Together. Sustainability at Pöppelmann.

THE COMPLETE EDITION 1st Pöppelmann Researchers‘ Sunday 2 in the Lohne Industrial Museum in November 2018 Overview

Strategy Fields of action

Management statement ���������������������������������� 4 – 5 Product ���������������������������������������������������������� 10 – 15

Our responsibility ��������������������������������������������� 6 – 7 Employees ���������������������������������������������������� 16 – 23

Stakeholder dialogue �������������������������������������� 8 – 9 Resources ������������������������������������������������������ 24 – 31

Region ������������������������������������������������������������ 32 – 37

Stories & faces Fresh salad and muesli for A day at the museum: 40 cents. �������������������������������������������������������� 38 – 41 let’s talk about plastic. �������������������������������� 48 – 51 Full-loop with At the Holdorf plant, PÖPPELMANN blue®. ���������������������������������� 42 – 47 a new life awaits plastic. ���������������������������� 52 – 55

Pöppelmann �������������������������������������� 56 – 57 GRI index ���������������������������������������������������� 70 – 104

The company ����������������������������������������������� 58 – 67

Compliance �������������������������������������������������� 68 – 69 Imprint

Liability ���������������������������������������������������������������� 109

Feedback ������������������������������������������������������������� 109

3 MANAGEMENT STATEMENT We assume responsibility – with competence and experience.

Plastic is a material that has been enabling humanity to make ground-breaking progress for more than 100 years: in medicine and in the household, in communication and in mobility. A world without plastic is unimaginable – and undesirable. Without plastic, today’s expectations in terms of living standards and conditions, hygiene and modern technology could not be maintained. Put simply, our plant pots help to keep the world green. Our food packaging makes sure that quark, spreads and salads arrive fresh at the table with reliable product quality. Our laboratory receptacles ensure flawless blood sampling. Our technical car components enable advances to

be made in CO2-reducing lightweight construction solutions. Our protective elements stop highly complex and sensitive components from being damaged. Photo: Michael Helweg Photo:

4 STRATEGY “We do it. Better. In joint responsibility for tomorrow.“

Our aspiration is to reconcile the market demands of our in politics, science, business and society. Even against this industry with our responsibility for future generations. This background, we are pleased about the current controversial sustainability report illustrates how we do this as a leading discussion surrounding our material, plastic. It shows that there company in plastics processing. In it, we outline how this is great interest in our work and can provide crucial motivation aspiration impacts on our everyday work within the company as for the development of sustainable product solutions. well as in the areas of product, employees, resources and region. Those who speak of sustainability mean an ecological balance, “We are proud of our expertise and experience in plastic. We do economic security and social fairness. We are determined to not have to hide what we do today to find intelligent product make our contribution in realising this comprehensive concept concepts for the world of tomorrow. for the future. Working on the sustainability strategy and report helps us to set the right course in good time. At the same time, we see great potential for improvement in the future, especially in terms of a circular economy. Sustainable We would like to thank everyone inside and outside our production can only succeed if material cycles are closed, and it company who has supported us on this journey of self- is this conviction that drives us forward.” assurance and route planning for the future through discussions and pointers, criticism and suggestions. With our PÖPPELMANN blue® initiative, we took our first steps in this direction very early on and are already reaping initial We have given our report the title “We do it. Better. Assuming success. But there is a long road ahead. We cannot overcome responsibility together for tomorrow.” This is the benchmark by it alone; it demands the collaboration of all parties involved which we measure our performance.

Henk Gövert Norbert Nobbe Matthias Lesch Management Management Management

STRATEGY 5 OUR RESPONSIBILITY We do it. Better. In joint responsibility for tomorrow.

In a free society, all of us must take responsibility – in politics, society, science and business. Each person individually and everyone together. Responsibility is about what we say and do. After all, responsibility is only credible when it is actively embraced and communicated.

Responsibility has always been an inherent part of our business. Product For us, it is inseparable from the strong relationships we have with our employees, customers, suppliers and the entire region In the manufacture of our high-quality products, we focus we call home. When we talk about sustainability, we mean on the quality of the solutions we develop together with our precisely the responsibility that stems from these relationships customers. They not only need to make sense economically, and includes the vision of quality of life for future generations. but also ecologically. The optimum balance between sustainable product design and the best possible product With our growth comes increasing responsibility. Yesterday’s functionality delivers maximum added value for our customers. answers are no longer enough for today’s questions. Our Interdependent internal and external processes throughout the horizons have widened. Against the background of the current entire supply chain are also prerequisites for this. Find out more. debate on plastics in society, political deliberations on legal regulation and the technical issues of a circular economy, we now want to focus our responsibility strategically and enter into Employees dialogue with our stakeholders. People lie at the heart of everything we do. Our close We developed our sustainability strategy in a moderated connection with our employees embeds our company’s deep process. As part of this, we incorporated the views and expertise roots in the region. We assume responsibility for them – with of key internal and external stakeholders. Our aim is to align secure jobs, good and legally regulated working conditions and the complex issue of sustainability both to our company as a various social services, which include promoting their health whole and our core business, thus creating a more streamlined and a high standard of occupation safety. To be prepared concept with the key topics. for the future and to offer our employees opportunities for development, we want to create needs-based, job-oriented training and further education options for all. Our training Our result courses help us to prepare our own specialists and leaders for We have identified four key fields of action for our responsibility. tomorrow whilst ensuring the economic attractiveness of the They are mutually dependent, built on the PPx principles and region. Find out more. thus express our fundamental values.

6 STRATEGY Resources Region

Like every industrial company, we depend on resources. Our As one of the largest companies in the region, we see it as our most important raw material is plastic, including as a recycled duty to contribute to social prosperity and cohesion. We believe material. However, quantity is not the only factor here, but that economic stability is indispensable in order to secure the also where our raw materials come from. When using plastics, long-term future of the region. For us, a principal element of this natural resources and other raw materials, we pay close is collaboration with regional business partners and suppliers. attention to environmental impacts throughout the entire life When working with our neighbours, we strive for respectful cycle of our products. Energy is, of course, a key factor in their cooperation and good, amiable rapport. After all, prosperity is production, and both the consumption and source of this also based on social cohesion and a sense of community. This is energy are key considerations. For us, this means achieving an why we are also involved in the areas of culture and youth work. optimum energy utilisation rate in a technically cost-effective Find out more. manner. Find out more.

Supply chain Plastic

Eco design Environmental impact

R Energy Quality t es uc ou d rc ro e s P

E m p n lo io y g ee Re Education s Future region

Health Neighbourship

Safety at work Cohesion

As part of our strategy development, we categorised our responsibility into twelve key topics. We then assigned them to the four fields of action. The graph clearly shows the weighting: the darker the plot, the more relevant the topic with respect to the results of the analysis.

STRATEGY 7 STAKEHOLDER DIALOGUE Credibility calls for constant dialogue.

As part of the expansion of our sustainability management, we want to further integrate dialogue into our relationships with the most important stakeholder groups. Both internally and externally.

8 STRATEGY “Good dialogue starts and ends with listening“

e are in daily contact with our customers, But even more important was the underlying message that for example in projects in which we develop we are actively seeking dialogue and offer external experts the solutions together. Customer satisfaction is opportunity to have their say. always our foremost priority. Since 2017, we One month later, in November 2018, we organised the first have used anonymous surveys to collect key information as W Researchers’ Sunday at Lohne Industrial Museum. We used this part of our dialogue with customers. opportunity to engage in dialogue with the local community. These customer surveys will be repeated every two years Residents were able to write their thoughts and suggestions on in the future. They also enable us to go into considerable post-it notes and stick them to a large pin board. Especially in detail – we want to know which aspects of collaboration our times of prevalent public discussion on plastic, it was important customers appreciate most and how they compare to other for us to understand how local people view the subject and competitors. The survey results are for internal use only and will what they think about it. not be published. Nevertheless, we can say that feedback was We also took our internal dialogue tool – the “blue sofa” – to the immensely positive across all categories. At the same time and Industrial Museum. This sofa offers a space within our company as expected, the respondents also showed us that there is room for management representatives to meet with employees for for improvement. informal discussions. In addition to this, in October 2018 we hosted the TOP Industry Forum, a two-day event for production companies from all over Germany. Among other things, the event’s slogan was what motivated us to bring the event to Lohne. “The Sustainable Company: Between Economics and Ecology.” This reflected the developments in our own company and we saw an opportunity to tell people about our approaches whilst simultaneously learning from others. This wish was fulfilled in many discussions and conversations.

The event was attended by customers, competitors and representatives from the fields of science and local politics. We also took advantage of this specialist forum to implement two dialogue formats. On the one hand, we openly debated the positive and negative effects of our industry on people, the environment Through our informative discussion forum on Researchers’ and the economy with some of our competitors. On the Sunday, we wanted to demonstrate that we actively seek other hand, we asked selected representatives from our main dialogue and are not afraid to confront critical matters. Indeed, stakeholder groups about sustainability strategies. we often ask ourselves many of these questions and dedicate our daily efforts to finding the answers. The fact that the Longer, bilateral interviews were held with ten of these subjects are also questioned outside the company spurs us on experts after the event. Through this, we aimed to stimulate to find a better solution in terms of sustainability. discussion by offering our thoughts on what we see as the most important aspects of sustainability. And we were certainly given some significant considerations and thoughts in return, which we have incorporated into our sustainability strategy.

STRATEGY 9 “We are ready and have the technology to optimally process the available quantities of collected recyclables.”

Günther Orschulik, 10 Head of TEKU® Product Management Photo: Christian Tombrägel PRODUCT FIELD OF ACTION Long-term responsible solutions.

We have a broad product portfolio: it ranges from protective elements that protect our customers’ products from damage during production, transport or storage, such as the grip cap (KAPSTO® division), pots and trays for the horticulture sector (TEKU® division) and high-precision engineering plastic components for the automotive industry (K-TECH® division) all the way to packaging and highly complex functional parts for customers in the food, pharmaceutical and medical technology industries (FAMAC® division). We currently process around 480 different types of plastic for over 5,600 products across all divisions.

This bandwidth alone makes it clear: Each business division Against this background, we focus on three subject areas in must find solutions for very specific applications – tailor-made this sustainability report: quality, eco design and supply chain. and customised answers both to our customers’ requirements Some of the most important criteria for quality are longevity and to our demand for quality and responsible use of plastic as and product safety. We take the stipulations of eco design as a a material. We are firmly convinced: if used responsibly, plastic guideline in order to develop responsible concepts that make is the most sustainable material for many applications. both economic and ecological sense. Here again, we need to find the balance between a sustainably responsible solution We want to work together with our customers to develop long- and product functionality with maximum added value for our term responsible solutions for their applications. But there are customers. In recent years, the premises have shifted in this field no patent remedies. We already know the path that leads to of work. While economic aspects tended to dominate product our goal of driving the circular economy forward in horticulture development in the past, recyclability has become increasingly and packaging. In the automotive industry, too, we already offer significant today – with palpable effects, for instance, on the extremely promising approaches – but once again, our own choice of materials. unique concepts are called for. Recycled materials that are used in highly technical plastic applications need to be just as reliably defined in terms of their material properties as virgin plastic – and the cycles in the automotive industry are very different to 5,600 those for packaging, for example. There must also be no doubt Products in portfolio that a product made from recycled material is not automatically recyclable.

Recyclability itself is a category of its own with extremely When deliberating responsible product solutions, it is also specific assignments in terms of product development. In order necessary to take an in-depth look at the supply chain. After all, to provide promising and therefore future-oriented solutions, within the combination of material choice, delivery, production, we, along with the entire industry, depend on cooperation with transport and use, actual added value can only be achieved other stakeholders – Germany’s dual system operators, waste with efficient processes. In keeping with our aspiration, we disposal companies and others from the fields of science and believe this includes being able to understand customer politics. But the willingness of consumers to join us on this path processes and influencing them positively. beyond mere “actionism” is equally important. The optimum choice of material for a specific type of packaging can only be assessed in terms of the entire product life cycle.

PRODUCT FIELD OF ACTION 11 QUALITY We deliver products with added value.

Our products and services are hallmarked by the highest risk management and compliance with the aim of efficiently quality. This pledge has become a core part of our PPx implementing the system requirements throughout the corporate guidelines. Our customers’ expectations are our company. The goal is to achieve consistent and predictable quality standard, with this Pöppelmann effect: the principle of results in our everyday work effectively and efficiently. understanding the challenges and requirements as our own has always been one of the key factors in our company’s success. Number of audits Pöppelmann 2018 This commitment, which has driven us since the very beginning, now blends seamlessly into our sustainability strategy. After Supplier audits all, a high quality standard is the prerequisite for product solutions that we can stand by in the long term. To achieve the Total customer audits best quality, we question customer requirements from the very Internal audits beginning of the development phase. We then implement them as the best solution, both economically and ecologically. 10 20 30 40 50 60 70 80 90 100

Our products have to be safe, environmentally friendly and Audits as innovative as possible in order to meet ever-growing social requirements and constantly increasing market demands – This management system must prove itself every day anew and all at a reasonable price. This is only possible with a in direct customer contact. The quality-assuring added meticulously honed quality management system that focuses value we offer our customers includes our multifaceted and on the overall organisation and is closely interlinked with other comprehensive range of consulting services – right from the very management systems. first day of product development. In addition to our customer’s requirements, we incorporate our entire technological We introduced our quality management systems back at the and innovative expertise into our analysis in order to find beginning of the 1990s and have continuously developed them sustainable and long-term responsible solutions. For instance, since then. Over the years, an integrated management system this also involves considering the possible use of recycled has emerged. Today’s management system combines the materials right from the outset. areas of occupation safety, the environment, energy, quality, In a global market shaped by price pressure, we see our quality pledge as an opportunity to stand out with the quality and sustainability of our products and brands. Of course, this requires investment in sustainability innovations. Our commitment to sustainability begins with component design and structure and continues throughout the entire production process, including recycling at the end of the product life cycle. It ranges from process optimisations to larger business model innovations.

12 PRODUCT FIELD OF ACTION SUPPLY CHAIN Optimal processes secure economy and ecology.

In harmony with our environmental guidelines, we are Packaging rate [%] committed to assuming responsibility throughout the entire life cycle of our products, from production to recycling. This includes the constant optimisation of processes in our internal Plants 2016 2017 2018 Target 2020 supply chain, from the acceptance of raw materials all the way Plant 1 3.0 3.1 3.2 3.0 to delivery to our customers. Plant 2 6.8 6.5 10.1 6.0 In order to achieve this, we have dedicated continuous efforts over the past few years to the improvement of our internal Plant 3 16.4 8.2 7.4 15.0 processes and increasing our productivity and quality. Through Plant CP 0.0 0.0 0.0 0.0 the ongoing development of our management system, we can make sure that we can reliably meet the growing requirements in all areas of the Pöppelmann Group, both now and in years to Packaging quantity based on plastic consumption. (The packaging rate at plant 2 has deteriorated since new special products come. Only in this way can we achieve our goal of sustainable require more complex protection and packaging.) value creation and the corresponding rise in customer benefit.

But the quality of our products and services, our economic The constant reduction of material consumption, especially of success and our commitment to environmental protection are virgin plastic, also plays an important role in the continuous not our only measures of success. Our pledge to do business review of the internal supply chain. This is achieved on the one in a sustainable and responsible manner also involves the hand through the increasing use of recycled materials, but also continuous improvement of internal work processes in the value by process improvements to minimise waste and the return chain. Our goal is to align machines and work processes so well of sprues into production. In this context, our considerations that no resources – neither material nor time nor energy – are always include the balance between long-term storage and wasted. short-term just-in-time production. After all, the more often a machine needs to be re-tooled for a new product, the more In order to continuously improve our internal processes, we material residue is incurred when the system starts up. work extensively with PDCA methodology (Plan, Do, Check, Act) developed by Deming. This helps us to analyse the situation at An important factor for the execution of optimum processes is hand, recognise potential and derive actions and opportunities the use of employees according to their strengths. Continuous for improvement. We also use a method from risk management, further training means we also strengthen our processes at this Failure Mode and Effects Analysis (FMEA). The purpose of FMEA level in accordance with the latest innovations. is to pre-emptively investigate a component or process for In addition to this, we already achieve the best possible work potential weak points. The aim is to start operations with an processes through the targeted selection of our suppliers. optimum component, tool or process and therefore prevent Here, we focus on expertise and the ability to develop while faults and, in turn, waste. encouraging our suppliers to improve their own processes in terms of environmental concerns by combining contract assignment with our expectations regarding quality, occupational safety and environment management systems.

PRODUCT FIELD OF ACTION 13 ECO DESIGN Eco design examines the entire product life.

The design of a product plays a crucial role in how the product Eco design must ensure optimum use and handling throughout affects the environment. This is why eco design, in accordance all phases of a product life cycle, from production through with customer requirements, is at the heart of our product storage and filling, packaging and transport, all the way to design. The design approach of eco design involves much proper product use and subsequent disposal. And it is crucial more than the recyclability of packaging or the use of recycled to remember that only designs that guarantee waste sortability materials. Eco design goes far beyond this. Rather than viewing can be used as recycled material in a second product life. packaging separately, it sees it in unity with the packaged The current social debate on plastic packaging often ignores goods. Optimal consumer and product protection are the main the fact that resource consumption for the production of considerations during development. In eco design, we consider packaging – and thus its environmental impact – is usually the packaging and packaged goods as one single system lower than that for the production of the packaged goods. Food throughout the entire life cycle of both products. We see the eco packaging example: plastic packaging significantly prolongs design concept as a truly future-oriented innovation. the shelf life of food compared to many alternative materials. On the one hand, the life cycles of packaging and packed For example, the summary of the ecological evaluation of goods are closely linked, and on the other hand, it is always packaging carried out by GVM Packaging Market Research important to find a solution that offers maximum functionality (published April 2018) included the following observations:

and cost-effectiveness. This means that trade-offs between The CO2 savings as a result of reduced cheese waste is 2.5

requirements concerning product protection and the reduction times higher than the additional CO2 emissions for optimised of the environmental impact of packaging – for instance through packaging. minimal material use, the use of recycled materials and a In other words, a dogmatic renunciation of plastic packaging recycling-friendly design – are inevitable. can have a significant negative effect on environmental and A comprehensive consideration of product development sustainability objectives. following the eco design model must include the careful deliberation of all of its advantages and disadvantages. For example, the use of recycled material stands to reason from an ecological point of view. After all, it saves resources. At the same time, however, economic aspects should also be considered. How does the use of recycled materials affect product costs? It must also be examined whether the use of recycled materials could lead to functional limitations – if, for example, the necessary material rigidity or toughness cannot be achieved. If the use of recycled material is still requested in this case, the design will have to be modified. The product developer is also required to check whether a suitable recycled material exists at all and whether it can be meaningfully used in terms of eco design. Reduce+ round bucket of Pöppelmann FAMAC® according to eco-design specifications

14 PRODUCT FIELD OF ACTION Core requirements for Kernanforderungen an packaging design das Verpackungsdesign

Protection against mechanical, biological and chemicalSchutz influences vor mechanischen, biologischen, chemischen Einflüssen Easy and safe use  by the consumerEinfache und sichere Nutzung durch den Konsumenten

Support of optimum logistics Unterstützung einer optimalen as well as presentation of  Logistik sowie Darbietung von customer information and advertising media Kundeninformation und Werbeträger

Guarantee of Gewährleistung der minimum shelf life Mindesthaltbarkeit

Requirements in accordanceAnforderungen with gemäß the eco designdes approach Eco Design-Ansatzes

Minimisation of environmentalMinimierung impact von Umweltwirkungen

Source: https://ecodesign-packaging.org/ueber-diesen-leitfaden/

Handling such trade-offs must therefore be precisely regulated What is the best way to make the product? How can I improve during the development phase. What is more important, the handling for our customers? How can I optimise handling for minimal use of materials, for example through a non-recyclable consumers? How can I make the product optimally recyclable? material structure, or recyclability? In order to find the right path How can I achieve all this using recycled material? How can I here, we talk to our customers about the specific criteria that make a positive influence on logistics? The TEKU® plant pots need to be considered. To help us, we use the “Round Table for in Circular blue are the perfect example of how this can be the Eco Design of Plastic Packaging” guidelines. There is never successfully implemented. Here, we use a material-saving a perfect solution for a life-cycle-friendly eco design – but our thermoforming process to make a product whose material is goal is to be a little better every time. To do this, we need to part of a closed loop. But there is still room for improvement in have as much knowledge as possible of what is important in the the value-added cycle, for example in recycling. The approach various phases of a product’s life. Our thinking does not stop at of the closed material cycle achieved here is the fundamental the factory gates. With every new product, we ask ourselves: idea behind our PÖPPELMANN blue® initiative.

PRODUCT FIELD OF ACTION 15 “The myriad of opportunities that everyone is given here creates a strong sense of togetherness – a special Pöppelmann feeling. I find that quite unique.”

Thomas Hannöver, Head of Initial Sampling at K-TECH® 16 and German Champion in cyclo-cross EMPLOYEES FIELD OF ACTION A dynamic and reliable partnership.

We are successful because of our employees. It is not our halls, machines or tools that have made us successful over the decades – it is the people who pave the way for a better future. This is a fundamental principle of our PPx corporate policy.

We also want to create long-term added value for those who make our business success possible in the first place. We therefore see it as a core mission to ensure safe working 26.018 conditions for our employees whilst promoting their health and education. The concepts and processes we have developed for Years of experience and competence this purpose apply to all areas of the company’s work. This not (combined length of service of all employees in December 2018) only covers our staff who work in shifts to ensure the quality of our products, but also those who work in the administrative and commercial departments.

As an industrial company in a global, dynamic market and a tasks responsibly, we rely on our committed and proactive sector that is always in the public eye, we face great challenges employees. We can count on them, day after day. After all, we every day – in terms of production efficiency and effectiveness, believe that everyone is important. Our contribution to safety at calculation viability, our presence on the global market, digital work, health and education for our employees provides proof of change and resource-saving product solutions. To take on these this maxim every single day.

HANDLUNGSFELD EMPLOYEES FIELD OF ACTION 17 SAFETY AT WORK Every single person is important to us.

For us, it is long-term success that matters. At the heart of our future sustainability lies the dedication of over 2,500 employees worldwide. During the report period, a total of 2,275 of them (as of December 2018) worked in the three plants at our headquarters in Lohne/Germany and Holdorf plant. Our employees can count on fair working conditions, both on the basis of applicable legal standards and within the framework of employment and internal company agreements.

We offer our employees long-term planning security. A total of 81 percent of staff members at the four plants in Germany are employed on the basis of permanent contracts. We do not 26,018 employ leased or contract workers. Everyone who works at Years of experience and competence Pöppelmann is employed by Pöppelmann. To cope with order (combined length of service of all employees peaks, we work together with local companies for assembly in December 2018) work. A condition of such collaboration is contractual assurance that all legal requirements, such as the minimum wage, are met. Members of our works council actively help to shape the framework conditions for our work and act as committed negotiating partners for management. Twice a year the 11.4 management is required to report at a meeting convened by the works council. Average time at company in years The working time of employees is recorded with the help of working time accounts and can be flexibly structured in many areas within the framework of legal regulations. Striking the right balance between work and family has always been of huge important to us. 36.6 The excellent working conditions at Pöppelmann are reflected in the many years of company loyalty clocked up by numerous Average age staff members. From March 2018 to March 2019, 15 colleagues of all employees celebrated 40 years of working with us while 17 more reached their 25-year anniversary. Their combined total of 1,025 ‘Pöppelmann years of service’ also bear testament to the experience and expertise that our customers and business partners can rely on.

18 EMPLOYEES FIELD OF ACTION Employee satisfaction is a great asset at Pöppelmann.

Only if employees know that their work is appreciated and our employees are also reflected in the gifts we give to those that they will be supported even during difficult times can we celebrating work anniversaries and apprentices upon successful meet our high standards of product quality and guarantee graduation. Additional gifts are distributed in the company’s them to our customers. Every team in our company is faced offices and production halls to mark many other occasions, with huge challenges every day. With comprehensive, voluntary from Christmas to International Women’s Day. Our joy at the benefits that far exceed the statutory minimum requirements, birth of a colleague’s child is also expressed through a gift, as is Pöppelmann aims to demonstrate its respect for the work of its as our gratitude to employees who are retiring. Like everyone employees. celebrating a work anniversary, we honour such employees at our grand annual company event. Alongside a wide range of training and healthcare provisions and the aforementioned working conditions, this includes Of course, even after retirement, we do not lose our connection contributing to childcare costs for daycare and holiday clubs, to our former colleagues – not only do we continue to invite special leave for specific events and work anniversaries and them to all of our company celebrations, but we also look family allowances for the relatives of deceased employees. In forward to seeing them every year at our special Christmas addition, subsidised company catering including the freshly event for retirees. And like for all of our colleagues, the annual prepared Pöppelmann salads and muesli have always been a Pöppelmann family Christmas surprise awaits them there. matter of course in our company. The close ties we have with

EMPLOYEES FIELD OF ACTION 19 HEALTH It is safe to say that we care!

We see occupational safety as a cornerstone of our Number of reportable accidents at work per responsibility for the health of our employees. To prevent 1,000 full-time employees. accidents at work and work-related illnesses, we have established a company-wide network. The Environmental, 26 Safety and Health Committee is made up of 33 members from 24 management, the heads of supply chain management from the 22 19 company’s four divisions, one safety expert, our environmental 17 17 officer, our company doctor, a representative from the works council, the fire and waste officer, the head of facility management and the head of the mould technology centre. In their regular meetings, they continuously develop and initiate measures to improve safety at work within the company.

A separate expert committee of the works council is also 2013 2014 2015 2016 2017 2018 dedicated to this area. The Occupational Health and Safety Year

Committee consists of eight members of the works council. Accidents that cause more than three days of absence are Among other things, they carry out regular inspections of considered as reportable. the production halls and company premises. Workplaces are assessed for exposure to light, noise or air. The correct arrangement of workstations and fulfilment of ergonomic requirements are also checked. Corporate health management

In the technical field of plastics processing, the focus is on Our employee benefits include a wide range of provisions that accident prevention, especially regarding work on various types have a positive effect on the health of our staff. A concept for of equipment such as injection moulding and thermoforming comprehensive occupational health management is currently machines, silos, tanks, presses, conveyors and assembly under development. machines, as well as in the areas of transport and storage. When By offering future-oriented, preventative services to maintain a new machine, system or working process is introduced, the our employees’ ability to work, we assume social responsibility related risks are assessed. The risk assessment is continuously with the aim of reducing sick leave and increasing job updated. satisfaction. Our current range of health-promoting services At 17 percentage points, the accident rates for 2018 and includes measures in the field of exercise (including subsidised 2017 were relatively low – but still not at a satisfactory level gym sessions at Hansefit und Qualitrain, stretch classes in for us. Hand injuries and cuts (19) were the most common plant 1 during working hours, subsidies for bicycle or e-bike consequences of accidents in 2018. leasing), nutrition (including fresh salads and muesli every day, apple week, water dispensers), mental health (collaboration with counselling service Talino EAP GmbH, which Pöppelmann employees can use anonymously and free of charge even for conflict situations in their personal lives) and medical care through our company doctor.

20 EMPLOYEES FIELD OF ACTION An integral part of our healthcare provision is the company’s All in all, we have set ourselves the goal of meaningfully linking legendary “God’s Pharmacy”, which Gertrud Pöppelmann and expanding our measures in the area of workplace health introduced in the 1980s. Company employees can stock up on a promotion. This also applies to our concept of legally prescribed wide range of naturopathic juices, ointments, tinctures, creams integration management, which aims to help employees and teas free of charge. overcome incapacity to work following long illnesses and keep them healthy and fit for work in the long run.

Thomas Hannöver, Head of Initial Sampling at K-TECH® and German Champion in cyclo-cross

EMPLOYEES FIELD OF ACTION 21 EDUCATION Learning for life.

The high expectations we have concerning the quality of our work are inextricably linked to the high value we place on education. We continue to train and equip our employees for the increasingly rapid technological developments in the sector – in production and administration as well as in the commercial and technical departments.

We cover most of our skilled labour needs through our own to Pöppelmann at a young age stay with us throughout their training courses. The high employment rate illustrates the entire professional lives. fundamental importance of training across all four divisions Part of our comprehensive educational concept includes of the company: of the 62 apprentices who graduated in 2018, inviting the parents of our new young employees to get to know we have taken on 50, which equates to more than 80 percent our company when their apprenticeship begins. Our experience Most of the remaining twelve young apprenticeship graduates shows that this strengthens family support for the new tasks decided to go on to further studies and university. that these apprentices will face and intensifies the feeling of In 2018, we had a total of 161 apprentices. Some 70 percent identification with Pöppelmann. We also show our appreciation of them were following technical studies while around of our young professionals by holding a graduation ceremony at 15 percent were pursuing business qualifications and another the end of the apprenticeship. 15 percent were on dual study courses. We are deeply aware During the introductory week at the beginning of August, that the time spent in education is a crucial part of life that apprentices get to know all three plants in Lohne as well as has a permanent effect on every individual. Our training not the four Pöppelmann divisions KAPSTO®, TEKU®, K-TECH® and only focuses on imparting technical knowledge, but is also FAMAC® The diversity of Pöppelmann’s business fields also concerned with the personality development of adolescents. presents a significant advantage for apprentices later on: as Foresight is needed here – after all, many of those who come a rule, they work in all four business divisions and therefore complete their apprenticeships with a wide range of experience gathered under different conditions in many different teams.

In addition, we offer young people the opportunity to actively shape their working environment within the company, for instance through our dedicated Youth and Apprentices Council (JAV) and projects like the “Plasticmobile” initiative. Our comprehensive package includes above-average remuneration, a digital assessment system, basic technical instruction in the training centre (teaching workshop) and accompanying lessons.

Training start 2019

22 EMPLOYEES FIELD OF ACTION The Pöppelmann instructor team is constantly learning, too: in 2019, we launched the “Attitude to Education” workshop series to further qualify our 70-strong team of training instructors. This initiative involves collaboration with Kolping Academy and the Oldenburg Chamber of Commerce and Industry.

Head of Commercial Training Yvonne Lamping and Head of Technical Training Reinhold Blömer are the assigned contact persons in the Human Resources Department for matters concerning our young apprentices.

We also offer graduates of technical or business studies or those with a comparable qualification challenges. What skills will our employees need in ten years? the opportunity to embark upon a two-year trainee programme What role will machines and artificial intelligence (AI) play in with various areas of specialisation as a further springboard everyday business? What prerequisites must we as a company to their career. Over the course of the two years, each trainee create today in order to successfully master these tasks? will work in different areas and is accompanied by a mentor. In addition to a development programme, comprehensive project Development demands technical, methodological, social work is also part of the trainee programme. The contact person and personal skills. At the same time, it is important to us as a for trainees is Katrin Husmann from the Human Resources company that we use our employees in accordance with their department. strengths.

Since 2012, the Pöppelmann Academy has also offered Germany provisions for internal personnel development. All of our Lower Saxony measures focus on providing needs-based assistance while meeting our operational requirements. If necessary, they are Vechta district supplemented by individual external provisions. In consultation Plastics industry with their manager, every Pöppelmann employee can sign up for courses to help them attain their development goals. Pöppelmann In addition, every staff member has the opportunity to 123456789 10 continue their education alongside their job with the support Training rate [%] of the company, for instance through specialist training in the technical field. Upon successful completion, Pöppelmann Source: Federal Employment Agency North-East Statistics Service (reporting date 30 June assumes 50% of the costs up to a maximum of 5,000 euros. 2018); German Association for Plastics Packaging and Films (sustainability report 2018, page 58) Extra-occupational training gives employees the opportunity to apply internally for positions with more responsibility. This, too, is a sign that at Pöppelmann, we place great emphasis on Regardless of education, we support the continuous personnel development and long-term employee retention. development of our employees. We see this as a critical success factor to ensure our competitive ability in the future, too. To give In 2018, a total of 2,073 employees took advantage of 7,887 an example, ever-advancing digitisation presents us with many personnel development measures for further learning.

EMPLOYEES FIELD OF ACTION 23 “With our extensive and long- standing experience, we can work out new solutions aimed at improving the quality of the recycled materials today.”

Otto Bavendiek, 24 Head of Compounding, Holdorf RESOURCES FIELD OF ACTION Efficient use of resources.

We want to use resources efficiently and avoid environmental damage in order to enable subsequent generations to have a future worth living. We are committed to the responsible use of resources, especially the raw material plastic, and using energy effectively. Right from product design, we take the effects on the environment during the entire product life cycle into account.

Pöppelmann has voluntarily participated in the European Union’s Environmental Management and Audit Scheme Over 60 million (EMAS) since 1996. Through this, we have been able to develop ourselves steadily, and sustainably improve our environmental plant pots delivered in Circular blue. impact. We publish regular environmental statements to inform (September 2018 to September 2019) staff and the public about our environmental performance.

With regard to our energy requirements, our energy management system certified according to DIN EN ISO 50001 We process plastic into high-quality materials. We use both continuously exploits savings potential and thus increases the virgin plastic – synthetically produced from crude oil – and company’s energy efficiency. This happens in all energy-relevant recycled material from plastic waste. Our manifested goal is to areas, from innovative plant technology to energy-saving continue to minimise the consumption of fossil resources in the lighting and IT. Through the efficient use of energy, we aim to processing of the forward-looking material plastic. We achieve minimise our impact on the environment and make a decisive this through comprehensive concepts that further advance the contribution to climate protection. cost-effective use of recycled materials.

At the beginning of 2018, we established the PÖPPELMANN blue® initiative to bundle all company activities that promote a closed raw material cycle.

Our aim of using resources efficiently and effectively relates to all production factors. Our energy requirements for generating electricity and heat create emissions. We also depend on water and soil as natural resources and thus impact the environment in this way, too. Taking economic and technical aspects into account, we have long pursued the aim of achieving the best possible ecological compatibility of our work.

We have been monitoring and improving our environmental impact for over 20 years.

RESOURCES FIELD OF ACTION 25 PLASTIC Increasing the use of recycled material.

The material we process has fallen into disrepute. The We have many years of experience in processing recycled production, processing, use and disposal of plastic is materials. For over 40 years, these so-called secondary materials surrounded by much controversy in society and politics. The have been incorporated in production by our TEKU® division. At triggers for this were, quite rightly, shocking images of great TEKU®, the percentage of recycled material has long been more swaths of plastic in our oceans, appalling reports and studies than 80 percent. The use of recycled material is more difficult on microplastic particles found in the environment and human when it comes to the production of highly complex technical body and highly dubious disposal routes used for plastic waste. parts in the K-TECH® division. Despite this, with a proportion of 13.7% in plant 2, we were already able to exceed our 2020 target But despite all of this, plastic is the most sustainable material of 10% in 2018. in the world – if used properly. For over 100 years, it has been offering innovative answers for future-oriented applications and Projects like the new plant pots made of post-consumer thus is and remains the material of the future. recycled material (PCR) are taking a decisive step further. After all, this recycled material is made exclusively using plastic For us, handling plastic responsibly means: we use innovative waste collected through household recycling. The plant pot in product development to minimise consumption and thus the colour Circular blue is designed in such a way that it can conserve fossil resources, especially through the use of recycled be disposed of through household recycling, thus enabling materials. the subsequent sorting and reuse of its material. With this, Pöppelmann TEKU® was able to close the material cycle with a series product at the same stage of the value-added chain for Proportion of recycled material [%] the first time – positioning itself as a pioneer in the industry. As part of the company-wide PÖPPELMANN blue® initiative, Plants 2018 Target 2020 the development teams in all four divisions are working on concepts to close the material cycle. Keyword: circular Plant 1 71.9 75.0 economy. This goal can only be achieved with the use of post- consumer recycled materials. Plant 2 13.7 10.0 In light of legal stipulations and customer requirements, secondary plastic can only be used for a handful of products Plant 3 0.0 / in the FAMAC® division. Our position: Although society and Plant CP 100.0 / political circles are calling for an increased use of PCR recycled materials for cosmetics and food packaging, current regulatory conditions still make this largely impossible. We believe that Use of recycled materials in production. politicians and public authorities should work together with all industry stakeholders – and, of course, in compliance with the requirements of consumer protection – to make the use of PCR possible.

26 RESOURCES FIELD OF ACTION Compounding, Holdorf

About our material: we use almost exclusively thermoplastics To increase the use of recycled materials in our production, to manufacture our finished parts. These are easy to process we face the constant task of tapping new material flows. A task and recycle. In plants 1 and 3, we predominantly use the that also involves technological challenges. An indispensable mass plastics polypropylene, polyethylene and polystyrene. prerequisite for this is detailed market knowledge and thus In plant 2, engineering plastics like polyamide, polyacetale, close collaboration between the technology, production and polycarbonate, polyester and thermoplastic elastomers are also purchasing departments. used. Our production waste is sorted by type and processed into It must also be considered that increasing demand for recycled new products wherever possible. materials means that post-industrial recycled materials are Our material management continuously drives processes becoming more and more scarce. As part of the PÖPPELMANN forwards in order to improve efficiency. In addition to a blue® initiative, we accept the challenge of meeting our quality constant rise in the rate of recycled material use, these include standards with PCR materials, which are much more difficult a reduction in the wall thickness of finished parts, the direct to process. This is also an example of how the demand for return of material residues to production machines and limiting economic sustainability promotes ecological solutions. the variety of plastics used. We are also constantly opening up new raw material sources through technological developments. For example, we can now use recycled polystyrene material from discarded refrigerators in our production, which would have been inconceivable ten years ago.

RESOURCES FIELD OF ACTION 27 ENVIRONMENTAL IMPACT Minimising environmental impacts.

The effects of our activities and products on the environment Raw material efficiency [%] are a crucial yardstick for all company decisions. We aim to minimise our negative environmental impact through the Plants 2016 2017 2018 Target 2020 effective and efficient use of resources. Since 1996, we have pursued this through voluntary participation in the European Plant 1 97.6 98.7 98.8 98.0 Union Eco-Management and Audit Scheme, in short: EMAS. EMAS is considered as the most stringent system of sustainable Plant 2 86.9 86.4 86.5 90.0

environmental management in the world. Plant 3 81.6 86.3 87.0 90.0

A fundamental part of the EMAS regulation is the annually Plant CP 97.8 95.4 95.1 98.0 updated environmental statement which we use to inform the public, our staff and interested parties about our environmental performance. Supplied raw materials in relation to delivered products.

Part of the continuous improvement process is the definition of goals and programmes. To do this, we regularly analyse Energy and evaluate environmentally relevant procedures, figures, programmes and audit results and adapt our processes to new Energy is our most significant environmental factor. More on this findings derived from them. in the Energy section.

We have identified our key environmental issues: Waste Raw materials / products Waste quantities are accounted for in an annual balance sheet. Recycling and waste disposal is carried out by specialist UTo minimise the environmental impact, we already consider waste disposal companies. Separate collection and the return environmentally relevant factors during product development of product waste into the production process are, wherever by including energy usage, raw material consumption and possible, a matter of course for us. In order to also make waste disposal in all of our deliberations. We analyse the a contribution to PÖPPELMANN blue®, the separate waste product life cycle and pay close attention to environmentally collection of packaging materials for “yellow bin” recycling was friendly product design. This includes, for instance, the introduced within the company. reduction of wall thicknesses, the choice of materials and recyclability. An important indicator for us is raw material efficiency, which illustrates how efficiently we were able to use resources. Raw material efficiency is the ratio of parts produced and plastic used. In 2018, the quota was 98.8% in plant 1, 86.5% in plant 2, 87.0% in plant 3 and 95.1% in plant CP.

28 RESOURCES FIELD OF ACTION Photo: Christian Tombrägel

Water / wastewater Emissions

We obtain fresh water from the public water supply for social Our direct CO2 emissions come from the combustion of natural areas and for cooling purposes. The required cooling water is gas through the heating of buildings and the fuel consumption circulated and reused several times. Fresh water is supplied as of vehicles. In 2018, we produced 2,188 tonnes of direct CO2 required by means of intelligent process control. Through this emissions. Indirectly, we cause emissions through our electricity process, we save considerable amounts of fresh water, thus consumption. This was 38,324 tonnes in 2018. helping to conserve natural resources. No wastewater with pollutants is accumulated in our production processes. We do not currently use our own wells, despite having a permit for a Biodiversity & land use restricted flow rate. Although the opportunities to influence are The proportion of sealed areas at our locations is 49%, 27% of limited, we have also set a target for specific water consumption which corresponds to building areas. Through the designation at each location in order to protect valuable drinking water of industrial areas, compensation measures and areas are set reserves. out by the local authorities. In light of the scarcity of space, we also embrace our responsibility for the moderate use of soil resources. For us, this means that we invest intense efforts in developing innovative and resource-saving construction concepts.

RESOURCES FIELD OF ACTION 29 ENERGY Using energy efficiently.

Every day, we strive to improve energy efficiency and develop Energy monitoring measures to reduce our energy consumption. Since the In order to record our energy consumption, we have installed introduction of the environmental management system in 1996, a large number of measuring points, which we continuously we have been actively and intensively committed to the issues monitor. This makes it possible to analyse and evaluate energy of energy efficiency and energy saving. We want to align our consumption, identify key users and develop figures. A control work with both economic and ecological responsibility for the centre has been set up to record current energy data and future. equipment statuses and transfer relevant data to Production. The challenge here is to simultaneously guarantee the quality This information can be seen by employees on monitors. of our products whilst meeting the requirements of production and workplaces and saving energy.

In order to achieve this, we work as a team and uphold open communication across all levels. The technical director assumes responsibility for the environmental management system.

We use our annual Environmental Statement to openly report on our energy-related performance.

We organise our processes for efficient and resource-saving energy consumption within the framework of certified energy management as per DIN EN ISO 50001. Key aspects here are the internal and external review, performance indicator monitoring and the implementation of measures.

One core starting point for increasing efficiency is the optimisation of energy consumption by our plant Reduction of waste heat losses technology. We also evaluate the energy consumption of In order to reduce waste heat losses, we have installed existing equipment and take advantage of possible optimisation insulation on existing refrigeration and heating equipment as measures. well as on production machinery. The following projects have already been successfully implemented: Heat recovery systems

We use heat recovery systems on our air compressors to reduce primary energy demand for heating. We also use heat pumps for the simultaneous generation of process cooling and heat for heating purposes.

30 RESOURCES FIELD OF ACTION Intelligent system control

Our plant technology is controlled by intelligent control technology in line with requirements. System status and energy consumption are recorded and presented in process visualisations.

LED lighting

We continuously update our lighting. This enables us to achieve better illumination with lower energy consumption.

Electromobility

We have converted to electromobility for inter-plant transport and some company vehicles.

Development of energy consumption [MWh]

60,244 60,810 59,666 56,830 57,122

23,872 25,559 20,293 21,129 23,346 18,529 1,8987

onsumption [MWh] 1,5721 9,920 9,847

Energy c 1,444 1,598 1,680 1,767 1,805

2014 2015 2016 2017 2018 Plant 1 Plant 2 Plant 3 Plant CP Year

RESOURCES FIELD OF ACTION 31 1st Pöppelmann Researchers‘ Sunday 32 in the Lohne Industrial Museum in November 2018 Photo: Martina Rönnau REGION FIELD OF ACTION Staying strong together.

We see ourselves as part of the local community. Just as the region strengthens us, we want to strengthen the region. Our entrepreneurial approach secures jobs and supports the local economy. We thus assume our share of responsibility for the quality of life and future opportunities of the people who live here.

More than 1,000 museum guests at the 1st Pöppelmann Researchers’ Sunday

We see this as our contribution to preserving social stability and our democratic community. We want to give back what local structures provide for us: security and solidarity. Our business success is deeply rooted in our close relationship with the local community.

This applies in particular to our headquarters in Lohne – but also throughout the region. That is because we are connected with the local people on many levels – through our employees, our neighbours, our suppliers. All the more so as plastics 1st Pöppelmann Researchers‘ Sunday in the Lohne Industrial Museum in November 2018 processing has become one of the leading industries in the Oldenburger Münsterland in recent decades. Today we are the largest employer at our main location in Lohne. We are aware of the responsibility we have, which we factor into all decisions on “Our business success a daily basis. is deeply rooted in our For us, quantitative growth is neither a goal nor an end in itself. Looking to the future, we focus more on the quality of our close relationship with products. All the steps we take towards the gradual expansion of corporate activities are examined to determine their impact on the local community.” the local community.

We want to share our success with the local community. Through our social commitment, we want to make a positive contribution to the future perspectives of our region.

REGION FIELD OF ACTION 33 FUTURE REGION The region remains our foundation.

Auch in einer globalen Welt sehen wir uns fest verwurzelt vor Ort an unserem Stammsitz in ­Lohne. Das heißt auch: Wir setzen auf vertrauensvolle und verlässliche Geschäftsbeziehungen und wirtschaften bewusst regional. Ein wesentlicher Teil unserer Lieferanten stammt aus der näheren Region und Niedersachsen. Die Handwerksbetriebe vor Ort sind bei einer anstehenden Beauftragung stets zuerst gefragt.

Even in a global world, we see ourselves as deeply rooted locally We know that our company’s success also carries the at our headquarters in Lohne. This also means that we rely on responsibility for moderate and regionally sustainable growth. trusting and reliable business relations and make a conscious The economic boom in the Oldenburger Münsterland has effort to maintain business ties in the region. A substantial consumed resources that are becoming increasingly scarce, number of our suppliers come from the direct region and Lower such as land. In order to maintain the stability of the region for Saxony. Local craftsmen are always approached first when it the future, this development must be steered with foresight. comes to commissioning. For us, this means focusing first and foremost on improving our processes and thus on internal growth. To cope with order peaks, we collaborate with local companies for the assembly and packaging of plastic components. Incidentally, the Andreaswerk workshop, a facility for people with disabilities in the district of Vechta, is also one of our contractual partners. Our condition for collaboration is the 26.37 % contractual assurance that these companies comply with all of employees who are subject to social legal requirements concerning their employees – for example insurance contributions in Lohne work regarding the minimum wage. in the plastics industry. The catering companies that provide us with meals for our employees, as well as the hotels and catering businesses where we accommodate our guests and hold our workshops and seminars, are among our local business partners. By doing business regionally, we not only want to help to save 11.32 % energy consumed by means of transport, but also make our contribution to improving social conditions in the region. After of employees who are subject to social all, good living conditions are of fundamental importance for insurance contributions in the Vechta the stability of our surrounding environment – and therefore district work in the plastics industry. also for our company’s success.

Our far-reaching performance programme, which we implement in the four divisions KAPSTO®, K-TECH®, TEKU® and FAMAC®, is the decisive factor in our own stability. As a result, we were and 1.11 % are able to act as a reliable partner for customers, employees and suppliers in times of economic volatility. For example, of employees who are subject to social during the 2009 financial crisis, we did not have to make any insurance contributions in Lower redundancies or cuts in working hours – on the contrary, we Saxony work in the plastics industry. even extended fixed-term contracts during those difficult months. We learned from some of our business partners that our orders were a lifeline. Source: Federal North-East Statistics Service, reporting date 30 June 2018

34 REGION FIELD OF ACTION Pöppelmann Plant 1, Germany, Lohne

Long-term opportunities for fans of the countryside

As one of the largest employers and taxpayers in the region, we company. We believe that this is the only way to maintain the make a significant contribution to prosperity and thus economic economic strength of the region. We are also in close contact stability in the region. Of the approximately 15,800 employees with the Oldenburger Münsterland Association, which aims to subject to social insurance contributions in the town of Lohne ensure economic development in the districts of Vechta and (reporting date: 30 June 2018, source: Federal Employment Cloppenburg, and the Oldenburg Chamber of Commerce and Agency North-East Statistics Service) some 2,156 worked for us, Industry. As a member of the Private University of Business and equating to 13.6 percent Technology (PHWT), we contribute to the retention of young professionals in the region. With our fair remuneration, we ensure well-being in a region with above-average birth rates, high employment and a In April 2018, we participated in the Jobship project organised relatively low long-term unemployment rate. Educational through Economics and Ethics study course at the University of migration is lower in Lohne than in the district of Vechta and the Vechta. This enabled us to present ourselves and our training state of Lower Saxony. We also play our part in this – our wide opportunities to 160 students – and led us to spontaneously range of training and recruitment opportunities (161 trainees in extend the application deadline for our trainee programme until 2018) also give citizens with rather low qualifications long-term the following night at 11.59 p.m. A successful measure indeed: prospects in the labour market. two of our current trainees came to us as a result of this project. The Oldenburger Münsterland Association is a partner of the Like many companies in the Oldenburger Münsterland, we are Jobship project. We see the issue of employer attractiveness faced with the challenge of an increasing shortage of skilled and employee loyalty as a strategic task to ensure responsible workers. To continue to position ourselves as an attractive and foresighted corporate management. employer in the future, we are currently developing a new concept for contemporary “employer branding”. We also consider it necessary to work together with many regional stakeholders to attract attention to and promote interest in living and working in the countryside, quite apart from our own

REGION FIELD OF ACTION 35 NEIGHBOURSHIP To good neighbours.

We warmly welcome visits from anyone curious to find out more In October 2018, we welcomed representatives from the about us. After all, trust and understanding can only really be regional and local economy to discuss the topic of sustainability developed through face-to-face interaction. This, in turn, forms at the TOP Industry Forum, an annual symposium organised the basis for lasting good relationships with the people around by Verlag Moderne Industrie, which we had the pleasure of us, in our town and in our region. hosting. Some 60 participants from a wide range of sectors and from all over Germany not only listened to specialist lectures This is especially true for our immediate neighbours, particularly but also engaged in lively discussions about the possibilities when it comes to plant 1 in Lohne. Urban development over and prerequisites of a broad-based circular system for plastic the past decades here in the block between Bakumer Straße, products. The results of this dialogue with stakeholders Wiesenstraße and Straße Zur Baumschule has meant that we and market participants have been incorporated into our have moved ever closer together and, in some places, now sustainability strategy. border residential areas directly. For us, this poses a special obligation to uphold good neighbourship, for instance by regularly testing our noise emissions. A special challenge for the future concerns the optimisation of traffic management on Bakumer Straße with regard to our delivery traffic. We are Since 2007 currently working on a modern infrastructure concept to cement our good relationship with our neighbours in the long term and the Trial Days have been held and defuse potential areas of conflict as much as possible. have been an annual event since 2013.

We always look forward to visitors

We are proud of our work and love to talk about it as often as we can. Excluding customer visits, we had a total of six company Around 100 tours in 2018, during which we introduced ourselves and our young people attend each work to various groups. Trial Day at Pöppelmann.

A further 21 visits were arranged in cooperation with schools, giving numerous young people an insight into our activities whilst offering them hands-on experience and food for thought In November, the 1st Pöppelmann Researchers’ Sunday in terms of their own career choices. counted 1,025 participants, smashing all previous visitor records Another long-standing tradition at our company involves the so- at Lohne Industrial Museum. It was a family day during which called “Trial Days” for young people. During the Easter holidays, we presented plastics processing technology in a varied, child- interested school pupils are invited to spend a day with us to friendly manner – and thus also made a statement regarding learn about ten different apprenticeships. At ten stations spread the current critical debate concerning plastic waste. A sequel is across the halls and offices in plant 1, they can experience at planned. After all, by engaging in dialogue about our work, we first hand how apprenticeships work at Pöppelmann, with our want to strengthen our connection to people in the region. own apprentices in attendance to tell them all about it. This event format has successfully established itself for potential new apprentices. After its launch in 2007, we initially ran it every two years before changing to an annual event from 2013. On average, some 100 pupils register to attend.

36 REGION FIELD OF ACTION COHESION We promote local cohesion.

Joint activities, meetings, discussions, reliable support in difficult situations – all of this promotes a sense of community and thus cohesion amongst the people around us. This is why we support a variety of associations. In keeping with our aforementioned commitment, two collaborative partners, Lohne Industrial Museum and Lohne Youth Club, have a special significance for us – and this has something to do with our company’s history.

Since 1992 Around 80 Lohne Youth Club has been providing children and young people midday meals, help with homework and visit Lohne Youth Club every day. many leisure activities.

The development of our company, which Josef Pöppelmann Youth club supports families in need and his brother established in a chicken coop in 1949, marks a The great importance Pöppelmann attaches to social chapter in the region’s industrial history. As an establishment commitment and supporting those in need is reflected by dedicated to this area of research, Lohne Industrial Museum decades of support for Lohne Youth Club. In 1990, Gertrud lies very close to our hearts. In 1997, former managing directors Pöppelmann gifted the town of Lohne with the “Alte Fabrik” – Gertrud Pöppelmann and Karl-Heinz Diekmann provided the Pöppelmanns’ former home and headquarters of the family the decisive impulse for the construction of Lohne Industrial business in Bakumer Straße – for youth work, completely free Museum. Since its opening in 1987, it had been housed in a of charge. To this day, the building remains a central meeting small building that used to be a carpentry workshop. place for children and young people in Lohne, whether for When Gertrud Pöppelmann and Karl-Heinz Diekmann left their meaningful leisure activities or support in social emergencies. operational management posts in 1997, they declared that they Pöppelmann continues to be part of the network of supporters would assume the construction financing for the long-planned for the institution, which was described in a publication by industrial museum. In 2000, the museum opened in its new Lohne Historical Society as an expression of “social conscience home opposite Lohne train station. Since then, we have closely in Lohne”. An example of the work is the youth project “Children accompanied the development of the museum into one of the Need Family”, which provides children with various types region’s most important cultural hubs. To commemorate the of support including an educational lunch club, help with industrial history of the Oldenburger Münsterland, it keeps alive homework and leisure activities, and also offers advice and the memory of the beginnings of the region’s business life and assistance to families concerning bureaucratic procedures the work of the people who made it all possible. In November and medical appointments. The youth club also offers regular 2018, we collaborated with the museum team to organise holiday care facilities, and Pöppelmann employees who wish to the 1st Pöppelmann Researchers’ Sunday in the museum. use it receive a subsidy from the company. With more than 1,000 visitors, the event served as a platform for dialogue on the subject of plastic, and met with a huge response from the public. We plan to continue with this type of collaboration in the future.

REGION FIELD OF ACTION 37 STORIES & FACES Fresh salad and muesli for 40 cents.

A Pöppelmann story about a meal made from real wholemeal grain, classic salad recipes that have been honed to perfection over decades and the wholefood mission of our legendary boss.

Elisabeth Gronemeyer, 38 Head Chef, Pöppelmann STORIES & FACES 39 “Gertrud Pöppelmann’s golden rule was: Fresh food is medicine”

hose who fancy visiting the Pöppelmann kitchen wholesalers. In the evening, we would grind the wheat and let team should head for plant 2 in Brockdorf. In a side it soak overnight. The next morning, we would then prepare it wing of hall 23, a chrome worktop gleams. Today, with cream, fresh fruit and nuts,” she says, describing the early the kitchen team are expertly portioning up carefully days. picked spinach leaves. Strawberries and goat’s cheese complete T This was joined by the Pöppelmann salads, which soon the mouthwatering salad bowls. It goes without saying that became legendary. The fresh food team made up of Hannelore these also hail from Pöppelmann, produced by the food Rudloff, Franziska Blömer, Hiltrud Rendo and later also Irmgard packaging specialist FAMAC®. Uchtmann bought the ingredients from the local store, and Together with Irmgard Uchtmann, Gerlinde Middelbeck and used them to serve their colleagues raw as well as rustic food. Mareike Hüdepohl, Head Chef Elisabeth Gronemeyer has been “Some of our very first recipes, like our Athens Coleslaw, have here since 6 a.m. Time is of the essence – all orders must be survived to this day,” notes Hannelore Rudloff, referring to some delivered to all 30 common rooms in the three plants in Lohne of the classics from the Pöppelmann kitchen. by 9.30 a.m. All employees can order a freshly prepared salad Now, three decades later, the Pöppelmann kitchen still exists, and a bowl of the legendary muesli – now with a simple click of albeit a slightly more spacious version in hall 23. The principles their mouse. Digital muesli, you could say. The cost? 40 cents have always remained the same: salad and muesli are prepared per portion. fresh every day. With regard to the muesli, however, the team The history of the Pöppelmann kitchen is also the history of has since moved away slightly from the principles of pure Gertrud Pöppelmann (1924-2009). Upholding the health of her wholefood nutrition. “We leave the cream out now. Many “Pöppelmen and women”, as the long-time company boss liked people were worried it would make them fat,” explains Elisabeth to call her staff, was always her top priority. During the mid- Gronemeyer with a grin. “Nowadays, we mix in some quark, 1980s, one aspect of health promotion in particular became her yoghurt and milk. By the way, we don’t use any sugar in our mission: healthy eating. muesli. Raisins make it sweet enough. Some people like to stir in a little honey before they eat it.” After talking to a teacher, the entrepreneur became aware of the nutritional principles of wholefoods. Gertrud Pöppelmann Of course, the Pöppelmann workforce have much more than searched for more information, attended seminars and became salad and muesli to choose from. The company is supplied convinced of the benefits. Then she decided to take her staff daily by local caterers, and food can be pre-ordered every with her on her health journey – with the deepest conviction, week. To meet urgent requirements, a range of frozen food is as Hannelore Rudloff recalls. At the time, the native of Lohne also available. The company subsidises all meals as part of its was secretary to the company founder Josef Pöppelmann comprehensive programme of social benefits. A fresh main meal and Managing Director Karl-Heinz Diekmann, before playing from the Lohne butcher, for instance, costs staff 4.23 euros, and a decisive role in the development of the company during her stew is available for 2.13 euros. many years as HR manager. Daily food deliveries to all three plants involve a sophisticated “Gertrud Pöppelmann’s golden rule was, ‘Fresh food is logistical process, which ensures that the food is served and medicine’,” she remembers. At the initiative of her boss, ready to eat on time in all 30 common rooms across the Lohne Hannelore Rudloff completed further studies as a health site. Would a canteen not be a better idea, for instance with consultant. “In hall 1, we fitted out a small room in front of the a salad bar where everyone can serve themselves as they metalworking shop as a kitchen where we prepared porridge please? Some agree it would. Hannelore Rudloff objects: and salads. We bought grain in the health food store and from “We did think about a canteen earlier. But given the size of a

40 STORIES & FACES company, one would probably not be enough. I still think that Human Resources department also believes this subject is very the current arrangement is the simplest and ultimately the most important. With regard to the food offered by the company, sustainable.” he believes there is plenty of room for improvement. “For the food provided by Pöppelmann to be worthy of the sustainable She retired in October 2017, but still feels closely connected description, it must focus on the health of employees and to the company. She is delighted to see that the commitment not just on the origin of the dishes on offer. I would like to see born out of those pioneering times continues to resonate in a wider selection for employees who, for instance, follow a the company today. Although porridge has been replaced with low-carb or low-fat diet from time to time for health reasons,” muesli, it is still hugely popular among employees. The salads he says. From his point of view as HR manager, he adds, are also a regular lunch option for a large number of staff “Employees who consciously eat well will also be fit to work members. Head Chef Elisabeth Gronemeyer keeps a note of with the company for many years to come.” everything. In 2018 alone, a total of 115,080 PP bowls filled with muesli or salad left the kitchen in hall 23. Head Chef Elisabeth Gronemeyer, who regularly attends seminars together with her team, is aware of the significance of The healthy nourishment for a busy day at work is also popular her field and the growing interest in it. “Young people today are among the young employees. One of the Pöppelmann muesli much more nutrition-conscious than we ever were,” she says. fans is 20-year-old Josef Ruholl, a tool mechanic in plant 2. “The This is not least apparent when she presents the Pöppelmann muesli is really tasty, cheap and it fills you up,” he enthuses. menu to new apprentices during the annual introductory week. The active footballer, who plays for the first-division Grün-Weiß Brockdorf men’s team, reveals that his favourite combination is muesli with strawberries. Most of the suppliers of the muesli and salad ingredients come from the region. Elisabeth Gronemeyer emphasises, “We use seasonal vegetables and source our herbs from organic retailers. The oils and vinegars we use are also high-quality premium products.”

Thomas Hannöver is another devout supporter of Pöppelmann’s fresh food from hall 23. The head of initial sampling in the Pöppelmann K-TECH® division, he is probably one of the fittest ‘Pöppelmen’. He is the German champion of cyclo- cross and, in 2019, he topped the podium for the second time since 2016 in what is a high-intensity sport that demands everything of its competitors. “I always make sure my diet is full of high-quality Head Chef Elisabeth Gronemeyer reports in the film “A dynamic and reliable partnership.” nutrition,” he says. “I know that the food prepared on the employees field of action about her experiences: https://youtu.be/2hVPH4bhRxo in the Pöppelmann kitchen fully meets my needs.” Nevertheless, the cyclist sees food as just one piece of the puzzle in the comprehensive package of benefits that the She looks at the clock. It’s time. After all, the staff will be looking company offers its employees. “We have many opportunities for their muesli again tomorrow. Elisabeth Gronemeyer shakes that everyone can take advantage of, from apprentices to the five-grain mixture into the funnel of the grain mill on the managers,” states the cyclist. He considers the strong sense of windowsill. The electric motor whirs as a bucket collects the cohesion that has developed as a result to be truly unique. He freshly ground grain. She will leave it to soak overnight. Early describes it as a “certain Pöppelmann feeling”. tomorrow, they will refine it with apples, bananas, linseed, nuts and seasonal fruit – power food for a delicious Pöppelmann The topic of nutrition is also gaining increasing importance breakfast. amongst the company’s young employees. Discussions about not eating meat, vegan cuisine, livestock breeding and crop protection methods in the local area can often be heard during the lunch hour. Frank Lammers from Pöppelmann’s

STORIES & FACES 41 STORIES & FACES Full-loop with PÖPPELMANN blue®.

Closing the loop: how Pöppelmann was inspired by Ellen MacArthur and assumed the pioneering role in responsible plastics processing. Since the beginning of 2018, TEKU® has been producing plant pots using recycled materials made from plastic packaging disposed of through household recycling.

Günther Orschulik, 42 Head of TEKU® Product Management Photo: Christian Tombrägel STORIES & FACES 43 “In order to close the loop, the product itself must also be recyclable.”

hy the colour blue? Why the name PÖPPELMANN PÖPPELMANN blue® is therefore the perfect name for the blue®? Technology Scout Benjamin Kampmann company-wide initiative that searches for solutions to close smiles and tells the story of Ellen MacArthur. the material loop for plastic products. Pöppelmann Managing The young lady and the sea. Born in England, Director Matthias Lesch sees the everyday implementation of Wshe was 24 years old when she became famous. In 2001, she the concept of a circular economy as one of the key challenges competed in the Vendée Globe, the toughest single-handed of the coming decade. “We need to ask the right questions yacht race around the world, and came in second place. today in order to make sure we find the answers for the future of For almost 100 days, she sailed alone on her yacht named the brand in time,” he emphasises. Kingfisher as she tackled the non-stop regatta through the Long before PÖPPELMANN blue® even kicked off in early 2018, Southern Ocean. In 2005, she broke the world record and the company was already pondering how more recycled was appointed a Dame Commander of the Order of the materials could be used in production. Our project developers British Empire by Queen Elizabeth II, thus carrying the title of have ample experience in the area. “At Pöppelmann TEKU®, “Dame” from then on. This was an accolade for an impressive we’ve been working with recycled material for more than performance: in 71 days, 14 hours, 18 minutes and 33 seconds, forty years. Over 80 percent of TEKU® products for commercial she sailed across more than 50,000 kilometres on the high seas, horticulture have always been made using recycled plastic making her the fastest solo yachtswoman in the world. waste,” explains Head of TEKU® Product Management Günther This was Ellen MacArthur’s first career. Her second began in Orschulik. Nevertheless, until the launch of PÖPPELMANN 2010 and is no less marked by her fighting spirit, passion and blue®, this almost exclusively involved production waste which, perseverance. She established the Ellen MacArthur Foundation. as post-industrial recycled materials (PIR), is relatively easy to In order to stop litter pollution of the oceans, the foundation reintroduce into the production of new goods. Because they aims to accelerate the transition from a “linear economy” model are generally clean and sorted, recycling also pays off from to the circular economy model. economic perspectives.

Circular economy means the raw materials used to make a product are not disposed of after use, but rather returned to the economic cycle wherever possible. After all, “We now have the knowledge and tools to build an economy fit for the 21st century,” explains her foundation’s website.

But back to the initial question. So, why blue? Benjamin Kampmann explains, “The circular economy model promoted by the Ellen MacArthur Foundation distinguishes between two raw material cycles: the colour green denotes the biological cycle of organic raw materials, whilst blue symbolises the cycle of technical materials such as metal or plastic from production to recycling.”

Technology Scout Benjamin Kampmann reports in the film “Long-term responsible solutions.” to the product field of action about his experiences: https://youtu.be/jxPFUZWoc9s

44 STORIES & FACES PÖPPELMANN blue® wants to do more. After all, the actual side-effect. Carbon prevents the pot from correctly reflecting the challenge of plastic recycling lies in household recycling. test light of the near-infrared detectors in dual-system recycling Benjamin Kampmann explains, “The aim of our initiative is plants. The result is that the type of plastic – which for plant to close the material loop so that a plant pot, for example, pots, is usually polypropylene (PP) – is not recognised and the becomes a new plant pot.” But it is easier said than done. The pot is classified as non-recyclable waste packaging. This means reason? As well as packaging made of aluminium, tin foil and that a valuable and durable raw material ends up in energy composites, household recycling also contains many different recovery after just one use. types of plastic that are dirty and unsorted. For many items “This shows that the use of recycled materials is just the of packaging, this marks the end point of the linear economy. first step on the path towards a circular economy,” states Currently, sorting systems can only filter a few types of plastic – Technology Scout Benjamin Kampmann. “In order to close the known as “fractions” in trade lingo – for reuse as post-consumer loop, the product itself must also be recyclable.” At the same recycled material (PCR), and the process is extremely complex. time, the high quality requirements of customers must also This is where the PÖPPELMANN blue® initiative comes in, be met – in this instance, those of horticultural companies. With a strategy controlled by the company’s top management: TEKU® Sales Manager Arno Zerhusen knows their requirements the PÖPPELMANN blue® steering committee is made up of meticulously. “The plant pots must be able to seamlessly shareholder and Chair of the Advisory Board Catherin Vitale, integrate into the automatic process. The material plays a shareholder Maximilian Forst, advisory board member Dr decisive role here.” Karlheinz Bourdon and Managing Directors Norbert Nobbe Back then, the task was defined – and the search for new and Matthias Lesch. Various division representatives also answers began. How should the pot be designed to make sure participate in the regular committee meetings as PÖPPELMANN that sorting systems classify it as PP? Which recycled material blue® experts. Shareholder Catherin Vitale emphasises, “The would guarantee the required quality? And which expert PÖPPELMANN blue® initiative has a huge strategic significance partners could support the company on this path? Pöppelmann for us shareholders.” She is confident that the circular economy made initial contacts with the dual-system operator ‘Der Grüne will be the future, especially for non-durable plastic products Punkt’ (The Green Dot). A series of workshops and meetings such as plant pots or packaging.” followed. Finally, the concept of the blue plant pot emerged. Technology Scout Benjamin Kampmann is the project manager And at this point, it was already clear just how decisive a role of the initiative. He can still remember clearly the beginnings eco-design would also be in the future in the industry in order to of PÖPPELMANN blue®. “In 2016, I was commissioned to help close the material loop. TEKU® with the development of a recyclability concept. The A huge field of work, only suitable for team players. “Progress focus was on the plant pot, since there was already a lot of can only be achieved together with all stakeholders, right down experience with the use of recycled materials here.” to retailers and consumers,” says TEKU® Sales Manager Arno TEKU® Product Manager Günther Orschulik says that the Zerhusen. Legal requirements and social demands are only innovative potential of a simple plastic pot for horticulture is one side of the story. The Pöppelmann project developers generally underestimated by the general public. “At first glance, know that in order to promote marketable solutions in terms the product does not really give much away. But its special of a circular economy, we have to be ready to fundamentally features lie in the detail.” In order to produce such a pot in a change our thinking – and to start all over again repeatedly. cost-effective and resource-saving way, it all comes down to When production of the recycled pots began at Pöppelmann, a tenth of a gram in material usage and, later on, tenths of a completely new and unknown odours were released from the second in production. Once they are with the customer, the pots machine. The PCR material that was originally chosen releases would have to ensure automatic and fault-free processing on vapours when heated and workers complain of the smell and the modern potting machines. “Modern horticultural businesses headaches. are industrial companies with high levels of automation,” These were working conditions that no one would be expected explains Günther Orschulik. to endure at Pöppelmann. Other recycled materials were However, the crunch point lies elsewhere. In order to achieve tested and the production equipment was adapted. Finally, the degree of opacity necessary for optimum plant growth, the solution was ready to go into production. In January 2018, carbon is often added to the colour. But there is an undesirable Pöppelmann TEKU® took to the world’s leading trade fair for

STORIES & FACES 45 horticulture, IPM in Essen, to reveal the result: a plant pot Not only at TEKU®: the first PÖPPELMANN blue® product to in the striking colour Circular blue. Industry representatives go into series production will soon be followed by more. The were extremely interested. Including the GBZ Horticultural KAPSTO® division has already included plastic protective Centre in Papenburg. Its sales manager Andreas Brinker was elements made of PCR in its range. And the Pöppelmann impressed by the sustainable product concept, and soon FAMAC® division is now producing packaging buckets, thereafter supermarket customers discovered the blue plant containers and boxes for the non-food sector as part of pots on shelves with the kitchen herbs. This was soon followed PÖPPELMANN blue®. by important certification: The pot in Circular blue fulfils the Ellen MacArthur remains the role model – with fighting spirit, requirements for the Blue Angel and the RAL Quality Mark passion and perseverance. issued by RAL-Gütegemeinschaft Rezyklate aus haushaltsnahen Wertstoffsammlungen (link:www.ral-rezyklat.de ).

Success is a motivator. The new Packaging Act that came into force on 1 January 2019 now sets the framework. Project Manager Orschulik even sees it as an opportunity. After all, “The need for post-industrial recycled materials that are easier to process will increase. This will make the offer currently available to us in horticulture even scarcer. However, we are ready and have the technology to optimally process the available quantities of collected recyclables.”

Arno Zerhusen, Günther Orschulik, Ulrich Lampe, Benjamin Kampmann (from left) Photo: Christian Tombrägel

Meanwhile, Sales Manager Zerhusen describes 2018 as a hugely successful start for PÖPPELMANN blue®: “We are industry pioneers in this area. Countless discussions with customers have shown us that we have helped to reach a decisive turning point. There is no doubt that the attitude of consumers must continue to change – plastic is neither waste nor a fundamentally bad material. On the contrary, it is a valuable raw material that is not only very suitable for recycling but also requires our responsible treatment.”

46 STORIES & FACES The plant pots in the colour Circular blue are 100 % recyclable. The plastic content consists of 100 % recycled plastic. Thus the material loop is closed. Photo: Christian Tombrägel 47 STORIES & FACES A day at the museum: let’s talk about plastic.

With the 1st Pöppelmann Researchers’ Sunday in the Lohne Industrial Museum in November 2018, the company provided an insight into plastics processing technology – and asked pressing questions. Plastic waste in the oceans and microplastics in the environment have brought the entire industry into disrepute.

1st Pöppelmann Researchers‘ Sunday 48 in the Lohne Industrial Museum in November 2018 Photo: Martina Rönnau STORIES & FACES 49 “It is crucial to include the region in the discussion on current issues in the plastics industry.”

unday 18 November 2018, 10.55 a.m.: Daniel Petter, Commission presented its strategy on plastic. Plastic and plastic head of Pöppelmann technology scouting, does recycling had become issues that deeply moved the public. a final scan of the large exhibition room in Lohne This current news situation was repeatedly discussed by Industrial Museum. Everything is in order – the the Researchers’ Day organisation team. For instance, the 17 stations for young plastic researchers are ready, from the S apprentices who wanted to present their “Plasticmobile” shredding machine to the filament printer. On the stroke of initiative in the museum questioned whether Pöppelmann 11 a.m., the doors to Lohne Industrial Museum open. The 1st really did have nothing to do with marine pollution. “If a Pöppelmann Researchers’ Sunday begins. Seven hours later, Pöppelmann plastic pot is sold in Asia and is not disposed of no one is in any doubt that the painstaking preparations were properly there, we certainly do have something to do with it,” worth it. was one argument heard. 1025: the Industrial Museum had never seen such a high For the young people behind “Plasticmobile”, Researchers’ number of visitors in one day. “We could scarcely believe it,” Sunday represented the starting signal for their work on the recounts Daniel Petter. He was part of the cross-departmental initiative. It serves as a platform for the company’s apprentices Pöppelmann project team responsible for organising the to enter into dialogue with the public about the future of Researchers’ Sunday. “Even before the doors opened, there was plastics processing. “Researchers’ Day gave us a good idea of a 20-metre queue of people waiting,” he recalls. what it will be like when we present our initiative at schools Museum Director Ulrike Hagemeier considers the day to be one later,” says Sebastian Menke from the organisational team. of the best events ever held at the Industrial Museum. “When During the day at the museum, he also supervised the large we began with the planning, I could never have imagined that it ideas wall, where visitors could stick their criticism, questions would reach such a huge scale. We would never have managed and ideas about plastic on post-it notes. “What alternatives are that on our own, either.” there to plastic?” could be read there, along with the request “Provide information to schools!”, the statement “Shredders are The preparations took about nine months. Daniel Petter says, cool!” and an appeal in a child’s handwriting – “We need to save “Everyone was enthusiastic about the opportunity to show the resources!” public what we do with plastic and how versatile and future- proof the material we process is.” A clear declaration against wasting our planet’s resources. “Through Researchers’ Sunday, we wanted to convey our The Pöppelmann team wanted to open up active, direct and message that if used properly, plastic is a sustainable material,” confident dialogue with people in the region – in spite of and explains Daniel Petter, describing the starting point for the precisely because of the growing public pressure on the entire organisational team’s considerations. The day had to be industry. Throughout 2018, there were almost daily reports of entertaining and informative for museum visitors and at the plastic waste floating in the oceans, sea animals perishing with same time offer an insight into the technology used in plastics their stomachs full of plastic residues and microplastics in the processing. “A particular challenge for us was how to present environment. In early 2018, China imposed an import ban on the technical processes in a way that the general public would plastic waste. Dubious disposal methods for plastic packaging immediately understand.” waste came to light. Around the same time, the European

50 STORIES & FACES Thus, the day at the museum became an event that was met Ulrike Hagemeier can well imagine giving the subject of with astonishment and visible enthusiasm. While Lohne-based plastic a larger space in the permanent exhibition, “also as a percussionist Carlo Runnebom experimented with Pöppelmann forum for the debate around plastic.” The expert for regional products to make a plastic orchestra with children in two industrial history emphasises that the representation of this workshops, Pöppelmann apprentices explained the basics of technologically fascinating industry would be a unique feature plastics processing at the discovery stations – demonstrating offered by the museum, which is certified by the Association of them in practice with real machines. Following a short circuit, Museums of Lower Saxony and Bremen. “There is no museum in children became acquainted with shredders, extruders, Northern Germany that is making the plastics industry a subject injection moulding and thermoforming processes, 3D printing, of discussion.” various types of plastic and food packaging sealing. The showstopper: those who correctly answered all questions on the stations received a “Plastic Expert” certificate, along with an invitation to attend an interview at Pöppelmann once they pass their school exams.

Nothing was to be glossed over. Instead, great care was taken to explain an array of issues, from the correct disposal of plastic waste through household recycling all the way to technological innovations that make this material possible in the first place. “At the event, I really felt that many of the visitors perceive us as a company that is aware of the responsibility that comes with its work,” says Daniel Petter. He sees this as an opportunity. “I think we should expand Director of Lohne Industrial Museum, Ulrike Hagemeier, reports in the film “Staying strong the current high level of interest through further together.” to the region field of action about her experiences: campaigns and events.” The Industrial Museum https://youtu.be/s8wSG8bgaME is also enthusiastic about the idea. “After all,” explains Museum Director Ulrike Hagemeier, “plastic represents the leading Let us rewind to 18 November 2018. On Sunday evening, after industry in Lohne.” more than 1,000 visitors of all ages leave with many new insights Pöppelmann feels a special connection to the Industrial into plastics processing, spirits are high. “I was very impressed Museum, and this is a relationship that encapsulates a to see how much work and commitment the Pöppelmann substantial part of the company’s history. When Gertrud team had invested in the day,” says Ulrike Hagemeier, adding, Pöppelmann (1924 – 2009) and Karl-Heinz Diekmann (1932 “I believe it is crucial to include the region in the discussion on – 2014) stepped down from their operational positions as current issues in the plastics industry. This is only possible with managing directors in May 1997, they decided to give a such professional content as we saw today.” surprise farewell gift to their hometown. They announced that Daniel Petter is also happy with the results. “Of course there they would take over the construction financing for the long- was still room for improvement in one area or another, but it planned industrial museum. Previously, it had long seemed was a really cool day that was only made possible by a lot of that the project – a heartfelt wish of the town’s long-term mayor teamwork. Everyone contributed their knowledge and skills Helmut Göttke-Krogmann – would never be realised. In 2000, from a wide range of departments. As a result, the event also the museum finally opened in its new home opposite Lohne demonstrated the sense of cohesion at Pöppelmann.” So will train station. he be asking for a re-run? “That would definitely be worth it,” he answers. “We certainly have enough topics to address.”

STORIES & FACES 51 STORIES & FACES At the Holdorf plant, a new life awaits plastic.

How can we conserve resources? For Otto Bavendiek, this is not a theoretical question, but rather a work assignment. His area of expertise at Pöppelmann is the use of recycled materials in plastics processing. In other words, he is a master in the art of turning old into new.

52 Compounding, Holdorf STORIES & FACES 53 “With the Holdorf plant, we now have our own technological know- how for crucial, future-oriented questions in the industry.”

he huge bales of plastic residue stand tightly packed to explain what this involves when it comes to plastics in the raw materials warehouse at the Pöppelmann processing. “The aim of compounding is to change or adjust plant in Holdorf. Rolls of labels for drinks bottles the technical characteristics of industrial waste by adding other lie directly next to piles of nonwovens for nappy components.” Every product has very specific requirements. Tproduction. Plant Manager Otto Bavendiek points to huge “Some need to be particularly impact-resistant, some need to transport sacks in another area of the hall. The big bags are withstand heat and others need to be opaque or flexible,” says full of colourful plastic granules, ground material from garden the expert. Paint is also one of the added components, which furniture. are known as additives. “Regranulate” and “regenerate” are the technical terms used for the Pöppelmann products from A visit to the Pöppelmann plant in Holdorf or, as it is known Holdorf. Regranulate is obtained from plastic regrind through a amongst Pöppelmann staff, “compounding”. Since 2013, the melting process. The same happens with regenerate, although company has used the plant to gain pioneering experience in it is also outgassed to remove moisture and volatile compounds plastics processing in order to reduce the consumption of fossil and introduce additives. The umbrella term for both is recycled fuels. “We produce recycled materials from industrial plastic materials. waste,” explains Otto Bavendiek to summarise the task of his team. A Pöppelmann trailer travels back and forth between Lohne and Holdorf every day. After all, the products made at the Holdorf plant flow back into the silos in plant 1 in Lohne.

Before becoming plant manager at Holdorf, the industrial foreman for plastic and rubber technology Otto Bavendiek was in charge of printing in the TEKU® division. Printing on plant pots is a difficult task that demands precise material knowledge. And this, too, has something to do with recycling. After all, since the beginning of the 1990s, TEKU® has used post-industrial recycled materials (PIR) to produce internationally acclaimed horticultural products in Lohne. Otto

Bavendiek was therefore already very familiar with Otto Bavendiek, Head of Compounding Holdorf, reports in the film “Efficient use of the potential applications of recycled plastics when resources.” to the resources field of resources about his experiences: https://youtu.be/CWSr7jqVUkA he was asked whether he would like to take the helm at the Compounding division in 2013. Indeed, his specialist knowledge made him the ideal candidate. Meanwhile, in the compounding production hall, workers are What exactly does “compounding” mean? It sounds more taking plastic waste from the raw materials warehouse and complicated that it is. “To compound” means “to make up” putting it into position for the start of its new product life. On or “compose”, and the plant manager is only too happy the left side of the hall stands the extruder, with which recycled

54 STORIES & FACES material production began in 2013. A conveyor belt transports Meinke also sees the future of the sector in minimising the use the plastic residue to the shredder. Contaminants such as of fossil raw materials. “This can be seen in the fact that, even cardboard and metal are filtered out of the shredded material in the automotive industry, the use of recycled materials has and a homogeneous plastic melt is created in the shredder. gained importance. However, the technical requirements are Finally, small plastic grains trickle out into the collection much higher in this area. This is precisely where promising container. “Every year, this machine produces around 5,000 opportunities lie for our compounding. Here, we can influence tonnes of recycled material,” explains Otto Bavendiek. In 2018, the material properties in a highly targeted manner.” Pöppelmann increased production capacity with a second He also points to future challenges. “Nowadays, most plastic machine, and the new extrusion system now stands at the other processors have found recycling solutions for their separated side of the hall. It can produce around 2,500 tonnes of recycled production waste. Therefore, the availability of this material will material annually. inevitably decrease.” His colleague Lukas Scheeben, head of raw Before the material leaves the plant, it has to undergo an material purchasing at Pöppelmann, experiences this market initial inspection – here in Holdorf, the quality and properties situation on a daily basis. “There is a great deal going on in this of Pöppelmann recycled material are already ascertained. market,” he explains. It will become more difficult to purchase An injection moulding machine shapes the regranulate and plastic material suitable for recycling at a commercially regenerate into plastic granules – experts use the term “mould justifiable price. proving” to describe this inspection. “Among other things, The processing of recycled material is now a market-leading we test the flow rate and impact resistance of the recycled trend – not least due to the current social pressure on the material”, says Otto Bavendiek. The characteristics are crucial plastics industry. For Otto Bavendiek, this serves to confirm his for further processing – for example in the TEKU® division. work objectives. “With the Holdorf plant, we now have our own Markus Meinke, head of technology and processes at TEKU®, technological know-how for crucial, future-oriented questions is one of those who process recycled materials from Holdorf in the industry.” – but not before critically examining it. “The procedure for our goods receiving inspection is standardised and applies to all suppliers, including our own recycled materials from Holdorf,” he explains. After all, even a supposedly simple product like a plant pot depends on the best material input. Only this way can horticultural companies ensure its smooth integration in their highly automated processes.

Only post-industrial plastic waste is processed in Holdorf. The bottom line is, “The company has the same high quality standards for the compounds Pöppelmann manufactures as for all other products it delivers,” emphasises Otto Bavendiek. It is company strategy that is now paying off, and Pöppelmann is now ready to launch its first technical compound on the market. It was developed for a product commissioned to the Pöppelmann K-TECH® division by a renowned company from the automotive industry.

A milestone, according to the unanimous assessment of everyone involved. After all, the automotive industry is currently extremely cautious with the use of recycled materials for reasons of quality assurance. After all, globally applicable standards must be adhered to. Otto Bavendiek is convinced that Pöppelmann made the right decision by establishing its own compounding facility. “With our comprehensive experience gathered over many years, we can work on new solutions aimed at improving the quality of the recycled materials today.” Markus

STORIES & FACES 55 THE COMPANY Pöppelmann – a successful ­ family-owned business.

Since 1949, Pöppelmann has developed into one of the leading manufacturers in the plastics processing industry with five production sites as well as 600 injection moulding and thermoforming machines and extruders. The “made by Pöppelmann” quality is appreciated in more than 90 countries. Today, the company is organised in four divisions.

56 THE COMPANY THE COMPANY 57 COMPANY PROFILE Pöppelmann – an innovative, family-run company with 70 years of tradition.

The Pöppelmann Group is a family-run company with headquarters in Lohne, Lower Saxony, Germany. Since 1949, Pöppelmann has developed into one of the leading manufacturers in Germany’s plastics processing industry with six production sites as well as some 650 injection moulding and thermoforming machines and extruders. “Made by Pöppelmann” quality is highly sought after in over 90 countries, which is down to 2,500 highly qualified employees around the globe – our “Pöppelmen and Pöppelwomen”.

58 THE COMPANY Our company is organised into four business divisions:

Pöppelmann KAPSTO® Pöppelmann FAMAC® has developed and produced plastic protective has developed technical functional components and elements since 1957, offering around 5,000 different packaging for the food, pharmaceutical, cosmetics, varieties. Some 3,000 of these are standard articles and medical industry since 1998, offering around while approx. 2,000 are custom orders. 1,700 different varieties.

Pöppelmann K-TECH® Pöppelmann TEKU® has developed and produced injection-moulded has produced and developed plant and cultivation technical parts with the highest quality standards for systems for commercial horticulture since 1970. the automotive and electrical industries as well as for Approx. 2,400 varieties of some 750 standard machine and equipment construction since 1962. It products are delivered. currently has around 2,600 active products.

For more information on our business divisions, please visit the Pöppelmann website. poeppelmann.com/en

THE COMPANY 59 COMPANY PROFILE Added value for customers in over 90 countries.

We have also had our own mould making facility since 1957. Our customers come from over 90 counties and are active It guarantees high quality and flexibility in mould production in a wide range of sectors and industries. As a plastics- and repair. The company’s headquarters have always been at processing company, we supply products to countless home in Lohne, Lower Saxony. Our production takes place in markets all over the world, although mainly in the automotive, four plants at our headquarters in Germany. We also have one food, pharmaceutical, medical, machine construction and production plant in France and another in the USA. A further five commercial horticulture sectors. distribution companies in Spain, Denmark, the Czech Republic, We employ more than 2,500 staff at our six production sites England and China sell our products. worldwide. A total of 2,275 employees work at our four plants Our company, Pöppelmann Holding GmbH und Co. KG, is in Germany, where around 11,700 products are manufactured, 100% family-owned. It also owns 100% of both subsidiaries including many different variants of numerous standard Pöppelmann GmbH & Co. KG Kunststoffwerk – Werkzeugbau products. We use approximately 650 plastics-processing and Pöppelmann Kunststoff-Technik GmbH & Co. KG. The machines in our four divisions. same management team governs both the holding and the subsidiaries. It is the advisory board that has ultimate and overall.

60 THE COMPANY Pöppelmann at a glance:

Headquarter in Lohne/Germany 5 production sites 2,500 employees worldwide 600 plastics processing machines 4 areas of operation: KAPSTO®, K-TECH®, FAMAC® and TEKU® In-house mould-making: WERKZEUG-TECHNOLOGIE-­ ZENTRUM® 183 trainees Customers in over 90 countries

Denmark Production site England Development centre Italy Sales location Poland Romania Spain Czech Republic

Pöppelmann GmbH & Co. KG Pöppelmann Kunststoff- Pöppelmann GmbH & Co. KG Kunststoffwerk-Werkzeugbau Technik GmbH & Co. KG Kunststoffwerk-Werkzeugbau Germany, Lohne Germany, Lohne / Brockdorf Germany, Lohne / Brockdorf

Pöppelmann Plastics USA LLC Plastiques Pöppelmann France S.A.S. Poppelmann Plastics USA, Claremont, NC France, Rixheim Kunshan Co., Ltd. China, Kunshan

THE COMPANY 61 PHILOSOPHY & VALUES Four principles and an ambitious aspiration.

How can we succinctly summarise our enthusiasm for our work, our passion for our product solutions, our strength as a team and our flexibility in a world that is changing with ever-increasing velocity – in short, our unique Pöppelmann effect? We found the answer to this question in 2017: it is called PPx.

PPx stands for Pöppelmann Excellence and describes the strategic alignment of our company, the core of our business. We have used the PPX company policy to formulate our aspiration for ourselves: It is

We are a team and win or lose together. Everyone with their We do what is really important. After all, we are well aware of individual strengths, everyone in their location and in their role. our task and know what we are talking about. Our knowledge of every last detail whilst creating and prioritising a common We do and discuss instead of prolonging and postponing. We understanding as part of a team is what sets us apart. are committed to finding sustainable solutions to challenges and keeping our promises. We do it. Better. Every day, we ask ourselves: Are we better today than we were yesterday? Will we be better tomorrow than we were today?

Our four PPx principles outline how we aim to achieve our goal.

PPx is the yardstick we use every day to measure the quality of our actions and results; during shop floor tours and team meetings, in the production hall and in the management team. Everyone contributes to ensuring that Pöppelmann remains an independent, internationally oriented and successful family business.

62 THE COMPANY PHILOSOPHY & VALUES Our four PPx principles.

The four PPx principles illustrate our philosophy and values as a fundamental corporate policy that is clear and comprehensible for everyone. Rather than being a mere theory, they are portrayed as a useful tool for everyday work. All departments interpret PPx for themselves, in accordance with their specific tasks.

1. We create added value 3. We actively design our future for our customers. with creativity and innovation.

With this, we mean we see the challenges and requirements With this, we mean we see change as an opportunity and of our customers as our own. We are not looking for short- embrace a culture of continuous improvement in our term business, but rather a long-term partnership that is entire thinking and activity. Our thinking is user-orientated. profitable for all parties. We always want the best for our Improvements are not an end in themselves, but rather create partners and actively practise this in all aspects of our customer added value for the customer. A culture of constructive criticism relationships, from consulting, the development of technical is important to us. On the way towards successful innovation, development and innovative designs to top quality, shorter failures are to be expected. It is therefore not our goal to avoid delivery times and maximum flexibility and reliability. failures, but rather to encourage success.

2. We are successful because of 4. We achieve excellent results our employees. in the long term.

With this, we mean motivated and qualified employees are the With this, we mean we measure our actions by the result. To this basic pre-requisite for our corporate success. Everyone has end, we set ourselves ambitious but realistic targets. We take a an important function in our company. We can only achieve long-term view. As part of this, our partnership with customers success together. We encourage every member of staff to is characterised by the outstanding quality of our products and assume their own responsibility. We understand management services. We live up to our responsibility towards our employees to be supporting and facilitating, not controlling. We value and now and will continue to do so in the future. We issue a binding respect each individual employee and his or her work. commitment to protecting the environment and climate, as well as to implementing occupational safety, and tomorrow we will be able to stand by our actions of today and their effects.

THE COMPANY 63 64 THE COMPANY SUSTAINABILITY MANAGEMENT Our goals for the future are firmly anchored in our tradition.

Sustainable business is not an entirely new concept for us. Our sustainability management can be described as follows: we embed already existing features in a new form, supplement it with current aspects and insights and let it grow organically within our company.

We divide responsibility for the topic into three levels. On By involving the steering committee, we can ensure that a strategic level, our governing bodies are in charge of sustainability management is understood and embraced as sustainability issues. The flat hierarchies facilitate regular a cross-cutting issue. We also want to ensure connectivity to consultation with management, advisory board and existing concepts and systems. This allows us to exploit existing shareholders regarding new developments. The direct synergies in the form of expertise, data and information in both involvement of management can be seen through the directions. Last but not least we want to gain multipliers to participation of its members in various workshops and transfer the topic to departments and implement it in everyday attendance at important events. The advisory board is involved business. in major strategic decisions. Shareholders are represented in However, the real work is done by the core team in terms of the company’s key initiatives, such as the PÖPPELMANN blue® strategic content, communication and marketing. The team is steering committee, and are thus able to help set the course at responsible for the development of the sustainability strategy, an early stage. the preparation of the sustainability strategy, the creation of the Our sustainability management is based on the PPx principles. sustainability report, internal and external communication on We use these principles to express our corporate policy. It the topic and the organisation of dialogue events. explicitly mentions social responsibility as a corporate task. Through this, the core team is firmly anchored in the company’s At the operational level, we align ourselves with existing innovation management. This is the ideal interface in order to management systems and the objectives and measures continuously check the future viability of all operational and defined therein. The integrated management system for quality, strategic matters and promote innovative solutions that are environment, energy and occupational safety forms the basis for sustainably responsible. Management is also represented in our sustainability programme, which we aim to develop further the core team, thus ensuring that the company’s executives are in coming years. In the future, we want it to include topics such also directly involved in all results of the steering committee’s as compliance, risk management and social responsibility in work. As part of the dialogue with stakeholders and the public, order to create a comprehensive approach. we want to put our work and results to the test - time and The steering committee includes representatives from various time again. The marketing and corporate communication areas of the company and management systems that are departments are therefore also involved in the work of the core relevant in relation to sustainability. These include personnel, team. purchasing, compliance, the works council, environmental, After preparing this report, we started to develop a sustainability energy and quality management, innovation, communication programme. It aims to be in accordance with the Global and marketing. The task of this steering group is to support the Sustainable Development Goals (SDGs) and will guide our development and implementation of the sustainability strategy business in the coming years. You can read more about this in and assist the core team with further questions. our next report.

THE COMPANY 65 INITIATIVES & AWARDS Excellent!

We are proud of our innovative production solutions and company initiatives, and we are always delighted when our ideas inspire others. Awards and prizes highlight our successes, which are only made possible through the dedication of all of our employees. For us, awards are both an incentive and a purpose. Day after day, we do our utmost to promote the development of future-viable plastic concepts in all four divisions of our company.

German Packaging Award, gold, 2019 for universal packaging made of post-consumer material 66 for closed raw material cycles Photo: Uwe Niklas/Stefan Kirschner

“Polite Packaging” gold German Packaging Award, German Brand Award 2019 award, 2019 gold, 2019 for PÖPPELMANN blue® for our snack tomato bucket for universal packaging made of with lattice structure post-consumer material for closed raw material cycles

pro-K Award 2019 Top 100 seal of approval, 2017 BoB “Best of Business-to-Business“ Communication Award 2017 for Pöppelmann TEKU® plant pot for Germany’s most innovative made of recycled material medium-sized company for the Pöppelmann KAPSTO® “We do it” campaign

German Brand Award 2016 Qiagen Supplier of the Year Award 2016

for the Pöppelmann FAMAC® for innovation, service, sustainability “We make the difference“ campaign and quality at Pöppelmann FAMAC®

THE COMPANY 67 COMPLIANCE Compliance management at Pöppelmann.

Acting in accordance with the law is a matter of course for us. Every one of us must observe this in all of our tasks – from our apprentices all the way to management. With our compliance management, we go a step further and commit ourselves to observing standards and values that go beyond statutory requirements.

Above all, we see our responsibility as giving our employees a Our compliance approach clear framework both for compliance with internal regulations Our compliance approach combines several different facets. and existing laws. The aim is to increase awareness amongst corruption, customs, foreign trade, risk management, code of colleagues in order to prevent any possible breach of legislation. conduct, investment policy, privacy policy, etc. Our compliance Our customers and suppliers are also increasingly emphasising management system has been in place in this form since 2018. this issue. We are increasingly asked for supporting documents We are continuously working on it, updating it to reflect current and information or assessed through on-site inspections. A issues. At the time of its creation, it includes the following successful compliance management system unites business elements: partners in the long term, creates trust, prevents follow-up costs for violations, protects and improves the reputation of our Our own code of conduct for Germany, USA, France, UK company and ultimately feeds our success. and China

Investment guideline

Privacy guidelines in accordance with the General Data Protection Regulation (GDPR)

IT security guidelines

Smeta4Pillar audit (Sedex)

Travel risk management

Customs/foreign trade guideline

68 THE COMPANY Risk management is a significant part of business. The term refers to the identification, assessment and management of all risks that affect sustainable business performance, taking into account the complex reciprocal effects between individual risks and the resulting risk-mitigating measures.

To prevent all possible risks, the development of a comprehensive compliance training concept is planned for all employees. This is to be developed in collaboration with the management in order to provide our colleagues with a clear framework for action.

Further development and professionalisation

With the increasing regulation and internationalisation of our business, demands on our compliance management system also grow. We also need to consider the legal situation in other countries where we operate. We see this as an opportunity to extend and professionalise our approach.

In this regard, we plan to introduce a global, multilingual compliance organisation for all business units in the next few years. We also want to integrate other topics in the existing framework and develop our compliance management further. This includes the following activities:

Integration of compliance and corporate social responsibility (CSR) in the PPx management system

Regulation of all donations (gifts, invitations, sponsors, etc.) We have a zero tolerance policy to rule violations. All violations Publication of compliance manual will be prosecuted in a uniform, consistent manner. To ensure this, all employees, customers, suppliers, service providers and Introduction of a separate module for customs and external stakeholders have the opportunity to notify us of such foreign trade violations via various channels. Introduction of an Internal Tax Control Framework (ICF) We have not registered any legal violations to date and have for tax compliance passed all relevant audits. The aim of maintaining this status quo continues to motivate us every day.

THE COMPANY 69 GRI INDEX Our responsibility in figures.

Based on the GRI standards, we provide information and facts about the economic, ecological and social effects of our work. GRI stands for Global Reporting Initiative. This international, non-profit organisation is dedicated to the development and dissemination of a global framework for sustainability reporting.

Benjamin Kampmann, 70 Technology Scout, Pöppelmann GRI index

General disclosures GRI 200 Economic Standards

Organisational profile ������������������������������������������������������������������������� 72 GRI 201 Economic Performance 2016 ��������������������������������������������� 83 Strategy ������������������������������������������������������������������������������������������������� 77 GRI 202 Market Presence 2016 ���������������������������������������������������������� 85 Ethics and integrity ����������������������������������������������������������������������������� 78 GRI 203 Indirect Economic Impacts 2016 ��������������������������������������� 85 Governance ������������������������������������������������������������������������������������������ 79 GRI 204 Procurement Practices 2016 ���������������������������������������������� 86 Stakeholder engagement ������������������������������������������������������������������ 80 GRI 205 Anti-corruption 2016 ������������������������������������������������������������ 87 Reporting practice ������������������������������������������������������������������������������� 81 GRI 206 Anti-competitive Behaviour 2016 �������������������������������������� 88

GRI 300 Environmental Standards GRI 400 Social Standards

GRI 300 Environmental Standards ��������������������������������������������������� 89 GRI 401 Employment 2016 ���������������������������������������������������������������� 99 GRI 301 Materials 2016 ����������������������������������������������������������������������� 90 GRI 402 Labour/Management Relations 2016 ���������������������������� 101 GRI 302 Energy 2016 ���������������������������������������������������������������������������� 92 GRI 403 Occupational Health and Safety 2016 ��������������������������� 101 GRI 303 Water 2016 ������������������������������������������������������������������������������ 93 GRI 404 Training and Education 2016 ������������������������������������������ 103 GRI 304 Biodiversity 2016 ������������������������������������������������������������������� 94 GRI 405 Diversity and Equal Opportunity 2016 ��������������������������� 105 GRI 305 Emissions 2016 ���������������������������������������������������������������������� 95 GRI 406 Non-discrimination 2016 ������������������������������������������������� 106 GRI 306 Effluents and Waste 2016 ���������������������������������������������������� 96 GRI 407 Freedom of Association and GRI 307 Environmental Compliance 2016 �������������������������������������� 98 Collective Bargaining 2016 ������������������������������������������������������������� 106 GRI 308 Supplier Environmental Asessment 2016 ������������������������ 98 GRI 408 Child Labour 2016 �������������������������������������������������������������� 107 GRI 409 Forced or Compulsory Labour 2016 ������������������������������ 107 GRI 412 Human Rights Assessment 2016 ������������������������������������ 107 GRI 414 Supplier Social Assessment 2016 ����������������������������������� 108 GRI 418 Customer Privacy 2016 ����������������������������������������������������� 108 GRI 419 Socioeconomic Compliance 2016 ���������������������������������� 108

GRI INDEX 71 GENERAL DISCLOSURES

Approval sign Our company is organised into four business divisions.

GRI disclosure fully reported, data verified: Pöppelmann KAPSTO® has developed and produced plastic protective elements since 1957, offering around 5,000 different GRI disclosure fully reported, data not verified: versions. Some 3,000 of these are standard articles while GRI disclosure partly reported, data verified: approx. 2,000 are custom orders.

GRI disclosure partly reported, data not verified: Pöppelmann K-TECH® has developed and produced injection- moulded technical parts with the highest quality standards for the automotive and electrical industries as well as for machine and equipment manufacturers since 1962. It currently has around 2,600 active products.

Pöppelmann TEKU® has produced and developed plant and Organisational profile cultivation systems for commercial horticulture since 1970. The company supplies approx. 2,400 variants of some 750 standard products. GRI 102-1: Name of the organisation Pöppelmann FAMAC® has developed and produced technical We, Pöppelmann Holding GmbH & Co. KG, are a family-run functional parts and packaging for the food, pharmaceutical company with headquarters in Lohne (Lower Saxony), Germany. and cosmetics industry since 1998, as well as for medical Unless otherwise stated, the information reported relates to engineering in approx. 1,700 designs. Pöppelmann Holding GmbH & Co. KG and its subsidiaries Pöppelmann GmbH & Co. KG Kunststoffwerk – Werkzeugbau We have also had our own mould making facility since 1957. and Pöppelmann Kunststoff-Technik GmbH & Co. KG in Lohne. It guarantees high quality and flexibility in mould production and repair.

GRI 102-2: Activities, brands, products and services GRI 102-3: Location of headquarters Since 1949, Pöppelmann has developed into one of the leading manufacturers in the German plastics processing industry The company’s headquarters have always been at home in with six production sites and approx. 650 injection moulding Lohne, Lower Saxony. machines, thermoforming plants and extruders. The quality “made by Pöppelmann” is coveted in over 90 countries thanks to more than 2,500 highly qualified employees around the GRI 102-4: Location of operations globe – our “Pöppelmen and Pöppelwomen”. We have four plants at our main location in Germany – three in Lohne and one in Holdorf. We also have one production plant in France and another in the USA. Sales offices in Spain, Poland, Denmark, Czech Republic, Italy, Romania and China sell our products. The information in the report refers to our sites in Germany (see GRI 102-45).

72 GRI INDEX GENERAL DISCLOSURES

GRI 102-5: Ownership and legal form GRI 102-8: Information about employees and other workers Our company, Pöppelmann Holding GmbH und Co. KG, is 100 % family-owned. It also owns 100 % of both subsidiaries: During recent years, company growth has caused our total Pöppelmann GmbH & Co. KG Kunststoffwerk – Werkzeugbau number of employees to increase significantly. As of December and Pöppelmann Kunststoff-Technik GmbH & Co. KG. The same 2018, we have a total of 2,275 employees at our sites in Lohne management team governs both the holding and the two and Holdorf. We also employ seasonal, temporary workers, subsidiaries. The ultimate controling body is the advisory board. especially students. This predominantly occurs during academic holidays.

Employee structure GRI 102-6: Markets served

Our customers come from over 90 counties and are active in a 2017 2018 wide range of sectors and industries. As a plastics-processing Employees (total)* 2,065 2,275 company, we supply products to countless markets all over the world, although mainly in the automotive, food, pharmacy, of which male 1,651 1,801 medical, machine construction and commercial horticulture of which female 414 474 sectors. Permanent 1,770 1,842

Lower Saxony of which male 1,452 1,498

Germany excluding of which female 318 344 Lower Saxony EU excluding Germany Temporary 295 433 World excluding EU of which male 199 303 510152025303540 45 50 of which female 96 130 Share of sales [%] Full-time 1,904 2,095

of which male 1,635 1,777 GRI 102-7: Scale of the organisation of which female 269 318 We employ more than 2,500 staff at our six production sites worldwide. A total of 2,275 employees work at our four plants in Part-time 161 180 Germany, where around 5,600 products are manufactured. We of which male 16 24 use approximately 650 plastics-processing machines in our four of which female 145 156 divisions. Agency workers 0 0 Financial details like sales or profit and loss figures are subject to confidentiality in accordance with our internal regulations and are not published.

GRI INDEX 73 GENERAL DISCLOSURES

Employee structure The supply chains for the four divisions differ in light of their business activities, which is why we have strategic buyers

2017 2018 for each area in our central department. The operational procurement processes are handled in the divisions. The total Employees (total)* 2,065 2,275 number of suppliers is in the low four-digit range.

of which male 1,651 1,801 In the areas of TEKU® and KAPSTO®, we have more options of which female 414 474 to design our supply chains since we sell our products on demand-oriented and heterogeneous markets. In the K-TECH® Under 30 years of age 690 779 and FAMAC® divisions, we work together with our customers, of which male 560 612 for example from the automotive and medical sectors, to of which female 130 167 find specific solutions. In these cases, the choice of possible suppliers is limited. 30 to 49 years 953 1063 As a result, we have greater influence on material flows for of which male 778 874 TEKU® and KAPSTO®. Some of our products have been certified of which female 175 189 (for example with the Blue Angel) and we also require such certificates from our suppliers in order to ensure a completely 50 years and older 422 433 sustainable supply chain. In relation to this, we have made great of which male 313 315 progress in both divisions. For the TEKU® Circular blue plant

of which female 109 118 pots, we have succeeded in completely closing the material cycle through the use of post-consumer recycled material from *Employees subject to social security contributions in Germany (basis: December payroll) the dual system (household kerbside recycling). For KAPSTO®, we are currently creating B2B cycles to recover closure elements from our customers to process and reuse as material for new closure elements. GRI 102-9: Supply Chain Overall, raw materials (35 %), investments and tools (30 %) In accordance with the PPx principles, our primary goal is to and purchased parts (10 %) make up three quarters of the achieve 100 % delivery reliability and quality for all internal and goods purchased. In the area of TEKU®, we procure recycled external customers. We define delivery reliability as quantity materials from the raw material market and supply a large and schedule reliability. The goods and services to be provided number of product series with just a few material types. In must also be made available in the right quantity and quality at the other divisions, we use a significantly larger number of the right time. Our delivery reliability is currently 94 %. We aim different material types. Some of our customers prescribe to increase this to 96 % by 2019. We measure quality using the specific materials and thus the supply chain. Added to this are rate of complaints. In 2018, it was 2.5 %. By the end of 2019, we customers’ purchased part and packaging regulations, which aim to have reduced it to 1.6 %. make the supply chain more complex.

As part of the procurement strategy, we have set ourselves We define specific goals for our suppliers and check them financial and non-financial goals. As a purchasing department, ourselves through audits and visits. These not only include we are firmly committed to our social responsibility in the world traditional aspects such as delivery reliability, quality and (e. g. PÖPPELMANN blue®). By the end of 2025, we want to cover costs, but also other considerations such as sustainability. We at least 25 % of material requirements with recycled material are currently working together with our suppliers to eliminate from closed cycles (PÖPPELMANN blue®) and a total of 60 % with unnecessary packaging in advance. We also ask them to recycled materials. For this purpose, each of the four divisions consider the recyclability of the material when choosing their has developed its own goals, which they have passed on to us. input flows.

74 GRI INDEX GENERAL DISCLOSURES

Supply chain, purchase volumes GRI 102-11: Precautionary Principle or approach

In accordance with our environmental guidelines, we Packaging are committed to assuming responsibility for the entire Freight product life cycle – from manufacturing to recycling. The best possible ecological compatibility should be achieved Other whilst simultaneously considering economic aspects. In the Services development of our products, we take relevant environmental issues into account and influence the life cycle while Consumables considering energy consumption, raw material consumption Energy and disposal.

Purchased parts Our precautionary approach primarily concerns the avoidance of incidents that harm the environment or the health of Investments + tools employees. Instructions for conduct in emergencies are Raw material specified in the fire protection regulations, hazard prevention plan and the accident and alarm plans. Within the framework 45 50 510152025303540 of the new risk management, risks are systematically Share [%] recorded, assessed and the necessary measures implemented. Risk management includes, for example, extreme natural events (e. g. flooding) or damage to the neighbourhood and GRI 102-10: Significant changes to the organisation and its environment (e. g. as a result of a major fire). supply chain

In the last few years, plants 2 and 3 have been extended. In 2017, the FAMAC food packaging production area moved from plant 1 to the new production hall 33 in plant 3, which was completed in 2016. In 2018, the new production hall 41 in plant 2 was also completed.

The ownership structure did not change during this reporting period.

Sustainability-related aspects (such as resource efficiency and origin) are also becoming increasingly important for us. As a result, we now use raw material sources that we did not even consider a few years ago, such as the dual system (household kerbside recycling). We are currently focusing on the TEKU® division, although this will be expanded to the other areas in the future.

GRI INDEX 75 GENERAL DISCLOSURES

GRI 102-12: External initiatives

We participate in the following initiatives:

folgendenNo. Name Initiativen machen wir mit: Role of PP Description (purpose)

1 Benefits of Nature Simple member Initiative for the promotion of a sustainable horticultural industry

2 Institute for Plastics Processing in Industry and Craft at RWTH Simple member Promotion of the work of IKV Aachen Aachen University (IKV)

3 FSKZ e. V., funding body for SKZ Kunststoff -Zentrum Norbert Nobbe is a member Promotion of the work of SKZ of the board of directors

4 Gesellschaft der Freunde und Förderer des OFFIS e.V. Simple member Promotion of innovation in information and communication technology

5 Freunde und Förderer der PHWT e.V. Prof. Dr.-Ing. Carsten Bye Simple member Promotion of the work of the PHWT Centre for Materials and Technology

6 PHWT Mitglieder- und Unternehmensverbund e. V. Simple member Promotion of training at PHWT

7 Forschungsverbund ZWT e. V. Simple member Promotion of collaboration between regional companies and PHWT and amongst each other

8 Verbund Oldenburger Münsterland e. V. Simple member Strengthening the Cloppenburg and Vechta districts as an economic region and travel destination

9 RAL Gütegemeinschaft Rezyklate aus haushaltsnahen Wertstoff - Member of the quality and Promotion of the use of recycled sammlungen e. V. audit committee materials in plastic packaging

10 DIN Deutsches Institut für Normung e. V. Simple member Platform for standardisation

11 New Plastics Economy Global Commitment Signatory Promotion of the circular economy

GRI 102-13: Membership of associations

We are a member of the following associations and advocacy groups:

No. Name Role of PP Description (purpose)

1 Deutsches Verpackungsinstitut e. V. (dvi) Simple member Network of companies in the packaging industry

2 WBA Aachener Werkzeugbau Akademie GmbH Simple member Network of toolmakers

3 Oldenburgische Industrie- und Handelskammer Simple member

4 Bundesverband Materialwirtschaft , Einkauf und Logistik e. V. (BME) Simple member Trade association for purchasers, supply chain managers and logistics

5 IK Industrievereinigung Kunststoff verpackungen e. V. Member of the steering Network of companies in the plastic committee for the environment packaging industry and sustainability

6 Industrieverband Garten (IVG) e. V. Simple member Horticultural industry association

7 GKV/TecPart - Verband technische Kunststoff - Produkte e. V. Simple member Network of technical plastic product manufacturers

76 GRI INDEX GENERAL DISCLOSURES

Strategy Those who speak of sustainability are referring to an ecological balance, economic security and social fairness. We are determined to make our contribution in realising GRI 102-14: Statement from senior decision-maker this comprehensive concept for the future. Working on the sustainability strategy and report helps us to set the right course We assume responsibility – with competence and in good time. experience We would like to thank everyone inside and outside our Plastic is the material that has enabled humanity to make company who has supported us on this journey of self- ground-breaking progress for more than 100 years: in medicine assurance and route planning for the future through discussions and in the household, in communications and in mobility. and pointers, criticism and suggestions. A world without plastic is unimaginable – and undesirable. Without plastic, today’s expectations in terms of living standards We have given our report the title “We do it. Better. In joint and conditions, hygiene and modern technology could not be responsibility for tomorrow.” This is the benchmark by which we maintained. Put simply, our plant pots help to keep the world measure our performance. green. Our food packaging makes sure that quark, spreads and Executive board salads arrive fresh at the table with reliable product quality. Norbert Nobbe, Matthias Lesch, Henk Gövert Our laboratory receptacles ensure flawless blood sampling.

Our technical automotive components enable advances to GRI 102-15: Key impacts, risks, and opportunities be made in CO2-reducing lightweight construction solutions. Our protective elements protect highly complex and sensitive For our business model, sustainability means closing cycles. components against damage. We see the circular economy business model as a long-term, strategic priority that is conducive to and necessary for our Our goal is to reconcile the market demands of our industry future viability. In the TEKU® division, PÖPPELMANN blue® is the with our responsibility for future generations. This sustainability starting point of this strategy. Extending the initiative to all areas report illustrates how we do this as a leading company in of the company gives us a clear opportunity to strengthen our plastics processing. In it, we outline how this aspiration impacts pioneering role. We also want to demonstrate that plastic can on our everyday work within the company as well as in the be a sustainable material. action areas of product, employees, resources and region. In a global market shaped by price pressure, this gives We are proud of our expertise and experience in plastic. We do Pöppelmann the opportunity to stand out with the quality and not have to hide what we do today to find intelligent product sustainability of our products and brands. The prerequisites concepts for the world of tomorrow. At the same time, we see for this are investments in sustainability innovations. These great potential for improvement in the future, especially in range from process optimisations to larger business model terms of a circular economy. Sustainable production can only innovations. succeed if material cycles are closed, and it is this conviction that drives us forward. Our “circular economy” business model focuses on the use of recycled materials. This is why we will do even more to promote With our PÖPPELMANN blue® initiative, we took our first steps recycled materials across the market, including through in this direction very early on and are already reaping initial networks and projects with all stakeholders from all sectors. success. But there is a long road ahead. We cannot overcome Acceptance amongst the population will play a key role in this, it alone; it demands the collaboration of all parties involved since plastic is currently viewed extremely critically in public in politics, science, business and society. Even against this discussions. This not least also has an influence on political background, we are pleased about the current controversial decisions. discussion surrounding our material, plastic. It shows that there is great interest in our work and can provide crucial motivation It is therefore all the more important to maintain transparent for the development of sustainable product solutions. and active stakeholder dialogue – which will be decisive for

GRI INDEX 77 GENERAL DISCLOSURES

the entire industry. The initiation and promotion of cooperation Ethics and integrity and networks is only one part of transparent and active

communication. GRI 102-16: Values, principles, standards and norms In addition to sustainability, digitalisation is a trend that is of behaviour already making its mark on today’s society. Digitalisation brings Our entire corporate policy has been adapted to the challenges and opportunities, not only for processes and Pöppelmann guidelines (PPx), which were newly defined in 2017. products, but also in terms of collaboration. For a company PPx describes the comprehensive management system and the with strong regional roots like Pöppelmann, the challenge is to strategic direction of our organisation. preserve jobs while simultaneously encouraging digitalisation and offering staff new perspectives. Only by acting as a fair and We do it. Better. This is our standard for all that we do. This attractive employer can Pöppelmann remain fit for the future. standard and our four principles are the most important components of our corporate policy and our PPx management system. They provide us with a joint understanding of Pöppelmann’s internal and external direction as a foundation and framework for our actions, and ensure that we live up to our responsibility as one of our industry’s leading companies.

The four principles are:

1. We create added value for our customers.

2. We are successful because of our employees.

3. We actively design our future with creativity and innovation.

4. We achieve excellent results in the long term.

The goals of the divisions and the central departments are based on these four principles and are illustrated in the form of a PPx traffic light. In the PPx traffic light, each principle is accompanied by the aim, markets, the Pöppelmann difference, the necessary initiative and measures and the results to be achieved.

Our code of conduct describes the responsible handling of the topics of global guidelines, ethical and social principles, sustainable environmental and climate protection as well as antitrust and competition law requirements. The code applies to all employees, including the executive board and managers of all companies in the Group. Disciplinary action will be taken for any violations uniformly and consistently. In addition to all staff members, customers, suppliers and other service providers can report violations anonymously. They can do this in writing to the compliance officer or via e-mail to a specially created e-mail address.

The code of conduct will soon be published on our website.

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Governance GRI 102-21: Consulting stakeholders on economic, environmental, and social topics

The executive board engages in dialogue with stakeholders GRI 102-18: Governance structure through a variety of methods. For example, the TOP Industry Since 01.09.2019, the Executive Board of Pöppelmann Holding Forum held on our premises in October 2018 was dedicated to GmbH & Co. KG has consisted of three managing directors the topic of sustainability. The event enabled us to exchange with equal rights, Norbert Nobbe (Technology, Supply Chain ideas and experiences with customers, competitors and and Quality), Matthias Lesch (Marketing, Sales, Innovation and suppliers. The executive board also engaged in dialogue with Procurement) and Henk Gövert (Finance, HR and IT) – see also local residents at Pöppelmann Researchers’ Sunday in the GRI 102-20. Lohne Industrial Museum in November 2018. It is hoped that this format will be repeated at least every two years. Feedback In light of its legal form, there is no supervisory board at from the dialogue will be passed on to the advisory board. Pöppelmann Holding GmbH & Co. KG. The control and advisory board of the executive board is our company advisory board, which consists of five members: GRI 102-26: Role of highest governance body in setting • Catherine Vitale (Chairperson; business/tax consultant and purpose, values, and strategy shareholder) Together with the advisory board and shareholders, the • Dr Karl-Heinz Bourdon (Deputy Chairperson; Senior Vice executive board defines values, principles, strategy and goals. President Integration at KraussMaffei Technologies GmbH)

• Maximilian Forst (shareholder) GRI 102-30: Effectiveness of risk management processes • Hans Höffmann (entrepreneur from Vechta) The risk management procedures for economic, ecological and • Dr Frank Hannes (lawyer and tax advisor) social issues are monitored by the advisory board. The advisory board receives regular reports and advises the executive board. The advisory board meets four times a year and is responsible for monitoring the executive board and ensuring the interests of shareholders. It is also responsible for the company’s strategic GRI 102-32: Highest governance body’s role in sustainability orientation and investments. reporting

The sustainability report was approved by the executive board. GRI 102-20: Executive-level responsibility for economic, environmental, and social topics

The executive board is jointly responsible for economic, ecological and social issues.

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Stakeholder engagement GRI 102-41: Collective bargaining agreements

All employees are exempt from collective wage agreements. We will continue to adhere to our employment policy in this respect GRI 102-40: List of stakeholder groups in the future. This disclosure is therefore not applicable for us. Our most important stakeholders include internal stakeholders such as employees, the advisory board and shareholders as well as the executive board and external stakeholders such as GRI 102-42: Identifying and selecting stakeholders customers, suppliers, competitors and applicants/specialists We have identified our most important stakeholders using and public politics. We also included these in our stakeholder recognised methods. For this purpose, interest in and influence dialogue. The most important stakeholder groups are shown in on sustainable business at Pöppelmann was assessed for the following illustration. various stakeholders and presented as a matrix. Stakeholders List of stakeholder groups who have the greatest interest in and influence on our activity from an economic, ecological and social point of view were considered as particularly important. Consumers

ompetitors C GRI 102-43: Approach to stakeholder engagement

s e Shareho There is constant exchange between the executive board and i lde d rs o rd M b a the works council in representation of employees. A meeting o e e b E d v y m i i r a t is convened twice a year where the executive board can be C o p a s u l l i o s s s r v i y t informed of important issues and employees can ask questions.

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S W the ‘blue sofa’ format, which provides all employees with the o r d k r s a opportunity to sit down on the sofa and chat to representatives c o ou b n ive from the executive board. Important information is posted on cil cut Exe the bulletin boards and the Intranet. Ap s pli list P cant ecia We engage in daily exchange with customers and suppliers via ol s and sp ic iti bl cs Pu telephone, e-mail or in person. As part of customer dialogue, we have been carrying out anonymous customer surveys every two years since 2017.

In October 2018, we held the TOP Industry Forum on our premises. This event enabled us to intensify our dialogue with customers, suppliers, market participants and local politicians.

We also organised the first Researchers’ Sunday in Lohne Industrial Museum in November 2018. Dialogue with local residents was a key component of the event. The next Researchers’ Sunday is due to take place in November 2020.

We held interviews with customers, suppliers, competitors and local politicians for the development of our sustainability strategy. You can find out more about our expert dialogue on sustainability in stakeholder dialogue.

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GRI 102-44: Key topics and concerns raised Reporting practice

For our employees, secure, good jobs with long-term perspectives are of utmost importance. Important aspects in GRI 102-45: Entities included in the consolidated financial this respect are training and further education, alongside a statements transparent information policy. In this sustainability report, we focus on our production and Our customers value innovative, high-quality and sustainable administrative locations in Germany, since we have all the products. The focus here is on the use of recycled materials and necessary data from these locations. In the future, we also plan recyclability, as well as climate- and energy-efficient production to include our overseas locations, especially our production and transparent supply chains. sites in the USA and France. For local residents and politicians, willingness to enter into dialogue on issues such as noise, odours, traffic and water and land use is a major concern. GRI 102-46: Defining report content and topic Boundaries

Open and fair communication at eye level is extremely The key topics of our business activity were defined in several important to our suppliers. steps. After an initial environment and risk analysis, we identified a selection of company- and sector-specific issues Issues raised by stakeholders were taken into account in that are relevant to us. We supplemented these with the the materiality analysis. For the further development of the information contained in the GRI standard. With consideration sustainability strategy and the next sustainability report, given to our most important stakeholders, we have created an we want to further systematise and expand our stakeholder initial list of topics. dialogue. In a series of workshops, the sustainability steering team, which is made up of representatives from the relevant companies areas, discussed and summarised these issues. We then conducted stakeholder dialogue with external experts, including customers, market participants, local politicians and media representatives.

The results of this dialogue served to sharpen our materiality analysis further. The result: four fields of action with 12 topics that make up our sustainability strategy and about which we will report in the future.

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GRI 102-47: List of material topics GRI 102-48: Restatements of information

As the result of the analysis shown in Disclosure 102-46, we This is our first GRI report. This information is therefore not identified 12 key topics that have been assigned to four areas applicable for us. of action: product, employees, resources and region. These represent the pillars of our sustainability strategy, which will guide our thoughts and actions in everyday life in the coming GRI 102-49: GRI 102-49: Changes in reporting years. At the time of writing this report, we are formulating This is our first GRI report. This information is therefore not general and specific goals and identifying strategic indicators applicable for us. and measures. The complete sustainability programme will be part of the next sustainability report.

List of material topics

Supply chain Plastic

Eco design Environmental impact

R Energy Quality t es uc ou d rc ro e s P

E m p n lo io y g ee Re Education s Future region

Health Neighbourship

Safety at work Cohesion

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GRI 102-50: Reporting period GRI 201

The data and information in this report refer to the 2017 and Economic Performance 2016 2018 financial years.

GRI 103-1/2/3: Management approach – quality GRI 102-52: Reporting cycle As a plastics processing company, we develop, produce and This is our first sustainability report created in accordance with sell a wide range of products in various markets across the the GRI standards. We plan to publish further reports every two globe. We predominantly supply the automotive and electrical years. industries, commercial horticulture, medical technology and the packaging and food industries. All of these sectors are important and cover the basic needs of modern people: GRI 102-53: Contact point for questions regarding medicine, nutrition, mobility. the report Quality plays a central role here. After all, our products must For questions or comments regarding the report, please contact be safe, environmentally friendly and as innovative as possible [email protected]. The main contact person in order to meet the growing social demands and the ever- is Benjamin Kampmann. increasing market requirements. And all this at a fair price. This is only possible with a meticulously honed quality management system that focuses on the overall organisation and is closely GRI 102-54: Claims of reporting in accordance with the GRI interlinked with other management systems. Standards Policy and organisation We have created this report in accordance with the GRI We introduced our quality management systems back at the standards with the “core” option. beginning of the 1990s and have continuously developed them since then. Over the years, an integrated management system has emerged. Today’s management system combines the GRI 102-56: External assurance areas of occupation safety, the environment, energy, quality, The executive board has decided to subject the information in risk management and compliance with the aim of efficiently the GRI index to an external review. We expect this to increase implementing the system requirements throughout the entire the credibility and quality of our information. organisation. The application area spans the divisions FAMAC®, To review the information, we have chosen the independent KAPSTO®, K-TECH®, TEKU®, WTZ and CP Holdorf. environmental expert and specialist organisation ENVIZERT The executive board assumes overall responsibility and GmbH (Borkener Straße 68, 48653 Coesfeld), which also audits accountability for the management system. However, all staff our environmental and energy management. The test report members are responsible for compliance with requirements can be accessed online in German. and continuous improvement in their area. The management manual for quality, occupational safety, environmental protection and energy seamlessly fits into the comprehensive process landscape of the Pöppelmann Group and enables a holistic view of the company.

We want to achieve consistent and predictable results effectively and efficiently in our day-to-day work. This is why we use the ‘process-oriented approach’. This facilitates alignment concerning the development, implementation and constant improvement of the management system and promotes the

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fulfilment of customer requirements. The process-oriented Communication and employee involvement approach taps into the structure of company processes Ensuring that all of our employees identify with the company and enables a clear representation of the reciprocal effects and our objectives is a fundamental concern for us. This is why of individual sub-processes as a process landscape. Here, open and honest communication and socially responsible we differentiate between four process levels: management and ethically correct conduct are a matter of course for us. processes, value creation processes, supportive and supported We believe that the high level of qualification and motivation processes. amongst our employees plays a crucial role in our company’s In the individual divisions, a quality management system success. We promote and encourage this commitment through has been implemented in accordance with various system a range of measures, including our training and education standards. The alignment follows the respective market system, the PP Academy, the company newspaper and our requirements. ideas box. Other benefits round off the Pöppelmann standard.

• In the KAPSTO® division, a process-oriented quality Results and outlook management system as per DIN EN ISO 9001:2015 is used. This Over the past few years, we have dedicated continuous efforts spans management, value creation and supportive processes to the improvement of our internal processes and increasing and other supported processes for the subsidiaries PPUSA our productivity and quality. Last but not least, the further and PPF. The requirements of interested parties are taken into development of our management system better helpes to fulfil consideration. the increased requirements in all areas of the Pöppelmann • The K-TECH® division has implemented a quality Group and achieve the aim of sustainably oriented value management system in accordance with IATF 16949:2016 creation and the associated increase in customer benefit. which, alongside management, value creation and supportive processes, also includes further processes for the subsidiaries Pöppelmann Plastics USA LLC and Plastiques Pöppelmann France S.A.S.

• The basis of the quality management system implemented in the FAMAC® division is DIN EN ISO 9001:2015, which we expand further based on the requirements of BRC Packaging (Version 5). We have also integrated DIN EN ISO 13485: 2016 in the management system for the medical products area.

• The quality management system in the TEKU® division also follows a process-oriented approach based on the systematics of DIN EN ISO 9001:2015. The complexity of the design is aligned to the requirements of the market with the aim of providing consistent products and services that meet customer expectations and legal and regulatory requirements.

84 GRI INDEX GRI 200 ECONOMIC STANDARDS

GRI 202 The same goes for our promotion of community and culture. In Market Presence 2016 addition to the Industrial Museum and youth club in our home town of Lohne, which are among the most prominent examples of our social commitment, we support numerous other regional activities, measures and projects. So far, we have not adopted a GRI 202-1: Ratios of standard entry level wage by gender structured approach in this area. Instead, we opt for organically compared to local minimum wage developed relationships with various local communities. We pay our employees above the statutory minimum wage. Ultimately, we want to maintain good relationships with our Remuneration primarily depends on employee function. Our neighbours. Our employees and their families are not only salaries do not differentiate between genders. our residents and neighbours, but also part of other local communities. We therefore try to understand and respond to the concerns of our fellow citizens. GRI 202-2: Proportion of senior management hired from the local community For example, our growth phase has also resulted in increased strain on the local infrastructure. This leads to traffic congestion, All members of the executive board live with their families in increased noise levels and higher emissions. This is why we are Lohne or municipalities in the Vechta district. currently in the process of developing a modern infrastructure concept that will offer a solution for everyone involved.

Communication and involvement of local stakeholders

GRI 203 Good relationships are based on good communication. This is Indirect Economic Impacts 2016 why we want to ensure that local stakeholders from politics, the economy and civil society are informed and involved even more in the future. GRI 103-1/2/3: Management approach – region One example of this from the reporting period is the Citizens’ As a company with deep roots in our home region, our Dialogue carried out as part of the first Pöppelmann responsibility does not end at the site gates. On the contrary, Researchers’ Sunday, which we held in collaboration with we want to help shape a strong region with our work. Our clear the Lohne Industrial Museum in November 2018. There, we focus is on economic stability, good relationships with our explained working methods and technologies used in our neighbours and social cohesion. After all, strong companies industry and answered questions posed by members of need strong regions and vice versa. the local community, including on controversial topics in connection with plastics processing. Through company tours, Policy and organisation ‘Taster Days’ for school pupils and other events, we also strive In the decades since our foundation, the regional focus of our to increase transparency and presence – a trend that is new corporate policy has above all flourished in many personal for us, too. However, we feel good about this – after all, we see relationships and has – at least up until now – been less shaped ourselves as an integral part of society. by strategic considerations. We will also seek dialogue with local environmental We support regional suppliers and try to give them preference organisations, political and administrative bodies and other wherever possible under the same conditions. Through fair and local companies to identify and promote important regional competitive pay, we want to contribute to the consolidation issues to ensure a strong region. of regional prosperity. As the largest local employer, this is a responsibility that has always been an inherent part of our self-image.

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Results and outlook GRI 203-2: Significant indirect economic impacts

We want to continue and build on our existing commitment As one of the largest employers and taxpayers in the region, we and thus our contribution to the positive development of our make a significant contribution to prosperity and economic region. In doing this, our activities place particular emphasis on stability in the region. dialogue with the local community. From the total of approximately 15,000 workers in Lohne, we employ some 2,300 of them. With our fair remuneration, we ensure well-being in a region with above-average birth GRI 203-1: Infrastructure investments and services rates, high employment and a below-average long-term supported unemployment rate. We are one of the largest companies in the Vechta district Alongside the direct effects, the indirect consequences of and are the biggest employer in our home town of Lohne employment are also worth mentioning, which lead to an (Lower Saxony, Germany). As a result, our actions have direct improvement of social conditions at many smaller regional and indirect effects on local communities and the regional companies with which we collaborate every day. A substantial economy. We see ourselves as part of the local community and number of our suppliers come from the region (Lower Saxony). understand this as a responsibility to make a contribution to We are proud to be contributing to regional stability in this social prosperity and cohesion. way. We continuously support a number of voluntary associations Educational migration is lower in Lohne than in the surrounding and organisations in Lohne. Concerning our social commitment, district of Vechta and the state of Lower Saxony. Our wide range we have defined two focus areas: we collaborate closely with of training and recruitment opportunities undoubtedly play a Lohne Industrial Museum in the cultural and scientific fields on role in this (161 apprentices in 2018), which also give citizens the one hand while actively promoting the social work of Lohne with low qualifications long-term prospects in the labour Youth Club on the other. In 1991, the Pöppelmann family gifted market. the company’s former headquarters in Bakumer Straße to the town of Lohne to be used for youth work.

In 1997, former managing directors Gertrud Pöppelmann and Karl-Heinz Diekmann provided the decisive impulse for the GRI 204 construction of Lohne Industrial Museum. Since its opening in 1987, it had been housed in a small building that used to be a Procurement Practices 2016 carpentry workshop. When Gertrud Pöppelmann and Karl-Heinz Diekmann left their operational management posts in 1997, they GRI 204-1: Proportion of spending on local suppliers declared that they would provide the construction financing for the long-planned industrial museum. In 2000, the museum Approx. 18 % of the purchasing volume is placed regionally in opened in its new home opposite Lohne train station. Since Lower Saxony. This includes costs for electricity and gas, among then, we have closely accompanied the development of the other things. museum into one of the region’s most important cultural hubs. To commemorate the industrial history of the Oldenburger Münsterland, it keeps alive the memory of the beginnings of the region’s business life and the work of the people who made it all possible. In November 2018, we collaborated with the museum team to organise the 1st Pöppelmann Researchers’ Sunday in the museum. With more than 1,000 visitors, the event served as a platform for dialogue on the subject of plastic, and met with a huge response from the public.

86 GRI INDEX GRI 200 ECONOMIC STANDARDS

GRI 205 • Organisation Supplier Ethical Data Exchange (Sedex) – Anti-corruption 2016 Smeta4Pillar Audit (since end 2014) • Employer fiduciary duty: Travel Risk Management International SOS (ISOS) GRI 103-1/2/3: Management approach – compliance • Complete re-structuring of customs/foreign trade organisation Companies and all employees are required to comply with Company management and the compliance manager operate applicable laws, guidelines and internal regulations. The aim a zero-tolerance policy when it comes to dealing with the of the compliance management system is to systematically violation of rules. Disciplinary action will be taken uniformly create the conditions in the organisation for employees to be and consistently in the case of violations. All employees in the shown a clear framework for action concerning internal and Pöppelmann-Group as well as all customers, suppliers and legal regulations. Management and advisory bodies are also external stakeholders have the right to notify us of possible supported in ensuring proper corporate governance and thus violations via various internal and external channels (e-mail, avoiding both damage to the company and personal liability of telephone or in person). board members (advisory board, board of directors, executive board). In order to secure and increase our sustainable success, we have implemented a holistic opportunity and risk management Policy and management system approach in accordance with ISO 31000 and IDW 981. Our active The compliance management approach at Pöppelmann risk management creates transparency about opportunities is based on the ISO 19600 and IDW 980 standards and is and risks and supports the divisions in achieving their short-, documented in a compliance manual. Alongside our own medium- and long-term goals. In terms of competition, proof of commitments, we see ourselves as an integral part of our an effective risk management system as a proactive part of our customers’ supply chains. We aim to meet the increasing organisational processes serves as a decisive lever to gain or demands of customers, such as from the automotive or maintain the trust of our customers, suppliers and insurers. pharmaceutical industries. Communication and employee involvement The Compliance, Insurance & Risk Management department is Compliance is relevant to everybody, from apprentices to the responsible for this subject in our company. In organisational executive board. The topic of compliance and risk management terms, it is located in the Finance management area. is on the agenda for all senior management, supervisor and Our compliance management system has been in place since division leader team meetings. Weekly meetings are held with 2018. We are continuously develop and update it to reflect the executive board, in which current and future compliance current issues. At the time of its creation, it includes the topics are addressed and developed. following elements: During the reporting period, we have developed and • Own code of conduct for sites in Germany, USA, France, UK and implemented a training concept with special emphasis on data China with norms and rules of conduct protection and security awareness. Some of the training courses were held on-site with external specialists and via e-learning • Investment guidelines, which regulate the purpose and modules. Approx. 700 employees completed the courses. amount of expenditure and the investment procurement process A comprehensive training concept will soon be drafted in collaboration with the executive board, which will present all • Implementation of the General Data Protection Regulation employees with a clear framework for action. (GDPR): Introduction of a legally compliant organisation and corresponding processes

• IT security regulations and project data classification

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Results and outlook No significant corruption risks were identified (see also GRI 205-3). Our fundamental objective is to ensure that no legal violations are committed. These can have an adverse effect on the company, customers and suppliers. In addition, those involved GRI 205-2: Communication and training about anti- should be given a clear framework for action in order to be able corruption policies and procedures to carry out the corresponding tasks. We have a purchasing conduct guideline for our employees To date, we have not registered any incidents of corruption or to follow. Our subsistence and travel expenses guideline also failed audits. Various customer audits were carried out from partially regulate the issue of benefits in kind. Alongside the 2017 to 2018. We carry out supplier audits at regular intervals. dual-control principle, event-related training courses are also The following points define a series of topics that are to be offered depending on the area. included in the future: As part of regular meetings with the executive board, we have • Implementation of a multilingual, global compliance decided to develop a comprehensive compliance training organisation for all business units concept for all employees. This aims to provide all employees with a clear framework for action concerning all important • Classification of compliance and corporate social compliance aspects, such as corruption or cartels. responsibility (CSR) in the PPx management system

• External publication of the Pöppelmann Code of Conduct GRI 205-3: Confirmed incidents of corruption and • Benefits in kind: establishment of rules, limit values and actions taken approval processes for any benefits in kind (e. g. gifts, invitations, sponsorship, etc.) on the part of employees, No incidents of corruption have been registered to date. customers and suppliers

• Publication of compliance manual

• Introduction of SAP GTS: development of our own compliance GRI 206 module for customs and foreign trade Anti-competitive Behaviour 2016 • Internal control system for tax compliance

GRI 206-1: Legal actions for anti-competitive behaviour, GRI 205-1: Operations assessed for risks related to anti-trust and monopoly practices corruption To date, we have not registered any legal proceedings due to Funds are only released according to the dual-control principle. anti-competitive behaviour, antitrust or monopoly practices. We are currently carrying out internal checks on subsistence and travel expenses. There are no internal compliance checks at the moment; coordination with the executive board is required.

Audits are initiated by customers: in particular, customers from the automotive area carry out compliance checks on us. In addition to environmental concerns, compliance with laws and human rights, corruption is an important issue. We also examine how such issues are communicated internally and how we can raise awareness of them amongst our employees.

88 GRI INDEX GRI 300 ENVIRONMENTAL STANDARDS

GRI 300 friendly technologies are implemented. They report to the Environmental Standards executive board annually. Cross-departmental topics are addressed in numerous

committees, such as the safety and environmental committee GRI 103-1/2/3: Management approach – environment, and the energy team. energy, occupational safety Communication and employee participation As a plastics processing company, we see it as our duty to make our products and processes as environmentally conscious as The consultation and participation of our employees is of possible. The topics of occupational safety, environmental utmost importance to us. This is why we maintain open dialogue protection and energy efficiency are firmly anchored in our and include our staff members in all work processes. All of corporate policy. our employees are encouraged to actively participate in the further development of our management system. Instructions Policy and organisation and further training measures ensure that they are qualified The company policy contains conduct guidelines with regard for environmental and safety related behaviour. All employees to environmental protection, energy efficiency, occupational can access the management system documentation via an health and safety and quality. These are defined by the internal information system. Another tool for communication is executive board and updated as required. We are committed our shop floor management, in which occupational safety and to protecting the environment and creating optimal working environmental protection come first. conditions. We want to operate sustainably, use resources In the annual environmental statement, environmental sparingly, use energy efficiently and keep waste to a minimum. performance and energy related performance are communicated We maintain an integrated management system for the areas internally and externally. In it, we inform staff, the public and of environment, energy and occupational safety in accordance interested parties about the status of environmental protection. with the requirements of the EMAS regulation EC 1221/2009, Results and outlook DIN EN ISO 14001, DIN EN ISO 50001 and DIN ISO 45001. Within the EMAS framework, we have been openly communicating our We want to improve continuously! We evaluate our performance environmental protection activities since 1996. In the annual based on environmental, energy and occupational safety environmental statement, we report on our environmental indicators, for which we have set specific targets. In order performance at our sites in Lohne and Holdorf (since 2017). to achieve these, we implement the required measures through the environmental program, which contemplates The executive board is responsible for this management system. environmental, energy and occupational safety aspects. We It defines responsibilities and delegates tasks. The management evaluate the attainment of targets at regular intervals. representative is the technical director. He monitors the maintenance of the management system and ensures that Our most important key figures include the rate of accidents at corporate policy and objectives are implemented and the work, resource consumption (plastic consumption), the energy necessary funds are provided. consumption rate, waste rate and the water consumption rate.

The occupational safety specialists and environmental The effectiveness of the management system, its protection and energy officers monitor the implementation of implementation in operations and compliance with legal the requirements and advise employees and management. requirements is assessed through internal and external They manage the documentation and report annually on audits. Audit results and performance data are reported to environmental performance and energy efficiency. They the executive board annually by the responsible departments accompany the implementation of targets. The other legally and commissioned officers. These reports also serve as a required and voluntarily appointed officers contribute basis for the evaluation of the management system by the significantly to environmental protection through their executive board. If necessary, it defines the need for action for specialist knowledge. They monitor the legal and internal improvement and corrective measures in order to maintain and requirements in their area and ensure that environmentally improve the management system.

GRI INDEX 89 GRI 300 ENVIRONMENTAL STANDARDS

GRI 301 All of our divisions implement PÖPPELMANN blue® projects Materials 2016 independently. The divisions have notified the steering committee of target values for the years 2022 (target year for the current Pöppelmann strategy) and 2025 (target year for the EU strategy). The current status of the projects is presented at GRI 103-1/2/3: Management approach – resource quarterly steering committee meetings. The steering committee management and eco design is made up of five members of the group of shareholders, In addition to the careful treatment of natural resources, the advisory board and executive board. effective and efficient use of material is one of our focal points. Communication and employee involvement Here, we concentrate on our most important material: plastic. This is why we are always looking for ways to reduce material The regular steering committee meetings ensure that the consumption and close cycles. On the one hand, we want to divisions exchange information with each other and the central ensure resource efficiency as part of our production processes. departments, such as purchasing and marketing. The topic is On the other hand, we go one step further and try to close also conveyed to the workforce through reports in the company cycles in order to protect resources on a systemic level. magazine and the ‘Plasticmobile’ apprentice initiative. In addition to this, a newsletter is published at irregular intervals, Policy and management system which is aimed at all employees and reports on current projects Resource efficiency is part of our environmental management in all divisions. system. To this end, we have set ourselves ambitious goals for Results and outlook our various sites, all of which are over 90 %. The aim of this is to keep the difference between material input and output as low With the PÖPPELMANN blue® initiative, we have set ourselves as possible. For this purpose, we have implemented technical ambitious targets until 2025. Three of these should be and organisational measures that we uphold every day. highlighted: From a strategic point of view, the proportion of recycled plastic • Recyclability: By 2025, 100 % of the packaging we is the second measure we pursue in the long term. This is manufacture will be recyclable in accordance with the relevant to us because it enables us to develop the potential of standards then applicable in Germany or the EU. the circular economy. • Recycled material: In 2025, we will use at least 20 % recycled At the beginning of 2016, we started to investigate the material from closed material cycles (based on our use of recyclability of our packaging in the TEKU® and FAMAC® divisions. plastics in Germany). After successfully closing the material cycle in the TEKU® division with the Circular blue plant pot, we have adopted this • Material requirements: By 2025, we want to cover 60 % of our approach for products in all divisions. At the beginning of 2018, material requirements with recycled materials (including post- the PÖPPELMANN blue® initiative was launched, which will now industrial recycled materials). shape both our daily activities and our future. In the next report, we will be able to report on the advances of In short, the aim of PÖPPELMANN blue® is to close cycles. For the PÖPPELMANN blue® initiative. us, a closed material cycle means that we procure raw material from a source that is also used for the disposal of an equivalent product by the user. For the plant pot, this means that it is GRI 301-1: Materials used by weight or volume made of material from the polypropylene category of ‘yellow Plastic is our main material. In plants 1 and 3, we predominantly bag’ household recycling, and ca be disposed of after use in use the plastics polypropylene, polyethylene and polystyrene. the ‘yellow bag’ household recycling because it is recognised In plant 2, engineering plastics like polyamide, polyacetale, as polypropylene and is thus returned to the polypropylene polycarbonate, polyester and thermoplastic elastomers are also category. used.

90 GRI INDEX GRI 300 ENVIRONMENTAL STANDARDS

Other materials required for our production process are GRI 301-2: Recycled input materials used cardboard boxes (2,688 tonnes) and plastic packaging (439 For each plant, we define the average recycling percentage of tonnes), which we need to protect our products during plastic components produced. The proportion of recycling in transport. We also use metals (76.89 tonnes) for tool plant 1 is 71.9 %. We aim to increase this to 75 % by 2020. In manufacturing and mechanical engineering, as well as hydraulic plant 2, the recycling proportion if 13.7 %. No recycled plastic oils (46.9 tonnes) to operate our production machines. is processed in plant 3 since legal and customer requirements The plastic input remained constant during the reporting do not generally allow this for medical, pharmaceutical and period. In 2018, it was 67,034 tonnes. As part of our production food products. Nevertheless, we are also initiating our first expansion, quantities have increased by approximately 20 % projects here for the use of recycled materials in packaging. The from 54,102 tonnes (2014) over the past five years. Especially in recycling rate is already 100 % in the compounding plant. plant 3, the input increased significantly due to the construction In 2018, we launched the company-wide PÖPPELMANN of an additional production hall with new production facilities. blue® initiative, which is based on the concept of a circular Input plastics [t] economy. It makes provision for products to be manufactured from recycled plastics and aims to further increase the use of Plants 2014 2015 2016 2017 2018 recycled materials at Pöppelmann. Through this, we want to Plant 1 40,572 40,297 39,960 42,421 41,141 close material cycles on one product level. This means that the

Plant 2 6,682 7,131 7,579 8,065 8,684 material is taken from a used product and recycled to make a

Plant 3 3,292 2,741 5,024 11,742 12,474 comparable product.

Plant CP 3,556 4,567 4,665 4,935 4,735 Each one of our divisions implements its own PÖPPELMANN

Total 54,102 54,736 57,228 67,163 67,034 blue® projects independently. The first products we launched were the TEKU® Circular blue plant pots in 2018. The plant pots are designed to ensure the reliable identification of the Our use of raw materials has been significantly increased during material by waste-sorting systems, thus enabling its use as new the same period. In plants 2 and 3, we are approaching the 90 % Pöppelmann PCR granules. In this case, the PCR granules are target we have for 2020. In plants 1 and CP, we have already obtained entirely from household kerbside recycling (yellow bag exceeded 95 %. and yellow bin). Raw material efficiency [%]

Plants 2016 2017 2018 Target 2020

Plant 1 97.6 98.7 98.8 98.0

Plant 2 86.9 86.4 86.5 90.0

Plant 3 81.6 86.3 87.0 90.0

Plant CP 97.8 95.4 95.1 98.0

We are continuously working on further optimisation in order to achieve our environmental goals. For instance, we are ensuring the efficient use of materials by reducing the wall thickness of our products and material recovery on production machines.

GRI INDEX 91 GRI 300 ENVIRONMENTAL STANDARDS

GRI 302 GRI 302-3: Energy intensity

Energy 2016 Our most important figure is the energy consumption rate. The energy consumption rate is the ratio of the absolute energy consumption to the material used on-site. In light of the various GRI 103-1/2/3: Management approach – energy products and different manufacturing processes, the energy consumption rates of the four locations cannot be directly We operate an integrated management system for the areas compared. of the environment, energy and occupation safety: GRI 103- 1/2/3: Management approach – environment, energy, Energy consumption rate [MWh/t] occupational safety on page 89.

Plants 2014 2015 2016 2017 2018 Target 2020

Plant 1 1.48 1.51 1.49 1.34 1.39 1.45

GRI 302-1: Energy consumption within the organisation Plant 2 2.77 2.66 2.68 2.62 2.75 2.60

We need energy to manufacture our products. With a share Plant 3 3.01 3.59 3.13 1.99 2.05 2.50

of between 85 % and 96 % of the total energy consumption, Plant CP 0.41 0.35 0.36 0.36 0.38 0.35 electricity is the most important form of energy in all plants. Other energy sources are gas for our building heating and In 2018, the energy consumption (MWh) for process and hall fuel for our vehicle fleet. Until now, the fuel we use has been cooling increased in all locations due to significantly higher obtained exclusively from non-renewable sources. We do not outside temperatures. generate energy that is sold. The amount of energy used in MWh Plant 1: despite a 3.02 % decrease in material throughput is calculated from the consumption of electricity, gas and fuels. compared to the previous year, the energy consumption rate in Energy consumption [MWh] plant 1 rose from 1.34 to 1.39 MWh/t.

Plants 2014 2015 2016 2017 2018 Plant 2: production started with new machines in hall 41. The base load of the hall for mould cooling, heating and Plant 1 60,244 60,810 59,666 56,830 57,122 air conditioning has had an effect on the increased energy Plant 2 18,529 18,987 20,293 21,129 23,872 consumption. The energy consumption rate increased from 2.62 Plant 3 9,920 9,847 15,721 23,346 25,559 to 2.75 MWh/t. Plant CP 1,444 1,598 1,680 1,767 1,805 Plant 3: higher energy consumption was recorded at the plant. Total 90,137 91,242 97,360 103,072 108,358 We attribute this to the higher energy consumption of the air-

conditioned production halls and clean rooms in the summer Conversion factors: Petrol: 8.76 MWh/m3; diesel: 9.8 MWh/m3 months. For example, with approx. 1,485 MWh, the ventilation (Source: Swiss Agency for the Environment, Forests and Landscape, SAEFL) system in hall 33 consumed around 22.35 % more electricity than in the previous year. The energy consumption rate therefore rose slightly from 1.99 to 2.05 MWh/t of plastic.

CP plant: a second compounding plant was commissioned at the CP plant. As a result, energy consumption increased at the site. Since the plant was still in the trial stage and had not yet reached its full performance capacity, the energy consumption rate rose slightly. We expect an improvement in the energy consumption rate through the better utilisation of our plants in the future.

92 GRI INDEX GRI 300 ENVIRONMENTAL STANDARDS

GRI 302-4: Reduction of energy consumption GRI 303

As a company, we strive to achieve a permanent reduction of Water 2016 our energy consumption. Due to strong company growth in recent years, our absolute energy consumption has increased GRI 303-1: Water withdrawal by source compared to previous years. Water and wastewater are crucial environmental aspects In 2017, we set our strategic energy goals to be achieved by that we consider within the context of the environmental 2020, with 2017 as the base year for the strategy. This considers management system. We procure fresh water from the public the forms of energy electricity, gas and fuel. The specified water supply provided by Oldenburgisch-Ostfriesischer values are all measured and the fuel consumed is converted Wasserverband. We do not currently use our own wells, despite accordingly (see GRI 302-1). As part of the plant development, having a permit for a restricted flow rate. Much of our water the energy base changed and the goals were partially achieved. consumption is the result of evaporation in the cooling plants. It is therefore also necessary to adjust the goals next year (2020 Consumption is therefore weather-dependent and increases for EMAS revalidation). with rising outside temperatures, such as during the hot Energy consumption summer of 2018. In order to achieve the strategic 108,358 Unfortunately, today’s technical framework limits the 103,072 goals and continuously reduce possibilities we have to significantly reduce our water energy-related performance, we [MWh] consumption. Nevertheless, we have also set a target for specific run an energy programme, through water consumption at each location in order to protect valuable which we pursue our operational drinking water reserves. Specific measures like renovating objectives (e. g. improvement of onsumption the cooking plants and more economical pump control are energy monitoring, minimisation of examples of our activities in this area. thermal radiation losses, reduction of Energy c energy consumption for lighting). We Water consumption [m3] 2017 2018 monitor our processes and develop Year new measures through internal audits, Plants 2014 2015 2016 2017 2018 monitoring key figures and regular Plant 1 53,613 50,816 52,139 46,737 44,079 plant inspections. Plant 2 15,376 11,542 13,501 14,866 18,071

Plant 3 7,149 7,006 11,565 17,749 21,703

Plant CP 1,642 1,406 1,588 1,788 2,160

Total 77,780 70,140 78,793 81,140 86,013

As with all key figures, the values of our four plants differ considerably: plant 1 consumed approx. 2,700 m3 less water. The water consumption rate remains unchanged because less raw material was used.

Due to the commissioning of hall 41, water consumption in plant 2 increased by approx. 3,300 m3. The rate increased from 1.8 m3/t to 2.1 m3/t.

In plant 3, the water consumption rate also increased by 0.2 m3/t to 1.7 m3/t. Water consumption is around 4,000 m3 than the previous year. Production hall 33 now has significantly

GRI INDEX 93 GRI 300 ENVIRONMENTAL STANDARDS

more production machines than in the previous year. The move GRI 304 from hall 10 is complete and the new equipment has been Biodiversity 2016 commissioned.

The addition of a second extruder, which was commissioned in autumn 2018 in the CP plant, has resulted in an increase in GRI 304-1: Operational sites owned, leased, managed in, or water consumption from 1,790 m3 to 2,160 m3. adjacent to, protected areas and areas of high biodiversity value outside protected areas Water consumption is determined using water meters and the quantity of evaporated water in the cooling towers is calculated. Our plants border agricultural, commercial or residential areas. None of the plants that are the subject of this report border or are located in a protected area. GRI 303-2: Water sources significantly affected by withdrawal of water GRI 304-2: Significant impacts of activities, products, and No water sources are currently significantly affected by services on biodiversity Pöppelmann’s water withdrawal. The over 2,500 measuring points in the Oldenburgisch-Ostfriesischer Wasserverband In the development of our products, we take relevant ensure that the quantity and quality of the groundwater comply environmental issues into account and influence the life cycle with the regulations. under consideration of energy consumption, raw material consumption and disposal. We analyse the product life cycle and pay close attention to environmentally friendly product GRI 303-3: Water recycled and reused design. The use of energy-efficient, environmentally friendly product processes is particularly important. A total of 85 % of our fresh water requirements is required as cooling water for our technical systems. The cooling water As a plastics processor, plastic and microplastic pollution of the is circulated as part of our production processes. It is reused environment, especially the world’s oceans, is a key concern. until it has thickened three times and the salts contained in Our approach is to prevent plastics from being released into the the water have reached a critical concentration. As a result, environment. We achieve this by using post-consumer recycled our current saving options under today’s conditions are materials, which are recycled plastics made from used products. exhausted, since further thickening would significantly increase Through this, we help to ensure that plastic waste has a value consumption of water conditioning agents. This would also and that more and more plastic is recycled. cause a disproportionate increase in corrosion and deposition problems. This process reflects the state of the art requirements. We also believe that the opportunities to influence water GRI 304-3: Habitats protected or restored consumption are limited. Nevertheless, measures for the To offset our land use in plant 1, we have an environmental economical use of water are implemented, such as the compensatory area in the Roenbecker Possen corridor in Kroge, renovation of cooling water systems and more economical which measures 39,034 m². The area was created in accordance pump controls. with the stipulations of the nature conservation support plan and is left to grow naturally. Other compensatory areas are defined by Lohne local council with the designation of industrial and commercial areas.

Compensatory measures are always carried out in agreement with Hase Wasseracht water board, Lohne local council and the responsible authorities.

94 GRI INDEX GRI 300 ENVIRONMENTAL STANDARDS

We do not work with any other third parties in this area. The conversion factors adopted from the EMAS programme only calculate the C02 emissions directly generated during Ecologically valuable areas on the company sites, such as combustion. The conversion factors will be updated with the restored streams, floodplain development, rainwater retention, next EMAS revalidation. etc. have the following sizes:

Conversion factors: Petrol: 2,398 kg CO /l; diesel: 2,618 kg CO /l; gas: 1,879 kg CO /m3 16,963 2 2 2 (Source: Swiss Agency for the Environment, Forests and Landscape, SAEFL)

s [m ] 11,890 ea GRI 305-2: Energy indirect (Scope 2) GHG emissions 7,240 aluable ar Indirect CO2 emissions (Scope 2) are created during electricity production. In 2018, this was 38,324 tonnes. Compared to the previous year (40,307 t in 2017), we achieved a reduction of ologically v

Ec approx. 5 %.

123 Energy indirect GHG emissions (Scope 2) [t] Plants

2017 2018

CO2 from electricity generation 40,307 38,324

Conversion factor of our energy producer: 393 g CO2/kWh GRI 305 In 2017, the proportion of renewable energies in electricity Emissions 2016 generation by our energy supplier was 39.2 %.

GRI 305-3: Other indirect (Scope 3) GHG emissions GRI 305-1: Direct (Scope 1) GHG emissions Other environmentally relevant emissions (Scope 3) are of minor Our direct CO emissions (Scope 1) come from the combustion 2 importance and are not currently recorded. of natural gas through the heating of buildings and the fuel consumption of vehicles. The reference year is 2017, the year of our last EMAS revalidation. In 2018, we produced 2,188 tonnes GRI 305-4: GHG emissions intensity of direct CO2 emissions. This is an increase of 8.2 % compared to

2017 (2,022 t). A key figure for us relates to the CO2 emissions generated (Scope 1 and Scope 2) per produced tonne of plastic – the CO Direct GHG emissions (Scope 1) [t] 2 intensity. As a result of our environmental and energy policy and the corresponding measures, the CO intensity has developed 2017 2018 2 positively across all plants in recent years.

CO2 from fuel consumption 628.0 643.9

CO2 from natural gas consumption 1,394.2 1,544.0

Total 2,022.2 2,187.9

GRI INDEX 95 GRI 300 ENVIRONMENTAL STANDARDS

CO2 emissions per tonne of plastic [t CO2 / t] GRI 306 Effluents and Waste 2016 Plants 2015 2016 2017 2018 Target 2020

Plant 1 0.6 0.6 0.5 0.5 0.6

Plant 2 1.1 1.1 1.0 1.0 1.0 GRI 306-1: Water discharge by quality and destination

Plant 3 1.5 1.3 0.8 0.8 1.2 With minor deviations in individual plants, approx. 15 % of the Plant CP 0.2 0.2 0.2 0.1 0.15 fresh water is released as wastewater from sanitary water. The remaining approx. 85 % of water used is required for cooling

For the CO2 intensity, we have already achieved the goals of our purposes. The majority of this evaporates via cooling systems environmental policy for 2020. (60 % of total water), and the remainder (25 % of total water) flows directly into surface water under official requirements.

Wastewater [t] GRI 305-5: Reduction of GHG emissions

Overall, our absolute CO2 emissions (scope 1 and scope 2) Plants 2017 2018 have tended to increase in recent financial years, amounting Plant 1 16,962 17,111 to 40,512 tonnes in 2018. Compared to 42,329 tonnes of Plant 2 6,098 7,504 CO2 in 2017, the base year of the last EMAS revalidation, this equates to a reduction of approx. 4 %. However, compared to Plant 3 7,155 7,894

37,369 tonnes of CO2 in 2015, this was an increase of around 8 %. Despite the reduction in plant 1, values in plant 3 increased Plant CP 1,088 1,182 significantly in light of the construction and commissioning of Total 31,303 33,691 the new production hall as part of our company development. The products manufactured in this plant also require special The direct discharge of cooling water into surface water is production conditions (ventilation and air-conditioning subject to official approval with requirements concerning the systems). The weather conditions (hot summer 2018) also quantities introduced and compliance with limit values as contributed to this increase. specified in the Water Resources Law. No transgressions were

A positive development for us is that the CO2 intensity (see identified during self-monitoring or official inspection by an GRI 305-4), which relates to the amount of plastic processed, independent laboratory in the last year. In addition to statutory has been declining for years. requirements, we carry out weekly cooling water analyses.

GRI 306-2: Waste by type and disposal method

As a waste generator, our company is responsible for the proper disposal or recycling of all waste produced. Our guiding principle is to avoid waste and recycle raw materials and resources. We work with specialist waste disposal companies, and place utmost importance on disposal safety.

96 GRI INDEX GRI 300 ENVIRONMENTAL STANDARDS

According to the Circular Economy Act, we classify hazardous Hazardous waste: and non-hazardous waste. The waste generated at our sites is We consistently reduced hazardous waste in all sites by 2017. carefully separated according to an internal waste guide and The large increase in hazardous waste in plant 1 during 2018 disposed of following the waste hierarchy for proper waste was the result of industrial flooring renovation work. This recycling or disposal. All sites have collection points for waste renovation work had a significant effect on the total amount of and recyclables. hazardous waste and the hazardous waste rate for plant 1. Non-hazardous waste: Amount of hazardous waste [t] In 2018, the amount of non-hazardous waste generated Plants 2014 2015 2016 2017 2018 totalled 6,082 tonnes. This quantity has continued to grow in recent years, mainly due to our production growth. The waste Plant 1 62.0 37.0 43.5 33.5 107.6 rate (amount of waste per tonne of plastic used) is stable or Plant 2 35.0 16.0 14.4 9.8 11.8 diminishing in plants 1 or 3. In plant 2 and the CP plant, the Plant 3 9.0 5.0 3.4 0.9 10.4 waste rate has increased due to construction work and the Plant CP 24.7 14.6 18.6 14.5 6.8 associated waste.

Total 130.7 72.6 79.9 58.7 136.6 Amount of non-hazardous waste [t]

Plants 2014 2015 2016 2017 2018 Hazardous waste rate [%]

Plant 1 1,896 2,021 2,357 2,115 2,017 Plants 2016 2017 2018 Target 2020 Plant 2 1,432 1,369 1,450 1,612 1,749 Plant 1 1.8 1.6 5.1 2.0 Plant 3 143 169 1,124 1,824 1,881

Plant CP 235 156 100 348 435 Plant 2 1.0 0.6 0.7 1.0

Total 3,706 3,715 5,031 5,899 6,082 Plant 3 0.3 0.0 0.5 0.5

Plant CP 15.7 4.0 1.5 10.0 Non-hazardous waste rate [%]

Plants 2016 2017 2018 Target 2020

Plant 1 6.0 5.1 5.2 5.0 GRI 306-4: Transport of hazardous waste Plant 2 19.3 20.1 20.3 20.0 The disposal of waste – and especially hazardous waste – is only Plant 3 22.4 15.5 15.2 20.0 carried out by specialist waste disposal companies which also take care of its transport. Plant CP 2.5 7.5 9.4 2.5 There is no international shipment of waste. The amount of hazardous waste is specified in GRI 306-2.

GRI INDEX 97 GRI 300 ENVIRONMENTAL STANDARDS

GRI 307 Third-party companies that are contractually bound to our Environmental Compliance 2016 site are required to comply with the relevant safety standards as well as environmental regulations. Contracts signed by the organisation’s suppliers are inspected for completeness and compliance with the applicable legal provisions. The GRI 307-1: Non-compliance with environmental laws and organisation attaches particular importance to the long-term, regulations correct disposal of waste, since this is one of the company’s Environmental legal obligations predominately arise from the main environmental impacts. As part of the Circular Economy Federal Control of Pollution Act, the Water Resources Law and Act, priority is given to the safety of waste disposal in waste laws. In occupational health and safety, the Occupational collaboration with the specialist waste disposal companies. Health and Safety Act, the Industrial Safety Ordinance and The environmental standards we demand of ourselves must trade association regulations and information are of particular also be fulfilled by our partners. The purchasing department importance. Compliance with legal requirements is checked is responsible for assessing suppliers. Evaluation is based on as part of internal and external audits. During the reporting delivery performance (quality) and delivery reliability (quantity, period, no violations of environmental laws or regulations were date). Suppliers are also asked about the implementation of an identified. environmental management system. This information should always be collected from new suppliers. Currently, we are not able to assess whether this is the case.

GRI 308 Overall, we have proof of a certified environmental system (acc. to DIN EN ISO 14001 or EMAS) for approx. 46 % of our active Supplier Environmental Assessment 2016 suppliers of goods and approx. 9 % of our active suppliers for services. We are currently expanding the systematic recording GRI 308-1: New suppliers that were screened using of supplier certification, which will enable us to specify environmental criteria the proportion of suppliers with a certified environmental management system in the future. Other suppliers are guided by When purchasing goods and services, we not only consider established standards, but are not certified for various reasons economic aspects, but also ecological matters such as energy (e. g. size of company). With the provision of the same quality consumption, operating supplies, raw material usage, waste, and taking economic considerations into account, suppliers waste disposal, life cycle, disposal after use, etc. with the highest environmental standard are preferred. The purchasing or operating technology department coordinates with the client to specify the requirements for the goods, systems and services to be procured and, when placing the order, checks whether the required environmental and safety criteria are met.

The procurement of environmentally relevant substances is subject to special monitoring. In order to avoid a possible risk to people and the environment and to ensure compliance with legal stipulations, a process for the procurement and use of environmentally relevant and hazardous materials was introduced. The operational implementation is carried out through operating and work instructions.

98 GRI INDEX GRI 400 SOCIAL STANDARDS

GRI 401 Results and outlook

Employment 2016 In light of the relatively recently established PPx corporate policy, we are unable to present any results for our current strategy. Regular analyses and assessments of personnel- GRI 103-1/2/3: Management approach – worker safety relevant processes, key figures, programmes, audits and constant adaptation to new findings mean we can achieve the As an industrial company in continuous shift work, it is very constant improvement of our management system. important to us to offer above-average working conditions, which we enhance with additional voluntary social benefits. This includes aspects such as adequate remuneration, fair GRI 401-1: New employee hires and employee turnover employment contracts and work/family reconciliation. We see this as the foundation of trusting collaboration. During this decade, we have enjoyed steady growth, which is reflected in the steady increase in the number of our employees. Policy and organisation In addition to apprentices, we have taken on a continuously Our general strategy is derived from the PPx principles adopted growing number of new staff members in recent years. At the in 2017. On the basis of this, we have developed an internal end of 2018, we registered 2,275 employees in Lohne and strategy with goals and measures that are constantly reviewed Holdorf. Since we also employ temporary workers throughout and adjusted. the year for seasonal and limited periods, information on employee recruitment can be misleading. An important pillar of our strategy is long-term planning security. A total of 81 % of our employees in the three plants Employee turnover is almost exclusively attributed to moves to have permanent contracts. We cooperate with local companies other employers. During the reporting years, a two-digit number for assembly work and use seasonal temporary workers to of such cases was recorded. As proportions of the total number respond to order peaks. A condition of such collaboration is of employees for the reporting years, the values are 0.5 % (2017) contractual assurance that all legal requirements, such as the and 0.6 % (2018). We see this as proof of our attractiveness as an minimum wage, are met. This enables us to avoid having to rely employer and confirmation of our HR policy. on contract workers and leased labourers. New recruits The working hours of employees are recorded in working time accounts and can be flexibly structured within the framework of 2017 2018 legal regulations. Striking the right balance between work and family has always been of huge important to us. total 357 485

Communication and employee involvement of which male 246 326

Members of our works council actively help to shape the of which female 111 159 framework conditions for our work and act as committed under 30 years of age 294 366 negotiating partners for management. Twice per year, management is required to report at a meeting convened by the 30 to 49 years 55 109 works council. 50 years and older 8 10

GRI INDEX 99 GRI 400 SOCIAL STANDARDS

Employee turnover 5. Nutrition: subsidies for company catering; home-made salads and muesli

2017 2018 6. Additional financial benefits: 100 % Christmas pay and 75 % holiday pay; bonus and special payments for various occasions total 208 287 of which male 132 181 GRI 401-3: Paternal leave of which female 76 106 All of our employees are entitled to parental leave as far as is under 30 years of age 173 230 regulated by law. In 2018, 118 employees took parental leave, of 30 to 49 years 14 27 which 83 were male and 35 were female. We are delighted to see more and more colleagues making use of this benefit. 50 years and older 21 30 Employees on parental leave

2017 2018 GRI 401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees total 100 118 We are a family-run company and want to treat our employees of which male 71 83 as part of our family. In addition to adequate remuneration of which female 29 35 and statutory benefits, employees are given Pöppelmann

Benefits, which can be divided into seven categories. Since this No detailed information concerning employee return after has grown into an extremely wide-reaching list, we have only parental leave is available at present. We will collect such data detailed a few selected examples here. First of all, it is important in the future and include it in the next sustainability report. to highlight that all of our staff are entitled to most additional

benefits. We do not make a distinction between full-time and part-time workers or temporary and permanent employees, with the only exception being the BusinessBike offer.

1. Work and cohesion: events and celebrations for employees and pensioners; gifts and commemorative tokens for a range of occasions

2. Family, leisure and age: working time accounts; assumption of daycare fees and holiday care; extraordinary leave for special family occasions

3. Further training and development: assumption of costs for further training fees, PP Academy: wide prospectus of further training opportunities; learning workshop for our apprentices

4. Health and sport: company fitness programme with Hansefit and qualitrain; large range of preventative health courses; free natural remedies from the in-house PP pharmacy if needed; BusinessBike (only for permanent employees)

100 GRI INDEX GRI 400 SOCIAL STANDARDS

GRI 402 GRI 403 Labour/Management Relations 2016 Occupational Health and Safety 2016

GRI 402-1: Minimum notice periods regarding operational GRI 103-1/2/3: Management approach – corporate health changes management

There are mutually agreed company arrangements between The mental and physical health of our staff is of paramount the employee representative body and the employer that also importance to us. By offering preventative services to maintain address this topic. Changes and renewals to these company our employees’ ability to work, we assume social responsibility agreements are made in close collaboration. As a family-run with the aim of reducing sick leave and increasing job company, every individual is important to us. For this reason, we satisfaction. Our employee benefits include a wide range of have taken unconventional paths and will continue to do so in provisions that have a positive effect on the health of our staff. the future. Policy and organisation At the height of the financial crisis in 2009, for instance, the The issue of health is assuming ever-increasing significance executive board and works council reached an agreement in considerations regarding our HR strategy. On the one hand, to extend valid working time accounts at Pöppelmann. After this is due to the rise in illness-related absences – a trend that overtime and the generally permitted time owed of 160 hours can be observed throughout Germany. On the other hand, per person were exhausted, an additional 200,000 hours of time changes in working conditions such as increased workloads owed was distributed amongst the entire workforce in order to and increasing time pressure lead to new forms of stress for our avoid redundancies. employees. We have not agreed any notice periods with the works council Our occupational health management system consists of the regarding terminations and closures. The current employment three pillars occupational safety, occupational healthcare and agreement includes an agreement on short-term work. With occupational integration management. Although we do not this, we aim to prevent redundancies during unfavourable have a classic company health management system, we are business climates. planning to expand and merge ongoing activities and measures. All existing employment agreements specify a period of notice. Communication and employee involvement The statutory provisions apply to all other topics. The works council Occupational Health & Safety Committee meets regularly and is involved in all considerations on how to improve employee health protection. Results and innovations are communicated both by the human resources department and the works council via notices and the company’s Intranet.

Results and outlook

In order to create a basis for this, we carried out an analysis of the current state. This shows a continuous rise in the illness rate despite a steadily decreasing accident rate. In order to react to this development, we have already implemented healthcare measures. This package of measures includes aspects of exercise, nutrition, medical care and mental health. During the reporting period, we also re-structured our company integration management. The goal is to overcome incapacity to work

GRI INDEX 101 GRI 400 SOCIAL STANDARDS

whilst preventing any new absences and enabling individual group of participants. Alongside the executive board, the works employees to keep their jobs. council, company doctor and safety specialists, safety officers and managers from all sites also take part. The committee Overall, we have set ourselves the goal of meaningfully linking members are contact persons for our employees with questions and expanding our measures in the area of workplace health and suggestions concerning occupational health, safety and promotion and firmly anchoring the topic in the organisation. environmental protection. Minutes are recorded along with a completion check.

GRI 103-1/2/3: Management approach – occupational safety Other committees are the works council Occupational Health and Safety Committee (8 people), the Kitchen Committee We operate an integrated management system for the areas (7 people) and the Occupational Integration Management of the environment, energy and occupation safety: GRI 103- Committee (4 people). 1/2/3: Management approach – environment, energy, occupational safety on page 89.

GRI 403-2: Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work- GRI 403-1: Workers representation in formal joint related fatalities management-worker health and safety committees As part of our occupational health and safety management In order to represent our entire workforce in the area of system, we record key figures on accidents and illness rates. We occupational safety, we have formed the Environment, Health analyse near-accidents, critical situations, work-related illnesses and Safety Committee. This is made up of 33 members and and accidents at work. The knowledge gained is incorporated regularly discusses, develops and implements measures for the into our risk assessments to enable the implementation of improvement of occupational safety. Every quarter, it provides preventative, protective measures that sustainably improve the advice on prevention, risk reduction, corrective measures and rates. workflow improvements. The executive board determines the

Overview of accidents at work

2011 2012 2013 2014 2015 2016 2017 2018

Accidents 47 41 43 42 39 54 36 39

Accident rate* 29 24 24 22 19 26 17 16,5

Days of absence 422 359 440 469 395 534 399 420

Full-time employees 1,641 1,715 1,833 1,949 2,045 2,080 2,080 2,366

Costs 128,288 € 102,755 € 133,760 € 187,600 € 161,600 € 213,600 € 159,600 € 191,600 €

*[Work accidents per 1,000 full-time employees] *[Work accidents per 1,000 full-time employees]

102 GRI INDEX GRI 400 SOCIAL STANDARDS

In 2017 and 2018, the accident rate was 17 accidents at work GRI 404 per 1,000 full-time employees. In 2017, a total of 36 accidents Training and Education 2016 were recorded and 399 days of absence across our four plants. In 2018, there were 39 accidents and 420 days of absence. The most common accidents for both 2017 and 2018 were hand GRI 103-1/2/3: Management approach – education injuries and cuts. Education is a core concern at Pöppelmann. Through training, Our illness rate (proportion of illness-related absences in we secure our specialists and managers of tomorrow. Further target working hours) was 4.6 % for 2018, which corresponds training opens up development opportunities and motivates to an average illness duration of 12 working days. Assuming people by imparting new knowledge and skills. Since the year-round employment, target working time attainment and expertise and competence of our staff form the foundations of deduction of a six-week holiday period, the absence rate for our success, we want to use our education and further training 2018 was 20 %. policy to promote and enable qualifications for everyone. Currently, we do not have any more detailed information. In the Policy and organisation future, we will record such data to enable full disclosure in the next sustainability report in accordance with the new GRI 403-8 Training has always been extremely important to us. Every requirements (as of 2018). year, we train approx. 70 % of our apprentices in technical professions, 15 % in commercial occupations and a further 15 % as part of dual study courses. On 1 August 2019, we welcomed GRI 403-4: Health and safety topics covered in formal our 1,500th apprentice. Especially in view of the increasing agreements with trade unions shortage of specialist workers, we want to cover our personnel requirements with our own trainees. Around one third of our Most Pöppelmann employees are non-union. We are not a current staff completed an apprenticeship at Pöppelmann. member of any employers’ associations. The works council and human resources department collaborate on joint agreements, From their very first day with us, we emphasise just how which are then presented to the executive board. In the event important our apprentices and their work are to us. During of specific questions, the works council consults the relevant the reporting period, there was a total of 160 young people trade union, although this is a rare occurrence in our everyday learning their profession with us across all years. Their time at business. Pöppelmann starts with an introductory week, during which they are prepared for all aspects of work within the company. They learn about our PPx corporate policy and are informed of key rules, such as occupational safety requirements, find out about their apprenticeship timetable and visit all three

Pöppelmann plants in Lohne. The week finishes with a two-day team-building event including an overnight stay. We also place great importance on the inclusion of our apprentices’ families. Parents of our new apprentices are invited to get to know our company and the trainers before the apprenticeships begin.

GRI INDEX 103 GRI 400 SOCIAL STANDARDS

Part of the apprenticeship also involves various projects which, GRI 404-1: Average hours of training per year under the partial guidance of their trainers, are implemented per employee by the apprenticeships themselves, such as the Plasticmobile We employed 50 of the 62 apprentices who passed their exams initiative, company representation at training fairs and the in 2018. Most of the apprentices who left our company opted to annual Taster Days for school pupils. A highly qualified team continue their studies at college or university. We offered some of trainers, above-average remuneration and a committed of them the option to continue as student employees to enable youth and apprentice representative council round off the them to work with us during semester holidays. This enables us comprehensive package. For ten years, we have been offering to stay in touch. graduates the opportunity to work as a trainee in various areas and processes. Our 24-month trainee programme has been So far, we have only recorded the number of participants for offered in its current form since 2018. It was developed for training courses. In 2018, 7,877 participants registered for technical and commercial graduates. Our eight current trainees internal and external training courses. The corresponds to an are supported by a mentor and take part in a development average of 3.5 events per employee during 2018. The average programme. The aim of this is to offer them the best possible number of hours of further training per year, per employee and preparation for a position of responsibility in our company. a breakdown by gender or employee category will be included in the next sustainability report. All measures in the area of further training are derived from our PPx principles. We want our employees to develop further in accordance with their own strengths. Our PP Academy offers a GRI 404-2: Programs for upgrading employee skills and wide range of events to all staff members. Some of the options transition assistance programs are organised by target group or topic. With this, we want to enable colleagues to find courses that meet their needs. Since 2010, we have been committed to enabling all employees The PP Academy covers the development of personal, social, to develop professionally. For this, we have launched methodological and professional skills. Subjects not covered by programmes such as IT training, skills development, business the PP Academy can be chosen with external providers. training, first aid courses, health training, technical training and language courses. The seminars are given by internal or external Communication and employee involvement speakers. Alongside these offers, our employees also have the A separate specialist committee run by the works council opportunity to apply for cost sharing for further vocational represents the interests of employees in all matters concerning training. In this context, Pöppelmann assumes up to 50 % of the education and further training. The Education and Further costs incurred. Training Committee consists of four members of the works Overall, we significantly increased our investments in council and a representative of the youth and apprentice educational offers during the reporting period. The courses are council (JAV). attended by employees based on their individual requirements. Results and outlook The effectiveness of measures is assessed both by the employee and the respective manager by means of an evaluation form, In order to give employees a better overview of courses and to which is first completed by the employee and then the manager. enable them to find a suitable option to match their needs, we are currently developing an in-house digital training portal. The total number of training courses also includes obligatory instruction sessions. In the future, this information is to be recorded and specified separately.

104 GRI INDEX GRI 400 SOCIAL STANDARDS

Overview of employee development measures GRI 405

Training courses 2017 Participation 2017 Training courses 2018 Participation 2018 Diversity and Equal Opportunity 2016

Pöppelmann Academy 79 618 57 367 measures

Measures outside of 656 5,707 712 7,520 Pöppelmann Academy GRI 405-1: Diversity of governance bodies and employees Total 733 6,325 769 7,887 We are a young company. Every second Pöppelwoman and In order to facilitate the transition to retirement, all employees Pöppelman are between the age of 30 and 50 and every third are given the option of taking partial retirement. employee is under 30 years old. As a production company, it is hardly surprising that most of our employees are male. Nevertheless, we continuously strive to increase the proportion GRI 404-3: Percentage of employees receiving regular of female workers. In 2018, women made up one fifth of the performance and career development reviews workforce at our German sites. The proportion of female colleagues is much higher among younger employees. The current basis for the realistic assessment of strengths is an employee meeting with the respective manager. The concept of Employee structure this discussion was extended in 2018 in accordance with our PPx principles to include clearly structured and defined dialogue on 2017 2018 strengths. From 2019, these employee-manager meetings are held once a year. Employees (total)* 2,065 2,275

The protocol created as part of the strengths dialogue is only of which male 1,651 1,801 available to the employee and the manager and, for reasons of of which female 414 474 confidentiality, cannot be used as evidence that the strengths Permanent 1,770 1,842 dialogue took place. We are currently looking at how we can systematically record and evaluate the implementation of the of which male 1,452 1,498 strengths dialogue in the future. We will provide an update on of which female 318 344 this in the next sustainability report. Temporary 295 433

of which male 199 303 of which female 96 130

Full-time 1,904 2,095

of which male 1,635 1,777 of which female 269 318

Part-time 161 180

of which male 16 24 of which female 145 156

Agency workers 0 0

GRI INDEX 105 GRI 400 SOCIAL STANDARDS

Employee structure GRI 406

2017 2018 Non-discrimination 2016

Employees (total)* 2,065 2,275

of which male 1,651 1,801 GRI 406-1: Incidents of discrimination and corrective actions taken of which female 414 474 We have a zero tolerance policy concerning discrimination. For Under 30 years of age 690 779 reasons of confidentiality, we have not established an official of which male 560 612 complaints office apart from the works council. With the help of of which female 130 167 an external provider, we have set up a hotline for all employees. They can use the hotline for various professional or personal 30 to 49 years 953 1063 issues, such as bullying or discrimination. To date, no incidents of which male 778 874 of discrimination have been registered and we have not had to of which female 175 189 take any remedial action.

50 years and older 422 433 of which male 313 315

of which female 109 118 GRI 407

*Employees subject to social security contributions in Germany Freedom of Association and Collective (basis: December payroll) Bargaining 2016

Our control body, the advisory board, is made up of one female and four male members (see GRI 102-18). We cannot publish GRI 407-1: Operations and suppliers in which the right any information regarding the assignment of advisory board to freedom of association and collective bargaining may members to other diversity categories since this would enable be at risk connections to be made to personal data. We carry out a risk assessment of suppliers as required. We focus primarily on business variables such as liquidity, number of machines and systems and employees. For important aspects such as freedom of association and collection bargaining, we expressly refer to our code of conduct.

Since most of our suppliers are located in Europe, we also rely on the compliance of our partners with the regulatory requirements of their respective country. We operate a zero tolerance policy in this respect. We will stop working with any supplier who is suspected of violating such legal and international standards. We are not aware of any such cases to date.

106 GRI INDEX GRI 400 SOCIAL STANDARDS

GRI 408 GRI 412 Child Labour 2016 Human Rights Assessment 2016

GRI 408-1: Operations and suppliers at significant risk for GRI 412-1: Operations that have been subject to human incidents of child labour rights reviews or impact assessments

We carry out a risk assessment of suppliers as required. We focus We comply with the applicable regulations in our plants. In primarily on business variables such as liquidity, number of addition to internal monitoring, this is also checked in the machines and systems and employees. For important aspects annual audits for EMEA and DIN ISO 45001 recertification. such as child labour, we expressly refer to our code of conduct. We carry out a risk assessment of suppliers as required. We Since most of our suppliers are located in Europe, we also rely on focus primarily on business variables such as liquidity, number the compliance of our partners with the regulatory requirements of machines and systems and employees. For important aspects of their respective country. We operate a zero tolerance policy such as compliance with human rights, we expressly refer to our in this respect. We will stop working with any supplier who is code of conduct. suspected of violating such legal and international standards. We Since most of our suppliers are located in Europe, we also are not aware of any such cases to date. rely on the compliance of our partners with the regulatory requirements of their respective country. We operate a zero tolerance policy in this respect. We will stop working with any supplier who is suspected of violating such legal and GRI 409 international standards. We are not aware of any such cases Forced or Compulsory Labour 2016 to date. We plan to conduct a human rights assessment next year.

GRI 409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labour GRI 412-2: Employee training on human rights policies or procedures We carry out a risk assessment of suppliers as required. We focus primarily on business variables such as liquidity, number The subject of human rights will become part of the planned of machines and systems and employees. For important aspects training concept on compliance. This is intended to inform such as forced or compulsory labour, we expressly refer to our our employees about human rights due diligence. Since these code of conduct. training courses did not take place in the reporting period, we can only specify how many employees took part in these Since most of our suppliers are located in Europe, we also training courses in the next sustainability report. rely on the compliance of our partners with the regulatory requirements of their respective country. We operate a zero tolerance policy in this respect. We will stop working with any supplier who is suspected of violating such legal and international standards. We are not aware of any such cases to date.

GRI INDEX 107 GRI 400 SOCIAL STANDARDS

GRI 414 GRI 418 Supplier Social Assessment 2016 Customer Privacy 2016

GRI 414-1: New suppliers that were screened using GRI 418-1: Substantiated complaints concerning breaches social criteria of customer privacy and losses of customer data

We have two certified quality officers and internal auditors As of the time of reporting, we have not registered any breach of (1st party) in strategic purchasing who regularly accompany privacy or loss of customer data. our certified supplier auditors (2nd party) from quality management to visit our suppliers to check that our standards and requirements are being met. However, we assess the existence of a certified environmental management system as GRI 419 part of the supplier evaluation. Those who cannot prove the existence of a corresponding system will receive a lower rating. Socioeconomic Compliance 2016 For new suppliers, compliance with standards should generally be assessed based on existing certification. In individual cases, for instance if certification is not available, on-site audits will GRI 419-1: Non-compliance with laws and regulations in the be carried out. We do not currently record any data that can social and economic area be used to assess how high the actual proportion of evaluated As of the time of reporting, we have not registered any cases new suppliers is. We aim to make a specific statement on this of non-compliance with laws and regulations in the social and in the next sustainability report. We also asked our TOP 20 economic area. suppliers for purchased parts to complete a CSR questionnaire (environment, safety, compliance).

108 GRI INDEX Imprint

Pöppelmann GmbH & Co. KG Pöppelmann Kunststoff-Technik Kunststoffwerk – Werkzeugbau GmbH & Co. KG

Postfach: 11 60 – 49378 Lohne Postfach: 11 60 – 49378 Lohne Address: Bakumer Str. 73 – 49393 Lohne Address: Hermann-Staudinger-Straße 1 – 49393 Lohne

Phone: +49 4442 982-0 Phone: +49 4442 982-620 Fax: +49 4442 982-112 Fax: +49 4442 982-668

E-Mail: [email protected] E-Mail: [email protected] Internet: www.poeppelmann.com Internet: www.poeppelmann.com

VAT identification number: DE 117774215 VAT identification number: DE 150621071 Commercial Register: Oldenburg HRA 110387 Commercial Register: Oldenburg HRA 110618 Active Partner: Pöppelmann & Co. GmbH Active Partner: Pöppelmann Kunststoff-Technik ­ Commercial Register: Oldenburg HRB 110021 Beteiligungs-GmbH Corporate headquater: Lohne Commercial Register: Oldenburg HRB 111249 Managing Directors: Norbert Nobbe, Corporate headquater: Lohne Matthias Lesch, Henk Gövert Managing Directors: Norbert Nobbe, Matthias Lesch, Henk Gövert

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IMPRINT 109 Together.

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