The Journey of Crystal S Ustainability Report 2013 – – – 6
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THE JOURNEY OF CRYSTAL S USTAINABILITY REPORT 2013 – – – 6 BUSINESS ACTIVITIES KEY ACHIEVEMENTS IN THE INTRODUCTION .......................... PAGE 4 PRODUCTION ............................ PAGE 38 REPORTING PERIOD: The world of Swarovski encompasses the production and MESSAGE FROM THE SWAROVSKI 6.1 ProtECTING THE EnVIRONMENT marketing of a wide range of high-quality products and EXECUTIVE BOARD 6.2 CERTIFICATION AND AWARDS WE INTRODUCED SPIRIT 2020 services for consumers (B2C) and businesses (B2B): 6.3 RESPONSIBLE EmiSSIONS AND EnERGY MANAGEMENT WE LAUNCHED A FORMAL CORPORATE MAKING EXCLUSIVITY AVAILABLE TO A 6.4 IMPROVING WATER USAGE AND TREATMENT RESPONSIBILITY FRAMEWORK 1 GLOBAL CONSUMER BASE: 6.5 RECYCLING AND WASTE MANAGEMENT Jewelry, watches & fashion accessories OUR BUSINESS ............................ PAGE 6 WE LAUNCHED THE SwAROVSKI FOUNDATION Figurines & Home Accessories Beauty & Fragrance WE LAUNCHED ADVANCED CRYSTAL 2 7 Lighting OUR CR APPROACH ................. PAGE 12 MARKETING AND SALES ....... PAGE 54 HIGH-QUALITY CRYSTAL AND CRYSTAL-RELATED PRODUCTS FOR BUSINESS PARTNERS: 2.1 CR StrATEGY 7.1 SWAROVSKI SuSTAINABLE StorES Crystal components 2.2 GoVERNANCE 7.2 TRIPLE-S OVERVIEW Genuine gemstones and created stones 2.3 AcHIEVEMENTS AND TARGETS 7.3 TRIPLE-S NEXT StEPS Corporate gifts Traffic safety & other functional lighting solutions 3 8 OTHER ACTIVITIES COMPRISE: Crystal experiences REPORTING APPROACH .......... PAGE 20 SUPPLY CHAIN ........................... PAGE 62 Entertainment 9 4 CARING FOR OUR PEOPLE .......PAGE 66 COMPANY VALUES ................... PAGE 22 9.1 CARING for our PEOPLE 9.2 EnSURING HEALTH & SAFETY AT our PRODUCTION SITES 5 9.3 ENSURING EmPLOYEE WEllbEinG DEVELOPMENT AND DSE IGN . PAGE 24 10 5.1 CREATING RESPONSIBLE ProductS 5.2 DESIGN GNIVI G BACK ............................ PAGE 84 10.1 GiVING BACK 10.2 COMMUNITY INITIATIVES 10.3 BroADER CHAritY And SPonSORSHIPS SWAO R VSKI WATERSCHOOL PAGE 92 DEAR READERS, The world is constantly changing – be it in terms of economy, environment, or technology – and so is Swarovski. What will never change is our commitment to strive for the highest ethical standards. The good name of our family business is one of our most important assets. We are aware of our responsibility to protect it and are committed to this aim in all that we do. Our company founder Daniel Each member of the global strong commitment to this important Swarovski believed that success in Swarovski community carries their international initiative to promote business was only possible if the share of responsibility for our business responsibility. environment and its resources were business. Likewise we, the Members treated with respect, and social of the Executive Board, take our Swarovski Spirit 2020 – which needs taken into account. He made responsibility for each one of those defines our values, vision, and his own views on sustainability known members seriously. Swarovski takes mission – represents our long-term by expressing them as one of his its stakeholders into consideration in view of the future. As we look guiding principles: “It is the duty of its actions and decisions – whether toward to 2020, we see great every responsible company to support they are employees, customers, opportunities, yet also big challenges. social and environmental projects.” consumers, family members, or We are committed to meeting shareholders. these challenges with responsibility, At Swarovski, this responsible attitude imagination, passion, and vigor. has matured because the company Swarovski’s continued healthy growth is managed by descendants of the and the implementation of our many We would like to close with these founder’s family in the understanding projects show that we are on the right inspiring words from our founder: that it is even more important today track. This report is an expression “A pre-condition of your long-term to consider the future, and to build up of our ongoing journey toward the success is that you endeavor to think and promote a high level of sensitivity practice of successful sustainable not only of yourselves but also of your concerning the appropriate use of Corporate Responsibility (CR). It is fellow human beings. Those who available resources. with this document that we reaffirm adhere to this condition will certainly our commitment to responsible, be blessed with success.” Swarovski is a growing business social, ecological, and ethical that remains at the very forefront of standards and to our intention to And last but not least, we would like design, creativity, and technological practice the principles of sustainable to thank the family shareholders and innovation. Our company employs development in all of our daily our employees. It is only through your 25,000 people worldwide, all operations. initiative, your commitment, and your of whom contribute their diverse sense of responsibility that Swarovski perspectives, experiences, and Our CR strategy aims at ensuring that is what it is: cosmopolitan, a market values. This – along with our we follow our words with actions leader, a trendsetter, a creative The Swarovski Executive Board: standing, from left: Daniel Cohen, Nadja Swarovski, Mathias Margreiter employees’ knowledge, skills, and and remain true to the vision of our partner, and, not least, a responsible Seated, from left: Markus Langes-Swarovski, Robert Buchbauer talents – helps underpin the success founder, Daniel Swarovski. That corporate citizen that strives to of our increasingly international is, to run a company that has at its positively influence society and the business, despite challenging global heart not only the wellbeing of all environment. economic conditions. employees, but also that of society and the environment as a whole. It is Sincerely, aligned with the Ten Principles of the The Executive Board of the Swarovski UN Global Compact, signifying our Crystal Business 4 5 1 – 1 – ABOUT SWAROVSKI ABOUT SWAROVSKI 1.1 – 1 O UR BUSINESS For over 100 years, Swarovski, the brand synonymous with craftsmanship, creativity, and innovation, has developed its supreme mastery of precision cutting to become the world’s leading producer of cut crystal, genuine gemstones, and synthetic stones. ABOUT SWAROVSKI The family business has remained fully independent since its foundation in Wattens, Austria, in 1895. SWAOSK R V I CRYSTAL BUSINESS* Sw AROVSKI CRYSTAL BUSINESS THE SwAROVSKI ADVISORY BOARD Revenue: EUR 2.38 billion (2011: EUR 2.22 billion) This report covers Corporate Responsibility commitments in The Advisory Board is the control and oversight body of the Number of employees: 25,135 Swarovski’s Crystal Business specifically. Swarovski Crystal Business. The Advisory Board represents the Swarovski Group’s 78 shareholders through its six Total number of stores worldwide: approx. 2,350 Swarovski designs, manufactures, and globally markets family members – one-third female, two-thirds male. The Number of stores operated by Swarovski: approx. 1,250 jewelry and high-quality crystal, genuine gemstones, created members meet once a month, alternately in Männedorf, Number of partner-operated stores: approx. 1,100 stones, and finished products such as accessories and Switzerland, and Wattens, Austria. lighting solutions. What started in 1895 as a small crystal Number of stores by region: manufacturing business in Wattens, Austria, has grown to THE SwAROVSKI FAMILY SHAREHOLDERS Asia/Pacific: approx. 770 be a global company making exclusivity available to a There are 78 Swarovski family shareholders. They assemble North/South America: approx. 470 worldwide consumer base. With a rich history and a culture three times per year and there are also different shareholder Europe: approx. 1,100 of creativity. The company is committed to growth and to associations. maintaining its place at the forefront of design, creativity, and Swarovski’s products are sold in approx. 170 countries. technological innovation. Production locations: Austria, China, Czech Republic, India, Liechtenstein, Thailand, and the US. THE EXECUTIVE BOARD OF THE SwAROVSKI CRYSTAL BUSINESS *as on 31.12.2012 The Executive Board (ExB) is appointed by the Swarovski Advisory Board and is collectively responsible for leading the Swarovski Crystal Business. Furthermore, the Advisory Board has allocated specific responsibilities to individual ExB members. The ExB consists of family members only. The members meet once a month, alternately in Männedorf, Switzerland, and Wattens, Austria. 6 7 1 – 1 – ABOUT SWAROVSKI ABOUT SWAROVSKI Production LOCATIONS C HINA Sw AROVSKI CRYSTAL BUSINESS* QINGDAO End of value chain production processes for crystal elements EUROPE AUSTRIA/WATTENS Production of crystal elements LIECHTENSTEIN/TRIESEN Supply chain hub for all Consumer Goods Business activities THAILAND CZECH REPUBLIC/JABLONEC USA AND NISOU AYUTTHAYA & BANGPOO Quality inspection Fashion jewelry production PLATTSBURGH (Marigot Jewelry Company) Swarovski Lighting SERBIA/SUBOTICA (TO BE OPENED BY 2014) BANGPLEE End of value chain production Beginning of value chain processes processes for crystal elements for Gemstone Business VIETNAM Fashion jewelry production INDIA PUNE End of value chain production processes for crystal elements *as on 31.12.2012 8 9 1 – 1 – ABOUT SWAROVSKI ABOUT SWAROVSKI SAO W R VSKI SPIRIT 2020 The Swarovski Executive Board developed Swarovski Spirit 2020 as an expression of its strategic intent and values for the Swarovski Crystal Business. Swarovski Spirit 2020 embodies our mission (“what