Zumtobel Group Sustainability Report - THORN Lighting

Through light, we care.Sustainability Report of the Zumtobel Group2009 / 10

2 3Artificial lighting accounts for 19 % of the global demand forelectrical energy. So intelligent lighting has a big part to playin achieving greater energy efficiency.

4 5Light determines the rhythms of all life on earth;it’s the force behind all growth and development.

Light means life – it’s the basis of human well-being.Good light has a lasting impact on our health.6 7

为 了 这 颗 行 星 及 其 居 民 的 需 求 , 奉 献 杰 出 的 照 明 创 新Répondre aux besoins de la planète et de sa population avec desinnovations très pointues dans le domaine de l’éclairageMit innovativen Lichtlösungen begegnen wir den Bedürfnissenvon Mensch und UmweltInnovazioni illuminotecniche intelligenti:la nostra risposta alle esigenze del pianetae dei suoi abitantiAddressing the needs of the planet and its people withsuperior innovations in lightingHållbara innovativa belysningslösningar som bådetillgodoser människans behov och tar hänsyn till vår jord8 9

The basis for our sustainability reportingContents»»This is the first Sustainability Report published by the Zumtobel Group, and it documents our mainactivities in this area.The structure of the report takes its lead from the guidelines of the Global Reporting Initiative G3( see “Index in line with the Global Reporting Initiative”, p. 128 ) and from the findings of a stakeholdersurvey conducted in spring 2009 ( Ûsee “Sustainability in the Zumtobel Group / Dialogue with stakeholders”,p. 32 ).The quantitative data was largely drawn from the SAP database software that is used across theZumtobel Group. This applies, above all, to key financial indicators and data concerning employees.In addition, data was obtained by direct enquiries addressed to central functions and local contacts.The report relates – unless otherwise indicated – to the Zumtobel Group and its two segments inthe 2009 / 10 financial year. Comparable data from the previous year is available for most indicators.The Group’s financial year begins on 1 May and ends on 30 April of the following year.The scope of consolidation for the Lighting Segment is generally its European plants and / or activities,while for the Components Segment it generally includes all production plants worldwide. Our aim is toprogressively expand the scope of consolidation.The report is available for download as a PDF file on the Zumtobel Group website at www.zumtobelgroup.com/de/corporate_responsibility.htmThe website also provides links to further information,primarily on the websites of the Group’s brands: Zumtobel, Thorn, Tridonic and Ledon.From now on, the Zumtobel Group intends to publish an annual Sustainability Report.12 Foreword14 Company profile24 Sustainability in the Zumtobel Group38 Sustainable lighting solutions50 Product stewardship70 In-process environmental protection88 Employees100 Supplier management106 Sponsorship112 Facts and figures128 GRI Index138 Imprint10 11

ForewordDear Readers,The 2009 / 10 financial year was a key yearfor corporate responsibility at the ZumtobelGroup. In a process spanning several months,we identified the numerous sustainabilityactivities already in place at the Group andfrom them forged a sustainability strategy.The first joint Sustainability Report publishedby the Zumtobel Group represents an importantmilestone in our work in this direction.At the same time it sounds the starting gun forour efforts to achieve the goals we have setourselves in our four fields of action: Market,Employees, Processes and Integrity.On the pages of this report, the ZumtobelGroup sets out the meaning of its sustainabilitymission – “Through light, we care” – for theoutside world in the shape of our markets,customers and investors, as well as for our ownworkforce. Innovative lighting solutions areour core competency and as we deliver thesesolutions we aim to take consistent account ofhuman needs and the needs of our environment.Sustainability in everything from ourcore business …Our deliberate pursuit of sustainable developmentis nowhere more evident than in ourcore business. Through its brands, the ZumtobelGroup offers solutions for the optimumuse of light in both the indoor and outdoorsectors. Thorn, Zumtobel and Tridonic usetheir knowledge of lighting applications andthe latest advances in lighting technology to arriveat the ideal balance between energyefficiency and light quality.The main focus of our efforts in pursuit ofenergy efficiency is on reducing energy requirementsduring the service life of a luminaireembedded in an integral lighting solution. Thisis the phase during which the greatest savingscan be achieved. Consequently, we are increasingour use of electronic or electronicallydimmable ballasts and banking on LEDs as thetechnology of the future. At the same time, ourbrands are also tasked with raising awarenesslevels among customers.The EU Ecodesign Directive, which took effecton 1 September 2009, will gradually ban thesale of incandescent light bulbs. In spring 2010,the, the Zumtobel Group responded by launchinga range of innovative and energy-efficientLEDON LED retrofit lamps. Through thisstep, the Zumtobel Group is playing an activepart in supporting compliance with the KyotoProtocol, because 19 per cent of the electricitygenerated worldwide is consumed by artificiallighting. Commercial property and outdoorlighting currently account for a good two-thirdsof that amount.… to our production operations andsupply chainThe sustainability strategy that we have drawnup also provides a frame of reference for ourCode of Conduct and the relevant Groupguidelines, management systems and continuousimprovement processes in the areas ofQuality, Environmental Protection, OccupationalHealth & Safety and Risk Management.This will support our efforts to ensure efficiency,quality and good governance. In somecases, our suppliers are also subject to thesame provisions.Setting the stage for the futureThe Zumtobel Group’s engagement in thisrespect is founded on the conviction that onlyresponsible corporate leadership can take thecompany forward into a bright future. This isparticularly clear in times when we must expectto see prices for certain raw materials and electroniccomponents rise and when the constructionsector has yet to recover from the financialand economic crisis. While the Zumtobel Grouphas been able to turn in a respectable performancedespite the crisis, the economic outlook isstill not stable.Nevertheless, we are continuing to invest innew products and technologies and in LEDs inparticular. This is the time when the stage is setfor the future and we must align our approachwith the market environment of the future. Inthis context, the topic of energy efficiency, reflectedin high-efficiency lighting, energy-efficientlight sources and intelligent control systems,remains an important long-term growth driver.We would like to thank all of our employeeswho have made a crucial contribution to thesuccess of the Zumtobel Group and its engagementfor greater sustainability. And we wouldalso like to thank all our customers, suppliersand shareholders for the trust they invest in us.I hope you’ll find that the Zumtobel Group’sfirst-ever Sustainability Report makes for interestingreading.Yours sincerely,Dr. Harald SommererCEO Zumtobel Group12 13

1. Company profile1.1. IntroductionThe Zumtobel Group’s mission“We aim to be the world authority on lighting.As a Group of leading lighting brands andcompanies we provide complete professionallighting solutions, luminaires, lighting managementand lighting components for indoor andoutdoor applications.Driven by innovation and quality in all ourbusiness processes, we aim to be the firstchoiceglobal partner for our customers.As we exceed the expectations of our customers,we offer best-in-class products andservices while remaining fully aware of ourresponsibility to the environment and society.”1.2. The Zumtobel Group –a global player in the lightingindustryThe Zumtobel Group based in Dornbirn,Austria, ranks among the global market leadersin the lighting industry. With its three internationallyestablished brands, Thorn, Zumtobeland Tridonic and the recently foundedLedon brand for the LED lamp business, in the2009 / 10 financial year the Group employeda workforce of 7,329 and posted consolidatedrevenues of EUR 1.1 billion.Innovation and quality across the GroupThe Zumtobel Group supplies its customerswith luminaires for professional lightingand integrated lighting solutions for indoorand outdoor applications. With its controlgear, lighting management systems and LEDmodules, the Group is one of the world’s topplayers.Driven by innovation and quality in all its businessprocesses, the Zumtobel Group is aimingto be the leading company in the worldwidelighting industry and the first-choice providerfor its customers. The Group’s primary focusis on energy-efficiency and optimum lightingquality. Since 2001, the Zumtobel Group hasbeen progressively expanding its LED activities.By founding Ledon Lamp GmbH in 2009,the Group first entered the B2C (business-toconsumer)sector.The Group’s global presence currentlycomprises 22 production plants on fourcontinents, as well as sales companies and salesrepresentatives in over 70 countries. Most ofthe production plants are located in rural areaswhere the Group is a major employer. Atthe same time, the Zumtobel Group also hasstrong ties with its home location in Dornbirn,in the Vorarlberg region of Austria.From family firm to listed companyThe present-day Zumtobel Group originatedas Elektrogeräte und Kunstharzpresswerk W.Zumtobel KG, which was founded in Dornbirnin 1950. For over 50 years, the Zumtobelfamily has pursued the continuous expansionof the company’s business, particularly in theKey financial indicators, 2009 / 10 financial yearGerman-speaking markets, through a mixtureof organic growth and minor acquisitions.The founder, Dr. Walter Zumtobel, was succeededat the helm by his two sons Jürg andFritz Zumtobel.The company has been a stock corporationsince 1976. With the acquisition of the Thornbrand in 2000, the family-run business beganto step up its international focus. The initialpublic offering came on 12 May 2006 whenthe company was first listed on the ViennaStock Exchange. To this day, the Zumtobelfamily remains the largest single shareholder,with a 35 % stake in Zumtobel AG. The remaining65 % of the shares are in the free float,with the majority being held by institutionalinvestors and a number of private individuals.RevenuesEUR 1,117.3 millionAdj. EBITEUR 51.5 millionNet income (loss) *– EUR 67.0 millionEquity EUR 351.6 million; equity ratio 35.8%Employees **7,329 (of which 1,700 at company headquarters in Dornbirn)plus 147 apprentices* Net income for 2009 / 10 was negatively influenced by non-cash impairmentcharges to goodwill in the amount of EUR 68.3 million** On balance sheet date 30 April 2010 / Full-time equivalent incl. contract workers14 15

ising 37.0 % to EUR 65.9 million. Despite thecrisis, the training of apprentices continued ata high level in the 2009 / 10 financial year, withthe number of apprentices actually increasingfrom 133 to 147.In addition to improving cost efficiency, ouractivities in the reporting year concentratedon protecting liquidity and thereby maintainingour sound balance sheet structure. The equityratio equalled a satisfactory 35.8 % on 30 April2010, despite massive non-recurring effects,above all from impairment charges to goodwill.Net financial liabilities were cut by onequarteryear-on-year to EUR 121.9 million.Despite continuing limited visibility and thelate cyclical nature of the Group’s business, theManagement Board of the Zumtobel Groupviews the 2010 / 11 financial year with cautiousoptimism and is forecasting an improvementin revenues and an increase in operating earningsfor the Group as a whole. The long-termoutlook for the Zumtobel Group remainspositive. This optimism is supported by theexpected continued dynamic expansion ofLED-based products and the steady demandfor energy-efficient lighting systems.For further information, please visitwww.zumtobelgroup.com and see theZumtobel Group’s annual and financialreports.Major awards and honours for the Zumtobel Group and its brands since 2007Award Group company Presented by DateDALI Award Tridonic Thorn AG DALI (ZVEI) 2007 and 2008Lights of the Future (for LQ Chandelier Zumtobel brand Messe Frankfurt Exhibition 2008and Cielos)GmbH + Rat für FormgebungDesign Plus Light+Building (for Tempura Zumtobel brand Messe Frankfurt Exhibition 2008and Cielos)GmbH + Rat für FormgebungStrongest brand for architects Zumtobel brand AIT magazine in cooperation January 2009with B1 communicationEMILAS (Energy Management and Thorn Lighting Industry Federation May 2009Innovation in Lighting Award Scheme) forGateshead Council’s Civic CentreFactory of the Year 2009 for the new Thorn, Tridonic Cranfield School of Management September 2009Spennymoor planttogether with WorksManagement magazineTop 3 best Austrian corporate websites Zumtobel Group Hallvarsson & Halvarsson December 2009AgencyTop 10 sustainable companies in Austria Zumtobel Group Center for Corporate Citizenship October 2009AustriaTwelve iF Product Design Awards for Zumtobel brand International Forum Design 2007 – 2010outstanding product design, e.g. in 2009for Linaria, Seamless, ZBOX, Supersystemand Aero II Hybrid and in 2010 for:Ecoos, Ciria and DiscusGmbHDALI Award, 2nd prize Zumtobel brand AG DALI (ZVEI) 2010»1.5. Corporate governanceA tradition of good governance combinedwith fair and open communicationAt the Zumtobel Group, corporate governanceis experienced through the managementand monitoring of the Group in line withthe principles of sustainable developmentand long-term value creation. This goeshand-in-hand with a commitment to transparent,fair and open communication with allstakeholders.Zumtobel AG has announced its intentionto voluntarily comply with the AustrianCorporate Governance Code as amended inJanuary 2009. As in previous years, ZumtobelAG complied with nearly all provisions of thecode in 2008 / 09. Where this was not thecase, the company published an appropriateexplanation. The Group’s mission statementand Corporate Values are key aspects ofthe long-term value creation process. Otherimportant factors for safeguarding the valueof the Zumtobel Group include the Code ofConduct and Corporate Policies, as well as therisk management system, the system of internalcontrols and the corporate internal auditfunction. The risk management system takesaccount of the critical elements of sustainability,such as environmental impacts and shifts inHR structures. To reinforce awareness of theneed for correct treatment of insider information,the Zumtobel Group has also drawn upits own insider guidelines (“INLine”).In 2004 the Zumtobel Group became a memberof the Partnering Against Corruption Initiative(PACI, www.weforum.org/paci ) of theWorld Economic Forum in Davos. This multistakeholderinitiative, founded that same year,brings together leading international industrialcompanies and major social organisations tocombat supplier-side corruption in the privatesector. The PACI’s mission is to develop multiindustryprinciples and practices that will resultin a competitive level playing field, based onintegrity, fairness and ethical conduct. TheZumtobel Group Code of Conduct wasdrawn up on the basis of these principles.To safeguard integrity and ensure consistentcompliance with internal and external guidelines,rules and legislation by all its employees,the Zumtobel Group is systematically expandingits compliance organisation. To make surethat this applies to all business processes, wewill be making the existing compliance managementstructures and processes even moretransparent in future. The basic underlyingconcept for the above measures has alreadybeen approved and implementation will commencein the first quarter of 2010 / 11.For further information on the Code ofConduct see p. 28 ( see section on “Sustainabilitymanagement“ ). Further informationon corporate governance in general canbe found on the Zumtobel Group websitewww.zumtobelgroup.com and in the Group’sannual and financial reports.20 21

22 23The brightness, colour, dynamic and intensityof light all influence our emotional perception.

»»2.3. Sustainability standardsand management systemsThe Zumtobel Group’s efforts to take appropriateaccount of human and environmentalneeds in its business activities have developedsteadily as the company has grown. This isreflected, for example, in the Lighting Segment’squality policy and its guidelines on environmentand occupational health and safety,and in the Components Segment’s policy forquality, environment, occupational health andsafety and risk management. Furthermore,ethical standards, continuous improvementprocesses and quality, environment and occupationalhealth and safety managementsystems have been established in the Group’svarious divisions. These measures are focusedon delivering efficiency, quality and corporategovernance and are now encompassed withinthe wider framework of the sustainabilitystrategy.High ethical standardsHigh ethical standards in all business processessustainably strengthen the Zumtobel Group’scompetitiveness and market position. Theoverarching field of action, integrity, emphasisesthis aspect of the sustainability strategy.The Corporate Values and a corporate Codeof Conduct are binding for all Group employees.These values and rules help them to takethe right decisions and to always act fairly;as trustworthy and unprejudiced partnerstowards both internal colleagues and externalpartners. New employees receive both theCorporate Values and the Code of Conductin their welcome folder.Zumtobel’s “cultural values” were drawn upas early as 1995 and 1996, at the initiative ofthe then CEO Jürg Zumtobel. After the initialpublic offering of 2006 they were revisedand developed to apply to the whole Group,now a truly international organisation. Thesevalues relate to customers, employees, businessprocesses and integrity. The CorporateValues were communicated to employees viaa range of introductory activities, and throughdocumentation provided in a brochure, on theintranet and in other media.The Zumtobel Group drew up its corporateCode of Conduct after joining the PartneringAgainst Corruption Initiative (PACI) of theDavos World Economic Forum in 2004 ( see“Corporate Governance” section ). The codelays down global standards for the conduct ofall Zumtobel Group employees. Parts of it alsoapply to external third parties, e.g. to suppliers( see chapter on “Suppliers” ). With the Codeof Conduct, the Zumtobel Group pledgesto uphold the employment and workingconditions recommended by the InternationalLabour Organisation (ILO).»»»»Improved efficiency and quality throughLean Six SigmaLean Six Sigma management methods areused in both Group Segments in order toachieve ongoing quality improvements ( see“Lean Six Sigma” information box ). Holisticprocess management ensures resourceefficientproduction, avoidance of negativeenvironmental impacts and higher safetystandards for employees. The two segmentsapply Lean Six Sigma in different ways, andeach of them has appointed a dedicatedLean Six Sigma programme manager.The implementation of Lean Six Sigma inthe Lighting Segment began in 2008 and iscurrently limited to product development,production and the supply chain. The use ofthis methodology is included in the Segment’sQuality Policy. In the future, the Sales Excellenceproject, which aims to achieve comprehensiveand sustainable efficiency improvementsin sales operations, will also incorporateLean Six Sigma as it progresses.The Components Segment first began tointroduce Lean Six Sigma at the Dornbirnplant in 2003. Since then the methodologyhas been rolled out across all the componentsplants. The Components Segment implementsLean Six Sigma projects not just in the productionsector but also to improve processes inthe supply chain, in research and development,in marketing and in customer service.Work is currently under way to expandthe methodology by combining it with thecomprehensive EFQM (European Foundationfor Quality Management) total quality managementsystem.Certified management systems for quality,environment and health & safetyThe Zumtobel Group’s rigorous environmentand quality management systems are certifiedto ISO standards. Clear lines of responsibilityand the documentation of the process structurelay the foundations of effectiveness andefficiency. Certification is also communicatedto customers, official bodies and the publicas an additional means of building trust in theGroup’s operations. To date, all ZumtobelGroup plants – with the exception of twoUS plants – are certified to ISO 9001 ( see“Quality and Safety” section ), and nine plantshave achieved ISO 14001 ( see “EnvironmentManagement” section ) while the componentsplants in Dornbirn and Innsbruck are certifiedto OHSAS 18001 ( see “Occupational Healthand Safety” section ).28 29

The Zumtobel Group’s TOP sustainability goalsArea Description Target dateOutlook – building a credible commitmentto sustainabilityOur marketSustainableproductsZumtobelRaise proportion of “eco+ products” * to 15% of total revenuesby 2010 / 11The Zumtobel Group plans to develop itssustainability initiatives in a steady and credibleway. Regular meetings of the sustainabilitycommittee, transparent and systematic reportingin line with the recognised standardsof the Global Reporting Initiative, and embeddingthe principle of sustainability within thebalanced scorecard system will all help tofurther consolidate sustainability as an integralelement of the Group’s operations.Raise proportion of luminaires with electronically dimmable ballaststo 20% of total unit salesThorn“Greenliners” – proportion of sustainable products: Creation ofa definition of “Greenliners” incl. target values; from 2011 / 12onwards, roll-out of “Greenliners” for indoor / outdoor luminairesin EuropeReplacement of magnetic ballasts by electronic ballasts:Cut proportion of luminaires with magnetic ballasts to 14%by 2010 / 11by 2010 / 11by 2011 / 12iLean Six Sigma methodologyWhat is Lean Six Sigma?The Six Sigma method aims to achieve zero defects and optimum quality (“Six Sigma Quality”).Combining this initiative with the principles of Lean Management yields the Lean SixSigma methodology. Its aim is to anticipate and remove the sources of defects, improvingthe quality of production and products, while at the same time minimising activities that donot create value.Where did this methodology originate?It was first used in Japan in the 1970s, reaching a wider audience when it was applied inthe automotive industry.What is it that makes Lean Six Sigma special?The ongoing analysis of relevant indicators is used to identify potential improvements. Theinitiatives derived from this analysis are organised in projects, with a specially trained persontaking responsibility for each project. Responsibility is allocated in accordance with thelevel of training completed by each individual. This system gives employees the opportunityto gain qualifications and to make a personal contribution to improving efficiency in thesupply chain, production and sales.What are the benefits of Lean Six Sigma in sustainability management?Optimising process quality cuts costs and improves the end products as well as deliveringimprovements in terms of resource-efficient production, the prevention of negative environmentalimpacts and enhancing employee safety. As a result, Lean Six Sigma helps supportthe Zumtobel Group’s integrated strategic approach and manage it more effectively.Our processesOur employeesProportion ofrevenues accountedfor by LEDs Certification toISO 14001Energyconsumption in theproduction sectorTridonicIncrease proportion of revenues accounted for by energy-efficientproducts ** to 67.5% (2010 / 11) and in the medium term to 80% EUR 100 million One-third of consolidated revenuesLighting plants:All European plantsComponent plants:All electronics plants worldwideEuropean lighting plants:Establishment of a system of key indicators and definition of targetvalues for a carbon-equivalent per luminaire producedComponents plants worldwide:Establishment of a system of key indicators and definition of targetvalues for a carbon-equivalent per unit producedEmployees Reduction of accident frequency reported as TRI ***Target: TRI = 10by 2010 / 11and 2013 / 14by 2010 / 11by 2014 / 15by 2010 / 11by 2010 / 11by 2010 / 11by 2010 / 11by 2014 / 15Our integrityIntegritySystematic expansion and even more transparent design of thecompliance management system to ensure full compliance andcomplete integrityongoing* Eco+ relates to indoor lighting only** See “Product Stewardship” section for a definition of energy-efficient products*** TRI = total recorded injuries per million hours worked30 31

»»»»2.4. Dialogue withstakeholdersThe Zumtobel Group engages in an ongoingdialogue with its stakeholders covering all thekey issues affecting its business, feeding theresults into the strategies that drive the developmentof its various divisions. As a result,the Group is constantly aware of the needsof people and the environment, not leastfrom the point of view of its stakeholders,as it manages its operations.A strong tradition of engagement withstakeholdersThis dialogue is focused on customers, collaboratorsand network partners, employees,investors and politics. Each individual dialogueis adapted to the needs of the relevant stakeholdergroup:Customers:The managers of Zumtobel Group brandsmaintain very close and direct contact withtheir customers. The Thorn and Zumtobelbrands, for example, actively involve their customersin development processes – throughinitiatives such as product development workshops( see “Research and development” section). The brands also promote an awarenessof sustainable lighting solutions among theircustomers through personal consultations,training and cross-media communications( see “Customer Dialogue” section ).Network partners:Working in cooperation with academicand scientific institutions, artists, designersand architects – its network partners – theZumtobel Group promotes energy efficiencyand light quality, developing sustainable lightingsolutions and special-purpose luminaires toachieve a balance between these requirements( see “Research and development” sectionand the chapter on “Sponsorship” ).Employees:The Zumtobel Group promotes transparentcommunication among its employees andbetween employees and management. Thisinvolves initiatives including decentralised, personalinformation updates provided by localmanagement, regular discussion forums – likethe newly updated Klartext and Z-Net events– and employee surveys. Employees are alsokept up to date through the employee magazine,a regular newsletter and the intranet( see chapter on “Employees” ).Investors:The Zumtobel Group has an outstandingtrack record on investor relations, updatinginvestors and analysts on a regular basis withinitiatives including investor conferences androadshows, quarterly telephone conferencesfor analysts and the annual Capital Markets’Day. In 2007, the Group’s Investor Relationsdepartment won the David Award presentedby the IVA (Austrian investors association), receivingpraise from the judges for its compactand comprehensive corporate information andits effective strategies for reaching out to privateinvestors. (see “Investor Relations” on theGroup’s website www.zumtobelgroup.com ).»»Suppliers:Both the Lighting and Components Segmentsare focused on building long-term supplierrelationships, making supply management ahigh priority for both segments. The ComponentsSegment has a particularly impressivetrack record for building strong, collaborativerelationships that have lasted over many years( see chapter on “Suppliers” ).Politics:The Group’s active membership of manufacturerassociations, lighting technology groupsand standards committees is the basis for adialogue with politics that has the intentionof setting new benchmarks for industrystandards in the field of sustainable lightingsolutions ( see table “Memberships” andchapter on “Sustainable Lighting Solutions” ).The Zumtobel Group is also represented invarious employers’ associations. By way ofexample, representatives of the German lightingplants chair the employers’ association inLippe as well as its electrical engineering andmetalworking committee, and have delegatedone board member to the Metalworking andElectrical Engineering Industry association ofNorth-Rhine Westphalia. Another representativeis on the advisory council of the Metalworkingand Electrical Engineering Industryemployers’ association in Hesse and Dr. HaraldSommerer is a member of the committee ofFEEI – the Association of the Austrian Electricaland Electronics Industries.32 33

Systematic stakeholder consultationIn spring 2009, the Group conducted a telephonesurvey of 33 stakeholders, the resultsof which were fed into the sustainability strategyand this Sustainability Report.One very positive outcome of the surveywas that more than 60 % of those surveyedwere aware of the sustainability initiativesimplemented by the Zumtobel Group and itsbrands, particularly in the fields of productstewardship and in-process environmentalprotection. On average the intervieweesrated the Zumtobel Group as better than itscompetitors in terms of sustainability. Stakeholdersidentified product stewardship as thehighest priority (particularly energy efficiencyand light quality). As well as reporting in theform of a Sustainability Report and on theZumtobel Group website, stakeholders saidthat they wanted to be personally involved,through individual consultations and “roundtable” events.The Zumtobel Group stakeholder overview *Zumtobel GroupCustomers 49 %Capital market 15 %Employees 9 %Media 9 %Politics & legislators 6 %Society 6 %NGOs 3 %Science & research 3 %* The Zumtobel Group “Stakeholder overview” was developed for this survey. Interviewees wereselected for their relationship with the Zumtobel Group or its brands and as appropriate representativesof their stakeholder group.34 35

36 37Cool light by day, warm lightin the evening: this is the bestcombination for the natural rhythmof human melatonin production.Selecting the right kind of lightimproves our performance andconcentration.

»»»3. Sustainable lighting solutions3.1. IntroductionIn commercial buildings such as offices andfactories as well as for outdoor lighting, anintegrated and intelligently controlled lightingsolution can make a major contribution toclimate protection. Artificial lighting consumes19 % of the electricity generated worldwide, agood two-thirds of which are currently beingaccounted for by commercial buildings andoutdoor lighting. According to CELMA, theEuropean umbrella organisation for manufacturersof luminaires and luminaire accessories,in Europe alone 75 % of office lighting is basedon inefficient systems.The Zumtobel Group’s brands offer solutionsto ensure optimum use of lighting in indoorand outdoor applications. Thorn, Zumtobeland Tridonic use their expertise in the practicalapplication of light and the latest lightingtechnology to strike a balance between energyefficiency and lighting quality and they workto increase customer awareness of this issue.One important lever for enhancing energyefficiency is the increasing use of modern electronicsin artificial lighting. Intelligent controlsystems, electronic or electronically dimmableballasts and new, innovative light sources suchas LEDs are the most important approachesto boosting energy efficiency.3.2. Sustainable lighting solutionsare our core businessSustainable lighting solutions are a centralpillar of the Zumtobel Group’s sustainabilitystrategy ( see Chapter 2 “Sustainability strategy”). With its Thorn, Zumtobel and Tridonicbrands, the Zumtobel Group is setting newstandards for sustainable lighting solutions,making optimum use of its expertise in lightingtechnology and in the practical application oflight. Our customers’ exacting requirementsset the bar high, challenging us to achieveinnovative solutions.Greatest potential for savingsin the use phaseThe focus of our commitment to energyefficiency is on reducing energy requirementsin the use phase of a luminaire orintegrated lighting solution. This is the phasewhen there is the greatest potential forsavings, a recognition backed up by life cycleassessments for lighting systems carried outin-house to ISO 14040 and ISO 14044 ( seeinformation box “Life cycle assessments andenvironmental declaration”; reference tothe Chapter 4 “Product stewardship” ). Thestudy results were unequivocal: as the servicelife of a luminaire increases, the use phasecomes to account for well over 90 % of totallife cycle energy requirements ( see chart “Potentialsavings over the life cycle phasesof a luminaire” ).»»»»This is where an integrated lighting solutionis capable of achieving the best results. Sucha solution is made up of a well-thought-out,professionally planned lighting concept comprisingvarious different luminaires and lightsources and controlled by an intelligent lightingmanagement system. There are significantpotential savings to be made by combiningvarious measures ( see graphic “Savings byindividual components of a lighting solution” ).These begin as early as the luminaire designstage in terms of improving lighting and thermalcharacteristics (light distribution, efficiency,heat balance, etc.), by means of factors such asthe correct selection of lamp technology andmaterials and the precise design of reflectorsand prismatic diffusers. Another importantfactor is the use of electronic or electronicallydimmable ballasts instead of conventional,far less efficient magnetic ballasts. In addition,intelligent control systems ensure that lightinglevels are appropriate to the situation, for instanceby means of presence detectors and inline with the level of daylight and time of day.As part of the planning process, clients canbe provided with a simulation of a modern,dynamic lighting concept using a visualisationprogramme, such as Zumtobel’s Vivaldi package( see subsection: “Brand sustainability campaigns”). Vivaldi is capable of simulating lightingquality and energy consumption for severalvariants of a planned lighting solution.The best visual, emotional and biologicalquality of lightingSustainable lighting solutions are judged notonly by their energy efficiency but also by theirlighting quality ( see “Lighting quality” informationbox ). Good lighting can promote humanwell-being, creating, creating the ideal settingfor high performance, satisfaction and health.A good lighting solution also guides users andhelps ensure their safety (consider road lightingat night or emergency and escape-routelighting during a power outage).Targeted engagement with tradeassociationsThe Zumtobel Group engages with tradeassociations, standardisation committees andlighting societies with the aim of establishingthe best conditions for optimum energy efficiencyand the best lighting quality for thelighting industry and its customers ( see “Memberships”in the “Stakeholder dialogue” section). Until he left the company in April 2010,the previous CEO of the Zumtobel Group,Dr. Andreas J. Ludwig, was President ofCELMA (the European umbrella organisationfor manufacturers of luminaires and luminaireaccessories) and chaired the lighting division ofthe Central Association of the German Electricaland Electronics Industry (ZVEI).Policy makers have recognised the enormouspotential that energy-efficient lighting has forreducing carbon emissions. With its Directives38 39

»»on the energy efficiency of buildings, productsand services, the European Union has createda framework whose gradual transposition intonational law is expected to boost demand forenergy efficiency services ( see “Energy Performanceof Buildings Directive” informationbox and “Energy Services Directive” informationbox ). This is a development welcomed bynational and international trade associations,lighting societies and standardisation committeessuch as CEN and CIE. However, the currentrequirements of existing EU lighting legislationdo not cover all aspects of sustainability,being solely restricted to energy efficiency.Together with the trade associations, theZumtobel Group is out to ensure that theEU Directives for energy-efficient lighting aresystematised into “Lighting Systems Legislation”(LSL) and is therefore actively involvedin CELMA’s “LSL Task Force”. The aim of thetask force is to obtain new EU legislation onsustainable lighting solutions from 2013 whichtakes both aspects of sustainability into account:energy efficiency and lighting quality.This legislation should promote proper planning,installation, operation and maintenanceof lighting systems, further opening up themarket for intelligent, sustainable lightingsolutions and speeding up the replacementof inefficient systems.Development of a standard for assessingthe effects of light on humansWith the aim of creating a uniform basis forassessing the effects of light on humans, theZumtobel Group also participated in thedevelopment of a corresponding standard.June 2009 saw the proposal, with the GermanInstitute for Standardisation (DIN), ofstandard DIN V 5031:100, which is now to betransferred to European level by the EuropeanCommittee for Standardisation (CEN). In addition,the committee is currently also workingon a standard for planning guidelines (DIN V5031:101) that take human biorhythms intoaccount.The trade associations, including ZVEI, arealso raising awareness of the EU Energy ServicesDirective ( see “Energy Services Directive”information box ). Since early 2009, ZVEIhas been organising regular information eventsto inform German local authorities aboutsustainable indoor and outdoor lighting( www.zvei.de/licht ).Potential savings in the life cycle of luminairesMaterials Production Transport Lighting solution Recycling6%1% 0.5% 92% 0.5%Use accounts for the majority of a luminaire’s energy consumption. So this is where the greatest energy savings can bemade. The percentages relate to the proportion of total energy consumption over the luminaire’s life cycle.Potential savings by individual components of a lighting solutionLight source Control gear Luminaire Lighting management Lighting solutioniLighting qualityMaking an integrated assessment of lighting quality means taking account of its effects atthree different levels: the visual, the emotional and the biological.The visual level concerns visual requirements which are fully met by the correct lightingquality, enabling error-free working.Through harmonious variations in light and soft colours, the emotional component createspleasant surroundings, motivation and a positive mood.Light becomes biologically effective when calculated changes in the colour and quantity oflight support human biological and circadian rhythms.LEDs couldreduce energyconsumption by50% in the periodto 2025.Control geartechnology is acornerstone ofintelligent lightingmanagement, especiallyin the shape ofdimmable electronicballasts with an integralcontrol function.10% potential energysavings.Optimisation andinnovation ensuregreater energyefficiency. 10 - 15%energy savings canbe achieved byimprovements inenergy efficiency,without changes tothe design.Good lightingmanagement allowsenergy savings of upto 80%:• Daylight-dependentcontrol: 40 - 60%• Presence detectors:15 - 30%Contemporarylighting conceptsachieve energysavings of up to 20%.Project planning:• Consultancy• Visualisation ofdynamic lightingscenariosThe greatest potential savings can be made within the lighting solution by using the optimum combinationof individual components.40 41

3.3. Brand sustainabilitycampaignsBrand-specific sustainability campaigns havebeen developed for the Group’s variousbrands. Their purpose is primarily to fostercommunication with customers and businesspartners.Zumtobel brand: “Humanergy Balance =Human Aspects + Energy Efficiency”Humanergy Balance was inaugurated in 2006as Zumtobel’s overarching sustainability campaignto take account of both human needsand the environment when planning lightingsolutions (see www.zumtobel.com/sustainability). It focuses on striking a balance betweenapparently conflicting requirements for lightingsolutions. The campaign is aimed at cuttingenergy consumption and thereby reducingthe environmental impact. At the same time,it is designed to promote human well-beingwith regard to lighting quality and safety andsecurity. Regular cooperation with internationallyrenowned architects, designers and artistsas lead users acts as a driver for particularlyinnovative solutions.Zumtobel is constantly developing the HumanergyBalance concept. Encouraged andsupported by intensive research activities, thebrand has made lighting quality measurable forthe first time ever, using the “Ergonomic LightingIndicator” (ELI). ELI covers a total of fiveaspects of quality: visual performance, vista,visual comfort, vitality and empowerment.Zumtobel uses a special software packagecalled Vivaldi to simulate lighting solutions atthe planning stage in line with the HumanergyBalance mission statement. Vivaldi visualisesthe composition of the lighting solution forspecific usage times and different purposes.In addition, lighting quality can be calculatedwith ELI and energy usage with LENI (LightingEnergy Numeric Indicator), together with theresultant carbon emissions.Since the Light+Building 2010 trade fair, afurther tool has been available to downloadfrom www.zumtobel.com in the form of thefree ecoCalc software. The software is usedfor the comparative calculation of energyand investment costs over the life cycle of anumber of different lighting solutions (totalcost of ownership). ecoCalc was developedin cooperation with Thorn to provide a clearpicture of the positive – and financially measurable– impact of energy efficiency.»»Thorn: “PEC = Performance + Efficiency+ Comfort”Thorn’s sustainability promise is to deliverperformance, efficiency and comfort – thehallmark of quality lighting. PEC provides theframework for Thorn, working with a comprehensiverange of technical equipment, todevelop tailored, environmentally compatiblelighting concepts matched to the particular requirementsof an individual location, user andapplication (see http://www.thornlighting.com/com/en/aboutus_efficiency_comfort_f.htm ).Thorn’s products also embody the PEC spirit.With this programme, Thorn brings togetherthe two quantitatively measurable aspects ofperformance and energy efficiency and setsthem up against the subjective expectations ofcomfort influenced by lighting psychology. Thelighting solutions follow design rules and arebased not only on standards and guidelines butalso on the creative and artistic experienceof the lighting designer. Important aspects ofPEC for outdoor lighting include optical lightguidance and a holistic lighting concept, so asto avoid light pollution ( see “Light pollution”information box in the “Product Stewardship”chapter ). Thorn is constantly adding to itsin-house expertise ( see “Research & Development”section ) in order to optimise thebalance between energy reduction andlighting pattern in outdoor lighting.Like Zumtobel, Thorn offers the ecoCalcsoftware mentioned above for life cycle costcalculations.In 2009, Thorn won the coveted EMILAS(Energy Management and Innovation in LightingAward Scheme) prize awarded by the BritishLighting Industry Federation in the interiorlighting category. The prize was awarded forThorn’s interior lighting system for GatesheadCivic Centre’s office complex. The prizerecognises energy management and innovativelighting solutions. Energy savings of at least20 % have to be achieved relative to previouslyinstalled solutions. In Gateshead, Thornachieved an impressive savings of 68 %.Sparkasse Lemgo, DE: 70 % savingsand zero maintenance costs.Gateshead Civic Centre,UK: Cinqueline SR, dimmable ballasts42 43

»Tridonic: “It’s time for an ecolution”With its “ecolution” sustainability initiative,Tridonic is not only laying down guidelinesfor its core business, but is also developingan integrated strategy for all its activities(see www.tridonic.com/com/de/148.asp ).Tridonic ranks among the innovation leaders inelectronic and electronically dimmable ballasts.This control gear technology is a cornerstoneof intelligent lighting management. In addition,Tridonic has played a crucial part in thedevelopment of the DALI (Digital AdressableLighting Interface) standard for the control ofelectronic ballasts.Tridonic’s ecolution initiative takes accountof the interests of both humans and theenvironment at all stages in the life cycle ofits products.As ecolution progresses, the initiative will beextended to cover two more aspects: individualproducts and application solutions will, infuture, be increasingly highlighted as examplesof best environmental practice by the green“best of ecolution” label ( see “Sustainableproducts” section ). The cross-application expertiseof Tridonic’s sales staff is being extendedto cover the use of energy-efficient lightingcontrol, with the assistance of visualisation andsimulation programmes.iiEnergy Performance of Buildings DirectiveWhat is the Energy Performance of Buildings Directive?The Energy Performance of Buildings Directive (EPBD) 2002 / 91 / EC has been in force since2002 and implemented in most EU Member States since 2006. The Directive’s aim is to improve theoverall energy efficiency of buildings by rating them. Implementation of the Directive makes EnergyPerformance Certificates obligatory for existing building stock and new buildings.These certificates must be produced on sale, rental or leasing of buildings that cover an area greaterthan 1000 square metres.How does the Directive affect the lighting sector?The Directive introduces standards for a calculation methodology for lighting – in addition toguidelines for calculating the total energy requirements of heating, air-conditioning, ventilation andhot water systems. Along with individual national calculation methods, European standard EN 15193specifies the procedure to be adopted. The calculations include the installed luminaires, the type ofuse and control, and the period of use. As a key indicator, the actual energy demand is determinedin kilowatt hours per square metre and year using LENI (Lighting Energy Numeric Indicator).Energy Services DirectiveWhat is the Energy Services Directive?The Energy Services Directive (ESD) 2006 / 23 / EC was issued in 2006. The guidelines are currentlybeing implemented in the framework of national energy efficiency action plans (NEEAPs). TheDirective’s aim is to reduce energy consumption in every EU Member State by 9 % by 2016, relativeto the current situation. The objective is to restructure the energy market by increasing the marketshare of energy-efficient products.How does the Directive affect the lighting sector?In its NEEAP, each EU Member State has to give a preview of its planned energy efficiency measuresand, wherever possible, set measurable targets and interim targets. Since the lighting sector canmake a considerable contribution to energy savings, its expertise, in relation to street lighting andother public lighting, is in particular demand.Modernised street lighting, Rednitzhembach,DE: ZRM A201 ignitor withadditional impedance for up-gradingto more efficient light sources;Energy saving 77,000 kWh/year(10,000 EUR / year); ROI: 4 years44 45

»»3.4. Brand-customer dialogueCustomer dialogue takes top priority for theZumtobel Group’s brands with the aim ofpromoting customer awareness of sustainablelighting solutions. By means of high-quality,well-targeted communication, the companyenables the customer to access its knowledgeof sustainable lighting solutions and generatesenthusiasm for the innovative “green” strengthof its brands. This dialogue makes use of faceto-facemeetings, cross-media campaigns andbrand training opportunities. Long-term, trustingcustomer relationships secure the ZumtobelGroup’s market position and commercialsuccess. To measure customer satisfaction, theThorn and Zumtobel brands conduct regularcustomer surveys ( see “Product stewardship /Quality and Safety” p. 63 ).Brand communication: linking lightingand sustainabilitySeveral brand campaigns already link thesubject of lighting with sustainability. To thisend, Thorn, Zumtobel and Tridonic makeuse of trade fairs, product classifications ande-newsletters. Cross-media communicationsinclude the use of microsites to supply detailedinformation. The brands’ overarching sustainabilityprogrammes provide the appropriateframeworks. This Sustainability Report will itselfcontribute to this communication process,which is why “Sustainable lighting solutions”has been presented as a separate topic.Meeting places and customer trainingThe three brands offer their customers specifictraining opportunities to inform them aboutthe effects and use of lighting and the keycriteria of sustainable lighting solutions. Theteaching programme is based on applicationorientedproduct presentations.For the Zumtobel brand in particular, this farreaching,intensive dialogue with and transferof knowledge to its customers is of vitalimportance. In its role as a pioneer, the brandcommunicates new ideas for greater energyefficiency and improved lighting quality inspecific applications, in an effort to make theseaspects the criteria on which its customersbase their purchasing decisions. Worldwide,Zumtobel runs three Light Forums and 15Light Centres, which attract around 28,000customers every year. Their architecturalstructure alone serves as a source of inspirationfor customers and employees alike. Foraround four years now, Zumtobel has alsobeen training selected electricians as lightingsolution partners and, to date, 600 peoplehave taken part in this training programme.Thorn uses its Academy of Light at the newSpennymoor plant to share the knowledgeacquired in its daily business and researchactivities not just with its employees ( see“Employees” chapter ) but also with itscustomers. Customers are trained here insustainable lighting solutions, products andtechnologies. The target of 2,000 visitors tothe Thorn Academy of Light was exceeded inthe current financial year, with a total of 2,208visitors since February 2009. In March andApril 2009 alone, the Academy offered 226seminars, each lasting 1-2 hours, as well as two3-day courses. In addition, Thorn offers specialseminars throughout the world (not least inSouth-East Asia, China and the Middle East)primarily for architects and lighting consultants,with the topics covered now also includingsustainability.Tridonic also offers regular seminars and trainingsessions for customers. Around the world,selected customers are invited to events presentingthe existing product portfolio and therequirements for sustainable lighting solutions.46 47

»Increasing revenues from energy-efficientproductsAiming to meet both environmental andcustomer requirements, the Zumtobel Groupbrands are working hard to ensure continuousgrowth in the share of revenues generatedby energy-efficient products. The Thorn andZumtobel brands are thus encouraging thereplacement of luminaires with magneticballasts through luminaires with electronic orelectronically dimmable ballasts.In 2009, Thorn launched its “Goodbyeswitchstart, hello high frequency” campaignin the UK, the aim of which is to acceleratethe changeover from magnetic to electronicballasts. In addition to a wide-ranging marketingcampaign, Thorn is also introducing salesmeasures that will make it easier for customersto purchase through distributors. Andwith the “E-Control” campaign in NorthernEurope, in the summer of 2010 Thorn is takinga further step to boost sales of luminaires withelectronically dimmable ballasts. Compared tothe 2008 / 09 financial year, Thorn is hoping tosee the proportion of revenues accounted forby luminaires with magnetic ballasts drop from52 % to 14 % in the 2011 / 12 financial year.Moreover, effective from April 2010, Thornis replacing its best-selling PopPack luminairewith magnetic ballast with a more energyefficientelectronic version and an electronicallydimmable version.As part of the “dim2save” campaign encouraginga changeover to luminaires withelectronically dimmable ballasts, the Zumtobelbrand has set itself a target of increasing theproportion of total unit output accounted forby luminaires with dimmable ballasts to 20 %by the 2010 / 11 financial year.For its part, the Tridonic brand is targeting acontinuous rise in the proportion of revenuesaccounted for by energy-efficient products.The following products have been designatedparticularly energy-efficient: electronic ballastsfor fluorescent and HID lamps, electronicallydimmable ballasts for fluorescent lamps, allLED-based products, electronic transformers,and lighting control equipment. In the reportingyear, these products together made up65.6 % of the brand’s total revenues. By the2013 / 14 financial year, Tridonic is aiming toincrease this figure to 80 %.Pioneering work in drawing up alife cycle assessmentLife cycle assessments are the tools that aregenerally used for systematically investigatingproducts in terms of their environmentalimpact and potential savings. In the past, thesehave been drawn up manually by the brands.Their results are documented in environmentaldeclarations ( see “Life cycle assessmentsand environmental declarations” informationbox ). The EU Ecodesign Directive»»»( see “Ecodesign Directive” information box )recommends using standards ISO 14040 andISO 14044 for guidance. However, no internationalstandard for life cycle assessments specificallyfor the lighting sector has as yet beenestablished. Working in cooperation with theInstitut für Bauen und Umwelt e.V. (IBU), theZumtobel Group has therefore drawn up specificcriteria in the form of “Product CategoryRules” (PCR) for lamps, control gear andluminaires. These are now used in conjunctionwith the ISO 14040 and ISO 14044 standards.In autumn 2009, a feasibility study was carriedout in the Zumtobel Group to examine theoptions for establishing a uniform approach toenvironmental declarations across the entireGroup. The aim is to make environmentaldeclarations with a certificate available tocustomers via the online product catalogueon the brands’ websites. The Zumtobel andThorn brands have already started to drawup environmental declarations and, in the nextfew years, will be progressively extendingthem to cover all their products.Entering the LED lamp businessWith effect from 1 September 2009, theEcodesign Directive set threshold values fordomestic lamps which led to the prohibitionof certain incandescent light bulbs ( see“Ecodesign Directive” information box ). Thisdoes not affect the Zumtobel Group’s corebusiness. Against the background of changinglamp technology and high levels of consumerinterest in the successor to the incandescentlamp, the Zumtobel Group, which has beenworking on LED technology since as long agoas 2001, decided to enter the retail consumerbusiness with energy-efficient and innovativeLED lamps. This led to Ledon Lamp GmbHbeing established in 2009. The company presenteda comprehensive range of LED lampsat Light + Building and is now developing asales channel for the lamp business on thisbasis ( see “LED” information box ).54 55

i Life cycle assessments and environmental declarationsi LEDs – the revolution in artificial lighting»»What are life cycle assessments and environmental declarations?The purpose of life cycle assessments on the basis of the ISO 14040 and ISO 14044 standardsis to systematically record a product’s environmental impact over its entire life cycle.The life cycle of lamps and luminaires extends from materials procurement via production,transport and use to disposal or recycling. Life cycle assessments include all sourcing fromand emissions into the environment. In addition to energy consumption, the analysis alsocovers water consumption, materials usage, waste and environmental impact, for example.The energy consumption of lighting in the use phase is calculated on the basis of standardscenarios which reflect the typical application of the product, for instance use as office orindustrial lighting. All the calculations made in a life cycle assessment are based on ProductCategory Rules ( PCR, see “Research & Development” section ). The outcome of a life cycleassessment is documented in environmental product declarations (EPDs) in accordancewith the ISO 14025 standard.What are the advantages of life cycle assessments andenvironmental declarations?Life cycle assessments assist in systematically recording the entirety of a product’s impacton the environment and in feeding these findings into product development. In this way,effective levers for more sustainable product design can be more readily identified andexploited. At the same time, customers can make use of environmental declarations inorder to include environmental criteria in their purchasing decisions.Light pollutionWhat is light pollution?If streets, public buildings, churches and airports are not properly lit, some of the lightproduced is emitted into the environment directly and indirectly by reflection and scattering.This scattered light results in the formation of “light domes” over conurbations inindustrialised countries. These make the night sky ever brighter and this is referred to aslight pollution.What are the consequences of light pollution?In conjunction with many other causes, light pollution can disrupt the circadian (wakingsleeping)rhythm in humans. The animal world is also affected by light pollution: manyinsects are killed by street lanterns and night-flying birds are confused by light smog andcollide with buildings.What action is the Zumtobel Group taking in relation to light pollution?Within the Zumtobel Group, the Thorn brand, as a supplier of outdoor lighting, is affectedby the problem of light pollution and is therefore actively seeking solutions. Replacingoutdated outdoor lighting – in particular public lighting – with efficient, innovative lightingsolutions, can save energy while at the same time reduce light pollution. Thorn is investingin product development, and in light control in particular, in order to identify worthwhileapproaches. In 2004, Thorn introduced Champion, the world’s first commercial outdoorluminaire to deliberately limit light pollution by a controlled lighting pattern( see “Research & Development” ). Since then, reducing light pollution has been a factorin the design of Thorn’s new outdoor lighting, as seen in the Areaflood luminaire launchedin 2009.What are LEDs?LEDs (Light Emitting Diodes) are the future of lighting. LEDs are small, very high intensity pointlight sources with elevated energy efficiency and a long service life. They consist of an electronicsemiconductor component which emits light when a current is applied and is controlled by a chip.Organic light-emitting diodes (OLEDs) differ from conventional LEDs by using organic material,as a result of which current density and luminance are lower. OLEDs are wide-area light sources.What are the advantages of LEDs?LEDs have many advantages, both over conventional incandescent light bulbs and over low voltagehalogen lamps and fluorescent lamps. LEDs are very energy-efficient light sources. To date, progressin LED technology has meant that their light yield has doubled every two years. ZVEI expert evaluationsalready indicate that using light-emitting diodes worldwide could save up to 30 per cent ofthe energy that has previously been used for lighting.What is the Zumtobel Group working on in the LED field?Current major applications of LEDs at the Zumtobel brand include the presentation of products orworks of art (spotlights), office lighting (downlights) as well as facade illumination and emergencylighting. Along with these areas, Thorn also covers the street lighting sector. Tridonic has forsome years supplied LED modules for illuminated advertising and refrigerated cabinets and, morerecently, also high-performance LED modules for use in professional spotlights and downlights.Ledon has been supplying LED retrofit lamps to consumers since January 2010.The Zumtobel Group has set itself the target of generating revenues of approximately EUR 100million with innovative LED-based products by the end of the 2010 / 11 financial year, twice the levelof 2008 / 09 when LED revenues totalled EUR 50.6 million. The Zumtobel Group’s LED business isenjoying dynamic growth, despite the economic crisis, with year-on-year growth rates exceeding35 %. By 2015, as one of the Group’s top sustainability goals, LED products should be accounting for25 % of Group revenues.Since 2001, the Zumtobel Group’s LED and OLED activities have been combined under the Ledonbrand. Ledon supplies not only third parties but also the other Group brands with high-performanceLED components and modules and with LED light engines and OLED panels. Converters andcontrol systems for LED and OLED solutions are developed and manufactured in-houseby Tridonic.In comparison with conventional incandescent light bulbs, Ledon’s high-tech LED lamp, whichhas been on sale since January 2010, achieves the same light yield with 85 % less energy (measuredon a 5-watt lamp replacing a 25-watt incandescent bulb) and, even in comparison with energy-savinglamps, uses 30 % less energy. Ledon Lamp has also been able to demonstrate its outstanding lightingquality in a comparative colour perception study. It was the overall winner in comparison withconventional commercial energy-saving lamps, conventional incandescent lamps and anotherLED lamp.Ledon’s high-tech LED lamps were initially offered for sale in five- and six-watt versions,replacing conventional 25- and 40-watt incandescent bulbs. Light + Building 2010 saw a tenwattversion (corresponding to a 60-watt incandescent bulb) and new candle and globeshapes added to the range.56 57

»»»»4.3. Research & developmentAt the Zumtobel Group, innovation drivesgrowth. Consistent application of new technologies,development of new products andcontinuous process optimisation are the toolsthe Zumtobel Group uses to attain its outstandingcommercial and competitive position.Research & development (R&D) is thus a keycomponent in the Zumtobel Group’s strategyand an integral part of corporate culture tothe very highest level. R&D is the responsibilityof the Executive Vice President (EVP) GroupTechnology.R&D expenditures include expenses recognisedto the income statement as well ascapitalised development costs. In accordancewith its goal to also expand the outstandingtechnology position of the Zumtobel Group inless favourable economic times, expenses forresearch and development were increased by9.5 % to EUR 52.1 million in 2009 / 10. Energyefficiency and LEDs remain the primary focalpoints of R&D activities in the ZumtobelGroup. The significance of R&D and theGroup’s innovation culture is also reflectedin the funds spent on these activities, whichrose from 4.1 % to 4.7 % of revenues for thereporting year.Competitive advantages thanks to sustainabilityin R&DR&D in the Zumtobel Group makes sustainabilitya cornerstone of the innovation process.The focus is on innovative, forward-lookingproducts which will make the brands standout in their various markets. This target wasdevised in line with the Group’s sustainabilitystrategy ( see p. 26, “Sustainability strategy” ).Brand-specific product classification providesthe basis for taking sustainability factors intoaccount in the innovation process ( see p. 50,reference to preceding chapter ).In product development, the brands constantlystrive to exceed the requirements oftechnical standards. Zumtobel opened its firstlighting laboratory as long ago as 1959 ( see“Lighting laboratory” information box ) inorder to test the photometric properties of itsindependently and rapidly designed luminaires.Now there are lighting laboratories at almostall of the Group’s sites. They are used by bothZumtobel and Thorn.Application of Lean Six Sigma managementmethodology demands continuousimprovement in corporate procedures ( see“Sustainability management” section ). Consequently,R&D in the Zumtobel Group is alsoprocess-oriented. The Thorn and Zumtobelbrands also make use of the Design for SixSigma “voice of the customer” (VOC) tool. Inthis way, the two brands derive measurable,critical-to-quality (CTQ) product features forproduct development from workshops withpotential customers and users and employthem as the basis for the development andindustrialisation of innovative products.LEDs and energy efficiency – major researchactivities in the 2009 / 10 financial yearThe steady improvement in the efficiency ofLEDs, which in the meantime have surpassedthe compact fluorescent lamp for energy efficiency,has led all the Zumtobel Group brandsto shift the focus of their product developmentactivities to LED solutions. In the LEDsector, R&D activities are still concentrated onthe generation of high-quality white light forprofessional general-purpose lighting applications,but now also include high-performanceLED light engines for what are known as LEDretrofit lamps (i.e. efficient LED lamps withtraditional sockets for replacing conventionaland halogen lamps).Development activities at the Zumtobel brandin the reporting year focused on the newPanos Infinity downlight series that bundles allthe advantages of LED technology and is moreefficient than standard solutions with compactfluorescent lamps, as well as on the Discusspotlight, which can now be manufactured ina shape and size not possible with conventionallamp technology. Other new arrivals at theZumtobel brand include the recessed luminaireseries Mellow Light V; LED variants forthe spotlight series Arcos and Vivo; and theValuea and Eleea luminaire series based onT5 lamps, which set new standards in termsof ergonomics and efficiency.The 2009 / 10 financial year also saw theThorn brand bring out a new version of itsclassic PopPack lighting strip, complete witha new, unequalled, fast assembly technique.Other focus areas in indoor lighting includedthe new flat luminaire Menlo³, also offered asan LED option; the Equline system luminaire;and new LED models of the proven Quattro,Planor and Cruz series. In the outdoor lightingsector, Styled represents the first LED streetlightto meet all the requirements of officialstandards, with sophisticated technology thatalso makes it suitable for wider streets. Atla,by contrast, provides efficient, high-qualitywhite light for illuminating narrower roads andside streets. The proven Oracle range wasextended to include a more compact size formodern high-pressure lamps, while a versionbased on a high-performance LED modulewas added to the Dyana series.In all, the Thorn and Zumtobel brands appliedfor 73 new patents in the 2009 / 10financial year.R&D activities at Tridonic continued to focus onenergy-efficient and environmentally compatiblelighting technology. With xitec, a processortechnology developed by Tridonic, the brandcan develop future-oriented, intelligent controlgear with high functionality and energy efficiency.Tridonic has now based its entire portfolioof electronic control gear for fluorescent lamps,high-pressure discharge lamps and emergencylighting units on xitec processor technology. Atthe same time, by means of optimum thermalmanagement, the brand has been able to cutenergy losses in non-dimmable ballasts as well.58 59

»TALEXX LED products from Tridonicguarantee top quality with respect to luminosity,homogeneity and consistent colourreproduction. The broad-based and extensiveTALEXXconverter range of LED control gearfor indoor and outdoor applications was enlargedduring the reporting year to includea whole new product family.Tridonic applied for a total of 67 new patents(2008 / 09: 60) during the past financial year.Close cooperation with universitiesand research organisationsIn addition to its independent R&D activities,the Zumtobel Group works closely togetherwith universities and research institutions topromote sustainable innovation processes.In 2003, the Zumtobel Group co-foundedKompetenzzentrum Licht (K-Licht), a centreof lighting expertise in Innsbruck, Austria, inwhich it has since played an active part. Thecentre’s 31 projects complement each otherin subject matter, build upon one another interms of content or temporally and extendfrom basic industrial research up to demonstrationprojects. The research results areapplied in tunnel installations, in urban spaces,in building services technology, in the use ofdaylight and in the use of LEDs for generalpurposelighting.Further research priorities are LEDs and theeffect of light on humans. For example, from2007 to 2009, the Zumtobel brand participatedin a joint study with K-Licht and otherpartners in a nursing home for dementia patients.Over 15 months, various dynamic lightingscenarios were investigated in the courseof the day. The outcome was that high levelsof light can improve the circadian rhythms ofelderly people. This is particularly the case forpeople in need of care who have no regularaccess to natural daylight.In addition to its ongoing internal activitiesrelating to LEDs, the Zumtobel Group is alsoinvesting in OLEDs, the LED technology ofthe future ( see “LED” information box ). Tothis end, in autumn 2009, the Group foundedthe joint venture “Ledon OLED LightingGmbH & Co. KG” together with Fraunhofer-Gesellschaft and members of staff from theFraunhofer Institute for Photonic Microsystems(IPMS) in Dresden.The Group is also participating in the GBP 3.3million “Thin Organic Polymeric Light EmittingSemi-conducting Surfaces” (TOPLESS) projectinvolving Thorn Lighting UK, Sumation UK andDurham University. The first prototypes ofthis next generation of lighting were presentedduring the 2008 / 09 financial year. These smallprototypes were tested at the new PrintableElectronics Technology Centre (PETeC) inSedgefield, UK. The products are expected toreach market maturity in around nine years.The EU-funded “SmartCoDe” project involvesthe development of an IT-controlled energy»»management system which is primarily intendedto reduce energy consumption in smallerbuildings and neighbourhoods. The intentionis to develop carbon-neutral local powergrids. The project started in January 2010 inthe “ICT support to energy-positive buildingsand neighbourhoods” topic of the ICT-2009programme and is planned to last three years.Tridonic is contributing its expertise in thearea of lighting and building automation.Active participation in standardisationThe company contributes its know-how inthe application of lighting to the developmentand verification of standards ( see “Sustainablelighting solution” section ). For instance, since2005 it has been jointly developing the ErgonomicLighting Indicator (ELI) with the lightingtechnology department of Ilmenau Universityof Technology.Over the period from 2004 to 2008, a jointstudy with the Fraunhofer Institute for BuildingPhysics (IBP) was carried out to comparemeasured energy consumption with the energyconsumption calculated to DIN V 18599.The findings are used in calculating energyrequirements, not least for lighting under theEnergy Performance of Buildings Directive( see “Energy Performance of BuildingsDirective” information box, Chapter 3 ).The Zumtobel Group is also committed to the“Zhaga” initiative to create standard specificationsfor LED module interfaces. The aim is todefine the physical, photometric, electrical andthermal behaviour of LED modules and in thisfashion to create industry-wide standards andhelp LEDs to break through on a large scale.The founding meeting took place in March2010. Together with seven other companiesfrom the lighting industry, the ZumtobelGroup is a founding member.60 61

i»»Ecodesign DirectiveWhat is the Ecodesign Directive?EU Directive 2005 / 32 / EC setting ecodesign requirements for energy-using products, orEuP Directive (EuP = Energy-using Products) was issued in 2005. Further categories ofproduct, which do not themselves use energy but have an influence on consumption (ErP =Energy-related Products 2009 / 125 / EC) were added in November 2009.The aim of the Ecodesign Directive is to ensure that greater account is taken of environmentalproperties in the development and design of energy-operated and energy-usingproducts. The primary focus is on energy efficiency. Such information is generally recordedby life cycle assessments and documented in environmental declarations ( see “Life cycleassessments and environmental declarations” information box ).How does the Ecodesign Directive affect the lighting sector?The European Commission issued two implementing regulations in 2009: 244 / 2009 forhousehold lamps and 245 / 2009 for fluorescent lamps and high-pressure discharge lamps foroffice and street lighting.Their purpose is to improve energy efficiency in the private sphere and in commerciallighting, for example in offices, on the streets and in industrial plants. Inefficient lamps, suchas incandescent lamps by 2012, or standard fluorescent lamps, mercury vapour lamps andmagnetic ballasts are accordingly being withdrawn from the market in a phased plan. Standbylosses must be less than one watt. This threshold will be reduced to 0.5 watt in 2013.Compliance with requirements must be demonstrated by the CE mark( see “Statutory and voluntary marking” information box ).Lighting laboratoriesWhat are lighting laboratories?During product development, a performance specification is defined which sets out thephotometric and electrical properties (in lux, lumen, candela, kelvin, etc.) which a luminairehas or should achieve in service. The results and progress made during development aremeasured and verified in accredited lighting laboratories. This applies both to standardluminaires and to customised project and special-purpose luminaires.Why do we use lighting laboratories?A lighting laboratory is used, on the one hand, during luminaire development and, on theother hand, to document photometric data for customers. Development processes can beaccelerated if R&D has access to in-house laboratory facilities. Once luminaire developmentis complete, the product is tested once more in the laboratory to check that all thecriteria of the performance specification have been met.»»»4.4. Quality and safetyThe Zumtobel Group guarantees that itsproducts are of high quality. This is ensured bywell-organised, highly efficient working proceduresand by thorough material and productinspection. The Zumtobel Group ensuresthe highest possible quality at all stages of theproduct life cycle.Certified quality of all processesVerification of manufacturing processes andongoing monitoring ensure stable processingquality throughout the manufacturing process.So in addition to absolute customer focus, thequality management system concentrates onthe continuous improvement of maximallydefect-free processes using the Lean Six Sigmaapproach ( see “Sustainability management”section and “Lean Six Sigma” informationbox ). In the Six Sigma method, excellentprocess quality is equivalent to 3.4 errors permillion possible cases. In order to maintainand communicate this high standard, all of theZumtobel Group’s worldwide productionsites, with the exception of two small plants inthe USA, are certified to the ISO 9001 internationalstandard for quality management systems.The first certification was obtained backin 1987 by the Dornbirn component plant, followedby the Dornbirn luminaire plant in 1991.A plant is only certified if it can demonstratethat it is continuously improving all processesin such a way that not only customer expectationsbut also local and statutory requirementsare constantly met.At Tridonic, the risks involved in product manufactureand design are additionally analysedand the results used as the basis for measuresat all the relevant plants. The method used isFailure Mode and Effects Analysis. At Tridonic,the Total Quality Management approach will infuture provide an overarching framework forquality management and the Lean Six Sigmaapproach.Quality-assured productsIn order to guarantee the highest possibleproduct quality and safety, the materialsused are selected according to strict criteria( see “Materials usage” section ) and subjectedto thorough product testing. In the courseof production, products undergo constantinspection to ensure optimum quality. Aftereach manufacturing step, quality is checked at“quality gates”, for example in terms of function,dimensions and completeness. All products(100 %) are subjected to – in most cases– automated safety and functional testing.A more detailed product audit is also carriedout on a random sampling basis.Guaranteed compliance with all regulationsThe product quality of all the ZumtobelGroup’s brands guarantees that all statutorystandards and regulations are met or, insome cases, exceeded. This applies in particularto lighting quality and energy efficiencyand to mandatory marking requirements.Statutory regulations include CE marking ( see“Statutory and voluntary product marking”62 63

»»»»information box ), REACh ( see “REACh”information box ), RoHS ( see “RoHS”information box ) and WEEE ( see “WEEE”information box ). Thorn and Zumtobel alsotake indoor lighting standards into account indeveloping their products. These include EN12464 (Lighting of workplaces: indoor and outdoorworkplaces), EN 12193 (Sports lighting)and EN 1838 (emergency / safety lighting). Theoutdoor lighting standard EN 13201 also appliesto Thorn. Consumption values for lightingsystems are based on the Energy Performanceof Buildings Directive ( EPBD, see “Sustainablelighting solution” section ).Many products are voluntarily included in theENEC Mark scheme ( see “ENEC” informationbox ). The Thorn and Zumtobel brandsare in a position to mark more than 90 %of their products, especially their standardproducts. The same applies to around 90 % ofTridonic’s lighting components and electroniccontrol gear. Special-purpose products arenot marked. Since ENEC does not cover lightsources, LEDs cannot be included.Zumtobel brand’s voluntary 5-year warrantyIn order to provide its customers with the reassurancethey expect when buying new technologies,with effect from 1 April 2010, theZumtobel brand is voluntarily extending thetwo-year warranty required by EU legislationby a further three years for the entire lightingsystem including ballasts or control gear. Onlywear parts such as conventional light sourcesor emergency lighting batteries are excluded.The LEDs in LED luminaires are also includedin the warranty.Promoting quality in the supply chainThe Zumtobel Group is renowned as a supplierof quality products. It expects the samefrom its own suppliers. Selecting new suppliersinvolves the supplier going through a processin which their performance is systematicallyassessed by questionnaires and audits.Professional communication and cooperationwith suppliers allows both parties to identifyand eliminate possible risks in good time( see “Suppliers” chapter ).»Complaints are an opportunity,customer satisfaction is the goalA product’s quality is defined by the customer’srequirements. Complaints are accordinglyseen as an opportunity to further enhanceproduct quality. This is achieved by analysingthe reason for the complaint and, whererelevant, implementing corrective and preventivemeasures on the product or process inaddition to immediate action, with the aim ofavoiding future defects.Surveys also help to measure customer brandsatisfaction. Thorn and Zumtobel regularlycarry out surveys of architects, dealers, electriciansand lighting designers across Europe.On average, between 1,000 and 1,500 customersare contacted annually and questionedby telephone or online about the products’strengths and weaknesses and also aboutissues such as energy efficiency. In the mostrecent survey, the Zumtobel brand scoredparticularly well in terms of product quality.Thorn excels in its price / performance ratio.The brands use the feedback from the surveyto step up the pace of improvements.Reliable take-back systemAnother feature of a quality product is that itis as simple as possible to dispose of. On theone hand, this is already taken into accountduring product development: on recycling theproducts should be easy to dismantle and, ifpossible, contain no hazardous substances.On the other hand, the Group is obliged tomaintain collection points to which customerscan return their WEEE-marked products ( see“Statutory and voluntary product marking”information box ). Instead of setting up its owncollection points, the Zumtobel Group relieson external organisations which charge appropriatefees for the service.64 65

iStatutory and voluntary product markingCE markThe CE mark (Conformité Européenne, indicating compliance with EU Directives) isan administrative mark of the European Commission introduced in 1993 by Directive93 / 68 / EEC.EU Directives specify numerous safety and health requirements to ensure consumerprotection for the widest variety of products. The CE marking indicates that the productconforms to the relevant requirements. These also include appropriate evaluation methodssuch as hazard analysis, risk assessment and verification of compliance with standards.The CE mark is a mandatory mark. The manufacturer or importer must declare its ownproducts so that the inspection authorities can establish whether all the standards andregulations applicable to a product have been complied with.ENEC mark“European Norms Electrical Certification” (ENEC) is a voluntary test mark which wasintroduced in 1993 and most recently updated in 2008. At the initiative of Europeanmanufacturers’ associations, the European testing and certification bodies have agreed toassess EU safety requirements on electrical engineering products on a uniform basis.An ENEC certificate is granted if the product complies with the applicable European standards.Manufacturing must also be governed by a quality management system (e.g. based onDIN EN ISO 9001). The manufacturer or importer must have its products tested by anexternal body (authorised test centre) and their conformity with the applicable standardsand regulations confirmed. These tests must be regularly repeated.WEEE mark for waste electrical and electronic equipmentDirective 2002 / 96 / EC on waste electrical and electronic equipment (WEEE) has been inforce since 2003 and was to be transposed into national law by mid 2005.Using avoidance and reduction methods, the aim of the WEEE Directive is to ensureenvironmentally compatible disposal of increasing quantities of electronic scrap by extendingthe manufacturer’s responsibility. Every manufacturer is registered and is responsiblefor taking back and recycling its electrical and electronic equipment. It must be possible forevery customer to have their electronic scrap from their private household disposedof free of charge.Both in Germany and Austria, the law was framed such that customers are able to returnwaste appliances to municipal collection points. The manufacturers pay an appropriate fee.However, the manufacturers also have the option of offering their own collection system.66 67

68 69Light helps us find our way and keeps us safe.Light guides us on our journeys and comes tothe rescue in an emergency.

»»»»5. In-process environmentalprotection5.1. IntroductionEco-friendly products and resource-efficientproductionFor the Zumtobel Group, protecting theen vironment is a key consideration as wedevelop innovative and energy-efficient productsand strive to ensure that our productionoperations are eco-friendly and make efficientuse of natural resources.In-process environmental protection forms anintegral part of our sustainability strategy andof the Code of Conduct for Zumtobel Groupemployees ( see “Sustainability standards”section ). The importance the company assignsto protecting the environment is also clearlyreflected in the environment, health and safetyguidelines and the quality policy of the LightingSegment, as well as in the corporate policies ofthe Components Segment.One key lever in terms of in-process environmentalprotection is process optimisationalong the entire value chain. At all ZumtobelGroup plants production procedures aregeared to the efficient use of resources andsubject to continuous improvement in linewith Lean Six Sigma methodology ( see “LeanSix Sigma” in chapter 2 “Sustainability management”). The focus here is on the efficientuse of materials and energy, avoiding andreducing emissions and waste, and employingenvironmentally compatible packagingconcepts.5.2. EnvironmentalmanagementEnvironmental management at the ZumtobelGroup is based on two main pillars: certifiedenvironmental management systems in linewith the ISO 14001 standard (see “ISO 14001”information box) and the application of LeanSix Sigma methods.Certification of an environmental managementsystem to ISO 14001 calls for, inparticular, the systematic and continuousimprovement of the company’s environmentalperformance. The Lean Six Sigma managementphilosophy supports measures in allprocesses, thereby also benefitting in-processenvironmental protection ( see informationbox in chapter “Sustainability in the ZumtobelGroup” ). Environmental management systemsenable those responsible on site to respondcorrectly to local regulations and provisionsand thereby optimise the local procurement,production and sales processes, enabling moreefficient use to be made of resources.Environmental management:global guidelines, local implementationThe Group’s lighting and components plantsare committed to enforcing strict environment,health and safety guidelines in the productionsector which often go far beyond therelevant legal requirements. The overarchingframework is provided by a quality policy andenvironmental, health and safety guidelines inthe Lighting Segment and by corporate policiesin the Components Segment ( see “Qualityand safety” section ).»»Environmental management systems governprocesses for the avoidance and reductionof energy consumption, emissions, waste andwater consumption. They also coordinate theuse of materials, recycling and the dischargeof wastewater. The various plants apply themanagement systems with different areas ofemphasis.The field of environmental management isrepresented by a single coordination office ineach case for the European operations of theLighting Segment and for the global operationsof the Components Segment. The coordinationoffices are responsible for issuing guidelinesand prescribing structures for continuousimprovement in the shape of environment,health and safety programmes. To ensure thatdue account is taken of local requirements ofthe various processes, responsibility for thelocal organisation of the environmental managementsystems lies with the plants.In the Components Segment, a distinction ismade between the electronic and magneticplants.Commended and certified environmentalmanagement systemsAs one of its top sustainability goals ( see“Sustainability in the Zumtobel Group” p. 31 )the Zumtobel Group is targeting the gradualcertification of the environmental managementsystems at all its lighting and electronicsplants worldwide in line with the ISO 14001standard. All the electronics plants and theEuropean lighting plants are due to be certifiedby the 2010 / 11 financial year. Certificationof the lighting plants outside Europe is thenscheduled to follow by 2015.The initial certification of a lighting plant to ISO14001 took place back in 1997 in Landskrona(Sweden). By the end of the 2009 / 10 financialyear, four other plants in the Lighting Segmenthad followed suit. Certification of the plantin Les Andelys is planned for the 2010 / 11financial year.The Components Segment had its main plantin Dornbirn certified to ISO 14001 in 2004.As the first plant in the Group to do so, inthe 2008 / 09 financial year this plant was alsocertified in line with the occupational healthand safety management specification OHSAS18001. The Innsbruck plant was similarlycertified early in 2010. In addition, the plantsin Innsbruck, Jennersdorf and Shenzhen havealso been certified to ISO 14001. Certificationof the Ennenda plant in Switzerland, TridonicControls & Systems in Dornbirn, Austria andthe Spennymoor plant in the UK is scheduledfor the 2010 / 11 financial year ( see the overviewof plants certified to ISO 14001 in the“Facts & figures” chapter, p. 113 ).70 71

i»The Zumtobel Group also squares up to itsresponsibility towards people and the environmentwhere its supply chain is concerned. TheComponents Segment requests informationfrom all its key suppliers regarding compliancewith the Zumtobel Group’s Code of Conductand observance of international quality andenvironmental standards. Since the beginningof 2010, the Lighting Segment has been assessingcompliance with quality and environmentalstandards in line with ISO 9001 and ISO 14001for all new suppliers of production materialand merchandise ( see “Supplier management”chapter ).Environmental management in line with ISO 14001What does ISO 14001 cover?The international ISO 14001 standard provides recognised requirements for an environmentalmanagement system. Its primary goal is to promote the protection of the environmentand prevent environmental impacts while respecting socio-economic requirements.What is the main focus of ISO 14001?The main focus of ISO 14001 is on the continuous improvement of all environmentally relevantprocedures and processes. These concern the assessment and ongoing enhancementof the environmental management system and thus also the improvement of the company’senvironmental performance and the use of processes, methods, materials or products toavoid, reduce or control environmental impacts. The continuous improvement processis based on a Plan-Do-Check-Act cycle and aligned in each case with the predefined goalrelated to the environmental performance of the organisation.What are the benefits of applying ISO 14001?An environmental management system in line with ISO 14001 provides a clear definitionof responsibilities. The documentation of the process structure makes for clarity and laysthe foundation for effectiveness and efficiency. The evaluation of risks posed by environmentallyrelevant processes can help identify potential incidents and other environmentalproblems and prevent them from occurring.The certification process also inspects the system designed to ensure that externalregulations are complied with, and this provides greater legal security.As early as 1996, the main Dornbirn plantsof both segments were accredited under the“Ökoprofit” environmental performancescheme operated by the government of theState of Vorarlberg (Austria). In 2010, bothplants were accredited for the 14th time insuccession. “Ökoprofit” is a practice-orientedprogramme for integrated and preventiveenvironmental protection. Initial accreditationinvolves the successful completion of a basicprogramme, followed in subsequent years bysupplementary programmes (for further informationvisit www.cpc.at/oeko/oe_WasIst.htm ).»»5.3. Use of materialsThe Zumtobel Group uses high-qualitymater ials. Material consumption is reducedwherever possible with a view to resourceconservation in the production process.Maintaining the highest standards of quality inall processes helps avoid rejects ( see “LeanSix Sigma” and “Quality management” ). Wecontinually strive to identify potentials formaterial savings in the production sector andto optimise our packaging.Resource efficiency in respect of materialsThe main materials used in the manufactureof our products and their packaging include:In the Lighting Segment:• Raw materials: aluminium, steel,plastic granules, paints / varnishes• Consumables: oils, lubricants, detergents• Semifinished products or parts:electronic components, light sources• Packaging material (approx. 70 %recycled): plastic film, cardboard,wooden pallets, polystyreneIn the Components Segment:• Raw materials: steel, copper wire,electronic components, insulatingmaterial, magnetic sheet steel, housingparts in steel and plastic• Consumables: solder, flux, varnishes,oils, lubricants, detergents,potting compound (resins), solvents• Packaging material: plastic film,cardboard, foamAll materials employed are selected in linewith stringent quality criteria. In a standardisedprocess, new materials are subjected toinspection with regard to factors such as customerrequirements, the requirements of theproduction process and regulated substances.The aim is to avoid production waste and keepmaterial consumption as low as possible.Additional savings potential is also exploitedat the production plants by employing environmentallycompatible product packaging, transportpackaging and repackaging systems (e.g.space-saving reels). One important criterionhere is downstream efficiency during recyclingby the customer. Individual product packagingis therefore designed whenever possible asone-way packaging in cardboard comprising98 % waste paper, or as returnable or reusablepackaging. Transport packaging made ofpolystyrene is replaced wherever possible bybubble wrap or cardboard matting, which alsocontains a high level of recycled material.Correct handling of hazardous substancesAnother important aspect of in-process environmentalprotection is the correct handling ofhazardous and other critical substances.The Zumtobel Group rigorously ensures thatbans or restrictions on the use of substancesin line with the RoHS Directive, REACh orother legal regulations are respected ( see“Regulations governing the use of materials”information box ). By way of minimum requirementsfor products, standard procedures72 73

»include running through a checklist of potentialenvironmental aspects at the product conceptstage and completing a hazardous substancessafety data sheet. Only those products arereleased that definitely include no prohibitedmaterials or only within the permissible limits,or for the use of which a statutory exemptionapplies. An in-house inspection procedureensures that all environmentally relevantrequirements are met.Replace harmful materials wherever possibleWithin the framework of the legal provisions,harmful or controversial materials are alsoused. These include mercury, cadmium, PVCand tool cleansers. In each case, observancewith the legal thresholds is ensured. Theconstant goal is to minimise the use of legallypermissible but nevertheless hazardous content(and / or emissions) and / or replace thesewith harmless alternative materials.Minimal amounts of mercury are found influorescent tubes. These are being replaced toan increasing extent by LEDs. Batteriesfor minimal lighting in the escape route andemergency lighting manufactured by the LightingSegment formerly contained the pollutantnickel cadmium. Today, in line with the BatteryDirective ( see regulations governing the use ofmaterials” information box ) only nickel-metalhydride batteries are used in escape routelighting. By 2011 / 12, in line with the Directive,this alternative will also have been fullyimplemented in the emergency lighting sectoras well.The manufacture of PVC and plastic granulateinvolves the use of hydrogen cyanide andvinyl chloride. When plastics catch fire, theycan release toxic substances such as halogensand hydrogen chloride. This is why, for thewiring of its luminaires, the Lighting Segment isreplacing cables that contain PVC with cablesthat contain no PVC, although there is no legalobligation to do so. PVC-free cables containno halogens and, in the event of fire, releasehardly any toxic fumes. Conversion measuresare scheduled for completion by the 2011 / 12financial year.iRegulations governing the use of materialsRestriction of Hazardous Substances Directive (RoHS)EU Directive 2002 / 95 / EC on the restriction of the use of certain hazardous substances inelectrical and electronic equipment, or RoHS for short, was published on 27 January 2003and passed into law across the EU in July 2006.The aim is to ban the use of toxic and polluting substances and components in electrical and electronicequipment and to accelerate the introduction of alternative products. To this end, certainthreshold values for materials contained in products were laid down, such as:• Cadmium: max. 0.01 per cent by weight• Lead, mercury, hexavalent chromium, polybrominated biphenyls (PBB) orpolybrominated diphenyl ethers (PBDE): max. 0.1 per cent by weight for eachOne exception given in the Directive is for the use of mercury in compact fluorescent lamps,where up to 5 mg per lamp is permissible.EU Regulation on Chemicals (REACh)EC Regulation No. 1907 / 2006, also known as REACh (Registration, Evaluation, Authorisation andRestriction of Chemicals) is the European legislation governing the use of chemicals. It came intoforce across the EU on 1 June 2007. REACh covers all chemical substances, regardless of whetheror not they have harmful properties.All chemical substances of which more than one metric ton per year and manufacturer or importerare produced or imported must be registered and evaluated. Every manufactureror importer who wishes to place such substances on the market must, since 1 December 2008,have their own registration number for all such substances. Before then an interim ruling wasin place.One special feature of REACh is that it also governs the exchange of information along the supplychain. Not only must suppliers provide information about each substance to their customers; thecustomers must also provide their suppliers with the information they require for registrationpurposes (above all regarding the intended uses).Directive on the take-back and recycling / disposal of waste batteries and accumulatorDirective 2006 / 66 / EC of the European Parliament and of the Council of 6 September 2006on batteries and accumulators and waste batteries and accumulators passed into law acrossthe EU in 2008.This Directive established rules prohibiting the placing on the market of certain batteries and accumulatorsin which the mercury content (0.0005 per cent by weight) or cadmium content (0.002 percent by weight) exceeds a specific limit value. The Directive also aims to promote a high collectionand recycling quota for waste batteries and better environmental performance during all phases ofthe life cycle of batteries and accumulators, all the way to recycling.74 75

5.4. Reducing energyconsumptionWhile energy is a key topic for our customersand the market as a whole, basically it must besaid that the lighting sector is not actually anenergy-intensive branch of industry, becauserelatively little energy goes into the manufactureof luminaires and components, comparedto other industries.Reducing energy consumption –a top sustainability goalThat said, in order to access savings potentialhere too, one of the areas on which environmentalmanagement at the Zumtobel Groupplants is focused is the continuous reductionof the amount of energy consumed in ourproduction operations. Cutting energy consumptionper unit manufactured is one ofthe Zumtobel Group’s top sustainability goals.For the 2010 / 11 financial year, both segmentshave set themselves the goal of defining anappropriate system of key indicators andtarget values. Current carbon emissions perunit manufactured are as follows:Few energy-intensive processesThe few energy-intensive processes at theComponents Segment’s electronics plantsinclude thermal processes such as solderingand the hardening of adhesives, as well asthe production of compressed air. At theComponents Segment’s magnetic plants, themost energy-intensive processes include theimpregnation process, the curing of resins,production of compressed air and punchingoperations.At all the Group’s lighting plants, the plasticinjection moulding process is particularly energyintensive and at the Lemgo plant there isalso the aluminium die-casting process, whereenergy is required at the heating and coolingstages. These processes are largely gas-fired.Replacement of older machines is consideredat regular intervals, since the introductionof new machinery can help achieve a moreenergy-efficient process and higher output.* After the move into the newmanufacturing and administrationbuilding in Spennymoor, the gasconsumption was significantly reduced.Direct energy consumption by primary energy source in MWh *40,00030,00020,00010,00008,0006,0004,0002,00002,8602,56125,85931,924OilGas7698477,6816,936OilGasIndirect energy consumption by primary energy source in MWhLighting Segment(Europe)FY 2009 / 10FY 2008 / 09Components Segment(world)FY 2009 / 10FY 2008 / 0940,00030,000Lighting Segment(Europe)20,00010,00039,71138,652FY 2009 / 10FY 2008 / 090Electricity7,6236,961District heating27,00020,250Components Segment(world)13,5006,75025,21926,721FY 2009 / 10FY 2008 / 090ElectricityDistrict heating76 77

»5.5. Water consumption inthe production sectorWater consumption is also relatively low onaccount of the technologies applied. No processwater at all is required, for example, inelectronics manufacturing in the ComponentsSegment.Low use of detergents and low waterconsumptionAt the lighting plants, by contrast, water isused in the degreasing baths where the greaseis removed from product parts, althoughthis process is being continuously improved.The basic rule here is that as little grease aspossible is applied to the parts, which arethen kept as clean as possible throughout theproduction process. This helps reduce boththe volume of chemical detergents and theamount of water required. One key developmenthere was the conversion of the paintingprocess at the Dornbirn plant to powdercoating in 2007 ( see “Conversion to powdercoating” information box ). In addition to savingsubstantial amounts of water, this also led to amarked drop in airborne emissions. Environmentallycompatible paint booths have alsobeen installed at other plants as well, includingpowder coating equipment in Spennymoorand Les Andelys.»5.6. Reducing emissions Reducing noise and airborne emissionsOne of the priorities of in-process environmentalprotection measures at the productionplants is the reduction of emissions. Environmentallyrelevant emissions include, above all,carbon dioxide (CO 2), dust, noise and effluentdischarge.The standards observed at the plants are inline with or exceed the relevant EU Directives.In part, they are based on plant-specific dustand / or noise thresholds laid down to protectneighbouring residents and also serve to safeguardthe future of production operations atthe various locations. Furthermore, measurestaken to reduce material and energy requirementsgenerally automatically lead to reductionsin carbon emissions from the productionprocess ( see “Material and energy” section ).Specific measures for the reduction of noiseand airborne emissions are drawn up and implementedfor each plant separately. Successfulprojects that can also be applied to productionprocesses at the other plants are passed onaccordingly.At the Components Segment’s plants, thefocus is on reducing pollutant emissions, andemissions of fine dust in particular. At manyplants, water-based consumables and extractorsystems with special filters are used toreduce the fine dust content in the ambientair. In the Lighting Segment, dust emissionsare minimal, particularly since conversion tostate-of-the-art, powder-coating equipment.60,00055,000Lighting Segment(Europe)iTotal water withdrawal in m 3 i Reduction of solder waste at the Components Segment’selectronics plants50,00045,00040,00026,00019,50040,35359,774Total water withdrawalFY 2009 / 10FY 2008 / 09Components Segment(world)In the course of a Lean Six Sigma project conducted in the 2008 / 09 financial year, a processwas developed to reduce the volume of solder waste from production operations at the ComponentsSegment plant in Dornbirn. Following the successful launch of this process in September2009, it was also rolled out at the other electronics plants in the Components Segment in Austria,Switzerland, the UK and China.A monitoring system was introduced to ensure the sustainability of the solder bath maintenanceprocess. The system monitors the solder input and the volume of dross to enable timely identificationand remediation of any errors in the process. In addition, the Dornbirn plant also acquired acleaning system that enables the solder in the dross that is skimmed off to be separated out as effectivelyas possible. As a result, the volume of residual dross at the components plant in Dornbirnwas reduced by 5,180 kg compared to the previous year, which equates to a drop of 29 %.13,0006,50024,54325,852FY 2009 / 10FY 2008 / 090Total water withdrawal78 79

»The use of solvents leads to emissions oflow volumes of volatile organic compounds.Emissions of ozone-depleting substances fromthe operation of refrigeration equipment arevirtually negligible. All refrigeration equipmentis regularly maintained and inspected to ensurethat no refrigerants can leak out. The heatingof the production shops leads to generation ofcombustion gases at all of the Group’s plants.Production noise is controlled in line withlocal regulations. Neighbours are requested toreport any disturbances so that these can beeliminated in future or at least reduced. Onesubstantial improvement was brought aboutby the introduction of new baling presses inthe waste storage areas at several plants inboth segments. Discarded boxes can nowbe compacted at any time without creatingnoise that could disturb neighbouring residents.A further advantage of the new equipmentis that the pressed cardboard bales canbe sold without further processing. In addition,the number of truck runs required to transportthe bales has been reducedsignificantly( see “Efficient transport logistics” ).Effluent discharge:four-stage water treatment processThe painting process at the lighting plantsleads to emissions of solvents and chemicaldetergents into the process water. The wateris treated in four stages: first it is brought toa neutral ph level; then the paint particlesare filtered out; the filter residue is pressedinto filter cakes which are passed on to localdisposal operators; and finally the water iscarefully inspected and returned to the loop.5.7. Waste and recyclingThrough the ongoing avoidance, reduction,systematic segregation and optimum recyclingof waste, the Zumtobel Group pursues arigorous approach to resource conservation.The individual processes are optimised foreach plant. The aim is to ensure maximumefficiency in use of material and productionprocess design, and to focus on avoiding wasteas early as the process planning stage. Whenwaste is generated despite these measures itshould be recycled in the best possible way.Total direct and indirect greenhouse gas emissions by weight (in tonnes of carbon)Total water discharge in m 310,0007,500Lighting Segment(Europe)60,00055,000Lighting Segment(Europe)5,0002,50007516715,7717,030Direct greenhouse gases9,9629,7151,2931,259Indirect greenhouse gasesFY 2009 / 10FY 2008 / 0950,00045,00040,00040,35359,774FY 2009 / 10FY 2008 / 09Total water discharge10,0007,500Components Segment(world)30,00022,500Components Segment(world)5,0002,50002152379309368,4389,570FY 2009 / 10FY 2008 / 0915,0007,50024,54325,852FY 2009 / 10FY 2008 / 09Direct greenhouse gasesIndirect greenhouse gases0Total water discharge80 81

Avoidance, systematic segregation andoptimum recycling of wasteThe waste disposal and recycling guidelines ofthe Lighting Segment can be viewed online; inaddition, courses in waste avoidance, separationand collection are offered for employees.In line with the specific production processes,different kinds of waste are generated in thetwo segments. In the Lighting Segment, plastics,wood (from pallet packaging), paper, cardboardand segregated metals (iron, copperand aluminium) are collected and dependingon recyclability, sent for recycling or disposal.Hazardous waste in this segment includes lubricants,oils, paint residues and filter residuesfrom wastewater treatment.Total weight of waste by type and disposal method (in tons)6.0004.5003.0001.50005.0003.7502.5001.2505.383Non-haz. waste/recycling Non-haz. waste/disposal Hazardous waste3.3844.054 5.520469422676224The Components Segment also segregateswaste packaging from materials (cardboardboxes, plastic film, polystyrene, webbing,wood), metals (iron, copper, aluminium),plastics, cables, coils, magnetic waste and electronicwaste as far as possible and sends themfor recycling. Hazardous waste in this segmentincludes waste oil, resin waste, solvents, paints,adhesive residues, etc. which are handled bylocal recycling and waste disposal companies.In the reporting year, the total volume ofwaste in the Lighting Segment was reducedfrom 6,457,587 kg in the previous year to4,516,114 kg. The recycling quota in the LightingSegment remained unchanged at 85 %,while in the Components Segment it fell from95 % to its current level of 88 %.2103326244Lighting Segment(Europe)FY 2009 / 10FY 2008 / 09Components Segment(world)FY 2009 / 10FY 2008 / 09Conversion to powder coating at theZumtobel brand’s main plant in DornbirnNew production processes have a beneficialimpact on the environment and on costsIn 2007, the cataphoretic dip coating processfor sheet metal parts at the lighting plant inDornbirn was replaced by a new powdercoating system.In the past, solvents were added to paintsand varnishes which were then sprayed ontothe parts. In the powder coating process,paint particles are applied electrostatically.This dispenses with the need for waste airtreatment with filter systems and afterburners.The volume of detergents required forcleaning the parts before coating has alsobeen reduced.The new powder coating process has meantthat the volume of wastewater has been cutby 80 %. Energy requirements in terms ofpower and heat are each down by 40 %. Hazardouswaste of 23 metric tons per year hasbeen eliminated. And in all, 40 % of the carbonemissions from the painting process, whichequates to 500 metric tons a year, no longeroccur. In terms of operating costs, this means adrop of 58 %.5.7. Efficient transport logisticsOne important lever when it comes to reducingemissions is making transport logistics asefficient as possible. To enable the more flexibleimplementation of the transport conceptsof the two segments, all transport activitieshave been outsourced to external serviceproviders.Means of transport selected in line withcommercial and ecological criteriaThe transport concepts in both segments arealigned with multiple criteria. When it comesto selecting the means of transport, commercialconsiderations and scheduling take priority.At the same time, the volumes of carbonemissions generated by the different means oftransport are also taken into account. In manycases, the best commercial option is also themost sensible from an ecological viewpoint.Air freight, for example, is avoided on accountof the high costs and products are preferablydispatched by sea instead. When selecting atransport provider, the Lighting Segment givespreference to suppliers who use rail transportor have integrated the railways into theirnetwork.When transporting goods to market, thevolume of goods being transported is anothercriterion that is taken into account. This meansthat different service providers are commissioneddepending on whether small parcels,consignments of goods, part or full loads areto be shipped.0Non-haz. waste/recycling Non-haz. waste/disposal Hazardous waste82 83

Optimised transport processes duringprocurement, production and salesMaking use of combined procurement, productionand sales consignments is becomingincreasingly common. This means that alongwith the choice of the right logistics partner,internal processes including transport processesare subject to ongoing optimisation.By way of example, at many Zumtobel Groupplants baling presses are now in use to reducevolumes of waste and minimise the numberof truck runs required to collect it.In the Lighting Segment, deliveries involvingthe collection of goods from several warehousesare largely avoided. Along with the useof double-decker loading for trucks, one keyaspect of the transport system for procurementand production is the use of a logisticsnetwork (see information box). This involvesbundling the transport runs via a hub system(a star-shaped network with a central hub)which the Components Segment will also beutilising from May 2010 onwards.This logistics network in the Lighting Segmentis also linked to the sales network which worksin line with the fast and ecologically meaningful“milk run principle” (with just-in-time deliveries).Wherever it makes sense, return tripsfrom customers are used to transport rawmaterials and semi-finished products to therespective production plants. Another aspectthat supports the more efficient use of resourcesin the transport sector is the ongoingoptimisation of order picking processes.The increased level of procurement in Chinaby the Components Segment is to be offsetby making better use of the volume of freight,e.g. using less packaging material or loading thechosen means of transport more efficiently.The capacity of containers, for example, is tobe exploited more effectively and to this enda suitable packaging concept is being drawnup. Prototypes were tested in the 2009 / 10financial year.iThe Lighting Segment’s exemplary transport systemEver since 2002, the Lighting Segment’s production logistics operations have been combining a logisticalnetwork that links the production plants with enhanced exploitation of transport capacities. A hubsystem (a star-shaped transport network with a central hub, see diagram) is complemented by aninnovative double-decker loading system in which a metal framework creates an “upper deck” in a truck.Over long distances in particular, this makes for the optimum use of payload capacity and ensures thattransport emissions are kept down.All transport services are provided by external haulage companies. This helps to avoid trucks returningempty, since along with the Lighting Segment hubs, the trucks can also call at the haulage company’s ownhubs to pick up and drop goods for other customers, making optimum use of their payload capacity.The Lighting Segment’s logistics network comprises five hubs. The main hub in Venlo (the Netherlands)provides the central link to the four strategically located production facilities in Dornbirn, Landskrona,Spennymoor and Les Andelys.These, in turn, act as collection points for goods requiring transport to orfrom neighbouring countries within the Lighting Segment.Thanks to this concept, the Zumtobel Group’s Lighting Segment is able to ensure that the trucks operatedby its haulage partners maintain an average payload capacity of 80 %. The double-decker systemalone almost halves the transport mileage, cutting carbon emissions by at least 40 %.New Thorn and Tridonic production plant in SpennymoorThe opening of the new plant in Spennymoor, England, at the beginning of 2009 marked a milestone inin-process environmental protection. The plant features not only impressive intelligent lighting solutionsand state-of-the-art production machinery but also enhanced ergonomics in the production processesthemselves. The facility is used by the Thorn and Tridonic brands, accommodating a large lighting plantand a smaller components plant under one roof. The new production plant replaces the old, inefficientfactory where the flow of materials had been less than ideal.The following data applies to the Thorn lighting plant, which occupies the majority of the facility’ssurface area.Optimisation of production processes has cut materials flow distances by 42 %. This has led to substantialtime savings, reduced the amount of effort required from employees and halved the number of forklifttrucks needed.A new powder-coating plant has reduced harmful gaseous emissions and cut water consumption (see“New powder coating plant” information box).The intelligent building planning process included a sustainable lighting solution. Large windows(30 % glass façades on two sides) and roof windows (20 % of roof surface) let in lots of daylight.This not only saves artificial lighting but also enhances the work environment.Thanks to the various measures implemented, the Spennymoor plant can present an exemplaryenvironmental balance sheet: more than 95 % of waste at the plant is sent for recycling, and compared tothe old Spennymoor factory, carbon emissions have been cut by roughly a quarter (from 10.2 million kgCO 2to 7.7 million kg).84 85

Lighting management systems deliver the right light in the rightplace at the right time. Intelligent lighting management optimisesthe balance of daylight and artificial lighting, yielding energysavings of more than 70 %.86 87

6. Employees6.1. IntroductionEmployees – the key to our successThe employees of the Zumtobel Group arethe key to the success of our company. It isthanks to the dedication of our employees,who are among the best in their specialistfields and have outstanding leadership skills,that we are able to exceed the expectations ofour customers. As. As we monitor and fosterthe professional development of our 7,329employees, we are guided by the standardsof innovation and quality that apply at thecompany.Currently, the Zumtobel Group is facingnew challenges brought about by the growingshortage of qualified professionals, the increasinginternationalisation of the business and thetechnological trend towards electronics (notleast in LEDs and control gear). Against thisbackdrop, the targeted professional developmentof our employees is more importantthan ever. Corporate HR supports localmanagement in training personnel. We arecurrently reworking and adapting our humanresources strategy to better address thesechallenges.6.2. Employee satisfactionand retentionTo operate successfully on the market and toremain competitive, the Zumtobel Group isdependent on motivated and dedicated employees.For this reason, one of the company’sprimary concerns is maintaining and continuingto improve its attractiveness as an employer.This includes aspects such as fair remuneration,individual prospects for career advancement,professional development opportunitiesand vocational training programmes, andsupport in balancing family and career.A good relationship between employerand employeeThe Zumtobel Group’s Corporate Values laythe cornerstone for the relationship betweenemployer and employee. We aim to offer ouremployees unique opportunities to developto their full potential and deliver outstandingperformance. At the same time, the ZumtobelGroup promotesan atmosphere of openness, creativity,honesty and respect for cultural diversity.We encourage the entrepreneurial spiritof our employees.Group-wide employee surveyIn the 2007 / 08 financial year, the ZumtobelGroup carried out its first Group-wideemployee survey with the goal of quantifyingthe job satisfaction of our employees and theintegration of our Corporate Values in theirdaily work. Sixty per cent of the workforcetook part in the survey, which gave employeesthe opportunity to evaluate aspects of theirwork such as customer focus and team spirit.Both of these aspects received high marks. Incontrast, employees rated access to professionaltraining and the leadership provided bymanagement as in need of improvement. Thisled to the introduction of measures such asmandatory leadership training for all managers.Total workforce by region based on 2009 / 10 financial yearZumtobel GroupEurope 73 %Asia 17 %Australia & New Zealand 7 %USA 3 %88 89

6.3. Human resourcesdevelopmentOur human resources development meas uresare designed to foster and grow the achievementpotential of our people and toacquire the right talents for key positions.At Zumtobel, the importance of systematichuman resources development, which addressesspecific needs, has grown over theyears – and is all the more relevant in timesof economic crises.Continuing professional developmentbased on employee review meetingsOur employee review meetings lay thegroundwork for the individual advancementof each employee. The entire workforceundergoes these reviews, which take placeonce a year between employee and manager.Performance, professional competence andsoft skills are evaluated, objectives are set forthe coming year and individual developmentmeasures are defined.In addition, managers can make use of anonline application to receive a 360-degreereview of their performance in which specificfeedback is given by colleagues and customers.This allows an evaluation of performance,professional competence and soft skills froma number of different perspectives.To further their professional development,employees can attend external training coursesand participate in our constantly expandinginternal training programme. Specialised brandacademies cover specific professional skills.Corporate training offers training in leadershipand soft skills, including courses in communicationand moderation as well as projectmanagement seminars.In light of the growing internationalisation ofthe Zumtobel Group, our internal leadershiptraining was reconceptualised in the 2008 / 09financial year. Within three years, all managersacross the Group must complete a specialtraining course tailored to their individualexperience and level of hierarchy. Classes formanagers with international responsibilitiesare conducted in English, while managerswith local responsibilities attend courses inthe language of their country. In the 2009 / 10financial year, managers from across the ZumtobelGroup completed a total of 1,076 days oftraining. (2008 / 09: 870 days).In terms of the sustainability, the ZumtobelGroup takes advantage of the possibility ofoffering training content locally. With a view toTraining measures for management in person training days based on 2009 / 10 financial yearlong-term sustainability, the Zumtobel Groupalso takes advantage of opportunities to offerlearning content on a decentralised basis, asnecessary. This is accomplished in part throughclassroom training that is offered locally indifferent countries, and in part through theintensive use of e-learning within a blendedlearning approach.Specialised brand academiesAll employees with direct customer contact,above all our sales staff, are “ambassadors oflight” for the brands of the Zumtobel Group.For this reason, all three brands offer a specialtraining programme for these employees.The Zumtobel brand offers on-the-job trainingthat allows employees to qualify as ZumtobelLighting Solution Consultants; in the 2009 / 10financial year, sales staff including distributorsparticipated in a total of 2,341 training days(2008 / 09: 2206). The course content includedbrand-specific skills related to technologies,products, applications, customer needs andbusiness processes. The courses are held atZumtobel’s three Light Forums and 15 LightCentres.Thorn founded the Thorn Academy of Lightin the 2007 / 08 financial year, and at thebeginning of 2009 the academy moved intoattractive premises in the new Thorn plantin Spennymoor, UK. In the 2008 / 09 financialyear, employees attended a total of 526 daysof training at the Thorn Academy of Light.This represents two days of professionaltraining per year for each member of the salesstaff.At Tridonic, an in-house academy – theTridonic Academy in Dornbirn, Austria – wasalso established in the 2007 / 08 financial year.The first year already saw attendance byinternational participants from more than 20different countries. From the very beginning,courses were offered on a regional basis asrequired, for example in Turkey, China, Singaporeand Australia. In the 2009 / 10 financialyear, employees including distributors participatedin 1,345.5 days of training through theTridonic Academy (2008 / 09: 1,251).The courses are conducted by experts fromall relevant departments. High minimumstandards are set for course content to ensurethat the training is of high quality. The trainerscomplete professional “train the trainer”courses and receive internal coaching on howto conduct seminars.One important aspect of the learning contentis the topic of sustainability – specifically,sustainable lighting solutions. Here the coursesintegrate elements of Thorn’s PEC andZumtobel’s Humanergy Balance initiatives (see“Brand sustainability campaigns” section). Inautumn 2009, the Zumtobel brand also beganoffering special seminar modules on the topicof sustainability. Tridonic will also be includingmaterials from its “ecolution” campaign in itscourse content in the future.800Total workforce: 7,3296004002000LightingSegmentComponentsSegmentZumtobel AGSenior management 27 / 7Managers with more than eight years’managerial experience 99 / 54Managers with up to eight years’managerial experience 209 / 96High potentials 366 / 129 / 590 91

Group makes no distinction between femaleand male employees and always endeavours tohire local employees.We make an active effort to promote thediversity of the Group’s workforce, especiallyregarding multiculturalism and internationality.In addition to the specific language coursesoffered by external partners at Zumtobeland Tridonic, Corporate Training offers atraining module on intercultural diversity.Foreign assignments and job rotation supportthe internationalisation of the company andoffer employees the opportunity to extendtheir personal and professional developmentbeyond national boundaries.Employee diversity (LA13)The reintegration of employees who returnto work after maternity and parental leave,complies with legal requirements and in somecases goes a step further. For example, modelsthat allow flexible working hours and workingfrom home make it easier to balance careerand family. Tridonic offers subsidised daycarefor pre-school children at its main plant inDornbirn.Job opportunities for young peoplewith disabilitiesThe Zumtobel Group complies with the legalrequirements for employing the disabled andendeavours to hire persons with disabilitiesGender breakdown basedon 2009 / 10 financial year *Male 62 %Female 38 %Age structure basedon 2009 / 10 financial year *when possible. This targeted integration andother support programmes for disabledpersons help remove the barriers to joiningthe workforce. When we are not able to fillthe quota for disabled employees at a specificfacility, the Zumtobel Group pays the legallyrequired fee.As an expression of our commitment in thisarea, in 1989 the Lighting Segment launcheda special initiative for the integration of youngpeople with disabilities at the main plant inDornbirn. Here we usually exceed the legalquota (1 in 25) for disabled employees. Atpresent, 35 employees with disabilities work inthe Dornbirn lighting plant.As part of the Zumtobel brand’s two-yearcareer programme for persons with disabilitiesin Dornbirn, young people with disabilitiesare gradually introduced to the workingenvironment of a production facility. Thisspecial job training helps prepare them for anindependent career in the future. Every year,four or five young people join the programme;since 1989, more than 70 have completed thetraining. Twenty of these young people subsequentlytook up permanent employment withthe company.6.5. Occupationalhealth and safetyThe health and safety of our employees areassigned high priority throughout the Group.Consequently, the Lighting and ComponentsSegments have introduced specific environmental,health and safety guidelines. Theseguidelines take the relevant international andnational legislation and regulations as theirminimum standards. Compliance with theguidelines is monitored by a health and safetyrepresentative in each facility. In a pilot project,the components plants in Dornbirn andInnsbruck were certified in accordance withthe standards of the OHSAS 18001 health andsafety management system in 2009 and 2010respectively.Campaign to reduce workplace accidentsIn the 2009 / 10 financial year, 157 workplaceaccidents occurred at Zumtobel Group facilities(2008 / 09: 181). The majority of the accidentswere caused by human error, with cutsbeing the most common injuries.An accident reduction campaign was launchedin the 2008 / 09 financial year. Along withintensive and ongoing communication andeducation for employees on preventing unsafeworkplace behaviours, the different facilitieshave developed and carried out specificmeasures to prevent workplace accidents. Forexample, new equipment undergoes a safety< 18 1 %> 18 - 30 21 %> 30 - 45 44 %> 45 - 55 26 %> 55 8 %* Lighting Segment (Europe) and Components Segment (worldwide) based on 2009 / 10 financial year94 95

inspection and employees receive training inall safety-related aspects of the equipment. Inthe Dornbirn components plant, productionworkers now wear safety shoes and use safetyknives. At the components facility in Innsbruck,risk assessments of plant and equipment havebeen performed in cooperation with theAustrian Social Insurance for OccupationalRisks (AUVA), and suggestions for improvingoccupational safety taken up. Uniform monthlyTRI rate (total recorded injuries per millionhours worked) reporting has been introducedin all our plants.Taken together, the lighting plants in Europereported an increase in the TRI rate, from 17.4in the previous year to 21.9 in the 2009 / 10financial year. In our components plants, theworldwide TRI rate saw a substantial fall from12.2 in 2008 / 09 to 8.3 in the reporting year. AtGroup level this represents a consolidated TRIrate of 17.4. In the long term, the ZumtobelGroup is aiming to reduce the TRI rate to 10.Preventive health care and counsellingThe Zumtobel Group’s activities related topreventive health care and counselling areorganised in a number of local projects. Forexample, many facilities offer on-site influenzavaccinations. The components plants inDornbirn and Innsbruck have held trainingcourses for managers in safety awareness andaccountability. In 2010, the Usingen lightingplant launched a long-term health project thatis initially focusing on back pain prevention,but will be expanded to include topics suchas healthy nutrition and stress relief. Thorn inChina has also recognised the importance ofpromoting health in the workplace, resultingin the launch of several activities. The annualhealth check-up for employees and a companybadminton programme have both been verywell received. Further initiatives are beingplanned.The number of working days missed due toinjuries is measured by the LTI rate (time lostto injuries per million hours worked); in the2009 / 10 financial year, the LTI rate was 18.13(2008 / 09: 14.8) in the lighting plants and 7.34(2008 / 09: 10.5) in the components plants.96 97

98 99Older people need larger amounts ofthe right kind of light. Light enhances vision,regulates the body’s daily rhythms andimproves the quality of life.

7. Supplier management7.1. IntroductionThe cooperation between the companies ofthe Zumtobel Group and their suppliers isbuilt for longevity. Based on this, mutual fairnessshould be used to create both expertiseand a dependable supply chain.A “second source” strategy makes sure thatproduction at Zumtobel is not held becauseof to a lack of supplies. This is achieved byestablishing relations with several alternativesuppliers for the same product.Compliance with social and environmentalstandards along the entire supply chain isassigned high priority in both the LightingSegment and the Components Segment, asthis is the only way to ensure sustainabilityin the production sector.7.2. Supplier managementat the Zumtobel GroupThe Zumtobel Group brands supply top qualityproducts. This is only possible if the entirevalue chain is designed for sustainability. Consequently,for a long time now the Group hasbeen committed to long-term partnershipswith its key suppliers. This enables suppliersto make constant progress as they provide theGroup’s companies with the best materials andmost innovative intermediate products.Countries of origin: both segments sourcetheir supplies as locally as possibleThe key commodity groups for the Lightingand Components Segments are sourced indifferent countries.The Components Segment purchases mainlyelectronic components, steel and copper wire.The main country of origin for the electronicscomponents is China, the country to which themost competitive suppliers have relocated inthe course of globalisation. Steel, by contrast,is sourced in Central Europe for the Europeanproduction plants and in Singapore for Australia.All four magnetic ballast plants obtaintheir copper wire locally.The key commodity groups for the Purchasingdepartments in the Lighting Segment are electroniccomponents (such as ballasts), metals(such as aluminium and steel) and plasticgranules. To enable them to meet fluctuatingcustomer demand as flexibly and rapidlyas possible, the European luminaire plantsobtain these materials as locally as possible(“buy local” strategy). This means that themain countries of origin for the Lighting Segment,accounting for 87.8 % of the purchasingvolume, are Germany, Austria, France, the UK,Italy and Sweden, plus China. The proportionof goods sourced in Asia in the 2008 / 09financial year was 5.1 %. However, a restructuringprocess is currently underway to shiftthat proportion of sourcing for the Europeanplants back to Europe. By the end of April2010, 80 % had been relocated to Europe. Theaim now is to complete this process by theend of the 2010 / 11 financial year. This meansthat the majority of materials and intermediateproducts are sourced from countries that representa low risk in terms of compliance withenvironmental and social standards.Zero tolerance for corruption; strictcompliance with ILO Core Labour StandardsNo corruption is tolerated in the businessactivities of the Zumtobel Group and its segments.Accordingly, in September 2004 theZumtobel Group became the first Austriansignatory to the guidelines of the PartneringAgainst Corruption Initiative (PACI) ofthe World Economic Forum in Davos(see “Corporate governance” section).The provisions of the PACI guideline arereflected in the Zumtobel Group’s Codeof Conduct (see “Sustainability management”section). The Code lays down the behaviourexpected of all Group employees as well asof external third parties such as suppliersin critical areas of business life. Along withcombating corruption, the recognition of theCore Labour Standards of the ILO formsan essential component of the Code. Thesestandards demand freedom of association andrecognition of the right to collective bargaining,and prohibit both child labour and forcedlabour (for further information visit www.ilo.org ). The Zumtobel Group is not aware ofany cases in which its suppliers have failed tocomply with the ILO Core Labour Standards.If a business partner should fail to comply withthese provisions or other environmental orsocial standards laid down by the Lighting andComponents Segments, the party concernedwill be requested to desist from such behaviour.If this does not happen within a reasonableperiod, management will take appropriatesteps, which could mean recourse to law orterminating collaboration.As an internationally active company, the ZumtobelGroup invariably respects the applicablenational law when operating or manufacturingoutside Austria.100 101

Long-term supplier managementfounded on trustBoth Segments organise their purchasingactivities in line with the “lead buyer” system.By bundling requirements for specific commoditygroups, specialised but decentralisedpurchasers (lead buyers) can strengthen theirnegotiating position with respect to supplierswho are often also global players. This methodhas the added benefit of ensuring a coordinatedstrategic approach within the commoditygroups. The lead buyer’s requirements arethen implemented by the local purchasingdepartments by accessing the terms negotiatedby the lead buyer.Both the Components Segment and theLighting Segment place great importance tobuilding trusting long-term relationships withtheir suppliers. This is particularly pronouncedin the Components Segment, where businessrelations with 60 % of the total of around300 suppliers have been in place for over tenyears. Another 34 % date back between fiveand ten years and the remaining six per centhave been created during the past five years.The segment’s structured supplier managementsystem, based on regular inspections andtraining measures, has played its part here.All of these efforts are founded on the verydemanding expectations that the ComponentsSegment has of its suppliers, who areexpected to contribute their knowledge andinnovative capabilities to the business partnership.This means that they need to commandthe appropriate level of creative potentialto meet the technical requirements and addvalue of their own.Systematic quality monitoringand supplier auditsWith a view to supplier management, theComponents Segment has defined globalprocesses for the approval of new suppliers,for regular supplier assessments, for auditsand for training measures, which means thatevery step is duly documented. This effectivelyprevents any irregularities.Before a new supplier is approved, two peoplefrom different functions conduct a threestagequalification process. In stage two, forexample, the supplier must provide writtenconfirmation that a verifiable environmentalmanagement system is in place (although notnecessarily compliant with ISO 14001) andthat the Code of Conduct, of which they havereceived a copy, will be observed. This meansthat compliance with the ILO Core LabourStandards also forms part of the prerequisitesfor any business relationship. ComponentsSegment suppliers who account for 86 %of the segment’s purchasing volume haveconfirmed that they will observe the Code ofConduct. The remainder were able to provethat they had their own appropriate standardsin place. In future, the Components Segmentwill be increasingly insisting on documentaryproof that the ILO Core Labour Standards areadequately observed and will make this part ofits standard supply agreements.Supplier assessments are conducted every sixmonths. These assess product quality, scheduleeffectiveness and service. At the sametime, compliance with the Code of Conductand the ongoing existence of an effectiveenvironmental management system are alsochecked. In addition, based on the findings ofthe supplier assessments, in November 2008the four best suppliers were presented withan Excellent Supplier Award. Presentation ofthese annual awards was then shelved for oneyear on account of the economic crisis, butthe next awards ceremony is now scheduledfor autumn 2010. The. The Excellent SupplierAward also serves to build trust and strengthenlong-term ties with outstanding suppliers.The criteria for the supplier audit are basedon those of the supplier assessment. An auditis performed if the assessment reveals criticalvalues for a particular supplier or if a newsupplier is scheduled for approval. As suppliersare considered partners, they should not feelthreatened by the audit process. The aim israther to reveal scope for improvement andderive the appropriate measures. Here, too,one criterion is the existence of an effectiveenvironmental management system. Ten auditors,all trained in-house, conduct the audits.In future, they will be aiming to take greateraccount of the ILO Core Labour Standards.Supplier training measures to remedy qualityproblems are introduced selectively if a supplierfails to adequately meet the requirementsof the zero defect philosophy in line withthe Six Sigma methodology. On average, thepurchasing function in the Components Segmentconducts 25 Lean Six Sigma projects peryear. These focus on process improvementsand the resulting cost savings. Several suchprojects have been designed in collaborationwith suppliers to help introduce them to themethodology and benefits of Lean Six Sigma.The projects target such aspects as cuttingproduction waste at the supplier’s premises,reducing lead times by increasing flexibility, oravoiding unscheduled transport runs. By wayof example, one project conducted in the2008 / 09 financial year in conjunction withthree key suppliers to the main componentsplant in Dornbirn concerned the reductionof unpacking times and thus the simplifiedreceipt of incoming goods. The time and effortexpended in the incoming goods departmentwere cut by one third.In the Lighting Segment, by way of risk management,since the beginning of 2010 all newsuppliers of production material and commoditieshave been subjected to an assessmentprocess that is due to be in place at allLighting Segment production plants by autumn2010. Along with a self-disclosure document,this also includes an audit when there is afirm intention to do business with the supplierin question. The audit includes checkingcompliance with legal provisions such as RoHS,REACH and WEEE (see “In-process environmentalprotection” chapter) and certificationto ISO 9001 and ISO 14001. Performance ofthis audit is a prerequisite for the acceptanceof the supplier.102 103

Innovative lighting concepts direct light to where it ismost effective. At night, carefully located lighting givesus a sense of security and orientation.104 105

8. Sponsorship8.1. IntroductionPromoting art projects drives innovationNon-profit engagement enjoys high priority atthe Zumtobel Group. In particular, the Zumtobelbrand makes use of the close links withits network of partners in this respect. Artprojects form the creative spearhead of thebrand’s innovative efforts – by providing theopportunity and latitude to experiment. Themain focus here is on collaboration with andsupport for internationally renowned artistsand / or museums and galleries. In general, theprojects concerned bear a strong relation tothe brand’s core business and drive innovationby signposting new approaches to the use ofartificial light.Non-profit engagement is also pursued by theother Zumtobel Group brands as well as atcorporate level, while a variety of local charitableactivities round off the overall picture.8.2. Engagement at all levelsof the companyFrom Group-wide activities to sponsorshipin the local community, the Zumtobel Group’sengagement takes place at all levels of thecompany.International Award for Sustainability andHumanity in the Built EnvironmentIn the fields of architecture, urban and landscapeplanning and engineering in particularthere are many avenues of approach to greatersustainability. What is called for here is acombination of scientific knowledge, technicalinnovation and creativity. To honour outstandingsustainable solutions in architecture andengineering, the Zumtobel Group has createdthe “Zumtobel Group Award for Sustainabilityand Humanity in the Built Environment”.Curatorship of the award is in the hands ofAedes Architecture Forum in Berlin. Nominationsare judged by an international jury ofglobally acknowledged experts representinga wide variety of disciplines. The award isgranted in two categories: fostering built andrealised projects and ongoing research workand independent initiatives. The award, whichis presented every two years, carries a totalpurse 140,000 euros. The. The inauguralcompetition was held in 2007. On account ofthe economic crisis, the second award was notpresented until the beginning of 2010. A seriesof books entitled “Architecture of Change”is based on the outcome of the ZumtobelGroup Awards. For further information visitwww.zumtobel-group-award.com.Engagement of the brands around theircore businessThe Zumtobel brand supports artistic lightingprojects. This provides a means of squaring upto the new challenges of lighting in a particularlycreative manner and generates new impetusfor the ongoing enhancement and expansionof the product portfolio, as well as drivingprogress in the Group’s corporate culture.This engagement is based on long-term collaborationwith prominent international architects,designers and artists within the scopeof the brand’s close-knit network. In recentyears, the Zumtobel brand has implementedprojects together with such leading figures asJames Turrell, Olafur Eliasson, Carsten Höller,Siegrun Appelt and Keith Sonnier. Along withseveral centres of architecture, the Zumtobelbrand also supports museums and galleries inthe realisation of exhibitions and installations,including Kunsthaus Bregenz, Zentrum fürKunst und Medientechnologie (ZKM) in Karlsruhe,Schirn-Kunsthalle in Frankfurt am Mainand Kunstmuseum Wolfsburg.Along with these activities there were alsosmaller local engagements, such as theZumtobel brand’s presentation of a prize forengin eering students in Lemgo, Germany,where the company has a production facility.The prize carried a total purse of 1,200euros. In the course of a project seminar, thefive award-winners designed what, from thecompany’s point of view, was the most innovativeand cost-effective mounting solution for aprofessional lighting system.As a member of LUCI (Lighting Urban CommunityInternational), a body that bringstogether companies, lighting designers,architects, universities and some 60 towns andcities, since 2007 the Thorn brand has beensupporting the LUCI LightLinks competition.LightLinks promotes cooperation betweencities in countries with high and low per capitaincome, with the aim of realising urban lightingsolutions in the financially challenged locationsand thereby contribute to their economic andsocial development. The initial project concernsilluminating historical landmarks in theCity of Jericho on the Palestinian West Bank.The sister city in this case is Lyon, France,where the LUCI network was first initiated.The sponsorship activities of the Tridonicbrand are focused in particular on the fieldof vocational training and higher education.By way of example, the brand maintains veryclose relations with educational establishmentsin the Austrian Tyrol in the vicinity of itscomponents plant in Innsbruck. These includethe Höhere Technische Bundeslehranstalt(HTBLA – Technical College) in Fulpmes andthe local vocational schools for metalworkingand electrical engineering. For over 20 yearsnow, Tridonic has been responsible for equippingthe showcases at the HTBLA, organising106 107

excursions, offering internships and stewardingfinal papers for prospective technical collegegraduates.For the past two-plus years, Tridonic has alsoadopted a new approach to recruiting skilledstaff for the development sector by cooperatingwith universities in the UK and Switzerland.This involves providing scholarships forselected students whose studies are geared totopics of relevance to Tridonic. The studentsselect topics of interest to Tridonic for theirproject work and can gain practical experienceat the company during semester breaks.Charity workAlong with activities that are closely linkedwith their core business, the Group’s brandsalso demonstrate engagement in a number ofcharitable projects in the wider interests ofsociety and public welfare.At the Spennymoor plant, for example,employees enter the 5k Race for Life to raisemoney for cancer research. In the course ofits marketing activities, the Lighting Segmentmakes regular donations to the Light for theWorld initiative, contributing one euro foreach new registration for its free customere-newsletter, for example. Light for the Worldhelps people in poverty-stricken areas recovertheir sight through an eye operation.Every year in spring, the traditional ZumtobelGroup ski race takes place in the BregenzerWald region of Austria. For the past threeyears, the proceeds of the event have beendonated to the Vorarlberg Lebenshilfe charityfor the disabled.Furthermore, when natural disasters strike,the Zumtobel Group also makes donationsto disaster relief organisations, most recentlyfollowing the earthquake in Haiti. Employeesand management produced a generousresponse that resulted in a total donation ofEUR 60,000.108 109

LEDs represent a quantumleap in light sources.Innovative semiconductortechnology ensures highenergy efficiency andoptimum light quality,matching the natural lightof a candle.110 111

9. Facts and figures9.1. IntroductionThe “facts and figures” section provides anoverview of core indicators. The correspondingGRI indicators are shown in brackets. A listof the GRI indicators appears in the GRI Indexon p. 128.Unless indicated otherwise, the data relatesto the 2009/10 financial year. For the LightingSegment, the scope of consolidation includesthe European production plants; for the ComponentsSegment, it includes all productionplants worldwide.9.2. In-process environmental protectionOverview of plants certified to ISO 14001 *Certified plant Country Region Certified sinceThorn Lighting Nordic AB, Landskrona Sweden Europe 01.12.97TridonicAtco GmbH & Co KG, Dornbirn Austria Europe 26.06.05TridonicAtco connection technology Austria Europe 28.06.05GmbH & Co. KG, InnsbruckLEDON Lighting Jennersdorf GmbH Austria Europe 28.06.05Zumtobel Lighting GmbH, Dornbirn Austria Europe 01.03.09Thorn Lighting Limited, Spennymoor UK Europe 01.06.09Zumtobel Lighting GmbH, Lemgo Germany Europe 01.07.09Zumtobel Lighting GmbH, Usingen Germany Europe 01.11.09TridonicAtco Shenzen Co., Ltd., Longhua China Asia 01.07.05Tridonic Schweiz AG, Ennenda Switzerland Europe planned for May 2010TridonicAtco controls & systems, Dornbirn Austria Europe planned for June 2010Tridonic GmbH & Co. KG, Spennymoor UK Europe planned for spring2011Thorn Europhane, Les Andelys France Europe planned for FY2010/11* The Space Cannon plant in Fubine, Italy is not listed as no standard production process takes place there.112 113

EN3: Direct energy consumptionEN16: Direct greenhouse gas emissionsLighting Segment (Europe)Components Segment (world)Lighting Segment (Europe)Components Segment (world)Unit 2009/10 2008/09 Difference 2009/10 2008/09 DifferenceLight fuel oil MWh 2,860 2,561 11,68% 769 847 -9,21%Gas * MWh 25,859 31,924 -19,00% 6,936 7,681 -9,70%Direct energyconsumptionMWh 28,719 34,485 -16,72% 7,705 8,528 -9,65%Direct energyconsumption perunit *** There was a major reduction in gas consumption following the move to the new factory and office building in Spennymoor.** Water withdrawal per unit is not directly comparable with the previous year due to imprecision as a result of rounding offthe decimal points.EN4: Indirect energy consumptionMWh/unit 0,0030 0,0033 0,0001 0,0001Unit 2009/10 2008/09 Difference 2009/10 2008/09 DifferenceElectricity MWh 39,711 38,652 2.74% 25,219 26,721 -5.62%District heating MWh 7,623 6,961 9.51% 0 0Indirect energyconsumptionMWh 47,334 45,613 3.77% 25,219 26,721 -5.62%Indirect energyconsumption perunit *Lighting Segment (Europe)Components Segment (world)MWh/unit 0.0049 0.0043 0.0003 0.0004Unit 2009/10 2008/09 Difference 2009/10 2008/09 DifferenceLight fuel oil t CO 2751 671 11,92% 215 237 -9,28%Gas t CO 25.771 7.030 -17,91% 930 936 -0,64%Directgreenhousegas emissionst CO 26.522 7.701 -15,31% 1.145 1.173 -2,39%Directgreenhousegar emissionsper unit *t CO 2/unitEN16: Indirect greenhouse gas emissions0,0007 0,0007 0,0000 0,0000* Direct greenhouse gas emissions per unit are not directly comparable with the previous year due to imprecision as aresult of rounding off the decimal points.CO 2-emissions factors: Indirect greenhouse gas emissions: Electricity: 0,251 t/MWh.District heating: 0,170 to 0,181 t/MWh.Lighting Segment (Europe)Components Segment (world)Unit 2009/10 2008/09 Difference 2009/10 2008/09 DifferenceElectricity t CO 29,962 9,715 2.54% 8,438 9,570 -11.83%Fernwärme t CO 21,293 1,259 2.70% 0 0Districtheatingt CO 211,255 10,974 2.56% 8,438 9,570 -11.83%Indirectgreenhousegas emissions *t CO 2/unit 0.0025 0.0022 0.0002 0.0002* Indirect energy consumption per unit is not directly comparable with the previous year due to imprecision as a result ofrounding off the decimal points.EN8: Water withdrawalLighting Segment (Europe) Components Segment (world)* Direct greenhouse gas emissions per unit are not directly comparable with the previous yeardue to imprecision as a result of rounding off the decimal points.CO 2-emissions factors: Indirect greenhouse gas emissions: Electricity: 0,251 t/MWh.District heating: 0,170 to 0,181 t/MWh.Total water withdrawnfrom municipal watersupplies **Water withdrawalper unit ***Unit 2009/10 2008/09 Difference 2009/10 2008/09 Differencem³ 40,353 59,774 -32,49% 24,543 25,852 -5.06%m³/unit 0.0042 0.0056 0.0003 0.0004* There was a major reduction in water withdrawal following the move to the new factory and office buildingin Spennymoor.** When appropriate, includes ground water and rain water.*** Water withdrawal per unit is not directly comparable with the previous year due to imprecision as a result ofrounding off the decimal points.EN21: Total water discharge *Unit 2009/10 2008/09 Difference 2009/10 2008/09 DifferenceWater discharge m³ 40,353 59,774 -32.49% 24,543 25,852 -5.06%Water discharge perunit produced **m³/unit 0.0042 0.0056 0.0003 0.0004* There was a major reduction in water discharge following the move to the new factory and office buildingin Spennymoor.** Water discharge per unit is not directly comparable with the previous year due to imprecision as a result of roundingoff the decimal points.114 115

EN22: Weight of waste by type and disposal methodLighting Segment (Europe)Components Segment (world)9.3. EmployeesLA1: Total workforce including contract workers *Non-hazardouswaste for recycling(metals, cardboardplastic, etc,)Non-hazardouswaste for disposal *Hazardous waste(e,g, waste oil, solvents,paints, etc,) *Unit 2009/10 2008/09 Difference 2009/10 2008/09 Differencekg 5,382,530 5,519,911 -2.49% 3,383,561 4,053,716 -16.53%kg 469,279 676,110 -30.59% 422,288 223,952 88.56%kg 210,475 261,563 -19.53% 33,241 44,361 -25.07%Total waste kg 6,062,284 6,457,584 -6.12% 3,839,090 4,322,029 -11.17%Waste per unitproducedkg/Einheit 0.4657 0.6092 0.0500 0.0651* There was a major reduction in water withdrawal following the move to the new factory and office buildingin Spennymoor.EN27: Fees paid to maintain recovery points for products *Lighting Segment (Europe)WEEE fees Unit 2009/10 2008/09 DifferenceAustria EUR 127,569 146,062 -12.66%Germany EUR 61,940 64,104 -3.38%Benelux EUR 100,673 96,863 3.93%Nordic EUR 80,837 83,591 -3.29%Switzerland EUR 0 0Italy EUR 48,540 53,537 -9.33%France EUR 303,324 220,651 37.47%UK EUR 341,447 449,564 -24.05%* Instead of maintaining its own recovery/collection points, the Zumtobel Group makes use of the option of supportingcentral recovery points through payment of a fee.The Components Segment is only governed by the WEEE Directive in respect of bans on the use of materials (all productionplants). The Components Segment’s products are deemed to be components for which no disposal fees are payable to thecollection and recycling organisations.LA1: By employment type based on 2009/10 financial year *LA1: By region based on 2009/10 financial year *Zumtobel Group (worldwide)Unit 2009/10 2008/09 Diff,Lighting Segment FTE 5,155 5,261 -2.02%Components Segment FTE 2,048 1,775 15.38%Zumtobel AG FTE 126 129 -2.02%Zumtobel Group ** FTE 7,329 7,165 2.29%** Figures have been rounded, ** Information including ZAG (126.4)Lighting Seg,(worldwide)Components Seg,(worldwide)Einheit, FTE % FTE % FTE %Production FTE 2,492 48.34% 1,310 63.96% 3,802 52.78%Research & FTE 170 3.29% 261 12.76% 431 5.98%DevelopmentSales FTE 1,907 36.99% 271 13.21% 2,177 30.23%Administration FTE 347 6.74% 119 5.83% 467 6.48%Others FTE 240 4.65% 87 4.25% 327 4.53%Workforceincl, contractworkersFTE 5,155 100.00% 2,048 100.00% 7,203 ** 100.00%* Figures have been rounded; ** The difference is ZAG (126,4)Lighting Seg.(worldwide)Components Seg.(worldwide)Zumtobel Group(worldwide)Zumtobel Group(worldwide)Unit FTE % FTE % FTE %Europe FTE 3,964 76.89% 1,310 63.98% 5,274 73.22%Asia FTE 697 13.53% 540 26.37% 1,237 17.18%Australia & FTE 292 5.66% 198 9.65% 490 6.80%New ZealandUSA FTE 202 3.92% 0 0.00% 202 2.80%Workforceincl. contractworkersFTE 5,155 100.00% 2,048 100.00% 7,203 100.00%* Figures have been rounded116 117

LA7: Rates of injury and lost daysLighting Segment (Europe)Components Segment (world)LA13: Employee diversityAge structure * Unit 2009/10 ProportionUnit 2009/10 2008/09 Diff. 2009/10 2008/09 Diff.LTI * rate incidents 18 14.8 22.30% 7 11 -30.48%LTI * total incidents 109 68 60.29% 22 30 -26.67%TRI ** rate incidents 21.9 17.4 25.86% 8.3 12.2 -31.97%TRI ** total incidents 132 80 65.00% 25 35 -28.57%* Lost Time Injuries** Total Recorded InjuriesLA10: Training measuresfor sales staff (in person training days)for management (in person training days)Lighting Segment (Europe)* Distributors are persons closely related to the company, such as sales agents in the various countries.Lighting Segment (Europe)Components Segment (world)Unit 2009/10 2008/09 Diff. 2009/10 2008/09 Diff.Employees days 1,913 2,732 -29.98% 450 1,302 -65.44%Distributors * days 88 135 -34.81% 42 51 -18.63%Total days 2,001 2,867 -30.21% 492 1,353 -63.67%Components Segment (world)Unit 2009/10 2008/09 Diff. 2009/10 2008/09 Diff.High potentials days 366 291 25.77% 129 159 -18.87%Managers with up toeight years’ managerial days 209 176 18.75% 96 47 104.26%experienceManagers with morethan eight years’ managerial days 99 81 22.22% 54 21 157.14%experienceSenior management days 27 70 -61.43% 7 10 -30.00%Total days 701 618 13.43% 286 237 20.68%< 18 employees 70 1.16%> 18 - 30 employees 1,238 20.50%> 30 - 45 employees 2,665 44.13%> 45 - 55 employees 1,558 25.80%> 55 employees 508 8.41%Total employees 6,039 100.00%Gender breakdown * Unit 2009/10 ProportionMale employees 2,291 38.00%Female employees 3,748 62.00%Total employees 6,039 100.00%* For the HR indicators sometimes the number of employees is used and sometimes FTEs. This is because nouniform data is available. We aim to present FTE data for all these indicators in the next report.The data covers the Lighting Segment (Europe), the Components Segment (worldwide) and Zumtobel AG.EC7: Hiring of local senior managementStandort Country Unit Proportion (abs) Proportion (%)Thorn EurophaneFrance employees 3 of 4 75%SAThorn Lighting Ltd. UK employees 1 of 1 100%TridonicAtcoAustria employees 5 of 9 56%GmbH & Co KGZumtobel AG Austria employees 7 of 12 58%Zumtobel LightingGmbHAustria employees 5 of 16 31%The Zumtobel Group has a total of 79 LIPs *. 46 of these (58%) are filled locally.Number of LIPs * filled locally out of total LIPs per plant, based on 2009/10 financial year118 119

9.4. FinancesEC1: Direct economic value generated and distributedRevenuesNet revenues in EUR millions/financial yearRevenues 2009/10 2008/09 2007/08 2006/07Total 1,117.3 1,174.0 1,282.3 1,234.0Zumtobel Lighting 818.0 870.5 948.4 921.8Components 298.8 302.7 333.0 311.9Regions 2009/10 2008/09 2007/08 2006/07D/A/CH 282.2 298.5 308.9 292.3Eastern Europe 58.3 66.7 67.9 61.8Northern Europe 91.2 97.5 106.9 99.3Western Europe 353.1 383.5 427.4 410.0Southern Europe 95.4 105.7 129.9 119.2Asia 95.9 88.7 87.4 93.4Australia &100.6 89.9 107.5 103.2New ZealandUSA 30.2 31.9 35.5 41.5Rest of the world 10.3 11.5 10.9 13.1Employee wages and benefits:in EUR millions 2009/10 2008/09 2007/08 2006/07Wages -70.4 -73.4 -80.0 -83.2Salaries -208.6 -214.4 -217.1 -204.5Expenses for severance-0.7 -2.6 -3.6 -2.8compensationExpenses for pensions -3.5 -2.9 -5.7 -2.4Expenses for legally requiredsocial security duties and-57.3 -59.4 -58.2 -59.3mandatory contributionsOther employee benefits -10.7 -12.6 -12.7 -11.5Expenses from-7.5 -20.7 -2.0 0.0restructuringTotal -369.0 -386.0 -379.3 -363.7Payments to providers of funds:Dividends: dividend payments (from cash flow statement)in EUR millionsDividends(from cash flow statement)2009/10 2008/09 2007/08 2006/07-0.5 -31.3 -22.6 0.0Revenues from financial investments in EUR millions/financial yearin EUR millions 2009/10 2008/09 2007/08 2006/07Interest income(from income statement)Revenues from the sale of assets in EUR millions/financial year2.0 2.1 4.4 2.4in EUR millions 2009/10 2008/09 2007/08 2006/07Interest to loan providers:in EUR millionsInterest expense(from income statement)2009/10 2008/09 2007/08 2006/07-10.1 -22.6 -22.6 -24.8Gain/loss from the disposal ofassets (from income statement)Betriebskosten0.0 17.7 4.8 0.6Payments to governmentin EUR millions 2009/10 2008/09 2007/08 2006/07Income tax -6.0 -6.3 6.1 3.9in EUR millions 2009/10 2008/09 2007/08 2006/07Cost of materials andthird-party services-486.1 -506.7 -558.5 -529.6Community investmentsNo data available120 121

Investments in R&Din EUR millions 2009/10 2008/09 2007/08 2006/07R&D expenditures36.9 34.5 28.4 25.5(Income Statement)Capitalised R&D 14.2 13.1 12.7 10.8R&D total 51.1 47.6 41.1 36.3R&D as % of4.6 4.1 3.2 2.9revenuesHeadcount in R&D 431.0 449.0 411.0 364.0EC3: Extent of defined benefit plan obligationsFY 2008 / 09: Annual Financial Report 2.5.5.14 – Pension Obligations (p. 86ff)FY 2009 / 10: Annual Financial Report 2.6.6.17 – Pension Obligations (p. 65ff)EC4: Public sector financingReceived research grants in EUR * 2009/10 2008/09Lighting Segment (world) 623,000 728,000Components Segment (world) 1,653,000 3,244,000Zumtobel Group (total) 2,276,000 3,972,000* Figures were rounded9.5. MembershipsMemberships – the Zumtobel Group and its brandsAssociation Membership via/as GeographiccoverageMembershipsincePartnering Against Corruption Zumtobel Group Global 2004Initiative (PACI)CorporAID Zumtobel AG Austria 2007Respact Zumtobel AG Austria 2008CELMA – Verband derHerstellerverbändeFEEI, ZVEI andother nationalassociationsEurope1991 (foundermember))CELMA – Federation of NationalManufacturers AssociationsCELMA registeredcompany –Thorn and ZumtobelbrandsEurope 2007Zumtobel brand Austria 1973FEEI – Association of the AustrianElectrical and Electronics IndustriesZVEI Central Association of the Zumtobel and Germany 1968 and 1995German Electrical and Electronics Tridonic brandsIndustry – Light/licht.deBelysningsbranschenThorn and Zumtobel Sweden *brandsAgoria Zumtobel brand Belgium *Anfalum Tridonic brand Spain *Syndicat de L’ÉclairageThorn and Zumtobel France *brandsLIF - Lighting Industry Federation Zumtobel Group UK c. 1970 (founder(LIF)member)SLL – Society for Light and Lighting Thorn brand UK *(SLL)ANIE, ASSILZumtobel and Italy *Tridonic brandsCIE – International Commission Zumtobel Group Global 2008on Illumination(Silver Sponsor)LITG - Deutsche Lichttechnische Zumtobel and Germany> 35 yearsGesellschaft e.V.Tridonic brandsLTG - Lichttechnische Gesellschaft Thorn, Tridonic and Austria> 35 yearsÖsterreichsZumtobel brandsSLG – Schweizer Licht Gesellschaft Zumtobel brand Switzerland *CIBSE – Chartered Institution for Thorn brand UK c. 1960Building Services EngineersLjuskulturThorn and Zumtobel Sweden *brandsAFE - L’Association française de Thorn and Zumtobel France *l’éclairagebrandsNSVV - Nederlandse Stichting voor Zumtobel brand The Netherlands *Verlichtingskunde122 123

Association Membership via/as GeographiccoverageCEN – European Committeefor StandardisationDIN – Deutsches Institut fürNormungAustrian Standards InstituteDIN – DeutschesInstitut fürNormung, AustrianStandards InstituteExperts fromZumtobelExperts fromZumtobelEuropeGermany *Austria *BSI – British Standards Institute Experts from Thorn UK *AFNOR - Association française de Experts from Thorn France *normalisationand ZumtobelSIS – Swedish Standards Institute Experts from Thorn Sweden *and ZumtobelNBN - Bureau de Normalisation/ Experts from Belgium *Bureau voor NormalisatieZumtobelNEN - NederlandsExperts from The Netherlands *Normalisatie-instituutZumtobelUNI - Ente Nazionale Italiano di Experts from Italy *UnificazioneZumtobelDKE – Deutsches Elektrotechnisches Experts from Germany *KomitteeZumtobelStandards AustraliaExperts from Thorn Australia/*and Zumtobel New ZealandDGNB - German Sustainable ZVEI Germany 2009Building CouncilGlobal Compact Tridonic Australia/2006New ZealandIEA – International Energy Agency Experts from Global 2002ZumtobelIEC – International Electrotechnical Zumtobel Group Global *CommissionILE – Institute of Lighting Engineers Thorn und Tridonic UK *brandsISO – International Standards Experts from Thorn Global *Organisationand ZumtobelKlima:aktiv in Österreich Zumtobel Group Austria 2006Minergie Verein Zumtobel brands Switzerland 2004PLDA – Professional LightingDesigners AssociationZumtobel Group Global 2010MembershipsinceInvolvementof experts fromthe Group9.6. Chronicle of sustainabilitySustainability in the Zumtobel Group – from the early days to the present1928: Jules Thorn founds the Electric Lamp Service Company1940: Thorn introduces fluorescent tubes – at the time a more energy-efficient form of lighting –which are mass-produced from 1948 onwards1950: Dr. Walter Zumtobel founds Elektrogeräte und Kunstharzpresswerk W. Zumtobel KGin Dornbirn, Austria1959: Zumtobel opens its first lighting laboratory in Dornbirn (See “Research and development”)Ab 60er Jahre: From the 1960s onwards: individual initiatives in the paintshop operations, wasteseparation/recycling, heat recovery and exhaust air purification (continuing uninterruptedthrough to the present day)1978: The first electronic ballast (extending luminaire lifespan and saving energy)1980: Launch of the first Zumtobel luminaire range with indirect and direct light –a global innovation offering an advance in light quality1981: Thorn presents its first electronic ballast at the Hannover trade fair1984: Launch of Cophos lighting design software, which subsequently becomes theindustry standard1989: Environment and waste officers appointed at the Dornbirn plant **1990: Thorn introduces Sensa, the world’s first independent and intelligent lighting conceptfor offices1991: The first dimmable electronic ballast* Can no longer be determined124 125

Organisation and Report Profile1. Strategy and Analysis Comments Level of reporting Reference10. GRI IndexIn its sustainability reporting, the ZumtobelGroup takes its lead from the internationallyrecognized G3 Guidelines of the Global ReportingInitiative (GRI).1.1 Statement from the most seniordecision-maker of the organizationabout the relevance of sustainability1.2 Description of key impacts, risksand opportunities• • •• • •ForewordChap. 2These guidelines require the disclosure of informationon management approach, strategyand goals in respect to sustainability, as well asof numerous performance indicators in thecategories Economic, Product Responsibility,Labor Practices, Environmental, Society andHuman Rights. Gearing reporting to theseguidelines boosts transparency and rendersthe Group’s sustainability performancecomparable with that of other companies.Further information can be found on theGlobal Reporting Initiative website at www.globalreporting.org.By its own assessment, the Zumtobel Groupattains Level C with regard to the applicationof GRI’s G3 Guidelines.2. Organizational profile Comments Level of reporting Reference2.1 Name of the organization • • • Chap. 1, FAR, www2.2 Primary brands, products• • • Chap. 1, FAR, wwwand/or services2.3 Operational structure of the organization • • • Chap. 1, FAR, www2.4 Location of the organization’s• • • Chap. 1, FAR, wwwheadquarters• • •2.5 Countries where the organization• • • Chap. 1, FAR, wwwoperates2.6 Nature of ownership and legal form • • • Chap. 1, FAR, www2.7 Markets served • • • Chap. 1, FAR, www2.8 Scale of the organization • • • Chap. 1, FAR2.9 Significant changes during the reportingChap. 1, FAR, wwwperiod regarding size, structure,or ownership2.10 Awards • • • Chap. 1Keylight greyIndicators marked in light grey are additional indicators wherereporting is optional.Cross references:24, 38 Page numbers refer to information in the current Zumtobel GroupSustainability Report.R profileReport ProfileF / FFacts and FiguresFARFurther information can be found in the Zumtobel Group’s currentFinancial and Annual Reports.CGRFurther information can be found in the Zumtobel Group’s currentCorporate Governance Report.n. r. This indicator is not relevant to the Zumtobel Group.Level of reporting:• • • This indicator is reported in full• • This indicator is partly reported• This indicator is not currently reported3. Report Parameters Comments Level of reporting Reference3.1 Reporting period • • • R profile3.2 Date of most recent previous report This is the firstSustainability Reportof the Zumtobel Groupas a whole.• • •3.3 Reporting cycle • • • R profile3.4 Contact point for questions• • • Mastheadregarding the report3.5 Process for defining• • • R profilereport content3.6 Boundary of the report • • • R profile3.7 Specific limitations on the scope or• • • R profileboundary of the report3.8 Basis for reporting on joint ventures • • • R profile3.9 Data measurement techniques and basisfor calculations• • • R profile128 129

3.10 Explanation of the effect of anyre-statements of information3.11 Significant changes from previousreporting periods in the scope, boundaryor measurement methods appliedNot relevant as this isn.r.the first SustainabilityReport of the ZumtobelGroup as a whole.Not relevant as this isn.r.the first SustainabilityReport of the ZumtobelGroup as a whole.3.12 GRI content index • • • GRI-Index3.13 External assurance for the report There is no externalassurance of thereport.• • •4.13 Memberships in associations and• • • F/F, Chap. 2advocacy organisations4.14 List of stakeholder groups engaged• • • Chap. 2by the organisation4.15 Basis for identification and selection of• • • Chap. 2stakeholders4.16 Approaches to stakeholder engagement Chap. 24.17 Topics raised through stakeholder dialog • • • Chap. 2Management Approach and Performance IndicatorsEconomic Performance Indicators Comments Level of reporting Reference4. Corporate Kommentar Level of reporting Seite /Verweis4. Governance, Corporate Governance,Commitments Verpflichtung and EngagementComments Level of reporting Reference4.1 Governance structure of the organisation • • • FAR, CGR4.2 Indicate whether the Chair of the• • • FAR, CGRhighest governance body is also anexecutive officer4.3 The number of members of the highest• • • FAR, CGRgovernance body that are independent4.4 Mechanisms for shareholders andemployees to provide recommendationsThe legal requirementsare met.• • •to the highest governance body4.5 Linkage between compensation• • • FAR, CGRfor members of the highestgovernance body, senior managers,and executives and the organisation’sperformance4.6 Processes to ensure conflicts of interest• • • Chap. 1are avoided4.7 Process for determining the qualifications• • FAR, CGRof members of the highest governancebody for guiding the organisation’sstrategy on economic, environmental,and social topics4.8 Value statements, codes of conduct,• • • Chap. 2and principles relevant to sustainabilityperformance4.9 Procedures of the highest governancebody for overseeing the organization’sNo oversightprocedures take place.• • •sustainability performance4.10 Processes for evaluating the highestgovernance body’s own sustainabilityNo evaluationprocedures take place.• • •performance4.11 How the precautionary principle is• • • Chap. 2/3/4addressed by the organisation4.12 Externally developed sustainabilitycharters, principles to which theorganisation subscribes• • • Chap. 1/2Management Approach,EconomicEC 1 Direct economic alue generatedand distributedEC 2 Financial implications and other risksand opportunities for the organization’sactivities due to climate changeEC 3 Coverage of the organization’s definedbenefit plan obligationsEC 4 Significant financial assistance receivedfrom governmentEC 5 Range of ratios of standard entry levelwage compared to local minimum wageEC 6EC 7EC 8EC 9Policy, practices, and proportion ofspending on locally-based suppliersProcedures for local hiring andproportion of senior management fromthe local communityInfrastructure investments and servicesprovided primarily for public benefitDescribing significant indirecteconomic impacts,The Zumtobel Groupalways pays at leastthe wages agreed bycollective bargaining.Chap. 1, FAR• F/F, FARFARF/FChap. 7Chap. 6, F/FChap. 1Environmental Performance Indicators Comments Level of reporting ReferenceManagement Approach,• • • Chap. 5EnvironmentalEN 1 Materials used • • • Chap. 5EN 2 Materials used that are recycled input materials• •EN 3 Direct energy consumption • Chap. 5, F/FEN 4 Indirect energy consumption • • • Chap. 5, F/FEN 5 Energy saved • • Chap. 5EN 6 Initiatives to provide energy-efficient orrenewable energy based products and services• • • Chap. 3/4• • •• • •• • •• • •• •• •• ••130 131

EN 7 Initiatives to reduce indirectenergy consumption•EN 8 Total water withdrawal • • • Chap. 5, F/FEN 9 Water sources significantly affected bywithdrawal of water•EN 10 Percentage and total volumeof water recycled and reusedNo industrial wateris recycled.• • •EN 11 Land owned, leased, managed in, or adjacent No risk results from • • •to, protected areas and areas of high biodiversity operations.valueEN 12 Impacts of activities, products, and serviceson biodiversity in protected areas and areasNo risk results fromoperations.• • •of high biodiversityEN 13 Habitats protected or restored No risk results fromoperations.• • •EN 14 Measures for managing impacts on biodiversity No risk results fromoperations.• • •EN 15 Endangered species in areas affectedNo risk results from • • •by operationsoperations.EN 16 Direct and indirect greenhouse gas emissions • • • F/FEN 17 Other relevant indirect greenhouse gasemissionsNo other relevantgreenhouse gas emissionshave been defined.•EN 18 Initiatives to reduce greenhouse gas emissions • • • Chap. 5EN 19 Emissions of ozone-depleting substances Conversion of the• • Chap. 5production process hasled to reduction of theseemissions to an insignificantlevel.EN 20 NOx, SOx, and other significant air emissions Only occur within the limitsof the currently applicableclean air legislation.• •EN 21 Total water discharge • • • F/FEN 22 Weight of waste by type and disposal method • • • F/FEN 23 Number and volume of significant spills There were no significantincidents in the reportingperiod.• • •EN 24 Weight of transported, imported, exported,or treated waste deemed hazardousHazardous waste isdisposed of properlyand professionally by anauthorised local wastedisposal operator.• • •EN 25 Water bodies and related habitats significantlyaffected by the reporting organization’sdischarges of water and runoffThere were no significantincidents in the reportingperiod.• • •EN 26 Initiatives to mitigate environmental impacts• • • Chap. 4of products and servicesEN 27 Percentage of products sold and their• • • Chap. 4packaging materials that are reclaimedEN 28 Significant fines and sanctions fornoncompliance with environmentallaws and regulationsThere were no significantincidents in the reportingperiod.• • •EN 29 Environmental impacts of transport activities Transport is handled by anexternal service provider.•EN 30 Total environmental protection expenditures Total expenditures are notcurrently recorded acrossthe Group.•Labor Practices and Decent WorkPerformance IndicatorsComments Level of reporting ReferenceManagement Approach,Labor PracticesLA 1 Total workforce by employmenttype, employment contract andregionLA 2 Total number and rate ofemployee turnoverLA 3 Benefits provided to full-timeemployees onlyLA 4 Percentage of employees covered All employees are embycollective bargaining agreements ployed in accordance withthe legal provisions.Wherever collective bargainingagreements are provided for,these are applied.LA 5 Minimum notice period(s) regarding The legal requirementsoperational changesare met.LA 6 Percentage of total workforceThe legal requirementsrepresented in management–worker are met.health and safety committeesLA 7 Injuries, occupational diseases,lost days and absenteeismLA 8 Education, training, counseling,prevention, and risk-control programsregarding serious diseasesLA 9 Health and safety agreements with tradeunionsLA10 Average hours of training per year peremployeeLA 11 Programs for skills management andlifelong learningLA 12 Percentage of employees receivingregular performance and careerdevelopment reviewsLA 13 Diversity in the workforce andgovernance bodiesLA 14 Ratio of basic salary of men to women At the ZumtobelGroup and its brands,salaries are governed bythe duties performed andnot by gender.• • •• • •• •• • •• • •• • •• • •• • •• • •• • •• •• • ••••Chap. 6Chap. 6, F/FChap. 6, F/FChap. 6Chap. 6, F/FChap. 6Chap.6Chap. 6, F/F132 133

Human Rights Performance Indicators Comments Level of reporting ReferenceManagement Approach,Human RightsHR 1HR 2HR 3HR 4HR 5HR 6HR 7HR 8HR 9Investment agreements that includehuman rights clausesSuppliers and contractors that haveundergone screening on human rightsEmployee training on aspects of humanrightsTotal number of incidents of discriminationand actions takenOperations identified in which the rightto exercise freedom of association andcollective bargaining may be at riskOperations identified as having significantrisk for incidents of child laborOperations identified as having significantrisk for incidents of forced or compulsorylaborSecurity personnel trained in aspectsof human rightsIncidents of violations of the rightsof indigenous peopleAn ethics hotlinehas been in place since2006. To-date no incidentshave been reported.No risks ensue• • •from the operations of theZumtobel Group and its brands.Chap. 2/7Chap. 7Chap. 2/7Chap. 2/7Chap. 2/7Kommentar Level of reporting Seite/Society Performance Indicators Comments Level of reporting ReferenceManagement Approach,SocietySO1SO 2Programs and practices that assessand manage the impacts of operationson communitiesBusiness units analyzed for risksrelated to corruption• • •• •• • •• •• •• •• • •Within the scope• • •of the institutionalised andregular risk assessement process,risks are identified and evaluatedat almost all European plantsas well as in the USA and insome cases in China. The risksidentified are subject to regularmonitoring by Corporate Auditand Corporate Controlling.••••Chap. 1/2SO 4SO 5SO 6SO 7SO 8Actions taken in response to incidents•of corruptionParticipation in public policy development and• • •lobbyingContributions to political parties and As a matter of• • •politiciansprinciple, the company does notmake donations to politiciansand/or political parties.Number of legal actions for anticompetitive•behaviorFines and sanctions for noncompliance with•laws and regulationsChap. 3Kommentar Erfüllungs-grad Seite/VerweisProduct Responsibility Performance Indicators Comments Level of reporting ReferenceManagement Approach,Product ResponsibilityChap. 4PR 1 Life cycle stages in which health and The legal• • • Chap. 4/5safety impacts of products and servicesare assessedrequirementsare met.PR 2 Incidents of non-compliance with concerninghealth and safety impacts of products andservices•PR 3 Product and service information required by• • • Chap. 4proceduresPR 4 Incidents of non-compliance with regulationsconcerning product and service informationand labeling•PR 5 Practices related to customer satisfaction • • • Chap. 4PR 6 Adherence to laws, standards, and voluntary Not relevant, as no businessto-consumern.r.codes related to advertisingadvertising isconducted.PR 7 Incidents of non-compliance with regulations Not relevant, as no businessto-consumern.r.and voluntary codes concerning advertisingadvertising isconducted.PR 8 Substantiated complaints regarding breachesof customer privacy and losses of customerdata•PR 9 Fines for noncompliance with laws andregulations concerning the provision anduse of products•• • •SO 3Employees trained in anti-corruptionpolicies/procedures•134 135

136 137Quality of light also includes quality darkness. Effective streetand architectural lighting helps us see the stars more clearly.

ImprintPublisherZumtobel AGHöchster Sraße 86850 Dornbirn, Austriawww.zumtobelgroup.comOverall responsibilityAstrid Kühn-UlrichCorporate CommunicationsZumtobel AG, DornbirnTextAnne Mordhorst, Schlange & Co.Astrid Kühn-Ulrich, Zumtobel AGCoordination of facts and figuresJürgen AndresIsabella BöschGeorg Schaffgotsch, Zumtobel AGDesignLisa Pfurtscheller, Zumtobel AGDavid Grabiniok, BorosFunctional responsibility:EmployeesBirgit Sonnbichler; Zumtobel AGCorporate GovernanceDietmar Grabher, Zumtobel AGProduct stewardshipReinhard Wurzer / Christoph Mathis,ZumtobelRichard Hall / John Der Weduwe, ThornFrieder Grimm, TridonicIn-process environmental protectionGerhard Weiss, Lighting BrandsMarkus Hollenstein, TridonicSupply ChainThomas Böhm, Lighting BrandsWolfgang Sprenger, TridonicTranslationPaul Boothroyd, Bauer-BoothroydProofreadingChristine Fitz, Fitz FeingrafikAnne Mordhorst, Schlange & Co.Print productionLorenz Mayer-Kaupp, ZumtobelPrintingKling Druck, Kressbronn© Copyright 2010 Zumtobel AGReproduction and reprint only with expresswritten approval of Zumtobel AG138

Zumtobel AGCorporate CommunicationsHöchster Straße 86850 Dornbirn, Austriawww.zumtobelgroup.com