Report 2006-2007
tesa AG: Our Responsibility – Our Commitment and Involvement

Contents

Foreword

Dear Readers,
We shape our future through innovations and the willingness to embrace change –the traditional key corporate values of tesa AG. The goal of exerting a positive
influence on the environment applies not only to our products, but also to oursocial and ecological commitment to the society in which we operate. At tesa,
voluntary involvement beyond what the law requires has been simply our goal formany years now.

Society
Page 4tesa is involved and committed in a multitude of ways, setting a prime example ofresponsibility toward its own employees and society at large. Our social activities
focus on providing assistance to children and youth all over the world, and at thesame time, maintaining a healthy environment for generations to come. Economicand ecological well-being are equally important goals of our company’s operations.
Additional factors that play an important role in our long-term, sustained success are
humane labor conditions for all tesa employees worldwide and ensuring that ourEnvironment
Page 7products and services demonstrate the very highest quality and reliability.

Quality
Page 11

Employees
Page 12tesa
Worldwide
Page 14When we joined the Global Compact in March 2006, we committed to ensuringthat our economic actions were in accordance with the ten ethical principles of thisUN corporate responsibility initiative in the areas of human rights, labor standards,
environmental protection, and anti-corruption. We operate in more than one
hundred countries – to us, globalization is not a buzzword, but a fact of everyday
business. We view our involvement in the Global Compact as an opportunity, side
by side with numerous other companies, to take on a positive role in making surethat globalization takes a humane course.
Our support for social projects all around the globe and awards such as theEnvironmental Award from B.A.U.M. (the German Environmental Management
Association) and the Responsible Care Award from the Association of the German
Chemical Industry (VCI) attest to our successful work in this field that we willcontinue to pursue with enthusiasm and conviction. After all, quality and continuous
progress are our declared goals – and with respect to more than just our products.

Dieter Steinmeyer
Chief Executive Officer, tesa AGSociety

Society

The Company as an Involved Citizen
Every tesa product solves a problem and helps with everyday matters– a key aspect of our brand philosophy

tesa has taken on the goal of supporting children all over the world. The winners of the 2007 Tesalino & Tesalina competition, students from Neu-Wulmstorf, Germany,
were pleased at the chance to take a trip aboard the research vessel Aldebaran. But tesa also supports children and youth farther afield, in India and Chile.

Our status quo: With our 51 subsidiaries located allover the world, we are involved with institutions in every
region in which we operate: Southwestern and Eastern
Europe, Central and Northern Europe, Asia/Pacific, andNorth and South America. Employees of tesa AG havegotten involved in aid campaigns through financial
donations, donations through personal commitment,
and aid to children and other people in need at the
local level.

Examples from a wide array of projects
illustrate our commitment in 2006 and 2007
In the field of promoting education and creativity
Viña del Mar, Chile: Working together with B.A.U.M.

T

his claim also applies to the social context in which
we operate: Here as well, the company’s goal is tobe an integral part of everyday life and exert a positive
influence on the development of our surroundings. Our
involvement focuses on supporting and protecting children and youth. The task we are currently facing is tobundle all of our worldwide activities together toachieve a targeted strategy that is effective locally.

e.V. (the German Environmental Management Association), tesa supports the music school project “Escuela
Popular de Artes”, one of the country’s most innovativeand successful cultural centers. In Viña del Mar, 65
percent of the population lives below the poverty line.
The school offers more than 200 students between
the ages of 6 and 29 an education. tesa finances fullscholarships to 110 of the students who come fromdestitute homes. The institution’s advanced educational
concept also helps these children overcome everyday
problems and cope with their lives at the same time.

Yeleswaram, India: In the quarries of the Southern
Indian state of Andhra Pradesh, even children toil toensure that their families can get by – for just three
euros a month. Acting through the “Chancen fürKinder” (Opportunities for Children) foundation and incooperation with B.A.U.M. e.V., tesa began sponsoring
60 boys and girls. The children are now able to attend
a school and additionally receive medical care, food,and clothing. Because the children’s parents dependon the children’s income, they receive support as well.
The goal is to break the vicious cycle of poverty andexploitation.

Sparta, USA: Our plant in Sparta, Michigan, is working
with a neighboring school to develop a concept that will
give elementary and high school students a glimpse of
how a production company works. The focus of thisinitiative is to link together production and environmental protection. The plant offers students internships andsupport for term papers and projects.

Germany: For the eighth time, tesa and the StiftungLesen (Reading Foundation) came together in 2007 to
invite all primary and elementary schools throughout Germany to participate in a collective creativity contest. The
aim is to foster reading and writing skills and stimulate theimagination. This time the theme of the storytelling andarts and crafts contest was the fabulous ad­ventures of
the two sticky characters Tesalino and Tesalina in theunderwater world of water nymphs, sprites, mermaids,
magical fishes, and sea monsters. Thomas Brezina, awell-known German-language children‘s book author,
wrote the beginning of the story. At the primary and ele­mentary schools, including the special-needs classes, thechildren wrote, created, and acted out the story to theend. Two thousand classes rolled up their sleeves to par­ticipate. The reward for all their efforts: The overall winners
experienced an exciting research expedition on the ElbeRiver aboard the research ship Aldebaran, with insight into
environmental protection and climate research. The manyrunners-up enjoyed authors’ readings and other prizes.

Turkey: The Turkish Educational Volunteers Foundation(TEGV) operates learning centers that offer children inpoor socioeconomic surroundings a supplement to what
the state-run schools provide. The foundation maintains
a total of 86 learning facilities, among them 17 mobile
learning trucks and 58 local learning centers. One of themis the “Izmit Korfez 1 Learning Center,” which is locatedin the heart of the area affected by the 1999 Marmara
earthquake and is supported by tesa Turkey. Up to 500
Societychildren affected by the disaster are able to use thelibrary, work on the computer, and do arts and crafts.

In the field of promoting the next generationin science and technology

Environment

United States: In 2007 tesa employees collected donations for cancer research by participating in a 24-hour
fundraising run organized by the American Cancer Society. tesa employees sponsored a booth and soldproducts and food, with the proceeds also going tocancer research.

Brazil: tesa employees assist young people during theirtechnical apprenticeships in professions such as printing. They pass along the expertise they have gained
through working in the print and paper industry andtheir practical experience from their day-to-day work inorder to provide apprentices with a good start in their
future professions. tesa employees give support in theform of practical teaching units and provide important
instructional materials.

Hamburg, Germany: tesa supports students at theNorthern Institute of Technology (NIT) with scholarships
and practical semester units. The students, each ofwhom is required to have perfect English skills, a pre­vious engineering degree, and initial professional experience, complete a two-year dual major track to earn
the degrees of MBA and Master of Science. The goal
is to provide targeted assistance to especially gifted
students from all over the world. In addition, graduates
have good opportunities to get their careers off to aninternational start at tesa.

In the field of supporting institutions that aid sick orsocially disadvantaged children
Hamburg, Germany: Instead of giving out Christmas
cards and gifts, tesa supports the Sternenbrücke(Bridge to the Stars) children’s hospice in Hamburg eachyear. Since 2003, the hospice has provided terminally ill
children and their families with care that is both professional and kind in equal measure. In 2006, tesa enabled
the hospice to purchase an urgently needed ventilator.
Our involvement and commitment includes local, personal aid
to children in areas where our subsidiaries are located, suchas in Hungary. tesa is also promoting the next generation in
the sciences, such as at the Northern Institute of Technology(NIT) in Hamburg, Germany, and providing help for sickchildren (here, at the Sternenbrücke hospice in Hamburg).

Australia and Austria: tesa supports associations andfoundations that help make the wishes of severely ill
children come true (the Make-A-Wish Foundation andStiftung Kindertraum).

Eastern Europe: Pediatric hospitals in Eastern Europe
often lack the financial means for necessary medical
purchases and therapeutic measures. In 2006, oursubsidiaries in this region, acting in cooperation withthe organization “Smiling Hospitals,” provided financing
for important medical equipment. To help sick children
during their healing process they also implemented
musical and theatrical events through collected donations. In 2007, tesa employees donated climbing
structures for a children’s playground to the village of
Alsómocsolád, in the south of Hungary, and worked
together with village residents to set up the structures.

Our outlook for 2008
In the future, we will continue to be involved worldwide
as a responsible, socially active citizen and will further
expand our existing activities. Protecting and supportingchildren and youth in their development and training willcontinue to be the focus of our activities. To create trans­parency, enable the free exchange of ideas and opinions,and prompt further involvement, we are intensifying
internal communications regarding our social ac­tivities
in our company media. Our aim in doing so is to provide
examples and suggestions and convey know-how. Our
subsidiaries are implementing our strategy lo­cally andbringing in their own ideas, since they know best what isneeded in their surroundings. We have established ourown Corporate Responsibility Team, which strategicallycoordinates all of the measures and monitors and supports the subsidiaries in an advisory capacity.

Balancing Economic and Ecological Well-Being
For us, economic success and environmental protection
are equally important corporate goals that we pursue
across every position and locationW

We use the latest
technologies toprotect valuable
resources on asustainable basis.
e are firmly convinced that sustainable stewardship is one of the main prerequisites for generating confidence in a brand. It is an essential factor in our
economic success. Our environmental goals are part of
the Integrated Management System (IMS) tesa, whichforms the basis for our worldwide operations. In the
IMS, guaranteeing consistent quality, environmental
protection, and occupational safety are closely inter­
related and firmly anchored at the corporate management level. Throughout the company, we have implemented a sophisticated environmental management
system in which relevant processes are reviewed regularly. New findings are integrated into the system and itis actively adjusted to important changes.
Our environmental guidelines, which apply throughout the company, further demonstrate our provident
approach to dealing with environmental problems. ForEnvironment

example, we subject raw materials to a comprehensive
ecological evaluation before using them in tesa products.
Our commitment to the worldwide “Responsible
Care” initiative of the chemical industry and our adherence to the “Responsible Operations” guidelines of the
Association of the German Chemical Industry (VCI), as
well as our participation in the Hamburg Eco-Partnership at our main headquarters, offer further proof of our
focus on sustainable stewardship.
We have won numerous awards for our involvement.
For example, the B.A.U.M. initiative granted tesa its
2005 Environmental Award “for practical accomplishments in favor of provident, sustainable, and holistic
environmental protection at a business.” At nearly thesame time, the Association of the German Chemical
Industry distinguished tesa with the Responsible CareAward for its achievements in the area of environmental
protection.
When it comes to environmental protection, whatcounts is not good intentions, but solely positive results. With this in mind, we have set ambitious quantitative goals for ourselves and are obligated to meet themwithin a period of five years.
Our goals are to reduce our use of solvents, VOC(volatile organic compound) emissions, waste, and CO2
emissions, and to achieve lower energy consumption.
We view the statutory requirements and official directives as the minimum standard. Based on a systematic
review of all our business and production processes
with regard to environmental impact and risks, we haveEnvironment

One of our most important raw materials is natural rubber. State-of-the-art technologies and highly qualified teams
worldwide ensure that we are able to process this and other base materials with minimal environmental impact.
The teams work together to pursue ambitious goals in the reduction of emissions and use of solvents and energy.

developed and implemented a total of more than 70
individual projects at tesa locations all over the world.
For example, the tesa plant in Malaysia has put a highly
efficient new solvent recovery system into operation.
The largest tesa production location, in Offenburg, Germany, and the tesa plant in Concagno, Italy, haveswitched more products to an innovative solvent-freecoating technology developed and patented by tesa.
The plant in Suzhou, China, has optimized the use ofwaste heat. We use these and many more initiatives topromote responsible environmental conduct.
By taking extensive measures, we succeeded inmeeting the environmental goals set for the period from2002 through 2007, even considerably exceeding themin many areas. For example, use of solvents was reduced by 41 percent, energy consumption by 26 percent, and waste by ten percent.
We assess the effectiveness of our environmental
projects each year by implementing a monitoring process that compares the goals and outcomes. If there isany discrepancy, we initiate additional measures.

For the period from 2007 through 2012, wehave set the following goals for ourselves:
VOC emissions:
Use of solvents:
Energy use:
Waste:
CO2 emissions in Europe:- 50 percent- 15 percent- 10 percent- 5 percent- 10 percentEnvironment

Quality

Certified environmental protection

Development of innovative technologies

For tesa, following international quality, environmental,
and occupational safety standards is a matter ofcourse. As part of our Global Certification Concept,
which we established ourselves, compliance with thesestandards is reviewed regularly by accredited certification companies. Nearly all of our production locations
are now certified under the ISO 14001 environmental
standard, and certification is planned for 2008 in theSuzhou, China and Singapore locations. All of our locations already meet the ISO 9001 quality standard.

One consequence of our environmental program was
the realignment of our production operations. Patented
technologies developed by tesa enable us to use
brand-new, solvent-free coating processes. Sixty percent of all products produced at the tesa plant in Offenburg are already manufactured in-line with this process,with improved product quality as a welcomed side effect. An innovative acrylate system also makes it possible to coat special products for bundling cable sets
for the automotive industry, all without using solvents.
The plants in Malaysia and Concagno, Italy, are alreadyproducing half of their production volume without theuse of solvents.
It is not yet possible to completely eliminate solventsin the production of technical adhesive tapes, but
harmful emissions can be prevented in large measures,
even if traditional production methods are used. The
plant in Hamburg offers a good example: Painstaking
recovery and purification processes enable the reuse ofsolvents, thereby keeping emissions to a minimum.
tesa is also participating in drafting BREFs (best available techniques reference documents), an extensive setof documents to apply throughout the European Union.
Their goal is to assist government agencies in applying
and implementing environmental protection requirements when granting permits and authorizations. By
taking part in these initiatives in the field of innovativetechnology, tesa is working toward the development
and use of environmentally friendly technologies.

Reducing the amount of solvents used in production is one of the major challenges facing
our industry. The latest technologies now allow some plants to eliminate solvents to a large
extend; where that is not the case, closed loops ensure efficient use.
10

Seamless Management for Top Quality
Wherever tesa products are used – at home, at work,at school, or in industry: For generations, the tesa® brandhas stood for reliability and qualityTo meet our high standards for the quality of our
products, we make intensive monitoring of production processes and testing of the raw materials we use
a top priority. Ongoing evaluation of our suppliers is
also particularly important. We communicate with our
suppliers regularly to optimize the materials being used.
The basis for our quality goals is the binding quality
guidelines that apply throughout the company. Amongother things, these guidelines set out our constant drive
to improve in every area, our “zero-error philosophy,”and the continuous monitoring that our business processes are required to undergo.
Our quality assurance measures apply at every stageof product development, from production all the way tosales. The development process starts with a precise
analysis of the characteristics required for the use of the
product. The development process itself involves theuse of established quality management instruments,
such as design of experiments (DoE), and failure mode,and effects analysis (FMEA). Quality in series production
is ensured with the help of statistical process control (SPC)
and process FMEA. Some of the features that distinguishthe quality of our service are our dependable compliance with the required product characteristics, advising
in application techniques, and fast response times.

Our internal benchmark is
the internationally recognized ISO 9001:2000 standard for quality management
systems. In addition, we
also observe the standardsof the automotive industry.
All locations that produce for this sector are additionallycertified under the ISO/TS 16949:2002 international
automotive industry standard.
This means that tesa meets extraordinarily challenging standards set by some of the company’s major
partners in industry. The end result is satisfied customers. This is particularly demonstrated by our various
awards. In 2006, for example, automaker Ford granted
tesa its second Q1 Award. This is the highest possibleclassification for Ford suppliers and a significant quality
distinction. The tesa subsidiary acos also received a
Q1 Award from Ford and further distinctions from Kraft
Foods and VW. The Brazilian Association of Flexography (ABFLEXO) granted tesa Brazil the title of “BestSupplier of the Year 2005” in the double-sided tape
category.

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Employees

Employees

Our Most Valuable Capital
Our employees have made the company what it is:Today, tesa is the world market leader in self-adhesive
systems for many fields of applicationOur ability to bring the right people into the company

and retain them is a central factor in our success.
Appreciation of our employees is one of our firmly established management principles. One focus of leadership positions at tesa is to enable employees to develop and successfully implement visions and strategies. The priorities for all the divisions of the company
are set with this in mind. Our aim is to create a great
deal of latitude and give employees corresponding
decision-making authority, creating a fun work environment at tesa.
Providing employees with opportunities to obtainfurther qualifications and training is a high priority towhich we dedicate a great deal of time. One important

tool we use to improve performance, support employees, and develop our staff for new duties is ongoing
feedback, including feedback for management. Since
2005, tesa has offered its managers the opportunity toreview their own behavior from a critical standpoint
through a communications process carried out together
with the team: the tesa management feedback pro­cess. Using anonymous questionnaires, which wasdeveloped jointly by employee representatives and thehuman resources department, compares managers’
and employees’ views of themselves and others.
Training sessions and specific skills training are othervenues we offer to give our employees further qualifications.
To ensure that comprehensive information is provided
and that the company communicates extensively withthe employees, media such as the employee magazine
inside:tesa and the tesa intranet were created as part ofan across-the-board communications strategy thataims to promote an unmistakable international corporate culture.
The company’s innovative personnel policy has won
multiple awards. In 2007 the jury in the “Top Job” competition, which was held under the auspices of former
German Minister of Economics Wolfgang Clement,
named the tesa plant in Harrislee, near Flensburg,
Germany, as one of the top 100 mid-sized German

employers. The tesa plant in Suzhou, near Shanghai,
was distinguished by the district government as one of
the 19 best employers among the 2,000 companies
present in the industrial park. In addition, the F.A.Z.
Institute of the Frankfurter Allgemeine Zeitung, a major
German daily newspaper, granted the largest tesa
plant, in Offenburg, its TOP Business Award. The jurors
were won over by the innovative models for employee
working hours, progressive programs to promote employee responsibility, and motivation, as well as leadership skills in the management of all three plants.
Since 2004, tesa has been supporting the “Fair Company” initiative. This initiative distinguishes companies
that offer graduates good career opportunities rather
than employing them as long-term interns, and thus
using them as inexpensive labor in positions beneath
their qualification levels.
In March 2007, the company also established aninternal complaints office serving all employees of tesa
AG and its subsidiaries. It offers assistance to all em-

ployees and applicants who feel they are being or
have been discriminated against on the basis of race,
ethnic origin, religion, creed, disability, age, or sexual
orientation.
Occupational safety is a high priority at the company.
The occupational safety guidelines pursuant to theinternational OHSAS 18001 standard apply within thecompany. tesa has achieved great success in preventing injuries and job-related health risks, as the extraordinarily low accident rates at the locations demonstrate.
One of the most important goals of occupational safety
is the systematic determination of where hazards lie,
and the assessment of the risks that arise from thosehazards. The locations regularly exchange informationand opinions concerning known sources of danger. As
far back as 2006, tesa’s German locations achieved thelowest accident numbers in the history of tesa AG: just
2.8 reportable occupational accidents for every 1,000
full-time employees. That corresponds to 73 percent
fewer reportable occupational accidents than in 2002.

Two of the principles of our personnel policy are creating latitude and enabling decisionmaking skills. Low accident figures demonstrate the success of the comprehensive
measures we have taken to promote occupational safety, which is a top priority.
12

13

tesa Worldwide

Contact

tesa AG: Self-Adhesive System Solutions for the World
tesa AG is one of the world’s leading producers of self-adhesive productand system solutions for industry, trade, and consumersOver one hundred years of experience in coatingstechnology, the development of adhesive masses,
and innovative product solutions have earned the Hamburg-based company a top spot on the world market
in many fields of application. In Germany, where thetesa® brand enjoys name recognition of 98 percent anda degree of popularity of 76 percent, tesa® is among
the country’s strongest brands. Generations havegrown up using transparent tesafilm®, which was firstdeveloped in 1935 and served as the cornerstone forthe broad product portfolio that has followed in thecurrent era. More than 6,000 products developed andproduced by tesa are marketed in over one hundredtesa AG has been an independent corporation since2001. Currently, about 4,000 employees across
51 subsidiaries support the company’s presence in allof the important industrial markets around the globe.
Employees at the ten tesa production sites worldwide
ensure that the company is always close to its customers. Research laboratories in Germany, United States,
China, and Singapore guarantee continuous development of innovative products. A globally oriented company, tesa earned overall sales of over 850 million euros
in 2007, 71 percent of it in international business and29 percent in the company’s home market of Germany.

countries. The company achieves more than threequarters of its total sales volume with special systemsolutions for industrial customers, ensuring in many
sectors that processes are optimized and end products
thereby improved. For example, a mobile phone, digital
camera, or LCD display may utilize up to 20 tesa
products, and more than 50 tesa solutions may havebeen used in manufacturing a car. Slightly less than
one-quarter of the company’s sales volume is attributed
to consumer-oriented solutions intended for everyday
use at the office and in homes and gardens. In thesesettings, tesa® products support people in designing
their environments themselves, thus enhancing qualityof life.

Contact:
tesa AG
Quickbornstrasse 24
20253 Hamburg, Germany
Tel: +49(0) 40-4909-6597
Fax: +49(0) 40-4909-2236
pr@tesa.com
www.tesa.com

Please also find this reporton the internet:
www.tesa.com/responsibility

tesa is always right next door to the customers: 51 subsidiaries based all over the world ensure a direct connection everywhere. In total, about 4,000 employees
work for tesa, on nearly every continent. Our goal is not only to actively participate in globalization, but also to play an active role in shaping its course.

Imprint
Publisher: tesa AG, March 2008
Responsible: Corporate Communication tesa AG
Graphic Design: Barbara Kloth
Photographers:
Andrea Butti, Xiao Kang, Henriette Pogoda,
Christian Spahrbier, Musin Yohan, Photos: B.A.U.M. e.V.,
Kinder-Hospiz Sternenbrücke, Stiftung Lesen, tesa AG

1415

Gesellschaft