SUSTAINABILITY REPORT 2016 / 2017 CONTENTS OUR COMPANY

3 Our company 14 Sustainable products 26 Employees burgbad AG is a leading manufactu- burgbad submits a declaration of rer of premium furniture and system conformity with the German Sustain- 4 For us, sustainability starts Innovation management Training and development solutions for the bathroom based in ability Code (DNK) and a progress right on our doorstep Bad Fredeburg. The company was report in compliance with the UN Concepts and designs Equal opportunity 8 Statement by the executive founded in 1946. At the time, its Global Compact. board 17 Breakdown of Health activities focused on the production raw materials of wooden construction kits and 9 Sustainability strategy Shared values shelves. burgbad quickly specialised 18 Responsibility in the in manufacturing bathroom furniture Action areas and goals supply chain 29 Code of conduct and was soon targeting the expan- 12 Action areas and goals 19 Emissions and 30 Social responsibility sion of its portfolio and expertise in consumption this direction.

24 Breakdown of waste dis The internationally operating posed of and recyclable company has three locations in waste – Bad Fredeburg, Greding and Lauterbach-Allmenrod – which together make up burgbad GmbH, as well as a French subsidiary – burgbad France S.A.S – in Nogent- le-Roi. Since 2010, burgbad has been a wholly owned subsidiary of the Turkish Eczacibasi Holding. In 2017, a workforce of 722 staff was employed at burgbad’s locations, 610 of them in Germany and 112 in France.

Cover photo: the River

2 www.burgbad.com www.burgbad.com 3 The HOCHSAUERLAND region

For us, sustainability starts right on our doorstep in the Hoch- Grafenberg forms part of Greding The Eure is one of the two rivers region, Grafen- in the district of , . The that give the French département of berg in the , Anlauter runs across the plateau, Eure-et-Loir its name. burgbad has a Lauterbach-Allmenrod in the which is part of the Franconian Jura. facility in Nogent-le-Roi, where The FRANCONIAN JURA Mountains and The stream starts from a small pond. we also produce bathroom furniture. Nogent-le-Roi in the Eure-et- Even though the Anlauter is just 29 The little French town is located on Loir département: the landsca- kilometres long, its water travels all the bank of the Eure, a tributary of pe around burgbad’s four the way to the Black Sea: near Kin- the Seine. Its water fl ows into the production facilities is literally ding, it fl ows into the Schwarzach, English Channel in Le Havre and streaming with good reasons which empties into the Altmühl a from there into the Atlantic. to think and act sustainably. little further on; via the Altmühltal Valley, the water of the Anlauter Join us on a little tour of the streams reaches the at , and rivers that give everyone at bur- from where it passes through half of gbad strong motives for focusing so Europe. much attention on the environment. Our mineral cast plant is located in Lauterbach-Allmenrod in the Our original factory in Schmal- German state of . It’s at this lenberg is located in the Hoch- facility that we produce burgbad’s sauerland region. Numerous rivers top-quality vanity tops. The town and streams have their source here, of Lauterbach is named after the including the Lenne, the Wenne, the River Lauter; it rises near the Sieben Henne, the Valme, the Elpe and the Ahorn in the middle of the Vogels- Leisse, to name but a few. The Lenne berg Mountains, and its valley is a runs through Schmallenberg itself; beautiful destination for hikers. In it rises in the , Bad Salzschlirf, the Lauter joins the The EURE-et-Loir near the summit of the . Altefeld to become the Schlitz, which département From there, the Lenne makes its way then fl ows into the . In Hanno- through the Sauerland. After 129.1 versch-Münden, the Fulda meets the kilometres, it fl ows into the near Werra to become the , which Hohensyburg Castle. The water from empties into the North Sea. the Lenne eventually fi nds its way into the North Sea via the Ruhr and .

The river LAUTER

6 www.burgbad.com www.burgbad.com 7 STATEMENT BY THE SUSTAINABILITY EXECUTIVE BOARD STRATEGY

Dear Reader, What’s more, burgbad’s furniture burgbad is a participant in the UN range has been awarded a Class A Global Compact, the world’s biggest ENVIRONMENTAL RESOURCE CON- DEMOGRAPHIC HEALTH ECONOMIC burgbad has been literally showered emissions rating. Customers can the- initiative for responsible corporate POLLUTION SERVATION CHANGE GLOBALISATION with awards over the last two years: refore rest assured that our products management. We are explicitly com- several prizes for design and inno- do not emit any harmful substances. mitted to implementing and promo- vation, accolades from architects ting the 10 principles of the Global and the media, customers’ favourite Parallel to this, we are also tackling Compact in the areas of human - Energy effi ciency - Materials effi ciency - Promotion of young - Product-related - Suppliers awards. I’m proud that our ideas for social issues. Together with 200 rights, labour, the environment and - CO2 emissions - Waste talent - Employees top-quality bathrooms are proving so other companies, burgbad has been anti-corruption. - Durability - HR development popular. part of the refugee support network A sincere thank you to all the staff, - Age-appropriate work “Us Together” since June 2016. partners and customers who are - Products for every I’m all the more delighted because, We took on fi ve interns who were accompanying us on this journey. age at the same time, burgbad has signi- forced to fl ee their own countries fi cantly improved its ecological and and retained three young men CLIMATE ACTION RESPONSIBLE QUALITY EDUCATION GOOD HEALTH DECENT WORK AND social standards. Since 2016, our from Guinea, Ethiopia and Syria in CONSUMPTION AND WELL-BEING ECONOMIC GROWTH AND PRODUCTION production activities have been cli- permanent positions. Our staff act as mate neutral – a major step that we mentors, providing support not just spent two years preparing for. We with regard to job-related aspects now purchase wood – our most im- but with lots of day-to-day matters portant raw material – entirely from as well. They deserve a very special sustainable sources, and our com- thank you. I am deeply convinced pany is PEFC-certifi ed. We require that internationality and diversity are Sustainability is part of burgbad’s In 2015, we defi ned customers, 1. Environmental pollution our suppliers to comply with a Code an asset – not just for our company culture. We know that we are not suppliers, employees, our parent of Conduct that makes respecting but for society as a whole. only responsible for our company, company Eczacibasi and other Climate change is a global challen- human rights, labour standards and but have the duty to harmonise our interested parties such as architects, ge – and one that burgbad wants to environmental protection a prerequi- business objectives with social con- potential employees and customers counter with active measures. We site for any business relationship. cerns as well. That’s why, for some and the general public as our most strive for climate-neutral producti- years now, we have been addres- important stakeholders. At the same on. To that end, we are working to

sing the question of how we can time, we set ourselves measurable reduce energy use, cut CO2 emissi- measure the impact of our activities goals for many of our undertakings. ons and switch to renewable energy on the environment and society and sources. Unavoidable emissions are Kind regards, ensure that impact is positive. Action areas and goals offset.

In order to take the right steps, it is In 2015, together with representati- General goal: KLIMAPAKT important to listen to people and ves of its key stakeholders, burgbad • Annual offsetting of unavoidable für die Möbelindustrie Climate Pact for the furniture industry Hersteller-Nr. / manufacturer-no. institutions outside our own company defi ned action areas in which our CO2 emissions based on the criteria K16-006 Prüfnummer / control number as well. That is why we sustain a company will make an active cont- of the German Quality Assurance 16-006-01 close dialogue with those who have ribution to sustainable development Association for Furniture (DGM) to an interest in our enterprise – our over the next few years. qualify for the DGM’s “Climate-Neut- Jörg Loew stakeholders. ral Furniture Manufacturer Scopes 1, Spokesman of the executive board 2, 3” label. Nach den Richtlinien für den Klimaschutz PARTNER VON der Deutschen Gütegemeinschaft Möbel • According to the guidelines for climate protection of the DGM • www.dgm-klimapakt.de

8 www.burgbad.com www.burgbad.com 9 Goals 2018: • Increase the share of PEFC-certi- Goal 2018: Goals 2018: SDG 8: Promote sustained, inclusive • Effi ciency and feasibility analysis fi ed wood for France to 90 percent. • Introduction of a standardised and • Development of a self-assessment and sustainable economic growth, of using scrap wood for heating at In Germany, maintain the 90 percent systematic personal development questionnaire and survey of both our full and productive employment and the location in France, similarly to already achieved. review for employees up to lower ma- 20 biggest suppliers and suppliers decent work for all. Germany. • Switch to buying PEFC/FSC-certi- nagement level across all locations. with products from Asia as the basis • Effi ciency and feasibility analysis fi ed cardboard. • Promotion of regular further for risk assessment in accordance SDG 12: Ensure sustainable of renewable energy sources for the training and continuing education for with the National Action Plan for consumption and production pat- Bad Fredeburg site: CHP and/or PV employees. Business and Human Rights (NAP). terns. Specifi cally, the aim is to sub- system. Goals 2020: • Implementation of risk assessment stantially reduce waste generation • Reduce total amount of waste 4. Health (NAP) and achieve effi cient use of natural (kg/t of production) by 10 percent Goal (medium-term): resources by 2030. Goals 2020: as compared to 2014. For us as an industrial company, • Implementation of NAP require-

• Reduce CO2 emissions (kg/t of • Reduce paper consumption by 50 occupational safety and health and ments. SDG 13: Take urgent action to production) by 55 percent as com- percent as compared to 2015. enabling our employees to balance combat climate change and its pared to 2014 (according to Scope • Responsible handling of resources their families are topics that call for Goals for sustainable de- impacts. Specifi cally, the aim is to 1 and 2 of the Eczacibasi Group’s in administration and visitor areas. constant diligence. We want to pro- velopment quantify and reduce greenhouse gas eco-controlling system). mote our staff’s health. We offer our emissions (GHG) as per Scope 1, 2 • Reduce total energy consumption 3. Demographic change customers products that not only pose In 2015, the United Nations defi ned and 3. (kWh/t of production) by 10 percent no risk to health but, ideally, deliver a total of 17 Sustainable Develop- as compared to 2014. We want to retain the valuable expe- health-promoting benefi ts as well. ment Goals (SDGs). Companies’ . rience of our older employees while participation is indispensable if simultaneously attracting the best Goals: these objectives are to be achieved. 2. Resource conservation youngsters to our company. We are • Utilisation of the “health label” in burgbad wants to do its bit as well, committed to enabling age-appro- France as soon as the corresponding and is addressing the SDGs. burg- We want to be even more econo- priate work and promoting young draft bill for evaluating permissible bad has prioritised fi ve SDGs that mical in our use of resources and talent. We want to create solutions emission levels in indoor air has been we would like to make a special avoid critical input materials. To that for our customers that adapt to their passed. contribution to within the framework end, we are increasingly working life situation. We are investing in the • Lower the number of work-rela- of our sustainability strategy. They with certifi ed and eco-friendly development of bathroom furniture ted accidents to the greatest extent complement and expand on the ac- materials and reducing or recycling for an ageing society. possible. tion areas that burgbad has defi ned waste. At the same time, we design for itself. products that are high quality, made General goal: to last and variable. • Ensure the training of young peo- 5. Economic globalisation SDG3: Ensure healthy lives and pro- ple in clerical and technical occupa- mote well-being for all at all ages. Goals 2018: tions at all German locations.. The internationalisation of business • Extensive investigation into the processes makes it increasingly SDG4: Ensure inclusive and equita- status of recycling quotas for bought- diffi cult to ensure sustainability in the ble quality education and promote in raw materials and products: supply chain. We make every pos- lifelong learning opportunities for packaging, wood-based materials, sible effort to do so. Our key areas all. fi llers, mirror glass, ceramic, metals of focus are environmental issues, materials, working conditions and human rights.

10 www.burgbad.com www.burgbad.com 11 SUSTAINABILITY MANAGEMENT STRUCTURE

burgbad AG is a subsidiary of Ecza- In 2014, burgbad created the In 2015 we also established a We have defi ned the weight of We also document job tenure and Furthermore, our ISO 90001:2015 cibasi Holding and is embedded position “Head of Innovation and sustainability team consisting of produced and packaged units as the age structure, as well as the share and PEFC certifi cations set a frame- in the Eczacibasi Building Products Sustainability”. The holder of this 12 representatives from the vari- reference value for our consumption of apprentices, the share of female work for complying with sustainabili- Division. burgbad’s executive board position reports directly to burgbad’s ous departments. All areas of the rates. employees and the fl uctuation rate. ty standards. With regard to energy reports to the division’s Executive executive board, assists with the company are covered, thus ensuring management, we are systematically Vice President. The Innovation ongoing development of its sustain- close cooperation with the respective The most important key fi gures are: In 2016, burgbad also joined the working through all the points iden- and Sustainability Coordinator, ability strategy, consolidates topics, departments across all locations. • Energy consumption (kWh/t of “Climate Pact for the Furniture Indus- tifi ed by our energy audit. Topics who reports directly to the CEO of proposes projects and suggests production) – per type of energy try” initiated by the German Quality relevant to industrial safety are dealt the holding, is responsible for the appropriate actions. At the same In twice-yearly meetings, the sustain- • Total energy consumption (kWh/t Assurance Association for Furniture with at regular meetings of the wor- Eczacibasi Group’s sustainability time, the position also involves coor- ability team validates the progress of production). This permits calculati- (DGM) and pledged to calculate king committees. management. Sustainability issues dinating sustainability activities with made on sustainability issues and on of kg CO2/t of production. its emissions data according to the are addressed by a strategy team at the parent company and serving as develops further goals and actions • Total amount of waste (kg/t of criteria defi ned by the climate pact, the holding company level and by the interface with the internal, opera- for submission to the executive production) which cover not just Scopes 1 and 2 seven international working groups tional level. board. These proposals are appro- • Share of recyclable waste (%) but Scope 3 as well. We use these that focus on various subject areas. ved in management meetings with • Material input (t/t of production), values for calculating offset pay- the executive board in attendance. whereby in this case material relates ments. The divisional heads of buying, to the total amount of raw production, fi nance & legal, sales, materials (wood-based materials, The group-wide value improvement HR and marketing are responsible mirrors and glass, fi llers and resins programme “DIP” also helps achieve for their implementation. for the production of mineral cast effi ciency and a more economical without ceramic washbasins) and approach to resources. The action CEO Eczacibasi burgbad has an IT-based eco-cont- packaging materials. taken and progress made in the va- rolling system that compiles essential • Ratio of recycled materials used rious areas is reported to the parent data and permits an input-output ana- (%), hitherto only packaging company at regular intervals. One Executive vice president Innovation and lysis of the company. It was imple- • Occupational health and safety: 2017 project in synergy with our building products sustainability coordinator mented in 2014 as part of the Blue LTIR (= sum of work-related accidents parent company involved adopting division Eczacibasi Life strategy of the parent company’s *200,000/hours worked) and the a lean management approach in Building Products Division and is number of commuting accidents. In Bad Fredeburg and Nogent. We based on a comprehensive system for addition, we analyse the types of restructured material fl ows and Sustainability strategy measuring, reporting and improving accident across locations, as well as work routines and made them more team Eczacibasi the sustainability performance of all the occupational disease rate (ODR effi cient. We are now pursuing the CEO burgbad the companies concerned. We report = number of occupational diseases same approach at our Greding and our data to our parent company on a *200,000/hours worked) and the Lauterbach sites. quarterly basis. The fi gures are vali- lost day rate (LDR = number of days Head of innovation 7 sustainability dated by sustainability management lost due to work-related accidents * working groups and sustainability and used to identify weaknesses, for 200,000/hours worked). burgbad Eczacibasi instance in the handling of resources, and take appropriate countermea- sures. This also serves us as a basis Team sustainability for the defi nition of our goals, such burgbad as the reduction of CO2 emissions by 2020.

12 www.burgbad.com www.burgbad.com 13 SUSTAINABLE PRODUCTS

burgbad stands for top-quality Innovation management Concepts and designs With our RL40 lighting concept, we bathroom furniture. When it comes take our cues from the functions of to the functionality of our furniture, In order for innovations to be truly burgbad concentrates on the de- daylight, which regulates the human we focus on quality, aesthetics forward-looking, they have to strike velopment of products that adapt biorhythm. The artifi cial light usually and pioneering concepts. That has a perfect balance between design, to the needs of people at different found in bathrooms works contrary brought us multiple awards from practical value and sustainability. At stages of life. The international con- to this rhythm: there is no morning or architects, designers and the media burgbad, we devote a great deal cept goes by the name of universal evening light and the night ceases in recent years – and lavish praise of attention to future scenarios. We design. Furniture with a universal to have any impact. Now, together from our customers. But that’s not all analyse developments in materials, design can be used by anybody, with Austrian research institute we defi ne ourselves by. production technology and archi- regardless of their age and personal Bartenbach, burgbad has developed tecture and link them with some of circumstances. The design does not an LED lighting system that provides We want to offer our customers the key issues we face today, such stigmatise and replaces negative all the lighting for the bathroom and products that are free of harmful as how to optimise windowless associations with positive attributes. can generate lighting moods that are substances. That’s why our entire bathrooms or how bathroom fur- typical of certain times of day or can range of furniture has been awarded nishings can be designed in such In collaboration with the Design and be individually programmed. The a Class A emissions rating. We also a way that they can adapt to the Product Management programme at lighting system is part of a mirror want the production of our products needs of older users. the University of Applied Sciences in cabinet that burgbad received the to be eco-friendly and fair. That’s Salzburg, burgbad has transferred Innovation Award Architecture + why we use raw materials from sus- burgbad always has an open ear for this holistic approach to bathroom Technology prize for in 2017. tainable sources and only work with new ideas. We invite our employees furniture. Together with a young suppliers who share our own high and customers to workshops, take designer who has meanwhile moved standards when it comes to respec- up their suggestions and put them from the university to burgbad, we ting human rights and environmental through a systematic decision-ma- developed the modular furniture concerns. king process that involves staff from system SYS 30 Flex. It is based on a various parts of the company. frame that can be manually equip- Customers often tell our sales team ped with a washbasin, mirror, pa- what they would like. These ideas nels and cabinets thanks to a special are important innovation drivers. In hanging mechanism. 2016, burgbad also conducted one- on-one interviews with consumers to The many and varied usage options fi nd out even more about their wants are the core benefi t of the product and needs. and give users the freedom to design their bathrooms to suit their tastes and needs. In 2017, SYS 30 burgbad holds three patents, six Flex was honoured with an award registered designs and fi ve utility from the Institut für Universal Design models. (IUD).

14 www.burgbad.com www.burgbad.com 15 BREAKDOWN OF RAW MATERIALS 2017 (% by weight)

Raw materials Mirrors and glass About half of our raw materials are In 2017, our mirrors were sourced 50% wood-based, followed by fi llers, mir- entirely from Europe. We do not see rors and glass and, fi nally, ceramic any risk here as regards non-com- 14% Wood-based washbasins. We believe we have a pliance with standards. We buy 85 Fillers materials special responsibility with regard to percent of the glass we use via an the sourcing and handling of these import service provider from Asia, materials. who has also signed burgbad’s Code of Conduct. In the context of Wood the National Action Plan for Business All the wood we use is sourced from and Human Rights (NAP), we will be sustainably managed forests. Our subjecting this supplier to an additio- facilities are certifi ed in line with the nal risk assessment in 2018. PEFC standard. Once a year, we undergo an external audit in this Ceramic washbasins context. At our German locations, When sourcing ceramic washba- 90 percent of the wood-based sins, we like to take advantage of products purchased are currently synergies with our parent company PEFC or FSC certifi ed, as compared Eczacibasi because we can be sure to 85 percent at our French factory. that sustainability requirements have Together with our PEFC auditor, we been observed in accordance with have defi ned minimum requirements our group-wide rules. That’s why we that the remaining suppliers have to source 94 percent of our ceramic meet with regard to the sustainability from one of our sister companies in context. Turkey.

Fillers Miscellaneous The production of mineral cast The remaining 17 percent of our washbasins calls for sand in various raw materials consist of things like grain sizes, which we use as a fi ller. fi ttings, drawers, resins and sund- Apart from water, sand is the most ries, all of which we source from consumed raw material on earth. renowned European partners. It is extracted all over the world – often under dubious conditions. Our 9% suppliers’ quarry areas are located in Germany and do not represent a Mirrors sustainability risk. and 10% glass Ceramic 17% washbasins Miscellaneous (technical fi ttings, drawers, sundries)

16 www.burgbad.com www.burgbad.com 17 RESPONSIBILITY IN EMISSIONS THE SUPPLY CHAIN AND CONSUMPTION

In late 2016, Germany’s Federal In connection with the extended The completed questionnaires form Besides wood-based materials and According to the DGM guidelines, Government implemented the United requirements of the NAP, we have the basis of the risk assessment that other raw materials, burgbad also our business activities were clima- Nations’ guiding principles in the started to sound out our entire value is scheduled to take place in 2018. needs energy in order to produce te-neutral in the fi nancial years 2016 form of the National Action Plan for chain for risks: At the same time, we are aware its furniture, resulting in correspon- and 2017. burgbad was the fi rst ba-

Business and Human Rights (NAP). that monitoring human rights issues dingly high CO2 emissions. That is throom furniture producer to achieve From 2018, companies in Germany All burgbad’s sites are located in our value chain remains a conti- precisely why we aspire to set an ex- the Gold Standard as a climate-neut- are thus required to analyse risks of in Europe and operate within the nuous, in-process responsibility. ample and are explicitly committed ral furniture manufacturer. human rights violations across their framework of existing laws. Almost to the United Nation’s two degree entire value chain, develop counter- all the upstream and downstream target. Since 2011, we have been In order to identify energy saving strategies, measure their success and suppliers in our value chain come working to lower burgbad’s overall potentials, burgbad has installed communicate transparently about the from Europe too – 85 percent of energy consumption and increase monitoring systems at all its facto- topic as a whole. This particularly them from Germany alone. We have the share of regenerative energies ries and analyses them centrally. A applies to companies with more been working with most of them for in our energy mix. We have been major energy-saving project was than 500 employees, which includes many years; they have signed up to offsetting the remaining unavoidable conducted at the Greding factory in burgbad. our Code of Conduct, and the laws emissions since 2016. 2017 and the entire lighting of the that apply in Europe are clear. We assembly hall converted to LED light burgbad has been addressing believe it is unlikely that our business Emissions sources. In Bad Fredeburg, we have the question of how sustainability could lead to human rights violations invested in a new wood-fuelled hea- can be anchored not just within in this part of the world. burgbad is a member of the German ting system, which also involved the the company itself but across the Quality Assurance Association for installation of a computer-controlled increasingly global value chain for However, in the context of our risk Furniture (DGM) and has joined heating monitor. We are expecting several years. Up until now, we assessment we do not only consider its “Climate Pact for the Furniture to see the fi rst positive effects in the have placed special emphasis on our direct suppliers but those that Industry”. Based on the applicable second quarter of 2018. We are two measures. Firstly, we cultivate we are associated with via inter- standards and the criteria defi ned by currently investigating whether it direct contact with our suppliers and mediaries as well. For suppliers of the DGM, we have been calculating makes sense to convert our French hold structured annual meetings with our biggest group of raw materials, our company’s carbon footprint as factory to wood-fuelled heating as them; sustainability-related aspects i.e. wood-based materials, we have per Scope 1, 2 and 3 since 2016. well. have been part of the agenda for been doing this in the context of these meetings since 2017. Second- our PEFC certifi cation since 2014. Scope 1 covers direct emissions We use the following energy sources ly, since 2014 we have required all In 2018, we developed a self-as- from the burning of fossil fuels at at our sites: natural gas, biomass, suppliers to comply with our Code of sessment questionnaire for all other burgbad’s sites and by its vehicle electricity, heating oil, LPG/LNG Conduct, in which we outline our ex- key suppliers and import service fl eet. Scope 2 covers indirect emis- and diesel. In 2017, renewable pectations with regard to respecting providers and conducted a survey. sions from the generation of purcha- energies accounted for 54.7 percent human rights, labour standards and Besides questions about quality and sed electricity. Scope 3 covers other of these resources. Approximately environmental protection. They are environmental concerns, it also asks indirect emissions resulting from the 29 percent was made up of biomass KLIMANEUTRALER Möbelhersteller* also obliged to require any sub-sup- about the places of origin of the value chain, as well as business air consisting of scrap wood left over Climate-neutral Furniture Manufacturer Hersteller-Nr. / manufacturer-no. K16-008 pliers to comply with this Code of goods we purchase and the produc- travel, car rentals, employee com- from production, which is used as Prüfnummer / control number 16-008-01 Conduct. tion and labour conditions there. muting, printing paper consumption, an energy source for our factories water use and wastewater, and in Greding and Bad Fredeburg. The waste sent to landfi ll or solid waste remaining 26 percent of renewable 123 disposal sites. energies are attributable to purcha- * durch / by CO2-Zertifikate / certificates

Nach den Richtlinien für den Klimaschutz sed electricity. der Deutschen Gütegemeinschaft Möbel • According to the Guidelines for Climate Protection of the DGM • . www.klimaneutral-dgm.de

18 www.burgbad.com www.burgbad.com 19 UTILISATION OF NATURAL RESOURCES (%)

According to the eco-controlling Our goal for 2018 is to determine A total of 2,061 tonnes of waste system of the Eczacibasi Group, the recycling rates for our other main were generated in 2017. Recyclable

we have been able to reduce CO2 raw materials, i.e. wood, mirrors, waste accounted for 58 percent (by emissions (kg/t of production) glass, fi llers and ceramics, so as to weight). The total amount of waste by 51.7 percent as compared to be able to make a more comprehen- (kg/t of production) was reduced by 2014. By 2020, we want to reduce sive statement about the recycling 4.9 percent in 2017 as compared these emissions by 55 percent as quota of the materials we purchase. to 2014. By 2020, our goal is to compared to 2014 and cut energy In 2018, we also want to investi- achieve a 10 percent reduction in consumption (kWh/t of production) gate whether the polystyrene we the amount of waste as compared to by 10 percent. use for packaging washbasins can 2014. be replaced with more sustainable

The conversion factors for CO2 materials.. emissions used in the group-wide eco-controlling system differ from the conversion factors used by the Energy consumption and CO2 emissions DGM. burgbad’s emission reduction targets were defi ned back in 2014

and relate to the group’s system. 2017 92.9% Since 2016, we have been calcu- lating all other emissions-related fi gures according to the rules set out 2016 99.8% in the DGM’s “Climate Pact for the Furniture Industry”. The fi gures are 2015 99.6% more detailed and more compre-

hensive. Our calculations for CO2 offsets are also based on the DGM’s 2014 100% guidelines.

Total energy consumption (kWh)/ weight produced (t) (2014=100%) Consumables and waste

We were able to reduce paper consumption by 10 percent in 2017 2017 48.3% as compared to 2015 and are ai- 2017 2016 2015 2014 ming for a 50 percent reduction by 2016 47.3% 2020. All the paper we purchase is Electricity from rene- 26% 26% 7% 7% FSC- or PEFC-certifi ed. In the course wable sources of the year, this will be the case for 2015 98.2% cardboard too. In 2017, 69 percent Electricity from non-re- 9% 7% 28% 29% of the cardboard we purchased newable sources 2014 100% consisted of recycled materials. Heating oil 6.10% 6% 5% 5%

Total CO2 emissions (kg)/weight produced (t) (2014=100%) Natural gas 29.70% 31% 29% 31%

Biomass 28.70% 30% 30% 28% www.burgbad.com 21 The values result from the eco-controlling system At one factory, the types of waste Development of waste types (t) Development of waste volume (t) were incorrectly classifi ed. The fi gu- res were corrected retroactively. 2017 867 1194 2017 95

2016 822 1057 2016 91

2015 696 1195 2015 97

2014 711 1068 2014 100

Total amount of waste Total amount of recyclable waste (t) Total amount of waste (kg) / weight produced (t) (2014=100%) disposed of (t) BREAKDOWN OF WASTE BREAKDOWN OF DISPOSED OF 2017 (% by weight) RECYCLABLE WASTE 2017 (% by weight)

21% Waste requiring special 27% 55% Wood-based supervision Cardboard 66% packaging materials Industrial / construction waste

2% 1% 2% 11% Other Glass Metal Municipal 16% Plastic solid waste

24 www.burgbad.com www.burgbad.com 25 EMPLOYEES

We are very proud to report that, At the same time, we want to keep Equal opportunity in 2017, almost one quarter of our sight of our young staff so as to en- workforce had been with our com- able a good age mix and knowled- There are two ways in which our pany for more than 25 years. We ge transfer in our teams. Our sites Bad Fredeburg site is exemplary. involve our staff in the information are located in rural areas, which In 2017, it was again certifi ed a fl ow within the company in the form many young people are leaving in “family-friendly company” by the of notices, information screens and favour of an urban lifestyle. For our Hochsauerland district, attesting to a quarterly employee magazine. We made-to-order production activities, our years of commitment to creating value their suggestions for improving we need well-qualifi ed youngsters a family-aware corporate culture. processes and products. In parti- who are happy to take responsibility. At the same time, this facility is also cular, they share their ideas with That’s why we make every possible particularly supportive of people burgbad’s innovation and sustain- effort to attract the best skilled wor- with disabilities, who accounted for ability management and therefore kers in the face of fi erce competition 7.5 percent of the workforce. make a signifi cant contribution to and increase the share of staff under our corporate strategy. Even better the age of 30. From 2015 to 2017, Women made up 30.3 percent structuring of staff-related matters we achieved a growth rate of 3.9 of burgbad’s workforce in 2017, across all locations and personal percent. accounting for 47.9 percent of development reviews based on a We are recognised as an “Excellent salaried employees, 13.4 percent of uniform standard were among the Apprenticeship Employer” by the management and 39.3 percent of important issues that emerged from chamber of industry and commerce. new recruits. In our two governing our staff survey. We began tackling We attach great importance to trai- bodies, the executive board and the these aspects in 2018. ning young people and encouraging supervisory board, women accoun- their loyalty to our company. We see ted for a total of 12.5 percent. All Training and development our apprenticeship programme as a in all, 219 women are employed by particularly valuable opportunity in burgbad. The continued development of our this respect. The share of trainees in- employees is crucial to the future via- creased from 3.4 percent in 2016 to Health bility of our company. That’s why, in 3.6 percent in 2017. burgbad trains 2016, we drew up a staff develop- industrial management assistants, IT We want to help promote our emplo- ment concept for introduction across specialists, wood mechanics, cabinet- yees’ health. That’s why we welco- all sites with the emphasis on lan- makers and technical product desig- me all sorts of sporting activity and guages, IT, expertise development, ners, as well as enabling dual study participation in the health-promoting compliance and health, in addition programmes that combine academic activities available from health to statutory training. In 2017, our studies with vocational training. insurance companies. Since 2017, staff development activities focused We have also been participating in employees at our Bad Fredeburg on specialist, management and “Girls’ Day” for years – a national facility have been able to lease e-bi- foreign language skills. day of action that aims to introduce kes in order to get some exercise on The knowledge acquired by our older girls to technical professions. Every their way to or from work. Twenty-fi - employees is a valuable asset that we year, approximately 15 young girls ve employees have meanwhile made want to retain and use. take part in this “Future Day” at bur- the switch. gbad and get a taste of the working world.

26 www.burgbad.com CODE OF CONDUCT WITH ONE ANOTHER. FOR ONE ANOTHER. OUR VALUES.

We also started offering training The Code of Conduct incorporates courses on health-related topics in the principles of ethical business for- 1. The interaction and cooperation between us is based Bad Fredeburg in 2018, and our mulated by the United Nations and on mutual respect and tolerance. Greding site holds gym classes for supplements them with issues that interested members of staff. Some of are of particular importance to us. our employees regularly form a bur- gbad team for the Challenge Roth At the same time, business processes 2. 3. in Bavaria, one of the most famous are often so complex that the desire Our rules govern our dealings with one another – We respect the personality and cultural backg- triathlon events in the world. to act properly alone is not enough. it is therefore indispensable for us to comply with round of each and every individual and do not In particular, employees at crucial all agreements, conditions and laws. allow room for any form of discrimination. Occupational health and safety are interfaces need additional guide- of the utmost importance to burg- lines. That’s why, in 2016, burgbad bad. We sensitise our managers AG held a comprehensive complian- and forepeople to the need to set an ce training course entitled Antitrust 4. 5. example when it comes to safety – Law and Corruption Prevention for We actively practice a responsible approach to A clean, healthy working environment is important day in, day out. We document and the sales division. For 2018, we are our environment and natural resources – every for all of us and the work we do: that is why each evaluate every type of accident on a planning a corresponding course single day. and every one of us contributes to it. monthly basis. Accidents are also di- for our buying and customer service scussed at the quarterly meetings of divisions, as well as the entire sales the occupational health and safety team again. We will hold a separa- committees. In 2016 and 2017, no te, country-specifi c training course in 6. 7. Our dealings with our business partners are accidents resulting in lasting health France. Because we respect our environment, nature and its resources, we avoid any kind of waste in our based on appreciation, respect and fairness – impacts occurred. because that is the only way for us to grow and everyday work. burgbad is explicitly committed to succeed together. Shared values the core labour standards of the International Labour Organization burgbad is a community of shared (ILO). The staff at our sites is repre- values. In 2016, on the initiative of sented by works councils with whom 8. 9. the sustainability team, the values burgbad enjoys a trusting relati- As a manufacturing company that has been We put our hearts and minds into whatever we do. upheld in the company were set onship. Major issues are settled in headquartered in the area for many years, we are Each and every one of us takes responsibility for our own actions. down in a code of conduct and internal agreements. For burgbad, it aware of our responsibility for our region – and widely communicated. goes without saying that employees’ contribute by acting on our social commitment in rights are inviolable. Through our many and varied ways. Code of Conduct, we also place our suppliers under an obligation to 10. uphold employees’ rights and em- We at burgbad are committed to this Code of Conduct and all its values, bed them in their own supply chain. positions and rules – and embrace it accordingly. That goes for every individual. And for all of us together. Every single day.

28 www.burgbad.com www.burgbad.com 29 SOCIAL RESPONSIBILITY

As a medium-sized company, we seriously ill colleague, for the langu- The race was initiated by a former and trainee positions of help – from In the case of a young man from We look forward to a long and support charitable initiatives and age development school in Offen- burgbad employee in 2015 and is introductory training placements, Guinea, we were able to obtain successful working relationship and associations in the areas where our bau and for the residential home for held every year. internships and trainee positions a work permit and enter into an hope our three colleagues soon feel sites are located, and many of our disabled children and young adults In 2015 the plight of refugees beca- all the way to practical support with employment contract with him. And completely at home in our region. employees are active as volunteers. in Gersdorf. me the focus of the German public’s learning German or coping with every- at our Greding factory, we’re able We support the youth work of the More than 30 members of staff took attention. day situations. to offer job prospects to a young TV Fredeburg sports club and the part in the One World Run in Titting man from Ethiopia who has been in Grafschaft Mountain Bike Days – a to raise money for an aid project in Together with 200 other companies, burgbad is actively engaged in Germany since 2013 and a 36-ye- huge event in the region. In 2016 India. burgbad has been part of the “Us these activities. That would not be ar-old man from Syria who came to and 2017, the workforce in Greding Together” network for people who possible without the great commit- Germany in 2014. raised money for a have been forced to fl ee their own ment of the employees who mentor countries since 2016. Together, the the new arrivals. Together, we have member companies provide all sorts been able to offer fi ve young refu- of help – from introductory training gees internships in Bad Fredeburg. placements, internships We’re especially delighted that we have been able to employ three displaced people on permanent contracts. www.burgbad.com