Bryan Trotter
Health, Safety and Environmental Manager, Hillsboro/USA

Sustainable Corporate Management

We are building the solar world! With our products, we cut down on the use of resources, protect the climate and make possible regional, socially equitable development because solar energy can be employed in a decentralized way without access to the national grid. Sustainable alignment is thus part of the core of SolarWorld and has constituted our very identity since our inception in 1998.

Companies make a valuable contribution to the wellbeing of society – as long as they pursue their economic activities comprehensively and responsibly. This is why our commitment does not end with our products; on the contrary, it rather begins there. We are not just active in a “green” industry but we push ahead the sustainability debate. For years, we have documented our economic, ecological and societal performance for our stakeholders and have set standards in doing so. We use concrete examples to show how sustainability contributes to corporate success and creates added value for society.

Reporting on our sustainability performance is organized according to the framework of the Global Reporting Initiative (GRI). As a member of the Global Compact of the United Nations, SolarWorld also publishes an annual Communication on Progress (COP) which is contained in the details on sustainability performance. Furthermore, SolarWorld also reports along the lines of the KPIs for ESG of EFFAS/DVFA.

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Environmental protectionName and description200920102011

GRI: EN3+EN4;
ESG: E01-01
(Scope I)

Energy: Total energy consumption (in MWh)

As in the previous year, growth (under-proportionate to production increase) is expected. // Strong production increase  Konzernweite, nominale Jahresendkapazitäten – Ausbau 2010 (in MWp) production figures are not disclosed.

368,166 e

467,429 e

GRI: EN8;
ESG: E28-01
(Scope II)

Water: total water withdrawal (in m3)

1,115,009 e

1,429,148 e

GRI: EN21;
ESG: E28-04
(Scope III)

Water: waste water injection (in m3)

902,912 e

1.345,832 e

GRI: EN16;
ESG: E02-01
(Scope I)

Emissions: total GHG emissions in (tCO2eq.)

Estimate // with strong production increase  Konzernweite, nominale Jahresendkapazitäten – Ausbau 2010 (in MWp)

139,285 e

179,137 e

GRI: EN20

Emissions: NOx, SOx and other air emissions (in tonnes)

Estimate // with strong production increase  Konzernweite, nominale Jahresendkapazitäten – Ausbau 2010 (in MWp)

16

29

GRI: EN22

Waste: total production waste (in tonnes)

Estimate // only in absolute figures as production figures are not disclosed (strong production increase).  Konzernweite, nominale Jahresendkapazitäten – Ausbau 2010 (in MWp))

13,010 e

20,724 e

SolarWorld;
GRI EN26

Soil sealing: sealed area (in m2)

Only US sites; including SolarWorld Korea Ltd

n.s.

141,663

ESG: E33-01
(Scope II)

Environmental compatibility: share of ISO 14001 certified locations (weighted by average capacity)

Indicator dropped in year 2009 due to U.S. sites not yet having been certified, at the same time increased production there.

64 %

100 %

GRI: EN27

Packaging: material in tonnes

860

996,16

GRI: EN28

Environmental violations: sanctions due to environmental violations

0

0

0

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Employees Name and description 2009 2010 2011

GRI: LA1

Employment type: share of temporary employees

26.7 %

29.2 %

GRI: LA 2;
ESG: S01-01
(Scope I)

Employee turnover: share of employees leaving the company per year

So far no differentiation between full time and part time

9.3 %

8.2 %

GRI: LA4

Collective agreements: share of employees covered by collective agreements

59 %

53 %

GRI: LA10;
ESG: S02-02
(Scope I)

Training and professional development/upskilling & qualification: average training expenditure per employee (in €)

Expenditures for training by external providers have so far not been included. A split between temporary staff and employees is not possible for U.S. data.

356.89

312.21

GRI: LA13;
ESG: S03-01
(Scope I)

Age structure of workforce: in ten-year steps

Not measured per FTE

≤ 30: 21 %

30 – 40: 30 %

40 – 50: 30 %

> 50: 19 %

≤ 30: 28 %

30 – 40: 29 %

40 – 50: 28 %

> 50: 16 %

GRI: LA7

Absenteeism: total missed worktime due to sick leave/
total planned worktime

3.4 %

3.0 %

GRI: LA7

Accident rate (in ‰): number of accidents/number of hours worked (i.e. per 1,000 employees incl. temporary employees)

14.3

15.2

ESG: S11-01
(Scope II)

Relocation of jobs due to restructuring: total costs (in k€) including compensation payments, severance pay, outplacement, recruitments, training, consulting

These data are not yet collected in this aggregate form, but there are figures from the U.S. (incl. severance pay, outplacement, extended health insurance). The rise from 2009 to 2010 is due to recruitments in the course of the ramp-up of the 500 MW cell production as well as the 300 MW module production in Hillsboro.

427

507

GRI: LA13

Diversity: Share of women in total workforce

Women‘s rate dropped between 2007 and 2008 due to shift of wafer and cell production in the U.S. from Camarillo (solar and semiconductor market with a high share of women) to Hillsboro (solar and semiconductor market with low share of women) // by now groupwide share of women back to almost the level of 2007.

22 %

23 %

GRI: LA13

Diversity: share of women in management positions

13 %

15 %

ESG: S08-01
(Scope I)

Pay: total amount of all bonus payments (in m€)

We do not grant stock options, but we pay a profit-oriented participation model (GOMAB). Futher data on this indicator are so far not available.

9.8

17.4

GRI: HR4

Discrimination: number of documented incidents

0

0

0

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Legend

e:Data marked with an „e“ in the reporting are estimates.
n.s.:not specified
GRI:Indicators of the Global Reporting Initiative
ESG:Key Performance Indicators or Key Performance Narratives for Environment, Society and Governance der EFFAS/DVFA
SolarWorld:Additional indicators selected by SolarWorld

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Compliance and society Name and description 2009 2010 2011

ESG: V10-03
(Scope II)

Effect of subsidies: share of business activity in markets with feed-in tariffs or regulated pricing

The shipment share in markets without feed-in tariff or regulated pricing is still below 1 %.
Benchmarks: heavily subsidised markets such as nuclear energy, German coal, EU agricultural market

100 %

100 %

GRI: EC4

Finanzielle Zuwendungen der öffentlichen Hand (Investitionszuschüsse und Forschungszuschüsse)

12,274

16,727

ESG: G01-01
(Scope II)

Donations to political parties in (k€)

40

0

0

GRI: EC1

Other donations in (k€)

264

392

SolarWorld

Regional development: Solar2World project scope (in kWp)

114

161

ESG: V01-01
(Scope I)

Litigation risk: expenditures and fines for lawsuits and court cases regarding anti-competitive behavior, Anti-Trust, monopoly behavior

0

0

GRI: SO2,
ESG: V02-01
(Scope I)

Corruption: share of business activity in regions with corruption index of below 6.0

29 %

31 %

GRI: SO4

Ascertained corruption incidents

In the reporting period, a corruption incident was ascertained for the first time. The incident did not occur inside the SolarWorld Group but at a joint venture. According to our zero tolerance principle, we immediately drew personnel consequences and initiated a criminal prosecution.

0

1

GRI: SO8

Sanctions due to violation of legal provisions

0

0

0

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Customers and products Name and description 2009 2010 2011

GRI: PR5,
ESG: V06-01
(Scope II)

Customer satisfaction: share of satisfied customers among respondents

Aggregate number (trade: wholesalers, specialist partners): The satisfaction analysis (wafers: cell producers) should have come to hand in the summer but will now be performed in 2011.

85.4 %

85.8 %

ESG: V03-02
(Scope I)

Earnings from new products: with a life cycle below 12 months

These data refer only to SolarWorld AG. They are not yet available for the
entire group.

35 %

30 %

GRI: PR1

Health and safety aspects of the products: share of product recalls for safety or health reasons in total number of products sold

Hardly lost any customers in the past but rather gained some continuously; in the market for 12 years

0

0

ESG: V05-01
(Scope III)

Customer loyalty: share of new customers (specialist partners)

End of 2010: 506 specialist partners

20 %

7 %

ESG: V05-03
(Scope III)

Customer loyalty: market share (total)

5 % e

5 % e

GRI: PR9

Sanctions due to product and service conditions

0

0

0

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Supply chain Name and description 2009 2010 2011

SolarWorld

Certification: ISO 9001 certification of suppliers

70 % e

90 % e

SolarWorld

Certification: ISO 14001 certification of suppliers

30 % e

40 % e

ESG: E23-01
(Scope III)

Production loss: difference between planned and actual production due to material bottlenecks (in %)

0

0

0

ESG: E23-02
(Scope II)

Production loss: monetary effects of production loss due to material bottlenecks (in €)

0

0

0

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Innovation Name and description 2009 2010 2011

ESG: V04-01
(Scope I)

Innovation: total R&D expenditure (in m€)

12.0

19.2

ESG: V04-12
(Scope I)

Innovation: total investment in research on ESG relevant aspects

Our entire business (solar energy) is ESG relevant.

100 %

100 %

100 %

SolarWorld

Patents: Number of inventions filed in the last 12 months

28

51

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Legend

e:Data marked with an „e“ in the reporting are estimates.
n.s.:not specified
GRI:Indicators of the Global Reporting Initiative
ESG:Key Performance Indicators or Key Performance Narratives for Environment, Society and Governance der EFFAS/DVFA
SolarWorld:Additional indicators selected by SolarWorld