A goal of the BWT-Sustainability-Initiative is to embed consciousness of the responsibility for our resources, the environment, our employees, customers and the society in daily, entrepreneurial acting. In 2010, the BWT Group took further steps in the realisation and enhancement of our measures. Within the framework of the company-wide implementation of the Sustainability-Reporting in the Management-Information-System (MIS) on the basis of the reporting standard of the Global Reporting Initiative (GRI) the data quality was increased considerably and a practicable monitoring instrument for the management was utilised. Again progress could be obtained in the individual stakeholder responsibilities, as explained below.
Customers
Our customers include wholesalers, installers, architects, planners and a large number of businesses and industrial companies from virtually all branches of industry as well as municipalities (e.g. hospitals), who are served by our local branches, sales centres and service staff. Regarding Point of Use operations, end consumers and retailers acting as our agents are playing an increasing role. We generate 96 % of our sales with customers in Europe. Apart from introducing of new products, our business in 2010 concentrated on expanding our partner (“drinking water professionals”) network, training and improving quality management.
Quality assurance applies to, on the one hand, our products (eg the continuous certification of new products in accordance with established standards such as DVGW and ÖVGW), and, on the other hand, our modern production facilities, some of them new. At our largest production sites, we have implemented quality management systems according to ISO 9001. On the customer side, by introducing Customer Relationship Management (CRM) Systems and new Document and Service Management Systems to our branches in France and Germany, and through our customer service and internal efficiency, we have reduced our carbon footprint (particularly with regard to paper consumption and route planning).
Our Point of Use strategy in 2010 concentrated in particular on expanding the Point of Use product portfolio, surveying customer requirements and developing market strategy. We regard the dynamic development of the end consumer market, with its rapidly-changing trends and designs, as an opportunity and as a challenge. The patenting of our magnesium Mg2+ technology was a major milestone representing a unique customer advantage. Thanks to this base technology in ion exchange, the customer experiences a much better flavour of his drinking water, and therefore his hot beverages (coffee and tea) as well. The modern new Point of Use production at the Company’s headquarters in Austria adheres to the highest quality and environmental standards. Following an inspection by an independent auditor at the end of 2009/beginning of 2010, new certificates in accordance with DIN EN ISO 9001:2008 and DIN EN ISO 14001:2008 were awarded. The certificates cover all process-relevant areas, from research and development; via acquisitions and logistics; all the way to quality and environmental management and controlling.
Employees
The shallow hierarchical structure and locally-based organization of the BWT Group permits direct dialoguewith employees. Over 50 employees in the Group serve as workers’ representatives on workplace councils. As has been the case since the founding of BWT, there were no strikes or labour disputes in 2010. The focal points of employee dialogue are the annual development talks and research into employee satisfaction, involving about 50 % of employees each year. Despite the positive developments, they disclose further potential for improvement.
Education, vocational training, further training and work health and safety are major accents in employee development. Some 50 % of our employees have attended internal or external training schemes in 2010. Our 50 trainees are employed mainly in Austria, Germany, France and Switzerland. Usually, over 90 % of them are hired once they have completed their training. All in all, 11 % of employees have completed apprenticeships. We also compile company-wide data on sick leave, accidents at work and employee fluctuation. They disclose positive trends, but also pinpoint tasks for the current year. All our sites offer voluntary social benefits to varying degrees, and include gendering measures (flexible working hours, additional benefits).
The group-wide Code of Conduct has been revised. It covers labour conditions and social standards (relating to SA 8000), as well as prohibition of bribery. The regulations are implemented at local level, and are the responsibility of middle management within the framework of the compliance organization. A comprehensive handbook on management includes all the regulations applicable to BWT for the benefit of the group’s management.
Suppliers
An adherence to BWT sustainability principles is to be safeguarded in the entire value added chain. The appraisal of suppliers is based on sustainable dialogue and partnership, and helps them improve their performance even further. Procurements are carried out through a centrally-coordinated Group procurement mechanism on the one hand and, at local or regional level, by the procurement departments of local Group companies on the other hand. The procurement conditions also include ethical and environmental standards. They include a ban on child labour, discrimination and corruption, as well as environmental compliance, particularly with regard to packaging. A system of regular audits of suppliers is being developed.
Environment
In the Point of Use segment, a quality and environmental management system was introduced and successfully certified (according to ISO 9001 and ISO 14001) at the end of 2009/beginning of 2010. As part of environmental management, BWT has set itself the goal of constantly reducing energy consumption and waste by, among other things, introducing re-usable packaging and intensively optimizing logistics, thus reducing the consumption of resources.
Metals and plastics account for three-quarters of the materials acquired by our initial suppliers. Metal is usually built into equipment as moulded parts. They are subsequently used in fittings. Some 65 % of the brass we acquire is recycled. Remaining new materials come only from EU sources. Plastics are used for housing, construction elements etc. Some 10 % of materials relate to packaging.
The BWT Group’s energy consumption is about 47 GWh, of which about 20 % goes on heating, 19 % on electricity and over 60 % on fuels. CO2 emissions are primarily caused by the company’s feet of vehicles, while the rest mainly come from heating buildings. Proximity to customers means that our employees have to make an intense use of vehicles for the purpose of sales and service. According to preliminary figures, about 9,590 tons of direct and 3,710 tons of indirect CO2 emissions were produced in 2010. Pharma & Biotech and BWT UK were included in the consolidated financial statements for the first time. As a result of the expansion of service activities and the consolidation effects of acquisitions, a further increase is foreseeable which, however, should be limited by the acquisition of more economical vehicles and newer engine generations.
According to preliminary figures, 2,380 tons of waste were produced in 2010. Paper and cardboard accounted for almost one third of this. All our large sites have concluded contracts with recycling and waste processing firms so that used materials may be collected and disposed of professionally. Used materials are segregated into paper/cardboard, valuable materials (inkling foil), wood, metal and old appliances (from customers), and removed. The metal shavings that accumulate during production are given to a metal processing company. Old oils and lubricants are also collected by a certified waste disposal company. We have gained climate certificates worth 150 tons in return for the recycling of waste packaging.
In the products sphere, for many years BWT has been using the most modern water technology processes not only representing state-of-the-art technology, but also setting new standards. Many of our products are made with this new technology, guaranteeing a longer life and higher capacity. Backwash filters, water softening facilities, AQA total, UV and zone disinfection plants, membrane systems and complete installations, as well as the heating protection programme, are just some examples. The OSMOTRON PRO pharmaceutical water purification plant, which received a prize for innovation in 2010, achieves a record water utilisation of 90 % and, with the aid of the Ecosalt technology, saves up to 30 % salt and waste water.
Society
The highly positive product effects of the BWT product portfolio and the topics of hygiene, safety, health and water enjoy a high level of awareness in society. In many locations, BWT is a major regional employer. About 90 % of the Group’s companies are led by local managements. On average, two-thirds of our purchases are made locally in countries where we have our business.
In 2010, the BWT Group paid about 27 % (previous year: 24 %) of its earnings in taxes (€ 8.4 million). In addition, other taxes and charges came to € 2.5 million (previous year: € 3.0 million), and social security contributions came to € 27.7 million (previous year: € 24.5 million). As has been the case for many years, relief projects were also carried out in 2010, which included financial donations and involved the personal dedication and commitment of BWT employees to projects in the developing countries and to employees and other people in need in the region.
Investors and Banks
We refer readers to the chapter “Management Report” and to the Appendix, as well as to the section “The
Share and Investor Relations.”