Sustainability Report 2013

Sustainability Report 2013This Sustainability Report is alsoavailable in German.
Both versions and further information
are also available for download on theInternet.
www.voith.com

About this Report
Our Aspiration
This report is the fourth Sustainability Report by Voith GmbH. We
aim to keep our company’s stakeholders updated once a year
on the progress we are making in our fields of activity. These
include Sustainable Management, Sustainable Profitable Growth,
Environment, Product Responsibility, Employees, and Society.
This report focuses on explaining our strategies, solutions, andmeasures as well as presenting our key figures.
Reporting Method
The report is oriented toward the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level A requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.

Comparability of Facts, Figures, and Information
Certain figures were calculated for the first time for this report.
This means that in specific cases a three-year trend cannot yet
be presented, but it will be introduced in the future.
Owing to the new calculation bases, better quality data, andupdated information, we needed to correct previous figures on
the environment (such as emissions, energy consumption, water, and waste). There may be differences in the data totals as aresult of rounding figures up or down.
Forward-looking Statements
We would like to point out that all forward-looking statements inthis report are based on current assumptions. Due to unknown
risks, uncertainties, and other factors, the actual results, developments, or services of our company may deviate from our
prognoses, evaluations, and statements.

Reporting Period and Report Scope
The Sustainability Report 2013 is based on fiscal year 2012/13,
which at Voith starts on October 1 and ends on September 30
the following year. The deadline for content submission for thisreport was May 31, 2014. Unless otherwise stated, the facts,
figures, and information in this report refer to the Voith Group
as a whole with its global Group Divisions Voith Hydro, Voith
Industrial Services, Voith Paper, and Voith Turbo. The degreeof consolidation is 83.6 % of the Group’s sales and 86.98 % of
the Group’s employees (= 42,482 employees at 92 sites) unlessotherwise indicated in the report.

Additional Comments
For improved readability, we refrain from referring specificallyto both genders in this report. This is not a value judgment andall forms are to be understood as gender-neutral. The term
“service business” describes the business activity of the Group
Division Voith Industrial Services. This Sustainability Report isavailable in German and English. Please visit our website atwww.voith.com and read our Annual Report for further andmore extensive information.

Data and Information Gathering
Information was collected electronically upon written request.
Data was recorded using division-specific software.

We expect to publish our next Sustainability Report in the springof 2015.

Sustainability Report 2013

Sustainability Report 2013This Sustainability Report is alsoavailable in German.
Both versions and further information
are also available for download on theInternet.
www.voith.com

About this Report
Our Aspiration
This report is the fourth Sustainability Report by Voith GmbH. We
aim to keep our company’s stakeholders updated once a year
on the progress we are making in our fields of activity. These
include Sustainable Management, Sustainable Profitable Growth,
Environment, Product Responsibility, Employees, and Society.
This report focuses on explaining our strategies, solutions, andmeasures as well as presenting our key figures.
Reporting Method
The report is oriented toward the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level A requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.

Comparability of Facts, Figures, and Information
Certain figures were calculated for the first time for this report.
This means that in specific cases a three-year trend cannot yet
be presented, but it will be introduced in the future.
Owing to the new calculation bases, better quality data, andupdated information, we needed to correct previous figures on
the environment (such as emissions, energy consumption, water, and waste). There may be differences in the data totals as aresult of rounding figures up or down.
Forward-looking Statements
We would like to point out that all forward-looking statements inthis report are based on current assumptions. Due to unknown
risks, uncertainties, and other factors, the actual results, developments, or services of our company may deviate from our
prognoses, evaluations, and statements.

Reporting Period and Report Scope
The Sustainability Report 2013 is based on fiscal year 2012/13,
which at Voith starts on October 1 and ends on September 30
the following year. The deadline for content submission for thisreport was May 31, 2014. Unless otherwise stated, the facts,
figures, and information in this report refer to the Voith Group
as a whole with its global Group Divisions Voith Hydro, Voith
Industrial Services, Voith Paper, and Voith Turbo. The degreeof consolidation is 83.6 % of the Group’s sales and 86.98 % of
the Group’s employees (= 42,482 employees at 92 sites) unlessotherwise indicated in the report.

Additional Comments
For improved readability, we refrain from referring specificallyto both genders in this report. This is not a value judgment andall forms are to be understood as gender-neutral. The term
“service business” describes the business activity of the Group
Division Voith Industrial Services. This Sustainability Report isavailable in German and English. Please visit our website atwww.voith.com and read our Annual Report for further andmore extensive information.

Data and Information Gathering
Information was collected electronically upon written request.
Data was recorded using division-specific software.

We expect to publish our next Sustainability Report in the springof 2015.

Our credo is this:Voith makes a measurable contribution
to sustainable development.
Dr. Hubert Lienhard

Voith Sustainability Report 2013 I 1

Voith Sites

North America
Sales: € 890 million

EuropeSales: € 2,715 million

Asia / Australia / Oceania
Sales: € 1,365 million

Central / South America
Sales: € 624 million.

Voith sites in fiscal 2012/13 with more than 20 employees.

AfricaSales: € 134 million

Imprint

Contact

Publisher
Voith GmbH
Corporate C­ ommunications
St. Pöltener Straße 43
89522 Heidenheim, Germany
Telephone: +49 7321 37-0
+49 7321 37-7000
Fax:
E-mail:info@voith.com
www.voith.com

Project Management andContact Point for Questions
Regarding Content
Corporate Sustainability
Torsten Kallweit,
Markus Schönberger
Further Information
This report is also available inGerman.
The German and English­editions are available on the­Internet at,
www.voith.com/de/konzern/
nachhaltigkeit-178.html
www.voith.com/en/group/
sustainability-178.html.
In addition to the Sustainability
Report, Voith also publishes acomprehensive Annual Reportat the end of the fiscal year.
This is available on the Internet
at, http://www.voith.com/en/
group/facts-figures-96.html.
Textakzente kommunikation undberatung gmbH
DesignG2 Printmedienmanufaktur
GmbH, Grafing bei München

Environmentally
Friendly Production
All CO2 emissions produced during thecourse of printing and preparing the Voith
Sustainability Report were determined. By
making a proportionally equal investment ina Gold Standard climate project, the corresponding CO2 emissions will be saved in the
future and the Voith Sustainability Report will
be CO2-compensated.

carbon neutral
natureOffice.com | DE-141-373726

print production
The Respecta Silk recycled paper we used
for the Voith Sustainability Report 2013 is
made from at least 60 % secondary fibers
and was produced using a Voith paper
machine.

Printed in Germany, © Voith GmbH, 2014-06

Voith Sites

North America
Sales: € 890 million

EuropeSales: € 2,715 million

Asia / Australia / Oceania
Sales: € 1,365 million

Central / South America
Sales: € 624 million.

Voith sites in fiscal 2012/13 with more than 20 employees.

AfricaSales: € 134 million

Imprint

Contact

Publisher
Voith GmbH
Corporate C­ ommunications
St. Pöltener Straße 43
89522 Heidenheim, Germany
Telephone: +49 7321 37-0
+49 7321 37-7000
Fax:
E-mail:info@voith.com
www.voith.com

Project Management andContact Point for Questions
Regarding Content
Corporate Sustainability
Torsten Kallweit,
Markus Schönberger
Further Information
This report is also available inGerman.
The German and English­editions are available on the­Internet at,
www.voith.com/de/konzern/
nachhaltigkeit-178.html
www.voith.com/en/group/
sustainability-178.html.
In addition to the Sustainability
Report, Voith also publishes acomprehensive Annual Reportat the end of the fiscal year.
This is available on the Internet
at, http://www.voith.com/en/
group/facts-figures-96.html.
Textakzente kommunikation undberatung gmbH
DesignG2 Printmedienmanufaktur
GmbH, Grafing bei München

Environmentally
Friendly Production
All CO2 emissions produced during thecourse of printing and preparing the Voith
Sustainability Report were determined. By
making a proportionally equal investment ina Gold Standard climate project, the corresponding CO2 emissions will be saved in the
future and the Voith Sustainability Report will
be CO2-compensated.

carbon neutral
natureOffice.com | DE-141-373726

print production
The Respecta Silk recycled paper we used
for the Voith Sustainability Report 2013 is
made from at least 60 % secondary fibers
and was produced using a Voith paper
machine.

Printed in Germany, © Voith GmbH, 2014-06

Editorial
Dear readers,
In your hands you hold the fourth edition of our Sustainability Report. In the coming
pages, you can read how we have established sustainability organizationally at ourcompany and integrated it in our business processes. The report also offers you
the opportunity to learn more about our approaches in the fields of activity that areimportant to us.
Our aspiration is to contribute to sustainable development. For us, this means
creating added value for our company, the environment, our employees, and society
with our products and services as well as projects and initiatives. This report willshow you the progress Voith has made in meeting this aspiration in the areas ofsustainable corporate governance, the environment, products, employees, andsociety in fiscal year 2012/13. For example, on pages 29 to 33 we show you someof our innovative products with environmental added value. You will find an overview
of all key figures and targets at the end of the report starting on page 49.
As the new Head of the Corporate Sustainability central function, I hope to continue
to drive these developments forward, and I hope you will accompany us on this path.

Sincerely yours,

Torsten Kallweit, Head of Corporate Sustainability

2 I Voith Sustainability Report 2013

Contents
About this Report, Contents, Foreword

4 Responsibility for Employees

34

About this Report 

Cover

4.1 Management Approach36

Voith Sites 

Cover

4.2 Recruiting, Training, and Further Education

38

Editorial2

4.3 Occupational Health and Safety Management

40

Contents 3Foreword 

44.4 Diversity & Inclusion andFamily-Friendly Policies

42

1 Sustainable Management

6

5 Responsibility for Society

44

1.1 Group Portrait and Business Situation

8

5.1 Management Approach46

1.2 Sustainable Management

10

5.2 Projects and Activities

47

1.3 Values and Compliance

12

1.4 Stakeholder Dialog 

13

1.5 Supplier Management 

14




2 Responsibility for the Environment

16

Miscellaneous49

2.1 Management Approach

18

Facts and Figures

50

2.2 Resource Management

19

Goals and Goal Achievement

67

2.3 Operational Environmental Protection

26

GRI Index 

71Imprint/Contact 
3 Product Responsibility

28

3.1 Management Approach30

3.2 Product Safety and Quality, Customer Dialog

31

3.3 Products and Services that Conserve
Resources and the Environment

32

Cover

Voith Sustainability Report 2013 I 3

Foreword

Dear ladies and gentlemen,
Dear friends of Voith,
The following pages show how we have progressed on our path toward moresustainable management in the past fiscal year. However, they also clearly indicate
the areas in which we still have work to do – areas where we need to do more andwhere we want to improve further.
As a family-owned company, sustainable management and business success are
inextricably linked at Voith. Since the days of our founder Friedrich Voith, who madesustainable thinking a crucial aspect of his entrepreneurial considerations – at a time
when the term “sustainable” didn’t yet even exist – by founding the first health fundin Germany and establishing the first internal training schools, thinking in sustainability categories has become a significant part of the corporate responsibility of
our company.
Today, nearly 150 years after our founding, this aspiration to sustainable management continues to be an important component of who we are. It goes hand in handwith the focus of our organization on sustainable management in our six defined
fields of activity, which include – in addition to sustainable management and the
pursuit of profitable growth – product responsibility, employee responsibility, social
responsibility, and environmental responsibility.

4 I Voith Sustainability Report 2013

The objective of this fourth Voith Sustainability Report is to show how we create ameasurable added value economically, environmentally, and socially with our Groupwide initiatives and projects. To this end, you will find many specific examples andachievements in the six fields of activity in the following pages.
We made some progress in 2013 toward the goals we set for ourselves. One goalthat we had hoped to achieve sometime in the next three years – a reduction in freshwater consumption – has already been achieved, and much sooner than expected.
We now want to maintain what we have achieved and improve further. In other fields
we must redouble our efforts and continue to work hard.
Now when we talk about sustainability at Voith, we’re talking about sustainable
management in more than 250 locations around the world in over 50 countries. As
an international company with German roots, our aspiration is to implement our
global strategy everywhere locally in accordance with the needs and requirementsof the region.
This report focuses on South America. In 1964, Voith opened its first Latin American
branch in Brazil. Today, 50 years later, Voith is a local company in Brazil. In our 50th
anniversary year in Brazil, we are successfully represented in the country with all
four divisions, and we are more convinced than ever of the relevance and long-term
significance of this region. We are a solid part of the economic community and a
responsible corporate citizen. For example, Voith has for many years provided training in Brazil using the German dual-training model, has its own foundation there, andsupports a school that bears the name of our founder, Friedrich Voith.
We will not let up in our efforts – not only in Brazil but all around the world. It remains
a stated goal of management to make Voith a benchmark for our industry in the areaof corporate sustainability.
I hope you enjoy reading this report.

Yours sincerely,

Dr. Hubert Lienhard

Voith Sustainability Report 2013 I 5

6 I Voith Sustainability Report 2013

Being established in all regions of the world and knowing its local markets
is part of the corporate success of Voith. With more than 48,000 employees,
we are represented in more than 50 countries on all continents. Voith has
been active in Brazil with its own subsidiaries and production facilities since1964. In 2010, we opened a new plant for manufacturing water turbines in
Manaus in order to benefit from the rising energy needs in the Northern partof the country. Today, we are successful with all four Group Divisions in
Brazil. We employ more than 5,700 employees at two production and two
distribution sites.

01

Sustainable
Management
Voith is a globally active technology group. With its
portfolio of investments, products, and industrial
services, the company serves five essential markets:
Energy, Oil & Gas, Paper, Raw Materials, andTransport & Automotive. With our understanding ofsustainability, we carry on the tradition and style of
the Voith family-owned company: the obligation to
conduct environmentally compatible, clean and fairbusiness with long-term success.

Voith Sustainability Report 2013 I 7

Portrait and Sustainable Management

1.1 Group Portrait and Business Situation

Annual Report
Page 64 ff.

Voith is represented as a global technology groupin more than 50 countries and maintains a worldwide network of production, service, and distribution locations. Voith GmbH, headquartered in
Heidenheim an der Brenz (Germany) is the operational management holding company for the Group.
The Board of Management of Voith GmbH is responsible for the Group’s strategic management
and operations. The Shareholders’ Committee andSupervisory Board act as advisory and supervisory
bodies. The Supervisory Board also monitors theBoard of Management. Founded in 1867, Voith
is one of the largest family-owned companies in
Europe today. Voith breaks its operational business into four Group Divisions: Voith Hydro, Voith
Industrial Services, Voith Paper, and Voith Turbo.
The Group Divisions are each managed by legallyindependent management companies.
Business Situation
Fiscal year 2012/13 was characterized by difficult
conditions as a result of ongoing global economic
uncertainty and instable financial markets. As aresult of high order entries over the last year, Groupsales remained stable compared to the year before at € 5.7 billion. Voith Hydro and Voith Industrial­Services recorded an increase of 6 % and 8 %, respectively, while Voith Paper and Voith Turbo posted a sales decrease of -6 % and -3 %, respectively.

Voith posted a net profit of € 63 million (previous
year: € 114 million). Regionally, Voith generated
27 % of Group sales in America, of which 16 % wasin North America and 11 % in South America. The
remaining sales came from Asia (23 %) and therest from Europe (27 %). The business in Germany
was 20 %.
In the reporting period, Voith had 43,134 full-time
positions (full-time equivalents, excluding trainees)and employed 48,845 people. This represents anincrease in positions of 2 % over the previous year.
Developments in the Group Divisions
As a full-service provider of hydro power plant
equipment, Voith Hydro is one of the leading partners for hydro power worldwide. This businessarea, with its 5,323 employees, contributed 24 %(previous year: 23 %) to sales in fiscal year 2012/13.
There are 21,032 employees at Voith Industrial
Services. The service provider for key industries
ranging from automotive, energy, chemicals, andpetrochemicals to mechanical engineering andTotal Sales 2012/13 € 5,728 million
By Business Divisions
Voith ­Turbo
26 %Voith ­Hydro
24 %Voith Paper
29 %Voith ­Industrial­Services
21 %Organizational Structure
Voith Group Business Divisions

By region

Voith GmbH
America
27 %

Voith
Hydro

8 I Voith Sustainability Report 2013

Voith
Industrial
Services

Voith
Paper

Voith
Turbo

Asia
23 %

Germany
20 %Othercountries
27 %
Other
3%

aerospace posted a sales share of 21 % (previous
year: 19 %).
As a system provider for the paper industry, Voith
Paper offers technologies, products, and services
for the entire paper manufacturing process. Its
share of Group sales during the reporting period
was 29 % (previous year: 30 %).
At 26 % (previous year: 27 %), the share of Voith
Turbo remained almost the same as last year’s level.
The division, which produces drive solutions aswell as technical systems and components, employed 6,485 people.
At Voith headquarters, there were 1,071 employees. All data correspond to full-time equivalent
positions.
Strategy of Long-term and Profitable Growth
At Voith, we pursue a long-term corporate strategy focused on long-term, profitable growth basedon four pillars: a balanced product portfolio, ourglobal presence, strong innovation, and financial

Employees 2012/13 total 43,134
By Business Divisions
Voith ­Turbo
15 %independence as a family-operated company.
Starting with our original core business – machineand plant construction – we have expanded our
product and service portfolio in recent years andestablished ourselves in our key markets: Energy,
Oil & Gas, Paper, Raw Materials, and Transport& Automotive. Our positioning makes it possible
for us to absorb numerous economic risks: it iseasier for us to compensate for sales losses in
the late-cycle markets (Oil & Gas, Raw Materials,
and Energy) with growth in the early-cycle markets(Paper, Transport & Automotive) – and vice versa.
We want to be represented with development andproduction sites in key growth regions of the world
so we can supply each market locally and advise
market actors. We do this through regional value
creation, as in addition to management and supply
chains we are also making increasing use of local
financing sources. Voith aims to be as deeply rooted in its international markets as it is in its German
locations. I

Annual Report
Page 101 ff.

Our economic success is also based on our innovative capabilities. In fiscal year 2012/13, weinvested € 242 million (previous year: € 267 million)
in research and development (R&D). Measured asa percentage of Group sales, the R&D ratio was
4.2 % (previous year: 4.7 %).

Voith ­Hydro
12 %Voith Paper
21 %
Other
3%

Voith ­Industrial­Services49 %By region
Germany
40 %America
27 %
Asia
12 %

Other
countries
20 %
Other
1%

Voith Sustainability Report 2013 I 9

Portrait and Sustainable Management

1.2 Sustainable Management­Changes and risk
Annual Report 2013

Sustainability
Fields of Activity
Sustainability Report
2012, Page 12

Duty to Conduct Sustainable BusinessWith our concept of sustainability, we are carrying
on the tradition of Voith, a family-owned company,
which includes the obligation to conduct environmentally compatible, clean, and fair business withlong-term success. Based on the minimization ofbusiness and corporate risks, we want to increase
our operational efficiency – for example, by reducing the use of resources or by retaining qualified
staff. With its resource-efficient products and services, Voith seeks to generate environmental andfinancial added value for its customers. I + G
With this concept we strive also for a leading position regarding sustainability in our markets andindustries.
Our credo is this: Voith makes a measurable contribution to sustainable development.
Management and Organization
We have defined six fields of activity that we use
as a basis for integrating sustainability into theGroup. These include, alongside sustainable corporate governance and the pursuit of profitable
growth, the four areas responsibility for our products, for the environment, for our employees, andfor society. We have linked each field of activity toconcrete measures with specific target dates (seeGoals and Goal achievement).
At Voith, sustainability is a cross-functional responsibility shared by our Corporate Board ofManagement, Group Divisions, and Corporate
Departments.
The Corporate Sustainability central function provides the framework for the strategic focus andorganization of sustainability at Voith, advises thecompanies and Corporate Departments, and further develops sustainability as a theme. The central
function reports directly to the Chairman of the
Corporate Board of Management. It defines methods and tools for measuring and controlling theactivities of the Group, such as the sustainability
database. In addition, the areas of Environment,

Sustainability Development Path

License to operate

Cost reduction

Increase in sales

Riskmanagement

Operational
efficiency

Product
innovation

10 I Voith Sustainability Report 2013

Competitive
advantageHealth and Occupational Safety, and the Corporate Sustainability Office report directly to the headof this area.

collection. Implementing measures is the responsibility of the Group Divisions and the corporate
departments (for example, HR and Purchasing).

During the reporting period, a working group comprised of various members of the top management,
was established with the task of developing proposals for the future focus, strategy, and KPIs
for controlling the management of sustainability.
The results were presented to the Chairman of
the Board of Management in autumn 2013. The
working group will continue to function on a consultative basis.

Voith collects relevant environmental data, material indicators, and selected employee data in asustainability database. This database is basedon internal guidelines and the requirements of
the Global Reporting Initiative (GRI). The operating units or sites are responsible for collecting thedata; the data is analyzed in our Group-wide management reporting tool (MRT) and the integrated
database. Most data is collected annually, while
waste and water data are collected quarterly andenergy monthly. G

The Corporate Sustainability Council (CSC), whichis comprised of the sustainability managers fromthe Group Divisions, functions as the central control body. It prepares the bases for decisions andreports directly to the Group Board of Management. In its controlling and monitoring function, thecouncil monitors the operational implementationof strategies, goals, and measures in the Group
Divisions and is responsible for the process of data

Organization Sustainability

Approval of
objectives

Corporate GovernanceCorporate Sustainability (central function)
Definition of
objectives,
monitoring andcontrolling

Corporate Sustainability
CouncilVoith Hydro

Voith Industrial
Services

Voith Paper

Voith Turbo

Corporate Departments

Implementation
planning andmonitoring

Regions/Locations

Implementation

Voith Sustainability Report 2013 I 11

Portrait and Sustainable Management

1.3 Values and Compliance
Voith – Engineered Reliability
Our actions are based on trust. This is reflected in
our values: professionalism, respect for the individual, helpfulness toward colleagues, openness,reliability, and integrity. This self-conception issummarized in our slogan “Voith – Engineered Reliability”. Voith seeks to provide reliable and highquality technologies and acts fairly, openly, andreliably in dealings with its employees, partners,
and customers. We want to retain those employees who meet our performance aspiration at Voithover the long term. We maintain partnerships withour business partners, customers, and suppliers
that frequently last for generations. Our values
form the foundation on which the Voith brand isbuilt and the core of our corporate identity. With
our values, and the guidelines derived from them,
we ensure that Voith acts according to the samebusiness principles and adopts the same philosophy worldwide. In this way, we combine the cultureof a family-owned company with that of a global
player.
Code of Conduct
http://voith.
com/en/group/compliance-187.html

Code of Conduct
The Voith Code of Conduct defines conduct withcustomers and business partners as well as theinteraction with one another at the company. We
expect each of our employees to comply with theapplicable laws and our own internal guidelines(compliance). This applies Group-wide and for all
hierarchy levels. Violations will results in sanctions.
The rules and procedures are constantly updated
and adapted to current requirements. The key aspects of the Voith Code of Conduct are: I• Compliance with the rules of fair competition

12 I Voith Sustainability Report 2013No agreements that contravene competition law.
No corruption or bribery: no offering and granting
or demanding and accepting unfair benefits.
• Transparency of donations and sponsorships.
• Maintaining own and respecting third-party company and patent secrets.
• No undue preferential treatment of suppliers andservice providers.
••Compliance Organization and Training
The Compliance Committee is responsible for setting up, developing, and coordinating the Voith
compliance program and for reviewing the compliance regulations and coordinating training. The
Compliance Committee comprises the respective
heads of the Corporate Office (Chairman), Corporate Law, Corporate HR Management, and Group
Audits. The Chairman of the Committee reports
directly to the Chairman of the Voith GmbH Boardof Management. In accordance with Voith’s otherrisk management organization, the Chief Financial
Officers (CFOs) of our Group Divisions and our individual Group companies serve as the respective
compliance officers in their units. They are responsible for implementing the Voith compliance organization in their areas. The compliance officers are
responsible for the implementation of the Code of
Conduct in the individual Group Divisions in theirarea of responsibility and also serve as Group-wide
contact partners.
Every employee is obliged to report a suspectedviolation of the Voith Code of Conduct. They canreport a violation to their direct supervisor or thecompliance officer of the respective Group Division,

as well as electronically via the help desk or bye-mail. We follow up complaints that have been
submitted anonymously via a Group-wide whistleblower system. The number and type of violations
are documented centrally.
Our management system for information technology and security is certified according to the international standard ISO/IEC 27001. In addition,
the certification of our compliance management

system based on the IDW EPS 980 standard wascompleted during the fiscal year.
Voith requires all employees to update their know­
ledge of compliance issues via e-learning programs on a regular basis. By the end of fiscal year
2012/13, around 38,000 employees had participated in compliance training. Thus, 93 % of all Voith
employees have completed the e-learning. On-sitetraining is also planned.

1.4 Stakeholder Dialog
At Voith, we are confronted with different needs
and expectations that are placed on the company
by stakeholders. Among our most important stakeholders are the owners and supervisory committees, employees, the works council, customers,
suppliers and investors, neighboring communities,
economic associations and academia, government
agencies and politicians, NGOs, and the generalpublic. We are in contact with our stakeholders
on various issues. From October 23 to November
15, 2013, we conducted a stakeholder survey inorder to identify expectations and requirements ofcorporate responsibility at Voith. The survey wascompleted by 1,044 participants from 43 countries. We will analyze the responses in fiscal year
2013/14 and publish the results in the Sustainability
Report 2014.
We exchange ideas on topics specific to our technology and industry in professional associations.

Voith is a member of, among others, the German
Engineering Federation (Verband Deutscher Maschinen- und Anlagenbau e.V. – VDMA), the German
Association for Materials Management, Purchasing,and Logistics (Bundesverband Materialwirtschaft,Einkauf und Logistik e. V. – BME/ AMMPL), the German Industrial Services Association (Wirtschaftsverband für Industrieservice e.V. – WVIS), and theInternational Hydropower Association (IHA). Voith
also works in industry associations – for example in
the German Committee of Standards Users (Ausschuss Normenpraxis – ANP), the German Railway
Industry Association (Verband der Bahnindustrie in
Deutschland e. V. – VDB), and the German Aerospace Industries Association (Bundesverband derDeutschen Luft- und Raumfahrtindustrie e. V. –BDLI). Voith is in regular contact with NGOs on
environmental and social issues, such as the World
Wide Fund For Nature (WWF).

Voith Sustainability Report 2013 I 13

Portrait and Sustainable Management

1.5 Supplier Management
In fiscal year 2012/13, our purchasing volume was€ 3.2 billion (previous year: € 3.3 billion). Voith worked
together with suppliers from 77 countries. The threelargest groups of goods purchased as production
materials, measured in euros, were electrical/electronics, cast parts, and semifinished goods/steel. In
terms of global regions, Europe accounted for 58 %,America for 28 %, and Asia for 14 %.
Our drive for sustainable business practices also
involves our suppliers. We have worked with manyof them in a long-term partnership based on trust.
Voith uses various tools, such as guidelines andstandards, internal and external evaluations, andemployee training to firmly establish the sustainability of the supply chain. During the reporting period,
we integrated environmental and social criteria in theevaluation of our partners.
The assessment and steering of suitable suppliers is
conducted via our central database (SupplierManagement@Voith). For example, we ensure that ourpurchasing departments have access to key supplierinformation. Over the long term, this allows us tominimize financial and reputational risks and createtransparency in the supply chain.
Social and environmental aspects have been integrated in our General Purchasing Conditions, supplier self-assessments, evaluations, and audits. Corresponding criteria are being entered into the database.

14 I Voith Sustainability Report 2013

Standards in Business Relationships
Our idea of partnerships and our specifications oncompliance as well as environmental and social standards are established in the Code of Conduct andin the General Purchasing Conditions (GPC). It isstipulated that the review, awarding, and processing of a contract must be handled transparently by
the Group. Our suppliers must comply with all legal
provisions on environmental protection and labor law
and may not tolerate bribery, corruption, or child orforced labor. Our GPC generally form the legal basis for a partnership when a business relationship isconcluded. If the business terms and conditions of
our suppliers apply in individual cases, adequate information and verification of our requirements should
supplement these.
Suppliers can complete a self-assessment regarding
environmental and social standards. To date, selfassessments have been voluntary. This process
was restructured during the reporting period withthe goal of increasing the supplier self-assessment
rate – similar to the supplier evaluation – to 80 % ofpurchasing volume in fiscal year 2013/14.
Sanctions against Violations
A violation by a partner may lead to termination of
the business relationship. If suppliers do not comply
with our specifications, we send a warning and request improvement. If a supplier does not make theimprovement within a specified time period despite
several warnings, the business relationship shouldbe terminated and the supplier blocked. During
the reporting period, we developed our “BlockedSupplier Concept” for blocking suppliers (formerly
known as “blacklisting”). It will be implemented
Group-wide in fiscal year 2013/14.

with the greatest purchasing volume (Heidenheim,
Kunshan/Shanghai, and São Paulo) during the reporting period.

Internal Supplier Evaluation
In addition to supplier self-assessments, internal
supplier evaluations, which are stored in the central
database, are among our most important steering
tools. Our employees are required to evaluate suppliers with the highest sales totals at least once a year.
Of the 32,500 companies that received orders fromus in fiscal year 2012/13, we reviewed 5,861 companies in 8,279 transactions. Assessed suppliers
equaled 76 % (previous year: 72 %) of our total purchasing volume during the reporting period, allowing
us to reach our target.

Audits, Certifications, and Training
Information on quality, environmental, and occupational safety management is of particular interest for
us. Our suppliers can provide the respective proofof their processes, systems, and products throughinternationally recognized standards and certificates(ISO 9001, ISO 14001, ISO 50001, EMAS, OHSAS
18001, SA 8000, etc.). The review of the certificatesis carried out during audits whenever necessary.
Suppliers who do not have the respective certificates should be visited on-site by Voith employees
who inspect the quality of processes, systems, andpro­ducts. The priorities and frequency of these visits
are defined at the Group Division level and adjusted
when necessary; we are working on centralized
collection.

In fiscal year 2012/13, we integrated social and environmental criteria in our evaluations. The “sustainability ratio” is comprised of internal and externalrequirements that are also included in the assessment in equal proportion. At an average of 80 out
of 100 evaluation points, the partners we evaluatedduring the reporting period already largely meet ourrequirements. Social and environmental criteria
currently represent 10 % of the total evaluation ofa supplier.

Our employees are regularly trained in supplier selfassessment and evaluation, visit reports, and compliance with laws and directives in the “Purchasing
Training School”. The number of participants and total number of hours are recorded in our HR database.

Local Purchasing
With our “local for local” strategy, we pursue the goalof increasing our regional purchasing volume. By doing so, we reduce costs and decrease transportrelated CO 2 emissions. We procured the vast majority of products from local suppliers at the locations

Voith Sustainability Report 2013 I 15

16 I Voith Sustainability Report 2013

Brazil is characterized by quick economic growth that is associated withincreasing environmental pollution. This is particularly noticeable in cities
such as São Paulo, where Voith has a large site. That is why we want tomake a contribution to environmental protection locally: we use recycledwater from our own treatment facility for cooling purposes at our foundry,
thus saving 25,000 cubic meters of freshwater annually. By using recycledwood for packaging, we consume 264 fewer metric tons of wood annually.
Thanks to a new dust-removal plant, we have reduced our hazardous
emissions and ensure that exhaust is cleaner.

02

Responsibility
for the Environment
We create a measurable added value for Voith bycombining economic principles and environmental
aspects. In doing so, we pursue the goal ofminimizing our impact on the environment acrossthe entire value chain on an ongoing basis.

Voith Sustainability Report 2013 I 17

Responsibility for the Environment

2.1 Management Approach
As a globally active technology corporation, theefficient use of resources and energy is one of thecentral aspects of our corporate responsibility. Our
environmental activities not only contribute to theachievement of our global climate goals – it also
creates measurable added value for Voith. In doing
so, we combine economic aspects with environmental considerations.

Environmental
principles
http://voith.com/en/
group/sustainability/
environment-607.html

In developing Voith into a sustainable company
in the area of the environment, we pursue threemain goals:• Eco Standards provides strategic and operational support for Voith’s business units and sites in
implementing and complying with environmental regulations and internal environmental protection policies.
• Ecological Business Management improves energy and resource efficiency at our production
and service locations, taking account of cost effectiveness. The activities are characterized asresource management.
• Eco Technologies promotes the competitivenessof our products through analysis and assessment of Voith products and services with respect
to energy and resource efficiency. G

The Group Management Board defined three central goals for resource and environmental protection on the basis of fiscal year 2011/12: Voith intends to reduce its energy needs by 20 %, volume
of waste by 25 %, and freshwater usage by 10 %as a percentage of sales by fiscal year 2017/18.
Organization and Standards
The central Corporate Environment department is
responsible for all environmental activities in theGroup. It operates as a part of Corporate Sustainability and reports to the Chairman of the Corporate Board of Management. The environmentalorganizations in the Group Divisions help our sites
to implement tasks and measures related to theenvironment. They report to the relevant Group
Division’s Board of Management. All Group-wide
relevant data on health and occupational safety
and environmental protection are recorded in ourreporting tools, which are used to track key figures
and goals. We are guided in this by the standards
ISO 14001 and OHSAS 18001.
There have been binding environmental standards
for the entire Group at all levels in the value chain
since 2003. We updated these standards in 2012 in
the form of the Group directive “Environment”. Ourseven environmental guiding principles are a partof this directive. I

Sustainability Development Path

Licence to operate

Cost reduction

Increase in sales

Riskmanagement

Operational
efficiency

Product
innovation

Eco Standards

Ecological Business
Management

Eco Technologies

18 I Voith Sustainability Report 2013

Competitive
advantage

2.2 Resource Management
In recording and controlling the used resources,
Voith focuses on the energy, waste, and freshwaterat its production and service locations. We determine savings potential and implement measures
for the efficient use of resources. As a globally active technology corporation, the vast majority ofthe energy used and greenhouse gases emitted atVoith come from production, and a much smaller
share from our service locations. Ecological Business Management therefore focuses on identifying
ecological and economic improvement potential in
our production processes. Our resource management activities include:• Conducting input-output analyses at the process, equipment, and component levels to identify cost-efficiency potential.
• Development of hot-spot analyses of cross-location topics, such as the energy consumed during a process step, the water used by a pieceof equipment, or the volume of a waste fraction.
• Tracking of goals achieved via integrated monitoring of key figures and development of measures.
During the reporting period, we conducted workshops on the energy efficiency of machine tools at
our locations in Heidenheim, St. Pölten, Crailsheim,
and Garching, as well as energy saving workshops
and inspections at our nine service locations inGermany.
Voith also developed the “Quick Checks” tool during the reporting year, with which it can assess theenergy saving potential and cost effectiveness of
our locations as well as those of our customers.
We further developed the EBM method using new
tools and an EBM toolbox.

EnergyAs a result of the business situation, Voith consumed
601,198 MWh, or 0.4 % less energy at its production
and service sites in fiscal year 2012/13 than in theprevious year (603,369 MWh). This corresponds
to approximately 105 MWh per € million in sales –the same as last year. Thus, we are not closer toour goal of reducing energy needs by 20 % by fiscal
year 2017/18.
The proportion of direct and indirect energy remained almost the same: around 32.7 % (or196,747 MWh) from direct energy and around67.3 % (or 404,451 MWh) from indirect energy. The
regional breakdown of energy consumption showsthat Europe, at 56 %, makes up more than half ofglobal production-related energy consumption, followed by North America at 21 %. The figures forSouth America and Asia are 12 % and 11 %, respectively. Electricity is the dominant source ofenergy in the latter two regions, at 81 % and 69 %,respectively. The ratio of electricity to other energy
sources in North America and Europe is more balanced, at 52 % and 43 %, proportionately.G

Production-based Energy Consumption
Specific value in MWh/€ million in sales
110

105

105

Target value 2017/18

84.3

In MWh615,455

603,369

601,198

Asia
South America

11 %North America

21 %

12 %

Europe56 %2010/112011/122012/13

Voith Sustainability Report 2013 I 19

Responsibility for the Environment

Detailed
information
Page 51

Detailed
information
Page 52

While the regions in Europe and North America
recorded a decline in energy-related consumption compared to last year of 7,128 MWh and2,868 MWh, respectively, consumption in SouthAmerica and Asia increased over the same period
by 4,318 MWh and 3,618 MWh, respectively. The
increases are largely the result of increased production capacity of the foundry in São Paulo andthe expansion of production at the Kunshan
location.
At the same time, we saved 5,098 MWh of energy and approximately 1,679 metric tons of CO 2
compared to last year thanks to the optimizationof production processes and the environmentallyconscious actions of our employees.
The key energy sources of our direct production-related energy consumption were naturalgas (156,500 MWh), liquefied petroleum gas(14,065 MWh), heating oil (13,958 MWh), anddiesel (12,075 MWh). We use natural gas, liquefied petroleum gas, and heating oil as heating fueland for heat-intensive thermal processes. Diesel

is needed to operate emergency generators andsteam generation at the Karanwang location.
The energy sources of our electricity mix obtained
from external providers are comprised of 72 % nonrenewable and 28 % renewable resources. Remarkably, the proportion of renewable energies ofthe electricity supply in South America is 80 % andin Europe 27 %. In North America (4 %) and Asia
(2 %), the proportions of renewable energies are
negligible. I
Emissions
Emissions of the Voith Locations
The CO 2 emissions at our locations rose in fiscal year
2012/13 by 1.1 % to 185,350 metric tons (previous
year: 183,370 metric tons). The proportion of direct
CO 2 emissions fell from 43,369 metric tons to
42,337, or by 2.4 %. This is largely due to the decrease in production at the Heidenheim location. By
contrast, indirect CO 2 emissions increased to
143,013 metric tons (previous year: 140,002 tons).
This is largely the result of a rise in energy consumption as a result of increased production capacity at

Regional Breakdown of Energy Consumption 2012/13
By type
Europe 56 %North America 21 %Naturalgas
48 %Natural gas
25 %
Steam
1%
Longdistanceheating
25 %Electricity
52 %Heating oil
4%
LPG
2%
Electricity
43 %Asia 11 %Diesel9%South America 12 %Diesel7%LPG
12 %20 I Voith Sustainability Report 2013

Electricity
81 %Heating oil
1%Natural gas
20 %Electricity
69 %
Steam
1%

Production-based Greenhouse Gas Emissions
In t CO2
184,288

183,370

185,350

Asia

26 %

South America

10 %North America

25 %Europe39 %2010/112011/122012/13

the foundry in São Paulo and the expansion of production at the Kunshan location. G
The regional breakdown of absolute CO 2 emissions shows that, at 39 %, the majority are emitted in Europe. This is primarily because of thehigh number of Voith locations in this region.
North America generates 25 % of emissions,and Asia 26 %. A significant reason for this is thehigh proportion of energy generated from coalin both regions. With only 10 % of absolute CO 2
emissions, South America benefited from a highproportion of renewable energies (80 %) used to
produce energy.
In terms of sales, our locations in North America
produced fewer emissions, with a total of 52 metric tons of CO 2 per € million in sales than the year
before (55 metric tons of CO 2 per € million insales). At 37 metric tons of CO 2 per € million insales (previous year: 31 metric tons of CO 2 per€ million in sales), the proportion at our Asian locations rose significantly, while Europe remainedat the same level as the previous year (27 metrictons of CO 2 per € million in sales). While the values for Asia and Europe were largely the result ofhigh regional sales, the values for South America
reflect the high proportion of hydro power in theelectricity mix. The corporate group emitted
30 metric tons of CO 2 per € million in sales (previous year: 32 metric tons of CO 2 per € million insales) during the reporting period.

Regional Breakdown of CO2 Emissions 2012/13
By type
Europe 39 %Natural gas
24 %North America 25 %Naturalgas
26 %Electricity
74 %Longdistanceheating
17 %Heating oil
5%
LPG
2%
Electricity
52 %Asia 26 %Diesel3%South America 10 %Diesel7%
LPG
12 %Electricity
81 %Heating oil
1%Electricity
90 %Natural gas
6%

Voith Sustainability Report 2013 I 21

Responsibility for the Environment

Detailed
information
Page 53ff.

We record our CO 2 emissions by location in our
database. If no other information is available, we
use the emission values of the electricity provider
or the country. I
Emissions from Transport
A not insignificant proportion of emissions at Voith
as an international corporation come from the transport of goods and from business travel.
At 37,629 metric tons (previous year: 37,240 metric tons),transport-related CO 2 emissions are atabout the same level as last year.
During the reporting period, 31,789 metric tons
(previous year: 33,988 metric tons) of CO 2 were
emitted as a result of business trips. The largest
drivers were cars, at 18,020 metric tons (previous
year: 17,965 metric tons), and long-haul flights, at
13,220 metric tons, a decrease of 2,085 comparedto the previous year. Voith avoids business travel
where this is possible and reasonable. Video andteleconferences are increasingly being used at our
global organization in order to save on travel expenses and allow for coordination at short notice.
Voith tracks its greenhouse gas emissions centrally and calculates them using the formula emission factor multiplied by distance in kilometers. We
calculate the fuel consumption of our company
cars in German-speaking countries using fuel cards.
In other regions, we record fuel consumption of theindividual sites in our sustainability database.
Practical Examples
In fiscal year 2012/13, we implemented the following activities:• By installing ventilation systems with heat recovery at two locations, we reduced our annual energy consumption: by 425,000 kWh in Sonthofen
and by 385,000 kWh in Frankenmarkt.

22 I Voith Sustainability Report 2013

By turning off the heating system during the summer months, Voith will save 460,000 kWh at its
Heidenheim location in the future.
• By installing LED lighting in workshops at theGerman locations Heidenheim, Crailsheim, andRutesheim, we were able to save 680,000 kWh
in electricity annually. The conversion of factory lighting to metal-vapor lamps will save the
Wimpassing location 450,000 kWh in electricity annually.
• The optimization of factory lighting at the Högsjö
location led to a reduction in heat energy consumption of 185,000 kWh per year.
• A pilot project in Heidenheim revealed opportunities for saving energy by turning off machine tools
and components when they are not being used.
By conducting an energy-value-stream analysis,
we calculated energy savings potential of around
130,000 kWh for two portal milling machines. In
addition, we conducted workshops on the energy efficiency of machine tools at the German locations Heidenheim, St. Pölten, Crailsheim andGarching.
• In order to avoid losses of compressed air, we initiated various measures at the Heidenheim location: by doing so, we save around 253,000 kWhannually by repairing leaks and making employees aware of the issue.
• During the reporting period, we conducted energy saving workshops and inspections at our nineservice locations in Germany. In the US, we arepreparing an energy plan for the yarn production
location in Summerville.
• As part of a pilot project, we put three electriccars into operation at the Schweinfurt location in
April 2013, which commute between the Voith location and a customer branch. With this project,
we are seeking a practical response to the question of whether electric cars offer an alternative to
traditional vehicles. One Group Division has offered gas and hybrid vehicles in addition to diesel ­models since the beginning of 2013.
•

WasteWe reduced our volume of waste by 4.1 % to8.63 metric tons per € million in sales, and thisachieved an initial milestone. In the reporting year,
Voith produced a total of 49,436 metric tons (previous year: 51,505 metric tons) of waste internallywithout external waste collection for third parties.
Of this, about 70 % (previous year: 72 %) was comprised of non-hazardous waste and 30 % (previous
year: 28 %) of hazardous waste. Compared to theprevious year, this represents a reduction (absolute) of 2,481 metric tons of nonhazardous waste
and an increase of 412 metric tons of hazardous
waste. The specific waste volume amounted to
8.63 metric tons (previous year: 9.00 metric tons)
per € million in sales. This corresponds to an improvement over the previous year of 4.1 %.
Similar to production-related energy consumption, the largest waste volumes occur in Europe,at 52 %, followed by South America, at 27 %. Asia
and North America are responsible for 13 % and
8 % of our waste volume, respectively.

The high waste volumes in Europe are due to thelarge number of mechanical engineering locations,which involve a lot of metal processing. In all regions except for South America, metals represent
one of the largest waste products. The volume ofwaste in South America is mainly caused by thecasting-sand waste from the foundry in São Paulo(Brazil).
Wood, paper, and cardboard waste makes up alarge proportion in all regions. This is largely due
to packaging and transport security of individual components. The waste produced by Voith isdisposed of by an external waste disposal and recycling company. We do not transport any waste.
We are continuously working on using resources
at our locations more efficiently and recycling them.
During the reporting period, Voith purchased about
173,000 metric tons (previous year: 213,000 metric tons) of material from suppliers, which represented about 33 % of total operating costs. The
material that was purchased was comprised as

Regional Breakdown of Waste 2012/13
By type
Europe 52 %North America 8 %Polymers
and cover
2%

Other
30 %

Polymers and
cover
26 %

Paper,
cardboard,
and wood
13 %

Metal
31 %

Metal
51 %

Other
28 %
Paper,
cardboard,
and wood
19 %Asia 13 %
Other
15 %

South America 27 %Metal
3%Paper,
cardboard,
and wood
16 %

Other
43 %
Foundry sand38 %Polymers
and cover
12 %
Metal
58 %

Foundry sand
11%
Paper,
cardboard,
and wood
4%

Voith Sustainability Report 2013 I 23

Responsibility for the Environment

Waste
Specific value in t/€ million in sales
10.54

9.00

8.63

Target value 2017/18

6.70

In t
58,98551,505

Asia

49,436South America

13 %North America

27 %
8%

Europe52 %2010/112011/122012/13

follows: 55 % (previous year: 65 %) semifinishedproducts, 32 % (previous year: 24 %) raw materials,
9 % (previous year: 8 %) packaging, and 4 % (previous year: 3 %) auxiliary materials.
In the reporting period, we used around 44 % (previous year: 48 %) recycling materials. The proportion for auxiliary materials was 46 % (previous year:49 %), for raw materials it was 41 % (previous year:
48 %), semifinished products 42 % (previous year:
45 %) and packaging 74 % (previous year: 75 %).
We control our current use of materials and raw
materials Group-wide. If measurements are notavailable, we work with conversions using average
weight per euro of purchased material.
Practical Examples
At numerous Voith locations, specific solutions
for local challenges in the waste area are developed. For example, we now recycle used coolant emulsions using vacuum distillation at oursite in Sonthofen. This results in a reduction ofwaste volume of around 10 %, and the distilled•

24 I Voith Sustainability Report 2013

water can be reused. As a result, we save around
190 metric tons of waste annually.
• By reusing old wood to build new packaging wesave 264 metric tons of wood at our São Paulolocation annually.
• In order to make employees aware of the issue,
we started a Group-wide campaign called Environment, Health & Safety (EHS) on topics suchas waste reduction.
Water and Wastewater
At 1,351,901 m³, Voith used around 20 % lessfreshwater in the reporting period than in the previous year (1,682,703 m³). Per € thousand in sales,
this corresponds to 0.24 m³: Thus, we have already reached our goal for fiscal year 2017/18;
now we must maintain this in coming years.
The regional breakdown is similar to the one forenergy consumption: 59 % for Europe, 23 % forAmerica, and 18 % for Asia. In Europe, freshwater
is used for cooling, operating pilot paper machines,
and for pilot equipment for water turbines. In Asia,
the production of paper machine covers represents a significant driver. In South America, water
is mainly used for cooling at the foundry in São
Paulo. In North America, our yarn and press-fabricproduction locations use large amounts of water.
Compared to the previous year, consumption of
surface water fell by 5,583 m3, groundwater by
249,491 m3, and water from public utilities by
99,412 m3. Rainwater and geothermal water are
not included in the figures.
Tap water consumption in Europe and South America are about 25 % each. At the same time, approximately 56 % and 77 % of water needs in theregions are covered by groundwater and surface
water, respectively. By contrast, tap water consumption in Asia and North America is closer to
100 %. Of the water used, 47 % (previous year:
43 %) came from public utilities. Groundwater was
42 % (previous year: 48 %), of which 49 % was usedFreshwater Consumption
Specific value in m3/€ thousand in sales
0.29

0.29

Target value 2017/18

0.24

0.27

In thousand m3
1,625

1,683
1,352

Asia

18 %

South America
North America

12 %
11 %

Europe59 %2010/112011/122012/13at the Heidenheim location (for pilot paper machines, cooling, and drinking water), 21 % at São
Paulo (for cooling in the foundry and trial equipment), and 20 % in Garching (cooling water). Surface water accounted for 11 % (previous year: 9 %),of which 80 % (previous year: 64 %) was used as
coolant from an adjacent lake for the factory in
Högsjö and 19 % (previous year: 34 %) for testing
purposes in Heidenheim. I

Detailed
information
Page 57ff.

Practical Examples
The reasons for the decrease in freshwater consumption compared to the previous year are to befound mainly at three locations:
At the Heidenheim location, there were lower water needs at the Paper Technology Center.
• At the Garching location, we reduced the cooling water requirements in the hardening plant by
100,000 m³ per year. At the São Paulo location,
we replaced the freshwater used for cooling purposes in the foundry with recycled water from the•Regional Breakdown of Freshwater Needs 2012/13
By type
Europe 59 %Groundwater
56 %North America 11 %Surface
water
1%

Mains
water
99 %

Mains
water
26 %
Surfacewater
18 %Asia 18 %South America 12 %Groundwater
77 %

Mains
water
23 %

Groundwater
5%

Mains
water
95 %

Voith Sustainability Report 2013 I 25

Responsibility for the Environment

internal Voith purification plant. We will thus save
25,000 m³ of freshwater annually in the future.
• At the Heidenheim location, we identified an open
magnet valve during a water consumption inspection that caused an annual water loss of
10,000 m³.
The volume of waste water during the reporting period was 1,198,512 m3 (previous year: 1,461,091 m3).
Some 33 % (previous year: 50 %) was discharged
into rivers, lakes, or the soil and 56 % (previous
year: 50 %) into the sewage system.

In order to provide more detailed information about
the effects of the wastewater we discharge, wehave recorded key hazardous substances. During
the reporting period, the biochemical oxygen demand (BOD) was 9 metric tons, and the chemical
oxygen demand (COD) was 31 metric tons. The
overall suspended matter content of the water was
11 metric tons, heavy metals less than one metricton, nitrogen one metric ton, and phosphorus lessthan one metric ton.

2.3 Operational Environmental Protection
The aim of operational environmental protection is
to minimize all environmentally harmful effects resulting from operations. The strategic and operational control of the implementation of and compliance with environmental provisions is an importanttask.
According to the Group environmental policy, eachlocation has to have an environmental representative who supports the management board andmanagers in the implementation of guidelines andstandards. Relevant topics include, for example,
pollution and water pollution control, handlingwaste, and hazardous materials and goods as well
as reducing and avoiding environmental incidents.
Furthermore, the environmental officer provides
advice on environmental questions for new construction and renovations, approval processes,
etc. and conducts regular operational inspections
and audits.
The coordination and standardization of operational environmental protection is carried out by
the Eco Standard Team, which includes members
from all Group Divisions and regions in addition to

26 I Voith Sustainability Report 2013

the central Corporate Environment department. In
addition to location-related issues, questions regarding hazardous materials management (REACH
ordinance, TSCA, etc.), training, and management
systems are coordinated here.
The key duties of operational environmental protection include the assessment and internal communication of potential environmental risks, their likelihood of occurring, and damage amounts. We record all environmental incidents Group-wide
according to standardized criteria.
During the reporting period, Voith implemented aGroup-wide reporting system for recording incidents as planned. A reporting process was established in the Group environmental policy that indicates the people who must be informed for different
types of incidents, the reporting processes, andreporting templates. The reports are submitted centrally to the central Corporate Environment function
and are also evaluated for local analysis at the site.
Through the end of fiscal year 2012/13, our Eco
Compliance Concept has been rolled out

worldwide in 19 locations (corresponding to 50 %of sales) via training and local support. We will involve a total of 46 locations by fiscal year 2013/14.
The implementation of the Group-wide hazardous
materials management process, which was started
last year, has been continued successfully (workflow programming, merger of local hazardous materials databases, IT interfaces to ERP systems).
We expect to complete the project by the end of
fiscal year 2013/14.
Pollutant Emissions
Production-related air pollutants at Voith are mainly VOCs and dust. They accumulate directly during
production processes. At 104 metric tons, NMVOCs make up the largest proportion of production-related air pollutants (mainly solvents). Dustemissions represent the second-largest fraction
at 8 metric tons per year. They are almost completely caused by our foundry in São Paulo. Thanks
to the installation of a new dust removal system,
dust emissions have been reduced by one metricton compared to the previous year, despite increased production. I
Air pollutants from production-related energy consumption are mainly SOx (924 metric tons), VOCs
(461 metric tons, of which 31 metric tons are NMVOCs), and NOx (420 metric tons). Significant
causes include the generation of coal energy andthe burning of oil and natural gas. Dust emissions
during the reporting period were 38 metric tons.
Significant dust pollutants emitted as a result of
business travel are VOCs (210 metric tons, of which
49 metric tons are NM-VOCs), NOx (152 metrictons), and SOx (89 metric tons). Six metric tons ofdust were emitted.
Air pollutants from the transport of goods are mainly NOx (244 metric tons), VOCs (132 metric tons,of which 31 metric tons are NM-VOCs), and SOx(99 metric tons). At 6 metric tons, dust emissions
are comparable in size to dust emissions from business travel.
Ozone-depleting substances are created at Voith
mainly during production processes. We have identified cooling agents, which are mainly used in air
conditioners and refrigerators, as the sources of
CFCs and HCFCs.
Noise Emissions
Three significant noise emissions were reported
during the reporting period. There were two noise
complaints from the surrounding neighborhood atthe Heidenheim location: one was related to snow
removal work and the other to nighttime noise that
could not be identified, despite an intensive review.
At the Garching location, there was a complaint
about nighttime noise, which was traced to a damaged vacuum evaporator. This damage was immediately repaired.

PollutantemissionsPage 55

Biodiversity
Voith sites encompassed a total area of 3.8 km2
in fiscal year 2012/13. Of this, 52 % were sealed.
Several of our production sites are directly next
to or within water conservation areas, some ofwhich have a high level of biodiversity. Our sites in
Heidenheim and Mönchengladbach are both inside water conservation areas, and Manchester isadjacent to a Natura 2000 conservation area, while
Lier is adjacent to two nature conservation areas.
São Paulo is both next to and in a nature conservation area for maintaining biodiversity and forprotecting groundwater. Additional sites that are
in areas with threatened biodiversity are Ipoh andKarawang. Through safety measures and environmental management, Voith ensures the protectionof water quality and contributes to the preservationof biodiversity at all sites.

Voith Sustainability Report 2013 I 27

28 I Voith Sustainability Report 2013

Latin America is one of Voith’s strategically important markets. We adapt
to local market needs and are highly diversified: from hydro power topaper machines and industry services to drive technologies. In 2013, we
continued to expand our capacities and open a new facility in São Paulofor the production of hydrodynamic variable speed planetary gears. The
Vorecons control the speed of electronic compressors. They are robust
and reliable, and they are therefore particularly well suited for use at oilfields in the rough Atlantic along the Brazilian coast.

03

Product
Responsibility
Voith stands for quality, safety, and long-term
customer relationships. With our products andservices, we want to create environmental andeconomic added value for our customers. We
therefore focus on energy and resource efficiency
in both the manufacturing and use phases.

Voith Sustainability Report 2013 I 29

Product responsibility

3.1 Management ApproachWith its diversified portfolio, Voith serves five global
markets: Energy, Oil & Gas, Paper, Raw Materials, and Transport & Automotive. In doing so, wedevelop solutions for our customers and assume
responsibility for our products and services. We
pursue our strategic approach using three levers:
We ensure quality and safety: Voith stands for highquality and safe products, the quality of which weensure via risk and quality management.
We maintain a dialog with our customers: we havetrusted and long-term business relationships withmany of our customers. Providing them with advice on the safe use of our products in a mannerthat conserves resources and talking with them
about their expectations are part of a fixed elementof our service portfolio.
We minimize environmental effects: our products
and services are intended to contribute to the protection of resources and the environment – acrossthe entire value chain. Our goal is to create continuously more efficient product generations.
In fiscal year 2012/13, we adjusted our researchand development (R&D) priorities as a result of­changes in the paper market, particularly in thegraphic paper market. We assessed and refocused our development portfolio. During the reporting period, we invested € 242 million in our
R&D. Measured as a percentage of Group sales,
the R&D ratio was 4.2 % (previous year: 4.7 %).

30 I Voith Sustainability Report 2013

3.2 Product Safety and Quality, Customer Dialog
Quality and Safety
A key quality characteristic of our products is safety. Voith has a Group-wide risk and quality management process. Goals, processes, and methods
are defined for the development and manufacturing phase. The Group Divisions are responsible for
their implementation. The quality departments
ensure compliance with the processes. We haveset out the guidelines for dealing with technicalrisks and quality in a Group Directive. The Group
Divisions and their companies define and supplement this directive – for example, with safety regulations for the entire life cycle of a product.
We offer our customers training courses where
they learn to get familiar with our systems, drives,and units correctly. This allows them to achieve
the best-possible consumption levels and operating costs across the product life cycle. We havedeveloped product-specific training courses formany of our products. For example, we offer training courses on how to drive using retarders andgo by ship using Voith Schneider propellers. In
addition, we advise paper producers how to reduce the specific use of energy and freshwater inproduction and increase the percentage of recycled fiber used.
Tests and Standards
The Management System for Technical Risks andQuality (TRQM) and the Group Division-specificstandards set out methods and tools to guarantee the quality of our products and that they meetthe international quality management standard
ISO 9001. TRQM governs how we mark our products, whether according to legal requirements or
according to customer requirements. Operating
instructions provide information on how to handle
products safely in terms of technology and theenvironment. Consequently, we calculate, analyze,
and simulate various operating states during product development: our research and development
centers make computer-based calculations andperform model tests regarding the performanceor safety of the products.
Voith products are subject to stringent acceptancecriteria. Checklists help ensure compliance withthese requirements as prescribed. The TRQM system also outlines procedures for making decisions
that entail risks. We train employees on the requirements and standards. All employees involved in
the processes can access the information relevant
for them in internal databases or obtain information
via internal communication channels.
Customer Dialog
Resource-efficient products play an important rolefor our customers – not only because of rising
prices for raw materials and energy but also because of increasing legal requirements. To better
understand the needs of our customers, we engage them in dialog in a wide variety of formats. The
satisfaction of our customers is a key element ofwhat we do. We place great emphasis on maintaining long-term partnerships. We are proud to haveworked with many customers for generations.
We use various methods and tools for objectively
assessing and improving the service we provide to
our customers. For example, we conduct surveys
on customer satisfaction in some Group Divisions:this includes conducting personal meetings, telephone interviews, and e-mail correspondence. The
processes are part of our integrated system of risk
and quality management; the effectiveness is reviewed by external experts as part of the recertification in accordance with ISO 9001.

Voith Sustainability Report 2013 I 31

Product responsibility

3.3 Products and Services that Conserve Resources and the Environment
Environmental Standards and Tools
Voith products are largely components that havedifferent impacts on the energy balance of customers’ overall systems. Voith therefore uses different
tools for preparing detailed assessments of theenergy and resource efficiency of its products –both for the production phase and when they areused by customers. We abide by the relevant standards (ISO 9001, ISO 14001, OHSAS), according
to which we are certified, and we also supplement
these standards with internal methods.
Our Eco Innovation Team supports the crossdivisional environmental innovation process. The
team is comprised, among others, of employees
from our central Eco Technologies function the
R&D departments of our Group Divisions, andrepresentatives from product management andcorporate strategy.
In cooperation with other companies, universities,
and research institutions, Eco Technologies identifies economic and environmental market trends
and determines the status and the cost effectiveness of the technologies available on the market
for Voith. Through the use of resource-efficienttechnologies – for example, through identified recycling processes – savings can be achieved in the
production process. In addition, Eco Technologies
assesses risks that might arise for the Group fromthe use of certain materials and develops measures for effectively meeting these risks.
One tool for measuring environmental effects is theLife Cycle Assessment (LCA). For selected products we have conducted LCAs in accordance with
ISO 14040 and 14044 for some years.

32 I Voith Sustainability Report 2013

During the reporting period, we carried out thefollowing activities:• We conducted an LCA for our paper machines
as well as various components from the integrated EcoMill concept. We also published an LCA
for a pumped storage station. In addition to calculations regarding environmental impacts, thestudy demonstrates the energy payback ratio.
• We collaborated with a customer to develop andcarry out a simulation program for automatedlarge-scale trials in paper production. The useof the simulation program reduced the numberof large-scale trials and thus contributed to the
reduction of resources used during development.
We work according to the principle of offering evermore energy efficient and environmentally soundproduct generations. We optimize the production
processes of our customers through our services
and reduce not only their costs but also the environmental impact. For the further development ofour portfolio, we focus on current developments
in our five key markets. In addition, we are guided
by the needs of our customers as well as global
megatrends.
During the reporting period, we implemented thefollowing projects e.g.:• In the area of hydro power, we worked more intensively on powerful turbines and generators.
An important milestone on the path to the one
gigawatt machine is the start-up of a generatorturbine unit with a capacity of 784 megawatts
for the Xiluodu hydro power station (on the Jinsha River in China). It is the most powerful unit
ever built by Voith.
• Voith labels the latest technical solutions for sustainable energy production from hydro powerwith the Voith HyEco seal. Depending on the usage profile, the HyEco products, systems, andservices from Voith allow for greater efficiency,
lower utilization of resources, and the greatest
possible compatibility with nature.
• In the area of paper manufacturing, Voith brought
to market a patented sealing strip system with integrated lubrication that significantly reduces theneed for lubricating water and operating power. Tests have shown that with the system up to
87 % less lubricant and 9 % less energy is used.
• In order to sharply lower the energy needed toremove ink from paper fibers, Voith developed
the LowEnergyFlotation (LEF) technology. The
heart of the LEF is new injectors. Together withmodified pumps, these injectors allow for energy
savings in the flotation of up to 50 % compared
to existing technology.
• Voith launched its new modular Vorecon withdual torque converters on the market in 2013.
This achieves higher efficiency through a broader operating area for pumps and compressors.
This increases the level of efficiency and reduces the energy needed to operate, for example,
a compressor station by 2 to 10 %. In October
2013, Voith also opened a factory in São Paulo,in which Vorecons for the South American market will be produced in the future.
• The first of a total of 40 “Artic” low-floor trams installed with Voith traction equipment have beenrunning in Helsinki since June 2013. Braking
heat recuperation allows more efficient operation. The intelligent braking energy management
was designed in such a way that converted energy generated during braking is fed back into the overhead contact wire. Should the overhead network be unable to absorb power, thebraking energy is stored in specially designed

heat exchangers and used for the heating system as needed.
• In the area of innovations, Voith established thedevelopment center “Electric Drives & Mechatronic Systems”, which will develop new strategic products until they are ready for the market. Virtual images of new products are shown in“hardware-in-the-loop” test environments, whichmake the development process more efficient.
Another task of the center is to further develop
existing products by integrating sensor technology, actuators, and electric drives.
• In Brazil, we were recognized with an award
from Daimler Trucks for providing advice andservice to reduce environmental impacts during
manufacturing.
• Voith optimized the diesel rail cars for a Brazilian rail engineering company and reduced maintenance costs.
• Voith implemented maintenance concepts fortrucks that improved the life cycle of the vehicles
and thus reduced their environmental impact
and costs. I

Annual Report
Page 101 ff.

Voith Sustainability Report 2013 I 33

34 I Voith Sustainability Report 2013

We focus on the health and safety of our employees. For this reason,
we have regionally adapted measures around the world. At our São Paulolocation, for example, we improved our internal medical care overthe past year. The medical emergency service is now also available over
the weekend. To ensure that those of our employees who are on businesstrips and at construction sites are protected, we prepare our project
teams intensively for their assignments. Voith also maintains a crisis
organization for quick support in emergency situations.

04	Responsibility
for Employees
We want to offer our employees an attractive
working environment with individual development
opportunities. To this end, we take account of theirindividual life circumstances and provide long-term,
challenging employment relationships and diverse
career paths. In order to meet the requirements of the
global labor markets and the further internationalizationof Voith, we have realigned our HR department.

Voith Sustainability Report 2013 I 35

Responsibility for Employees

4.1 Management Approach
The realignment of the Human Resources (HR) department will be continued in fiscal year 2012/13 aspart of the Voith initiative “Excellence@Voith”. The
strategic goals of this years-long transformation
process are to further develop personnel work at
Voith qualitatively and to structure internal processes in a leaner and more efficient manner. In
order to achieve this goal, we have defined two
guiding criteria for our measures. First, all of ouractivities help ensure that the required employeeswith the necessary qualifications can be deployedat the right time in all markets (availability). Second,
we implement measures that qualify and motivate
our employees throughout their career at Voith inan optimal manner (effectiveness). All HR activities
that are carried out contribute to the achievementof these two goals and are also related to one ofthree main thematic focuses:• Recruiting, training, and further education,• Occupational health and safety,• Diversity and inclusion.
Code of Conduct
http://voith.com/en/
group/compliance187.html

The Voith Code of Conduct and our Voith values
form the basis of our actions, both within the company and toward customers. Working at Voith ischaracterized by a value-oriented corporate culture. In addition, we firmly believe in the concept oflifelong learning and support our employees in theirfurther professional development. In order to allow
our employees to better balance their professional
challenges with their private concerns, we offer afamily-friendly work model. The equal status of all
employees, attention to human rights, and taking
action against discrimination are mandatory guiding principles for our company. I

36 I Voith Sustainability Report 2013

Standards, and Tools
At the operational level, we started the Groupwide review of structures within HR in fiscal year
2012/13. We continuously develop standardized
processes, thus improving the cooperation between the HR and business units. We implement
various methods, tools, and IT-based processes inorder to manage our HR department. Since fiscal
year 2011/12, we have been building our staff information system, the “People Excellence Platform”(pep), an integrated talent management IT systemthat maps our organizational structure globally andcontains qualification and development information
about our employees. Using the data stored in thesystem, we can create greater transparency about
reporting lines and more precisely determine thestatus quo and need for action for Group Divisions,regions, and locations. For example, in the future
we will use the system to guide the performance
management of our employees by centrally documenting employee appraisals and agreements on
objectives. We worked on the uniform entry of themaster data of all employees during the reporting
period; completion of the project is planned for the
beginning of 2014.
Voith as an Employer
In fiscal year 2012/13, Voith employed 47,111 (previous year: 46,469) people. Some 65 % of our employees work in Europe, 25 % in America, 9.6 %in Asia, and 0.3 % in Africa. As in the previous
year, women represent 21.5 % of our workforce.
The average number of temporary employment
contracts rose during the reporting period by
3.4 %, from 6,047 to 6,378 employees. Acrossthe Group, around € 1,753 million (previous year:€ 1,701 million) was spent for wages and salaries,and € 401.7 million (previous year: € 394.9 million)
was spent on social security contributions, retirement pensions, and assistance.
Long-term Cooperation
Voith focuses on long-term employment relationships and seeks to offer its employees an attractive,
challenging workplace. To this end, we promotea culture of lifelong learning, and we train young
people who then have a good chance of being employed by us. Furthermore, we place great emphasis on the compatibility of career and family as well
as workplace safety, and we offer health services.
The average length of service Group-wide remained stable at 8.3 years (previous year: 8.2
years). Employees at Voith locations in Europe
worked an average of 9.1 years and in North America 7.6 years. In fast-growing markets, such as
Brazil and China, we have hired many employees
over the last few years. The ratio is therefore correspondingly low: Voith employees in Asia worked
an average of 5.4 years for our company and inSouth America 5.6 years.

Performance-based Remuneration
Voith provides its employees with performancebased remuneration in line with the market, irrespective of gender, and based on specialist qualifications and performance. Remuneration andbenefits vary by region. At our German sites, thelevel of wages and salaries is generally regulated
by collective bargaining. At our international sites,
we ensure that the locally valid minimum wage iscomplied with and that this ensures the livelihoodof our employees.
Exchange between Management and Staff
Voith recognizes the right of its employees aroundthe world to form unions. In Germany, 87 % of ouremployees were under collective bargaining agreements during the reporting period; globally, thisfigure was 74 %. Exchanges between Group management, employees, and local HR departments
take place with the involvement of local employee
representatives. Within the individual countries, therelationships are structured in accordance withnational labor contracts and collective bargaining
agreements. Fundamental changes are communicated to employees at all our sites in a timely
manner by Group Board of Management or local
management.

The labor turnover rate for the Group during the reporting period was 15.9 % (previous year: 15.6 %).
Of this, 5.7 % of our employees left the company attheir own initiative. In machine and plant engineering, the rate was 7.2 %, and it was 26.1 % in theservice business.

Voith Sustainability Report 2013 I 37

Responsibility for Employees

4.2 Recruiting, Training, and Further Education
Voith sees itself as a responsible employer that
supports and challenges its employees. We want
to attract qualified employees and retain our staff
over the long term. For this reason, we support
our employees in their continuous development.
Our staff development measures are tailored tothe challenges in each region, department, andmanagement level. In the future, we will manage
all relevant Voith HR processes via our “People
Excellence Platform” (pep), from attracting anddeveloping our employees to planning the next
generation of talent. Using another tool, the “Talent Conference”, we will determine what ourneeds are for the next generation of highly qualified management and structure development
measures and manage the hiring process in theindividual regions. In fiscal year 2012/13, we increased our HR marketing via social media channels. For example, potential employees can now
apply for jobs at Voith directly via their job profile
in social networks.
Recruiting
Recruiting specialists and managers is one of
the most important duties of the HR department.
Thanks to cooperation agreements and international HR marketing measures at universities, we
speak directly with students and provide them withinsight into our company as a potential employer. In addition, we award stipends and promotecompetitions in the regions in which we are active.
Since fiscal year 2012/13, we have been a supporting member of the largest student engineering initiative in Germany, the “Bonding Student
Initiative e.V.”. In America and China, we have held

38 I Voith Sustainability Report 2013conferences on attracting the next generation ofmanagers.
Leadership Concept
As a responsible employer, we ensure that managers and employees hold regular exchanges onwork duties, goals, and individual performance.
Our Leadership Concept stipulates that managers
have an annual meeting with each employee. The
meeting focuses on the work environment, duties,
and collaboration. During the meeting, objectives
and development opportunities as well as the needfor training and the required measures are agreed.
During the reporting period, 88 % (previous year:87 %) of employees in machine and plant engineering took part in a meeting. This will be tracked
across Voith as a whole with the introduction of
the People Excellence Platform.
Training
We train young people in more than 40 commercial, technical, and industrial professions, and weusually hire them after the completion of their vocational training. During the reporting period, we
employed 1,197 (previous year: 1,206) apprentices, almost all of whom we were able to offer
employment relationships following completion of
their training. Of our 940 apprentices in Germany,around 270 work at the site in Heidenheim. During
the reporting period, we held our “Training Concept 2020” twice with the goal of providing interdisciplinary learning and practical experiences. In
this context, we largely completed the construction of the new training center with interdisciplinary
practice workshops. It is expected to be opened inspring 2014. Spring 2014 will also see the openingof the new training center in Kunshan (China), towhich the city of Kunshan contributed € 1.8 million. As part of the “Global Graduate Program”,
we offer trainees with engineering and businessadministration qualifications – whom we recruitaround the world – a challenging introduction to
our company: participants combine practical experience with training, are coached by a mentor,
and work in various Group Divisions and regions.

(previous year: 4,980) at our German sites availed
themselves of our further education offerings, completing more than 127,379 further education hours(previous year: 127,491 hours).

Continuing and Further Education
Voith offers its employees and managers access tointernal and external further education and qualification measures. The opportunities include work,
health and environmental protection, technology,
IT, quality, language, business, and leadership andcharacter.
As an international company, we value a Groupwide, uniform understanding of our corporate andmanagement culture. This is particularly relevant
for our managers. They go through a uniform development program that we intensified during thereporting period. The program conveys the principles of our leadership concept as well as the corresponding management knowledge and skills. Managers at the top management level also attend thetraining program at our Voith Academy. Managers
from the Procurement, Finance, and Human Resources areas as well as project managers receive
training at the Voith Management School. Voith
training sessions, which offer a broad range of further education, are available to all other employees.
In fiscal year 2012/13, a total of 3,915 employees

Voith Sustainability Report 2013 I 39

Responsibility for Employees

4.3 Occupational Health and Safety Management
Health and workplace safety are extremely important at Voith. We seek to avoid accidents and workrelated illnesses as much as possible by structuring
workplaces in a responsible manner.
Ensuring Work Safety throughout the Group
Provisions on occupational health and safety havebeen firmly established in the Group’s objectives
since 2009. The Corporate Health and Safety department, which reports to the central Corporate
Sustainability function, is responsible for the further development of standards and measures. The
Group directive on workplace safety establishedmandatory minimum requirements and standards
for the Group. We have defined our understanding of workplace safety in seven guiding principles.
During the reporting period, another four of a
total of 28 Safety Group Directives went into effect covering the following topics: assessing risks,
corporate safety auditing, preventing falls, and fireand explosion safety. The directives define safety
standards that are valid Group-wide. We recordand manage the relevant information via our management system in accordance with international
standards, such as OHSAS 18001, according towhich many of our sites are certified. The core elements of the system include the documentationof all safety-related incidents, a special internal
auditing system, and annual occupational safety
programs. In addition, potential improvements toworkplace safety in selected locations are determined using the Corporate Safety Audit system.

40 I Voith Sustainability Report 2013

Workplace Safety as a Management Duty
Managers who are responsible for staff have aparticular duty to ensure workplace safety. Using
agreements on objectives, we require that they support and comply with guidelines. They receive thorough information, awareness training, and training
in this regard. Managers, in turn, are obligated totrain their staff and actively communicate current
developments. During the reporting period, nearly
all operational managers and 75 % of administrative managers completed training on the topic ofworkplace safety. All of our employees are regularly
informed about and trained in workplace safety. We
also involve our service provider through the workplace safety directive “Coordination of visitors andcontractors”.
Documenting and Avoiding Accidents
Voith reduced the frequency of workplace accidents to 2.3 accidents (previous year: 2.8) per
million hours worked during the reporting period.
This ratio corresponds to 181 reportable accidents.
At Voith, all accidents are immediately recorded
and report to the direct supervisor and published
online. In serious cases, Group management must
be informed directly within 24 hours. Since fiscal
year 2012/13, even nonreportable incidents, accidents, and near accidents have also been communicated. Each accident is reviewed and documented by an investigation team that consists of
those involved, supervisors, and safety experts.

Frequency Rate

Severity Rate

Specific value in accidents
per 1 million working hours

Specific value in hours not worked
per 1 million working hours

4.7

425.1
2.8

2.3
2.0

Target value 2017/18

Absolute value

350.0

Target value 2017/18

Absolute value
304

33,363208
181

2010/112011/122012/13

Health Management
The health of our employees is very important tous. Our employees should be able to enter retirement in good shape at the end of their professional
lives. Voith has established four areas of activity forGroup-wide health management:• Safe and demographically appropriate
working environment• Health promotion and prevention of illness• Support in case of illness and stress• Corporate culture and leadership
In the “Safe and demographically appropriate working environment” field of activity, we identified noise,ergonomics, and skin diseases as key systematic
areas of responsibility in fiscal year 2013/14 anddeveloped initial projects. In the “Health promotion

n.s.

n.s.

2010/112011/122012/13and prevention of illness” field of activity, we are
implementing location-specific projects to promote awareness of healthy lifestyles. These include,
among other things, common illnesses such as
cardiovascular diseases, diabetes mellitus, infectious diseases, and psychological illnesses. In
the “Support in cases of illness and stress” field ofactivity, we have developed a guideline for systematic occupational reintegration management of ill
employees. At the individual sites, working groups
have been formed, which, among other things, aretasked with developing and implementing preventive steps for avoiding stress and illnesses. During
the reporting period, we started building a crosssite network of staff doctors in Germany in order tosupport our main focuses through regular specialist
exchanges.

Voith Sustainability Report 2013 I 41

Responsibility for Employees

4.4 Diversity & Inclusion and Family-Friendly Policies
Voith seeks to create an attractive work environment for its employees. To this end, we havestrongly integrated diversity and inclusion in our
corporate culture and promote work models that
support the compatibility of family and career.
Diversity and Inclusion
The people who work at Voith are in various stagesof life, from more than 100 countries, and haveindividual experiences. This diversity enriches our
corporate culture and contributes to the success of
our company. Innovation arises from the interplayof different skills, experiences, and perspectives.
Voith recognizes the equality of every individual
and promotes an appreciation for all colleagues
and business partners. We do not tolerate any
discrimination on the basis of gender, culture, age,belief, or other personal characteristics.

average at 27 %. We adhere to the principle that
we fill management positions in our regions withlocal staff when possible.
Our Group-wide Diversity & Inclusion Program got
underway in fiscal year 2012/13. The first goal ofthis program is to make employees aware of diversity and equal opportunity. To this end, we havedeveloped a “Train-the-Trainer” concept for global
awareness workshops. During the reporting period,
the individual regions developed specific fields ofactivity in which measures will be implemented in
the future. One key cross-regional field of activity
is to increase the proportion of women in management positions. Furthermore, dealing with the various age structures of employees is a crucial topic.

Equal treatment is set out in the Voith Code of Conduct, the implementation of and compliance with
it is monitored at every Group level by the Compliance Committee. During the reporting period, there
were no reported cases of discrimination.

Family and Career
The compatibility of family and career is an important concern for us. For this reason, we are progressively expanding our various working models
and offers. Voith allows for a range of part-timeworking models. Combinations of home office andin-office work are also available.

Voith aims to increase the proportion of women at
the company. In fiscal year 2012/13, 9,125 women(previous year: 8,652) worked at Voith. As in theprevious year, this corresponds to 21.5 % of total employees. The proportion of women in theVoith Senior Management Circle is 7.6 % (previous
year: 4.3 %), with 11 countries represented. The
proportion of our employees in the Group over theage of 50 continues to be higher than the industry

In fiscal year 2012/13, 686 Voith employees (previous year: 517) took advantage of statutory parental
leave, including 351 men. At some of our locationsin Germany, we offer childcare places at various
facilities for the children of employees up to ageten. Our locations in Sonthofen, Heidenheim, andCrailsheim each have their own parent-child workroom, which allows parents to bring their children towork in the event they are unable to find childcare

42 I Voith Sustainability Report 2013

on short notice. The Voith intranet site “Family &Job” provides online information about regional offers on the topics “Children & Job” and “Caring &Job” that help ease the burden on employees incarrying out private tasks.
Since fiscal year 2012/13, Voith has cooperated
with an external consultancy that provides our
employees in Germany with information by phoneand e-mail on the topic of caring and providing
childcare opportunities. Furthermore, we have expanded our family support measures in Germany
by, among other things, arranging au pairs, daynannies, and care services during school holidays.

Voith Sustainability Report 2013 I 43

44 I Voith Sustainability Report 2013

Over the last ten years, Brazil has recorded significant success in its battle
against poverty. However, nearly 20 % of young people have no fixed job.
In order to prepare young people from socially disadvantaged families forthe labor market, the Fundação Voith, which was founded in 2004, started
the “Formare” project. In this program, around 80 Voith employees volunteer
as instructors. Theory is supplemented with practical learning in Voith’sfactories. After ten months, the young people take an exam and are thenwell prepared to start a career.

05

	Responsibility
for Society
As a globally active corporate group and family-owned
company, we want to contribute to positive social
development. We carry out our activities in the areas ofsport, education, social affairs, and culture. In doing so,
we focus on the regions in which we are active.

Voith Sustainability Report 2013 I 45

Responsibility for Society

5.1 Management Approach
Our social engagement is part of our understanding of sustainability. As a company, we want tocontribute to the promotion of the common good.
We achieve a major impact in this regard by funding institutions at our local sites.
The activities are managed via Voith GmbH, theHanns-Voith-Foundation, and the Fundação Voith(Brazil). For 60 years, the Hanns-Voith-Foundation
has supported and implemented social projects,
the funding of which is determined by the Management Board and the Foundation Council. Since
2004, Voith has been involved in Brazil throughthe foundation Fundação Voith, which is fundedby the local subsidiary.
Voith, the Hanns-Voith-Foundation, and the Fundação Voith spent a total of € 1.78 million (previous
year: € 2.51 million) on social engagement in fiscal
year 2012/13. The budget is based on the earnings before taxes (EBT) of the previous year. The
maximum is 1 % of EBT; the minimum is two-thirdsof the funding volume of the previous year. Of the€ 1.78 million spent, € 0.83 million was used for
donations and € 0.95 million for sponsoring measures. At 45.1 %, the largest proportion was spenton sport, followed by 28.5 % on education, 14.9 %on social affairs projects and 11.5 % on culturalprojects. Of this € 1.78 million, € 400,000 was spentby the Hanns-Voith-Foundation and € 430,000 by
the Fundação Voith. Since its founding, the Fundação Voith has donated € 1.9 million. During the reporting period, 9,400 needy children and young
people received support through education andcultural projects.

Funding 2012/13 total €1.78 million
By theme
Culture11.5 %

Social Affairs
14.9 %

Education
28.5 %

Sports45.1 %

We fund projects according to defined, Groupwide criteria: activities funded by us and the organizations carrying them out must be recognized
as being non-profit and operate both internationally and interculturally. Projects must achieve a
broad-based effect, promote the community, or
increase the attractiveness of the region for the local population. Eligibility for funding is ascertainedby our own research and by auditors. Irrespectiveof these rules, Voith provides help in humanitarian
emergencies that demand urgent action.
Our Group Directive “Donations and Sponsoring” defines donations as voluntary contributions
without consideration. With sponsoring, we haveanother goal besides funding: to receive an agreed
consideration. In our Code of Conduct, we undertake to be transparent and lawful. Donations to political parties require the approval of the Corporate
Board of Management or the Shareholders’ Committee. In the reporting year, we made donationsof € 48,000 to four political parties in the German
Federal Parliament.
The Corporate Office coordinates our social engagement activities, while our sponsorship activities are managed by Group Communications.
Individual Group Divisions can launch their own
aid and sponsorship projects. The Corporate
Office provides information annually on the useof funds Group-wide to the Corporate Board ofManagement.

46 I Voith Sustainability Report 2013

5.2 Projects and Activities
Voith has defined the areas of Education, Social
Affairs, Sport, and Culture as the thematic focusesof its social engagement.

Voith has endowed professorships at German universities, such as the one at Stuttgart University incooperation with EnBW Baden-Württemberg AG.

Education
A good education and training forms the basis for
optimal development opportunities in life. That is
why we continue the tradition of Dr. Hanns Voith bysupporting kindergartens, schools, and universities around the world.

Since fiscal year 2011/12, the Hanns-Voith-Foundation has awarded six scholarships each year to
students with excellent performance at the Technical University of Munich (TU) in the civil engineering,
electrical engineering and information technology,
mechatronics and engineering and information
technology, development and design, and mechanical engineering departments. In addition, formany years Voith has participated in presentations
and excursions.

Domestic
At our German locations, we have subsidized the“Academy of the Future” in Heidenheim as partof our talent promotion program for many years.
As in the previous year, we donated € 50,000 to
local kindergartens and schools. In addition, weawarded € 10,000 each to the Association of Independent Waldorf Schools in Heidenheim, theInstitute for Waldorf Pedagogy in Mannheim, theEuropean Business School in Oestrich-Winkel, and
the German Institute for Standardization.
Every year since 1972, we have prepared up to
50 youths with learning difficulties or those who
left school early in a training program at our headquarters in Heidenheim. The success rate for the
integration of these young people is over 80 %. In
addition, Voith is a founding member of the Know­
ledge Factory Company for Germany and participates in projects, such as “KiTec Children DiscoverTechnology” and the mentoring program for young
entrepreneurs. In October 2013, the lighthouseproject “Power4School – Students Discover Energy” began its first practical phase at Voith. The
goal is to introduce students to the topic of energy.

At this year’s anniversary of the Hanns-Voith-Foundation, we awarded the first-ever foundation prize
for student theses. The award, which included a
prize valuated at € 5,000, will be awarded eachyear to excellent student theses in engineering, science, and economics. The prize for new materials
went to two graduates of the TU Munich, whilea master’s degree candidate at the University ofMannheim received the economics prize for his
application of in-memory databases at companies.
The hydropower prize was awarded to a degree
candidate at the University of Karlsruhe for the development of a water-pumping system for the cityof Yogyakarta on the island of Java.
International
Our cooperation with schools and universities
has stood the test in Europe, the US, India, China,
and Brazil as well. Among other things, we support the “Top Technology Program” in Austria,
the “Adopt-a-School” program in the US, and thecooperation between the Escola Estadual Conjunto Habitacional Voith and the Friedrich-von-Voith
School in São Paulo, Brazil.

Voith Sustainability Report 2013 I 47

Responsibility for Society

In the US, we are a member of the Industry Advisory Council (IAC) at York College of Pennsylvania.
In India, we have exchange programs with ISB Hyderabad, Jadhavpur University (Kolkata), and theIndian Institute of Roorkee (Delhi). Our cooperation
partners in China are the Nanjing Forestry University, Shanghai Jiaotong University, Tongji University,
Xi’an Jiaotong University, and Zhejiang University.
As part of these partnerships, scholarships are provided, lecturers sent, and joint projects carried out.
Sport
Voith sponsors professional and amateur sports
and it supports several sports clubs and competitions around the world. We spent € 803,000 on
this in the reporting year. At its headquarters,
Voith supports the professional soccer club 1. FC
Heidenheim by, among other things, sponsoring
the naming rights for the Voith Arena, the fencing center Heidenheimer Sportbund 1846 (HSB),
and the local baseball team. We view the support
for local initiatives as an investment in the qualityof the region for citizens and our employees. In
November, we opened the Voith Sports Center, aspace for more than 20 types of sports activities.
In Brazil, the Fundação Voith supports the sports
education center “Ana Moster” for children from
low-income families as well as the program “Atleta
Solidário” for young people with physical and mental disabilities.
Social Affairs
The aim of our engagement in this area is to improve the living conditions of people around theworld and to promote contact among cultures.
For this reason, since 2003 we have sponsored
two scholarships in Asia and South America in theamount of € 4,500 each for the program “A School
Year Abroad” from the world’s largest charitableprovider of youth exchanges and interculturallearning, AFS Interkulturelle Begegnungen e.V. We
support projects such as the Children Future Organization (CFO) in Nepal. In August, our training
manager from Heidenheim visited the organization

48 I Voith Sustainability Report 2013

in Kathmandu in order to discuss the constructionof a training center for crafts jobs.
The organization received a donation of € 10,000,
as did the Health & Professionals initiative inSouth Africa, the Development Initiative for Tigray
in Germany (Ethiopia), and the CM Relief Fund
­Uttarakhand (India). In São Paulo, we support theadvisory project Comedi Editora, which carries
out activities with a focus on social responsibility
and creates added value for companies throughits social and cultural campaigns. Regionally, we
donated € 20,000 to Heidenheim’s partner city
­Döbeln in order to repair damage from flooding.
CultureOne of our major concerns is giving children andyoung people access to cultural life. During thereporting period, we provided financial support
for various institutions in Heidenheim, including
the Sculptors Symposium, the Heidenheim Art
Museum, and the Opera Festival. We have also
been assisting the museum for Ice Age art in Lonetal and the Austrian Papermaking Museum forseveral years. In Brazil, we provided support tothe non-governmental organization “Passatempo
Educativo” in São Paulo, which offers free cultural
programs for children. The Fundação Voith donated more than € 50,000 to the Bachiana Jovem
Orchestra in São Paulo with the goal of interesting
280 students in classical music and music studies. We have also provided monetary support forthe projects “Oficina de Teatro de Bonecos”, inwhich workshops on puppetry are conducted,
and “Machadiando”, literary events for 100 young
people each on the works of Brazilian author
Machado de Assis.

Miscellaneous
Facts and Figures
Sustainable Management50

Responsibility for the Environment

51

Responsibility for Employees

62

Responsibility for Society

66

Goals and Goal Achievement

67

GRI Index

71

Remarks:
The consolidation framework described in “About this Report” (see inside front cover) applies unless explicitly stated otherwise.
Some decimal points have been rounded up or down. Data that was not available at the time of publication is indicated with “n.a”.

Voith Sustainability Report 2013 I 49

Miscellaneous

Sustainable Management
Key Economic Figures
In € million
Sales

2012/13

2011/122010/11

5,728

5,724

5,594

Operating result before result from one-off effects

308

341

416

Results before taxes

90

177

322

2012/13

2011/122010/11

Reference: Voith Group

Sales Markets
In %Germany

20

21

21

Other Europe

27

26

27

America

27

27

23

Asia

23

24

27

Other

3

2

2

2012/13

2011/122010/11

Germany

36

44

37

Other Europe

22

21

25

North America

9

7

5

South America

19

19

21

Asia and rest of world

14

9

12

Reference: Voith Group

Procurement Markets
In %Reference: Voith Group

Business Area Portraits in Fiscal Year 2012/13
In € million
Sales
Operating results
Reference: Voith Group

50 I Voith Sustainability Report 2013

Voith Hydro

Voith Industrial Services

Voith Paper

Voith Turbo

1,388

1,185

1,639

1,500

107

30

86

108

Certifications at Voith Locations
Number

2012/13

2011/122010/11

ISO 14001

69

69

56

ISO 9001

83

82

76

OHSAS 18001

69

67

52

2012/13

2011/122010/11

Reference: Voith Group

Compliance
In %Employees trained in compliance

100

100

59

Managers trained in compliance

100

100

100

Number of sessions

Type

913

One day

Decentralized training by compliance manager

2,209>1.5 hours

Training by supervisor

2,891>0.5 hours

Reference: Voith Group

Compliance Training Sessions in Fiscal Year 2012/13
Management from the upper four levels,
new managers at the Voith Academy, Sales, Sourcing

Reference: Voith Group

Responsibility for the Environment
Energy Consumption
Production-Related Energy Consumption by Region
In %2012/13

2011/122010/11

Asia

11

11

10

South America

12

11

11

North America

21

21

21

Africa<1<1<1

Europe56

57

58

601,198

603,369

615,455

In MWhTotal
Production-related energy consumption includes energy consumption
at Voith production and service locations.

Voith Sustainability Report 2013 I 51

Miscellaneous

Production-Related Direct Energy Consumption by Primary Energy Source (Renewable and Non-Renewable)
In MWh2012/13

2011/122010/11

Direct energy consumption

196,747

199,774

205,237

99.9

99.9

99.8

Natural gas

80

77

79

Heating oil

7

9

8

Gas

0

0

0

Diesel

6

7

7

LPG

7

7

6

In %
Non-renewable energy sources

Other

<1

0

0

Renewable energy sources

0.1

0.1

0.2

Ethanol*

81

87

90

Hydrogen**

19

13

10

Other

0

0

0

* Used as fuel in São Paulo** Used in production (thermal coating)

Production-Related Indirect Energy Consumption by Primary Energy Source (Renewable and Non-Renewable)
In MWh2012/13

2011/122010/11

Indirect energy consumption

404,451

403,595

410,219

In %Non-renewable energy sources

77.8

77.9

77.4

Heating oil

5

5

5

Nuclear energy

16

17

17

Natural gas

47

48

48

Coal

24

23

22

Other
Renewable energy sources

8

8

7

22.2

22.1

22.6

Wind

1

1

1

Water

85

84

83

Other

14

16

16

Production-related energy consumption includes energy consumption
at Voith production and service locations.

52 I Voith Sustainability Report 2013

Own Energy Production
In MWh2012/13

2011/122010/11

3,602

3,839

3,868

Electricity for own useof which purchased from other organizations
Thermal heat for own useof which purchased from other organizations
Steam for own useof which purchased from other organizations

283

235

324

1,456

1,915

1,622

0

0

0

23,40022,88323,63300028,45828,637

29,124

In MWh2012/13

2011/122010/11Flight (long-distance)

48,08555,66659,656Flight (short-distance)

Total own energy production

Transport-Related Energy Consumption for Business Travel

1,620

2,184

2,425

Rail

434

489

487

Car

62,636

62,405

65,115

Total

112,775

120,744

127,683

Transport-related energy consumption for business travel includes business-related flights(short/ long) and trips by rail, company cars, and rental cars.

Greenhouse Gas Emissions
Production-Related Greenhouse Gas Emissions
In t

2012/13

2011/122010/11

Direct greenhouse gas emissions

42,33743,36944,358Indirect greenhouse gas emissions

143,013140,002139,930

Total

185,350

183,370

184,288

Production-related greenhouse gas emissions include greenhouse gases that occur as aresult of energy consumption at Voith production and service locations.

Voith Sustainability Report 2013 I 53

Miscellaneous

Production-Related Greenhouse Gas Emissions by Region
In %2012/13

2011/122010/11

Asia

26

24

22

South America

10

10

10

North America

25

26

26

Africa<1<1<1

Europe39

40

41

185,350

183,370

184,288

In t CO2

Total

Production-related greenhouse gas emissions include greenhouse gases that occur as a result ofenergy consumption at Voith production and service locations.
The increase in greenhouse gas emissions in Asia is due to increased energy consumption following
the expansion of production capacity. Because of the high proportion of coal power in the energy
mix there, there is a high specific CO2 factor per kWh of electricity.

Specific Production-Related Energy Consumption
MWh/ € million sales

2012/13

2011/122010/11

Total

104.95105.42110.02

Production-related energy consumption includes energy consumption at Voith production and service locations.

Greenhouse Gas Emissions for Business Travel
In t CO2

2012/13

2011/122010/11Flight (long-distance)

13,22015,305

16,402Flight (short-distance)

445

601

667

Rail

104

117

117

Car

18,02017,96518,769Total

31,78933,98835,955

Greenhouse gas emissions for business travel include greenhouse gas emissions that occur as a result ofenergy consumption for business-related flights (short/ long) as well as by rail, company cars, and rental cars.
Transport-related greenhouse gas emissions were converted using the conversion factors for personaltransport available in the ProBas database of the German Environmental Agency.

Greenhouse Gas Emissions for the Transport of Goods
In t CO2

2012/13

2011/122010/11

Total

37,62937,24055,615

Greenhouse gas emissions for the transport of goods include greenhouse gas emissions basedon our inventory additions and subtractions data and the associated transports.
Transport-related greenhouse gas emissions were calculated using the emission factors available
in the ProBas and TREMOD database of the German Environmental Agency.

54 I Voith Sustainability Report 2013

Air Pollutants
Production-Related Air Pollutants
2012/13

2011/12

FCKW*

<1

<1

H-FCKW*<1<1

Halon*00

In t

Methylbromide*

n.r.

<1

Volatile organic compounds (VOC)

104

n.a.

of which volatile org. compound without methane (NM-VOC)

104

n.a.

Persistent organic pollutants (POP)

n.r.

n.r.

Hazardous air pollutants (HAP)

n.r.

n.r.

Dust emissionsof which respirable fraction

8

9

n.v.

n.v.

Heavy metals

n.r.

n.r.

NOx

n.r.

n.r.

SOx

n.r.

n.r.

SF6

0

n.a.

2012/13

2011/12<1<1

From Production-Related Energy Consumption
In t
FCKW*
H-FCKW*<1<1

Halon*<1<1

Methylbromide*

n.a.

n.a.

Volatile organic compounds (VOC)

461

481

of which volatile org. compound without methane (NM-VOC)

31

32

Persistent organic pollutants (POP)<1<1

Hazardous air pollutants (HAP)20

20

Dust emissions

38

38

of which respirable fraction

14

14

Heavy metals

<1

<1

NOx

420

418

SOx

924

904

SF6

<1

<1

* Ozone-depleting substances in t CFC11 equiv.
n.a. = not available, n.s. = not significant, n.r. = not recorded

Voith Sustainability Report 2013 I 55

Miscellaneous

Air Pollutants from Business Travel
2012/13

2011/12

FCKW*

<1

<1

H-FCKW*<1<1

Halon*00

In t

Methylbromide*

n.a.

n.a.

Volatile organic compounds (VOC)

210

179

of which volatile org. compound without methane (NM-VOC)

49

42

Persistent organic pollutants (POP)<1<1

Hazardous air pollutants (HAP)22

Dust emissions

6

5of which respirable fraction

5

5

Heavy metals

<1

<1

NOx

152

148

SOx

89

76

SF6

<1

<1

Air Pollutants from Transport of Goods
2012/13

2011/12

FCKW*

<1

<1

H-FCKW*<1<1

Halon*00

In t

Methylbromide*

n.a.

n.a.

Volatile organic compounds (VOC)

132

151

of which volatile org. compound without methane (NM-VOC)

31

35

Persistent organic pollutants (POP)<1<1

Hazardous air pollutants (HAP)<1<1

Dust emissions

6

6of which respirable fraction

5

6

Heavy metals

<1

<1

NOx

244

258

SOx

99

119

SF6

<1

<1

* Ozone-depleting substances in t CFC11 equiv.
n.a. = not available, n.s. = not significant, n.r. = not recorded

56 I Voith Sustainability Report 2013

Water Consumption
Water Consumption by Region
In %2012/13

2011/122010/11

Asia

19

18

19

South America

12

11

12

North America

11

9

10

Africa<1<1<1

Europe58

62

58

1,358,844

1,693,309

1,640,539

In m³

2012/13

2011/122010/11

Surface water

120,767

102,666

118,283

Groundwater

587,829

837,320

769,965

Rainwater

6,943

10,606

12,897

0

0

2,778

In m³

Total

Water Consumption by Source

Wastewater from other companies
From municipal water utility

643,305

742,717736,617

1,358,844

1,693,309

1,640,539

In m³

2012/13

2011/122010/11

Total

1,351,901

1,682,703

1,624,864

2012/13

2011/122010/11

0.24

0.29

0.29

In m³

2012/13

2011/122010/11

Total

1,198,512

1,461,091

1,544,979

Total

Freshwater Consumption

Freshwater is defined as the total of surface water, groundwater, and tap water. Rainwater andgeothermal water are not included.

Specific Freshwater Consumption
In m³/ € million in sales

Total

Wastewater
Wastewater Drainage

Because of evaporation, the total wastewater drained differs from water consumption.

Voith Sustainability Report 2013 I 57

Miscellaneous

Treated and Untreated Wastewater by Drainage TypeIn m³

2012/13

2011/122010/11

Treated wastewater total

156,035

180,568

249,280of which drained into the public sewage system

54

63

64

of which drained into surface water

44

34

36

of which drained into groundwater

3

2

0

of which reused at another company

0

0

0

1,042,476

1,280,523

1,295,698

of which drained into the public sewage system

56

50

60

of which drained into surface water

33

34

30

of which drained into groundwater

11

16

9

of which reused at another company

<1

<1

<1

2012/13

2011/122010/11

Biological oxygen demand (BOD5)

9

11

n.a.

Chemical oxygen demand (COD)

31

45

n.a.

In %

In m³

Untreated wastewater total
In %Wastewater Quality
In tTotal suspended matter content

11

13

n.a.

Heavy metals

<1

<1

n.a.

Nitrogen

1

2

n.a.

Phosphorous

<1

<1

n.a.

The emissions in wastewater are based on the volume of wastewater streams from Voith locations
subject to monitoring and the respective average of the measured concentrations.

58 I Voith Sustainability Report 2013

Significant* Direct Wastewater Drainage in 2012/2013
Location

Drainage location

Protection status

Other information

Heidenheim(Germany)

Brenz River

Water protection area acc. to
WRRL, WHG (§§ 50–53), Zone
III/ IIIA (Zone II/ IIA TB Mergelstetten, not yet final)

57 % of wastewater is returned to the natural water cycle. The water
was previously used for cooling purposes. The discharged water issubject to strict controls, as the location is in a water protection zone.

Högsjö
(Sweden)Lake Högsjö

–93 % of wastewater is returned to the natural water cycle. The water
was previously used for cooling purposes.

Ibarra(Spain)Río Oria–

45 % of wastewater is returned to the natural water cycle.

Krefeld(Germany)

Green spaces–

19 % of well water is used for watering green spaces.

Noida(India)Yamuna River–

100 % of wastewater is returned to the natural water cycle.

São Paulo(Brazil)

Perus River

Permanent Protection Area
(APP), national law (Brazil)

98 % of wastewater is returned to the water cycle. We have purificationequipment locally with which the water is treated for drainage. The
location is adjacent to a water protection zone.

Wimpassing(Austria)

Schwarza River–

73 % of cooling water is returned to the Schwarza.

* “Significant”
is considered to be wastewater in surface water that exceeds 5 %of the total water volume of the observed unit.
The size and/ or volume of the drainage locations cannot be determined.

Waste
Waste by Region
In %2012/13

2011/122010/11

Asia

13

13

11

South America

27

23

21

North America

8

9

9

Africa<1<1<1

Europe5255

58

49,43651,50558,985

2012/13

2011/122010/11

8.63

9.00

10.54

In t

Total

Specific Waste Weight
In t / € million in sales

Specific waste weight

Voith Sustainability Report 2013 I 59

Miscellaneous

Reclaimed and Removed Waste by Method
In t

2012/13

2011/122010/11

Reclaimed waste

32,18232,82039,240

ReusedRecycled

350

818

875

25,71025,49930,072Composted

162

174

198

Recovered

4,828

5,134

5,829

Other reclamation

1,132

1,195

2,264

Removed waste

17,254

18,686

19,746

Incinerated

3,372

5,135

5,551

Dumped at an external site*

13,882

13,551

14,194Dumped at a company site

0

0

0

Other removal

Total

0

0

0

49,43651,50558,985* Foundry sand waste from the foundry in São Paulo; waste disposal in the US.

Hazardous and Non-hazardous Waste
In t

2012/13

2011/122010/11

Hazardous waste

14,624

14,212

17,111Non-hazardous waste

34,81237,294

41,874

Total

49,43651,50558,985

Biodiversity
Locations in Protected Zones or Adjacent to Protected Zones in Fiscal Year 2012/13
Voith Heidenheim, Germany
Location

Heidenheim, Baden-Württemberg

Type of operations

Production, services, administrationArea

0.33 km2

Type of protected area

Water protection area (freshwater, groundwater, drinking water)

Location in relation toprotection area

Located in the water protection area and encompasses an area rich in biodiversity (water bat Myotis daubentonii)

Protection status

Water protection area according to WFD, Federal Water Act (§§ 50–53), Zone III/ IIIA (Zone II/IIA TB Mergelstetten,
not legally binding)Voith Paper Krieger GmbH & Co. KG, Germany
Location

Mönchengladbach, North Rhine-Westphalia

Type of operations

Production, administration

Area

0.015 km2

Type of protected area

Water protection area (drinking water)

Location in relation toprotection area

Located in the water protection area

Protection status

Water protection area according to WFD (EU Directive), Zone IIIA, “Hoppbruch” drinking water protection area

60 I Voith Sustainability Report 2013

Voith Paper Ltd., UK
Location

Manchester

Type of operations

Production, administration

Area

0.024 km2

Type of protected area

Freshwater, groundwater

Location in relation toprotection area

Neighbors a Natura 2000 protection area

Protection status

Rochdale Canal (inland water body): European legislation, designated by Natura 2000 as aSpecial Area of Conservation (SAC)

Voith Paper Máquinas e Equipamentos Ltda., Brazil
LocationSão Paulo

Type of operations

Production, foundry, administrationArea

0.34 km2

Type of protected area

Green corridor along the River Persus to maintain biodiversity and protect groundwater

Location in relation toprotection area

São Paulo is located in and neighbors a Permanent Protection Area (PPA)

Protection status

Permanent Protection Area (PPA), national legislation (Brazil)

Voith Paper Fabrics AS, Norway
Location

Lier, Tranby

Type of operations

Administration, warehousingArea

0.0016 km2

Type of protected area

“Gjellebekkmyrene-Naturreservat” (marsh) and “Tranby Landskapsvernområde” (former army drill ground)

Location in relation toprotection area

Neighbors two nature protection areas

Protection status

National legislation (Norway)

Land Use
2012/13

2011/122010/11

3.8

3.7

n.a.

Non-sealed area

48

47

n.a.

Sealed area

52

53

n.a.

In km²Land used
In %Voith Sustainability Report 2013 I 61

Miscellaneous

Responsibility for Employees
Consolidation Scope
Consolidation Scope for Employee Headcount in Fiscal Year 2012/13
Headcount

2012/13

Employees Group-wide

47,111of which employees included in data analysis

42,482* Unlike in the annual report, employee figures in the Sustainability Report are represented
by headcount rather than by statistical values. The calculation of employee headcountGroup-wide is based on a different calculation method than in fiscal year 2010/11.

Workforce Structure
Employees by Region and Gender in Fiscal Year 2012/13
NumberVoith Group

EuropeNorth America

South America

Asia

Africa

Women

9,125

6,255

1,121

874

840

35

Men

33,357

21,368

3,801

4,843

3,251

94

<30 years

8,602

4,839

924

1,588

1,242

9

30–50 years

22,38814,422

2,158

3,205

2,521

82

>50 years

11,492

8,362

1,840

924

328

38

Total

42,482

27,623

4,922

5,717

4,091

129

Full-Time and Part-Time Employees by Region and Gender in Fiscal Year 2012/13
NumberVoith Group

EuropeNorth America

South America

Asia

AfricaFull-time

33,656of which are women

5,321

19,146

4,703

5,596

4,082

129

2,525

1,058

869

834

35

of which are men

28,336

16,622

3,645

4,727

3,248

94

<30 years

6,713

3,096

851

1,521

1,236

9

30–50 years

17,641

9,811

2,073

3,154

2,521

82

>50 years

9,303

6,240

1,779

921

325

38

Part-time

8,826

8,477

219

121

9

0

of which are women

3,804

3,730

63

5

6

0

of which are men

5,021

4,746

156

116

3

0

<30 years

1,889

1,743

73

67

6

0

30–50 years

4,747

4,611

85

51

0

0

>50 years

2,189

2,122

61

3

3

0

Total

42,482

27,623

4,922

5,717

4,091

129

Reference: Sustainability database (see “About this report” on the front cover).

62 I Voith Sustainability Report 2013

Workforce Fluctuation
Newly Hired Employees* by Gender, Age Group, and Region in Fiscal Year 2012/13
NumberVoith Group

EuropeNorth America

South America

Asia

Africa

Women

2,639

1,957

247

272

157

6

Men

7,300

4,672

782

1,320

519

7

<30 years

3,887

2,359

401

819

306

2

30–50 years

4,473

3,060

422

677

303

11

>50 years

1,579

1,210

206

96

67

0

Total

9,939

6,629

1,029

1,592

676

13

* Multiple counting possible as a result of employees who rejoin the company.

Employees Who Left the Company in Fiscal Year 2012/13
In %Mechanical and plant engineering

Service business

Total

Total

7.20

26.09

15.87

at the initiative of the employee

3.17

8.76

5.65

at the initiative of the employer

2.95

15.56

8.92

Other

1.08

1.69

1.30

Reference: This data was not recorded in the sustainability database.
It therefore covers 43,460 rather than 42,482 employees.

Employee Retention
Newly Employed Employees Who Left Voith within Twelve Months*,by Gender, Age Group, and Region in Fiscal Year 2012/13
NumberMechanical andplant engineering

EuropeNorth America

South America

Asia

Africa

Women

39

8

11

10

10

0

Men

181

15

19

95

51

1

<30 years

92

8

9

40

35

0

30–50 years

95

11

11

49

23

1

>50 years

33

4

10

16

3

0

Total

220

23

30

105

61

1

Service business

EuropeNorth America

South America

Asia

AfricaNumber
Women

615

464

40

56

55

0

1,352

800

122

345

85

0

<30 years

796

481

87

193

35

0

30–50 years

900

581

50

177

92

0

Men

>50 years

Total

271

202

25

31

13

0

1,967

1,264

162

401

140

0

* The figures include employee or employer terminations as well as other terminations(retirement, death) that led to the employee’s departure from the company. Thus,
transfers within the Group are not included. Temporary contracts are also not included.

Voith Sustainability Report 2013 I 63

Miscellaneous

Average Employment Length in Mechanical and Plant Engineering and in the Service Business by Region
Total

Mechanical and plant engineering

Service businessIn years

2012/13

2011/122010/112012/13

2011/122010/112012/13

2011/122010/11

Europe

9.14

9.53

9.23

15.09

15.05

14.93

5.33

6.08

5.63

North America

7.56

7.59

8.24

11.99

13.46

13.57

4.07

3.86

4.11

South America

5.61

5.27

4.95

8.75

8.41

7.28

3.24

2.82

2.61

Asia

5.36

5.36

5.19

5.88

5.8

5.85

3.00

4.08

2.53

Other

5.97

9

8

7.44

9

8

4.05

n.a.

n.a.

Reference: This data was not recorded in the sustainability database.
It therefore covers 47,111 rather than 42,482 employees.

Work-Life Balance
Parental Leave in Fiscal Year 2012/13
NumberTotal parental leave take-up

Voith Group

EuropeNorth America

South America

Asia

Africa

686

601

18

21

42

4

Women

335

264

9

21

39

2

Men

351

337

9

0

3

2

Employees who returned to Voith afterparental leave

472

407

16

18

27

4

Women

160

110

6

18

24

2

Men

312

297

10

0

3

2

Employees who returned to Voith afterparental leave who are still at Voith
12 months after returning

360

313

9

10

24

4

Women

132

95

3

10

22

2

Men

228

218

6

0

2

2

Because of the number of regulations, it is not possible to say how many employees in total are entitled to parental
leave. Voith abides by national laws and the collective bargaining agreements valid for the company. To the extent
that they contain regulations on parental leave entitlement, Voith supports them.

Occupational Safety
Work Accidents
Number

2012/13

2011/122010/11

181

208

344

Work accidents
Frequency Rate

2.3

2.8

4.7

Severity Rate

425.1

445.9

703.4

1*

0

n.a.

Work accidents resulting in fatalities* Unfortunately, there was one accident during the reporting period that resulted in death.
Two employees on a service call were involved in a car accident in which one was killed.

64 I Voith Sustainability Report 2013

Training and Further Education
Training and Further Education
In €Total expenditures

2012/13

2011/122010/112,932,230

3,445,765

3,071,386

2012/13

2011/122010/11

1,197

1,206

1,246

Reference: Germany, in part

Vocational Training
NumberApprentices and students at cooperative universities
Reference: Voith Group

Diversity
Women in Senior Management Circle (SMC)
2012/13

2011/122010/11

Women in SMC

7

4

3

SMC total

92

94

90

7.6

4.3

3.3

NumberIn %Proportion of women in SMC
Reference: Voith Group

Distribution of Women and Men at Management Level in Fiscal Year 2012/2013
Women

Men

Group Board of Management, Executive Team, Senior
Management Circle

799

Regional directors/ chairperson, Board of Managementof operating units, heads of product groups, managers inGroup management functions

40

398

Mid- and lower-level management

76

691

Total

123

1,188

Number

Reference: This data was not recorded in the sustainability database.
It therefore covers 47,111 rather than 42,482 employees.

Employment Ratio of People with Disabilities
In %Employment ratio of people with disabilities

2012/13

2011/122010/11

3.8

3.61

3.25

Reference: Voith Germany excluding Voith Industrial Services.
The figures comprise people with serious disabilities for whom there was a certificate of serious disability.

Voith Sustainability Report 2013 I 65

Miscellaneous

Responsibility for Society
Not-for-Profit Engagement
Donations and Sponsoring
In € million

2012/13

2011/122010/11

Voith Group

0.95

1.87

1.67

Hans-Voith-Foundation

0.40

0.38

0.30

Fundação Voith

0.43

0.27

0.40

Total

1.78

2.52

2.37

2012/13

2011/122010/11

28.5

33.08

44

Reference: Voith Group

Sponsorship Aid by Project
In %Education
Social affairs

14.9

24.39

13

Sport

45.1

27.17

32

Culture

11.5

15.36

11

1.78

2.52

2.37

In € thousands

2012/13

2011/122010/11

Germany–11,468*

41,09047,122Other Europe

22,437

12,515

17,383In € million

Total

Taxes Paid
Taxes Paid by Region

America

16,99924,55029,204Asia

13,61721,983

14,690

Other

3,407

3,656

3,992

Total

44,992

103,794

112,390

Reference: Voith Group* The excess of tax refunds from tax payments made in Germany is based on a series of interim audits
at domestic companies, which led to tax reimbursement.

66 I Voith Sustainability Report 2013

Goals and Goal Achievement
Sustainable Management
Strategic goals and measures

Date

Status in fiscal year 2012/13
Description

Systemization and internationalization of the stakeholder dialog
Establishment of stakeholder dialog based on megatrends
relevant for the company

FY 2014/15

Online stakeholder survey conducted

Ongoing

Conduct a global online stakeholder survey

FY 2012/13

Conducted from October to November 2013

Achieved

Inclusion of sustainability topic at induction events for new
employees

FY 2013/14

Rescheduled

Ongoing

Conduct training on the issue of sustainability at the Voith
AcademyFY 2013/14

Rescheduled

Ongoing

Planning of a global training concept; establishment ofa cross-functional working group

FY 2013/14

Working group established; concept for pilot application in
one region prepared

Ongoing

Development of KPIs for the social area

FY 2013/14

Proposals by the working group of the Voith executive teamworked out

Ongoing

Inclusion of the Frequency Rate and Severity Rate in theManagement Reporting Tool (MRT)FY 2012/13

Inclusion of the sustainability agenda item in the advisoryboard agenda

FY 2013/14

Depiction of all sustainability goals and the level to which
they have been achieved in MRT by Group Division

FY 2013/14

New

Merger of existing databases into one standard database

FY 2014/15

New

Inform employees about export controls

FY 2012/13

Achieved

Expand the PC learning program for management culture(management and employees)

FY 2012/13

Achieved

Implementation of the Content Management System andreview of effectiveness

FY 2012/13

Achieved

Implement instructions and training for all employees

FY 2012/13

Achieved

Supplier self-assessment ratio (SSA ratio): introduction withthe goal of obtaining 80 % of purchased goods and services(based on purchasing volume) from suppliers who have acurrent self-assessment

FY 2014/15

New

Increase the proportion of goods procured from evaluatedsuppliers to 76 % (of purchasing volume)

FY 2012/13

Achieved

Increase the proportion of goods procured from evaluatedsuppliers to 79 % (of purchasing volume)

FY 2013/14

New

Introduction of the sustainability ratio as a KPI in purchasing

FY 2012/13

Revision of evaluation criteria for complying with environmental
and social standards in the supplier database

FY 2013/14

Implementation of the Blocked Supplier Concept for blocking
suppliers

FY 2013/14

Firm establishment of sustainability among employees

Expansion of sustainability management

Achieved
Implemented in some regions; regular topic at the meetingsof Group and Group Division meetings

Ongoing

Ensuring compliance

Supplier management

Achieved
Approval of the revision by the Global Purchasing Board
planned in July 2014

Ongoing
New

Voith Sustainability Report 2013 I 67

Miscellaneous

Responsibility for the Environment
Strategic goals and measures

Date

Status in fiscal year 2012/13
Description

Resource management
Reduction of specific freshwater consumption by 10 % (Basis 2011/12) FY 2017/18

Reduction by 20 % (Basis 2011/12)

Ongoing

Reduction of specific waste volume by 25 % (Basis 2011/12)

FY 2017/18

Reduction by 4.1 % (Basis 2011/12)

Ongoing

Reduction of energy needs by 20% (Basis 2011/12)

FY 2017/18

Reduction by 0.4 % (Basis 2011/12)

Ongoing

Further development of EBM controlling through monthly
recording and reporting

FY 2012/13

Monthly reporting to the CEO and Group Board of Management

Achieved

EBM method for analyzing energy, water and material flows to
production locations: expansion of new tools and setup of an
EBM toolbox

FY 2013/14

Achieved

Development of a standard method forincreasing material efficiency in production

FY 2014/15

Ongoing

Development of a Group policy for renovations and new
construction, taking account of energy efficiency factors

FY 2015/16

Ongoing

Study to define environmental assessment criteria whenhiring logistics services in cooperation with a college

FY 2013/14

Ongoing

Application of a study on raw materials shortages toselected products

FY 2014/15

Critical raw materials for key components known, strategies derived

Achieved

Introduction of the Eco Compliance Concept, incl.
related software, worldwide; rescheduled because oforganizational changes

FY 2014/15

Rolled out in 19 locations worldwide (corresponds to 50 % ofsales)

Ongoing

Introduction of a global, standardized hazardous
materials management process

FY 2013/14

Process defined, workflow in programming, local hazardous
materials databases being merged, interfaces with ERP systems
being implemented

Ongoing

Implementation of a Group-wide reporting system forrecording environmentally relevant incidents

FY 2012/13

Monthly reporting to the CEO and Group Board of Management

Achieved

Implementation of a Group-wide reporting system forrecording work accidents, environmental incidents, andother relevant incidents

FY 2014/15

Operational environmental protection

68 I Voith Sustainability Report 2013

New

Product Responsibility
Strategic goals and measures

Date

Status in fiscal year 2012/13
Description

Energy- and resource-efficient products
Conducted a pilot project on eco technology transfer

FY 2012/13

LED factory lighting in Kunshan and Heidenheim, energy efficientpress concept for an automobile supplier, energy advisory tool forgreen services

achieved

Rescheduled: development of tools and models for assessing
products and services regarding energy and resource efficiency

FY 2013/14

Eco-efficiency worked out and applied in a pilot

achieved

Rescheduled: assessment of development processes of products
and services regarding energy and resource efficiency

FY 2014/15

Ongoing

Rescheduled: include “product energy efficiency” as a criterion indevelopment process and risk checklist

FY 2014/15

Ongoing

Responsibility for Employees
Strategic goals and measures

Date

Status in fiscal year 2012/13
Description

Diversity & Inclusion
Firmly establish diversity and inclusion in the corporate
culture through an awareness campaign

FY 2014/15

Train-the-Trainer concept; training of trainers as good ascompleted; awareness workshops start in FY 2013/14

Ongoing

Increase proportion of women (senior management) from
4.5 to 10 %FY 2014/15

Regional activities as part of the Diversity & Inclusion Program

Ongoing

Increase proportion of women in technical careers(Germany)

FY 2014/15

Regional activities as part of the Diversity & Inclusion Program

Ongoing

Promotion of family-friendly policies
Launch and expansion of the intranet site "Family & Job"
for offers in all German locations

FY 2012/13

Achieved

Expand offer of family support measures in Germany

FY 2013/14

FY 2012/13: start of a cooperation agreement throughout
Germany with an external service provider that advises Voith
employees with family members who require care and supports
additional permanent measures, such as offers for holiday
support in various locations; existing offers will now
be maintained and expanded

Ongoing

FY 2015/16

Project started

Ongoing

Support of managers and employees
Introduction of the module learning and development for the“People Excellence Platform”
Implementation of management programs in all regions

FY 2013/14

Annual feedback meeting with all employees; degree ofcoverage: 100 % of all employees (not specified)

FY 2014/15

Achieved

Introduction of a Group-wide standardized development center
procedure (Career Compass)

FY 2013/14

New

Talent management: pilot project for employee recruiting in China

FY 2013/14

New

Future standardization through corresponding module
for the “People Excellence Platform” (PEP)

OngoingVoith Sustainability Report 2013 I 69

Miscellaneous

Data collection
Implementation of a global database for collecting the basic
data of all employees

FY 2014/15

Basic data of all employees in Germany, China, Brazil, andvarious other countries integrated; completed in Q3/2014

Ongoing

Further development of Group-wide key figures in the HR
area; focus on KPIs in the transformation context

FY 2013/14

Similar to implementation of basic data (see above)

Ongoing

FY 2013/14

Small groups start with five graduate(trainees: 3 German, 2 Chinese)New

Training and further education
Preparation and implementation of a uniform“Global Graduate Program”
Increase workplace safety
Reduce accident ratio to less than two accidents
per million work hours

Medium term

Ongoing

Publication of additional Safety Group Directives

FY 2012/13

Achieved

Creation of regional networks for occupational health in
the US and China

FY 2012/13

Achieved

Recording of accident severity

FY 2012/13

Benchmarking and setting of objectives for reducing
accident severity

FY 2013/14

Make managers aware of workplace safety

FY 2015/16

Achieved
Voith Group under 350 hours not worked per
1 million working hours, no Group Divison over
400 hours not worked per 1 million working hours

Ongoing

Ongoing

Health protection
Establishment of a comprehensive concept for occupational
health management

FY 2014/15

Basic concept of development is ready; current rollout
in Germany, adjusted rollout in the regions

Ongoing

Development and introduction of a standardized reporting
system for management, incl. uniform definition andintroduction of sick time

FY 2012/13

Current verification of the data quality and initial analyses

Definition anddata collection achieved

Establishment of a specific KPI system for occupational
health management

FY 2014/15

Rollout of a standardize company medical support system(Germany)

FY 2013/14

Initial meeting of company doctor planned for 2014

Ongoing

Support during the reintegration of employees with longterm illnesses (German)

FY 2013/14

Establishment of BEM team at all locations in Germany

New

Introduction of an international procedure for occupational
reintegration management adjusted to local needs

FY 2014/15

2014 start in Brazil

New

Establishment of an internal network for standardizing
workplace medicine across Germany

FY 2013/14

New

Provide information to employees on the topics ofergonomics, skin, noise, and respiratory protection (approx.
every two months) for reducing work-related illnesses

FY 2013/14

New

Ongoing

Responsibility for Society
Strategic goals and measures

Date

Status in fiscal year 2012/13
Description

Next generation development
Develop next generation of engineers and college graduates
in technical courses

70 I Voith Sustainability Report 2013

FY 2013/14

Award stipends and sponsorships via theHanns-Voith-Foundation

Achieved

GRI Index
Organization and Reporting Profile

Comment

StatusReference

Reported Fulfilled
1. Strategy and Analysis
1.1Statement from the Chairman of the Board ofManagement or the Supervisory Board

4–5

1.2

Central key impacts, risks, and opportunities withregard to sustainability

10, 13–14, 67–70;
AR 108–111

2. Organizational Profile
2.1

Name of the company

8

2.2

Primary brands, products, and/or services

7–9

2.3

Business divisions and company structure

8; AR 200–205

2.4

Location of company headquarters

8

2.5

Countries with major operations

Inner cover, 7;
AR 200–206

2.6

Ownership structure8

2.7

Markets

Inner cover, 8–9

2.8

Scale of the company

8–9, 50; AR 2, 123

2.9

Significant changes during the reporting period

AR 129–131

2.10

Awards received in the reporting period

AR 81, 86, 111

3. Report Parameters
3.1

Reporting period

Inner front cover

3.2

Date of most recent previous report

June 2013

3.3

Reporting cycle

Inner front cover

3.4

Contact point for questions regarding this report

Inner back cover

3.5

Process for defining report content

Inner front cover

3.6

Boundary of the report

Inner front cover

3.7

Limitations on the scope or boundary of the report

Inner front cover

3.8

Joint ventures, subsidiaries, outsourcing

Inner front cover

3.9

Data collection

Inner front cover, 11, 22,
54, 58

3.10

Changes regarding the presentation of informationcompared to previous reports

Inner front cover

3.11

Changes to the scope, boundary, or measurement
methods

Inner front cover, 40

3.12

Index according to GRI

3.13

External verification

71–76
Only the reported economic indicators have beenverified externally. They were verified by the auditing firm
Ernst & Young as part of auditing of the Annual Report 2013.

4. Governance, Commitments, and Engagement
4.1

Governance structure

8; AR 6–13

4.2

Independence of the Chairman of the Supervisory
Board

AR 6–7, 12–13

4.3

Governance body and number of independent
management board members

Irrelevant indicator as Voith has a Supervisory Board
that monitors the Board of Management.

4.4

Mechanisms for shareholders and employees
to provide recommendations to the Board ofManagement or Supervisory Board

Voith GmbH is entirely family-owned. The Voith family
exercises its co-determination right through the
Shareholders’ Committee.

4.5

Linkage between compensation for the Board ofManagement and the company’s performance

AR 198

4.6

Mechanisms for avoiding conflicts of interest

12; www.voith.com/Codeof Conduct

4.7

Expertise of governance body in the area ofsustainability

10–11; www.voith.com/kgf

4.8

Statements of mission or values, codes ofconduct, and principles

12

1

8, 37; AR 12–13

Voith Sustainability Report 2013 I 71

Miscellaneous

Organization and Reporting Profile

Comment

StatusReference

Reported Fulfilled
4.9

Procedures of the Board of Management or
Supervisory Board for overseeing performance interms of sustainability

4.10

Procedures for evaluating the Board of Management’s
own performance

10–12, 40, 67; AR 9–10

3

4.11

Implementation of the precautionary principle

10; AR 106

4.12

Endorsement of external initiatives

11, 13

4.13

Memberships in associations and advocacy
organizations

13

4.14

Involved stakeholder groups

13

4.15

Selection of stakeholders

13

4.16

Approaches to stakeholder engagement (type/frequency)

Inner front cover, 13, 31

4.17

Response to key concerns raised by stakeholders

Inner front cover, 13Management Approach and Performance Indicators
EconomyManagement approach

9–10, 46

EC1

Economic value generated and distributed

8, 37, 46, 66;
AR 120, 169

EC2

Financial impact of climate change

EC3Company’s benefit plan obligations

AR 170–173

EC4

Financial assistance received from government

AR 177EC5

Relationship between standard starting salary (by gender)
and local minimum wage

37

EC6

Spending on locally-based suppliers

EC7

Employment of local employees in management positions

EC8

Infrastructure investments and services for public benefit

EC9Indirect economic impacts

10; AR 66, 80, 111

The financial impact of climate change is not reported
in a quantifiable manner by Voith. It depends on factorsthat we cannot influence. Quantifiable reporting will not
be possible in the future either.

9, 14–15, 50
To date, Voith has not reported the percentage of
local managers. We intend to report this informationin fiscal year 2013/14.

2

9, 42

45–48
n.d.

Environmental Protection
Management approach

10, 18–19, 26–27, 30, 32

EN1

Materials used by weight or volume

14, 23–24

EN2

Percentage of materials used that are recycled input
materials

24

EN3

Direct energy consumption by primary energy source

Total production-related direct energy consumption
2012/13: 196,747 MWh = 708,289 GJ.

19–20, 52–53

EN4

Indirect energy consumption by primary energy source

Total production-related indirect energy consumption
2012/13: 404,451 MWh = 1,456,024 GJ.

19–20, 52

EN5Energy saved

EN6

Energy-efficient products and services

EN7

Initiatives to reduce indirect upstream/downstream
energy consumption

72 I Voith Sustainability Report 2013

19–20, 22
Our products are mainly subcomponents used incustomer-specific end-to-end systems. The components
used individually influence the end-to-end system’s
power consumption. This is why we develop tools andmodels to assess products and services in relation toenergy and resource efficiency.

1

32–33

20–22

Organization and Reporting Profile

Comment

StatusReference

Reported Fulfilled
EN8

Total water withdrawal by source

EN9

Water sources significantly affected by withdrawalof water

24–25, 57
n.d.

EN10 Recycled and reused wastewater

25–26

EN11 Land used in protected areas

27, 60–61

EN12 Impacts of activities in protected areas

27

EN13 Protected or restored natural habitats

n.d.

EN14 Strategies for biodiversity

27

EN15 Affected animal species and plant varieties

60

EN16 Direct and indirect greenhouse gas emissions

20–22, 53

EN17 Other relevant greenhouse gas emissions(e.g. due to business travel)

22, 54

EN18 Reduction of greenhouse gases

20

EN19 Ozone-depleting substances by weight27, 55–56

EN20 NOx, SOx, and other significant air emissions
by weight

27, 55–56

EN21 Wastewater discharges

26, 57–58

EN22 Waste by type and disposal method
EN23 Total number and volume of significant spills

23–24, 60
During the fiscal year, there were no incidents in
production, warehousing, or transport where significant
volumes of harmful substances were released.

EN24 Transported, imported, exported, and treatedhazardous waste

23

EN25 Water bodies significantly affected by wastewater
discharges

59

EN26 Initiatives to mitigate environmental impacts ofproducts and services

Our products are mainly subcomponents usedin customer-specific end-to-end systems. The
components used individually influence the end-toend system’s power consumption. This is why wedevelop tools and models to assess products andservices in relation to energy and resource efficiency.

EN27 Percentage of products sold and their packaging
materials that are reclaimed

Full reporting is not relevant for Voith, as only verysmall quantities of packaging materials are used,
depending on the product.

EN28 Fines/sanctions for non-compliance withenvironmental laws and regulations

Fines and non-monetary sanctions for non-compliancewith environmental laws not reported.

1

32–33

23–24

EN29 Environmental impacts due to transport

22, 54

EN30 Environmental protection expenditure and investmentn.d.

Labor Practices and Decent WorkManagement approach

10, 36–38, 40–42, 69–70

LA1

Entire workforce by employment status, region,and gender

Information about permanent/temporary employment
contracts broken down by gender is still not reported
by Voith, as this data is not available. We want to start
reporting this data in 2015.

LA2

Rate of employee turnover by age group, gender,and region

LA3

Benefits provided only to full-time employees

LA4

Percentage of employees covered by collective
bargaining agreements

37

LA5

Minimum notice period(s) regarding significant
operational changes

37

37, 6237, 63n.d.

Voith Sustainability Report 2013 I 73

Miscellaneous

Organization and Reporting Profile

Comment

StatusReference

Reported Fulfilled
LA6

Percentage of total workforce represented inindustrial safety committees

75 % of the global workforce is actively involved inindustrial health and safety via committees comprising equal numbers of employees and safety experts.

LA7

Injuries, absenteeism, and fatalities

The following information is not currently recorded:– Frequency of work-related accidents by region
and gender– Days lost and total absenteeism– Occupational diseases

LA8

Risk control and programs relating to serious
diseases

LA9

Industrial health and safety agreements with unions2

40–41, 64

35, 41n.d.

LA10 Hours of training and further education by employee
category

The following information is not currently recorded:– Distribution of the average hours of further educationby employee category and gender
We would like to be able to report this information
by 2015.

LA11 Knowledge management and lifelong learning

Our support programs for employees exiting the company(such as owing to age) differ at a local level and cannot
be reported owing to the complexity of the data.

38–39

LA12 Performance assessment and development planning

Voith does not record the gender of employees involvedin an employee or goal-agreement dialog as the discussions are not gender-related.

38

LA13 Composition of governance bodies and breakdownof employees (e.g. age/gender/minority groupmembership)

The following is not reported for internal reasons:– Information regarding whether employees andmanagers belong to a minority group3

42, 62, 65;
AR 6–7, 12–13;
www.voith.com/kgf

LA14 Remuneration by gender and employee category

The following is not reported for internal reasons:– The ratio of the salary actually paid (including
agerelated and performance-related remuneration
components, etc.) between women and men

3

37

2

LA15 Return to work rate following parental leave

39

42–43, 64

Human Rights
10, 14–15, 36, 67

Management approach
HR1

Investment agreements with clauses or screening
relating to human rights

HR2

Percentage of suppliers that have undergone
screening on human rights and actions taken

HR3

Employee training on human rights

HR4

Incidents of discrimination and actions taken

42

HR5

Operations in which the right to exercise freedom of
association may be at significant risk

14–15, 36

HR6Operations with increased risk for child labor andmeasures14–15, 36

HR7Operations with increased risk for forced labor andmeasures14–15, 36

HR8Training of security personnel for aspects of humanrights that are relevant to operations

HR9

Incidents of violation involving rights of indigenous
people74 I Voith Sustainability Report 2013

All investment agreements are subject to our Code of
Conduct, which includes the topic of human rights.
14–15

The number of training hours on human rights is notrecorded globally by Voith. Human rights are a component of, among others, compliance training.

15

n.d.
Upholding the rights of indigenous people is not
immediately relevant for Voith, as Voith’s operations
currently do not pose any potential risk.

1Organization and Reporting Profile

Comment

StatusReference

Reported Fulfilled
HR10 Review of operations for impacts on human rights

The Code of Conduct applies Group-wide at Voith andguidelines on human rights are also a component ofour general procurement conditions for suppliers.

14–15, 36

HR11 Complaints due to human rights infringements

The Voith whistle-blower system also includes complaints
regarding human rights violations. However, Voith does
not report on the number, as the data is subject toconfidentiality.

14–15

Society
10, 12–13, 46, 67

Management approach
SO1

Impact of operations on communities or regions

Voith maintains a continuous exchange of information
with the communities where its sites are located. This
also includes construction projects.

SO2

Percentage of business units analyzed for risks related
to corruption

Voith does not report on the percentage of business
units analyzed for risks related to corruption. At Voith,
corruption risks are part of internal reviews and external
audits. Quantitative data is subject to confidentiality.

SO3

Percentage of employees trained in prevention

SO4

Actions taken in response to incidents of corruption

The Voith whistle-blower system also includes corruption
cases. However, Voith does not report on the number, as
the data is subject to confidentiality.

SO5

Public policy positions and participation in public policy
development and lobbying

Voith availed itself of its expertise in discussions with
political representatives as part of the development of its
sustainability standard ISO 26000 and OHSAS 18001.

SO6Contributions to political parties and politicians

SO7

Legal actions due to anti-competitive behavior

SO8

Fines/sanctions for non-compliance with laws andregulations

SO9(Potential) negative impacts on local communities46

3

13, 5146
n.d.
There are no significant fines.
17, 26–27

SO10 Prevention of negative impacts on local communities

17, 26–27

Product Responsibility
Management approach

10, 30; AR 108

PR1

Life cycle stages in which health and safety impacts
of products are assessed

31

PR2

Incidents of non-compliance with regulations concerning
health and safety of products

PR3

Guidelines/procedures for providing product information

PR4

Non-compliance with regulations and voluntary codes
to provide information on products and services

n.d.
31–33
n.d.

PR5

Survey of customer satisfaction

PR6

Programs for adherence to laws and voluntary codes
related to marketing communications

We abide by legal requirements for our advertisingand marketing. The Compliance Committee monitors
compliance.

PR7

Non-compliance with regulations and voluntary codes
concerning marketing communications

We are not aware of any infringements of regulations or
voluntary codes concerning marketing communicationsin the reporting year 2012/13.

PR8

Substantiated data protection complaints

In the reporting year, there were no complaints due todata-protection infringements and no recorded instanceof data theft.

PR9

Significant fines for non-compliance with laws andregulations concerning the provision and use of products
and services

31

3

Voith Sustainability Report 2013 I 75

Miscellaneous

Indications and Abbreviations:Indicators in black = Core indicators
Indicators in grey = Additional indicators
Unless stated otherwise, the page numbers given in the “Reference” column refer to this Sustainability Report 2013 produced by Voith. Other page referencesrefer to the Annual Report 2013 produced by Voith (AR). Furthermore, in some cases a specific reference is made to the corporate Web site at www.voith.com.
You will find a corresponding comment for references to the “Comment” column.
Current status of the reporting of indicators:= Fully reported= Partially reported (indicating an official non-reporting reason)= Not reported (indicating an official non-reporting reason)
n.d. = No data collected
Official reasons why information was not reported under GRI Guidelines (indicated by index number):
1 = Not important or not applicable for Voith.
2 = No information or data currently available at Voith as this is not yet included in our data-collection systems. Please refer to the indicator comment in thetable for details on when it is likely to be possible to report this data and information.
3 = Reporting not allowed/proprietary to Voith.
For further information on the reasons why information was not reported under GRI Guidelines, see the Global Reporting Initiative website at,https://www.globalreporting.org/information/FAQs/Pages/Application-Levels.aspx.

76 I Voith Sustainability Report 2013

Voith Sites

North America
Sales: € 890 million

EuropeSales: € 2,715 million

Asia/ Australia/ Oceania
Sales: € 1,365 million

Central/ South America
Sales: € 624 million .

Voith sites in fiscal 2012/13 with more than 20 employees.

AfricaSales: € 134 million

Imprint

Contact

Publisher
Voith GmbH
Corporate C­ ommunications
St. Pöltener Straße 43
89522 Heidenheim, Germany
Telephone: +49 7321 37-0
+49 7321 37-7000
Fax:
E-mail:info@voith.com
www.voith.com

Project Management andContact Point for Questions
Regarding Content
Corporate Sustainability
Torsten Kallweit,
Markus Schönberger
Further Information
This report is also available inGerman.
The German and English­editions are available on the­Internet at,
www.voith.com/de/konzern/
nachhaltigkeit-178.html
www.voith.com/en/group/
sustainability-178.html.
In addition to the Sustainability
Report, Voith also publishes acomprehensive Annual Reportat the end of the fiscal year.
This is available on the Internet
at, http://www.voith.com/en/
group/facts-figures-96.html.
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Sustainability Report were determined. By
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Printed in Germany, © Voith GmbH, 2014-06

Sustainability Report 2013This Sustainability Report is alsoavailable in German.
Both versions and further information
are also available for download on theInternet.
www.voith.com

Sustainability Report 2013

About this Report
Our Aspiration
This report is the third Sustainability Report by Voith GmbH. We
aim to keep our company’s stakeholders updated once a year
on the progress we are making in our fields of activity. These
include Sustainable Management, Sustainable Profitable Growth,
Environment, Product Responsibility, Employees, and Society.
This report focuses on explaining our strategies, solutions, andmeasures as well as presenting our key figures.
Reporting Method
The report is oriented toward the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level A requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.

Comparability of Facts, Figures, and Information
Certain figures were calculated for the first time for this report.
This means that in specific cases a three-year trend cannot yet
be presented, but it will be introduced in the future.
Owing to the new calculation bases, better quality data, andupdated information, we needed to correct previous figures on
the environment (such as emissions, energy consumption, water, and waste). There may be differences in the data totals as aresult of rounding figures up or down.
Forward-looking Statements
We would like to point out that all forward-looking statements inthis report are based on current assumptions. Due to unknown
risks, uncertainties, and other factors, the actual results, developments, or services of our company may deviate from our
prognoses, evaluations, and statements.

Reporting Period and Report Scope
The Sustainability Report 2013 is based on fiscal 2012/13, which
at Voith starts on October 1 and ends on September 30 the following year. The deadline for content submission for this report
was May 31, 2014. Unless otherwise stated, the facts, figures,and information in this report refer to the Voith Group as a wholewith its global Group Divisions Voith Hydro, Voith Industrial Services, Voith Paper, and Voith Turbo. The degree of consolidation is 83.6 % of the Group’s sales and 86.98 % of the Group’s
employees (= 42,482 employees at 92 sites) unless otherwise
indicated in the report.

Additional Comments
For improved readability, we refrain from referring specificallyto both genders in this report. This is not a value judgment andall forms are to be understood as gender-neutral. The term
“service business” describes the business activity of the Group
Division Voith Industrial Services. This Sustainability Report isavailable in German and English. Please visit our website atwww.voith.com and read our Annual Report for further andmore extensive information.

Data and Information Gathering
Information was collected electronically upon written request.
Data was recorded using division-specific software.

We expect to publish our next Sustainability Report in the springof 2015.