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Impact of Solaris Bus & Coach S.A. on the economy, society and the environment DIRECTION Knowledge
Introduction to the impact analysis
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2 COMMON DIRECTION
About Solaris Bus & Coach S.A.
Solaris Bus & Coach S.A. is a Polish producer 3,000. The manufacture of public service of city, intercity and special buses, as well as vehicles began in 1996 and since then almost trolleybuses and trams boasting over 20 years 15,000 vehicles have left the factory gates of experience. When it started operation, and rolled out onto the streets of Solaris employed 36 people. However, the 32 countries worldwide. company’s staff has now expanded to over
Bolechowo Murowana Goślina
Head offi ce, bus, Maintenance coach and trolleybus Gdynia Established in 1996 assembly Olsztyn Average No. Established in 1996 of employees Average No. of in 2015: 157* employees in 2015: 1,400 Warszawa
Poznań
Sosnowiec Final assembly of trams Established in 2011 Average No. Środa Wielkopolska of employees in 2015: 229 2 production plants: Production of bus and trolleybus bodyframes Established in 1998 Production of steel * Employment data for the facility in bodyframes for trams Murowana Goślina includes people Established in 2010 employed in connection with contractual service obligations in Olsztyn, Gdynia, Sosnowiec and Warsaw. Average No. of employees in 2015: 514 people
3 Reasons behind Solaris’s decision to perform this impact analysis
Company’s Building awareness of the Presenting the role the advantages integral role of the company company plays in the social resulting from in Poland (by using specifi c, and economic life of the measurable values) which region by showcasing the this study: helps develop relationships signifi cance of educational with: measures, as well as the • local communities, impact on the market environment the company • local and state has as a result of various authorities, acquisitions and investments • other companies and in the development of organizations. electromobility.
Better understanding of Presenting specifi c, real values Creating a set of arguments crucial impacts, both positive for the effects of investments (specifi c, balanced and and negative, as well as a and other measures in the credible) in various topical broader view of the context areas of educational and sectors to communicate for making well-informed social commitment. with a variety of stakeholder business decisions and taking groups, such as customers, optimization measures within local and central authorities. current activities.
4 Selected fi gures from the past 20 years
Dynamics of employment in Solaris Bus & Coach S.A. The average annual increase in employment over the course of 20 years amounted to 31%*.
2500 2284 2332 2206 2210 2232 2000 1966
1548 1500 1562 1098 1291 1000 1023 8 519 560 500 349 533 597 166 436 239 0 1996 2001 2006 2011 2015
* Data from the end of each respective year.
Dynamics of exports by Solaris Bus & Coach S.A. The average annual increase in foreign sales over the course. of 15 years amounted to 29%*.
1200 1100
1000 1010 853 946 800 713 743 600 691 483 562
400 362 364 388 200 124 166 54 0 2001 2003 20052007 2009 2011 2013 2015
* Data from 1996-1999 is not included because of a lack of exports in those years. The substantial growth reported for 2000-2001 has not been included in calculations as it was deemed to be extreme. 5 DIRECTION Knowledge
Introduction to the impact analysis
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6 COMMON DIRECTION Economic aspects
Value of purchases (intermediate consumption)
Raw materials and services from Polish suppliers prevail in the structure of Solaris 52.2% purchases, accounting for 52.2% of the overall value of purchases.
That is 15 percentage points more than the norm for the sector of automotive vehicle, Polish suppliers trailer and semitrailer production, in the case of which domestic purchases constituted 37.5% of the total intermediate consumption in 2014. 47.8% Solaris purchases from Polish suppliers applied mainly to the following sections and divisions of the economy: vehicle, trailer and semitrailer production, professional and business services, warehousing and foreign suppliers transportation services, utilities and recycling services.
1.34 110 billion PLN* swimming pools
that is the total value of raw which is the equivalent of the materials and services used construction costs of over 110 by Solaris in 2015 public swimming pools
* 1 PLN = 0.23 EUR.
77 Economic aspects
Gross value added**
Value added is an important economic consumption. The bigger the share of value indicator. It measures the input of a company added in the fi nal product of a company, the into the production process of goods and bigger its creative input in the production services. process, and the bigger its contribution to the Gross Domestic Product. Gross value added can be calculated as the difference between output and intermediate
Gross value added generated in Poland in 2015 by Solaris, broken down by impact categories:
330.6 548.3 291.4 Total value million PLN* million PLN* million PLN* added generated 1.17 by Solaris in 2015 bilion PLN* Direct Indirect Induced impacts impacts impacts
It’s 2.5 times the annual state spending on teaching hospitals in Poland 1 PLN = 3.53 PLN
The sum of all value added from all Each Polish złoty of gross added value business sectors plus taxes on products produced by Solaris generates a total of less subsidies on products equals gross 3.53 PLN in value added among suppliers domestic product (GDP). and other entities in the Polish economy.
* 1 PLN = 0.23 EUR. ** Gross value added at basic prices.
8 Income
By providing direct employment to its Solaris is among the top 5 percent of employees and creating indirect effects in organizations, offering the highest industrial the economy through its suppliers and sub sector salaries and wages in the Greater suppliers, who also provide jobs to their Poland voivodeship.** employees and pay them salaries, Solaris has an impact on generating incomes in all sectors of the Polish economy.
Income generated by Solaris in Poland in 2015
111.1 105.1 177.2 The total value of million PLN* million PLN* million PLN* income generated 393.4 by Solaris in 2015 ** million PLN* Direct Indirect Induced impacts impacts impacts + =
Direct employment Number of jobs maintained Overall number of jobs in Solaris in 2015 in Poland’s economy in 2015 maintained in Poland in 2015 by means of indirect and thanks to Solaris business induced impact activity
That is 99% of all graduates Such a number of jobs would of the Poznań University of allow to completely eliminate Technology who obtained unemployment in the city a degree in 2014 of Rzeszów
** Average gross monthly salary of 5,001 PLN or more. *** This refers to net wages.
9 Economic aspects
Contributions to state and local budgets
The positive impacts of Solaris operations on related investments. Taxes and payments from the polish economy is also refl ected in the Solaris fl ow into the state budgets as well as amount of taxes, fees and other contributions into the budets of local governments in which paid to the state and local budgets. Solaris has its operations, and thus support the fulfi lment of obligations of state and local These payments have a direct impact authorities. on fi nancing public spending on i.a. regional development, road construction, environmental, social, educational and health
Contributions to state and local budgets paid by Solaris in 2015
163.6 71,720,000 PLN* Value Added Tax (VAT) million PLN* 67,029,000 PLN* Social contributions** Total amount of taxes fees and other 15,344,000 PLN* contributions paid Advance Personal Income by Solaris in 2015. Tax (PIT) 6,355,000 PLN* Corporate Income Tax (CIT)
3,188,000 PLN* Vehicle tax Perpetual usufruct fee*** Payments to the State Fund for Rehabilitation of Disabled Persons (PFRON) Real estate tax
* 1 PLN = 0.23 EUR.
** Based on payroll calculations. 10 Research and development
Spending on research and development in A real growth of innovation in Poland can only Poland is relatively low in comparison to other be achieved by an increased commitment of European countries. Nonetheless, investments the private sector to that domain, which is in this area are rising. According to the something Solaris contributes to. Central Statistical Offi ce (GUS), gross domestic expenditure on research and development (GERD) in the private sector amounted to 7.5 billion PLN* in 2014, having climbed by nearly 20 percent year-on-year.
Measures taken by Solaris
144 million PLN*
Total spending of 57 million PLN* 86 million PLN* Solaris on Research Internal expenditure** of External expenditure*** and Development in the Solaris on research and of Solaris on research and years 2012-2015 development in the years development in the years 2012-2015 2012-2015
684 people 40% of enterprises 3.1% Total number of full-time jobs Including Solaris, spend Expenditure of Solaris on related to R&D projects in over 3% of their annual research and development in 2014 Solaris in the years 2012-2015 sales on R&D presented as the percentage of total company sales
* 1 PLN = 0.23 EUR.
**Internal expenditure is the fi nancial means spent in the reporting year on R&D, carried out by the reporting entity, irrespective of the origin of the funds in question. This covers both current expenditure, as well as gross fi xed capital formation related to R&D activities (excluding amortisation of the fi xed assets).
***External expenditure is R&D spending claimed by other contractors (subcontractors), both domestic and foreign ones.
11 DIRECTION Knowledge
Social aspects
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12 Social aspects
Caring for the social environment it operates and economic driving, vocational training in, Solaris ventures a number of measures and programmes in collaboration with the initiatives addressed to local communities vocational school in Murowana Goślina and and its staff. These activities include offering Środa Wielkopolska, and social responsibility trainings for workers, establishing a nursery endeavours, implemented via the “Green called “Under the Green Dachshund”, Dachshund Foundation — for the rescue of doing trainings for drivers on road safety the defenceless”.
Trainings Ecodriving training for employees for drivers
819,000 PLN* 156 Total spending on training Number of drivers who completed Solaris employees in 2016** ecodriving training in 2016
This sum constitutes the If all participants of energy-effi cient equivalent of costs for one-year driving trainings observed all the post-graduate study courses guidelines taught at these events, for 164 people at the Poznań they would reduce fuel consumption University of Technology by 157 million litres per year, which equals to savings of 565,000 PLN and a reduction of gas emissions by 407 tonnes of CO . Practical Internship Programme 2 in the vocational training class Vocational training supported by Solaris supported by Solaris
145,000 PLN* 76 total expenditure of Solaris Number of graduates of the on preparing students for programme since its establishment vocational training exams in the years 2015-2016 65 This sum constitutes the Number of graduates who were granted equivalent of 19% of the employment at the company since the spending of the Greater Poland establishment of the programme voivodeship budget on tertiary education in 2016. * 1 PLN = 0.23 EUR. ** as of the end of November 2016. 13 Social aspects
“Green Dachshund Foundation — for the rescue of the defenceless” “Under the Green Dachshund” nursery
14,000 hours over 959,000 PLN*
Dedicated by volunteers That is the total value of social Adopting average market for the corporate involvement** of Solaris made rates, we can assume that the volunteering scheme since since 2012 as part of projects opportunity to use a nursery the establishment of the run by the Green Dachshund free of charge for two years foundation Foundation — for the rescue generated nearly 838,000 PLN of the defenceless in savings for Solaris employees in the years 2012- 2014*** Savings generated per employee who used the That is 1,750 working days, or This sum would be enough free-of-charge child care in the 87.5 months of work, which to fi nance catering for all fi rst two years amounted to equals to 7.3 years of work for students of a medium-sized over 15,000 PLN**** one employee primary school for over two This amount would be enough years, i.e. to buy 153,400 to cover the costs of 355 school lunches in total. swimming lessons for infants in Poznań (swimming pool nursery classes).
* 1 PLN = 0.23 EUR. ** The value of the total social involvement includes fi nancial and material contributions made to the benefi ciaries and the estimated cost of time dedicated by employees to corporate volunteering programmes. *** The number of children attending nurseries in the fi rst two years multiplied by the estimated average fee for whole-day child care provided by the nursery. **** Assuming that each parent had the possibility of placing their child in a different nursery or, in case of lack of vacancies in a nursery, of paying for a nanny.
14 80
Employees have sent their children to the company-run nursery 91
Children have attended the nursery since its establishment 28
Children were cared for in the nursery in 2016
external subsidies
funding provided by Solaris
* 1 PLN = 0.23 EUR.
15 DIRECTION Knowledge
Environmental aspects – e-mobility
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16 Environmental aspects
E-mobility
Benefi ts resulting from the rollout of electromobility: high zero effi ciency emissions of the electric at the place drive of use of the vehicle
Vibrations and noise Out of concern for the health and safety of drivers and passengers alike, Solaris strives to minimise emissions of both noise and vibrations inside and outside its buses. This is particularly successful with electric buses and their characteristic lower noise emissions and vibration levels compared to buses with conventional combustion engines. 76% 28% 16% reduction of vibration in the lower noise level in the back lower noise level generated driver’s seat on an electric of an electric bus compared by an electric bus when bus, compared to a bus with to a bus with a combustion moving away from a stop a petrol or diesel engine engine compared to a bus with a combustion engine
17 Environmental aspects
E-mobility
Fuel costs
The oil reserves owned by Poland, for the operation of conventional vehicles, are extremely low compared to the real needs. At the moment 97% of the oil used in Poland is imported.
1.02 billion PLN*
Annual cost of the purchase This sum constitutes a The same sum would be of fuel for all city buses considerable 15% of the total enough to build wind power driving in Poland** import of diesel, heating oil, plants generating a total of petrol or kerosene supplied 144 MW of power, which could * 1 PLN = 0.23 EUR. ** Simulation for 11,376 city buses in to Poland in 2015 cover the annual demand for Poland, assuming an average annual electric power of 3,973 electric mileage of 60,000 km and diesel buses consumption of Diesel 44.85 litres/100 km.
The impact of replacing diesel or petrol buses Total average with electric ones, made reduction of fuel by Solaris, on Polish 1.02 costs, in annual streets Combustion engine billion PLN* terms** buses (11,376) * 1 PLN = 0.23 EUR. ** Simulation for 11,376 city buses in Poland. For this purpose, the authors Total average assumed an overall number of city reduction of fuel buses (as of 31 December 2015) 10.2 less those running on alternative costs, over a period fuel. Data is based on the report: Electric buses (11,376) billion PLN* of 10 years** Transport. Activity results in 2015, prepared by the Central Statistical Offi ce (GUS). 18 Noise Air pollution
Though inevitable, the development of Air pollution is one of the most severe transport entails a number of negative effects, environmental threats we face today. A result such as the ever growing number of people of the intensive development of transport, exposed to detrimental and onerous factors, when industrial and municipal emission including vibrations and noise. ratios are still insuffi ciently reduced, is the permanent exceedance of restrictions in The various negative consequences of high air quality standards for many cities in the noise and vibration levels on people’s health, European Union. the environment and the economy, include:
• cardiovascular diseases, In spite of anti-pollution programmes being • learning diffi culties of affected children, implemented in areas particularly affected by • sleep disorders, limit violations, measures undertaken by local administrations yield no spectacular result, • deterioration of environmental conditions, in particular in relation to industrial and • high costs of treatment, municipal emissions. Hence also the special • payment of invalidity pensions, signifi cance of green, zero-emission solutions • faster use of production and transport for mass public transport, such as fully electric means, buses. • decline of quality and utility of areas threatened by excessive noise.
Total average reduction Total average reduction of socio-economic of socio-economic costs 39.4 costs of noise, in 256 of air pollution, in annual million PLN* annual terms** million PLN* terms**
Total average reduction Total average reduction of of socio-economic socio-economic costs of 394 costs of noise, over a 2.56 air pollution, over million PLN* period of 10 years** billion PLN* a period of 10 years**
19 Environmental aspects
Effective use of resources
In consideration of contemporary challenges management systems as well as devices of sustainable development tied to the and technologies that reduce the scale of exhaustion of natural resources, climatic negative impact. Furthermore, Solaris pays change and excessive environmental huge attention to related areas, such as the pollution, Solaris is venturing a number of improvement of energy effi ciency and the measures to minimize the negative impact rational use of existing energy resources in on our environment. view of an increasing demand for energy. Supporting the implementation of these endeavours are homogenous environmental
One of the fl agship This investment has yielded In the years 2014-2016 investments Solaris has the expected results. In spite spending on plant expansion made recently was the plant of an increase of the site amounted to 54.1 million extension in Bolechowo area by nearly 40%, power PLN*, which constituted (near Poznań). The facility is consumption has risen by nearly 30% of the total used for the production of merely 5.8%. investment budget of the new-generation, lightweight company. city buses. Completed in 2016, the plant overhaul In fact, after the launch of the enabled increased output and plant extension the energy The average annual outlay improved the effectiveness intensity of the whole plant settled at 18 million PLN.* of certain processes. contracted by 24% compared to 2015.
The achievement of this result was possible owing to the application of new ventilation, heating, air- conditioning and lighting technologies. * 1 PLN = 0.23 EUR.
20 21 Assumptions to the report and research methodology
This brochure constitutes the summary of impact indicators in three crucial areas, and it a comprehensive study of the effects of also contained a section with historical data, economic, social, and environmental activities encompassing selected issues from the 20-year of Solaris Bus & Coach, conducted by Deloitte business history of Solaris Bus & Coach S.A. Advisory Sp. z o.o. in the period of January- February 2017. The study covered several dozen
Study assumptions: Methodology:
Economic impact indicators were calculated The economic effects have been calculated for 2015 only, whereas environmental and using a model based on the Input-Output social indicators as well as historical data tables for the national economy. cover the year 2015 and previous years. The total economic effects demonstrated in Calculations are based on data provided by this brochure are the sum of direct, indirect Solaris and data from external sources. (generated in the supply chain) and induced economic effects (generated by employee salaries).
The presented comparisons are based on publicly available statistics.
The data used in the study was provided by Solaris Bus & Coach S.A. or has been obtained from publicly available sources.
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