Affairs doing this, they also gain clear competitive advantages. After all, there is growing demand among consumers for products manufactured in a socially and environmentally responsible manner. Companies that enjoy an excellent reputation among the general public are the first to see job applications from well-trained specialists. And business partners and investors develop more trust in companies that base their strategies on transparent and sustainable principles. For too many companies, But not all companies are aware of this. That was brutally demonstrated when the responsibility ends at their Rana Plaza clothing factory in Bangladesh collapsed in April 2013, leaving 1,100 peo- own factory gates ple dead and twice that number injured. For too many companies, responsibility ends at their own factory gates, while the working conditions in suppliers’ operations and at production sites in emerging countries are overlooked. How can we change that? In my view, a major step forward would be for as many companies as possible to systematically examine their business activities in order to gain a clear understanding of the social consequences. Some may feel this requires extra effort, but it is essential for responsible conduct. That is the only way to tackle negative effects and reinforce positive outcomes. For these reasons, I very much welcomed that the European Commission further developed its under- standing of CSR in 2011, placing greater focus on companies taking responsibility for their impact on society. We need greater transparency, greater responsibility and greater commitment when it comes to respect for human rights and compliance with international agreements on labor and social standards. Especially in Germany, we need a discussion on how political leaders and the business community can work together to see these standards are implemented around the globe. As the world’s fourth-largest economic power, it is appropriate for Germany to take a leading role in this area. That also applies to the upcoming implementa- tion of international framework agreements such as the United Nations Guiding Principles on Business and Human Rights and the recently adopted EU directive on CSR reporting requirements. In this process, I con- sider it important to mobilize companies that have done too little in the past as well as to encourage those already living up to their responsibility to develop even further. Good work worldwide is a core objective of CSR. It is one I would like to strongly champion in the years ahead. Those who would like to join me in this effort are very much welcome!

Networking at Its Best Annual Membership Meeting on May 8, 2015, in

Our Annual Membership Meeting constitu- you to the 112th Annual Membership Mee- tes the highlight of each year's calendar of ting in Berlin. If you would like to sponsor events. this event, please contact: This year’s motto is Digital Transformation Monika Kreutz – New Opportunities for Transatlantic Part- T +49 30 288789-22 nership. We look forward to welcoming E [email protected] For more information, visit www.amcham.de

December 2014 commerce germany 3 contents

cover stories

6 Corporate Social Responsibility: Doing Well by Doing Good

14 Eighth Annual Transatlantic Business Conference: Bringing Down the Trade-Talk Wall

from amcham germany members

13 executive member spotlight: Innovation in the Field – A Sustainable Approach to Africa’s Agriculture

24 member know-how: Outsourcing of Strategic HSE Management; Responsibility for People and the Environment

amcham germany member support

10 policy issues: TTIP Committee Meets with US Embassy Representative

18 investment region: Thuringia Taking Center Stage

19 key studies: Business Barometer – US Companies Maintain a Positive Outlook

amcham germany events

9 special report: Growth Company Forum Fosters Start-up Scene

20 event report

26 special event report: Patron and Executive Member Roundtable

chamber news

22 Board Meeting Features Tricultural Executive Dinner

22 amcham germany in the press

23 BizCamp Nurtures the Next Generation of Business Leaders

25 new members 27 chamber calendar

December 2014 commerce germany 5 cover story Corporate Social Responsibility: Doing

Corporate commitment to advancing social well-being benefits all of us – including the companies that take a strategic approach to their activities. Three AmCham Germany member companies explain how doing good helps them do well.

Scouting the Right Corporate Social Responsibility Project

Do a good turn daily” – the traditional Public Health, AstraZeneca launched the Young support for projects, fundraising, in-kind dona- boy- and girl-scout slogan has long since Health Program to improve the quality of young tions and – last, but not least – volunteering. found its way into business. This concept people’s lives worldwide. Since needs differ After all, the program’s success also substantially “is about far more than just being a do- among regions, we draw support from local part- depends on the commitment of our employees gooder. Corporate social responsibility (CSR) has ners in 18 countries. Our shared goal is to reach who personally participate either by acting as become a key component of corporate strate- 1 million young people over a period of five years mentors or providing direct local assistance. On gies because companies that properly use their to encourage them to take responsibility for their our CSR action day AlleZusammen (everyone potential by assuming responsibility will reap own health. together), for example, our employees rolled up advantages others will not. One example of this program at work is their sleeves to serve a good cause, and – just A commitment to society certainly has a posi- our project for homeless children in . like with the scouts – an exemplary community tive effect on a company’s image – but this is not We have teamed up with the local association spirit quickly became the order of the day. „ the only added value these kinds of activities gen- basis & woge to commit ourselves to helping erate. CSR projects also foster staff development, improve the long-term living conditions of home- team building and employee motivation. When less youth in Germany. We support healthcare choosing such projects, the golden rule is to con- projects like hygiene classes sider the core business and not just provide fi- and employment opportunities nancial assistance, but also the needed expertise. that foster personal responsibil- ity and offer new prospects for CSR projects also foster staff Taking responsibility these young people that extend development, team building beyond life on the street. and employee motivation As a pharmaceutical company, we decided to work on behalf of healthcare – because health Creating community spirit Dirk Greshake Managing Director is society’s greatest asset, and promoting it is AstraZeneca Deutschland our daily business. Working with experts at Plan Our Young Health Program www.astrazeneca.de International and the Johns Hopkins School of rests on three pillars: financial

6 commerce germany December 2014 ▸ ▸ Consider the core business Well by Doing Good ▸ ▸ Take note of heightened ESG risk ▸ ▸ Create structure to manage sustainability

Sustainability Management as Part of Daily Life

he simultaneous and balanced pursuit of most sustainable led to the The standardized, universal business, environmental and social-policy creation of a clear structure to objectives is a demanding task for any introduce sustainability man- management structure has Tcompany. To achieve business goals and agement within the group. enabled the group to anchor effectively use financial resources, companies This structure includes stan- sustainability into its daily work need strategic orientation as well as adequate dardized steering committees management tools. and a uniform reporting sys- Prof. Gerhard Prätorius As an example, consider the sheer size of the tem for sustainability through- Head of Sustainability & Political Communication Volkswagen Group: 580,000 employees work at out the group. Volkswagen Group www.volkswagenag.com 107 production sites around the world, and in The board of manage- 2013 the group earned almost €200 billion in ment has responsibility for sales. On top of that, the number of independent making central decisions and is the highest au- Achieving good sustainability ratings brands under the group’s umbrella ranges from thority for sustainability both in the group and Audi and Porsche to ŠKODA and SEAT to MAN for every brand and important region. The CSR Thanks to this standardized, universal man- and Scania. This makes managing sustainability & Sustainability Group Steering Committee dis- agement structure, the group has been able to a challenge. cusses and adopts the details of the strategy as anchor sustainability issues into its daily work. well as sustainability reporting. This committee Clear reporting channels, lean structures, IT- Standardizing sustainability includes all key group functions – finance, per- based data generation and reporting are all es- sonnel, compliance, quality assurance, environ- sential for the effective management and com- Sustainability has been part of our daily work ment, procurement, communication and external munication of activities at a company of our size. for quite awhile, but in recent years, we have relations – as well as representatives from major The good rankings the group has achieved in made additional important progress as part of brands, regions and the works council. The com- established sustainability ratings and indexes are our group’s Strategy 2018. The mandate to be- mittee is supported by the CSR & Sustainability an indication that these efforts are being noticed come not only the most exciting and successful Office, which coordinates all group sustainability and recognized. „ automaker in the world by 2018, but also the activities.

December 2014 commerce germany 7 cover story

Inspiring Responsible Investments

ince 1985, Permira funds have made more has established manda- than 200 private equity investments that tory worldwide stand- It’s critical to also identify oppor- focus on driving transformation to build ards that also apply to Sbetter businesses. Today, our funds own a the company’s suppliers. tunities for value creation through large portfolio of more than 25 companies op- These standards address deploying sound ESG practices erating in a broad range of industries. Many of sound labor and work- these companies operate globally through sub- ing conditions, health Jörg Rockenhäuser sidiaries, sales and suppliers. As a result, they are and safety, and environ- Managing Partner, Germany Head of ESG Group exposed to heightened environmental, social and mental protection. Permira Beteiligungsberatung GmbH governance (ESG) risk, particularly from their op- www.permira.com erations in emerging markets. Setting standards One of the most inspiring examples in our German portfolio concerns the leading high-end The global fashion house is committed to owned by the company and at most of its sup- fashion retailer Hugo Boss, which we have been complying with internationally recognized labor pliers. Detailed audit reports are prepared and investing in since 2007. The company has inter- and social policy standards that fall in line with shared with suppliers. This process has resulted national production, sourcing and sales opera- the conventions of the International Labour Or- in improvements in social compliance systems, tions and pays close attention to ESG issues. It ganization (ILO) and the Universal Declaration of health and safety, fire regulations and documen- Human Rights of the United Nations. The compa- tation of hazards as well as yielded measures ny’s social policy standards, which also constitute that benefit the workers at the company’s own a contractual requirement that suppliers must facilities and those of suppliers. fulfill, include nondiscrimination, the prohibi- tion of child and forced labor, maximum working Achieving success hours, humane working conditions, payment of adequate wages, healthy and safe working con- Mitigating ESG risk is critical but identifying ditions, and entitlement to freedom of associa- opportunities for value creation through deploy- tion and collective bargaining. ing sound ESG practices in a company’s business Compliance is a criterion for new business operations and supply chains is as well. In 2012, partners as well. Since our fund began invest- we initiated a thorough ESG review of all our ing seven years ago, Hugo Boss has established portfolio companies as part of work to strengthen an extensive compliance and risk management and formalize our ESG investment-management program, including a global audit program that systems. We are convinced the performance and has reviewed all of the company’s 280 active success of our portfolio companies depend on suppliers. Social compliance audits (internal and these companies taking a responsible approach external) are performed annually at the facilities to sustainability. „

Responsible Business Conduct 10 Years of Best Practice in Corporate Responsibility (CR) Corporate Responsibility FRANKFURT BUSINESS MEDIA (formerly future. Contributions on best practices F.A.Z.-Institut) joined AmCham Germany will present innovative and exemplary 2015 in 2005 to engage with AmCham CR activities by German, US and multi- Germany member companies to bring national companies located in Germany. together a cross-disciplinary CR publica- tion. The 2015 edition aims to analyze For further information, please contact:

Jubiläumsausgabe – Bestandsaufnahme und CR developments over the past decade Nastassja Wohnhas Zukunftsperspektive für Corporate Responsibility as well as to identify challenges that still T +49 30 288789-28 remain and need to be tackled in the E [email protected]

For more information, visit www.amcham.de

8 commerce germany December 2014 special report

Growth Company Forum Fosters Start-Up Scene

Pictured here are (from left): Florian Nöll, Chair of the German Startups Association (BVDS); David Knower, AmCham Germany Vice President; Erik Heinelt, BVDS Board Member; Tim Dümichen, Partner at KPMG; Emerson; Reiche; Andreas Povel, AmCham Germany General Manager; and Uli Veigel, the Handelsblatt.

▸ ▸ Cultivating the German start-up landscape ▸ ▸ Encouraging risk-taking ▸ ▸ Promoting innovative business concepts

I am often asked how to recreate Silicon keynote speakers, providing advice to start-ups, the forum, the committee will focus on discussing Valley in Germany. But Valley envy is a poor high-growth companies and policymakers as well the steps to take for improving the start-up scene guide to success,” US Ambassador John B. as information about IPO options in Germany. in Germany and fostering a culture of willingness “Emerson advised participants at the first- German high-growth companies 6Wunder- to take risks rather than one of avoiding mis- ever Growth Company Forum on Oct. 16 in Berlin. kinder, Cytolon and Delivery Hero were also on takes. The committee will also explore opportuni- Indeed, building an entrepreneurial ecosystem hand to give presentations on such topics as spark- ties for transatlantic cooperation in the support would mean tailoring a suit to fit its own local ing interest in investors and the cultural differences of innovative business ideas. dimensions, style and climate, the US ambassador between the US and Germany with respect to “The greatest potential of the German-US said. But where the US seems to have cultivated a seeking venture capital. Also addressing the topic relationship lies in the business culture,” AmCham vibrant start-up scene, Germany is still struggling. of venture capital was Irena Goldenberg of Germany President Bernhard Mattes stated, As a result, AmCham Germany, the Ger- Highland Capital Partners of Europe. In addition, adding: “German engineering coupled with the man Startups Association and KPMG teamed participants had the opportunity to present their US business spirit is a recipe for success.” „ up to host the event and present opportuni- own business ideas during pitch sessions. ties to invest in high-growth companies as The event also served as a springboard for ▸ For more information, please well as discuss equity financing in Germany. AmCham Germany to found a new Entrepre- contact Barbara Biemann at Dr. Cord Gebhardt of Deutsche Börse AG neurship Committee headed by Ludwig von [email protected] and Oliver Heimes of Lakestar also served as Reiche. Building on the successful outcomes of

Goldenberg on selecting a venture capitalist: "[It’s] Reiche welcomes guests to the well-attended event Steffen Kiedel, CEO of 6Wunderkinder, said US inves- like choosing a partner; it should be someone you like on behalf of AmCham Germany. tors took more risks and negotiated faster than their and someone you want to spend time with.“ German counterparts.

December 2014 commerce germany 9 policy issues

TTIP Committee Meets with US Embassy Representative

Berlin, Sept. 8. William E. Craft, Jr., Deputy Assistant Secretary of the US Department of State at the US Embassy in Berlin was the special guest at this TTIP-focused meeting. Titled TTIP 2014 – Expectations, Views and Outlook, the event gave committee members the opportunity to discuss current TTIP developments with Craft.

Encouraging Public Dialogue on TTIP , Oct. 7. The first TTIPBürgerdialog (pub- lic dialogue) was held in cooperation with the organization Europa Union Deutschland in order to address the public’s concerns about the agree- ment and help alleviate Spökenkiekerei (fear mongering). Hot topics among participants in- cluded investor-state dispute settlements and the lack of transparency in the negotiation directives.

Business of Healthcare Social and Labor Affairs C ommittee Spurs Discussion Committee Looks at Labor Law

State Talks throughout Germany Berlin, Oct. 9. Dr. , MdB (CDU/CSU), was invited to meet with members of this committee to discuss topics related to labor Between July and October, members of the Business of Healthcare Com- law, including the introduction of a quota for women, minimum wage and mittee traveled across Germany to meet with representatives from various flexible pensions. state ministries for its annual Ländergespräche (state talks) series. Discus- sions focused on the conditions for Germany as a business location for the healthcare industry as well as the complex Act on the Restructuring of the Pharmaceutical Market (AMNOG) and governance. The talks took place in North Rhine-Westphalia, Saarland, Baden-Wurttemberg, Hesse, Saxony- Tax Committee Tackles Base Anhalt and Rhineland-Palatinate. Erosion and Profit Shifting Conversation on Telemedicine Berlin, Sept. 24. Members of this committee met with Martin Kreienbaum Berlin, Sept. 12. The committee’s activities also included a meeting with of the Federal Ministry of Finance and Ingrid Arndt-Brauer, MdB (SPD), Dr. , MdB (CSU/CDU) and Member of the Parliamentary to discuss such topics as the Organization for Economic Cooperation and Committee on Health, that explored the advantages of telemedicine. Development’s Action Plan on Base Erosion and Profit Shifting.

10 commerce germany December 2014 Environment & Energy Committee Talks Renewables

Berlin, Sept. 25. , MdB (SPD), and , MdB (SPD), were featured guests at this committee meeting that discussed the Renewable Energy Act (EEG), grid access and mobility.

Corporate Responsibility Committee Discusses Diversity

Berlin, Oct. 27. Strategies for the implementation of diversity and inclusion were discussed at this committee meeting, which included presentations by Aletta Gräfin von Hardenberg, General Manager at Charta der Vielfalt e.V.; Uta Menges, Diversity & Inclusion Leader at IBM Deutschland; and Brigitta Wortmann, Senior Political Adviser at BP Europa SE.

Business of Healthcare Committee Focuses on Big Data and Health

Berlin, Nov. 7. Members of this committee met with , MdB (CDU/CSU), and , MdB (CDU/CSU), to discuss eHealth as well as Big Data and the advantages this new area presents for the healthcare industry.

December 2014 commerce germany 11 access your global network

Restoring Balance: Brazil

▾ ▾ Why is Brazil an interesting investment loca- How is the Brazilian economy faring in the ▸ ABOUT AMCHAM BRAZIL tion for US investors? face of the global economic crisis? AmCham Brazil is the largest American Chamber of Commerce outside the US. It ▵ ▵ Brazil is the seventh largest economy in the The Brazilian economy was impacted by the has 14 offices in the country’s major cities world, boasting a $2.4 trillion GDP. Most major crisis, especially during 2009 when the country’s with headquarters located in São Paulo. multinational corporations have a second or third GDP increased by just a modest 0.2%. It recov- AmCham Brazil has 4,800 member compa- operation located in the country. Brazil’s domestic ered in 2010, rising by 7.5%. Since then, GDP nies of different sizes and from various market has grown exponentially over the last 15 has shown moderate growth of around 2.0% per economic sectors, including industry, agri- business, services and mining. years, and expansion in consumption has triggered year. As a result of rising lending, the housing and demand for more enhanced services in all sectors. service sectors are growing faster than others. The country is also investing in its infrastructure, Agribusiness and mining are additional booming agement skills. One other area of our work is which will impact all sectors of the economy. industries propelled by exports. improving government relations between Brazil and the US. „ ▾ What are some key aspects of the US-Brazil ▾ How does the work of AmCham Brazil sup- economic partnership? port its members?

▵ The US is Brazil’s second largest trading part- ▵ AmCham Brazil fosters interaction among ner after . The exports between the two major companies operating in Brazil. In addi- Gabriel Rico countries grew 11.4% in the first half of 2014, tion, we promote training programs and provide CEO AmCham Brazil and the flow of commerce is expected to reach valuable information on foreign trade. We also Rua da Paz 1431 $60 billion by the end of this year. AmCham organize commercial missions for Brazilian and CEP 04713-001 São Paulo T +55 11 4688-4102 Brazil works to establish trade agreements and US entrepreneurs who want to expand their E imprensa@amchambrasil. com.br improve the business environment in the country. businesses abroad and improve their man- W www.amcham.com.br amcham germany asks 4

▾ What aspects of transatlantic relations work ▾ What was the last book you read? Yousafzai, who has received the Nobel Peace best? Prize, is another. ▵ I always read a business-related book and a ▵ In terms of regulations, the minimal duties on novel concurrently. The last business book I read ▾ What is your favorite place in the US or Ger- imports and exports of most raw materials and was “Lean In” by Sheryl Sandberg. What a great many and why? consumer products between the EU and the US book – Sandberg encourages women to proac- is quite helpful. This could be further improved tively decide to achieve their career vision and to ▵ I have lots of places that I love in both the US through agreements to completely eliminate stick together more strongly. The novel was “Die and Germany. But where I need to return to every them. The “safe harbor” between the EU and US Bücherdiebin” by Markus Zusak, a very interest- now and again is the island of my heart: Nor- for the exchange of personal data by stakehold- ing book as it was written from the perspective derney in the North Sea. Walking on the beach, ers in the economy has worked well in the past. of Death during World War II. cycling through the dunes or enjoying the sunset It may need to be further strengthened but cer- with a glass of wine in the famous Milchbar feels tainly not abandoned. ▾ What is your favorite German or American like heaven to me! „ food or dish? ▾ What changes to the transatlantic relation- ship are necessary? ▵ When I lived in the US, I fell in love with sweet potatoes – baked, fried or mashed. ▵ Many regulations in the EU and US have the Isabel Hochgesand Managing Director same objectives of consumer protection and ▾ Who, living or dead, do you admire most? Head of Supply Chain safety or of minimizing environmental impact, Procter & Gamble Germany ▵ GmbH & Co. but the rules and standards can be very different. I admire people who stand up for their be- Sulzbacher Str. 40 This makes it difficult and costly for companies. liefs, show courage and fight for freedom of 65824 Schwalbach am Taunus T +49 6196 89-01 Avoiding the duplication of requirements that speech. Fortunately, I could mention many peo- E [email protected] serve the same purpose would help business. ple, starting with Martin Luther King, Jr.; Malala W www.de.pg.com

12 commerce germany December 2014 executive member spotlight

AGCO mechanization boosts productivity. AGCO’s Future Farm near Lusaka, Zambia, provides education and training on agronomy, cropping and mechanization. Innovation in the Field: A Sustainable Approach to Africa’s Agriculture

Today, 239 million people, or 23% of the population in sub-Saharan Africa, ▸ ABOUT THE COMPANY suffer from the effects of hunger. AGCO, Your Agriculture Company, (NYSE: AGCO), a Fortune 500 company founded in 1990, offers a full product line of tractors, his is the case despite the ambitious aims this platform, the company is addressing the combines, sprayers, hay and forage equip- of the UN’s 2015 Millennium Develop- challenges facing agriculture in Africa and pro- ment, seeding, tillage and grain-handling ment Goals (MDGs) to eradicate extreme moting a dialogue to encourage businesses to and animal-protein infrastructure as well as hunger and poverty. In Africa, 40% of invest in the future of the continent. related replacement parts. AGCO agricultural T products are sold under the core brand children under the age of five AGCO’s Future Farm concept names of Challenger®, Fendt®, GSI®, Massey A SHORT VIDEO OF are stunted due to malnutrition, also supports farmers in Africa Ferguson® and Valtra® and are distributed estimates the UN’s World Food THE MODEL FARM CAN with a unique opportunity to globally through 3,150 independent dealers Programme. BE VIEWED HERE: develop agricultural knowledge. and distributors in more than 140 countries. Investments in agriculture ▸ www.youtube.com/ It does this through the practi- The company is headquartered in the US in can have a huge impact on many watch?v=BGbX3bQiPCg cal demonstration of mechanized Duluth, Georgia, and has more than 20,000 employees in 20 countries worldwide. of Africa’s poorest people. In sub- solutions using AGCO products Saharan Africa, some 70% of the people live in and the integration of crop production solu- rural areas and depend on agriculture for their tions from our partners. In addition, it provides livelihoods. As Africa is richly endowed with wa- a chance to build knowledge in complementary Dr. Rob Smith ter and arable land, unlocking this agricultural areas like crop establishment, crop protection Senior Vice President and General Manager potential could prove the catalyst to achieving and crop nutrition as well as to receive train- Europe, Africa, Middle East economic growth. As a result, it is clear that in- ing on the best use, service and maintenance AGCO International GmbH Victor von Bruns-Str. 17 vesting in agriculture is one of the best ways to of mechanized products. AGCO’s Future Farm 8212 Neuhausen am Rheinfall reduce poverty in Africa. in Lusaka, Zambia, is the first such Future Farm. T +41 52 725-2200 With these initiatives, AGCO is not only E [email protected] AGCO’s commitment to Africa strengthening its position in the region, but also W www.agcocorp.com delivering on its mission: To provide high-tech AGCO, the world’s leading agricultural equip- solutions to farmers feeding the world. nology-based solutions for African farmers offer ment manufacturer, is promoting discussion and The challenges are great, but the window of the best opportunity for a more prosperous and action through its annual Africa Summit. Using opportunity is greater. Mechanization and tech- resilient Africa. „

December 2014 commerce germany 13 special feature

TRANSATLANTIC The Transatlantic Marketplace: Business Conference Challenges and Opportunities Beyond 2014 Eighth Annual Transatlantic Business Conference Dr. Heinrich Hiesinger Strategic inspiration and impulses for the economic and political partnership Chairman of the Executive Board ThyssenKrupp AG

Ulrich Grillo BDI President John B. Emerson US Ambassador to Germany

Anthony L. Gardner US Ambassador to the EU

Bringing Down the Trade-Talk Wall

Frankfurt/M, Nov. 11-12. Chlorhühnchen. Over the course of the Eighth Annual Transatlantic Business Conference, this provocative word popped up in just about every speech, panel and workshop. The image of chlorinated chicken developed into a symbol for the chasm between the truth about TTIP and the public’s emotional response to it. Whether prompted by a running joke or serious debate, decisionmakers from both sides of the Atlantic always came back to TTIP as they examined future industrial, digital and regulatory developments.

he electricity generated by the 25th anni- for Relations with the US. “Brussels is confident knowledged this rift, saying the US government versary of the Berlin Wall falling was still the Republicans will give Obama the green light no longer understands Germans’ fears and val- palpable on Nov. 11 as Michael Reuther, to fast-track TTIP,” he said. ues. “We have lost the people who were instru- TMember of the Board of Managing Direc- European acceptance of TTIP seemed to be an mental in sustaining the US-German relationship tors at Commerzbank, rang in the conference entirely different story. Panel Moderator Klaus- from the German side,” she explained. from atop his company’s downtown landmark. Dieter Frankenberger, Senior Editor for Foreign Other panelists noted that as Germany backs The discussion was also influenced by anoth- Affairs at the Frankfurter Allgemeine Zeitung, away, the US has shifted its focus to a techno- er political event: the midterm elections in the US reflected on the fears dominating last year's con- logically strong Asia. “Both the US and Germany that created a new Republican-dominated Con- ference and asked, “Is German opposition to TTIP are falling far behind Asia in terms of innovation gress. This signaled good news for transatlantic collateral damage from the NSA scandal?” and productivity,” said panelist Dr. , trade, explained David McAllister, Member of the Executive Director of the Bertelsmann Foun- President of the European Investment Bank. Jim European Parliament and Chair of the Delegation dation, Washington, DC, Annette Heuser ac- Clifton, Chairman and CEO of Gallup, challenged

14 commerce germany December 2014 Hoyer’s focus on innovation as a measure of an econo- accused businesses in Europe of not making a concerted my’s success, claiming: “Innovation has no value until effort to change public perception. “We can’t reduce the idea there’s a customer standing next to it.” Dontai L. Smalls, Vice President of Global Public Af- of TTIP to a tariff agreement. fairs at UPS, remarked on a lack of awareness in the US, It’s a game-changer.” Playing to win noting his company’s efforts to take TTIP’s message to Dontai L. Smalls, Vice President the rank and fi le in US trade unions. With such targeted of Global Public Affairs at UPS Renewed warnings of the transatlantic relationship’s measures, he said, employees will more likely see the ■ critical state continued to be heard at the conference topic as relevant and can effectively push it forward. “We’re not strong enough the next day. “Mistrust of the US has grown in Germany, to get into growth mode but this can’t lead Germany to turn away from the US,” Battling protectionists and demographics on our own, so why not partner warned opening speaker Ulrich Grillo, President of the with our big brother?” Federation of German Industries (BDI). John B. Emerson addressed the conference for the Kasper Rorsted The full-day event’s fi rst panel focused on TTIP as a second year in his role as US Ambassador to Germany. CEO of Henkel pillar of transatlantic growth and prosperity. Conference “Opposition to TTIP has become a symbol to which crit- ■ veteran Ferdinando Beccalli-Falco, President and CEO of ics of globalization and of Brussels have rallied,” he ob- “Our top priority should be GE Europe and CEO of GE Germany, said his company served. He congratulated AmCham Germany and BDI on to strengthen the conviction already operates without borders. Though other panelists their efforts to explain the deal’s importance to Europe- and confi dence that has defi ned agreed their business strategies would not change if ans, but he stressed that global players still have a ways our relationship since the end TTIP negotiations fail, they still stressed its importance: to go. “We lost the fi rst round of TTIP in the court of of World War II.” Elimination of tariffs and of multiple inspections and ac- public opinion because many did not show up,” he said. John B. Emerson counting systems would greatly lower operating costs. Emerson concluded his remarks by challenging the US Ambassador to Germany The problem with the current approach to TTIP, ac- audience to build lasting bridges with young people on ■ cording to Kasper Rorsted, CEO of Henkel AG & Co. both sides of the Atlantic. “When the Berlin Wall came “Cultural differences in the KGaA, is: “We’re not playing to win; we are playing not down, it felt like anything was possible – and it still is,” acceptance and usage of pharma- to lose.” The only way both sides could accomplish any- Emerson said. “But the younger generation does not ceuticals will always be there.” thing would be to talk about why they want to work have that visceral connection to the US.” Prof. Andreas Barner together instead of turning the whole deal into a fi ght “We forget that we are different,” said Dr. Heinrich Chairman of the Board of Managing Directors at Boehringer Ingelheim over chlorinated chicken, he explained. Hiesinger, Chairman of the Executive Board at Thyssen- David A. Ricks, Senior Vice President of Eli Lilly & Krupp, in his keynote speech. Germany’s strength lies in ■ Company and US Co-Chair of the Trans-Atlantic Busi- its innovative industry, and the US’s in IT, he said. “The “Europeans need to realize ness Dialogue (TABD), brought the theoretical discus- mistake comes when each side sees the other’s strengths that TTIP is more important sion some perspective: “Harmonized regulation may be as its own weakness instead of examining how they to them than to the US.” the goal, but that won’t be accomplished by TTIP.” He could enhance each other through partnership.” David McAllister Member of the European Parliament and Chair of the Delegation for Relations with the US

■

“Europe has to take action to create a data infrastructure similar to the US.” Timotheus Höttges CEO of Deutsche Telekom

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“Solving critical issues is only possible on a basis of trust Opening panel and mutual understanding.” Dr. Heinrich Hiesinger Chairman of the Executive Board at ThyssenKrupp

■

“Europe and the US are two large markets with a long shared history, and we want to have a shared future.” Martina Koederitz General Manager of IBM Germany David McAllister Annette Heuser Dr. Werner Hoyer

For full coverage of the event, please visit www.transatlantic-marketplace.com

December 2014 commerce germany 15 special feature

ORGANIZERS What a digital world On a more abstract level, the panelists touched on Germans’ and Americans’ divergent approaches to Tempers fl ared in the closing panel of the day mod- risk. Where German entrepreneurs may fear that failure erated by Mathias Müller von Blumencron, Editor in could mean the permanent end of a career, heads of Chief of Digital Media at the Frankfurter Allgemeine failed Silicon Valley start-ups get hired again and again Zeitung. Much of the friction in this discussion of the because of their experience, Höttges said. world’s networked future concerned the dichotomy between network providers and providers of network Uncovering the source IN COOPERATION WITH platforms. Representing the former view, Timotheus Höttges, In his dinner speech, US Ambassador to the EU CEO of Deutsche Telekom, lamented the lack of trail- Anthony L. Gardner asserted: “Germany stands to gain blazing Internet giants in Germany, asserting it was a the most from TTIP.” As to TTIP’s potential for stimulat- sign of economic weakness. In response, IBM Germany ing growth, Gardner warned that “neither Europe nor CO-ORGANIZERS General Manager Martina Koederitz pointed to Germa- the US has the luxury of passing on this opportunity.” ny’s focus on manufacturing products instead of devel- Responding to critics’ call for transparency, he did oping the services that currently drive the US tech sector. say he hoped the Commission would publish a draft pro- “Even at IBM, we’ve seen products take a backseat to posal for stakeholder comment before confi rming the their associated services,” she explained. agreement. He also criticized the opposition demanding The conversation eventually turned to the harmo- more information on the deal: “Either you hate it or you PARTNERS nization of standards for data protection and whether know nothing about it,” he said. “You have to choose.” network providers should be held to the same stand- Going a step further, he challenged the NGOs publicly ards as software providers. “It’s going to be very diffi cult decrying the agreement to “live by their words, step out to move forward on digitization if the playing fi eld is of the shadows and admit who is fi nancing them.” not level,” Höttges said. Matt Brittin, Vice President of In the end, it wouldn’t be the job of the US to sell Northern and Central Europe Operations at Google, ac- the deal in Europe, he said. Rather, it would be German knowledged that historical reasons for the different lev- business leaders. Addressing those in the audience, he els and forms of regulation across sectors have become said: “You play a critical role in helping the public under- less relevant. Ideally, he said, intensifi ed competition stand what’s at stake.” Perhaps they can start by fi nding SUPPORTERS would also increase the number of choices for consum- a new mascot to replace the chlorinated chicken that’s ing and sharing data within a preferred level of privacy. been running the show so far. „

David A. Ricks Heiner Herkenhoff Wolf Lichtenstein Klaus-Dieter Frankenberger

MEDIA PARTNERS Jim Clifton Martina Koederitz Mathias Müller von Blumencron Kasper Rorsted

DINNER RECEPTION HOST

Michael Reuther Prof. Andreas Barner Dr. Claus Jeschek Stefan Domsch

16 commerce germany December 2014 Dontai L. Smalls Ferdinando Beccalli-Falco

Morgan Lewis Workshop

Dr. Robert Weber Dr. Reinhard Geissbauer Frank Riemensperger

DIN Workshop

Matt Brittin Timotheus Höttges

Tying It Together TTIP’s potential impact on various sectors was addressed in multiple workshop sessions.

onference participants took their re- conducted by Accenture Managing Directors respect to emerging markets, which was exempli- sponsibility as TTIP ambassadors Dr. Claus Jeschek and Stefan Domsch. Both pre- fi ed in a workshop hosted by Morgan Lewis. Ac- seriously in the event’s workshop ses- senters advised companies to avoid taking an cording to Dubai-based Partner Ayman A. Khaleq, Csions. “Legal standards for minimum unstructured “cowboy approach” to digitization mergers and acquisitions in emerging markets IT benchmarks are relevant to TTIP,” stated and instead combine creativity and a structured require company managers to make sure all em- Deborah Klein, Senior Manager for Security and line of attack to quickly test their digital ideas ployees involved understand how to comply with Raw Materials at BDI, during a workshop on against reality. the various international laws – no matter how standardization in cybersecurity sponsored by arbitrary they seem. DIN e.V. Especially within the context of Industry The paperwork of trade 4.0, Germany is playing a major role in develop- Friendship over fi nance ing digital standardization and IT security, said A cool-headed approach is also essential for Volker Jacumeit from DIN e.V. those in charge of compliance at multinational Divergences in international regulation are The particulars of digitization and the benefi t companies, the target group for White & Case's also a cause of confusion in the fi nancial sec- Industry 4.0 holds for businesses in all sectors workshop on transatlantic trade regulation. tor as was evidenced in Commerzbank’s work- were outlined in another workshop hosted by Dr. Robert Weber, Partner at White & Case, shop. Given that two-thirds of the worldwide PricewaterhouseCoopers (PwC) and its partner explained how US trade sanctions have injured the bond market operates between the US and company Strategy&. Through the integration of business practices of several German companies. EU, streamlining transatlantic regulation was an iPod-based survey, workshop participants “Imposing economic sanctions is the fi rst line of urgent, explained Heiner Herkenhoff, who rep- were able to weigh in on the topic’s relevance for attack in confl icts nowadays,” added his colleague resented Commerzbank on the panel. Daniel their own businesses and compare these experi- Kenneth A. Caruso. Both warned compliance depart- Caspary, Member of the European Parliament, ences with results from PwC research. ments to stay informed of foreign laws, sanctions also warned that domestic short-term solutions Historical developments that foreshadowed and boycotts that could impede their business. to fi nancial market problems may seem attrac- the digital world’s current confi guration provided Compliance also carries major weight when tive, but would lead to higher costs down the the initial touchstone for the workshop session conducting business abroad – particularly with road. „

December 2014 commerce germany 17 investment region

Thuringia: Taking Center Stage

▸ ▸ With its central location in Germany and Europe, Thuringia truly is a crossroad for all industries. From sophisticated manufacturing to energy generation, the Free State has garnered the business world’s attention.

▸ ▸ Dr. Arnulf Wulff, Senior Vice President of LEG Thüringen, and Stefan Hertwig, AmCham Germany Thuringia Regional Committee Chair, share their views on the growing industries in Thuringia that make Europe a booming center for technological development.

▾ What industries in Thuringia are particularly offer plenty of support to establish start-ups. LEG, With the German high-speed train ICE, you can strong? the Chamber of Commerce and Industry (IHK) get to from Berlin, Frankfurt/M or and AmCham Germany provide excellent support in approximately two hours. This gives Erfurt and ▵ Wulff: Thuringia is where Carl Zeiss, Ernst for all kinds of newcomers to the market. Thuringia a leg up in developing industry and Abbe and Otto Schott laid the foundation for the business relationships. modern optics industry. In the area of automo- ▵ Wulff: Companies can take advantage of the tives, the first were being built in the state top-notch R&D institutions in the state that co- ▾ How does the AmCham Germany network in as early as 1928; and as far as mechanical en- operate very closely with industry. Along with our Thuringia assist companies to take full advantage gineering goes, the region has about 100 years universities, they help guarantee the region’s tal- of the region? of experience. As a result, Thuringia produces ent pipeline in science remains full and continues cutting-edge technology for a variety of areas re- to supply industry with a motivated and skilled ▵ Hertwig: The AmCham Germany Thuringia lated to advanced manufacturing. Thuringia also workforce. Something not to forget is the variety Regional Committee hosts networking events, offers a thriving environment for breakthroughs of attractive incentive programs that spur invest- holds meetings and assists individuals and com- in the life sciences, microelectronics and plastics. ments in Thuringia. panies to tap the overall organization’s network. The committee enjoys a close relationship with ▵ Hertwig: Thuringia continues to strive for ▾ What emerging sectors in Thuringia should LEG, and it backs LEG’s plan to attract more in- excellence in such traditional economic sectors as investors know about? vestors to the region and support existing US- automotive manufacturing, glass, medical equip- German business relationships. ment, semiconductors, food and agricultural prod- ▵ Wulff: One key cutting-edge industry is op- ucts. The state aims to reclaim its prominent posi- tics. High-powered diode lasers, laser-scanning ▵ Wulff: The excellent AmCham Germany busi- tion in Europe and the world by generating new microscopes and green photonics applications ness network connects the global business com- developments in such areas as renewable energy, are prime examples of sophisticated technol- munity with competent investment support or- pharmaceuticals and the modern food industry as ogy made in Thuringia, clearly illustrating why ganizations. Events like Business After Hours not well as exhibitions, event services and tourism. Thuringia is home to 94 of the world’s market only deepen the working relationships of global and technology leaders. Additionally, Thuringia and local players in the region, but also provide ▾ How can companies tap into this infrastruc- is strong in emerging sectors, which include na- members with new insights. „ ture with their investments? notechnology and new materials, cleantech and environmental technology as well as ICT. ▵ Hertwig: LEG Thüringen, a state develop- ▸ For more information on doing ment corporation, as well as other administra- ▵ Hertwig: Because of its centralized location, business in Thuringia, please visit: tion-related organizations and the private sector Thuringia boasts a strong transportation industry. www. amcham.de

18 commerce germany December 2014 key studies

US Companies Maintain a Positive Outlook

▸ ▸ Defying economic slowdown ▸ ▸ Satisfied with current government ▸ ▸ Concerned about global tensions

Investors remain confident about Germany, the fall update of the AmCham Germany Business Barometer shows. Almost one-quarter of top managers expect to exceed their targets for the 2014 financial year. This positive outlook persists despite the economic slowdown and rising Download the complete geopolitical tensions. text of the Business Barometer update

his survey, conducted in October 2014 by tensions, such as the conflicts “The operation of cies must encourage companies AmCham Germany together with Roland in Ukraine and the Middle East, US companies in and people to pursue innovation. Berger Strategy Consultants, provides an have dimmed economic pros- Germany remains The same percentage supports an overview of how 42 US companies – with pects. It stands to reason then education initiative. Furthermore, T stable despite more than €113 billion in collective annual rev- that worsening export conditions respondents want more invest- enues and more than 284,000 employees – view ranked No. 3 among respondents the economic ment in infrastructure (64%) and Germany as an investment market. (43%) as the greatest risk to the slowdown.” greater commitment to transi- “US companies trust in Germany’s strength German economy. At 60%, con- tioning to a digital economy and AmCham Germany President as a place to do business,” said AmCham cerns about the economies of Bernhard Mattes society (61%). Germany President Bernhard Mattes. “With Germany’s key European trading Respondents also want to see 2,200 operating companies with American capi- partners ranked No. 2. bureaucracy at the EU level be tal, it is no surprise that Germany has the highest The top executives of US companies see the reduced (73%) as well as TTIP concluded (62%). concentration of US investors in Europe.” German government in a positive light. Almost The same amount call for continued budget con- More than 60% of respondents believe the half (46%) are “satisfied” with the work of the solidation in the eurozone. „ economy will remain stable over the next six Grand Coalition. One criticism from respondents months, whereas only around 40% think it will pertains to how structural problems are solved: ▸ For more information about the begin to weaken. Despite this generally posi- not at all, hesitantly or without coordination. Business Barometer, please contact tive outlook, however, nearly 90% of senior ex- Other criticism targeted the area of innovation: Ines Ceylan or Daniel Hawk at ecutives believe that increasing geopolitical One-third of respondents believe German poli- [email protected]

What could slow down the German economy the most in coming months? After almost a year, how satisfied are you with the Grand Coalition and its economic and social policies? Increasing geopolitical tensions 89%

Stagnation in eurozone economies 60% Unsatisfied Decline in international market demand 43% Less satisfied Rising energy costs in Germany 43% 6% 48% Declining investments in Germany 26%

Decreasing consumption in Germany 26%

Rising wage and labor costs 26% 46%

Rising commodity prices 14% Satisfied Declining financing opportunities 6%

© AmCham Germany Business Barometer © AmCham Germany Business Barometer

December 2014 commerce germany 19 event report © Jürgen Markus

ACCEPTING CHANGE COOPERATION NOT INTEGRATION

Frankfurt/M, Sept. 12. At this AmCham Germany pioning change. Pictured here are (from left): Dr. Düsseldorf, Sept. 3. Globalization aims to inte- Business Luncheon, Heike van de Kerkhof, Mark C. Hilgard, Rhein-Main Regional Commit- grate the global economy. Internationalization, Supervisory Chair of DuPont de Nemours tee Chair; Kerkhof; Christian Beers, DuPont de on the other hand, emphasizes international Germany GmbH as well as Business Director of Nemours Deutschland GmbH; and Andreas Povel, trade and relations among nations. Chairman EMEA at DuPont Titanium Technologies, inspired AmCham Germany General Manager. and CEO of AUNDE Group Rolf A. Königs dis- the audience with a talk on embracing and cham- cussed why nations should be turning away from globalization and toward internationalization at this AmCham Germany Business Luncheon. A TAXING TAX Pictured here are (from left): Dr. Alexander Schröder-Frerkes, North Rhine-Westphalia Re- Frankfurt/M, Oct. 14. Tax professionals, managing gional Committee Chair; Königs; and US Consul directors and the heads of finance, tax and con- General Stephen A. Hubler. trolling departments were invited to attend this joint AmCham Germany-PricewaterhouseCoop- ers (PwC) Expert Briefing about the real estate transfer tax. Thorsten Röller and Christof K. Letzgus, both lawyers and accountants at PwC, discussed recent unwelcome changes to the tax and their impact on international businesses. They also offered possible approaches to take in dealing with the tax. Pictured here is Röller.

CHAMPION OF SALES

Frankfurt/M, Sept. 30. Tamara Schenk, Re- search Director at the MHI Research Institute,

© Rolf Poss and Oliver Nolte, Director of Business Devel- opment and Account Management at Xerox A LITTLE FRIENDLY COMPETITION Germany GmbH, both shared their expertise at this AmCham Germany Expert Briefing held in Munich, Sept. 16. As a major economic power, Germany Forum. Pictured here are (from left): cooperation with Miller Heiman. Schenk present- Germany ranks highly among its EU peers as well Michael Meissner, Amway GmbH; Andreas ed theses, facts and figures on world-class sales as among the rest of the world’s nations. Ingo Würtenberger, Regional Committee Co- while Nolte shared a report on best practices. Kramer, President of the Confederation of Ger- Chair; , Vice President of the The event also included an interactive session man Employers’ Associations, examined Germa- of Bavaria; Kramer; and Christian von for participants and a discussion. Pictured here ny’s position on the world stage at this AmCham Sydow, Bavaria Regional Committee Co-Chair. are (from left): Dr. Mark C. Hilgard, Rhein-Main Regional Committee Chair; Nolte; and Schenk.

20 commerce germany December 2014 SEEING BOTH THE BIG AND LITTLE PICTURE SUCCESS AS A DRIVER

Hamburg, Oct. 6. At this AmCham Germany here are (from left): Uwe Kalyla, Teradata GmbH; , Sept. 24. In some ways, success can Forum, Dr. Ulf M. Schneider, CEO and President Dr. Henning C. Schneider, Northern Germany Re- make life easier. In this AmCham Germany Busi- of SE & Co. KGaA, addressed an emerg- gional Committee Chair; Marietta Adler, Teradata ness Luncheon, Prof. Götz W. Werner, founder ing challenge that multinational corporations now GmbH; Schneider; and Andreas Povel, AmCham of dm-drogerie markt, gave a speech on the posi- face: remaining both local and global. Pictured Germany General Manager. tive outcomes of success. He enlightened mem- bers of the audience on his approach to manage- ment and employee appreciation as well as tried to help them view business success as a moti- A NEW DIMENSION IN vator for further growth. Pictured here are (from MANUFACTURING left): Alexander Buck, Maritim Hotels; Werner; and Dr. Gerhard Wegen, Baden-Württemberg Munich, Oct. 8. Our technological world gener- Regional Committee Chair. ates new developments on a regular basis. One of these breakthroughs is 3-D printing. At this AmCham Germany Drawing Room Talk, which aims to celebrate the great minds that hail from Bavaria, Rudolf Franz, CFO of Voxeljet as well as the company’s lead investor in the first institutional investment round, discussed the future of 3-D print- ing and the shift to direct digital manufacturing. Pictured here is Franz (left) with Marko Maschek, Member of the Bavaria Regional Committee. © Jürgen Markus

SPYING HARMS RELATIONS

Düsseldorf, Oct. 1. A little more than a year ago, it was revealed that the NSA had been monitor- ing the cellphone of German Chancellor . At this AmCham Germany Business Luncheon, Dr. , Chair of the NSA Investigation Committee of the German TRADE GOES GLOBAL Parliament, shed light on the effects the NSA scandal has had on the transatlantic relation- Dresden, Oct. 14. Globalization not only fosters Sportolari gave a speech on the new world of ship. Sensburg questions whether the scandal political and cultural exchange, it offers economic global trade. Pictured here are (from left): Jörg had “destroyed” the relationship. Pictured here benefits to all nations as well. At this AmCham Potreck, Hilton; Sportolari; Dr. Heribert Heckschen, are Sensburg (left) with Dr. Alexander Schröder- Germany Business Luncheon, President of United Saxony (Dresden) Regional Committee Chair; and Frerkes, North Rhine-Westphalia Regional Com- Parcel Service Deutschland Inc. & Co. OHG Frank Burkhard von der Osten, Commerzbank Dresden. mittee Chair.

December 2014 commerce germany 21 chamber news

Board Meeting Features Tricultural Executive Dinner

Berlin, Sept. 17. AmCham Germany expanded its Board of Directors’ Meeting to include a third continent: At a German-Indian-American Executive Dinner affi liated with the board meeting, guest of honor Dr. Vishal Sikka, CEO and Managing Director of Infosys Ltd., host of both events, spoke on the advantages of digitization. It would benefi t people both at work and at home and would help companies tap new markets, he told his audience. Speaking at the board meeting itself, Dr. Jörg Dräger, Member of the Bertelsmann Foundation Executive Board, explored digitization and its effects on personalizing learning opportunities. Pictured here in the photo on is Sikka. In the photo on the right, Dräger (right) joins AmCham Germany President Bernhard Mattes.

Chamber Chat Going Viral We mourn the loss of our Honorary Member The fi rst podcast of AmCham Germany’s Cham- ber Chat series has been uploaded and is already Berndt von Staden, generating a lot of clicks. The podcast series, avail- able in both English and German, aims to regularly who passed away this October at the age of 95. update viewers on AmCham Germany’s latest de- velopments and events. He and his family are in our thoughts. It has been sent in an e-mail to all members, but Link to the YouTube it can also be viewed on the social media websites podcast in English YouTube, Facebook and Twitter:

American Chamber of Commerce in Germany AmCham Germany @AmChamGermany

amcham germany in the press

‘It will succeed’ No. German companies have devel- struction is set to take place right […] Germany is also a role model in oped quite well since then. This outside their front doors. But it's im- the US for vocational training and wasn’t a fl uke, but the result of in- portant to lend equal weigh to resi- engineering. But we're very conserv- genuity, initiative, hard work and a dents’ interests and needed con- ative, too. I wish we'd be more sense of responsibility. struction projects. […] forceful and have the courage to see Still, AmCham Germany warns that What is AmCham Germany’s stance things differently and just try them Germany shouldn't rest on its laurels. on government spending? out. In the US, those who didn’t suc- There are areas where we urgently The answer is a clear: yes, invest! ceed are respected for at least hav- need to take action: the energy This doesn't mean recklessly racking ing dared to try. In Germany, we of- transformation, for instance. […] up debt. But even businesspeople ten write these people off as Another area is infrastructure: use low interest rates to realize fu- failures. Streets, bridges and railroad tracks ture projects.

Have Germans become smug and are the nervous system of a nation’s (Translated from the original German interview complacent after the fall of the economy. Everyone agrees invest- conducted by Andre Tauber with AmCham Berlin Wall? ments need to be made – until con- Germany President Bernhard Mattes as it appeared in Welt am Sonntag on Nov. 9, 2014)

22 commerce germany December 2014 BizCamp Nurtures the Next Generation of Business Leaders

BizCamp gives students the opportunity to expand their business knowledge as well as build friendships.

Frankfurt/M, Oct. 26-31. The motto of BizCamp says it all: “Be a student, be- prizes. Uwe Becker, city treasurer of Frankfurt, funded the project again this come a businessperson.” The weeklong camp gives students the opportunity year. “It goes to show that an interest in business can be sparked early on. to learn more about business and develop their self-confi dence and creativity. For a fi nance capital like Frankfurt/M, encouraging young talent is essential to This seventh BizCamp provided 21 German high school students from various secure the region’s key economic position for future generations.” social and cultural backgrounds a glimpse into the business world. During the fi ve-day program, participating students developed their own business ideas ▸ For more information about BizCamp, please visit the Network and pitched them to a panel of judges. The best three concepts won cash for Teaching Entrepreneurship website at: www.nfte.de

BizCamp winners show off their prizes. Participating students present their own business ideas.

Americans see Germany Germany must maintain its power Capital for good ideas here in Germany that even holding in more positive light to innovate. The second most press- […] “There are tons of good ideas in shares in a company is seen as ‘get- Germany has become a more attrac- ing issue was securing a skilled labor Germany,” said AmCham Germany ting into debt,’” said US Ambassador tive investment location for Ameri- pool. Third was “energy policies General Manager Andreas Povel [at John B. Emerson. “This mindset hin- cans over the past 12 months, that ensure environmentally friendly the Growth Company Forum]. Imple- ders the innovative spirit so critical according to [the Top 50] survey by and reliable energy at affordable mentation often fails because of the for a culture of entrepreneurship.”

AmCham Germany of its members. prices.” […] fi nancing. “There's a need for ven- (Translated from the original German article by Compared with 2013, the average US companies in Germany had a ture capital on all fronts,” Povel told Silke Kersting as it appeared in the Handelsblatt score awarded to Germany improved good year in 2013. With growth of the Handelsblatt. In the Americans’ on Oct. 17-19, 2014. See also the Handelsblatt Global Edition) from 2.6 to 2.2. […] 0.6%, they made out slightly better view, however, this German tendency But this year’s survey again highlight- than German companies, which stands in the way: It gets hammered ed some weaknesses, which, said grew by an average of 0.4%. into the heads of young entrepre-

AmCham Germany General Manager (Translated from the original German article neurs even before they get started Andreas Povel, are “a clear call to as it appeared in the Frankfurter Allgemeine that any lost money has to be repaid. action” for policymakers. Above all, Zeitung on Sept. 5, 2014.) “I've heard from many entrepreneurs

December 2014 commerce germany 23 memberKolumne know-how

Outsourcing of Strategic HSE Management

utsourcing specific elements infrastructures. Increasingly, interna- companies have a full range of inter- of health, safety and environ- tional companies are considering nal resources. Outsourcing makes it mental (HSE) management broader outsourcing to achieve the fol- possible to rapidly access a broader Ohas become commonplace lowing benefits: array of resources. for international companies. But the „Leadership and governance: Instead The degree to which a company functions companies outsource tend of taking time to drive the day-to-day benefits from HSE outsourcing is spe- to primarily focus on operations rather routine aspects of HSE management, cific to the corporation and its setup. than strategy – e.g., providing discrete a company’s internal HSE staff can A decision on HSE outsourcing can safety engineers for key projects rather focus their energy on criti- only be reached by Companies can Graham Lane than having someone oversee a multi- cal areas of leadership and carrying out proper Commercial Director country HSE audit program. Is there a governance. reap many benefits analyses and plan- Central Europe EMEA benefit for companies to outsource „Assurance: Audits are often from outsourcing ning that focuses on ERM more than the traditional, operational confrontational, and an exter- HSE management identifying key risks Siemensstr. 9 aspects of HSE management? nal auditor makes it easier and weaknesses. 63263 Neu-Isenburg T +49 6102 206-0 Outsourced HSE management usu- to handle such issues as well as im- Surprisingly, this is a task that is better E [email protected] ally holds a central position within the proves the credibility of audit results. left to outsourcing as the cross-sector W www.erm.com range of key activities critical for deliv- „ Service: HSE management is a par- experience offered by external advisers ering solid HSE management: govern- ticularly vast and fast-growing world can prove essential. „ ance, assurance and related support of support specialties where very few

Responsibility for People and the Environment

ince 1990, Ritter Sport has been ing conditions. In 2012, the company produced annual savings of 12 million actively working in Nicaragua began building its own plantation for kilowatts of primary energy and led to

to improve the living conditions sustainably cultivated cocoa a reduction in CO2 Sof cocoa farmers and to protect in eastern Nicaragua. Serving Manufacturing emissions of 2,300 natural resources. Through the private as a model farming operation, companies can be tons in 2013. development project CACAONICA, the EL CACAO offers fair wages and pioneers The heat cre- company works in partnership with sev- safe working conditions to em- ated in the combined Georg Hoffmann eral hundred small farmers organized ployees as well as uses environmentally heating and power station is a welcome Sustainability Manager into roughly 15 farmer cooperatives friendly cultivation methods. “waste product” from electricity gen- ALFRED RITTER GmbH & Co. KG Alfred-Ritter-Str. 25 and has built a central purchasing and eration and meets 80% of the com- 71111 Waldenbuch drying station for export processing and Local commitment pany's heating requirements – roughly T +49 7157 97-0 quality control. equivalent to burning 1 million liters of E [email protected] W www.ritter-sport.de Back in Waldenbuch, a small town heating oil. Today, the company pro- International action in southwest Germany where the duces 30% of its own power. And after chocolate maker is headquartered, the dispensing with nuclear energy sources Modern agroforestry cultivation company runs its own on-site combined in 2002, the company has since proved methods help protect the environment heating and power station to save that even manufacturing companies while simultaneously improving farm- energy and reduce its carbon footprint. can be pioneers in phasing out nuclear ers’ yields and, as a result, their liv- In operation since 2002, the station has power. „

24 commerce germany December 2014 new members

September to December 2014

PATRON MEMBERS Classen Fuhrmanns & Partner Roessler PR Fritz Dräxlmaier Rechtsanwälte Partner- Edda Rössler, Owner GmbH & Co. KG CD&R Beteiligungsberatung schaftsgesellschaft mbB Frankfurt/M Franz Haslinger GmbH Dr. Dirk Classen, Managing Partner Sonja Terraneo, Managing Director Cologne Teleperformance Germany Generali Lebensversicherung AG Frankfurt/M S.á.r.l. & Co. KG Theresa Blissing Europe Sales Services Thomas Güther, CEO Stephan Rasche Dortmund KPMG AG EXECUTIVE MEMBERS Managing Director Wirtschaftsprüfungsgesellschaft Rinteln Manfred Hannich Brose Fahrzeugteile GmbH & Co. DELEGATED MEMBERS Kommanditgesellschaft Greenfield Consulting TIMKEN GmbH Jürgen Otto, CEO Martina Mayr, Inhaberin Aon Risk Solutions Thorsten Dommann Coburg Munich Tobias Noack UBER GmbH Ericsson GmbH Inside Out Executive Coaching Atreus GmbH Interim Fabien Nestmann Olaf Reus Carlos Bermudez, Partner Management Mitglied der Geschäftsleitung Frankfurt/M Rudolf T. Attenberger Unisys Deutschland GmbH Düsseldorf Dr. Oliver Duschka International School Augsburg Avaya Deutschland GmbH Fritz Dräxlmaier Marcus Wagner, Managing Director Walter Denk GmbH & Co. KG Gersthofen INDIVIDUAL MEMBERS Fritz Dräxlmaier, CEO Bethmann Bank AG German Executive Board Lotz, Feyerabend und Patrick Natanzon Dirk Bartels Vilsbiburg Partner GbR Oliver Brockmann Tim Feyerabend, Owner Brose Fahrzeugteile GmbH & Co. Christian Bunsen Groz-Beckert KG Kleinblittersdorf Kommanditgesellschaft Dr. Hans-Joachim Kessler Dr. Thomas Lindner, CEO Martin Kugel Michael F. Nitz Albstadt METIS Rechtsanwälte LLP Matthew O‘Donnell Dr. Heinrich von Bünau, Partner Bryan Cave LLP Dr. Frederic Ufer UBER GmbH Frankfurt/M Dr. Andreas Junius Ernst F. Voss Christopher Bates General Manager Orangefield Germany GmbH Cognizant Technology Frankfurt/M Marcus Friedrichs Solutions GmbH Managing Director Michael Rundshagen CORPORATE MEMBERS Frankfurt/M Santhosh Sreemushta

BCB Business Consulting Perlick Industrieauktionen DuPont de Nemours Böttcher GmbH (Deutschland) GmbH Eva-Miriam Böttcher, Owner Max Langhorst, COO Dr. Heinz Degenhardt Düsseldorf Königstein im Taunus Eppendorf AG Bohlen Industrie GmbH PONS Atlantic Partners GmbH Detmar Ammermann Eckbert von Bohlen und Halbach Angela T. Drees, Partner Managing Director Berlin FM Global Essen Nigel Todd Red Onion GmbH Stephan Balzer, CEO Berlin

What brought Ericsson GmbH to AmCham Germany?

Ericsson is the driving force behind the networked society – we are a world leader in communications technology and services and have customers in 180 countries. The US is also one of our biggest markets, which is one reason we decided to join AmCham Germany. We look forward to further advancing such issues as ICT, trade and innovation.

Olaf Reus, Mitglied der Geschäftsleitung, Ericsson GmbH

December 2014 commerce germany 25 special event report imprint Patron and Executive commerce germany „ACC Verlag & Services GmbH Dipl.-Kfm. Andreas L.J. Povel, General Manager Member Roundtable Börsenplatz 7-11, 60313 Frankfurt/M „ Editorial and business offices Anna Katharina Wambach, Ines Ceylan T +49 69 929104-41, +49 69 929104-43 F +49 69 929104-11 E [email protected], [email protected] W www.amcham.de

„ Editorial team Heidi Roecks, senior editor (F.A.Z.-Institut) Josh Kongmany, intern Representing FRANKFURT BUSINESS MEDIA GmbH – Der F.A.Z.-Fachverlag, Frankfurt/M

„ Graphic designer Giulia Schneck Representing FRANKFURT BUSINESS MEDIA GmbH – Der F.A.Z.-Fachverlag, Frankfurt/M Roundtable participants were pleased with the broad discussion about change at this transformative event. „ Advertising administration Sabine Karbowy Berlin, Oct. 15. Patron and Executive Members left this Roundtable event hosted by DIN e.V. with myriad Wilrijkplatz 3, 65527 Niedernhausen new ideas about image transformation. Dr. Karl-Thomas Neumann, Chair of the Management Board „ Communications Committee at Opel Group GmbH as well as President of Europe Operations and Executive Vice President at the Carl Graf von Hohenthal, Chair General Motors Company, delivered a dinner speech on Opel’s image campaign “Umparken im Kopf” Brunswick Group GmbH (change of thinking). The presentation provided food for thought for both businesses and AmCham „ Photo credits Germany itself and laid the groundwork for a stimulating discussion following the speech. Dr. Torsten Thinkstock: 6, 7, 8, 18, 22 and 27 Bahke, Chair of the Executive Board at DIN e.V., and Frank Riemensperger, AmCham Germany Executive Vice President, greeted guests attending the event. commerce germany is the official periodical of the American Chamber of Commerce in Germany e.V. It is published for the Chamber by ACC Verlag & Services GmbH. Opinions expressed in articles are not necessarily those of the Chamber or of ACC Verlag & Services GmbH or of FRANKFURT BUSINESS MEDIA GmbH – Der F.A.Z.-Fachverlag, Frankfurt/M. Contributor opinions are not necessarily shared by the editor. All members of the American Chamber of Commerce in Germany e.V. receive one free copy of the publica- tion. Copyright by American Chamber of Commerce in Germany e.V. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the copyright owner.

Alle Rechte vorbehalten. Nachdruck, auch auszugs- Pictured here are (from left): Riemensperger; Neumann; Bahke; and Andreas Povel, AmCham Germany General Manager. weise, nur mit ausdrücklicher Genehmigung des Verlags.

„ Printing NEXT ISSUE OF COMMERCE GERMANY: March 5, 2015 Boschen Offsetdruck GmbH, Frankfurt/M ADVERTISING CLOSING DATE: Feb. 5, 2014 ISSN 0010-2857 Our topics will include: „Index of companies Compliance – Practicing Theory? AGCO International GmbH 13 ALFRED RITTER GmbH & Co. KG 24 Special Report: Thanksgiving 2014 and New Year’s Receptions 2015 AstraZeneca Deutschland 6 ERM 24 Investment Region: Saxony-Anhalt Permira Beteiligungsberatung GmbH 8 Procter & Gamble Germany GmbH & Co 12 Contact: Contact: Volkswagen Group 7 Sabine Karbowy Barbara Böhnke T +49 6127 9993150 M +49 152 21895340 „Advertiser’s index M +49 171 7579768 M +49 178 7988882 Alvarez & Marsal Deutschland GmbH 4 F +49 6127 9993151 F +49 33398 679724 Dow Deutschland, Inc. 2 E [email protected] E [email protected] LEG Thüringen 28

26 commerce germany December 2014 chamber calendar

AmCham Germany Jan 1 Jan 13 2015 event highlights New Year’s Day New Year’s Reception Please see www.amcham.de Federal holiday in the US Prof. Andreas Barner, CEO for the latest updates Boehringer Ingelheim President Evangelischer Kirchentag

Light blue = events wholly or partially in English Stuttgart

Jan 14 Jan 16 Jan 23 Jan 27

New Year’s Reception New Year’s Reception New Year’s Reception New Year’s Reception

Dr. Andreas R. Dombret Rüdiger Lentz Wolfgang Schäfer Mitglied des Vorstands Minister für Wirtschaft, Executive Director Mitglied des Vorstands Deutsche Bundesbank Energie, Industrie, Aspen Institute Germany Continental AG Mittelstand und Handwerk des Landes Nordrhein- Westfalen

Hamburg Düsseldorf Dresden Hannover

Jan 30 Feb 4 Feb 12 Feb 16

New Year’s Reception New Year’s Reception AmCham Forum Washington’s Birthday (Presidents Day) Lucia Puttrich Dr. Thomas Enders, CEO Hessische Ministerin Vizeministerpräsidentin Airbus Group Federal holiday in the US für Bundes- und Europa- des Freistaats Bayern angelegenheiten

Frankfurt/M Munich Munich © Airbus

March 17 March 20 April 22

AmCham Forum First Day of Spring Earth Day Dr. Sylvia Rothblum SVP/Managing Director German Speaking Territories Warner Bros. Entertainment GmbH International Television Distribution

Munich

May 8-9 May 25 July 3

112th Annual Membership Memorial Day Independence Day Meeting (observed) Federal holiday in the US Federal holiday in the US

Berlin

December 2014 commerce germany 27 www.invest-in-thuringia.de That’s Thuringia.

One of Thuringia’s many outstanding companies: Jenoptik – quality leader in high performance diode lasers and world-wide leading manufacturer of precision optics. In Thuringia, all your investment requirements can be met. For further information please see www.invest-in-thuringia.de

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