CSR-REPORT Corporate Social Responsibility Melecs EWS GmbH Financial Year 2019 01
CONTENTS 7 Quality Awareness 15
Foreword 2 Quality mindset 2019 15 Bernhard Pulferer 8 Social Commitment 16 1 What does sustainability mean 3 Christmas donation 2019 16 Donation to Caritas Burgenland 2019 16 2 The Company 4 Business Run 2019 16 Melecs award Wuxi 17 Team building & 10 years of Melecs 3 Our Philosophy 5 in electronics factory Wuxi 17 CCC-teammeeting 2019 & teamactivity 18 Annual party 2019 in Wuxi 18 4 Management & Employees 6 Supported health campaigns 19 CSR - Code of conduct 6 Health day 2019 in Siegendorf 19 ASKÖ workshops 2019 19
Donations in Györ 20 5 Employee Development 7 Familyday in Györ 20 Health program in Györ 20 Onboarding/Welcome event 7 Promotional discussion 7 Job rotation soft 7 9 Cooperation with training Annual appraisal interview 8 „Release your Potential“ 8 facilities & institutions 21 Leadership development program 9 Employee Survey 4.0 9 Participation in several company fairs 21 Internal sharing program in Wuxi 10 Career Guide Events in Györ 21 Star program in Wuxi 10 Apprenticeship training Trainings & career program in Györ 11 in Siegendorf & Lenzing 22 Dual education program in Györ 22
6 Awards 12 10 Suppliers 23 Innovation award Burgenland 2019 12 Silver at the Export award 2019 12 Melecs supplier manual 23 Melecs anniversary celebration 13 Award “The most potential employer 2019” for electronics factory Wuxi 14 11 Quality & Environment 24
Code of conduct 24
12 Environment / Sustainability 25
Product life cycle management 26 Our environmental goals 27 Measures from the environmental progam 28-32
13 Key Performance Indicators 33 02
Foreword
Corporate responsibility means much more to us than just ensuring profitability in the long term. The Melecs group is committed to a number of “stakeholders”.
For one, we use our knowledge to ensure that the pro- ducts we develop and deliver match the requirements of our customers. Our products enable us to make a positive contributi- on towards saving resources – be it water or electrical energy – in the field of domestic appliances. Our products are used in cars and ensure optimum visi- bility, greater safety on the road and reduced emission of pollutants. Furthermore, our industrial products also make a positive contribution to the environment, for example by controlling alternative heating systems or saving the energy obtained through solar technology.
Our employees are our most valuable potential of all. We want to provide them with a motivating working environment and personal opportunities to develop. We are very happy to give our employees opportunities to show their place of work to their families. An ethically sound code of conduct is impor- tant to us when choosing our business part- ners – in terms of both customers and suppliers. And it goes without saying that we also fulfil our legal obligations.
Together with our employees, we regularly support lo- cal social projects to help those who are faced with more challenges in life. As part of our environmental programmes, we are continually examining our value added chain for opportunities to be more resource- efficient.
Melecs stands for “Making Electronics Smart” as well as for “Making Electronics Sustainable”.On be- half of the management, I would like to thank all our employees for your valuable contribution towards developing our company and living up to our social responsibility.
Bernhard Pulferer CEO Melecs EWS 03
1 WHAT DOES SUSTAINABILITY MEAN
Using natural resources in such a way that the generations to come are also still able to use them. 04
2 THE COMPANY
Melecs has many years of experience as a reliable development and production partner to indus- try. As a specialist for electronics in the areas of automotive, automotive lighting & sensors, white goods and industry, Melecs offers its customers everything from a single source: from enginee- ring, to project management and industrialisation, all the way to production and logistics.
Ownership structure In 2011, Melecs expanded and ope- Electronic components by Melecs ned a further electronics plant inclu- can be found in control units and Melecs has its roots in Siemens AG ding a test and validation centre in LED applications in cars made by in- Austria, based on a management Györ, Hungary. Additionally, a pro- ternational premium manufacturers buyout by the three shareholders duction location was established in as well as in household appliances Friedrich Pressl, Ernst Mayrhofer and Wuxi, China, in 2016 to provide sup- (washing machines etc.) of the Euro- Bernhard Pulferer in 2009. port to global customers. 2018 was pean market leader. Apart from cus- the year of Melecs’ entry into the tomised products and solutions in North American market with the ope- the fi elds of automotive, automotive ning of a dedicated sales and deve- lighting & sensors and white goods, lopment offi ce in Auburn Hills, Michi- Melecs also develops and produces gan. electronic modules and integral solu- tions including unit assembly for the Another milestone was set in ear- fi eld of industrial electronics, such ly 2019: Melecs EWS GmbH beca- as controls for escalators or energy- me a 70 % majority shareholder of effi cient heating systems. Prettl Electronics Querétaro, S.A. de C.V. in Mexico and took over the The highly automated manufacturing entrepreneurial leadership of the processes at the electronics plants electronics company. in Siegendorf, Austria and Györ, Hungary produce electronic mo- Alongside the company headquar- Core competences dules and devices in medium and ters and the production location in large batch sizes. For low-volume, the town of Siegendorf in Burgen- Melecs electronics factory Siegen- high-mix requirements, Melecs has land, Melecs EWS has two further dorf (EWS) has a turnover of over a competence centre for industrial sites in Austria: a development and 287 million euros and more than appliances in the form of its plant in production location in Lenzing/Up- 1500 employees, making it the lar- Lenzing, Austria. A separate test lab per Austria, which specialises in the gest electronics engineering and at the Györ, Hungary, location ena- fi eld of industrial applications, as well manufacturing service (E2MS) provi- bles Melecs to carry out the rapid, as the Vienna location, where the der with Austrian roots, with over 25 reliable inspection of products in the entire Research & Development de- years of experience. areas of product development, pro- partment of the remaining business duct validation and mass production. units is based. 05
3 OUR PHILOSOPHY Vision & Mission
Profi table growth through innovation, productivity, sustainability and conscientious employees
Our customers integrate us into their strategy as a reliable partner.
We offer innovative solutions in clearly defi ned fi elds.
We continuously expand our competences throughout the value chain.
We trust in the potential of our staff and create the necessary framework conditions for independent, result-orientated action.
We secure our economic success and growth by embodying our quality policy and strategic cooperation.
We stand by our locations in Europe, rise to the challenges posed by globalisation and follow our internationally active customers in their core markets.
We fulfi l our legal obligation to society by means of our active, sustainable environmental management system.
We generate sustainably positive results with our services. 06
4 MANAGEMENT & EMPLOYEES CSR - Code of conduct The fundamental requirement for the company’s success is the dedication and willingness of every single employee to contribute to the fulfilment of the framework conditions and the implementation of the corporate goals in order to achieve the desired results. An independent work ethic in the context of the respective task and a focus on fulfilling the overall interests are what form the basis of our collective success.
Our understanding of leadership is consistent with the following values:
We see leadership as playing a key role in achieving our business results and increasing competitiveness.
We lead by conviction, rely on commitment and abide by the agreements we have made.
We challenge our employees by establishing clear framework and result guidelines, and we regularly check their contribution to achieving results.
We reward the performance of employees on the basis of transparent criteria and provide fair compensation.
We push and encourage the development of all employees regardless of their gender, age, religion, nationality and social standing. 07
5 EMPLOYEE DEVELOPMENT
Melecs offers numerous employee development programs, various staff training courses, as well as a talent and junior leadership programs.
Onboarding
Welcome event at Melecs
New employees are welcomed to the company as part of the regular Melecs Onboarding event.
The aim of the event is to provide the employees with a practical introduc- tion to our company, allowing them to become integrated into the Melecs team quickly and enabling them face all the new challenges in the work- Promotional discussion place with confidence. A brief intro- duction of the new employees is fol- In line with company policy, Melecs lowed by a company presentation by is committed to the consistent deve- our management, as well as further lopment of our staff. The objective insight into company-related topics. is to ensure that we can continue to The event ends with a tour of Siegen- sustainably cover the key roles in the dorf plant for all the new employees. company well into the future with ide- ally suited employees. The central Job rotation soft emphasis of the promotional discus- sions is therefore on the long-term The “soft job rotation” contributes development of important employee to promoting the culture of innova- competences. The best way to en- tion within the Melecs Group. The sure this is with a diversified, com- success of a company depends on prehensive programme of initial and the smooth interaction between de- ongoing training that systematically partments and the active members pushes employees to excel. of the company. Here, the actions of an individual have an effect on colle- agues and thus a significant impact. The “soft job rotation” provides em- ployees within or outside of a depart- ment/group with the opportunity to increase their level of knowledge by learning on the job and to conscious- ly support the transfer of information. 08
5 EMPLOYEE DEVELOPMENT
Here at Melecs, leadership and cooperation are fundamentally characterised by the conversations that take place between management and employees. The most important employee management tool, apart from the monthly results meeting, is the annual appraisal.
Annual appraisal Beyond this, the annual appraisal „Release your Potential“ interview also aims at rewarding the achieve- ments attained by the employee, to This programme stands for move- work on competences with regard ment, development and strengthe- The annual appraisal serves to cla- to strengths and potential for impro- ning of one’s own potential – in both rify and review mutual expectations, vement, ascertain and discuss whe- thoughts and actions. The principle improve the relationship between re there is a need for development “Release your Potential” defines the superiors and employees, promo- and training, and determine the le- entire development programme: on te openness and mutual understan- vel of employee satisfaction. In addi- the one hand, the use of various trai- ding, and make cooperation easier. tion, participation in a soft job rotati- ning methods is designed to promo- on programme can also be defined. te and encourage one’s own deve- It is carried out once a year and is lopment, and on the other, to expand designed to help reflect upon the re- Discussing the personal working the range of actions. spective framework/KPIs and, if ne- and professional situation as well as cessary, adapt them. The aim is for the degree of satisfaction is of par- After completing this approximate- the employee to obtain clarity about ticular significance for the orientati- ly 1-year program, the participa- what is required of him, what respon- on and dedication of the employee in ting employees receive a certificate sibilities and freedom of decision- his work, his identification with major of completion, which confirms suc- making he has, and the results by goals and the company. cessful participation in the program. which he is evaluated.
Leadership development progam
Those employees who already hold a management position have the op- portunity to take part in the leader- ship development programme. This modular training course serves to support the managers in their perso- nal development and to strengthen the management team in the pursuit of team-building activities. The target group for this programme consists of existing managers who have been nominated in the promotional discus- sion and, in future, new placements from the talent programme. 09
5 EMPLOYEE DEVELOPMENT
Regular employee surveys reveal important areas for necessary measures that can improve the working atmosphere and motivate employees.
Employee survey 4.0 „Voices of Melecs 2019“
Every two years, Melecs carries out Overall, the results from the em- The results are now being processed an employee survey. The last sur- ployee survey show a very positi- so as to be made visible, with ma- vey took place in October 2019. We ve evaluation of the entire compa- nagement and HR fully supporting use the employee survey as a tool ny. 91 % of employees said that this process. Key, cross-sectional to get a sense of the current mood they are motivated to do their best and focus topics have been defined, among our employees and to int- at work and, in turn, 81 % agreed and are now being worked out in a roduce measures to increase em- with the statement “all in all, this is structured manner on a number of le- ployee motivation and satisfaction. a very good place to work”. Our em- vels together with our employees. ployees are very proud of and loyal In autumn 2019, the time had come to the company, and view our high once again and an Austria-wide em- customer focus and flexible working ployee survey was carried out in hours in a particularly positive light. collaboration with the external con- sultancy vieconsult. All our emplo- Despite this generally positive senti- yees had the chance to complete ment, a number of fields of develop- the online survey anonymously and ment were identified, with the focus provide us with honest requests, being on the development of measu- praise, criticism and suggestions. res by the company relating to dis- A remarkable 83 % of all em- tractions and interruptions, informati- ployees took this opportunity on and knowledge sharing between and participated in the survey. interfaces and professional develop- ment opportunities. Part of the employee survey inclu- ded the evaluation of mental stress in the workplace, as legally required in accordance with the Austrian Wor- kers’ Protection Act (ASchG). This evaluation aims to identify stress fac- tors in the workplace so that we can then reduce or avoid these by imple- menting suitable measures. 10
5 EMPLOYEE DEVELOPMENT
Melecs EWW also offers its employees employee development programs, such as the EWW internal sharing program and the EWW star program.
Internal sharing program in Wuxi
The offi cial EWW internal sharing program was introduced to provi- de a platform for EWW employees to share what they are best for. Sha- rers participate actively, get well pre- pared and cherish the opportunity of sharing for improving presentati- on skills as well as enhancing know- ledge obtained. Learners participate and interact with sharers to enlarge knowledge scope and put their new knowledge into practice.
This program improves employees’ overall skills and also contributes be- nefi ts for others, as well as promotes internal sharing culture within the or- ganization. It plays a big role in EWW to boost knowledge spreading in the organization.
Star program in Wuxi
To promote high performance orien- high performance orientation as well tation and intensify employee deve- as to enhance the role module. It is lopment, EWW launched quarterly also a way of promoting value, cul- Melecs star program in 2019, which ture and competency within the or- is given to individuals to recognize ganization. outstanding contribution and signifi - cant achievements to increase indi- viduals’ enthusiasm, dedication and 11
5 EMPLOYEE DEVELOPMENT
Melecs EWG also offers its employees numerous employee programs to develop skills.
Trainings & career program in Györ
The EWG training program is conti- nuously implemented throughout the year. A leadership developing trai- ning was organized for senior leaders with the title „the solution is in you”.
A motivational presentation to the senior colleagues of EWG were gi- ven by Gábor Rakonczay, who is two-time Guinness World Record Holder and six-time ocean cros- sing Hungarian sailor. Gábor’s per- spective on the goals helps not on- ly in private life but also at work.
In the SMT area, a mentoring pro- gram was implemented - in additi- on to the basic training program with trainers - to support the onboarding of newcomers. The machine opera- tors and experts help and teach ru- les, techniques, informal knowledge and other useful information to the new colleagues. 12
6 AWARDS
Melecs EWS was awarded numerous prizes and awards in 2019.
Burgenland Innovation Award 2019
On 6 November 2019, the most in- novative companies in Burgenland were honoured in the Eisenstadt cul- tural centre, with a jury selecting Me- lecs as the winner of the Burgenland Innovation Award in the category “Large Companies”.
Melecs received the award for its new generation transmission con- trol unit, in which a heat-conducting potting compound increases the sur- face area of electronic components, thus allowing for optimal thermal dis- sipation and more installation space in the car. In addition to winning the Fabrik 2018 Award, coming second in the WKO Exportpreis, and recei- ving the Entrepreneur Of The Year Award, this is Melecs’ fourth presti- gious award in a year.
Silver at the 2019 Export Award
Melecs won silver in the Industry ca- tegory at this year’s Export Award.
At the award ceremony, the Cham- ber of Commerce once again re- cognized the above-average com- mitment and success of Austrian entrepreneurs abroad and awarded companies whose international com- mitment made them indispensable for growth, prosperity and employ- ment in Austria. The approximate- ly 270 submissions for the Export Award 2019 were judged by an inde- pendent expert jury on the basis of export performance in recent years. 13
6 AWARDS
Melecs celebrated its 10th company anniversary in 2019.
Anniversary celebration „10 years of Melecs“
Melecs and about 400 guests celeb- Over the last 10 years, Melecs has rated its ten year anniversary on 9th grown from a local company to a glo- May 2019 in the town of Siegendorf. bal player with approx. 1500 emplo- As part of the celebrations, the 3 yees worldwide. shareholders Friedrich Pressl, Bern- hard Pulferer and Ernst Mayrhofer were awarded the second-highest honour in the state of Burgenland in the form of the “Komturkreuz” along with the “Ehrenring” of the market town of Siegendorf. The honour was given for the positive development of the company following difficult con- ditions during its start-up in 2009. Regional minister Astrid Eisenkopf and the mayor of Siegendorf Rainer Porics expressed their gratitude for the courage shown in continuing to expand and successfully manage the Austrian sites even during dif- ficult times. 14
6 AWARDS
Melecs EWW was awarded as „The Most Potential Employer 2019“.
Award “The most potential employer 2019” for electronics factory Wuxi
On the afternoon of December 27th 2019, Wuxi Employer Branding Show Award ceremony was held in Wu- xi Kailai Hotel. In total more than 200 enterprises participated, over 250,000 people voted online and there were above one million views of the related enterprise recruit- ment videos. As a rising star in Wuxi, MELECS Electronics Manufacturing (Wuxi) Co., Ltd. also joined this hot competition. General Manager, Mr. Andreas Kube was interviewed onsi- te and Xinhua Daily, Wuxi Daily, Wu- xi News channel and other media re- ported this grand event.
After intense competition and strict selection, Melecs Wuxi got the award for “The Most Potential Employer”. The criteria for the selection includes company scale, business perfor- mance, satisfaction survey, awards, tax & fi nancial data, and strategic planning, etc. 15
7 QUALITY AWARENESS
Quality is one of the most important issues in the company, which is why also this year we’re making it a focal topic.
Quality mindset 2019
In our industry, it is essential to em- The 12 Quality Mindset princip- body quality every single day. This is les are a foundation for our daily why we ran the Quality Mindset Pro- work! Every month, we highlight one gramme once again in the 2019 fi - principle. Practical examples and nancial year. success stories illustrate the practi- cal application of the principle. Quality Mindset is an ongoing pro- cess. This includes coordination bet- ween internal customers and sup- pliers. This is an important task for all team and department heads. On- ly by observing these standards can we sustainably improve our coopera- tion.
In 2019, we focused particular- ly on Principle 8 “Continuous im- provement with elimination of the causes of errors”. This was ac- companied by a training programme including support for practical imple- mentation.
2019 in focus: principle 8 Continuous improvement including root cause elimination 16
8 SOCIAL COMMITMENT
Melecs gets involved where employees live and work, and supports initiatives in the regions surrounding the locations with donations and sponsoring.
Christmas donation 2019
Also this year, the annual punch stand was set up for a good cause in front of the Siegendorf plant and equipped with all sorts of delicious punch and snack variations.
As in previous years, numerous em- ployees, relatives and friends of Melecs were there and donated diligently to a good cause. A sensati- onal donation amount of 1,600 euros was collected. The donation went to Donation to Caritas Ronja from Hornstein and was used Burgenland 2019 to buy a voice-controlled computer.
Like every year, we once again do- Business Run 2019 nated the budget reserved for Christ- mas gifts to a social project. This ye- ar, 5,000 euros were donated to As every year, numerous Melecs Caritas Burgenland. employees who were enthusiastic about running started for Melecs at Caritas Burgenland runs learning ca- the Wien Energie Business Run in fes where children from socially dis- 2019. advantaged families receive tuition as well as free afternoon care. CFO The weather and the mood of the Ernst Mayrhofer presented the check Melecs runners was excellent and for 5,000 euros personally. the participants from the various lo- cations were there with full commit- ment. As every year, this showed us that team spirit and shared success are essential in the company! 17
8 SOCIAL COMMITMENT
Melecs EWW got awarded as „Jiangsu provincial intelligent manufacturing demonstration workshop“ and celebrated with its employees as part of a two-day group event.
Melecs award Wuxi
EWW got awarded as „Jiangsu pro- vincial intelligent manufacturing de- monstration workshop“.
Melecs Wuxi was put into produc- tion in 2016, starting to promote the set-up of an intelligent manufacturing Team building & 10 workshop and became a showcase years of Melecs in workshop for Huishan Economical electronics factory Wuxi Development Zone in Wuxi. After the procedures of enterprise declarati- EWW team building event and Me- on, preliminary examination by Eco- lecs 10th Anniversary were held as a nomic and Information Bureau, ex- two days’ group trip from May 27th to pert data review, on-site audit and 28th in Yixing. publicity, EWW has been awarded the smart manufacturing demonst- On the fi rst day, the EWW emplo- ration project of Huishan district for yees visited the Bamboo Sea and three consecutive years since 2017. most members reached the top hill In July 2018, it was awarded as Wu- in the morning. Melecs 10th anni- xi intelligent workshop. In addition versary activities began after lunch. EWW was selected as Jiangsu pro- As start of celebration, a colorful vincial intelligent manufacturing de- “Sign in Tree” was completed for monstration workshop in December this memorable day. After the Gene- of 2018. ral Manager’s exciting speech on 10 years of Melecs, the management team and all staff together celebra- ted with champagne tower and cake. In the following party-buffet, BBQ and outdoor activities, everyone had a great night. The early morning of the second day, we went for a walk with beautiful scenery in Longbeis- han Park and took a group picture. Everyone really enjoyed this event. 18
8 SOCIAL COMMITMENT
CCC-teammeeting 2019 & teamactivity
The meeting of the Customer Care Center Team (CCC) took place in October 2019. In beautiful, sunny autumn weather, the team was almost entirely present at the sports fi eld in Zagersdorf, which offers ideal conditions for sportive team activities.
The management team gave a brief review of the past fi nancial year, information on the current course of business and an outlook on future goals and challenges.
As in the previous year, the day was also used for team activity, this year with dodgeball and table football matches. Everyone had a lot of fun playing and watching!
Annual party 2019 in Wuxi
The EWW annual party for 2019 was again a great event for all participants. During the dinner there were great entertainment shows, a special competition called „The Voice of Melecs“ as well as interesting show acts. 19
8 SOCIAL COMMITMENT
The issue of health is also taken very seriously here at Melecs. For this reason, we regularly offer health campaigns such as vaccinations and health days.
Supported health campaigns
To provide its employees with pre- ventive care, Melecs has been pro- moting various health campaigns and preventive measures for years now, such as:
• Medical check-up • Vaccination campaigns (flu and tick vaccines) • Eye test • First aid course • Fire safety course • Stress & burnout prevention course • Workshops on physical fitness
The days for the vaccinations and eye tests are advertised and carried out at the locations.
Health day 2019 in Siegendorf
For the third time in 2019, the Health day took place at the Siegendorf company location.
Again, there were numerous visi- tors who could use the stations such as muscle function test, blood su- gar and blood pressure measure- ment, Bioscan body analysis, etc. to find out about health issues. Colle- ASKÖ workshops 2019 agues from AUVA and IBG also gave active support. For physical fitness and The event was again received very strengthening the back muscles, positively and we are therefore loo- Melecs supports back fitness king forward to the next health day courses and offers them in the in 2020. company. In 2019, for example, various ergonomics workshops such as Theraband, fascia and back watch workshops were held. These were well attended by the employees and will continue to take place in the future. 20 9 COOPERATION WITH TRAINING FACILITIES & INSTITUTIONS
The area of health and social responsibility also has a high priority at Melecs EWG - for this reason, the well-being of the community is supported by both donating money and blood.
Donations in Györ
Every year at Christmas, EWG do- nates to a social organization to help people who have a sad fate. Melecs Györ also supports its employees in difficult situations throughout the ye- ar. This year, a family gets help re- novating their house because their house has burned down.
Family day in Györ
Melecs Györ organized a family day in Ravazd, 25 km from Györ, next to a beautiful fishing lake. Employees were offered many activities such as boating, playing soccer, walking, fishing and archery. The biggest highlight for all was the cooking com- petition.
Health program in Györ
Employee health is one of the most important values for the company, but we also take other people‘s health into account. That is why Melecs Györ employees donate blood every year. The employees are given 2 hours off and as a thank you for their helpfulness they receive a small gift. 21 9 COOPERATION WITH TRAINING FACILITIES & INSTITUTIONS
In collaboration with numerous training facilities, Melecs regularly takes part in various company fairs and career events.
Participation in several company fairs
Melecs EWS is represented regularly at various company trade fairs, such as those of the FH Technikum Wien, HTL Mödling, FH Wiener Neustadt or HTL Eisenstadt, etc.
The career events offer Melecs numerous opportunities to present themselves as an attractive employ- er and to engage in direct exchange with students and graduates in or- der to give them practical insights in- to the company. The exchange with other participating companies is also very interesting.
Career Guide Events in Györ
Melecs EWG is closely linked to the local Hungarian vocational schools and always takes part in their career events and “Open House” programs. The EWG HR-management believes, that it is essential to demonstrate and exhibit the Melecs offered professi- ons to get pupils excited about the company and get the possibility to win them later as loyal employees.
For EWG it is also very important to use every occasion for employer branding, and be present on local conferences and in newspaper artic- les regularly. 22 9 COOPERATION WITH TRAINING FACILITIES & INSTITUTIONS
The career programs offered by Melecs, such as apprenticeship with Matura and the dual training program in Györ, are becoming increasingly important.
Apprenticeship training in Siegendorf & Lenzing
The apprenticeship training at the Austrian locations of Siegendorf and Lenzing has long been one of the most important factors for our company’s success here at Melecs. With us, our junior employees not only learn the technical foundations for their future career, they also ha- ve the chance to further themselves professionally from the very fi rst day onwards.
Melecs offers young people a very good and well-founded training and a secure job after completing their apprenticeship. The training takes place in one of the largest apprentice workshops equipped with the most cutting-edge technology as part of a training association with Siemens AG (for the Siegendorf location). The ap- prenticeship is concluded together Dual education program with the Matura (secondary school in Györ leaving examination), opening up ca- reer opportunities in an internatio- 2019 was the third school year of the nally active group. dual education program at Melecs Györ, were electrical technicians got trained. 8 students of the PÁGISZ Vocational Grammar School spent every second week at the electro- nics plant in Györ to gain expertise from Melecs technology and experi- ence the industrial environment. The proud graduates and the newcomer students of school year 2019 are shown in the pictures. 23
10 SUPPLIERS
Melecs cooperates with suppliers and maintains partnerships across the world. Mutual trust and commitment are absolutely essential. The goal is to collaborate with suppliers in a sustainable, fair way, in order to achieve a win-win situation and profitable growth for both sides.
The Melecs Supplier Manual forms the basis for cooperation with suppliers. In addition, suppliers must also comply with a specified code of conduct, which comprises the following aspects:
• Compliance with laws
• Prohibition of corruption and bribery
• Respect for the basic rights of the employees
• Prohibition of child labour
• Health and safety of the staff
• Environmental protection
• Supply chain
For certain suppliers, we carry out a quarterly sup- plier evaluation. Upon conclusion of the evaluation, the supplier is informed of the result. On the basis of the supplier evaluation, we then carry out the sup- plier development, in order to ensure adherence to our supplier principles: 24
11 QUALITY & ENVIRONMENT Code of conduct
In its vision, Melecs describes the shared vision of the Melecs Group. This is what gives us our mission and strategic goals, such as our obligation to society through sustainable action. Responsible, environmentally conscious attitudes towards employees and society as well as compliance with all legal and other requirements are fi rmly anchored in our cor- porate policy.
In the 2019 fi nancial year, Melecs successfully passed the external system audits carried out by certifi cation bodies at all locations thanks to its implemented quality and environmental management - in accordance with the standards ISO 9001:2015, IATF 16949:2016 and ISO 14001:2015.
The statutory energy audits were also carried out. The measures derived from the energy audits have been adopted in the environmental programme for the 2020 fi nancial year. 25
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection plays an important role within the company. Company management as well as employees undertake to continuously improve processes to reach the specified environmental objectives and raise environmental performance.
From cradle to cradle
Our company examines the life cycle of our products, from raw material extraction, manu- facturing and transport to application, waste management and final disposal, and checks where Melecs can have an impact on this in order to better protect the environment. 26
12 ENVIRONMENT / SUSTAINABILITY
Product life cycle management
Our product development unit works with the objective of creating resource-friendly, energy-efficient products that fulfil our claim to sustainability.
Examples of our sustainable products:
48V ECU Heating systems (Electronic Control Unit) (Product range for heating industry)
The further development of our control unit to the In the heating industry, there are two technologi- 48V power supply. cal advances that are supported by our solutions: Vehicles with a hybrid drive are becoming ever heating solutions based on renewable fuels and/or more important and widely used in the automotive heat pumps help to reduce CO2 emissions. After industry. Melecs makes contributions in this field all, the heating of our homes is responsible for ap- through the development of control units for the proximately 30 % of total CO2 emissions in Austria. 48V supply circuit, which will be increasingly used in such vehicles in the future.
On the one hand, control units such as these are used to achieve a reduction in fuel consumption by supporting the combustion engine and recovering the braking energy, and on the other hand by ma- king it possible to supply electric consumers with peak power outputs of more than 1 kW. Overall, CO2 emissions can also be reduced in this way.
Efficient electric engine controls Heating systems are increasingly being connec- ted to “smart home” solutions, meaning that local energy production (solar), fossil fuel generation Efficiency is extremely important for the engine and local consumers are integrated into an overall controls developed and produced by Melecs. The control system and can be optimally regulated in design is conceived of in such a way that effici- order to reduce the total energy requirement. This ency during operation of the electric motor is ma- development, which is evolving under the title of ximised, while power consumption when deacti- „networking and IoT“, is also being significantly vated (quiescent current) is minimised. This may driven by our solutions. be achieved with a suitable selection of electronic components in the power supply path as well as at the power outputs. 27
12 ENVIRONMENT / SUSTAINABILITY
Our environmental goals
All phases of the corporate processes are monitored with the goal of continuously improving the environmental performance thanks to sustainable environmental management.
Environmental program
The key areas of the environmental program are the reduction of energy consumption and the quantities of waste.
Our environmental performance indicators (KPIs) are defined each year. 28
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection measures in electronics plants Siegendorf & Györ
Waste reduction at Siegendorf site:
The measures taken at the production site in Siegendorf further reduced the proportion of paper used and the proportion of residual waste.
Measures successfully implemented were:
• Waste separation • Awareness-raising through the use of learning streets • Conversion from disposable packaging to circulating containers in the area of logistics & production
Waste reduction at Györ site:
The following measures were implemented in our Hungarian production plant in Györ to reduce waste.
Measures successfully implemented (in the canteen area) were:
• Use of paper cups instead of plastic cups (e.g. coffee) • Plastic sticks were exchanged to wooden ones • Use of paper bags/trays for baked goods 29
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection measures in electronics plants Siegendorf & Györ
Energy reduction at Siegendorf site:
The electricity consumption at the Siegendorf location was further reduced.
Measures successfully implemented were:
• Expansion of leak detection • Awareness-raising through the use of learning streets
Energy reduction at Györ site:
Measures successfully implemented were:
• 3 electrical submeters were installed in Györ. With these, more accurate electrical energy values can now be measured, which means that the actual consumption can be determined. • In January 2019, 2 parking spaces were equipped with electric charging stations. 30
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection measures in electronics plant Wuxi
Activated carbon replace- ment of the exhaust gas treatment equipment
EWWs gas treatment equipment is in good state. In order to ensure its filte- ring efficiency, the activated carbon inside the equipment has been repla- ced. In addition, the discharge port was tested. The emission concentra- tion is also lower.
The advantage of this system is that all of the exhaust air from the pro- duction facilities is fed to the filtering plant via pipes. The collected dust is purified by vacuum pumps with a collection efficiency of 95 % and a treatment efficiency of 70 %.
Positive effects in the Wuxi electronics plant
At the Wuxi plant, the environmental assessment report was successfully completed (see certificate). Renovation of hazardous waste storage area completed
New floor is made of epoxy, is sur- rounded by a cofferdam, and const- ructed in accordance with local laws and regulations. 31
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection measures in electronics plant Wuxi
Electronics plant Wuxi is classifi ed as a strategically aspiring industrial company
Background: Since the air polluti- In August 2019, the electronic com- on is becoming more and more se- ponents produced by EWW were riously, Chinese government has is- identifi ed as a product belonging to sued more stricter regulations on strategic emerging industry, so that environmental monitoring and emer- EWW will not have to stop production gency control and came into force even under the increasingly stringent from summer 2019 (July 2019 - Ju- environmental control measures (see ne 2020). During this period, all the c e r t i fi c a t e ). company which has pollution (such as waste gas, waste water) caused by the related equipment should stop or decrease production.
Regulations: The weather polluti- on is classifi ed into three levels: yel- low (mild), orange (moderate) and red (severe). Once the forecast level is yellow, the Environmental Protec- tion Department will immediately in- form the relevant pollution-producing plants to stop the related production and equipment on the next day un- til the air quality improves (subject to the weather forecast and the offi cial website of environmental protection).
Achievements: EWW has advanced production equipment, with mature production technology, high utilizati- on of raw materials and auxiliary ma- terials, which are non-toxic or low-to- xic substances and the products are non-toxic and harmless. EWW mainly uses clean energy-electricity for pro- duction. All pollutants are properly treated or treated with little environ- mental impact. Therefore, all the pro- ducts and processes in EWW meet the requirements of clean produc- tion. 32
12 ENVIRONMENT / SUSTAINABILITY
Environmental protection measures in electronics factory Wuxi
Environmental protection electricity online monitoring system
According to the requirements of Wuxi Environmental Protection Bu- reau, EWW installed the electricity online monitoring system for environ- mental protection to check the real- time condition, ensuring the polluti- on-producing equipment to be shut down and exhaust gas treatment equipment are turned on during the control period.
SMT scraper cleaning filtration system
According to a customer‘s auditing requirements, it was necessary to add the ultrasonic cleaning step for the SMT scraper in EWW. Since the waste of cleaning liquid cannot be di- scharged directly into the sewer and EWWs quota of hazardous waste is not enough, they developed the filtra- tion system by their own to reuse the liquid and reduce the pollution to the environment. 33
13 KEY PERFORMANCE INDICATORS (KPIs)
With the measures implemented, almost all of the goals set could be achieved.
Waste rate for non-hazardous waste kg / € 1000 turnover
Waste rate of hazardous waste kg / € 1000 turnover
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