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REHAU GROUP

2011/2012

SUSTAINABILITYREPORT

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TABLE OF CONTENTS

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Report profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sustainability goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1 . Strategy and management . . . . . . . . . .6 Company profile / Corporate strategy Sustainability strategy

2 . Product responsibility . . . . . . . . . . . . . 16 Innovation at REHAU Customer needs – Automotive Customer needs – Furniture Customer needs – Construction

3 . Ecological responsibility . . . . . . . . . . . 24 Environmental performance / Flagship projects Information technology / Sustainable procurement

4 . Social responsibility . . . . . . . . . . . . . .32 Workforce / Challenges in personnel policy / Health and safety / Training and advanced training / Work and family / Idea management / Social commitment

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EDITORIAL

ON THE RIGHT TRACKSUSTAINABILITY AS OPPORTUNITY

Dear readers,

As an independent privately held company, we think in terms of generations . Proactive, responsible action has always been an inte-gral part of our corporate culture . Today’s dynamic business environ-ment – encompassing everything from climate change to the rapid increase of the world’s population to the increasing scarcity of natu-ral resources – presents us with considerable challenges . The key to meeting these challenges and to leading REHAU towards a successful future is sustainability .

Sustainability is no longer just an environmental issue, or a concern for employees or society, it also plays a key role in economic development . Therefore, we take a critical and constructive approach to all areas of sustainability . How are new markets such as those in Asia or South America developing? How can we open up the market potential in the fields of energy efficiency and renewable energy? What technologies and solutions will meet the high ecological, economic and social needs of our customers? These questions are part of a dialogue between REHAU and its customers, partners, employees and numerous other interested parties, while guiding our entrepreneurial and partnership activities .

Reflecting on our actions is just as important to us as looking ahead . Therefore, we would like this report to serve as an overview of our activities in the areas of environmental protection, employee welfare and social commitment . For the first time, we are documenting what aspects of sustainability move us, what we have achieved and what goals we have set ourselves for the future .

We view this first sustainability report by REHAU as a significant step towards making our activities transparent and allowing ourselves to be judged on specific requirements . We are convinced that a company-wide common will to act is the foundation for the consistent imple-mentation of our intentions and the continual improvement of our performance . Every single employee is responsible for, and contributes together with our business partners towards achieving and the further development of sustainability .

Jobst Wagner Dr . Veit WagnerPresident of the REHAU Group Vice President of the REHAU Group

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SUSTAINABILITY NEEDS TRANSPARENCYREPORT PROFILE

This first REHAU Group sustainability report discusses the company’s activities in the years 2011 and 2012 . We plan to continue to put to-gether a sustainability report in this format covering a two-year period . The themes and figures presented are based on guidelines laid out by the Global Reporting Initiative (GRI) . In this report, we will focus on environmental and social aspects .

The content of this report pertains to the REHAU Group . Given its turno-ver and number of employees, REHAU AG + Co is the focus of this report and will be referred to as REHAU Germany . However, the report also covers all associated subsidiaries, which fall within the scope of responsibility of the Group Executive Board . As a manufacturing com-pany, we refer in our treatment of all ecological indicators exclusively to the REHAU production sites, unless otherwise indicated . The plant in Santiago de Chile was not yet taken into consideration .

The data presented is primarily based on internal surveys . Selected topics have been validated by independent external auditors . These include figures relating to safety, health and environmental indicators, such as energy consumption and emissions . The defined objectives have been set within the framework of current legal premisses and political conditions .

IMPRINT

Availability

The report is published in German and English and is available

for download as an e-book on the website www .rehau .de .

Gender-neutral formulation

This report refrains from using gender-specific distinctions in

order to enhance readability .

Publisher

REHAU AG + Co, Otto-Hahn-Str . 2, 95111 Rehau,

sustainability@rehau .com

Project Management and Sustainability Officer

Lydia Haupt, Corporate Communications,

lydia .haupt@rehau .com

Editorial Team

Sustainability Steering Committee – Dr . Stefan Girschik,

Alexander Friton, Klaus Gollwitzer, Lydia Haupt, Mirjam Schulz,

Richard Hückel, Dr . Martin Watzlawek, Thorsten Zwenzner

Text

Katy Hahn, Lydia Haupt, Tanja Heinlein,

Service Plan Corporate Reputation

Photography

REHAU AG + Co, Thomas Leichsenring, Christian Grund

(p . 3, 6, 21, 36), Alain Bucher (p . 13), tvision GmbH (p . 41)

Design

Veit Larisch

Print

Mayr Miesbach GmbH, Am Windfeld 15, 83714 Miesbach

Topics Objective Status 2012 Page

ENVIRONMENTALLY FRIENDLY PRODUCTS AND SOLUTIONS

Focus on environmentally friendly product portfolio

Compile an environmentally friendly product portfolio focusing on the energy- and resource-saving as-pects of the entire product life cycle by 2016

Develop a strategy through an interdisciplinary task force

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RESOURCE EFFICIENCY

Reduce primary energy consump-tion per ton of output

- 30 % by 2020 based on 2009 figures - 6 .8 % 25

Reduce CO₂ emissions per ton of output

- 25 % by 2020 based on 2009 figures - 5 % 26

Reduce water consumption per ton of output

- 40 % by 2020 based on 2009 figures - 17 .6 % 26

Reduce waste generation per ton of output (Central Europe)

- 2 % annually 12% increase in the volume of waste compared to the previous year due to increased vertical range of manufacture .

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EMPLOYEE SATISFACTION

Health and safety: Vision Zero Reduce accidents through improved induction and training schemes in the plants .

Slight increase of the accident rate to 4 .0 of reportable accidents per 1 million hours worked with > 3 calendar days’ absence

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Health management improvements Create a Group-wide health management plan by 2014 .

In progress 35

Promote employability of older employees

Create a plan and measures by 2014 In progress 33

Increase employee satisfaction Conduct the Great Place to Work employee survey in 2014 (worldwide); implement 360-degree feedback up to middle management level (Germany)

Introduce 360-degree feedback across senior management level; carry out first feedback training in Germany

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LONG-TERM CORPOR ATE POLICY

Supplier management: firmly establish sustainability requirements in relations with business partners

Supplier Code of Conduct: 100% of our suppliers of production materials, capital goods and transport services will pledge to comply with REHAU’s sustain-ability principles by 2015 .

The Supplier Code of Conduct was created and initial feedback on the dialogue with individual customers was gathered .

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Further establish Compliance within the company

Implement e-learning programs on anti-corruption and REHAU’s Rules & Procedures by 2014

E-learning platform was introduced; the first compliance-relevant training of 3,918 employees in Germany was carried out successfully (document retention policy, know-how protection, cartel law) .

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OBJECTIVESWINNING TRUST THROUGH PERFORMANCE

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1. STRATEGY AND MANAGEMENT

Several thousand bumpers leave the Port Elizabeth plant in South Africa every day. Just in time, they find their way to the assembly lines of major local car manufacturers. The production is precision work. With over 40 plants, REHAU operates globally – and always in close proximity to its customers.

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STRATEGY AND MANAGEMENT

WHO WE AREPRESENTING THE REHAU GROUP

REHAU is internationally recognized for its ingenuity, its passion for technology and its adept handling of polymeric materials . In 2012, a total of 17,460 employees in more than 170 locations in over 50 countries around the world worked hard to ensure the success of the REHAU Group . The claim “Unlimited Polymer Solutions” stands for genuine passion and the ambition to challenge the boundaries of polymer-based solutions every day . These qualities have enabled the privately held company to grow steadily since its founding in 1948 . In the fiscal year 2012, REHAU had an annual turnover of circa €2 .8 billion .

BUSINESS DIV ISIONSOur core competencies lie in construction, the automotive sector and industry . In these areas, REHAU consistently takes on the complex ecological, social and economic challenges of our time . Cars must be lighter, buildings more energy efficient, living and working environ-ments more flexible . At the same time, resources and habitats are diminishing and increasing urbanization and globalization raises new mobility questions . Working (time) models are changing and the desire for individuality requires intelligent solutions .

CONSTRUCTION The CONSTRUCTION division focuses on innovative system solu-tions in the fields of energy efficiency, water management, infrastruc-ture and renewable energy . We aim to set new standards in terms of ecology, economy, design and functionality, security and comfort . REHAU is committed to sustainable construction and renovation – in both commercial and private construction projects . With a variety of products, we are already doing a lot to ensure energy is used as effi-ciently as possible . For example, windows and doors made with REHAU profiles significantly minimize energy losses, and REHAU’s innovative subsurface heating and cooling systems as well as its concrete core tempering ensure the highest levels of energy efficiency .

AUTOMOTIVE The AUTOMOTIVE division is a reliable and innovative development partner for all major national and international car manufacturers . Every third vehicle produced in Europe is equipped with REHAU system solu-tions . For example, bumpers, water and air distribution systems as well as sealing systems . The challenges we face in product development are not only centered on aspects of safety, but increasingly on lightweight construction . The reduction of CO₂ emissions is increasingly becoming the focus of attention for the automotive industry . As a business division driven by innovation, REHAU Automotive is actively engaged in the field of alternative drive concepts and new approaches to mobility .

INDUSTRYThe dynamics of urbanization continue unabated worldwide . The INDUSTRY division develops innovative furnishing and design concepts for future living and working environments . We combine function with design and develop ideas to make indoor and outdoor areas attrac-tive . Our polymeric system solutions are used primarily in the furniture industry . Together with laser edgebands, REHAU offers high-quality solutions for the manufacture of furniture fronts, e .g . for targeted sound absorption . Moreover, REHAU also develops high-tech hose systems which are widely used in industry and typically exposed to extreme load requirements, such as those common to the construction of wind turbines .

Energy ef f ic iency

Being independent as a privately held company positioning as innovative solution provider leading position in mature

markets above-average growth in emerging markets

Watermanagement

Renewableenergy

Futuremobil i t y

L iv ing and work-ing enviroments

THE WORLD IN 8 REGIONS

GROUP EXECUTIVE BOARD

SUPERVISORY BOARD

CONSTRUCTION AUTOMOTIVE INDUSTRY

Megatrends

Regions

Group Executive Board

Supervisory Board

Business Divisions

MAIN TOPICS AND BUSINESS OBJECTIVES

STRUCTURE (MATRIX ORGANIZ ATION)

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STRUCTUREThe REHAU Group is managed by the Group Executive Board (GEB), overseen by the Supervisory Board in Muri, Switzerland . The respons-ibility for the Supervisory Board lies with Jobst Wagner (President) and Dr Veit Wagner (Vice President), the sons of the company’s founder Helmut Wagner . The Supervisory Board is responsible for the over-all supervision of the REHAU Group and its strategic development . In order to cater to the respective market developments around the globe

and respond flexibly, REHAU is divided into eight regions . The Regional Executive Board reports directly to the Group Executive Board . Today, REHAU is a multi-sector specialist: In addition to its geographical divi-sions, REHAU is also divided into three business divisions – construc-tion, automotive and industry . The corporate structure therefore follows a classical matrix organization .

The REHAU corporate structure

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CORPOR ATE STR ATEGY Responsible action is what distinguishes REHAU . Creative ideas, innovative solutions and long-standing relationships with employees and customers drive us forward . Based on our extensive, long-term industry knowledge and in view of the ecological and economic chal-lenges of our time, we decided in 2011 to focus increasingly on five strategic issues for the future: energy efficiency, renewable energy, water management, mobility, and living and working environments .

REHAU’s product portfolio includes solutions that enable our custom-ers to reduce negative impacts on the environment or even avoid them altogether . Since we want to put an even stronger focus on sustainabil-ity, we are currently defining a portfolio that will focus on the energy- and resource-saving contribution throughout the entire product life cycle, from production to use, and finally, disposal . The climatic and environmental benefits are closely linked with economic benefits – because only those who act sustainably today can operate successfully tomorrow .

ENERGY EFFICIENCY Cities account for around 70 percent of global CO₂ emissions .

To meet the ambitious climate protection targets of industrialized coun-tries, we must initiate changes specifically in this area . An important aspect is the more efficient use of energy in buildings . With its system solutions, REHAU is making valuable contributions towards reducing energy losses and establishing a more efficient use of energy . These include, for example, window, door and facade systems that contrib-ute greatly to the minimization of energy losses . Furthermore, REHAU offers innovative solutions for subsurface heating, cooling and concrete core tempering systems .

WATER MANAGEMENT Even today, more than 800 million people do not have access

to clean drinking water – with an increasing tendency . Therefore, the conscious handling and use of water is very important . REHAU’s system solutions cover the complete water cycle: from the source to extraction to the subsequent recirculation of wastewater for recycling, including systems for drinking water, stormwater management, groundwater protection through reliable wastewater disposal as well as solutions for wastewater disposal and treatment .

RENEWABLE ENERGY The finiteness of natural resources is causing energy prices

to rise and forcing people to rethink . Solar, geothermal and biomass energy sources are the future . For many years, REHAU has been focusing on advanced solutions in these areas . Systems for biomass plants, geothermal systems for heating and cooling with ground-source heat as well as upstream ground-air heat exchangers to reduce energy consumption during air treatment are all examples of synchro-nized system components which draw heat and power from renewable sources .

FUTURE MOBILIT YThe rapid growth of the world’s population and the problem of

increasing CO₂ emissions are changing the mobile world . Increasing traffic and air pollution present huge challenges – that is not just in megacities of more than ten million inhabitants . As part of its future-oriented mobility plans, REHAU has developed – among other things – alternative propulsion technologies based on fuel cells or electric mobility and new composite materials and manufacturing processes that make cars and airplanes lighter and safer . By developing complex lightweight polymer systems that meet the highest standards of design and safety, REHAU is already stepping into the future .

LIV ING AND WORKING ENVIRONMENTS Around the globe, from Moscow to London, from Copenhagen

to Hong Kong, attractive living and work spaces are becoming ever scarcer and more expensive . This development requires innovative furnishing and design concepts . Here, too, REHAU is making a variety of contributions: We are focusing on linking global trends and individual requirements, on the integration of function and design, on the attrac-tive design of in- and outdoor areas as well as on the fusion of living and working environments .

PLAN SENSIBLY. ACT PROPERLY.STRATEGIES FOR A SUSTAINABLE FUTURE

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1 Systems for the production / use of biogas2 District heating networks of CHP / biogas plants3 Use of geothermal energy through tunnels4 Safe conduction of electric current5 Systems for wind turbines6 Use of ground-source heat from geothermics7 Ground-air heat exchangers8 Systems for electric mobility9 Hydrogen tanks in vehicles10 Safe conduction / distribution of hydrogen11 Seasonal heat storage

Conduction of heatConduction of electricityConduction of hydrogen

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8

910

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Conduction of heatConduction of electricityConduction of hydrogen

RENEWABLE ENERGY IS INEXHAUSTIBLEIts potential is tens of thousands of times higher than the world’s current energy needs . Whether it is geothermal energy and environ-mental heat or combined heat and power for the simultaneous generat-ion of electricity and heat using biogas combustion – the possibilities are manifold . REHAU plans to exploit this potential and has defined the use of renewable energies as one of its five strategic issues for the future . With our products, we offer our customers the ability to gener-

ate electricity from renewable energy sources and reduce their energy consumption . As a future-oriented company, we see it as our duty to play a leading role in environmental awareness . So, we are starting with ourselves: Our aim is to use REHAU products and solutions in the company’s buildings wherever possible and wherever it makes sense .

Two examples can be found on page 28 .

COMPLIANCEAt REHAU we all pull together . From day one, each of our employees formally agrees to comply with all applicable laws, internal regulat-ions and the Code of Conduct . Clear guidelines – the REHAU Rules & Procedures – provide transparency and make it easy for our employees to know in every situation how to behave in compliance with the rules . The Chief Financial Officer bears the overall responsibility for issues of compliance .

Monitoring is good, but awareness is better . Training sessions together with ongoing exchanges with line managers raise employee’s aware-ness of compliance issues . Since 2012, REHAU has also offered special, and in part, mandatory e-learning programs for various fields of application . In the coming years, we want to develop and implement further e-learning programs; for example, in 2014 we plan to cover topics as anti-corruption and REHAU’s Rules & Procedures .

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GROWTH AND COMPETIT IVE ADVANTAGE Our success is built on a strong foundation: a consistent growth strategy that we have been pursuing since our founding in 1948 . Three elements are an essential part of this strategy: the continuous improvement of efficiency, a strong financial profile and high-performing employees . We will be able to develop sustainable, high-performance products and system solutions only if we ensure these elements are realized in the long run .

Since the company’s inception, one principle has always character-ized our business activities: independence . A high equity ratio of more than 50 percent constitutes a mainstay of our business policy . Our investments in healthy growth and sustainable innovations are carefully deliberated and continuously evaluated . Both our employees and busi-ness partners benefit from this . Thus, being independent also means being able to weigh risks and dependencies responsibly .

In the future, REHAU plans to grow even more internationally – and in particular to take advantage of the opportunities in the Asian and South American markets . Local production sites, such as those in Taicang (China), Pune (India) and Sao Paulo (Brazil) allow us to respond to customer needs quickly and in line with market requirements . In order to strengthen our market position in these countries further, we will continue to particulary invest in these REHAU locations during the next years . Additionally, we will be able to apply the insights we have gained there to our core markets .

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Dr Girschik, why does sustainability play such an important role at REHAU? What has always been our driving force is energy-efficient production methods and the development of efficient products and solutions for our customers . But the impact on climate and the environment is only one aspect of sustainability . What we lacked up until now was the holistic approach . We realized that all relevant economic, ecological and social responsibility issues needed to be merged – because only then can sustainable development become a strategic objective of company policy .

As Chair of the Sustainability Steering Committee, what tasks were and still are on the agenda?To do justice to the complexity of the issues at the company, the committee is made up of employees from different functional areas . The first task was to define a set of REHAU sustainability principles: long-term corporate policies, products and solutions that help our customers conserve resources, efficient production processes and the responsibility to employees and society . Each point is discussed with the executive in charge and goals are set . The entire organization is involved because we can only be successful if everyone is on board .

What have you achieved in the past two years? We have laid a solid foundation and developed a strategy . We have dealt intensively with the relevant fields of activity, their influences as well as their risks, and on this basis, we have been able to identify and prioritize key issues . Tackling everything at once is simply impossible . Since many topics are very dynamic and complex, it requires

continuous communication with our internal and external stakeholders . We work closely with established work groups within our company . Because of this, we have also been able to involve our suppliers in our sustainability strategy .

And what’s next?We need to be more consistent about assigning performance indicators and goals to these issues, and consequently see how we measure up . We are already well positioned in environmental issues, but in social topics, such as diversity or demographics, we still need to work hard . In addi-tion, how we convey issues and goals to other countries needs to be improved and supported using appropriate channels – such as targeted employee training .

What is your vision for the REHAU Group in terms of sustainability? Through measurable indicators, employees can see for themselves how important a sustainability strategy is . They can see how much of an impact it has on the company’s success . In addition, choosing to act responsibly is some-thing our employees are proud of, which in turn, strengthens our employer brand . This provides us with fresh impetus and pushes us to develop innovative solutions . Moreover, through our sustainability strategy and its results, we can strengthen our market position and generate competitive advantages . All in all, our sustainability strategy aims at maintaining the company’s success and helping it to continue to grow .

In 2011, REHAU decided to change strategy: Relying on a financially stable foundation, the manufacturing company so far focused particularly on environmental and efficiency issues. Today, sustainability as a holistic approach is organizationally and strategically established at REHAU.

Dr . Stefan Girschik Chief Operating Officer (COO), Chairman of the Sustainability Steering Committee

FIVE QUESTIONS FOR

SUSTAINABILITY STEERING COMMITTEE DR. G IRSCHIK (COO)

STR ATEGIC PRODUCTION SYSTEMS AND QUALIT Y /PROCESS MANAGEMENT

STR ATEGICDEVELOPMENT

REPRESENTATIVES OF STRATEGIC BUSINESS DIVISIONS

CORPOR ATECOMMUNICATIONS

CORPOR ATEHUMAN RESOURCES

Core team

Extended team

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TO BE A ROLE MODEL, ONE NEEDS PRINCIPLESSUSTAINABILITY AS A SUCCESS FACTOR

Sustainability is not just a buzzword for us . The concept of sustainability is rooted in our corporate values, and thus determines our entrepre-neurial thinking and actions . Sustainability is also the foundation of our growth: Gauging our success in economic terms is not enough; only when we also measure up in environmental and social issues can we be successful in the long run – and lead the company worldwide into the future .

However, an ambitious goal alone is not enough . To give life to the concept of sustainability, we have to establish it firmly within the Group . Therefore, in 2011 REHAU formed the Sustainability Steering Commit-tee and integrated it into the organizational structure . To ensure that values and objectives in all business divisions and throughout the entire value creation process come into effect, all the main departments are represented by at least one member in the committee . The Steering

PRINCIPLES FOR SUSTAINABILIT Y In 2012, by defining its principles of sustainability, REHAU took an important step . These principles have provided clear fields of action, which in turn have allowed us to define relevant key issues . Binding, verifiable objectives and measures as well as the programs derived from these form the framework of our sustainability strategy .

LONG-TERM CORPORATE STRATEGY We take an earnest view of our responsibility as a global company and base our actions on the concept of sustainability . As a privately held company, REHAU is consciously diversifying by business divisions and

Committee core team, which meets quarterly, is complemented and supported twice a year by representatives of the relevant strategic business divisions and relevant specialist departments . Doing this, management has demonstrated its commitment to sustainable actions and the role sustainability plays in all strategic decisions .

The Sustainability Steering Committee defines the relevant fields of action, sets specific goals and is responsible for their development, the measurement of their success, as well as all reporting . The panel also provides impetus for the continuous optimization of the Group-wide sustainability performance . In addition, task forces comprising people from Procurement, R&D, Production and HR discuss relevant issues and key questions and disseminate this information throughout the company . The energy efficiency task force, for example, brings about and directs measures and programs that reduce energy needs in the plants .

industry sectors as well as regions and countries . This diversification provides stability and strengthens the company’s economic perfor-mance .

ENVIRONMENTALLY FRIENDLY AND ENERGY EFFICIENT PRODUCTS We help our customers become more sustainable . Our innovative drive means we create holistic products and solutions based on customer needs; we enable our customers to increase their energy efficiency, reduce costs and ensure quality of life .

Waste and wastewaterMaterial savings

Energy ef f iciencyHazardous materials

Recyclates Buildings

Work-li fe balance Training and advanced trainingDiversit y / equal oppor tunit ies

Safety / healthSocial commitment

Diversif icat ion (products / region)Economic stabili t yGrowth marketsIndependenceComplianceSupplier management

Customer sat isfact ionProduct responsibili t yProduct development (megatrends)

ENVIRONMENTALLY FRIENDLY, ENERGY

EFFICIENT PRODUCTS

EMPLOYEE SATISFACTION

LONG-TERMCORPORATE STRATEGY

RESOURCE EFFICIENCY

KE Y ISSUESF IELDS OF ACT ION

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RESOURCE EFFICIENCY As a manufacturing company we are aware of the impact of our busi-ness on our climate and environment . As a result, all REHAU sites implement, control and assess measures for resource conservation and energy efficiency . Through optimized production technologies and processes, we aim to use natural resources responsibly, thereby reducing emissions and minimizing the negative impact on people and the environment as much as possible .

EMPLOYEE SATISFACTION Our employees are the foundation of our success . We want to increase employee satisfaction and guarantee equal opportunities . Training and advanced training, health and safety as well as the reconciliation of work and family life are designed to give our employees long-term perspectives, motivation and encouragement . In addition, we want to play an active role in the communities in which we operate .

Objectives and performance indicators in our four fields of action will help us to make the individual principles of our sustainability strategy measurable and aid us in the continual assessment of their success . We are gradually implementing the issues and objectives, such as the reduction of primary energy consumption throughout the company and the entire value creation process . The interaction between concrete measures, installed programs and ambitious requirements allows us to generate economic, ecological and social benefits .

With this sustainability report, REHAU aims to show employees, customers, partners and other stakeholders a holistic and informative picture of the status quo, while following the guidelines laid out by the Global Reporting Initiative .

Principles for Sustainability: Activities and key issues

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2. PRODUCT RESPONSIBILITY

The GENEO window profile shows what intelligent material devel-opments are capable of. An innovative fiber composite material replaces the traditional steel core. For the window industry, this is a revolution; for the life cycle assessment of the product, it is a massive improvement – and for REHAU it is both proof and incentive to use innovation as a recipe for success in the global market.

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PRODUCT RESPONSIBILITY

OUR SUSTAINABILITY DRIVERSTHE STRATEGY FOR PRODUCTS AND PROCESSES

Good ideas for sustainable success: Every day REHAU employees and partners provide us with valuable ideas and suggestions for our prod-ucts, materials, manufacturing processes and business processes . We like to put these into practice since innovation has always been our growth engine and an integral part of REHAU corporate culture . With every new development, it is our goal to guarantee our customers the greatest possible value while maintaining our responsibility to the environment and society .

With polymer solutions, we open up new areas of application in order to improve quality of life and conserve resources . Here, we focus on energy-efficient construction, the use of renewable energies, water management systems, new mobility concepts and optimized living and working environments .

In our product development we consider the entire product life cycle - from resource extraction to processing and disposal . We convert all materials – including finite resources like crude oil – into products and solutions that are characterized by their long life and environmentally friendly product benefits . Environmental Product Declarations (EPD) prove that REHAU’s polypropylene chambers AWASCHACHT, for exam-ple, have a service life of at least 100 years, are permanently sealed, corrosion resistant and resistant to de-icing salts . These product features not only reduce maintenance requirements, but also increase cost efficiency and protect the groundwater . In addition, at the end of its life cycle, polypropylene plastic can be completely recycled and reused in new products . Other product solutions such as the geothermal probe RAUGEO, made of high-pressure cross-linked polyethylene plastic (PE-Xa), saves over its 30-year life cycle about 49,500 kg of CO₂ – only 180 kg of CO₂ per probe is emitted during production . Through these and other valuable sustainable solutions, we intend to intensify recy-cling loops – because we are convinced that the best way to protect the environment is through the intelligent processing of materials .

In the fiscal year 2012, a global network of around 850 technicians and engineers developed new products, materials and processes, and opti-mized existing processes . These experts do not just check and improve essential criteria such as comfort, design, resource- and environment-friendly production, and efficiency, they also put a special focus on legal issues as well as national and international standards for product safety, contractual liability and labeling .

INNOVATION MANAGEMENT REHAU innovation management rests on two pillars:

EMPLOYEES: As an innovation-driven company, REHAU relies on the ideas and commitment of its employees . Our clearly structured process management allows us to use the appropriate resources for development and implementation of new products, procedures and processes . 98 German and 60 foreign patent applications made in 2012 alone demonstrate the success of this approach .

NETWORKS: REHAU supplements its own research activities with an international network of leading universities and public research institu-tions . We focus on projects dealing with sustainable, environmentally friendly material trends and new recycling concepts . With our fiber-reinforced materials, we are opening up new potential for lightweight construction and energy-efficient system solutions .

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Ms Schulze, high demands on climate protection, air pollution control and the use of resources are key issues of Daimler’s sustainability strategy. How do these issues affect Procurement? Schulze: They affect the entire value creation process . Procure-ment is urged to implement these issues and to ensure that the products meet our requirements and standards, social standards included . For all of this, we must rely on our suppliers . What must a supplier such as REHAU do to ensure optimal coop-eration and effective use of resources? Brändle: The basis for a long-term, sustainable and efficient collaboration is the Daimler supplier cooperation model, which on the one hand is based on measurable performance criteria such as quality, technology and price, but on the other, in partnership criteria such as fairness, reliability and trust . Transparency in the collaboration and commitment to objectives is a prerequisite . REHAU, as part of our supplier cooperation model “Daimler Sup-plier Network,” has long since belonged to the segment “Strategic Partner .” We have very high expectations and requirements for our strategic partners; in return, we offer increased planning certainty or new business opportunities .

What sustainability principles does Daimler follow when working with direct suppliers?Schulze: Our sustainability standards are an integral part of the contract . And we expect REHAU to pass them on to their suppli-ers . Communication is extremely important . We communicate our values and standards via training sessions on the Supplier Portal and through the Daimler Supplier Magazine to ensure they are understood . High-risk countries receive a lot of support and train-ing, and if necessary, are reviewed .

Daimler ensures its actions are in keeping with the corporate value “integrity.” What does that mean exactly? Brändle: Integrity, in addition to enthusiasm, discipline and appre-ciation is one of our four corporate values . Our policy on proper conduct describes principles of conduct and guidelines for our actions . The policy clearly states that upright, decent behaviour forms the basis of our relationship with our business partners, too . More specifically, it deals with aspects such as the protection of human rights, fair competition or the prohibition of corruption . Down the line: In terms of sustainability, what opportunities and chal-lenges will Daimler and its suppliers face?Brändle: It’s a continuous process that never ends . Daimler will increasingly be held accountable, which in turn will have effects on supplier management . Business activities and relationships are becoming more complex, so we will have to become more transparent and in turn demand more transparency .Schulze: The reporting process is likely to change towards inte-grated reporting . The system landscape and the tools to generate data will have to adapt to the requirements . Here, the interaction with suppliers is important . We are working towards cross-industry standards; we are actively participating in associations and working together with other car manufacturers . A common approach and an understanding of sustainable development are of great benefit to all companies and partners .

As a founding member of the UN Global Compact, Daimler attaches great importance to the observance of internationally applicable standards for working conditions, human rights, environmental protection and business ethics. These principles are not only the basis for internal policies and thus the guiding lines behind all work at Daimler; they are also standards for business partners. A trusting and effective relationship with suppliers is an absolute must for the corporation that has sustainability firmly established in its business strategy.

Sabine Brändle (left) Senior Procurement Communication Manager, Daimler AG

Heike Schulze (right) Procurement Communication / Sustainability Manager, Daimler AG

FIVE QUESTIONS FOR

19

Common goals and an open, continuous dialogue: two important cornerstones of a cooperative and long-standing working relation-ship – and a prerequisite for innovative product development . The new Mercedes A-Class, unveiled in 2012, shows just how the result of such “cooperation with vision” can look . For several years, engineers and product developers at Daimler and REHAU have collaborated inten-sively . They have created a car which not only sets new performance standards, but also stands out through its first-class aerodynamics and reduced fuel consumption .

The experts on both sides complement each other – take, for example, the changes to the rear and side spoilers: The car manufacturer’s aero-dynamics engineers begin by developing look and design ideas in close collaboration with vehicle stylists; these ideas are then adopted and developed further: “And so from an idea come tests on clay models, which provide the first surface data, which in turn form the basis for the development of a real product,” said Thomas Mett, Head of Devel-opment for Exterior Parts at REHAU . The engineers at REHAU then take over the technical data and develop it further . They choose those polymeric materials suited to all the requirements, or if necessary, develop new materials . REHAU employees also optimize the weight and develop and test an efficient production and assembly . Not only must the visual requirements exactly match the customer’s wishes, but also a variety of functional criteria pertaining to safety, comfort and driving dynamics must be met . Before a component reaches market maturity and goes into serial production, it must first undergo numerous tests and adjustments . This effort is well worth it: seemingly nondescript components, which have successfully gone through the development process, can make a huge impact . For example, with the side spoil-ers alone, we were able to reduce the air resistance of the A-Class by approximately three percent . For every million vehicles with an average mileage of 150,000 km, this results in an estimated saving of 120,000 tons of CO₂ . *


SPORTY AND EFFICIENT DEVELOPMENT OF THE REAR SPOILER SYSTEM FOR THE NEW MERCEDES A-CLASS

Thomas Mett, Development Engineer,

with the rear spoiler of the new Mercedes A-Class

The key to successful product development is an innovative culture of collaboration, characterized by new ways of thinking and approaches as well as solid technical expertise and experience . Only then is it possible to tackle new issues and challenges such as the use of recycled materials . REHAU and Daimler are currently working together to investi-gate how high-quality recycled materials can be used for specific appli-cations, in particular for non-visible components . Special function tests will show whether materials made from secondary raw materials are suitable without restriction for such sophisticated products . “We simu-late, for example, sunlight, extreme climate changes or trips through the carwash . Only when the materials successfully pass these tests and meet our high standards of quality and safety, can we consider using recycled materials for rear spoilers,” explains Thomas Mett .

*According to Prof. Jochen Wiedemann from the Research Institute of Automotive

Engineering and Vehicle Engines in Stuttgart, a reduction of the drag coefficient by

0.01 points corresponds to a CO₂ reduction of 1 g/km. Source: www.lvz.de

20

Ms Völlings, what are the key issues of IKEA’s sustainability strategy?The IKEA Group’s new sustainability strategy is part of a long-term growth strategy and contains three key issues . We want to encourage millions of consumers to lead a more sustainable life at home; consequently, we develop affordable products, which customers can use to save energy and water and reduce waste . We also want to make life better for people and society as a whole . And finally, we want to become self-sufficient in terms of energy and resources . IKEA has more than 1,084 direct suppliers. How do you manage to institute clear requirements, and then motivate your partners to achieve the objectives?Since 2000, the IKEA code of conduct IWAY has detailed the requirements for our suppliers worldwide . The REHAU plants, which manufacture IKEA products, have also been audited for compliance . The audits help us share experiences and clarify requirements . They are the basis for a trusting partnership . By means of our own sustainability index, we evaluate suppliers in terms of their energy efficiency, their energy management and their use of resources and materials .

“IKEA Goes Renewable” is your motto. Your goal is to generate as much renewable energy as your company uses in all its stores and buildings by 2020. What will this mean for your suppliers? In 2012 we were already able to use renewable energy sources such as solar and wind power or biomass energy to cover 51 percent of our energy needs . Similarly, we want to encourage and support our suppliers to do their part . Our program “Suppliers Go Renewable” will be introduced to our main suppliers during

the 2013 fiscal year . This program is based on the sustainability index . We measure the environmental performance of suppliers and help them identify opportunities for improvement – such as better energy management . Specifically, this means that by 2017, our suppliers must have improved their 2011 energy-efficiency levels by 20 percent . We support our partners by offering energy audits and promoting access to renewable energy . According to your sustainability strategy, all the main materials should be renewable, recyclable or recycled in the future. How is this going to work?We rely on hundreds of different types of materials for our products . In order to act sustainably from the get-go, we use our Sustainability Product Scorecard, which allows us to evaluate and classify all IKEA products according to vari-ous criteria, such as the use of recycled or renewable ma-terials . In 2012, already 91 percent of the materials used were renewable, recyclable or recycled and 35 percent of the products could be classified as “sustainable .”

Does IKEA want to become a supplier of purely ecological products?We do not want to focus on producing special “eco-products;” we want to make our entire product line more sustainable . For example, we worked closely with a supplier to develop a filling of soft, feather-like polyester microfibers made from recycled PET bottles for our GOSA SYREN pillows . And our SKARPÖ chair is also made from 100 percent recycled plastic .

The number of visitors to IKEA’s 338 stores around the world totaled more than 690 million in 2012.The Swedish furniture manufacturer’s success is based on the business model of producing good quality products at low prices through cost effective and innovative methods. Their vision is to allow as many people as possible experi-ence a better everyday life. Part of this vision is the company’s responsibility towards society and the environment. The new IKEA sustainabil-ity strategy, “People & Planet Positive” demon-strates ambitious targets and measures, which the company intends to implement by 2020.

Derya Völlings IWAY Coordinator, Trading Area North Europe, IKEA

FIVE QUESTIONS FOR

21

For this, REHAU experts receive a lot of support, including from the customers themselves . For example, we benefit from IKEA’s extensive network and come into contact with other experienced recyclers .

Slowly but surely, we aim to increase the amount of recycled materials in appropriate product categories . IKEA’s goal to offer resource-saving products to end users, thus enabling a more sustainable lifestyle at home, can be implemented step by step – and above all, together .

The sustainability efforts of the multinational furniture company IKEA are ambitious – but not unattainable . In any case, they are pioneering . In the implementation of its goals, the Swedish furniture company gets its suppliers and partners involved . As a result, REHAU, too, is asked and challenged to play a role in achieving IKEA’s product and environ-mental objectives .

According to IKEA employee Derya Völlings, IWAY Trading Area Coordinator North Europe, a lively and open exchange between busi-ness partners is a prerequisite for the development of a sustainable product range . IKEA and its partners scrutinize and optimize contin-ually and critically the ecological and economic characteristics of a product . An important building block in the optimization of resources is the use of secondary raw materials – since recycled material improves the CO₂ balance of a product considerably . For companies in the plas-tics processing industry, the biggest challenge is how to ensure the high quality standards for recycled polymers . The department of R&D Material conducts numerous tests and examines material samples before the quality of this recyclate is considered good . For secondary raw materials bought externally, even closer coordination between the recycling company and plastic processors is required .

To date, IKEA has had a lot of success in this area with its kitch-ens . REHAU supplies plastic solutions for IKEA kitchens and living programs . During product development, our chemists are continuously examining the use of recycled materials for appropriate product groups and improving them for use in serial production . For example, they are currently looking into the uses of recycled materials in kitchen profiles .


SUSTAINABILITY IS TEAMWORKOUR CONTRIBUTION TO IKEA’S ENVIRONMENTALLY FRIENDLY PRODUCTS

Chemist Dr Thomas Rhönisch is respons-

ible for the department ‘R&D Material’

at the REHAU Group. The worldwide

competence network for materials brings

together within the company the know-

how on polymer materials, additives,

paints and pigments.

FIVE QUESTIONS FOR

22

Mr Meckmann, you deal with green building certification, energy optimization and the energy management of buildings. Is an energy-efficient building always a sustainable building?It can be, but it’s not always the case . Energy efficiency is of course an important criterion in the evaluation and certifica-tion of buildings, but still it’s only one area of sustainability . For sustainable buildings, the consideration of economic, ecological and socio-cultural aspects in all life cycle phases is fundamental . In addition to criteria such as energy and water consumption, this complex approach includes any resulting environmental emissions or ozone pollutants as well as a building’s health and convenience aspects . What challenges and problems does sustainable construction face? Assessing the sustainability of a building requires immense expertise due to the complexity and high degree of detail that is needed . We have to work intensively with the construction pro-jects . An office building’s requirements differ greatly from those of a kindergarten . Some criteria are also in conflict: the highest standards of sound insulation, for example, limit the flexibility of a building . There are also regional differences . Climatic conditions have to be considered just as do different norms and standards, which are already transparent in the different certification ap-proaches, such as the LEED (U .S .), BREEAM (UK) or DGNB (GER) .

Do you think an international standard would make sense in this case?The certification systems are becoming more international . The LEED certification, for example, can be used for the Indian market . Buildings in China may be certified in accordance with the DGNB . The rating systems are in line with regional

standards and the relevant planning and building law . Dif-ferent approaches do still remain . The competition between certification systems is actually beneficial, as it helps weak-nesses to be corrected quickly and improvements to be made . Mr Meckmann, are sustainable buildings affordable at all?Definitely! High-quality buildings not only save energy and resources, they also achieve a higher yield when sold or leased . They can even be cheaper in the first place . Looking at the entire life cycle of a building helps to minimize risks during use and save costs . Criteria such as thermal comfort have a major impact on health and work performance: illness may be avoided and the satisfaction of employees or tenants can be increased . Everyone benefits: the owners, the renters, the economy and the environment . How do manufacturers such as REHAU help you and your customers certify new buildings and demonstrate a building’s sustainable concept?Smart products are needed for sustainable buildings . When innovative solutions make a contribution to the relevant building-specific or use-specific criteria, then a better result can be achieved in the certification process . REHAU’s stormwater infiltration system, for example, significantly improved the building design of the Pasing Arcade shopping center in Munich . What’s important for our work is that we have all the product information . Technical data sheets, safety data or environmental declarations from manufacturers are all absolutely essential .

Livable, affordable and above all sustainable: This is how the ideal city of the future should be. Today, the building industry’s impact on the environment is substantial, producing around 40 percent of total greenhouse gas emissions. Stricter building regulations and certifications clearly demonstrate how great an influence sustainable building has on the implementation of climate protection strategies. Building certifications – such as LEED, BREEAM or DGNB – make it possible to demonstrate how the high standards and goals for sustainable buildings are complied with.

Klaus Meckmann Head of Energy and Environment Department, Facility Management and Services Consulting

23


One example of the important role played by REHAU systems for the certification of buildings is the newly built shopping arcades in Munich-Pasing . At this shopping center, precipitation water from roofs of buildings, pedestrian trails as well as emergency access roads accumulates . The water from the completely sealed surfaces is initially collected through a storm drain network . Here, the heavy duty polymer sewer systems AWADUKT PP and AWASCHACHT DN1000 REHAU come into play; both systems have a service life of at least 100 years . The accumulating precipitation water then undergoes a mechanical pre-treatment in the filtering system – the REHAU RAUSIKKO sedi-mentation system – before being fed into the seepage blocks . Due to the limited space, the Arcade’s designers opted for the RAUSIKKO Box system . Because of these modulars’ high capacity, combinable seepage blocks, the entire system could be installed in minimal space beneath the access roads . Below the surface, this system meets the highest static requirements . Trucks driving over the area pose no danger . How was the intelligent water management solution using REHAU systems graded? DGNB gold!

Whether it’s an office tower, school or family home, today’s build-ings are challenged to adapt to socio-cultural developments, climate change and the trend towards smart urban developments . Buildings must be sustainable, efficient and livable . In its CONSTRUCTION divi-sion, REHAU has been addressing these challenges for a long time . Our smart products actively reduce CO₂ emissions, and through our qualified recycling solutions made of polymeric materials, we make a valuable contribution to environmental protection . But that’s not all . With our various developments in the fields of building technol-ogy, windows and facades and civil engineering, we also significantly improve the quality of life in cities .

A valuable tool for demonstrating the economic, ecological and socio-cultural features of a building is the building certification system assessment . In this assessment, grades or percentages provide infor-mation on the extent to which the (sustainability) requirements are met . Across various criteria, REHAU systems make up a substantial part of the overall grade . Our window, door and facade systems, for example, determine the ecological quality through insulation, the tech-nical quality through sound insulation as well as the thermal or hygro-thermal quality of the building envelope . REHAU window and facade systems ensure socio-cultural quality through their thermal as well as visual comfort . Plastic window systems influence up to 39 .5 percent of the total number of DGNB points .

REHAU is continuously developing and updating its environmental product declarations, which serve as the basis for the evaluation of a building . Through a product life cycle assessment, we can represent a product’s total environmental impact, like its approximate greenhouse effect, or its fossil and renewable energy requirements throughout its entire life cycle .

LIVING UP TO THE HIGHEST DEMANDSREHAU SYSTEM SOLUTIONS FOR SUSTAINABLE BUILDINGS

LEED (Leadership in Energy and Environmental Design)

BREAM (Building Research Establishment - Environmental Assessment Method)

DGNB (German Sustainable Building Council)

Pasing arcade, Munich:

The DGNB Gold certification for the Pasing

Arcade shopping center in Munich was based on

48 criteria. “In this case, an intelligent solution

for water was an important prerequisite for the

highest rating level,” explains Meckmann.

24

3. ECOLOGICAL RESPONSIBILITY

The future firmly in sight: Thomas Roblick is the director of one of REHAU’s flagship plants. At the Group’s biggest window-manufacturing plant, in Wittmund, Germany, approximately two-thirds of the cooling requirements of all cooling water circuits are met through free cooling by dry coolers in connection with high-efficiency chillers. If the out-door temperature falls below 8°C, the chillers are no longer needed. Thanks to free cooling, the power consumption of the chillers is reduced by more than 35 percent. The entire plant’s power requirements are met using green electricity.

2009 2009

1.088

0.269

2010 2010

1.020

0.239

2011 2011

1.047

0.223

2012 2012

1.045

0.221

electricity [kWh/kg of output] gas [kWh/kg of output]

Energy requirement per production output

-30 % by 2020, based on 2009 figures *

25

ECOLOGICAL RESPONSIBILITY

As a manufacturing company, our commitment to the responsible use of resources and the protection of the environment is ingrained in our core values . And with good reason, too: All ecological improvements come with economic benefit . We save costs and thus increase our competi-tive edge . Not only in production but also in management and sales are we carrying out programs and individual measures that promote energy efficiency and resource conservation – often above and beyond statu-tory requirements . Our responsibility does not stop at national borders either: We are formalizing and establishing our principles to protect the environment in all business processes worldwide . Every employee is included so that we can achieve our ecological goals together . We also inform our customers about the environmental aspects of our prod-ucts . And we take environmental criteria into account when we select suppliers . We take environmental burdens of every kind seriously and monitor them closely at all our facilities worldwide . Starting with the planning phase of new activities, new products and processes, we examine all potential impacts on the climate and environment .

MANAGEMENT SYSTEMS In order to improve our resource efficiency continuously, we have implemented several internal programs (e .g . REHAU Production System), which add value to organizational processes . In addition, we have established internationally recognized management systems worldwide . The Group’s ISO 9001 certificate includes all administrat-ive offices, the plants in Europe as well as a large proportion of non-European plants . Due to requirements set by the automotive industry, a number of locations are also certified according to ISO TS 16949 . Almost all sites worldwide are certified according to the international environmental management standard ISO 14001 . Our certification plan stipulates that by 2015, 100 percent of our employees will work at certified sites . Additionally, in 2014 we want to have our systematic energy management certified according to ISO 50001 at all German locations .

MATERIALS AND ENERGY USE Material and energy efficiency are key competitive factors in the entire value chain . As a result, we continuously analyze and optimize our processes; we learn from each other and carry out proven practices in other areas . Already during product development, we consider all ecologically relevant factors, such as materials and recyclates, energy

consumption, recyclability and waste . In our REHAU SPEM program, for example, we define measures that improve productivity as well as energy and material efficiency in all plants . We monitor the effective-ness of our activities and look for ways to proliferate them . In addit-ion, we also promote energy-saving measures with an advertised, company-wide special annual budget of up to 2 .5 million Euro – even if this does not meet the usual criteria for investment decisions .

In terms of resource efficiency, we still have a lot planned, but we can already look back on achievements . We were able to cut our 2009 gas consumption levels by 17 .6 percent . Plus, in 2012, we were able to reduce our power consumption again (see figure below) . Through energetic measures, the automotive plants in particular were able to massively improve their energy efficiency . Relatively new plants, like the ones in Cullman, North America or Taicang, China, were able to increase their production efficiency and thus reduce their energy consumption considerably . Since the volume of production largely determines the use of energy, this serves as a benchmark for evaluation .

PRODUCTION WITH HIGH RESOURCE EFFICIENCYLESS IS MORE: MORE ENVIRONMENTAL PROTECTION. MORE COMPETITIVENESS.

* primary energy consumption (electricity and gas)

2009

0.965

2010

0.858

2011

0.803

2012

0.795

in m3/ton output

Specific water consumption

2010

28,349

2011

90,070

2012

150,005

CO₂ in tons

Cumulative CO₂ savings

2010

52,906

2011

204,807

2012

454,027

in m3

Cumulative water savings

-40 % by 2020 based on 2009 figures

-25 % by 2020 based on 2009 figures

26

WATER In our plastics processing, water is used primarily for the cooling of equipment . In many areas, the water is in a circuit system and can be reused several times . So, compared to our energy requirements, the demand for water plays a lesser role in our production . Nevertheless a variety of measures already taken demonstrates that there are oppor-tunities for improvement in this area, too . Compared to 2009 figures, we were able to reduce our water consumption by nearly 17 .6 percent . Based on our production volume, this shows continuous improvement .

In terms of water consumption, the automotive plants are clearly the “efficiency champions .” We were able to make significant improve-ments by bringing foreign plants into line with European standards of technology . By switching from once-through to circulation cooling and from steam- to water-driven heating, we were able to significantly re-duce our water consumption .

EMISSIONSIn addition to improved energy efficiency, we are able to demonstrate direct emissions savings at production sites caused by the consump-tion of fossil fuels, such as gas, oil and coal . The calculated data is based on the type of energy sources and energy mix of the different countries . Here, too, the reference year is 2009 .

Overall, we were able to save 150,000 tons of CO₂ within three years . This represents a 5 percent improvement of specific CO₂ emissions on 2009 levels . More than half of these savings are attributable to the automotive division . In addition to this, the REHAU window plant in Wittmund has been meeting its entire electricity needs with green hydroelectricity since 2011 . With these measures alone, we save 17,600 tons of CO₂ each year . And the Feuchtwangen plant in Bavaria utilizes a biomass CHP plant to power a heat absorption chiller .


Use of recyclates 2012 [tons]Field of application

Pipes, civil engineering 14,200

Window manufacturing 6,300

Furniture profiles 4,600

Hose, equipment manufacturing 2,000

Automotive exterior parts 2,500

Total 29,600

2009 2009

10,158

671

2010 2010

11,847

689

2011 2011

12,727

754

2012 2012

14,099

783

harmless waste [tons]

hazardous waste [tons]

Waste management Central Europe

27

RECYCL ATESThe use of recyclates is a strategic objective at REHAU – both in the ecological and economic sense . Evaluating the possible uses of recyc-lates is part and parcel of every product development and firmly estab-lished in the product development process . REHAU observes the legal regulations (e .g . REACH) as well as standards and customer specifica-tions . The use of secondary raw materials, however, is not possible in all applications . Products in the aircraft industry, for example, are exposed to particular stresses, and therefore only primary materials are suitable here . As a result, depending on the product range, we reach different utilization rates for recyclates in the different business fields . In the field of Civil Engineering & Infrastructure, the current utili-zation rate is about 28 percent .

Through long-term, stable relationships with our recyclates suppliers – the result of a well-established supplier management system – and through quality assurance measures within our quality management system, we ensure perfect product quality even for products made from recyclates (e .g . the raw material selection and qualification process, the specification of raw materials, the inspection of goods upon arrival, as well as in-process and finished-part testing) . REHAU strives to continually expand its use of recyclates . In 2013, we aim to achieve an increase of 10 percent .


WASTE AND RECYCLING A 20 percent increase in production volume in the Central European production sites since 2009 has also led to an increase in the amount of waste generated . The 14 percent increase in the specific volume of waste is due to the increased complexity of system solutions and to a bigger proportion of in-house production .

Our goal is to avoid the disposal of waste material and residues as much as possible . To this end, REHAU uses mechanical recycling circuits in production: we specifically want to recycle waste and residues in the production process or in the value chain . To establish closed material cycles and develop recycling concepts, Procurement works hand in hand with the individual plants, suppliers and service providers . A good example of how this works is the reprocessing of paint residue . The paint residue which accumulates during the coating of components in the automotive sector is collected at the factory and delivered to a partner company for recycling . The recycled paints are then used by customers in other industries . Unlike a conventional method of paint residue disposal, our strategy protects environmental resources and allows us to benefit economically . With just one partner, we were able to recycle ten tons of paint in 2012 alone . Employing other recycling strategies, the Spanish plant in Tortosa and the North American plant in Cullman were able to reduce their waste by 40 percent and 85 percent respectively .

Rehau administration site

REHAU consistently implemented sustainability and energy effi-ciency measures during its renovation of the administration build-ing at the company’s headquarters, which was completed in 2012 . Using our own products, we have reduced the energy costs by around 280,000 Euros per year and the CO₂ emissions by 2,585 tons per year .

This was made possible by the effective interaction of different components: the installation of a cogeneration plant for electricity and hot water supply, the switch from steam to water for the supply of heat as well as the introduction of a geothermal plant . In addition to the 5 million in renovation costs, our company invested another million for these measures . Regardless of weather and season, heat and cold is removed from the ground in a closed loop via geothermal probes and collectors and used for either heating or cooling . Three

heat pumps supply the plant’s industrial manufacturing equipment with heating and cooling – cooling in the summer and heating in the winter . The heat pumps – with a heating capacity of 125 kW and a cooling capacity of 119 kW – are fed from 30 geothermal probes, which required 130-meter-deep holes . These measures are another example of how REHAU makes a significant contribution to protect-ing the environment and promotes the use of renewable energies . But our efforts do not stop there .

Together with the city, the administrative district and local compa-nies, REHAU got involved in creating the efficient “Bioenergy Center Hochfranken” . In Rehau, by 2014, around 76,000 megawatt hours of electricity and heat – roughly 40 percent of the energy needs of local households and industry – will come from renewable sources .

1 Biogas supply (planned)

2 Bio-methane / natural gas supply

3 Power distribution grid feed

4 Combined heat and power plant (CHP)

5 Hot water boiler

6 Energy-room with heat pump

7 REHAU outdoor facility heating system

8 30 RAUGEO geothermal probes

1

23

4

5

6

7

8

28

Guntramsdorf administration office

The share of renewable energy used in REHAU production facili-ties is currently about eight percent worldwide – and 15 percent in Germany . Administrative offices are also increasingly using renewable energies . One example of a success story is found in Guntramsdorf, Austria at REHAU’s administrative office, which was renovated in 2011 . Using primarily REHAU system solutions, the renovation project set new standards in terms of architecture, energy efficiency, indoor climate, acoustics, functionality and inte-rior decoration . By using energy-efficient systems and renewable energy, we were able to attain remarkable cost savings . The key was implementing holistic building solutions which significantly help to reduce the energy required, use energy efficiently and keep losses as low as possible .

By renovating the outer shell thoroughly, installing new windows to passive house standards, switching from gas to renewable sources of energy and installing superordinate fully automatic build-ing management technology, annual heating and cooling energy

requirements have been verifiably reduced by up to two thirds . The heating requirements before the renovation amounted to 151 .659 kWh per year (with a gross floor area of 1 .736 m²) . After the renovation work, these figures were reduced to 36 .016 kWh per year, i .e . by around 76 percent (despite a bigger gross floor area of 1 .866 m²) .

1 RAUGEO geothermal probes

2 REHAU outdoor facility heating

3 RAUVITHERM local heating supply

4 Subsurface heating/cooling

5 Acoustic chilled ceiling

6 AWADUKT Thermo ground-air heat exchangers

6

1

2 3

4

4

5

Comparison of key values. The building before and after renovation

before after

Heating energy requirement per year [kWh/a] 151,659 36,016

Cooling energy requirement per year [kWh/a] — 14,173

Gross floor area [m2] 1,736 1,866

Gross conditioned volume [m2] 6,258 6,249

Specific heating requirement [kWh/m2a] 61 27

Heating load [kW] 95 25

Specific heating load [W/m2] 63 16 .6

Cooling load [kW] — 36

Specific cooling load [W/m2] — 25

29

Thomas Schott,

Chief Information Officer at REHAU

„By building our own private cloud, we have avoided

investing in 300 additional server systems and at

the same time, saved a total of 1.7 million kWh in

energy each year over the last four years.“

30

Green instead of gray: Information technology can do its bit for climate change – REHAU has been proving that for years . When it comes to Green IT, we set standards throughout Germany – not just by renovating the data center .

Green IT does not just provide environmental benefits, but economic ones, too: “Environmental and economic benefits largely depend on the implementation,” says Thomas Schott, Head of Corporate Service Center at REHAU in Germany . Though cost was a key issue, the company still consistently pursued green strategies during the renov-ation of the Rehau headquarters data center in 2009 . “We have been measuring our energy consumption continuously for 18 years . That’s business as usual,” says Schott . Today, the data center has become a “Green IT Best Practice Case .”

The REHAU computing center’s green recipe for success is made up of a variety of measures . One example is a free cooling system that reduces power requirements for cooling water production down to a minimum as long as the outside temperature does not exceed 12 degrees Celsius . Other examples are a cold- / warm-aisle layout, an optimized air flow by means of regulated fans with reduced power consumption and a computer room seal, which is currently the best on the market . All of these contribute to climate protection . Thomas Schott’s team permanently keeps an eye on all relevant temperatures, airflows and energy consumption . “That’s how systematic improve-ments are made,” says the head of IT .

The concept of green information technology begins for us with the purchase of the equipment . REHAU attaches the highest importance to ensuring that providers of IT hardware act ecologically throughout the complete chain, from production to operation and disposal . REHAU


THE GREEN CLOUD AND OTHER IT-INNOVATIONS HOW REHAU’S IT IS BECOMING MORE ECOLOGICAL

decided early on to go with virtualization: “By building our own private cloud, we have avoided investing in 300 additional server systems and at the same time, saved a total of 1 .7 million kWh in energy each year over the last four years,” says Schott . Subsequently, in 2012 REHAU was able to replace another 40 server systems in SAP Hosting as well as database and application operations with new, more efficient core systems . Today, about a quarter of the server hardware supplies more than 100 additional virtualized systems to meet REHAU’s differ-ent demands and needs . Despite the enormous growth of systems, storage and IT infrastructure components, we have been able to keep the computing center’s energy consumption constant over the past five years . “Between 2009 and 2013, we succeeded in reducing the elec-tricity consumption of 5,000 SAP users to 60 kWh per day – in other words, by a third,” reveals Schott .

In the field of Green IT, REHAU is among the ground-breakers in Germany – with big plans set for the future . In the short and medium term, Schott and his team want to make the installed printer systems more efficient in terms of energy, maintenance costs, CO₂ emissions and printing volume . The Corporate Service Center’s other goals include further advancing electronic filing, increasing the use of tablets in meetings and reducing energy consumption in the IT LAN infrastruc-ture . In the long run, however, the IT specialists are planning to deploy even more energy-efficient hardware and eco-friendly air conditioning plans, which, for example, rely on ground water or outside air .

Data center at Rehau

Joseph Pinto,

Director of Regional Procurement North America

“Our suppliers have to be intensively involved.

Only together can we increase resource and

cost efficiency, reduce emissions, and open

new avenues for recycling and the use of

sustainable materials.”

31


SUSTAINABILITY CAN BE BOUGHTPROCUREMENT AS A CENTRAL COMPONENT OF THE SUSTAINABILITY STRATEGY

The purchasing division plays a significant role in the company – not just as the interface for suppliers, but also as a bearer of environ-mental and social responsibility . REHAU takes this responsibility to heart – even across national borders . An international project team has defined various fields of action and made important progress over the last two years .

SUPPLIERS Along the entire value chain, ecological, economic and social aspects must be in line with REHAU’s sustainability goals . Consequently, our suppliers play an important role . In 2012, we developed a Code of Conduct for our suppliers based on internationally accepted standards . This ensures that basic requirements, such as environmental and labor laws, are communicated and adhered to in the supply chain . We are working on integrating sustainability even further into the supply chain management process to identify risks more quickly and be able to implement improvements consistently .

FIELD OF ACTION: RESOURCE EFFICIENCYThe energy efficiency of machinery and equipment is a key criterion; as a result, Procurement works closely with the relevant technical depart-ments . In line with our procurement strategy, our staff, for example, will look out for upgraded control pumps for the drive in new injection molding machines (large machines) . This way, we save approximately seven percent of the installed drive capacity – a value at least equal to 40,000 kWh per year per machine . Since 2012, we have acquired 14 new large machines based on this new approach . To ensure the effect-iveness of our actions, we continuously check each individual machine with gauges and measure the energy consumption of the production lines .

In addition to the procurement of new machines, we also focus on optimizing existing machinery . As a pilot project, REHAU implemented EtaControl, a technology for machine optimization, with energy savings of 20 percent . Within the context of this success, it is being discussed whether another 30 older machines will be optimized, too . Regional purchasing departments also support REHAU sites in their efforts to continuously improve energy efficiency . A pilot project in the Spanish plant in Tortosa for example involves the use of LED instead of convent-ional fluorescent tubes . This measure will not only reduce energy

consumption by up to 70 percent, it will also reduce the maintenance costs due to the longer life of the LEDs .

FIELD OF ACTION: RECYCLING In collaboration with our manufacturing plants, our suppliers and service providers, REHAU’s Procurement Department develops and implements recycling programs . This way REHAU not only reduces waste but saves costs, too . For more information, see “Waste and recycling” on page 27 .

FIELD OF ACTION: EMISSION REDUCTION For REHAU, sustainable logistics means attaining optimal economic and ecological results . Therefore, we want to make our transportation system as cost-effective, time-flexible and environmentally friendly as possible . Our optimization measures have taken us a few steps closer to this goal . Through the strategic combination of different modes of transport on selected routes to Europe and North America, we were able to reduce CO₂ emissions in 2012 by 60 percent . On these routes, this corresponds to a reduction of 1,000 tons of CO₂ for the year 2012 . It is important to us that our forwarding agents also remain dedicated to sustainability . For this purpose, REHAU’s purchasing division is in continuous dialogue with our service providers to assess their ecological footprint . In our procurement organization in Western Europe, for example, we periodically assess measures to reduce CO₂ emissions, such as fuel-saving techniques . This data is the basis for the selection of the forwarding agent and an integral part of tenders . In the future, we plan to carry out a uniform assessment of the sustainability of our forwarding agents worldwide .

32

4. SOCIAL RESPONSIBILITY

Christian Strecker is a production logistics specialist at the plant in Feuchtwangen. Employees like him are the driving force behind REHAU. Not without reason is the motto “REHAU drives people. People drive REHAU” firmly rooted in the corporate culture of our privately held company: It expresses the special relationship we have with our employees – and the dynamic that keeps this partner-ship alive.

Staff development 1 2011 2012

Europe 12,824 12,587

Germany 8,203 8,171

Switzerland 156 130

Asia / Oceania 2,217 2,273

North America 1,360 1,575

South America 457 578

Africa 468 447

17,326 17,460

Turnover rate [%] 11 .40 11 .0

2009

14,959

2010

16,004

2011

17,326

2012

17,460

Number of employees

Workforce development

407.0

482.2 496.7 492.6 Output volume in 1.000 tons

33

REHAU creates value – for customers, employees and the regions where our plants are located . Our continued success depends on our employees’ skills and their commitment to exceptional performance . In 2012, a total of 17,460 employees worldwide committed themselves to achieving growth and dynamism at the REHAU Group . Of these, 3,973 employees were working for the Construction Division 3,544 for the Industry Division; 3,960 for the Automotive Division; 5,983 employees work in the commercial areas . We have created new jobs for engi-neers, primarily in the Automotive Division due to a favorable order volume . This positive business development has led to the expansion of REHAU’s facilities in Port Elizabeth (ZA) and Cullman (USA), and a new plant in Györ (HU), which is scheduled to open in 2013 . The growth market South America – Brazil, in particular – shows a similar increase in staff . In 2012, the turnover rate in Germany was about six percent . Compared to the previous year, the turnover rate across the Group sank to eleven percent . The non-influenceable turnover rate across the Group in 2012 was 3 .9 percent .

EMPLOYER REHAU In 2012, REHAU employed 4,965 female employees . This corresponds to a total of 27 .8 percent . The proportion of women in management positions (starting at team leader level) is 9 .4 percent for the REHAU Group and 5 .1 percent for REHAU Germany . 12 .9 percent of women are on part-time contracts .Overall, six percent of REHAU employees take advantage of flexible working hours . For shift workers, flexible working-hour models are difficult to implement since mechanical processes determine various work processes . In view of the continuing volatile markets, a flexible workforce is becoming increasingly important . For plant employees,

SOCIAL RESPONSIBILITY

THE REHAU TEAMOUR EMPLOYEES’ SKILLS MAKE US SUCCESSFUL

we therefore offer the opportunity to rotate between locations in order to build know-how, process customer orders on time and secure jobs in the long term .

PERFORMANCE AND PAYMENT We compensate our employees worldwide according to a uniform salary structure . By openly communicating our compensation system, we create Group-wide transparency and ensure fair compensation and incentives for all employees . Our employees benefit from an attractive remuneration package with profit- and performance-related compo-nents, as well as additional benefits . The total personnel expenses for the REHAU Group amounted to approximately 790 million Euros in the 2012 fiscal year . Included in this total are wages and salaries in the amount of approximately 636 million Euros, as well as social security and other expenses in the amount of approximately 154 million Euros .

Performance-based remuneration system for TOP MANAGEMENT: REHAU is working on further developing the remuneration system . The performance principle, which has been practiced and proven since the company’s foundation, will in future assume even greater importance . Since January 2013, the top-management remuneration system has been linked more closely with business goals and results . It is expected that from 2015, middle management will be integrated into an analo-gous remuneration system .

1 Share of employees in full-time equivalent (FTE)

FIVE QUESTIONS FOR

34

REHAU wants employees who are not only qualified, but satisfied and motivated too . This is a reflection of how we see ourselves: we are a privately held company . And it’s the foundation of our long-term suc-cess . With our personnel policy, we want to see this claim come to life . We invest in training and advanced training as well as an open feedback culture; we promote work-life balance, and take measures to ensure


REHAU DRIVES PEOPLE. PEOPLE DRIVE REHAUEMPLOYER APPEAL THROUGH A LIVELY AND FAIR CORPORATE CULTURE

the health and safety of our employees . We also nurture a culture of tolerance and mutual respect . As an international company, naturally we benefit in particular from the diversity and the different skills and experience of our employees . The following section examines how we fulfill our social responsibility .

Demographic change is presenting today’s businesses with enormous challenges. The workforce is aging while the proportion of young talent is decreasing. There is a dearth of skilled workers, especially in structurally weak regions.

Dr Schlüter, what do forecasts like these mean for REHAU? We are already experiencing the effects today . More and more young people, mainly from structurally weak regions in Western Europe, are migrating to urban centers; as a result, the supply of young qualified talent breaks down . Therefore we are systemati-cally investing in our trainees; we are also currently strengthening our university marketing to attract new academics . Over the next 15 to 20 years, a good 20 percent of senior staff at REHAU in Europe will retire due to age. Will it be in-creasingly important to maintain or promote employability? This is the right approach, but it’s not the sole solution . Age equi-librium and internal qualification broaden the perspective because different generations bring different backgrounds and different ways of thinking and working to the table . Through established programs for young talent, extensive training as well as much effort and commitment on the part of seasoned executives, we are able to pass on knowledge and values to the next generation .

Nevertheless, the pilot project “employability” is aimed specifically at the older generation’s ability to work. What exactly do you associate with this? We are in the process of creating a strategy to promote employ-ability . Our goal is to take measures which will promote health and make the workplace attractive by the end of 2014 . We want to cre-ate a general framework which will allow us to selectively maintain and promote the employability of employees over 50 . Given the demographic trends, this age group is an important interest group for us . We need to be attractive for all working-age people – for newcomers and those who’ve been with us for a long time . How does REHAU manage to keep this necessary balance? Factors such as work-life balance, flexible working hours, health and retirement benefits, or the attractiveness of the working environment result in higher motivation, more productivity and a stronger identification with REHAU and our corporate objectives . Benefits like these are our chance . We must continue to expand these if we are to attract young people and promote long-term staff loyalty . Expectations are higher. Working environments are changing. How does REHAU deal with this?Working and living environments have changed; they’re more diverse today, more individual, and much more international . As a company, we must be open to these changes and our personnel policy must be geared towards them if it is to be-come more attractive . For this reason, for example, we are accelerating the exchange of international experiences .

Dr . Thorsten Schlüter Head of Human Resources at the REHAU Group

SPORT UNITES Sport is not just about health, it’s about the cohesion of the workforce . At REHAU sites around the world, employees who are interested not just in leading a healthy life but in getting involved in team-building activities, come together . The hobby groups range from table tennis and badminton teams in China to soccer teams in Mexico and Russia to jogging and dance groups in Germany and France all the way to the UK’s “Bicycle Scheme,” which encourages employees to bike to work once in a while .

Accident frequency 1 2009 2010 2011 2012

Locations in Germany 0 .57 1 .19 1 .95 2 .14

REHAU plants worldwide 1 .91 2 .50 3 .27 4 .03

¹) Accident frequency: Number of reportable accidents per 1 million working hours with > 3 days’ absence

35

Only those who feel fit and level-headed can do their best work . That is why we continuously invest in a safe and healthy work environment . To achieve our “Vision Zero” goal of accident-free work, we focus on effect-ive protection measures .

HEALTH AND SAFET Y Uniform policies and procedures for health and safety at work are applied company-wide at REHAU . In addition to purely technical aspects such as improving machine safety, successful accident prevention focuses on risk prevention, for non-measurable variables, too . Our accident prevent-ion program contains specific measures, which include findings from previous accidents and near accidents . Since 2010, accident indicators reveal a slightly rising tendency . Analyses have shown that this develop-ment is due to the high number of new hires and insufficient training . With more intensive training and instruction at the production sites, we want to counteract this development . Though the figures are not as good as in previous years, we continue to be among the best in terms of accident prevention . In Germany, industrial companies reported an aver-age of four times as much downtime and almost eight times as many accidents as REHAU . Nevertheless, it is our goal not only to achieve the top values of 2009, but to improve on them .

One tool we use to sensitize plant employees even more to the impor-tance of preventing and avoiding all accidents is our in-house safety competition . Conceived as an annual and long-term competition (ten years), it offers the plant sites the opportunity to compete against each other . In 2012, the plants in Jakarta (Indonesia) and Pune (India) and the tool factory in Rehau emerged as the competition winners . The Pune plant also received the Safety Award in the long-term competition .


FOR A LIFETIMEEMPLOYEE APPRECIATION IS SEEN THROUGH ACTIONS

HEALTH MANAGEMENT High performing employees are the foundation of our success . There-fore, REHAU is proactive worldwide in its promotion of good health . With a special bonus program, we encourage participation in blood donation campaigns, preventive vaccinations, consultations and tests as well as preventive health courses . Also held regularly at REHAU sites are Health Days, allowing employees to take advantage of offers of medical prevention and the promotion of their own health . Trainees are offered the trainee-fit program, a two-day seminar dealing with age-appropriate health topics . Additionally, our company doctor holds regular consultations and administers vaccinations free of charge . And it is not just our employees’ physical health that is important to us, but their mental well-being, too: Since 2012, the REHAU ACADEMY has been offering executives in Germany the opportunity to participate in workshops dealing with psychosocial stress . We communicate all of our health-promotion activities regularly in the employee newsletter, intranet (health portal) and via newsletters .

Thomas Bunke, responsible for

health management at REHAU

“Now more than ever, we need to focus on the

issues of mental stress and prevention. It’s

our job to better integrate existing successful

programs across the entire Group. With this goal in mind, we plan

to have developed a new health management strategy by 2014.”

Blanca Estela Nuñez Lopez,

team leader at the plant in Celaya, Mexico

„I started at REHAU as a packer – now I am

responsible for 17 employees. Through in-

house training and with the support of a manager who supports and

challenges me, I was able to develop quickly.“

6.19

7.25 7.82

5.51

2009 2010 2011 2012

1,141 1,173 1,3011,039

11,127 11,166 11,721

9,380

Hours of training per employee

Number of training sessions

Number of participants

Hours of training per employee

36

Learning something new is very motivating – for executive staff just as much as for the career entrants . REHAU furthers its employees with numerous training and advanced training programs . Responsible for this is the company’s in-house REHAU ACADEMY . The international team develops training programs and ensures the establishment of on-the-job development and training measures . Twice a year, the academy board comes together to set the strategic direction of the REHAU ACADEMY and to examine the content of the work . Due to eco-nomically strained times in 2012, we were forced to severely limit our Group-wide training programs . In particular, we were unable to offer language qualification and professional development programs to the usual extent . The good news: we used this period of cost restriction to adjust our strategy and improve the structure of the REHAU ACADEMY . We also optimized REHAU leadership-related development programs in order to better align personnel development and the REHAU leadership philosophy with future needs .

E-LEARNINGIn 2012, we implemented worldwide e-learning, a range of technology-based teaching and learning methods . In the first year, we offered 20 e-learning courses in various language versions . For the growing Chi-nese market, we have just developed an e-learning portal in Mandarin .


LEARNING NEVER STOPS AT REHAU AMBITIOUS TRAINING AND ADVANCED TRAINING PROGRAMS

Over the entire period of 2012, our employees successfully completed 8,505 courses worldwide .

FEEDBACK CULTURE IN FOCUS Employee surveys (Great Place to Work, 2011) and dialogues illustrate that managers play an increasingly important role in Learning and De-velopment . Younger employees in particular request regular feedback from their managers and the opportunity to evaluate their managers in turn . To implement such a culture of active feedback, REHAU has been developing and successfully implementing 360° feedback and feedback training in Germany since 2012 .

ASIA In countries that have a relatively high turnover rate, training opportu-nities are an important tool to increase loyalty to the employer . In the growth markets of China and India, REHAU has introduced several pro-grams that offer highly qualified staff the opportunity to develop profes-sionally . The Junior Leadership Development Program and Managerial Leadership Development Program, for example, prepare employees for leadership roles . In addition to leadership skills and methods, we find it increasingly important to teach social and intercultural skills .

OUTLOOK By 2015, we want to significantly extend the range of the REHAU ACADEMY and better align it with the company’s international orientat-ion . To this end, we will increasingly rely on external trainers in the future . Our goal in all measures: to increase the benefits for employees and the company .

2009 2010 2011 2012

35 42 56 54

175 185212 221

556 571599

637

Number of apprenticeships

Total number of trainees

of which are new hires

of which are completing dual-study programs

37

EDUCATION There is no future for a company without new qualified recruits . In particular, REHAU considers quality and variety of in-house education important . In total, we offer 18 different apprenticeships in Germany and six in Austria . In 2012, 637 young people completed their training at our company’s German locations . This represents an increase of six percent over the previous year . 221 young people began their first year of training in 2012 and in the same year, 92 .5 percent of trainees were offered a permanent position . In the absence of an available position, a special budget allows for a temporary employment contract for the trained candidate .

In addition to the standard apprenticeship, we offer other attractive entry-level positions leading to a recognized professional qualification: In combination studies, young people can combine their training with a bachelor’s university degree . The dual degree offers university educat-ion with in-depth, hands-on experience . In 2012, 54 students across Germany selected this course of study . Similar training schemes are also available at REHAU in France and Austria . From 2009 to 2012, 53 young people completed their training in Austria; in France, there are around 30 every year .

In 2010, with an investment of around three million Euros, REHAU built the region’s largest training center at its headquarters in Rehau . In 2012, it served as the “home port” for 116 business and 98 technical trainees . We also aim to inspire more female trainees than ever before to take up traditionally male jobs . In an effort to spark interest, each year on “Girls Day”, REHAU offers girls the opportunity to discover tech-nical occupations for themselves at various German plants .

Outside of Europe, too, apprenticeships are becoming increasingly im-portant for our company . In India, for example, the opportunities are similar to those offered in Germany . In China, REHAU has been involved in a joint project with the “German Chamber of Commerce in China” and local training centers in Taicang near Shanghai since 2011 . Cur-rently seven young people are completing their apprenticeship at the REHAU Taicang plant .

Vanesa Carril Ferreira, trainee at REHAU

REHAU ASIA / AUSTR ALIASince 2008, we have provided Chinese employees – depending on their function and duration of affiliation with REHAU – with an “allowance towards the education of children .”

REHAU CENTR AL EUROPEAt our site in Rehau, meetings with local nurseries and kinder-gartens led to the extending of opening times . Our company also sponsors a multigenerational house and participates in the continuous development of schemes to reconcile work and family life (“rent-a-granny,” babysitting, help with homework, etc .) .

REHAU NORTH AMERICAAt the Celaya plant site in Mexico, REHAU supported the construct-ion of a child care center .

38

Demographic change and dynamic working and living environments influence the daily work of our employees – and present REHAU new challanges . As a cooperative and responsible company, it is part of our duty to provide a general framework for the balancing of work and private life . With this goal in mind, we are constantly adapting our personnel management to fit each stage of our employees’ life situation .

Suggestions from our employees help us to implement the right measures . In 2011, we initiated an idea contest in Germany, in which employees were invited to submit their ideas on the topic of balance between work and family . Drawing from almost 150 ideas, we set up two parent-kid rooms in Rehau and Erlangen and a part-time trainee program for young mothers .

PARTNERSHIP FOR SUCCESS We hope our employees will bring their experience and skills into our company for many years . Within the scope of operational feasibility, REHAU is therefore continuously seeking to increase the individual performance and personal satisfaction of our employees at all stages of their careers – by creating attractive and flexible working condi-tions and responding as needed to different situations . This includes further developing family-friendly offers which benefit and are available for all organizational units across the Group . The response has proven us right: In 2011 and 2012, 149 male employees in Germany used the opportunity to go on parental leave; most of them split the time to actively witness different stages of their child’s life . Our employ-ees also gladly take advantage of flexible working hours, home office, 70 different part-time work models as well as the possibility of job sharing .

In the area of production, work is primarily carried out in multiple shifts at REHAU . Here again we strive to take into account our employees’ wishes as much as possible and to examine each part-time model individually . In addition, we offer different options for the care of close relatives . Since 2012, REHAU in Switzerland has been a member of the organization “profawo Zurich,” which offers our staff professional, family-related solutions . In general, REHAU wishes to further simplify the conditions for family care, dismantle barriers and further sensitize senior staff to this issue .


A FAMILY BUSINESS FOR FAMILY LIFEINDIVIDUAL MODELS THAT FIT THE EMPLOYEE’S LIFE SITUATION

CHILD CARE CLOSE TO WORK REHAU supports child care facilities at German and international company locations to ensure that there is sufficient child care .

2009 2010 2011 2012

21,186

24,66925,698 26,163

1.53 % 1.64 % 1.61 % 1.58 %

2.863.13

4.614.32

Importance of the suggestion system

Participation rate

Submitted suggestions for improvement

Savings [in million Euros]

39

Even the smallest ideas can promote a company . And who knows bet-ter than our employees what improvements are needed for an efficient workflow? By promoting internal idea management, REHAU aims to actively involve employees in the design of company-wide work pro-cesses and the optimization of the entire Group . Comprehensive inter-nal marketing on the intranet and staff newspaper has already resulted in numerous constructive suggestions . This proves that our employees have recognized the importance of cost- and resource-saving produc-tion – both to protect our environment and remain competitive . Thanks to improvement proposals for waste prevention, ideas for saving water or the in-house processing of painted materials, we have been able to save significant amounts of raw material and financial resources . This suggestion system is all the more significant because these measures initiated by employees can usually be transferred to other plants around the world .

Different countries have different approaches for the promotion of ideas and the recognition of employee performance . In addition to monetary rewards, North America and Asia, for example, have created the “REHAU PRIDE” initiative, which provides annual awards in various cat-egories . For ideas on energy conservation, process improvement or the optimization of application systems, employees receive points which they can redeem in a prize catalogue .


MY IDEA FOR REHAUIDEA MANAGEMENT

POTENTIAL AS PROFIT.Stefan Galeta is an employee at the Austrian plant in Neulengbach . With his idea to replace the existing formulation for the production

of REHAU shower partition profiles with a different mix, he proved how much potential there is in polymers – and in our employees . After intensive testing, his suggestion proved to be a huge gain for the company . In Austria and at the Germany site in Feuchtwangen, Galeta’s idea led to production savings amounting to several tens of thousands of Euros . In appreciation of this, management and super-visory board representatives presented the enterprising employee with a bonus of 8,300 Euros . In the picture (left to right): Rafael Daum, CEO of South East Europe, Ingo Krendelsberger, Head of Op-erations / HR Southern Europe, Rainer Schulz, CEO of REHAU Group, Stefan Galeta, Material Planner, Jobst Wagner, President of the REHAU Group, Gerd Feiertag, Materials Manager and Peter Fröschel, Plant Manager .

40

Being a reliable partner for society is both a commitment and a concern for REHAU . We support growth initiatives and network with local authorities, schools and colleges . We choose to support educational and social issues for two reasons: for the benefit of public spirit and for the benefit of our company . Our selection criteria for the provision of funding are innovativeness, sustainable results, targeted implement-ation, and a high level of social significance in the vicinity of our sites . Worldwide, we are committed to ecological, social and cultural issues in various areas of society . It is our goal to take on long-term social


SOCIAL COMMITMENTPROMOTING WHAT CONNECTS US

responsibility, rather than relying on ad hoc missions that have no last-ing effect . Our support comes in the form of donations, sponsorships, the promotion of foundations and of self-initiated projects . We focus among other things on fields of action where we can contribute our specific knowledge and core competencies . At the same time, it is also our ambition to make art and culture accessible and tangible; therefore, for our employees and all others interested, we also do a great deal beyond our actual fields of action .

TREES FOR PUNE IN INDIA The air quality in major Indian cities is very poor . There is a huge dearth of natural catalysts – trees, considered the lungs of nature, purify the air even in highly urbanized areas . With its tree-planting initia-tive, REHAU supports the city of Pune’s campaign “Green Cover .” By 2013, 100 new trees are to be planted on the plant’s premises in India’s ninth larg-est city . The tree-planting campaign is part of the Environmental Management Program, which REHAU implemented in 2012 at the plant in Pune .

WINDOW PROFILES FOR SCHOOLS IN ROMANIA The Swiss boarding school Alpinum Zouz has led relief efforts in Romania for many years . The corps of volunteers, a group of volunteer students and their teachers, has been doing all it can to ensure that schools in remote areas are renovated and brought up to modern standards . In the past, REHAU has repeatedly lent its support by providing window profiles and labor . The young volunteers are planning another relief effort for 2013; this time, the focus is a hospital in the eastern Romanian city of Faurrei where we would like to participate again in the provi-sion and installation of high quality window profiles .

41

Ms Obama, what drives you?The young people in the Siaya region of Kenya sometimes do not even have electricity in their simple homes . If you have nothing to eat or you can’t go to school, it‘s simply a matter of developing survival strategies . It’s my intention to develop concrete perspec-tives because only then can young people make something of their lives on their own – and we are counteracting the trend of migration to the big cities long term .

REHAU is a partner of your foundation. What’s special about this collaboration?I am pleased to say that in REHAU, I have found a powerful voice for “Sauti Kuu .” With REHAU at our side, we have a competent partner who understands our vision . And backing up the actions is a friendly, open and purposeful dialogue . In the coming years, we will consistently and persistently improve the lives of our young people in Kenya . REHAU lends the “Sauti Kuu” foundation support through its project experience, know-how, system solut-ions as well as financial assistance . Among other things, REHAU is working with project managers and young people in Kogelo to improve living conditions decisively and sustainably through the use of proprietary product innovations . “Help for self-help“ is our motto .

Which specific measures do you mean?REHAU meets with “Sauti Kuu” employees to pass on its know-ledge of energy efficiency and alternative energy sources . In order to ensure a higher quality of life for local people and to protect nature, REHAU developed a micro biogas system, which is fuelled by cow dung . With the generated gas flame, people can cook in their huts, without having to clear woodland or produce extreme amounts of smoke in their homes . We firmly believe we will be able to significantly improve the lives of people with the biogas system . It’s another important step towards making rural areas attractive living places in harmony with nature .

REHAU has been a partner for the foundation “Sauti Kuu” (Kiswahili for “Powerful Voices”) since June 2012. With “Sauti Kuu,” initiator Dr Auma Obama, who has worked for many NGOs in recent years. is taking on one of Africa’s biggest problems: the exodus of young people from rural areas to big city slums. Their desire for a better life in the city often goes unfulfilled and financial independence remains an unattainable goal. The foundation helps young people in western Kenya to grow personally and with self-confidence so that through economic independence they can free themselves perman-ently from the cycle of poverty. The foundation’s fundamental principle is to use the resources already available to the country and its people.

Dr . Auma Obama Initiator of the foundation “Sauti Kuu”

A CONVERSATION WITH

42


CULTURAL COMMITTMENTART BROADENS THE MIND

Art and economy are highly correlated . Without the support of found-ations or industry, many stages for artistic activity would be smaller . On the other hand, by offering a new way of looking at ourselves and our surroundings, art supports the economy in its search for innovat-ive ideas . REHAU supports cultural activities around the globe – from the Hof International Film Festival to France’s “Orchestre national de Lorraine” in Metz . At our sites, we promote diverse cultural events on a long-term basis and in doing so contribute to the attractiveness of the working and living environment of our employees and their families .

REHAU ARTREHAU ART is a venue for dialogue, art and history . Each year, the German headquarters in Rehau attracts thousands of visitors with its art exhibitions and cultural events . Thanks to a varied range of guest appearances by renowned artists, our culture and communication center has become known far and wide . It also houses an art gallery in a landscape of industrial architecture; shown here on permanent exhib-ition, in a space totaling 750 m², are the works of the world-renowned artist Franz Gertsch .

In 2012, REHAU ART held the exhibition “Art Pieces” with exhibits from the former porcelain factory Zeh, Scherzer & Co . Roughly 1,500 people visited the exhibition, which displayed a cross-section of creative work by the Art Department that was established in 1908 .

Since 2008, we have been sponsoring the “Orches-tre National de Lorraine“ in Metz, France . In a raffle, employees at our location in Morhange can win tickets to concerts . This is our contribution towards making culture accessible to everyone .

In the Zhendai Himalayan Art Center in Shanghai, REHAU supported the international art exhibition “Art of Writing” in November 2012 . The exhibition of German and Chinese artists is considered as a platform for international artists who wish to bring the spectator closer to the eastern way of writing .

43

Education is an important investment for the future – this applies not just to society as a whole, but also to REHAU . Only with dedi-cated young researchers can we as an unmitigated technology-driven company secure our position as an innovation leader . For this reason, we actively promote educational initiatives .

PROSPECTS AFTER GR ADUATION We would like to introduce teenagers, young graduates and young professionals to the career opportunities at REHAU . For this reason, we participate in regional and national initiatives such as “Girls Day” and “Young Scientist .” REHAU also shows great commitment in its super-vision of end-of-school work, university theses as well as interdiscipli-nary research projects . Often in this way we gain students around the world for our demanding internships in different disciplines – such as those offered at the REHAU sites in Brazil . In close cooperation with the Brazilian universities, we awarded the coveted internship positions to the best-suited candidates; the contract period is at least one year . Numerous former interns have taken on permanent employment posi-tions upon completion of their internship .

OUTSTANDING TALENT With the “REHAU Economy Prize” and “REHAU Technology Prize,” which REHAU has been awarding for several years, we reward students for good academic work . The calls for proposals, which we have communicated internationally since 2012, address, for exam-ple, current issues of plastics technology from the specific fields of “Materials,” “Surface techniques” or “Processing methods of plastics technology .” Among other things, the REHAU Economy/Technology Prize is presented at the headquarters of the Group’s administrative headquarters in Muri / Switzerland . The prize, which is aimed at top universities, is represented by a jury of professors from the univers-ities of Bern, St . Gallen, Erlangen-Nuremberg, Bayreuth and Linz as well as the president of the REHAU Group, Jobst Wagner and COO, Dr Stefan Girschik .

In 2012, along with Hettich, one of the world’s leading manufacturers of furniture fittings, REHAU awarded the “International Design Prize” – for the ninth time . The prize, which is awarded twice a year, has in a short time evolved to become one of the most well-known student design prizes in the world . With this prize, we call on students to design smart furniture solutions for the living room, office or kitchen; these

solutions stand out through their attractive design, comfort and their use of innovative technology .

REHAU - COLL ABOR ATING WITH UNIVERSITIES Such future-oriented youth development schemes build long-term partnerships with universities and academies . Three examples: REHAU supplies the Rapperswil Technical College in Switzerland with free materials for practical applications and research projects in the field of landscape architecture . The Winterthur Technical College, also in Switzerland, receives regular training for apprentices free of charge . Since 2012, REHAU has supported the master’s degree “German Indian Management Studies (GIMS),” coordinated by the Bavarian-Indian Center for Business and University Cooperation BayIND, and initiated in close coordination with the Indian College in Coimbatore and the Upper Franconian Hof University of Applied Science . The challenging study program was designed for Indian women and men with a bachelor’s degree in an engineering degree program, who among other things wished to gain experience abroad through advanced studies and internships . This is a unique opportunity – for REHAU, too: we benefit from the pilot projects through new perspectives and insights which the Indian students contribute while they are collaborating with us .


EDUCATION – THE KEY TO THE FUTURE REHAU ENABLES EXCELLENCE IN SEVERAL FIELDS

The REHAU Economy/Technology Prize, presented at the Group’s head-quarters in Muri, Switzerland, is aimed at top universities in Germany, Austria and Switzerland. Winners of these awards were the theses of three female students from the field of economics.

REHAU AG + Co, Rheniumhaus, 95111 Rehau, Germany

AV0700 EN 09 .2013

rehau group sustain ability report · services will pledge to comply with rehau’s sustain-ability...

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