01 GLOBAL CORPORATE Sustainability Report 2015 full year edition Rawlplug Global Corporate Sustainability Report 2016 02 Contents 03 INTRODUCTION TO RAWLPLUG 03 Foreword 04 Rawlplug - The Brands 06 Rawlplug - Today 07 THE SUSTAINABLE RAWLPLUG MISSION 09 THE FOUR PILLARS OF SUSTAINABLE RAWLPLUG 10 Governance 26 CSR 48 Environment 65 Supply Chain 90 RAWLPLUG GROUP 93 PLANS FOR THE FUTURE 102 SUSTAINABLE RAWLPLUG - THE PEOPLE Rawlplug Global Corporate Sustainability Report 2016 03 FOREWORD Welcome to the updated 2015 edition of the Rawlplug Sustainability Report. Previously the report presented figures and details of activities relating to the full year 2014 and the first half of 2015 only. We are now in a position to provide figures and information on activities for the whole of 2015. Sustainability continues to be central to our vision and to the future of Rawlplug. Through the publication of this report, Rawlplug seeks to regularly reaffirm its commitment to sustainability and to the promotion of sustainable and universally beneficial practices across each and every division and department of the organisation. From the moment my professional career began, my goal has been to build and nurture organisations which can grow and thrive in a way that is both sustainable and profitable. Experience has taught me that careers cannot flourish, and organisations are unable to prosper over time without an underlying commitment to positive and sustainable practices. I strongly believe that a truly sustainable company must: § Be governed in a way that is transparent and open, but also fair and beneficial to each of its stakeholders. § Actively and positively contribute to the community that it occupies. § Be respectful of the natural environment. § Strive for innovation across all points in the supply chain. It is this set of principles which drives our collective vision of a Sustainable Rawlplug. Following our acquisition of the enduringly successful and globally recognised Rawlplug brand our vision of the commitment required to operate and to grow as a sustainable organisation is now stronger and clearer than ever. This can be seen in every acquisition and investment we make, every new product we develop, and every new employee we hire. This commitment is evident on every page of the Rawlplug Sustainability Report 2015 and I look forward to reporting back to you with further positive updates in future editions of this report! Thank you in advance for taking the time to read this publication. Yours sincerely, Radosław Koelner CEO, Rawlplug Rawlplug Global Corporate Sustainability Report 2016 04 RAWLPLUG GROUP The brands The Rawlplug Group, typically referred to as simply ‘Rawlplug’, comprises nineteen subsidiaries. Located across fifteen different countries, these companies are responsible for the design, development, production, sale, installation and service of products belonging to four key brands. EST. 1919 The Rawlplug brand was created in 1919, a few years after its founder, John Rawling, had invented and patented the first plug for walls – a product that revolutionised fastening techniques at that time. Innovation, reliability and proven solutions in fastening techniques have made Rawlplug the choice of professionals for almost 100 years. Since being taken over by Koelner in 2005, the brand continues to be recognised in its own right – today, Rawlplug-branded products are used in construction, heavy industry and the automotive industry and the brand name continues to be synonymous with dependability, high-quality and innovation. John Rawling, Rawlplug co-founder World’s first expansion plug patent Rawlplug Global Corporate Sustainability Report 2016 05 EST. 1921 The Globus brand has been on the market for over 90 years and is synonymous with high-quality tools that are used for wood, metal and construction. Recognised as a market leader in Poland, and with a portfolio containing over 2,000 products, the Globus brand was acquired by Koelner (later Rawlplug) in 2004. Produced in Poland, Globus products continue to be synonymous with quality and have a faithful and loyal following in the region and beyond. EST. 1982 Koelner is a brand of construction fixings that is synonymous with high-quality solutions in fastening techniques that are dedicated to Trade & DIY. Koelner produces facade insulation fixings, self-drilling screws, timber connectors, and plaster board fixings. After becoming a household name on the central European market, the Koelner brand has since gone on to achieve high recognition levels in key markets such as Poland, Czech Republic, Slovakia, Lithuania, Ukraine and Russia. EST. 1991 Present and popular in Poland, Hungary, Lithuania, Czech Republic and Slovakia for more than twenty years, the Modeco brand is now one of the best-recognised brands for tools in the region. The Modeco brand occupies a position in the market between premium products and budget-priced competition from the Far East. By branching out with its Modeco Expert line, Modeco has established itself as a trusted provider of hand tools, and one that intimately understands the different needs and expectations of a broad and varied group of end users. Rawlplug Global Corporate Sustainability Report 2016 06 RAWLPLUG Today 2001 W 100 O EMPLOYEES R K I N DIVISIONS G 1 ACROSS LOCA 15 COUNTRIES R&D ANDS Production Logistics WORKING Sales THA 200 GOVERNANCE CSR AGE ADITION SUPPL ENVIRONMENT SUSTAINABLE RAWLPL 07 RAWLPLUG’S Sustainability Mission As the Rawlplug Group has grown, and as it becomes more diverse – both in terms of products and brands, and also people and geography – we recognise the importance of a single guiding vision on sustainability. Trust & Innovation The Rawlplug brand has been built on the message of Trust & Innovation. The products we manufacture are used to secure walls, to make building safe, to ensure vehicles function correctly, and many other important functions. Needless to say, it is essential that our clients and end users trust us. We would not be able to stand before you today as a market- Our clients and leading international company if this were not the case. end users trust The same is true of innovation – Rawlplug operates our products in industries that are fast-moving and dominated by and our brands. companies that invest heavily in the development of new products and services. Rawlplug has two brands that have been in existence for almost one hundred years. Brands do not survive to be almost a century old without learning how to evolve and innovate to stay ahead of the curve. So how does Trust & Innovation fit with our view on sustainability? Trust & Innovation is complementary to our view on sustainability. In fact, the two are intertwined. As Rawlplug expands its presence in existing markets and branches out into new ones, it is important that we secure the trust of our employees and their communities. As a responsible corporate citizen, we recognise our responsibilities to these communities and to the natural environment that surrounds us. We cannot build such relationships without trust. The same is true of our approach to governance – we are a global company, one that has many stakeholders and shareholders. We cannot operate successfully without trust, which is why we go beyond our legislative and compliance requirements to be transparent and open in the way we do business. And, of course, we cannot transform into a truly sustainable group of companies by doing everything the same way we always have. We need to innovate; innovate in the way we design, produce and deliver products; innovate in the way we inspire and look after our people; innovate in recruitment; and innovate by developing new business models. Rawlplug Global Corporate Sustainability Report 2016 08 Our Four Pillars of Sustainability WE GOVERN IN A WAY THAT IS TRANSPARENT AND OPEN, BUT ALSO FAIR AND BENEFICIAL TO ALL OF OUR GOVERNANCE INTERNAL AND EXTERNAL STAKEHOLDERS. WE ACTIVELY AND CSR POSITIVELY CONTRIBUTE TO THE COMMUNITIES THAT WE INHABIT. WE ARE RESPECTFUL OF THE NATURAL ENVIRONMENT IN OUR OWN OPERATIONS AND DESIGN AND DEVELOP PRODUCTS THAT HELP OUR ENVIRONMENT CLIENTS IMPROVE THEIR OWN ENVIRONMENTAL CREDENTIALS. WE STRIVE TO INNOVATE AND IMPLEMENT SUPPLY CHAIN SUSTAINABLE PRACTICES ACROSS ALL ASPECTS OF THE SUPPLY CHAIN. 09 THE FOUR PILLARS of a Sustainable Rawlplug The Sustainable Rawlplug vision is brought to life through our actions in four key areas: Governance Corporate Social Responsibility (CSR) As an international, market- leading company we understand Healthy communities are healthy how important Governance is to places to do business. We believe both our day-to-day operations that the well-being of our people and our strategic business and the communities they belong decisions. Only through effective to is inextricably linked to the long- governance can we remain united term health of the Rawlplug group and aligned on delivering the and the brands we represent. vision of a Sustainable Rawlplug. Environment Supply Chain As a group of companies that To be successful in an increasingly is active in construction, heavy competitive, globalised economy – industry and the automotive an economy that places increasing industry, we recognise the value on the sustainability of goods potential environmental impact and services sold – we need a of our operations and the healthy eco-system of like-minded products we manufacture, and suppliers and logistics partners, have incorporated environmental and an efficiently designed