Sustainability Report 2012

Sustainability Report 2012

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, and measures as well as
presenting our key figures.
Reporting method
The report is oriented towards the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level B requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.
Reporting period and report scope
The Sustainability Report 2012 is based on fiscal 2011/12, which atVoith starts on October 1 and ends on September 30 the following
year. The deadline for content submission for this report was
May 31, 2013. 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 degree of consolidation is 84 percent of
the Group’s sales and 88 percent of the Group’s employees(= 41 021 employees at 92 sites) unless otherwise indicated in thereport.
Data and information gathering
Information was collected electronically upon written request. Data
was recorded using division-specific software.

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

Comparability of facts, figures, and information
Certain figures were calculated for the first time for this report. Thismeans 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, and updated information, we needed to correct previous figures on theenvironment (such as emissions, energy consumption, water, andwaste). There may be differences in the data totals as a result ofrounding figures up or down.
Forward-looking statements
We would like to point out that all forward-looking statements in thisreport 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.
Additional comments
For improved readability, we refrain from referring specifically toboth genders in this report. This is not a value judgment and allforms are to be understood as gender-neutral. The term “service
business” describes the business activity of the Group Division
Voith Industrial Services (VI). This Sustainability Report is available
in German and English. Please visit our website at www.voith.com
and read our Annual Report for further and more extensive information.

We expect to publish our next Sustainability Report in the springof 2014.

Sustainability Report 2012

Sustainability Report 2012

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, and measures as well as
presenting our key figures.
Reporting method
The report is oriented towards the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level B requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.
Reporting period and report scope
The Sustainability Report 2012 is based on fiscal 2011/12, which atVoith starts on October 1 and ends on September 30 the following
year. The deadline for content submission for this report was
May 31, 2013. 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 degree of consolidation is 84 percent of
the Group’s sales and 88 percent of the Group’s employees(= 41 021 employees at 92 sites) unless otherwise indicated in thereport.
Data and information gathering
Information was collected electronically upon written request. Data
was recorded using division-specific software.

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

Comparability of facts, figures, and information
Certain figures were calculated for the first time for this report. Thismeans 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, and updated information, we needed to correct previous figures on theenvironment (such as emissions, energy consumption, water, andwaste). There may be differences in the data totals as a result ofrounding figures up or down.
Forward-looking statements
We would like to point out that all forward-looking statements in thisreport 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.
Additional comments
For improved readability, we refrain from referring specifically toboth genders in this report. This is not a value judgment and allforms are to be understood as gender-neutral. The term “service
business” describes the business activity of the Group Division
Voith Industrial Services (VI). This Sustainability Report is available
in German and English. Please visit our website at www.voith.com
and read our Annual Report for further and more extensive information.

We expect to publish our next Sustainability Report in the springof 2014.

Voith Sites

North America
Sales: € 873 million

EuropeSales: € 2,679 million

Asia/Australia/Oceania
Sales: € 1,405 million

Central/South America
Sales: € 668 million

Voith sites in fiscal 2011/12 with more than 20 employees.

AfricaSales: € 99 million

Imprint

Contact

Environmentally Friendly
Production

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

Project management andcontact point for questions
regarding content
Corporate Sustainability
Andrea Linke,
Markus Schönberger
E-mail: sustainability@
voith.com

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.

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

Print

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
Text and design
akzente kommunikation undberatung gmbh

compensated
Id-No. 1327120
www.bvdm-online.de

The Respecta Silk recycled paper we used
for the Voith Sustainability Report 2012 is
made from at least 60 percent secondary
fibers and was produced using a Voith paper machine.

Printed in Germany, © Voith GmbH, June 2013„Nachhaltiges Wirtschaften sehen wir als­Voraussetzung, unseren Unternehmenserfolg
auszubauen, Geschäftsrisiken zu mindern
und neue Potenziale zu erschließen.“Hubert Lienhard

“For us, sustainable business practices are
the key to making our company even more
successful, minimizing risks, and capitalizing
on new potential.”
Hubert Lienhard

Editorial
Dear readers,
For Voith, sustainability is not a definitive goal that can be achieved. Instead, it is thenecessity for the company to remain successful over the long run by pursuing environmentally friendly and fair business practices.
As a result, we have defined six fields of activity that are linked to strategic and operative
goals and published them in the Sustainability Report. We want these goals to be anindicator of our performance.
We are convinced that sustainability is a cross-functional responsibility that can only
be managed conjointly by our Corporate Board of Management, Group Divisions, anddepartments. One of the challenges we face is to firmly ingrain the principles of sustainability in the thoughts and actions of our employees. To raise awareness and include
our employees in the process, we are currently drafting a concept for internal communication.
Three years ago, we started creating a sustainability database that today covers over
80 percent of the company in terms of sales. The database provides us with detailed
information at site level, for example, environmental data. Key figures on energy, waste,
and freshwater are collected monthly or quarterly allowing us to actively manage whether or not we reach our environmental goals.
But many challenges lie ahead. Now that our indicator system has proven successful inthe economic and environmental realms, we want to expand it to include other areas.
In initial yet extensive analyses, we have already learned that, for example, the needsof our employees or society vary considerably depending on the region. We want tofocus more on this aspect in the future.

I hope you enjoy reading this report.

Andrea Linke, Head of Sustainability

2 I Voith Sustainability Report 2012

Contents
About this Report, Contents, Foreword

4

Product Responsibility

34

About this Report

Cover

4.1 Approach and Organization

36

Voith sites

Cover

Editorial2

4.2	Minimizing the Environmental
Impact in Development

37

Contents3

4.3 Product Quality and Safety

39

Foreword 4

4.4 Customer Dialog

41

1

6

5

42

1.1 Structure and Markets

8

5.1 Approach and Goals

44

1.2 Business Strategy

9

5.2 Training and Further Education

46

5.3	Diversity, Equal Opportunities, andFamily-Friendly Policy

48

5.4 Occupational Health and Safety

50

6

Responsibility for Society54

6.1 Approach and Organization

56

6.2 Projects and Activities

57

2

Group Portrait

Sustainable Management

10

Responsibility for Employees

2.1	Sustainability as a Component of the
Corporate Strategy

12

2.2	Organizational Pillars for Sustainability

13

2.3 Values, Guiding Principles, and Compliance

15

2.4 Stakeholder Dialog

16

2.5 Supplier Management

17

3

20

Miscellaneous59

3.1 Approach and Goals

22

Facts and Figures

60

3.2 Organization

23

Goals and Goal Achievement

76

3.3 Energy, Emissions, Water, Biodiversity

25

GRI Index

82

Fresh and recycled complement
each other perfectly

88

Responsibility for the EnvironmentImprint/ContactCover

Voith Sustainability Report 2012 I 3

Foreword

Dear ladies and gentlemen,
At Voith, we make a contribution to sustainable development. These efforts are both an
expression of how we see ourselves and one of the goals of our business practices. But
what does this mean in concrete terms? For us, sustainable business and corporate
success are not separate, undefined parameters. We see ourselves as a company that
contributes to the successful development of people, industries, and national economies with its contracts, projects, and initiatives.
Some of these contributions and activities are highlighted in the third edition of the Voith
Sustainability Report. What have we achieved in the last few months, what have we put
into practice, and where do we need to work harder to achieve our sustainability goals?
This publication answers these questions.
For example, we undertook to reduce our specific CO2 emissions by fiscal 2015/16
by 10 percent from 2008/09 levels. We already achieved this goal in this reporting
period: We were even able to lower the specific CO2 emissions by 10.4 percent andthus reached our target ahead of schedule. A similar positive development occurred inwaste reduction: Compared to fiscal 2008/09, we lowered our specific waste volume
by 25 percent and thus even surpassed our target in the reporting period.

4 I Voith Sustainability Report 2012

We are also on track for occupational safety. We reported a low accident rate forthe company as a whole with 2.8 accidents for every million hours worked. In fiscal
2006/07, we still had 1,352 accidents throughout the company while in fiscal 2011/12,
there were only 208 – a drop of more than 80 percent. We are slowly by surely getting
closer to our target of 2.0 accidents for every million hours worked.
Despite all of our success, we still have plenty of room for improvement. For instance,
we want to focus more on the needs of the individual regions in the future to more
firmly establish sustainable business practices there. Efforts are already underway andwe have highlighted various priorities in North American in the third Voith Sustainability
Report. The continent continues to be one of the largest economic regions in the world.
For Voith, the region is one of the most attractive markets of the future. To operate asuccessful business on this market as well as other regions of the world, we have to
identify the opportunities and challenges these different markets entail and bring ourstrategies into line accordingly. In the globalized world of tomorrow, we will only beable to overcome the economic, environmental, and social challenges in the respective
regions by changing the way we think.
In this report, we would like to give an overview of the projects that we are pursuingin our six fields of activity – sustainable management, sustainable profitable growth,environmental responsibility, product responsibility, employee responsibility, and social
responsibility – in North America. To this end, we analyzed regional and product-specificopportunities and risks for every field of activity and identified a strategic process.
For us, sustainability is an ongoing process that involves the willingness to change andrethink one’s views. Sustainability is the prerequisite for our success.
I would like to invite you to learn more about Voith’s activities in the area of sustainability
and hope you find this report interesting.

Sincerely yours,

Hubert Lienhard

Voith Sustainability Report 2012 I 5

Group Portrait

6 I Voith Sustainability Report 2012

Voith has been making a contribution to low-emission power generation in
North America for more than 100 years with components for hydro power
plants. Our activities began there in 1903 when we supplied the twelve
largest turbines of the time to a power plant at Niagara Falls. Today, most of
the hydro power plants installed in North America contain Voith turbines andgenerators.

01

Group Portrait
Voith is a global technology group. With our broad
portfolio of systems, products, and industry services,
we serve five key markets: Energy, Oil & Gas,
Paper, Raw Materials, and Transport & Automotive.
Our operative business is broken down into fourGroup Divisions: Voith Hydro, Voith Industrial
Services, Voith Paper, and Voith Turbo. Founded in
1867, Voith remains one of the largest family-owned
companies in Europe today.

Group Portrait

1.1 Structure and Markets
In fiscal 2011/12, the Voith Group performed well ina difficult environment. Sales rose from the recordbreaking figure the previous year by 2 percent to€ 5.7 billion. Annual net profit of € 114 million was
lower than the previous year (€ 200 million). Globally,
Voith had 42,327 full-time equivalent positions (statistical value) in fiscal 2011/12 and employed 46,469
people.
Voith GmbH, headquartered in Heidenheim/Brenz,
Germany, is the Group’s management holding. The
Board of Management of Voith GmbH is responsible
for the Group’s strategic management and operations. The Shareholders’ Committee and Supervisory
Board act as advisory and supervisory bodies. The
Supervisory Board also monitors the Board of Management.
Shareholdings
Annual Report
Pages 210–215

Our business is broken into four Group Divisions
each with its own legally independent managementcompany:
As a turnkey supplier of equipment for hydro power
plants, Voith Hydro is one of the leading industrial
partners for power plant operators around the world.
This is true not only for energy generation, be it traditional hydro power or ocean energy, but also forenergy storage. The system supplier’s products
range from generators and turbines to pumps and all
the way to measurement and control technologies.
This business area with its team of approximately
5,000 employees accounted for 23 percent of sales

8 I Voith Sustainability Report 2012

in the most recent fiscal year (previous year: 22 percent).
Voith Industrial Services is a leading provider of technical services to key industries including automotive,
energy, chemical, and petrochemical as well as machine engineering and aerospace. Services range
from maintenance, technical cleaning, and facility
management all the way to assembly and planning
services and complex high-tech engineering. This
Group Division, with roughly 20,000 employees,
contributed 19 percent of total sales (previous year:
18 percent).
As a partner to and pioneer in the paper industry,
Voith Paper supplies technologies and products forthe entire paper production process. Global manufacturers of paper, cardboard, and toilet tissue haverelied for many years on the knowledge and expertiseof the system supplier. Last year, this division accounted for 30 percent of sales (previous year: 33
percent) and employed around 10,000 people.
Voith Turbo supplies drive components and systems
for various industries: Anywhere that power has tobe transferred in a controlled motion. Technologies
from Voith Turbo transfer and control forces under
extreme conditions – safely and with efficient use ofresources. The team of more than 6,000 employees
generated 27 percent of total sales in fiscal 2012(virtually unchanged from the previous year).

1.2 Business Strategy
At Voith, we pursue a long-term business strategy
based on four pillars: A balanced product portfolio,
our global presence, strong innovation, and financial
independence as a family-operated company.
Balanced product portfolio
Starting with our original core business – machineand plant construction – we have gradually expanded our product and service portfolio over recent decades. Today, Voith is firmly established with our fourGroup Divisions in five key markets: Energy, Oil &Gas, Paper, Raw Materials, and Transport & Automotive.
Our extensive range makes it possible for us to absorb economic slowdowns in a single industry: It iseasier for us to compensate for sales losses in thelate-cycle markets (energy, oil & gas, raw materials)
with growth in the early-cycle markets (paper, transport & automotive) and vice-versa.
Global presence
The Voith Group has a global presence. Our goal is
to be represented with development and production
sites in all growth regions of the world which allow
us to supply each market locally and advise market
actors – whether with in-country management, local
supply chains, or, increasingly, local sources of financing, thus making a contribution to strengthening
regional added value. We aim to be as deeply rooted
in our markets internationally as we have been in Germany for a long time. In the meantime, America, Asia,and the rest of Europe each contribute around onequarter of Group sales while business in Germany
makes up approximately 20 percent.
Strong innovation
Our economic success is mainly based on our strong
innovative capabilities. This is evidenced by several
thousand active patents, with several hundred newpatents added every year. Even when times are economically tough, we invest intensively in researchand development – in fiscal 2011/12 expenditures
totaled € 267 million (previous year: € 259 million)
which represents 4.7 percent of total Group sales(previous year: 4.6 percent). Detailed information
about research and development can be found in
our Annual Report.
Financial independence
Voith is a family-owned company. Long-term orientation around sustainable and profitable growth is
the highest priority of our shareholders, Supervisory
Board, and Corporate Board of Management. Taking
a long-term view is the only way to guarantee that
the Group can retain its financial independence andbecome stronger for the next generation.

The History of Voith
http://voith.com/
en/group/
history-188.html
Research and­Development
Annual Report
Page 110 f.

International
Presence
Overview
Inside of cover

At Voith, we pursue a long-term business strategy
based on four pillars built over four decades:
A balanced product portfolio, our global presence,strong innovation, and financial independence as afamily-operated company.

Voith Sustainability Report 2012 I 9

Sustainable Management

10 I Voith Sustainability Report 2012

In North America, Voith purchased goods and services from local companies
amounting to a value of roughly € 200 million in fiscal 2011/12.
We have been partners with many of our suppliers for many years andpay attention to their compliance with established environmental and social­standards.

02

Sustainable Management
As a family-owned company, integrity and corporate
responsibility are an essential part of our identity. Overthe last few years, we have integrated sustainability
into the company strategy and organization. Today,
we have a Group-wide sustainability management
system that is based on fields of activity andmeasurable goals that we want to continuously
improve.

Sustainable Management

2.1 Sustainability as a Component of the Corporate Strategy

Overviewof Our Goals
Page 76 ff.

With our concept of sustainability we are carrying
on the tradition and style of Voith, a family-owned
company, which includes the obligation to conduct
environmentally compatible, clean and fair businesswith long-term success. We give equal weighting toeconomic, environmental, and social aspects in our
approach. Our credo is: We make measurable contributions to sustainable development. As a globally
operating company, the challenge we face is to strategically incorporate, effectively manage, and drive
forward our concept of sustainability. To this end, we
have created various structures in recent years.
Resource shortages, climate change, urbanization, mobility, globalization, demographic change:
These megatrends will impact our company development over the next few decades in different ways. We have the opportunity to help solvethese global challenges with our technologies. Forus, sustainable business practices are the key tomaking our company even more successful, minimizing risks, and capitalizing on new potential.
Fields of activity
We have defined six fields of activity that we use asa basis for integrating sustainability into the Groupand our operations.
Strategic and operative goals are needed to put ourapproach to sustainability into practice. We have defined these goals for all fields of activity and linked
them to concrete measures with specific target dates(see goals and goal achievement).

Sustainability: Fields of activity
Long-term, successful growth

Sustainable
and profitable
growthManage risks
Seize opportunities
Create value

Sustainable
company
management

Product
responsibility

Reliability
and innovation

Responsibility
for our
employees

Fair employer
with highperformance
expectations

Sustainability
at VoithCommitment
and inspiration

Responsibility
for society
Responsibility
for theenvironment

Resource efficiency and environmental protection

12 I Voith Sustainability Report 2012

2.2 Organizational Pillars for Sustainability
Sustainability is a cross-functional responsibility
shared by our Corporate Board of Management,Group Divisions, and departments. In 2009, we set
up the Corporate Sustainability central function. The
Corporate Sustainability Council acts as the central
committee for sustainability management.
Central function: Corporate Sustainability
The Corporate Sustainability central function lays
down the structure and principles for the Group’s
sustainability activities and organization, advises thedivisions and companies, and further develops sustainability as a theme. A Group Directive describes
the central function’s tasks and responsibilities. Corporate Sustainability reports directly to the Chairmanof the Corporate Board of Management. The areas ofEnvironment, Health and Occupational Safety, andthe Corporate Sustainability Office report directly tothe head of this area.

As set in the Group Directive, the most importanttasks of the central function include defining the strategic and operative framework for the development
and implementation of sustainability goals within theGroup. The Office defines methods and tools such as
the Voith sustainability database and the management
reporting tool. Corporate Sustainability also advises
the Group Divisions and companies in all issues related to sustainability and provides advice when filling
management positions in the area of sustainability.
The Corporate Sustainability Office reports to the
Corporate Sustainability central function and is responsible both for the sustainability database and the
management reporting tool as well as sustainability
communication.

Sustainability: Organization

Corporate Board of Management

Target approval

Corporate Sustainability
CouncilTarget definition,
monitoring, andmanagement

Voith Hydro

Voith Industrial
Services

Voith Paper

Voith Turbo

Corporate departments

Implementation
planning andmanagement

Regions/sites

Implementation

Voith Sustainability Report 2012 I 13

Sustainable Management

Corporate Sustainability Council (CSC)
Our Corporate Sustainability Council formulates
decision-making bases for our Corporate Board ofManagement. In addition, it is the interface to theorganization for the operative implementation of sustainability in our Group Divisions and monitors theachievement of goals.
The Council comprises sustainability officers from
our Group Divisions who report to the respective
head of the specific Group Division. The Council isoverseen by the head of the Corporate Sustainability
central function. In its controlling and monitoring role,
the Corporate Sustainability Council is responsible
for ensuring that sustainability data can be easilycollected. It monitors the implementation of goals,
strategies, and measures in the Group Divisions andencourages the exchange of experience and know­
ledge.
Implementing measures is the responsibility of theoperating units of the Group Divisions and corporate
departments (for example, HR and Purchasing). The
heads of the corporate departments regularly takepart in the meetings, which gives them an opportunity to incorporate their experience into the work of
the Council.

Operational implementation of goals andmeasures
The corporate departments propose goals related
to sustainability and come up with measures to be
used to achieve these goals. In regular meetings with
the CSC, the heads of the corporate departments
report on the current level of goal achievement andsuggest new goals. Further integration of goals into
operations is coordinated with the respective committees of the individual Group Divisions and corporate departments.
Management systems and data collection
At Voith, we have been collecting and analyzing all
relevant environmental data, material indicators, andselected employee data in a sustainability databasesince the beginning of 2009. The Global Reporting
Initiative (GRI) for sustainable reporting serves as a
guideline. The data is updated annually or quarterly,
while energy indicators are updated monthly. The
operating units or sites are responsible for collecting the data and are overseen by a Group Divisional
Administrator at Group Division Holding level. Since
fiscal 2011/12, we have been analyzing the data with
our Group-wide management reporting tool.
New goal• Systematically embed awareness of sustainability using various methods, for example expanding
employee training on sustainability and regular internal communication

Sustainability is a cross-functional ­responsibility
shared by our Corporate Board of ­Management,Group Divisions, and Corporate departments.

14 I Voith Sustainability Report 2012

2.3 Values, Guiding Principles, and Compliance
Voith – Engineered Reliability
All of our actions are based on trust. This maxim is
supported and supplemented by our values of professionalism, respect for the individual, helpfulness
towards colleagues, openness, reliability and integrity. We summarize our canon of values in our slogan“Voith—Engineered Reliability”. This encompasses
our claim of providing reliable and high-quality technology on a sustainable basis and always acting­fairly, openly and reliably in dealings with our employees, partners and customers.
Our values likewise form the foundation on which
the Voith brand is built and the core of our corporate
identity. Our values, and the guidelines derived fromthem, ensure that Voith acts according to the samebusiness principles and adopts the same philosophy worldwide. In this way, we marry the culture ofa family-owned business with that of a global player.
Compliance – Our values are binding
The Voith Code of Conduct was introduced in 2009
from the legacy of previous Group guidelines andour culture of integrity that was formulated as a principle of business conduct back in 1927. The Codeof Conduct is a binding set of rules that govern dealings with customers and business partners, but also
dealings between employees within the Group. We
expect each and every employee to comply with theapplicable laws and also our own internal guidelines.
This applies to all levels of the hierarchy throughout
the Group. Infringements will not be tolerated andare countered with sanctions. Rules and standard
procedures are revised continuously to match thelatest requirements. The main principles addressedby the Voith Code of Conduct are as follows:
Compliance with the rules of fair competition
No agreements that contravene competition law• No corruption or bribery: no offering and granting
or demanding and accepting unfair benefits• Transparency of donations and sponsorship••

Maintaining own and respecting third-party company and patent secrets• No undue preferential treatment of suppliers andservice providers•

The compliance organization
Our Compliance Committee is responsible for settingup, ongoing developing and coordinating the Voith
compliance organization and for regularly reviewing
the valid compliance regulations and coordinating
training. The Committee was set up as part of our existing organization for risk management in 2007/08.
The Compliance Committee comprises the respective heads of the Corporate Office, Corporate Law,
Corporate HR Management and Group Audits. The
Committee is chaired by the head of the Corporate
Office who reports directly to the Chairman of theVoith GmbH Board of Management. In accordancewith Voith’s other risk management organization, theChief 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 complianceorganization in their areas. All compliance officers areprepared for their work in multi-day training courses.
Our employees are required to attend training, which
is tailored to their particular activities and needs.

Wording of Code of
Conduct
http://voith.com/
en/group/­
compliance-187.
html

In fiscal 2011/12 we successfully completed the firstphase of certification of our compliance management system based on the IDW EPS 980 standard– “Principles of Auditing Compliance Management
Systems” – which was audited by a financial auditing company. Our management system for information technology and security was already ISO/IEC
27001-certified in 2009.
Dealing with complaints and information
Every employee can report a suspected violation of
the Voith Code of Conduct. We offer them various
ways to do this, from which they are free to choose.
They may report a violation to their direct supervisor,

Voith Sustainability Report 2012 I 15

Sustainable Management

2.4 Stakeholder Dialog
the HR manager responsible for the employee, thecompliance officer of the respective company orGroup Division, or a member of the Compliance
Committee. We have also set up a help desk and an
e-mail address that employees can send information to. The employee is not disadvantaged in any
way by reporting a suspected violation. Anonymously
submitted complaints are also followed up. The typeand number of violations is documented centrally.
Compliance training
At the end of 2011, we launched a mandatory computer training program: It gives all employees with
PC access the opportunity to keep their knowledgeof compliance issues current. In the meantime, morethan 90 percent of all employees affected have completed the e-learning training. Training with on-siteattendance is also offered. Overall, around 32,000
employees had participated in compliance training
by the end of 2012.
New goals• Complete the second and third phases of the certification process in fiscal 2012/13• Expand the PC training program on management
culture (management and employees) in fiscal
2012/13• Compulsory e-training “Management and Employees at Voith” for all employees• Extend the whistleblower system with reporting
units at the Heidenheim, Appleton (USA), Shanghai, São Paulo and St. Pölten (Austria) sites andthe reporting methods (e-mail, phone, fax, post) in
fiscal 2012/13

16 I Voith Sustainability Report 2012

At Voith, we are confronted with different needs
and expectations that are placed on the company
by stakeholders. These stakeholders include theowners and supervisory committees, employees,
neighboring communities, customers, suppliers andinvestors, economic associations and academia (universities, research institutes), government agencies
and politicians, NGOs, and the general public. During
the period under review, we created a task force toconduct a Group-wide analysis of the stakeholder
groups and come up with a concept for systematic
stakeholder dialog. We plan to implement one measure from this concept in fiscal 2012/13.
We are in contact with all of our stakeholders on various issues. For example, every manager receives
feedback from our staff in the annual employee reviews as an important driver for further development,
which also extends to development of our company.
In the dialog with our customers, we conduct regularsurveys on customer satisfaction. This gives us an
overview of the quality of our products and services
and we benefit from suggestions for improvements
and innovations.
We exchange ideas on topics specific to our technology and industry with other companies 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/

2.5 Supplier Management
AMMPL), the German Industrial Services Association (Wirtschaftsverband für Industrieservice e. V. –WVIS), and the International Hydropower Association(IHA). Apart from our work in professional associations, the Group also conducts regular dialogs with
NGOs that deal with environmental and social issues.
We are in regular contact with the World Wildlife Fund(WWF). We also work in industry associations, forexample 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
der Deutschen Luft- und Raumfahrtindustrie e. V. –BDLI).
Stakeholders can contact the people responsible forthe various fields of activity with questions and suggestions related to sustainability by e-mail or on our
corporate website.
New goals• Expand and systematize the dialog with external
stakeholders by fiscal 2013/14• Implement a measure from the concept for stakeholder dialog in fiscal 2012/13• Expand the communication concept for sustainability and implement initial measures (for example
training and expansion of scheduled communication) by fiscal 2012/13

Our drive for sustainable business practices requiresthat our suppliers also comply with recognized environmental and social standards. This minimizes risks
and creates transparency in our supply chain. We are
implementing a Group-wide concept to integratesocial and environmental aspects into our General
Purchasing Conditions, the supplier self assessment,
supplier evaluations, and audits. We are currently
working on defining the existing criteria in more depth
and making them a fixed component of purchasing.

Purchasing
Documents
http://voith.com/
en/group/­purchasing-174.html

In fiscal 2011/12, purchasing volume totaled € 3.3
billion and was virtually the same as the previous
year. Voith worked together with suppliers from 78
countries. The three largest groups of goods purchased as production materials were electrical/electronics, cast parts, and semi-finished goods/steel. In
terms of global regions, Europe and North America
accounted for 72 percent, South America for 19
percent, and Asia for 9 percent of this total. The percentage of goods purchased in Asia will increase in
the future in line with the business strategy. Because
the largest growth in sales is expected in Asia anddue to our clear localization strategy (“local for local”), the increase in purchasing volume there will be
proportionally higher. We are pursuing this strategy
not least of all to keep the transport routes as shortand efficient as possible and have a positive impact
on our carbon footprint.

Our drive for sustainable businesspractices requires that our suppliers also
comply with recognized environmental
and social standards.

Voith Sustainability Report 2012 I 17

Sustainable Management

Guidelines for a relationship based on trust
We form long-term relationships with many of our
suppliers in partnerships based on trust. Our concept of partnerships and our specifications on environmental and social standards and complianceare documented in the Code of Conduct and ourGeneral Purchasing Conditions (GPC).
The Code of Conduct states: “Voith assesses all ofthe quotes submitted by its suppliers fairly and without prejudice. A contract must be reviewed, decided
on, awarded, and handled transparently and strictlyon the basis of objective criteria. It is absolutely prohibited to give preferential treatment to or to obstruct
a supplier. When selecting business partners, Voith
requires its partners to also comply with the values
outlined in this directive. The business relationshipmay be terminated if the directive is violated by apartner.”
The Code and our GPC should be accepted by our
suppliers when a formal business relationship isconcluded. The GPC stipulates that suppliers mustcomply with all legal provisions on environmental protection and labor law and may not tolerate bribery,corruption as well as child and forced labor. As analternative to the Voith regulations, the companies
should also have their own adequate regulations inplace and assure compliance with them. If necessary, Voith employees perform an on-site inspection
to determine whether these regulations are compliedwith and, if so, how.
Supplier management
To identify the risks of global purchasing markets, wehave a Group-wide risk management system andtrack our key suppliers in a central database. This
database increasingly contains not just informationon the scope of services and products but also on

18 I Voith Sustainability Report 2012environmental and social standards. This way, we
ensure that our purchasing team of around 550 employees can also access and analyze the relevant
data for a group of suppliers.
Supplier self assessment
Companies we work with for the first time that are
expected to have a high sales volume with Voith
should also enter information on environmental andsocial standards and compliance with laws and voluntary guidelines when registering in our database.
For example, information on sustainability strategies,
a Code of Conduct, and management systems forenvironment, occupational safety, and quality are
stored, as well as the respective certificates.
Supplier evaluation
We evaluate the quality, safety, and environmental
protection requirements based on defined criteria forexisting business relationships. Our employees are
required to assess active and repeat suppliers oncea year. In fiscal 2011/12, we conducted 7,235 evaluations with 4,526 suppliers. Of these, 3,198 evaluations with 2,475 suppliers already contained our
newly introduced environmental and social criteria.
72 percent of the goods and services procured werepurchased from evaluated suppliers. Our target forthe coming business year is 76 percent.
Comments
In the Sustainability Report 2011, we set a goal of
85 percent for fiscal 2011/12. As until that time only
three of the four Group Divisions were included in
the supplier evaluation, the goal also only referredto these three Group Divisions, where a rate of 81
percent was achieved. In the meantime, supplierevaluation is also being implemented in the fourthGroup Division. This is why the values were adjusted.

Supplier visits and audits
Information on quality, environmental, and occupational safety management is particularly relevant
for us. If necessary, our suppliers can provide therespective proof through internationally recognized
standards (ISO 9001, ISO 14001, ISO 16001, EMAS,
OHSAS 18001, SA 8000, etc.). Suppliers who do nothave the respective certificates despite requirements
to the contrary should be visited on-site by Voith employees who inspect the quality of processes, systems, and products. The priorities and frequency ofthese visits are defined at Group Division level andadjusted when necessary. Currently there is no information available on the number of audits performed
because this is not tracked centrally.
Warnings/black list concept
If suppliers do not comply with our specifications, wesend a warning and request improvement. If a supplier does not make the improvement within a specifictime period despite several warnings, the business
relationship should be terminated and the suppliersuspended. In the reporting period, we ended ourrelationship with one business partner in Asia due toa case of corruption. To be able to ensure that suppliers like this are suspended Group-wide, we are currently drafting a centrally managed black list concept
together with the corporate legal department.
Employee training
At Voith, we strategically develop our purchasing department and teach our employees about supplierself assessments and evaluations, visit reports, andcompliance with laws and directives in the newly created “Purchasing Training School” (PTS).

ideas and experiences with our most important suppliers and business partners on a regular basis. Particularly during supplier visits, we inform our partnersof organizational changes and new requirements.
Our specific Group-wide “Supplier Award”, which
also honors suppliers for compliance with environmental and social standards had to be deferred forthe time being, however, due to other priorities.
Sustainably-oriented supplier management is alsoa central theme for many of our customers andindustry associations. Voith is, for example, an active member of the German Association for Materials Management, Purchasing, and Logistics (BME/
AMMPL).
New goals• Procure 76 percent of the purchasing volume from
evaluated suppliers in fiscal 2012/13• Cooperate with the Group legal department to create a black list concept valid for the entire Group for
blocking suppliers by fiscal 2013/14• Document the evaluation of environmental and social standards in our supplier database using a separate indicator in the purchasing KPIs from fiscal
2012/13• Evaluate 80 percent of the most important material deliveries (material score) for fiscal 2012/13 andmaintain the level of coverage in future

Dialog with suppliers and business partners
We also encourage direct dialog with our suppliers
about environmental and social standards. We share

Voith Sustainability Report 2012 I 19

Environmental Responsibility

20 I Voith Sustainability Report 2012

Resource-efficient production is a core issue for Voith, also at our sites in North
America. Sometimes it can be achieved with simple ideas, as evidenced by
the example of press fabric that is needed in the production of paper. Since westarted systematically switching off the machine components used to producepress fabric, we have saved around 209,000 kilowatt hours of electricity and
108 metric tons of CO2 per year at our Wilson site alone.

03

Responsibility for the­Environment
As a global technology group with intensive resource
utilization, one of our most important projects inenvironmental protection is to conserve raw materials
and lower energy consumption and therefore CO2
emissions. This not only makes a contribution toprotecting the environment; we also minimize ourbusiness risks and lower our operating costs.

Environmental Responsibility

3.1 Approach and Goals
Overview of Our
Goals
Page 77 ff.

At Voith, we consider it our corporate responsibility
to not only use resources efficiently but also to reduce our consumption of resources overall. This applies both to our production and service sites.
One of our goals is to continuously reduce our environmental footprint. To this end, we prescribed binding environmental standards in 2003 for the entire
Corporate Group and for all levels in the value chain.
The company-specific environmental standards are
summarized in the Group Directive “Environment”,
last updated in October 2012. We have set out our
understanding of environmentally-aware actions,and how we are implementing environmental protection measures within our Group, in seven guiding
principles:
1. Acting ecologically is synonymous with acting
eco­nomically.
2. Acting ecologically involves the entire value chain.
3. Acting ecologically is a continuous improvement
process.
4. Our actions are based on the adherence to legal
provisions and standards.
5. Acting ecologically by involvement of all employees is a duty of leadership.
6. All employees are trained regularly in acting ecologically.
7. Management uses audits to assess ecological behavior.

Environmental goals
The Voith Corporate Board of Management defined
three reduction goals as strategic fields of activity
in environmental protection on the basis of fiscal
2008/09: CO2 emissions, waste, and freshwater
consumption. These goals are related to the annual sales as specific variables. We had plannedto achieve this reduction for all targets by 2015/16
but – after reaching the freshwater target in fiscal
2010/11 – we also achieved it ahead of schedule forCO2 emissions and waste volumes.

22 I Voith Sustainability Report 2012

CO2 reduction
Our target was to reduce our specific CO2 emissions
by 10 percent from 2008/09 levels by fiscal 2015/16.
We lowered emissions by 10.4 percent and reachedthis target ahead of schedule in the reporting period.
Because we don’t want to let up in our climate protection efforts, we have set a new target: In relation toannual sales, we aim to reduce our energy consumption by 20 percent from 2011/12 levels by 2017/18.
To achieve this, we will focus more on leveraging
the benefits of energy efficiency in our actions as a
production-intensive company.
Waste reduction
We planned to reduce the waste volumes producedin our processes in relation to annual sales (metrictons/€ million) by 10 percent from 2008/09 levels by
2015/16. By reducing the specific volume of waste
by 25 percent up to the 2011/12 reporting year wewere able to surpass this goal by a considerable degree and ahead of time. We now want to reduce
the specific waste volume by 25 percent from fiscal
2011/12 levels by 2017/18.
Freshwater consumption reduction
We were not able to successfully continue the positive trend of reducing our specific freshwater consumption as was seen over the last few years in thisreporting period. The increased need for cooling water at the Garching (Germany) and Wimpassing (Austria) sites increased specific freshwater consumption
by 2.3 percent compared to the previous year. We
have still set a higher reduction target for freshwater
consumption: By fiscal 2017/18 we aim to reduce
specific freshwater consumption by 10 percent compared to the reference year (fiscal 2011/12).

3.2 Organization
The central “Corporate Environment” department
is responsible for all environmentally relevant issues
throughout the Group. It operates as a part of Corporate Sustainability, which in turn reports directly to the
Chairman of the Corporate Board of Management.
The environmental organizations in the Group Divisions help our sites implement tasks and measuresrelated to the environment. They also report directly
to the relevant Group Division’s Board of Management.

•

Analysis of the possible effects of the shortage ofraw materials on the Group. Voith worked with auniversity to produce a survey that evaluated theavailability of crucial raw materials for machine engineering. The survey explored criteria such as regional concentration, the political situation in the
producer countries, price fluctuations, and substitutability.

New goal
Apply the findings of the survey on shortage of raw
materials to selected products by 2014/15•

Corporate Environment’s mission is to create measurable added economic value for the company
through ecological business practices. Corporate
Environment pursues a multidimensional approachand is broken down by topic into Eco Technologies,
Ecological Business Management (EBM), Eco Standards, and Environmental Protection Heidenheim.
Eco Technologies
The priority issue of Eco Technologies identifies market trends and technologies and analyzes environmental-economic potential for use in Voith products
and production. It carried out, among other things,
the following activities and pilot projects during thereporting period:• Studies and projects, e.g. on the use of waste heatin production buildings and possibilities for application of solar thermal heating.
• Contributions to concept and planning phases forthe expansion of the Chinese production sites.
• Development of a standard methodology to improve material efficiency. As part of a pilot project at the Heidenheim site, numerous improvement
measures were identified. The main potential for
improvement was through greater interaction between design, procurement, and production.
• Five one-day training sessions on energy andr­esource efficiency in Kunshan, York (USA), São­Paulo, and Heidenheim with a total of 54 participants.

Ecological Business Management
Ecological Business Management (EBM) identifies potential ecological-economic improvements
in production and the associated processes andtechnologies. The key tool is the analysis of energy,material, and water flows in the plants. We apply the
EBM methodology primarily to our own production,
but also offer it as a service to our customers. We
carried out the following activities at Voith during thereporting period:• Voith has implemented EBM in all divisions andthus achieved its goal.
• Analysis of the energy, material, and water flows
at one of our customer’s production sites: The
team identified the primary consumers and cameup with proposed measures. Our customer benefited from potential ecological-economic savings
amounting to 10 percent of its previous energy
consumption.
• We held workshops on reducing, separating, andrecycling waste at the US sites West Monroe, Summerville, Waycross, Shreveport, and Wilson.
New goals
Further develop EBM controlling: Extend a tool toverify site-specific achievement of goals and implementation of measures by fiscal 2012/13• Constantly refine the EBM method for analyzing energy, water, and material flows at production sites
by means of new tools and establish an EBM toolbox by the end of fiscal 2013/14•

Voith Sustainability Report 2012 I 23

Environmental Responsibility

Eco Standards
The role of Eco Standards is to provide strategic andoperational support for Voith’s business units andsites in implementing and complying with environmental regulations. All relevant data on health andoccupational safety and environmental protection isrecorded and managed using an integrated management system. We are guided by the internationallyrecognized standards ISO 9001, ISO 14001, and
OHSAS 18001. Most of our sites are already certified. More than 91 percent of our employees work atsites with ISO 9001 certification by now.
There is one Environmental Representative per site
who supports the management and the people responsible in the implementation of requirements andstandards. We check compliance and goal achievement in internal and external audits. This allows us
to simultaneously guarantee a uniform quality andenvironmental standard for our products. We carried out the following activities at Voith during thereporting period:• Launch of Group-wide tracking of environmental
incidents: The Group Directive “Environment” defines and regulates reporting and processes. An
environmental incident is defined as an unplanned
event at the workplace that actually damages or
could potentially damage the environment, people,
property, business activities, and company reputation.
• Development of an Eco-Compliance Concept andimplementation at Heidenheim and 13 other sites
in Germany (64 percent of the sales generated in

24 I Voith Sustainability Report 2012

Germany). Relevant guidelines can be assigned toand reviewed by various departments and facilities,
using a special software.
• Performance of training sessions on recycling andenergy, resource, and environmental management
at the Heidenheim site with 81 participants.
• Start of the implementation of a Group-wide hazardous substance management process basedon a standardized hazardous substance database. This will allow all materials to be mapped
throughout the entire Group against a uniform database, and so simplify compliance with statutory regulations, such as REACH, at the start of thevalue chain.
We reached the targets set for all measures.
New goal
Implement a Group-wide reporting system totrack all environmentally relevant incidents by fiscal 2012/13•

Environmental Protection Heidenheim
At our site in Heidenheim, our central Corporate
Environment department is also responsible for local operational environmental protection. It was responsible for the on-schedule completion of the pilot
project to introduce the described eco-compliancesoftware at the Heidenheim site. Five user training
sessions with 104 participants were held by the endof fiscal 2011/12 in this area. The project is finished.

3.3 Energy, Emissions, Water, Biodiversity
Direct and indirect energy consumption
The total energy consumed in production amounted
to 602,807 MWh (33 percent direct energy and 67
percent indirect energy) in the reporting period. Directenergy is mainly comprised of natural gas as a fuel forheating and heat-intensive thermal processes. Indirect energy is made up of electricity which accounts
for 78 percent of the total indirect energy consumed
in production. Around 28 percent of this electricity
originates from renewable energies, with 86 percent
from hydro power. District heating and steam makeup the remaining good 20 percent of the indirect energy.
Practical examples
With respect to heating, we reduced the consumption of heating energy at our sites in Heidenheim andYork – for example, by lowering the temperature in

the hall and sealing leaks in the building shells. This
lowered annual CO2 emissions by 600 metric tons in
Heidenheim and 250 metric tons in York.
By using compressor waste heat, the site in Yorkproduces around 210 metric tons fewer CO2 emissions every year; in Salzgitter, Germany, there arearound 70 metric tons fewer CO2 emissions and inFrankenmarkt, Austria, around 100 metric tons fewer
CO2 emissions.
Besides technical measures, we also rely on behavior-related measures to reduce electricity consumption. In Kiel (Germany) and Heidenheim, employees
are motivated to switch off lights during breaks andat the end of the workday. At the Croydon (UK) andSalzgitter sites, new lighting technology has made it
possible to reduce CO2 emissions by 60 metric tons

Percentage of direct and indirect energy consumption in fiscal 2011/12

Directenergy33%

Natural gas 77%

Non-renewableenergy sources> 99%

Heating oil 9%
Miscellaneous 14%
Renewableenergysources 28%

Hydro power 86%
Other 14%
Black coal 30%

Indirectenergy67%

Electricity 78%

Non-renewableenergy sources
72%

Natural gas 29%
Nuclear 23%
Crude oil 7%
Other 12%Districtheating 20%

Non-renewableenergy sources > 97%

Steam 2%

Non-renewableenergy sources 100%

Voith Sustainability Report 2012 I 25

Environmental Responsibility

per year at each site. We produce 400 metric tons
fewer CO2 emissions annually thanks to LED lighting
in Kunshan.
The significance of energy efficiency in the procurement of new systems was incorporated in theamendment to the Group Directive 01/02 “Environment”. This directive documents energy andresource efficiency standards for the purchase of
new and replacement production systems and theircomponents throughout the Group. It also addresses
the consumption of compressed air, process heat,process water, and cooling water.
Our sites in St. Pölten and Crailsheim (Germany)
held information days to raise employees’ awareness of, among other things, environmental protection measures. Following an energy savings day, forexample, the St. Georgen, Austria, site reduced its
energy consumption by 30 percent by switching off
unnecessary consumers on machines, lighting, andsimilar equipment.
The main causes of energy consumption are heating
systems in Europe and the northern part of the USA.
Another factor is our demand for heat processing,for example, to melt steel in the São Paulo foundryor for thermal fixation during press fabric production.
In terms of electricity consumption, Voith has identified lighting, ventilation, and air-conditioning, as wellas the standby function of machines as general factors. On the production side, machine tools, looms,
test stands, and pilot paper machines are particularly
power-intensive.
Since October 2011, we have recorded in detail the
direct and indirect energy consumption of the Group
companies included in the scope of reporting on amonthly basis. With the conclusion of fiscal 2011/12
on September 30, 2012, we now have monthly consumption figures for an entire year for the first time,
which makes it possible to see the cycle of energy

26 I Voith Sustainability Report 2012

consumption throughout the year. Furthermore,since fiscal 2010/11 we have also been logging otherforms of energy consumption arising from the transport of goods as well as employee business trips.
This allows us to cover all three application areas of
the Greenhouse Gas (GHG) protocol.
The CO2 emissions we generate are calculated according to the energy source based on specific CO2
factors. We take these factors in the form of CO2
equivalents from a database (GaBi) which provides
us with regional and location-specific values for eachof our energy sources. Where not available otherwise, the specific emissions values of the electricity
provider or the country (national grid mix) are used.
Besides CO2 emissions, we also record other greenhouse gas emissions such as CH4, N2O, HCF, PFC,
and SF6 across the Group calculated as CO2 equivalents based on conversion factors.
Welding, protective, and other process gases are
generally not relevant as Voith only generates themin very small amounts. The only exceptions are oursite in Laakirchen, Austria , which uses kerosene andSão Paulo, which uses acetylene. We used an energy
questionnaire to survey these process gases. All energy consumption is reported as CO2 equivalents inthe following section.
Production-related energy consumption andCO2 emissions
In total, Voith consumed 602,807 MWh of energy
in production and administration in the reporting
period (previous year: 615,456 MWh), of which
199,212 MWh was direct energy (previous year:
205,237 MWh) and 403,595 MWh indirect energy(previous year: 410,219 MWh). We met around 15
percent of our needs with renewable energies as was
also the case the previous year.

Production-based energy consumption

Production-based greenhouse gas emissions

In MWhSpecific value in t CO2 /€ million in sales
35.74

34.87

607,059 627,628 615,456 602,807
AsiaSouth America

11 %
11 %

North America

57 %

32.01

In t CO 2

21 %Europe32.94

181,727

181,270

184,288 183,239
24 %

Asia
South America

10 %North America

26 %2008/09 2009/10 2010/11 2011/12
Europe40 %2008/09 2009/10 2010/11 2011/12

We produced 183,239 metric tons of CO2 with our
production-related energy consumption (previous
year: 184,288 metric tons). These are broken down
into 43,237 metric tons (previous year: 44,358 metrictons) of direct CO2 emissions stemming from primaryenergy consumption and 140,002 metric tons (previous year: 139,930 metric tons) of indirect CO2 emissions that arise from the consumption of secondary
energy. This represents a decline in total productionrelated CO2 emissions by 1,049 metric tons from theprevious year as a result of less production in Europe.
We decreased our energy consumption by
7,100 MWh and generated approximately 4,520
metric tons fewer CO2 emissions than the previous year by optimizing our production processes,
installing better equipment, and changing employee
behavior.
The specific CO2 emissions amounted to 32.01 metric tons per € million in sales (previous year: 32.94
metric tons). This is equivalent to a 3 percent reduction (previous year: 6 percent reduction).

Compared to the reference year 2008/09, we reduced specific CO2 emissions by 10.4 percent. We
thus achieved our aim of reducing our specific CO2
emissions in relation to sales by 10 percent by fiscal
2015/16 ahead of schedule.
Regional distribution of CO2 emissions shows that 40
percent (previous year: 41 percent) were released inEurope. This is because the majority of our sites are
based in Europe and they also have high levels of vertical manufacturing. We generate 26 percent (previous year: 26 percent) of emissions in North America,
followed closely by Asia with 24 percent (previous
year: 22 percent). South America accounts for 10
percent (same as the previous year) and Africa lessthan 1 percent (same as the previous year).
If the regional CO2 emissions are correlated to sales
in the respective region, the highest figure by far isfor North America with 55 metric tons of CO2 per €million in sales. This is followed by Asia at a considerable distance (31 metric tons of CO2 per € million insales), Europe (27 metric tons of CO2 per € million

Voith Sustainability Report 2012 I 27

Environmental Responsibility

in sales), and South America (26 metric tons of CO2
per € million in sales). While the figures for Asia andEurope were mainly caused by high regional sales,
the figures for South America reflect the high percentage of hydro power in the electricity mix.
Travel-related emissions
As a company with a global manufacturing base, we
generate a high level of transport-related emissions
thanks to our high transport volume and employee
business trips.
Goods transport
The CO2 emissions resulting from our transport ofgoods amounted to approximately 37,240 metrictons (previous year: 55,615 metric tons). This significant decline can be attributed to a lower transportvolume and optimized logistical planning due in partto less air transport. In addition, our logistics providers continuously upgrade their fleets and deploy
more environmentally friendly vehicles. Most transport either occurs or starts in Germany. Transport
makes up 15 percent of the total CO2 emissions(previous year: 20 percent).
The analysis was based on incoming and outgoingmaterials data and the associated transport andgreenhouse gas emissions factors from the German
Federal Environment Agency’s ProBas and TREMOD
databases and information from 16 of our logistics
providers.
Business trips
We avoid unnecessary business trips wheneverpossible and practical. All our employees book theirbusiness travel through a central service provider inaccordance with our internal “Authorized BusinessTravel” Group Directive. The greenhouse gas emissions produced are tracked centrally and calculatedusing 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 countries, the individual sites record fuel28 I Voith Sustainability Report 2012

consumption in our sustainability database. In thereporting year, Voith generated greenhouse gas
emissions of 32,325 metric tons of CO2 arising frombusiness trips taken by company car, rental car, train,
or air (previous year: 34,486 metric tons). Cars andlong-haul flights account for most of these emissions
with 50 percent and 47 percent respectively. Business trips make up 13 percent of the total CO2 emissions (previous year: 13 percent).
Pollutant emissions
In the data collected on air-borne pollutants from production, we found that the data quality was not uniform in fiscal 2010/11 and only some of the information could be used as a result. We developed a newquery methodology in the reporting period: To beable to identify critical sources of emissions, thresholds oriented around the reference and limit valuesof the EU directives were defined for every systemand process. The goal of improving data quality inrecording air-borne pollutants from production by
fiscal 2012/13 was thus reached ahead of schedule.
Ozone-depleting substances are mainly produced atVoith in production processes. Coolant used in airconditioning and cooling systems, etc. was identified
as the source of CFCs and HCFCs. Halon occurs inthe supplier parts treated with gas in South Africa.
Most of the remaining air-borne pollutants originate
from energy generation.
We also calculated pollutants for goods transport,
e.g. NOx (258 metric tons), SOx (119 metric tons),
VOC (151 metric tons), NM-VOCs (volatile organic
compounds without methane) (35 metric tons) andparticulate emissions (6.2 metric tons of which 5.8
metric tons of particular matter), POP (0.01 metrictons), HAP (0.9 metric tons), SF6 (0.06 g), heavy metals (0.06 metric tons). Significant quantities are thus
incurred for NOx, SOx, VOC, and NM-VOC.
If the air-borne pollutants with significant quantities
are considered and their transport-related emissions
are correlated to the total emissions from goods
transport, business trips, and production, goods

Air-borne pollutants
In t

2011/2012

Production-related air-borne pollutants

In t

2011/2012

Pollutants caused by business trips

CFC*

<1

CFC*

<1

H-CFC*<1

H-CFC*<1

0

Halon*

Halon*

0

Methyl bromide*<1

Methyl bromide*n.a.

Volatile organic compounds (VOC)

n.a.

Volatile organic compounds (VOC)201

Of which volatile org. compounds without methane(NM-VOC)n.a.

Of which volatile org. compounds without methane(NM-VOC)

46

Persistent organic pollutants (POP)n.s.

Persistent organic pollutants (POP)<1

Hazardous air-borne pollutants (HAP)n.s.

Hazardous air-borne pollutants (HAP)2

Dust emissions

6
5

Dust emissions

9

Of which inhalable fractionn.a.

Of which inhalable fraction

Heavy metals

n.s.

Heavy metals

<1

NOx

n.s.

NOx

159

SOx

n.s.

SOx

82

SF6

n.a.

SF6

<1

From production-related energy consumption

Pollutants caused by goods transport

CFC*

<1

CFC*

<1

H-CFC*

2

H-CFC*<1

Halon*<1

Halon*

Methyl bromide*n.a.

Methyl bromide*n.a.

Volatile organic compounds (VOC)

462

Volatile organic compounds (VOC)151

Of which volatile org. compounds without methane(NM-VOC)31

Of which volatile org. compounds without methane(NM-VOC)

35

Persistent organic pollutants (POP)<1

Persistent organic pollutants (POP)<1

Hazardous air-borne pollutants (HAP)20

Hazardous air-borne pollutants (HAP)<1

Dust emissions

37

Dust emissions

6

Of which inhalable fraction

14

Of which inhalable fraction

6

Heavy metals<1

Heavy metals

<1

NOx

412

NOx

258

SOx

897

SOx

119

SF6

<1

SF6

<1

0

n.a.= not available, n.s.= not significant* Ozone-depleting substances in t CFC 11-equivalent

Voith Sustainability Report 2012 I 29

Environmental Responsibility

transport accounts for 31 percent of NOx and 11
percent of SOx emissions. Other emissions include
the ozone-depleting substances CFCs (0.02 metrictons), HCFCs (0.093 kg) and halon (0 g). The quantities are not material compared to the analogous
production-related emissions.
We also determined the air-borne pollutants emitted
as a result of our business trips for the first time. In fiscal 2011/12, we emitted 159 metric tons of NOx, 82
metric tons of SOx, 201 metric tons of VOC, 46 metric tons of NM-VOCs (volatile organic compounds
without methane), and 5.8 metric tons of particulate
emissions (of which 5.2 metric tons of particulatematter). In addition, we produced emissions of 0.01
metric tons of POP, 2 metric tons of HAP, 0.08 g of
SF6 and 0.083 metric tons of heavy metals. Significant quantities are incurred for NOx, SOx, VOC, and
NM-VOC.
Supplier Management
Page 18

If the air-borne pollutants with significant quantities
are considered and their travel-related emissions arecorrelated to the total emissions from goods transport, business trips and production, business trips
account for 19 percent of NOx and 8 percent of SOx
emissions. Other emissions include the ozone-depleting substances CFCs (0.35 kg), HCFCs (0.002kg), and halon (0 g).
New goals
Reduce energy demand in relation to annual sales
by 20 percent based on fiscal 2011/12 by fiscal
2017/18• Define ecological assessment criteria when engaging logistics service providers by fiscal 2013/14•

30 I Voith Sustainability Report 2012

Raw material consumption and recycling
At Voith, we work on concepts and solutions to increase resource efficiency and recycling quotas inproduction and administration. In fiscal 2008/09,
we started tracking raw material and material use
Group-wide. As a result, we now have a four-year
sequence showing that Voith purchased 213,000
metric tons of material from suppliers in the reporting period, broken down into around 24 percent raw
materials, 3 percent auxiliary materials, 65 percent
semi-finished goods, and 8 percent packaging. The
material costs account for around 41 percent of total
operating costs in fiscal 2011/12.
Approximately 48 percent of all materials used in fiscal 2011/12 were recycled. For raw materials thisquota was 48 percent, for auxiliary materials 49 percent, semi-finished products 45 percent, and packaging 75 percent.
To improve data quality for material procurement, thevolumes of the materials purchased started being
systematically and comprehensively recorded on
October 1, 2013 in Voith’s ERP systems. The projectis being coordinated with Purchasing department.
Waste
In the reporting year, Voith produced 51,488 metrictons of waste internally without external waste collection for third parties (previous year: 58,985 metrictons). Of this total, 72 percent (previous year: 71 percent) was comprised of non-hazardous waste and28 percent (previous year: 29 percent) of hazardous
waste. Compared to the previous year, this represents a reduction (absolute) of 4,597 metric tons of
non-hazardous waste and 2,899 metric tons of hazardous waste. The specific waste volume amounted
to 9 metric tons per € million in sales (previous year:
10.54 metric tons). Because the waste volume compared to the previous year fell while sales increased,
the core indicator waste/sales dropped by 14.7
percent from the previous year. Compared to fiscal
2008/09 we even lowered the specific waste volume
by 25 percent and thus achieved our original target
ahead of schedule.

At the same site, we produced around 40 metric tons
less wood waste through reuse in fiscal 2010/11.
Individual parts of used pallets and packaging boxes were recycled to make new boxes and stabilize
shipped products.

Waste

Specific value in t/€ million in sales
11.99

11.18

10.54

9.00

Absolute value in t
60,986
Asia

58,11058,98551,488South America

13 %North America

23 %
9%

Europe55 %2008/09 2009/10 2010/11 2011/12

The waste produced by Voith is disposed of by an
external waste disposal and recycling company; we
do not transport any waste. Waste is not imported
or exported.
When broken down by region, it is clear that the largest waste volumes are generated at our production
sites in Europe and South America. Most of Voith’s
machine engineering sites, which produce a large
quantity of metal waste, are located in Europe. Drivers of this waste volume are the high percentage of
project business and a lower level of standardizationcompared to series production. The volume of waste
produced in South America is mainly caused by thecasting-sand waste from the foundry in São Paulo.
Practical examples
In our Sustainability Report 2011, we described ongoing measures to lower casting-sand waste fromour foundry in São Paulo. In fiscal 2011/12, weprevented another 800 metric tons of casting-sandwaste through these measures, which brought the
total reduction since fiscal 2008/09 to 5,300 metrictons annually.

A workshop series on reducing, separating, and recycling waste was organized at the US sites in Wilson, Waycross, Summerville, Shreveport, and WestMonroe. In these workshops, 59 detailed measures
were defined together with these sites and implementation was initiated. These measures were jointly
estimated to reduce waste by 91 metric tons.
New goal• Reduce the volume of waste in relation to annual
sales (metric tons/€ million in sales) by 25 percent(compared to fiscal 2011/12) by fiscal 2017/18
Water and wastewater
In total, Voith consumed 1,732,425 cubic meters(previous year: 1,655,887 cubic meters) of freshwater. Freshwater is defined as the sum of surface
water, groundwater, and mains water. Rain waterand geothermal water are not included in the figures.
The highest percentages are 48 percent groundwater (previous year: 46 percent) and 43 percent water from the public water supply (previous year: 44
percent). 9 percent (same as the previous year) was
attributed to surface water (of which 64 percent wascooling water from the adjacent lake for the plant in
Högsjö, Sweden).
The specific freshwater consumption amounted to0.30 cubic meters per € thousand in sales in thereporting year. Compared to the previous year, thespecific freshwater consumption rose by 2.3 percent. This can mainly be attributed to the fact thatthe absolute freshwater consumption increased as aresult of increased cooling water needs at Garchingand Wimpassing site. At the same time, measures
to lower freshwater consumption implemented atother sites were offset by increases in testing activities at our development centers in fiscal 2011/12.
After reaching the target for specific freshwater consumption ahead of schedule the previous fiscal year,
it was not possible to continue this positive trend for
Voith Sustainability Report 2012 I 31

Environmental Responsibility

the time being. We are still sticking to our target for
fiscal 2017/18.

we analyze water use and the auxiliary materials
used.

Freshwater consumption
63 percent of our global freshwater consumption
in the Voith Group stemmed from Europe (previous
year: 58 percent). This is due to the large numberof production sites situated there. In addition, threepaper machines are currently undergoing pilot operation in Heidenheim, Ravensburg (Germany), and
St. Pölten. 17 percent (previous year: 19 percent) offreshwater consumption was accounted for by Asia
and 11 percent (previous year: 12 percent) by SouthAmerica. The main driver behind this is the foundryat the São Paulo site. North America accounts for 9
percent (previous year: 10 percent), with the drivers
here being yarn and press fabric production. Openwater cycles and water main breaks also contributeto water consumption.

Freshwater consumption

Wastewater volume
The wastewater volume totaled 1.509 million cubic
meters (previous year: 1.576 million cubic meters).
Approximately 50 percent (previous year: 40 percent)of the water was discharged into rivers, lakes, or thesoil and around 50 percent (previous year: 60 percent) was discharged to the sewage system.
For the first time, the contaminant level in the wastewater was measured for fiscal 2011/12. The biochemical oxygen demand (as BOD5) amounts to
11 metric tons; the chemical oxygen demand (COD)
45 metric tons. The overall suspended matter content is 13 metric tons, heavy metals amount to 0.056
metric tons, nitrogen is a total of 2 metric tons, andphosphorus is at 0.4 metric tons.
In addition, we developed a concept to lower wastewater volumes. Based on the identified main drivers,

32 I Voith Sustainability Report 2012

Specific value in m3/€ thousand in sales
0.35
0.31

0.30

1,629

1,656

0.30

In thousand m3
1,805

1,732

Asia

17 %

South America
North America

11 %
9%

Europe63 %2008/09 2009/10 2010/11 2011/12

Practical examples
At our Heidenheim site, we identified and fixed leaksin the pipes by performing comparative EcologicalBusiness Management analyses. This allowed us toreduce consumption of freshwater by 7,000 cubic
meters annually.
Two defective automatic valves caused consumption to increase by more than 850 cubic meters permonth at the West Monroe site. Quarterly reportingon freshwater consumption per site, which was introduced in fiscal 2011/12 made it possible to identify
this increase early on and make the appropriate adjustments. The environmental benefit: Annual savings of 10,000 cubic meters of freshwater.

The process of closing open water cycles was initiated at the São Paulo and Garching, sites. The measure described in the Sustainability Report 2010 toreplace freshwater with treated water from Voith’s
own treatment facility at the São Paulo site was vigorously pursued. In fiscal 2011/12, we started installing
pipes to supply the foundry with treated water andretrofitting the cooling system. Work was completed
in December 2012 and operations got underway inJanuary 2013. This measure will lower freshwater
consumption by roughly 25,000 cubic meters every
year.
As reported in last year’s sustainability report, we
had conspicuously high levels of water consumption in our shower facility at the Shanghai site in fiscal
2010/11. Thanks to the measures introduced at the
beginning of 2012, we successfully reduced freshwater consumption by 28,000 cubic meters within
the same fiscal year.
New goal• Reduce the specific freshwater consumption by 10
percent in relation to annual sales by 2017/18 (reference value fiscal 2011/12)
Biodiversity
Several of our production sites are directly next to orwithin water conservation areas. This includes ourVoith sites in Heidenheim and Mönchengladbach(Germany), which are both inside water conservation
areas and Manchester (UK) and São Paulo which are
directly adjacent to water conservation areas.

In the reporting period, we conducted a risk analysis on the varying availability of water by region for
all sites around the world. We use the “Water Risk
Filter” methodology developed by the World Wildlife
Fund (WWF) and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG). The result showsthat five of our sites (in Poland, Denmark, and India)
are now already situated in regions where the availability of water is classified as being at risk. One sitein South Africa will need to prepare for a water shortage by 2025. In addition, we identified sites in areas
where biodiversity is under threat. This includes oursites in São Paulo, Ipoh (Malaysia), and Karawang(Indonesia).
In the reporting period, the Group used land with a
total area of around 3.3 km2. 52 percent of this landis developed and 48 percent undeveloped. We strive
to minimize the land we use and to use developed
land as efficiently as possible.
Noise emissions
Three significant noise emissions were reported
during the reporting period: Complaints about noisecame from the neighborhoods around the Germansites Frankenmarkt and Düren during construction
work. Suitable measures to prevent and reduce noiselevels were undertaken immediately. During work on
the dust removal system of the foundry at the São
Paulo site, a unit was installed that exceeded thepermissible noise emission values. Once this was detected, measures to reduce noise were implemented
immediately.

Through extensive safety precautions and our environmental management system, we ensure thatwater quality is protected and make a contribution
to protecting biodiversity at all of our sites.

Voith Sustainability Report 2012 I 33

Product Responsibility

34 I Voith Sustainability Report 2012

People and the environment are facing new challenges around the world
as a result of the growth of major cities. The high traffic volume demands
innovative mobility concepts. In cities like New York, Denver, Salt Lake City,
Houston, or Chicago, Voith promotes environmentally friendly mobility withits drive technologies for urban rail systems, city buses, or ferries and thus
supports the reduction of CO2 emissions.

04

Product Responsibility
At Voith, responsibility for our products andprocesses starts in development.
Our approach is to continuously reduce theenvironmental impact of our products and services
both during production and while in use. Our
customers thus simultaneously benefit from highquality and resource-efficient Voith products.

Product Responsibility

4.1 Approach and Organization
Overview of our
Goals
Page 79

At Voith, we rely on a diversified portfolio. With our
products and services, we help national economies
and societies to develop with a view to the long term.
We orient these efforts around global megatrends
such as climate change and urbanization.

To develop high-quality products that are as environmentally friendly as possible, we analyze key systems
and individual products systematically for their primary environmental impact based on the Life Cycle
Assessment (LCA).

In the development and production of our products
and solutions, we work intensively with forwardlooking developments that are tailored to the requirements of our markets. Our responsibility for products
is based on three strategic principles:• Minimizing the environmental impact of selected
products as early as the development phase• Quality and safety• Dialog with our customers

The responsibility for product development is organized differently in the various Group Divisions.

Minimizing environmental impact
Our strategy is to ensure that our products contributeto conserving resources and protecting the environment. We achieve this, on the one hand, throughthe responsible use of raw materials in our production processes and the continuous reduction of CO2
emissions along our value chain. On the other hand,
it is our goal to make the use of our products as
resource- and energy-efficient as possible for ourcustomers. Because most of our products are so
durable, the primary environmental impact occurs
in the use phase and not in the production phase.

36 I Voith Sustainability Report 2012

Quality and safety
A second strategic principle in the area of productresponsibility is our quality and safety standard. We
have implemented a Group-wide risk and quality
management system and use a number of recognized and internal standards – spanning research,
production, and after-sales service. As a result, we
can ensure that the high level of product quality andsafety remains the same.
Customer dialog
We have trusted business relationships with most of
our customers lasting years or even decades. The
dynamic markets for raw materials and energy alongwith increasing regulation mean that innovative andenvironmentally friendly products are also playing an
increasingly important role for our customers. We
work intensively with our customers to understandtheir exact interests. We also conduct surveys on aregular basis to determine their needs and level ofsatisfaction. We use their feedback to identify where
we need to improve and adapt our products systematically.

4.2 Minimizing the Environmental Impact in Development
At Voith, we make targeted investments in researchand development (R&D): Investment expenditures totaled € 267 million in fiscal 2011/12. This represents
4.7 percent of our sales (previous year: 4.6 percent).
Aspects of environmental protection and resource
efficiency are included in the list of items to be taken
into account in our research and development work.
Our goal: To continuously improve products so thateach new product is more efficient than the last.
Our customers appreciate the fact that more than
one-quarter of sales generated by our Paper Division
stemmed from environmental technologies and systems for recycled paper treatment in fiscal 2011/12.
Products with added value
As a company, we aim to shape growth and development to meet the needs of tomorrow. Consequently,
we work on products that can meet global energy
demand reliably and over the long run with climatefriendly renewable energies – for example, technologies for the use of ocean energy (wave power, tidal
currents) as well as turbines and wheels for hydropower plants that improve the oxygen content of thewater or contain components with oil-free lubrication. Another focus of our research and development
work is to develop new solutions for drive systems

for industry, ships, trains, and commercial vehicles.
We also manufacture technical components that increase energy and resource efficiency. One of ourservices is to help our customers structure their processes more efficiently. We advise, for example, automotive suppliers in how they can lower their rejectrate and energy consumption. This has a positiveeffect on resource productivity.
Product development tools
To develop energy- and resource-efficient products,
we systematically analyze the environmental impact
of existing and new components and products using,for example, benchmarks and analyses of material
efficiency and market trends.
Because environmental technologies are relevant for
the entire Group, Voith formed the Eco-Innovationteam in October 2011: This team was created to improve the cross-divisional eco-innovation process byidentifying fields of activity and coordinating collaboration internally as well as with other companies, universities, and departments. Besides representatives
from our central Eco Technologies function, the teamalso includes representatives for corporate strategy
as well as the R&D and innovation departments from
our Group Divisions.

Our approach is to continuously reduce
the environmental impact of our products
and services both during production andwhile in use.

Voith Sustainability Report 2012 I 37

Product Responsibility

We conduct Life Cycle Assessments (LCA) for selected products: An LCA tracks the environmental
aspects throughout the entire life cycle of a product– from the extraction of the raw materials through to
product utilization up to disposal. Voith upholds theprinciples set forth in the international LCA standard
ISO 14040.
The upstream and downstream processes are factored in, such as raw materials and supplies. The
results of these extensive assessments serve as animportant source of information for determining andthus reducing the environmental footprint of a new
product starting in the development phase.
A current example is the LCA for one of our paper
machines. We will publish the results of this assessment during the course of 2013. We inform our customers of LCA results in what are known as environmental declarations, which we also submit with our
proposals.
Megatrend: Urbanization
More and more people are living in cities. Urbanization also means increasing mobility both in andbetween cities. How can this trend be linked to the

38 I Voith Sustainability Report 2012

requirement for environmental sustainability? One
example can be seen in hydrodynamic retarders
for buses and trucks. These retarders reduce bothbrake wear and dust emissions that accumulate
when braking.
In November 2011, we won the European Transport
Prize for Sustainability for our new secondary water
retarder. This award recognizes companies in thetransport industry that combine economic successwith social responsibility and eco-friendly activities.
To reduce the amount of waste our customers generate, and to ensure that waste is disposed of andrecycled properly, we charge a deposit on our retarders.
Our DIWAhybrid system, which we designed together with the bus manufacturer Solaris for its model
series Urbino 18, is another example of where our
products are being used for environmentally friendly
mobility. In this articulated bus with a parallel hybrid
drive, a 150-kilowatt electric motor supports thediesel engine. The system with its wear-free, highcapacity condensers stores energy, saves fuel, andreduces wear and tear. These buses are alreadyused, for example, by the regional German public
transportation operator Bochum-Gelsenkirchen
Straßenbahnen AG.

4.3 Product Quality and Safety
In our electric control and drive technology productgroup, we significantly improved the material efficiency of a servomotor (model SMS A41201): Optimized design principles and a reduced number ofcomponents made it possible to reduce materials by
38 percent and 99 kilograms of steel for every engine
produced – this also represents 168 kilograms fewer
CO2-equivalents in the production phase.
Megatrend: Climate change
Our product portfolio includes plants for making useof hydro power, ranging from small-scale machines
to large plants. We are also working intensively on
making ocean energy usable in the future. To datewave and tidal power is barely used on a global level.
We developed a 110-kilowatt pilot turbine for one of
the world’s largest planned tidal-power parks, theSeaturtle Tidal Park in South Korea, which was put
into operation in spring 2011. A second machine foranother location is currently under construction andwill be installed in 2013.
In order to minimize the negative impacts for man
and nature, we ensure that the appropriate standards
are complied with during the production and installation processes (for example, ISO 9001, ISO 14001,
and OHSAS).

We are known for the quality and long-life cycle ofour plants and products. A key quality characteristicof our products is safety – their correct and safe operation. To guarantee that product quality and safety
remain consistently high on a global level, we implemented a Group-wide risk and quality management
system. This defines goals, processes, and methods for the development and production phases.
Our quality departments are responsible for theirimplementation.
We have set out the guidelines for dealing with technical risks and quality in a Group Directive. The Group
Divisions and their companies define and supplement
this directive – for example, with a safety policy forthe entire life cycle of a product. Our Group Divisions
also determine the type and scope of the necessary
employee training.
Quality tests
The management system for technical risks and quality (TRQM) and the Group Division-specific standards
set out suitable methods and tools to guarantee thequality of our products. Among other standards they
are based on the international quality management
standard ISO 9001.

Voith Sustainability Report 2012 I 39

Product Responsibility

Consequently, we calculate, analyze, and simulate
various operating states during product development: Our research and development centers makecomputer-based calculations and perform model
tests regarding the performance or safety of the machines.

Our quality management regulates 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 ecology,
including their environmentally-conscious disposal.

In many areas, we utilize the latest methods of analysis, such as Failure Mode and Effect Analysis (FMEA).
We validate the results of the analyses and the measures derived from these in relevant test programs. In
the process we take the relevant regulations into consideration; whether statutory, imposed by customers, or determined by us. Voith products are subject
to stringent acceptance criteria. Our TRQM system
also outlines procedures for taking decisions thatentail risks. Checklists ensure that regulations, suchas those relating to safety, are complied with as prescribed. These checklists are updated continuously.

Customer support
We offer our customers training courses where theylearn how to use our systems, drives, and units correctly. This allows them to achieve the best-possible
consumption levels and operating costs across thelife cycle. Furthermore, we inform them about therisks associated with both use and disposal.

We train employees on the requirements of our quality management and on process-oriented standards.
All employees involved have Group-wide access to
Web-based databases and wikis allowing them tolook up standards, norms, process descriptions, andwork instructions at any time.

40 I Voith Sustainability Report 2012

We have developed product-specific training courses for many of our products. For example, we offer
training courses on how to drive using retarders andhow to sail using Voith Schneider propellers. In addition, we advise paper producers how to reduce thespecific use of energy and freshwater in production
and increase the percentage of recycled fiber used.
We also train our customers’ employees in hydropower plants on the best way to operate a power
plant. Aside from this, they can also learn more in thedetailed manuals we provide.

4.4 Customer Dialog
Voith uses a variety of methods to measure andanalyze customer satisfaction – this is an indispensable part of being a service-oriented company. Suchprocesses are part of our integrated risk and quality
management system; we have its effectiveness externally checked as part of the ISO 9001 re-certification process. We assess customer satisfaction indifferent ways within the Group. It includes conducting face-to-face and telephone interviews as well as
written or online surveys.
When it comes to selecting the appropriate assessment method, it is vital to consider which target groupthe analysis is aimed at. Here, specific regional aspects and the role of the customer’s individual pointof contact within their organization must be taken
into consideration.

Depending on the subject matter and focus of thecustomer satisfaction analysis, the survey results
are either gathered and assessed by the particularGroup Division Holding or by the relevant operating
unit. In the majority of cases, we focus our customer
satisfaction analyses on certain regions or customers, and conduct global analyses in individual cases.
To determine the initial situation, we ask how satisfied
customers currently are and check how happy they
are based on their experiences with our products andservices. By analyzing how greatly individual products and service parameters (such as delivery punctuality and customer service) affect overall customer
satisfaction, we can identify the areas in which ourcustomers believe we need to improve.

We are known for the quality and long-life
cycle of our plants and products.

Voith Sustainability Report 2012 I 41

Responsibility for Employees

42 I Voith Sustainability Report 2012

In fiscal 2011/12, we employed over 4,800 employees in North America.
We offer them diverse on-site employment and professional responsibility,
together with challenging tasks and the freedom to think creatively, whether
they work in machine and plant engineering or in service business. With ourwide range of service concepts, our employees work together with customers along the entire value chain: for example, from assembly to technicalcleaning and maintenance of production plants.

05

	Responsibility for
Employees
Our success is based on and driven by our qualified,
motivated, and committed employees. We strive
to be a responsible employer with fair working
conditions and high performance expectations for
employees in every country in which we are active.

Responsibility for Employees

5.1 Approach and Goals
Overview of our
Goals
Page 79 ff.

Globally we had 42,327 (previous year: 40,691) fulltime equivalent employees and employed 46,469(previous year: 47,728) people in fiscal 2011/12. The
consolidated number of employees therefore rose by
4 percent. We employ around 63 percent of our employees in Germany and the rest of Europe, around
26 percent in America, around 10 percent in Asia,
and less than 1 percent in Africa. In the reporting period, 1,206 people worldwide successfully completed
their vocational training with us. Women make up
21 percent of the overall workforce. In the reporting
period, the number of temporary employment contracts rose from 5,664 employees (6.8 percent) to
6,047 employees (14.7 percent). Across the Group,
around € 2,096 million (previous year: 1,983 million)
were spent on wages and salaries and € 377 million (previous year: 357 million) were spent on social
security contributions, retirement pensions, and assistance. The labor turnover rate was 15.8 percent. In
machine and plant engineering the rate was 8.2 percent and it was 22.7 percent in the service business.
We remunerate our employees in line with the market
and in relation to performance. Remuneration is notgender-dependent and is based on specialist andpersonal qualifications and the performance produced. It incorporates country-specific differences,e.g. for retirement pensions. At German sites, thelevel of wages and salaries is regulated by collective
bargaining. At sites outside Germany we ensure thatany locally-valid minimum wage is complied with andthat this guarantees the livelihood of our employees.

44 I Voith Sustainability Report 2012

Our actions are based on the Voith Code of Conduct.
We respect human rights and do not tolerate any
discrimination. Our employees have the right to form
trade unions. In the reporting period, 87 percent of
our employees in Germany were under collective
agreements. Globally, this figure was 74 percent.
Exchanges between the Board of Management,Group personnel management, and local personnel
management take place with the involvement of thelocal works council. The relationship within the individual countries is arranged taking national collective
agreements and works agreements into consideration. Fundamental changes are communicated to
employees at all our sites by the Group management
or local management.
Our focus is on long-term employment relationships,
and we aim to offer our employees attractive positions that are suited to their particular situation as wellas their specialist capabilities and skills. To do this,
we employ various Group-wide measures to balance work and family life, we are expanding healthmanagement, and we promote a culture of lifelong
learning.
Many of our employees start their p­ rofessional lifeat Voith: We educate young people in over 40 commercial, technical, and industrial jobs and usuallyemploy them once they have finished their training.
Collaborations and international personnel marketing
programs at universities also ensure on a global levelthat students come into contact with us early on andchoose us as an employer.

In the regions where we are active, we face different challenges when recruiting qualified personnel.
Demographic change has a different effect in Europe
and North America than in regions such as India,
Brazil, or China. Our personnel management therefore implements measures appropriate to the specificconditions of the regional personnel market.
Collecting and evaluating data
In order to use information in a targeted way, a globally uniform human resources IT system is being introduced from fiscal 2012/13. From fiscal 2012/13
a core dataset containing fundamental information
should be available to all employees. The data efficiently supports our personnel management
processes in a targeted way. The data protection
requirements of each country were taken into consideration as part of the project and it was ensured
that they were complied with.
Subject areas
Training and further education
Our focus is on long-term employment relationships,
which means that it is important our employees are
motivated to engage in lifelong learning. To support
this, we offer our employees a wide range of internaland external training courses. Our personnel development measures are in line with the challenges of
the region, the field of work, or the respective management level.

Diversity, equal opportunities and familyfriendly policy
We see the diversity of our employees across all
hierarchical levels as an advantage in international
competition. At the same time, we are responsible
for ensuring our employees can openly express theirindividuality and culture without needing to fear prejudices. Furthermore, we want the people who workfor us to be able to achieve the best possible worklife balance.
Occupational health and safety
Thanks to our occupational health and safety measures, we are reducing our accident rate; furthermore, by promoting health we are maintaining andimproving the health and performance of our employees.
New goals• Develop and introduce Group-wide KPIs in the area of HR by fiscal 2013/14• Collect master data on all employees worldwide via
database from fiscal 2012/2013

Voith Sustainability Report 2012 I 45

Responsibility for Employees

5.2 Training and Further Education
We are only able to offer our high-quality products
and services thanks to the excellent staff we employ. In order to be able to maintain this standard
and develop our offer even further, we help our employees to expand their capabilities and ensure theirknowledge is completely up to date. To this end weoffer an ambitious program of internal and external
training courses and qualification measures to buildand expand specialist, social, and intercultural skills.
As an attractive employer, we constantly support andchallenge our employees while offering them the opportunity to continually improve their personal expertise. This is the only way we can ensure that competent employees commit to us in the long term andthat we achieve our high performance expectations
for customers. We aim to be a company with which
employees want to spend their entire working life.

Advanced training and further education
We have developed a three-tiered system for ourfurther education and qualification measures that is
in line with the training and development stages for
employees. The internal training courses on offer are
split into categories: IT, safety at work, health andenvironmental protection, technology, quality, languages, economics, personal development, teamwork, and operational excellence.

Leadership Concept
A good relationship between employees and managers has a positive effect on work and is necessary fortargeted HR development. Our Leadership Concept
stipulates that managers have an annual meetingwith each employee. This meeting is structured, held
in a positive atmosphere, and is specifically preparedfor by both parties. The meeting addresses the working environment, work tasks, and key work focuses.
Professional objectives and career prospects should
also be discussed, together with the need for training and development measures. In fiscal 2011/12,
87 percent of employees in machine and plant engineering had an interview of this kind. Another central
point of compulsory meetings to agree goals is theindividual contribution of the employee towards theachievement of corporate goals.

The Voith Management School qualifies managers,
project managers, and employees from Purchasingand Human Resources. The training courses areagreed by Human Resources with those responsible
in the regions and implemented on-site.

46 I Voith Sustainability Report 2012

All Voith senior executives pass through the Voith
Academy, which was established in 1999 as a central education and training program. Ensuring that
executives understand the Leadership Concept is amajor concern for us. All members of the Corporate
Board of Management are personally involved andare themselves present at the Voith Academy.

Finally, at the third level are Voith Training Courses
with their wide-ranging further education offering.
These seminars are open to all employees. In addition to these three internal further education opportunities at Voith, we also work with external further
education providers.
In fiscal 2011/12, a total of 4,980 employees (previous year: 3,914 employees) took advantage ofinternal (and external) further education offerings at
German sites and completed over 127,491 hoursof further education (previous year: 132,000 hours).

In the reporting period, we devised a new management development program (Management Development Training Program). We intend to use this toprepare management staff at the different levels fortheir management tasks and establish a uniform,
Group-wide understanding of leadership. This concept helps us keep abreast of our global presence
and simplifies internal career paths.
To ensure that Talent Management is developed in amore targeted way, we introduced the “Talent Conference” process in fiscal 2010/11. This tool gives us
an overview of the status of and need for potential
managers in the regions and means we can continue
to improve development measures, recruitment, andsuccession planning across all four Group Divisions.
To this end we initiated a pilot project in China in thereporting period.
Vocational training at Voith
For more than 100 years we have been offering
young people in Heidenheim an education towards
different commercial, technical, and industrial jobs.
We are planning the opening of a new education center in Heidenheim for the end of 2013. As a result
we – in the truest sense of Dr. Hanns Voith’s philosophy – offer young people great career opportunities
right from the outset. In the reporting period, 1,206
apprentices were employed in the company worldwide (previous year: 1,246). Of our 950 apprentices
in Germany, around 440 work at the site in Heidenheim. We offered to take on all of our apprentices
in Heidenheim. However, some decided to continue
their professional development separately from Voith.

Attractive working environment
Good working conditions are essential for an attractive working environment. In Heidenheim alone, 88
employees celebrated 25 years with the company,
26 employees celebrated 40, and three employees
even celebrated 50 years working at Voith.

Working Environment
Further Information
Page 70 ff.

In the reporting year, the average length of service
across the Group was 8.3 years (previous year: 8.2
years). There are variations in this figure dependingon the region and business area: The labor markets
in China and Brazil are booming and there are a
multitude of attractive job offerings and promotion
opportunities. In regions such as China we have specifically increased our number of personnel over the
past few years. This is also reflected in our figures:
In fiscal 2011/12, the average length of service atVoith was 9.5 years in Europe and 7.6 years in North
America. In South America the average length ofservice was 5.3 years and in Asia it was 5.4 years.
In fiscal 2011/12, 6.6 percent of our employees left
the company at their own initiative (previous year:
7.8 percent).
New goals• Extend cross-divisional, standardized training programs for managers by fiscal 2012/13• Transfer the concept of the Talent Conference toother regions by fiscal 2012/13

Voith Sustainability Report 2012 I 47

Responsibility for Employees

5.3 Diversity, Equal Opportunities, and Family-Friendly Policy
Diversity
Further Information
Page 73 f.

Equal­Opportunities
Further Information
Page 73 f.

Voith unites people from a diverse range of cultures.
Cultural diversity and a balance between young andold as well as between genders are the basis for ourcompany’s creativity and growth. Innovation is bornout of different experiences, perspectives, and skills.
We accept the individuality of our employees andconsider the resulting unique capabilities vital for our
global success. People from many different countries
work for Voith. At 26 percent, the proportion of ouremployees over 50 years old is higher than the industry average. We have a policy of filling management
positions in our regions with local employees where
possible.
Equal opportunities for our employees
At Voith we recognize that every single individual isequal. Respect and appreciation for colleagues andcustomers are part of our company’s values. We do
not tolerate discrimination on the basis of gender,
culture, age, sexual identity, or any other personal
characteristic. Equal opportunities are codified in theVoith Code of Conduct and should be accepted by
all employees.

At Group level, the Compliance Committee monitors the implementation of and compliance with ourequal opportunities policy. At Group Division level,
the corresponding compliance organization, such as
our compliance officers, is responsible.
On the review date of September 30, 2012, at total of
8,652 women worked at Voith (previous year: 8,382).
As in the previous year this equates to 21 percentof the overall workforce. In our Senior Management
Circle, the share of women is 4.3 percent (previous
year: 3.3 percent). Our Senior Management Circle
contains employees from more than eleven different
countries.
In the reporting period, we began a global analysis
as part of the “Diversity & Inclusion” program in orderto obtain a specialized basis for region-specific fieldsof activity. Goals for this issue that had already been
set and published were also reviewed and if necessary, revised. Furthermore, we have named Diversity
Managers and sponsors in all regions who are tasked
with evaluating facts and figures, discussing with employees and managers, and processing initial ideas.

We strive to be a responsible employer
with high performance expectations for our
employees around the world.

48 I Voith Sustainability Report 2012

Overall, it appears that while several issues play a roleacross all the regions, they present different characteristics in each area.
New goal• For German sites: Increase the proportion of women in technical occupations based on the gender
distribution in the final year of study in engineering
disciplines from fiscal 2014/15
Family-friendly policy and flexible working timemodelsWe provide support to help our employees harmonize their work and family life. In fiscal 2011/12, 517
of our employees around the world (previous year:511) took advantage of parental leave as granted bylaw. Flexible working hours also contribute to balancing work and family life. This is why we offer a
range of part-time working models for employees – itis even possible for them to combine working fromtheir home office with working on-site. In Germany
we offer our employees mainly flexible full and parttime models.

For our employees’ children aged under ten there
are childcare places at various facilities, including 45
places at “KinderVilla” and 110 childcare places at“Kinderwelt” in Heidenheim. The site in Ravensburg
houses the “Villa Emma” daycare center.
In April 2012 the Voith Intranet page “Family & Job”
went online. This provides information on offers to
help ease the burden of private tasks for our employees. Interested personnel can also find informationon the issues of “Children & Job” and “Caring & Job”.
Thanks to an employee survey on the topic of caring
for dependents we have been able to conclude new
findings and fields of action for next year in order todevelop this issue further.
New goals• Extend the range of family support measures inGermany by fiscal 2013/14• Launch the Intranet page “Family & Job” for offers
at all German sites from fiscal 2012/2013• Establish a care hotline by fiscal 2012/2013

Voith Sustainability Report 2012 I 49

Responsibility for Employees

5.4 Occupational Health and Safety
In view of our ethical obligation as an employer, we
believe it is important to structure jobs and processes
in such a way that illness and accidents are avoided
to the best of our ability. Due to occupational healthand safety measures we ensure a low accident rate.
Thanks to preventative health protection measures,
we are also maintaining and improving the health andperformance of our employees.
In the reporting year, we brought into force the first
four of 28 Safety Group Directives (SGD) on the topic
of occupational safety. These define a globally binding minimum standard for occupational safety. They
were drawn up by the Safety Steering Team, a working group consisting of occupational safety experts
from selected divisions and regions. Each SGD isbrought into force by the Chairman of the Board ofManagement.
Occupational safety management
Occupational health and safety has been firmly embedded in our Group goals since 2009. To optimize
occupational safety and accident prevention, we introduced a comprehensive management system atall our production sites in 2009 and have continued
to develop it ever since. Into this, we have integrated
the requirements of the international standard for
occupational safety OHSAS 18001 (Occupational
Health and Safety Assessment Series). Investigating
all incidents and developing an internal audit system
are very important key elements of this system. This
helps to identify and eliminate potential hazards. All
our employees are integrated into the occupationalsafety program, which falls under the remit of the
Corporate Safety Management department. Our
guiding principles illustrate how safety-conscious
behavior is maintained at Voith:

50 I Voith Sustainability Report 2012

1. All accidents can be prevented.
2. Senior executives are responsible for the prevention of accidents.
3. Working safely is a requirement in the workplace.
4. The senior executives must involve all employees.
5. All work must be safe.
6. Management will monitor occupational safety
through audits.
7. All employees will receive occupational health andsafety training.

At Voith, managers are responsible for accident
prevention as well as health and safety. As part ofthe management system, the Corporate Board ofManagement sets specific objectives for the General
Managers of our Group companies who in turn passthese on to the senior managers in their particular
unit. The latter are responsible for ensuring that thehealth and safety targets that have been set are met
by running training sessions, providing information,and leading by example.
Our medium-term goal of reducing the accident frequency to less than two accidents per one million
working hours was broken down into the individualGroup Divisions and then embedded into goal agreements of managers and employees there. We oblige
our managers to support and comply with the regulations through goal agreements.
Investigating and avoiding accidents
Every accident at Voith is recorded and immediately
reported to line managers. Serious incidents must
be reported to the Corporate Board of Management
within 24 hours. Every accident is then systematicallyinvestigated by a team comprising those affected,
senior managers, and safety experts. This is thendocumented in a detailed incident report. The incident reports and any ensuing rules have been actively used in the individual divisions for three years
and are openly communicated on the Intranet. In thereporting period we introduced the “Flash-Information” channel of communication: In the event of accumulations of accident types or serious accidents,
all Group Divisions are informed immediately.
To evaluate our performance in the field of occupational safety, from fiscal 2012/13 we have added asecond figure to the accident frequency rate: the accident severity rate.

Group holding is responsible, investigates whether
the measures introduced are taking effect and how
they might be improved. For location-based audits,senior managers from a different division of the respective company conduct the safety meetings.
With regard to communication, we made progress
during the reporting period: At many of our sites, we
introduced defined scheduled communication via a
database. We also improved the quality of incident
reports and established the systematic recording ofnear-accidents. Through the further qualification ofauditors it was possible to optimize the quality of theaudits in terms of awareness-oriented safety dialogs.
Hundreds of internal audits were carried out acrossthe Group during the reporting period.

Frequency Rate
Accidents per 1 million working hours

13.9

6.7
4.7
2.8

2008/09 2009/10 2010/11 2011/12

Group-wide, we detect potential for improvement via
a two-tiered audit system and can therefore maketargeted adjustments: At selected sites, the Groupwide Corporate Safety Audit System, for which theRaising employee awarenessIn this regard, managers bear a special responsibility
for safety in the workplace. All our managerial employees are thoroughly informed, made aware, andtrained. They pass on their knowledge to their staff.
At the same time, managers are not just responsible
for training all employees on occupational safety:
They must also actively involve all of them when it
comes communicating about accidents. 75 percent
of managers had been trained by the end of the reporting period.
We have not yet achieved our goal of training all employees on occupational safety within one year of theintroduction of the management systems. We haveplanned refresher training sessions for 2012 at oursites in China, York, and São Paolo, as well as ourmajor offices in Germany including Heidenheim andCrailsheim.

Voith Sustainability Report 2012 I 51

Responsibility for Employees

To raise greater awareness of the issue of occupational safety, during the reporting period we introduced improvements on two points (among otherthings):As it has been shown that regular talks lead to better awareness than comprehensive, but less frequent instruction, occupational safety has become
the subject of daily or weekly discussions at many sites.
• We have boosted direct communication via senior
management, as opposed to indirect information,such as posters or e-mails.
•

The development of the accident figures indicatesthat the occupational safety management systemand the measures taken are having an effect: In thereporting period, there were 2.8 work accidents per
1 million working hours which shows a clear improvement when compared to fiscal 2010/11, during
which there were 4.7 accidents per 1 million working
hours. In fiscal 2009/10 the rate was 6.7. Following this, we have once again exceeded our goal of
reducing the number of work accidents to less than
five per one million working hours.
New goals• Reduce the accident rate to less than two accidents per one million working hours in the medium term

52 I Voith Sustainability Report 2012

Record accident severity by fiscal 2012/13
Implement benchmarking and goal-setting to reduce accident severity by fiscal 2013/14• Further develop Safety Group Directives by fiscal
2012/13• Form regional networks on occupational health in
the USA and China by fiscal 2012/13••

Health management
We as an employer place great value on the health of
our employees. As an international Group, we needto know how to deal with different regional framework
conditions. Our Group-wide standards take the special local requirements of our sites into account. Thismeans that our offering sometimes goes beyond theprofessional duty of care.
We would like our employees to handle their healthpro-actively, competently, and independently. To
promote this we are using the professional environment to develop health programs on selected topics.
Our health management is in line with long-term
trends in developed and emerging markets and theinternal information from our sites. This means we
can take measures appropriate to such widespread
illnesses as cardiovascular diseases, diabetes mellitus, infectious diseases, and mental illnesses.

Fields of activity

Field of activity
Corporate culture &healthy leadershipation

V i si o

n&

g

oa

Ev

Field of activity
Support in case ofillness & stress

a lu

tat

aly s

An

Occupational
healthmanagementisls

Im ple m enion

Conclusion of the pilot project in Salzgitter: Employees were given the opportunity to participate in an
optional health check, receive an evaluation of theircurrent health, and, together with support from medical staff, draw up measures to improve their fitness.
In addition, we determined the “health status” ofindividual departments and implemented various
measures, for example preventative actions for diabetics.
• Development and introduction of a framework for
return-to-work management in Germany.
• Development and planning of a strategy for standardized, occupational medical services for oursites in Germany.
• The canteen at our headquarters in Heidenheim
was audited for the first time in fiscal 2011/12 andwas certified according to the Job&Fit criteria of theGerman Nutrition Society (Deutsche Gesellschaft
für Ernährung). Fish is sourced from sustainablefisheries. We have developed quality criteria for allother sites.
•

De

Field of activity
Healthpromotion& prevention of illness

v elo p m e nt of
strat
egy andm e a s u re s

Field of activity
Safe & demographically appropriate
working environment

In the reporting year we defined four fields of activity
for health management: Support in case of illness
and stress, Corporate culture and healthy leadership,
Health promotion and prevention of illness and a safe
demographically appropriate working environment.
The basis for this was an internal analysis of the requirements and measures in 23 Voith companies inGermany and Austria (2010/11) and 47 companies
in international locations that we carried out during
the reporting period.
In fiscal 2011/12, we carried out the following measures, among others:

To keep our managers regularly updated on relevant developments in their area of responsibility, astandardized reporting system will be introduced infiscal 2012/13 and then further expanded in fiscal
2013/14. As a first step, the data available from existing data systems on the health of employees will beshown, for example absenteeism due to illness, andpresented by region. From the coming fiscal year, we
are aiming to record and analyze more complex data
via the new Group-wide HR database.
New goals• Extend the standardized reporting system by fiscal 2013/14• Roll-out standardized occupational medical services for our sites in Germany by fiscal 2013/14

Voith Sustainability Report 2012 I 53

Social Responsibility

54 I Voith Sustainability Report 2012

Voith has been active in North America for several decades. Together with
our employees, we are deeply rooted in the region and socially committed.
Our local sites help decide where our engagement is most useful: Ranging
from donations to local hospitals or charities, to the voluntary involvement of
our employees in helping children or families in need of aid.

06

	Responsibility
for Society
As a family company, we have always placed
great emphasis on our social responsibility. Today
the Group still supports numerous activities andorganizations in the areas of education, social affairs,
sport, and culture.
We achieve the greatest impact by funding
institutions at our local sites.

Social Responsibility

6.1 Approach and Organization
Overview of our
Goals
Page 81

Our social engagement consists of the activities ofVoith together with those of our linked foundations,the Hanns-Voith-Foundation (Germany) and Fundação Voith (Brazil). The latter is financed by contributions from local subsidiaries.

population. A further criterion is that we must be convinced of the recipient’s integrity. Eligibility for funding
is ascertained by our own research and by auditors.
Irrespective of these rules, Voith provides help in humanitarian emergencies that demand urgent action.

The Hanns-Voith-Foundation has been supportingand implementing social projects since 1953. The
Board of Management and the Foundation Council decide on the use of contributions. In Brazil wehave been making an active social commitment via
the Fundação Voith since 2004. The foundation has
since funded charitable projects with around US$ 2.2 million and is financed by Voith subsidiaries.
However, our social engagement in São Paulo extends back over 40 years.

Sponsorship aid – 2011/12 total € 2.515 million

In total, Voith spent around € 2.515 million on social
engagement in fiscal 2011/12, which is 6 percent
more than in the previous year. € 1.87 million was
expended by Voith, € 380,000 by the Hanns-VoithFoundation, and € 265,000 by Fundação Voith. Of
the € 2.515 million, € 1.4 million were used for donations and € 1.1 million for sponsoring measures. At
33.08 percent, the largest proportion was spent on
education. 27.17 percent was given towards sport,
24.39 percent went on social affairs projects and15.36 percent on cultural projects.
We fund projects according to defined, Group-wide
criteria. Activities funded by us and the organizations carrying them out must be recognized as being non-profit and applicable both internationally andinterculturally. In addition, it must be ensured that a
project achieves a broad-based effect, supports the
local community, or raises the attractiveness of thecities in which the Voith sites are located for the local

56 I Voith Sustainability Report 2012

By project
Culture15.36%
Social affairs
24.39%

Education
33.08%
Sport
27.17%We have established the following guidelines for how
we distribute our sponsorship aid: 30 to 40 percent
of funds is for educational projects (schools, higher
education facilities); around 20 to 25 percent is forsocial affairs projects; and 15 to 20 percent is for
sports and cultural projects respectively.
The amount of money that Voith can spend on social
engagement is fixed and is based on the earnings
before tax (EBT) of the previous year (upper limit: 1
percent of EBT; lower limit: 2/3 of the funding volumeof the previous year). If they exceed a certain amount,financial sponsorships need to be approved by asenior management unit. This can be done by the
management of the respective subsidiary or Group
Division and the Voith Corporate Board of Management, or by the Shareholders’ Committee.

6.2 Projects and Activities
Our Group Directive “Donations and Sponsoring”
published in 2009 gives the following definitions:“Donations are voluntary contributions from Voith toscientific, cultural, or charitable institutions without
consideration. In contrast, when sponsoring, Voith
has another goal besides funding: To receive anagreed consideration in the form of advertising.”
Our donations and sponsorship activities must be
traceable, transparent, and lawful – something wehave committed ourselves to upholding through ourGroup Directives and our Code of Conduct. Donations to political parties require the approval of the
Corporate Board of Management and the Shareholders’ Committee. In the reporting year, we did not
make any donations to political parties.
On behalf of the Chairman of the Board of Management, our Corporate Office coordinates our Groupwide social engagement activities. Our sponsorship
activities are managed by Group Communications.
Our individual Group Divisions can independently
launch their own aid and sponsorship projects. Ultimately, the management teams of the particular sites
are in the best position to judge where our help isneeded most urgently at a local level, thanks to theircontacts with local communities. The Corporate Office provides information every six months on contributions paid out and their recipients. Once a year,
the head of the Corporate Office reports directly to
the Corporate Board of Management.

We have defined the areas of Education, Social Affairs, Sport, and Culture as the thematic focuses ofour social engagement.
Education
The importance of a good education and training
for youths and young adults was already highly appreciated by the grandson of the company founder,
Dr. Hanns Voith. It is especially important to us to
support schools and universities. We have alreadysupported several projects in the past which aim
to rouse the interest of children, youths, and young
adults in natural sciences and technology. One example of this is the Knowledge Factory founded in2005 in Ludwigshafen with other companies, which
supports school education.
In addition, we sponsor school partnerships aroundthe world: In Austria as part of the “TopTechnik Program”, in the USA within the Adopt-a-School Program, and in Brazil through our cooperation with
Escola Estadual Conjunto Habitacional Voith andFriedrich-von-Voith-School in São Paulo.
During the reporting period, we consolidated oursponsorship of nurseries and schools in Heidenheim
into the “Academy of the Future” and gave € 50,000
of funding. The International School Ulm/Neu-Ulm,the incorporated society “Freie Waldorfschule” inHeidenheim, the Schüler-Ingenieur-Akademie in
Heidenheim, the European Business School in
Oestrich-Winkel, the American Academy in Berlin,
the Förderkreis des Forschungsinstituts für anwendungsorientierte Wissensverarbeitung e.V. in Ulm, theTechnik ist Zukunft gGmbH initiative in Frankfurt
am Main, and the Technische Universität München(TUM) in Munich each received contributions of over
€ 10,000.
To give young people a helping hand in their professional life, we support vocational training. Every year
since 1972, we have prepared up to fifty youths withlearning difficulties or with no proper school qualifications for education in Heidenheim. For many years
now we have thereby achieved a success rate of over
80 percent for the integration of these young people.

Voith Sustainability Report 2012 I 57

Social Responsibility

We have endowed three professorships at German universities: One for engineering and materials technology at Aalen University (2003), one forhydro power at Stuttgart University in cooperation
with EnBW Baden-Württemberg AG (2008), and one
for automation at Munich University of Applied Sciences (2009). Since fiscal 2011/12, we have offered
six grants of € 10,800 each for engineering courses
at the Technische Universität München.
In the USA, we are a member of the Industry Advisory
Council (EIAC) of York College in Pennsylvania and in
China, we are a cooperation partner of Nanjing Forestry University as well as the following universities:
Shanghai Jiaotong University, Tongji University, Xi’an
Jiaotong University, and Zhejiang University. Here,
we have provided grants, sponsored lecturers, andcooperated in joint projects. The Voith foundations
also offer grants in Germany (for example at TUM)
and Brazil.
In 2012, as part of the German-Indian Year initiated byGermany and India, we launched three programs ofcooperation with further education institutions in Delhi, Kolkata, and Hyderabad. Voith employees worked
together with apprentices and students to develop
innovative solutions to the challenges currently facedby modern society. At the ISB Hyderabad, a group oftechnical experts worked on technologies for public
transport systems. At the Jadhavpur University in
Kolkata, the focus was on sustainable paper production. And at the Indian Roorkee Technology Institutein Delhi, a research team designed a project on the
topic of hydropower.
Sport
We actively promote sport for all, and support several
sports clubs and competitions around the world: We
spent € 682,000 on doing this in the reporting year.
Our aim is to boost the level of recognition of the Voith
brand, and to play our part as a corporate citizen in
improving the attractiveness of the cities in which theVoith sites are located and their respective regions.
At our headquarters in Heidenheim, we support the
professional soccer club 1. FC Heidenheim. Furthermore, we have been a sponsor of Heidenheim’s
58 I Voith Sustainability Report 2012

fencing center and the Heidenheim baseball teamfor many years now. Besides this, we also support awide variety of sport at our other sites.
Social affairs
Our projects in the area of social affairs aim to improve the living conditions of people in Africa, SouthAmerica, and Asia and to combat poverty. We attach great importance to promoting discussion andcollaboration between people of different cultures,
breaking down prejudices, and developing mutual
understanding. To encourage contact between cultures, since 2003 we have offered two grants in Asia
and South America for the school exchange program
AFS Interkulturelle Begegnungen e.V. In the fiscal
year just finished, the Voith Group and the connected Hanns-Voith-Foundation supported the Children
Future Organization (CFO) in Nepal with a monetary
donation of € 6,500.
CultureOne of our major concerns is giving children andyoung people in particular access to music andarts. We support classical music at the highest level
and are introducing young people to it. During thereporting period we provided financial support to the
Opernfestspiele in Heidenheim, Schiller Secondary
School’s new chamber choir, the town’s philharmonicorchestra, the Voith Orchestra as well as the international music-school academy, the Kulturzentrum at
Kapfenburg Castle, and the Association of Arts andCulture of the German Economy at the Federation ofGerman Industries, Berlin.
We have also been assisting the museum for Ice-Age
art in Lonetal, the Austrian Papermaking Museum,and the Heidenheim Art Museum for several years.
New goals• Continue previous social engagement• Sponsor university graduates in technical disciplines in fiscal 2013/14 by awarding sponsorshipprizes from the Hanns-Voith-Foundation• Award grants for up-and-coming engineers in fiscal
2012/13 via the Hanns-Voith-Foundation

Miscellaneous
Facts and Figures
1. Group Portrait60

2. Sustainable Management61

3. Environmental Responsibility

61

5. Responsibility for Employees

70

6. Social Responsibility

75

Goals and Goal Achievement

76

GRI Index

82

Fresh and recycled complement each other perfectly

88

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 2012 I 59

Miscellaneous

1. Group Portrait
Economic Indicators
In € million

2011/122010/11

2009/10

5,724

5,594

5,198

Operational result before non-recurring result

341

416

353

Income before tax

177

322

234

2011/122010/11

2009/10

Sales

Reference: Voith Group

Sales Markets
In %Germany

21

21

20

Rest of Europe

26

27

29

America

27

23

24

Asia

24

27

25

Other

2

2

2

2011/122010/11

2009/10

Germany

44

37

36

Rest of Europe

21

25

24

North America

7

5

8

South America

19

21

19

Asia and the rest of the world

9

12

13

Reference: Voith Group

Procurement Markets
In %Reference: Voith Group

Profile of Business Divisions
In € million
Sales
Operational result
Reference: Voith Group

60 I Voith Sustainability Report 2012

Voith Hydro

Voith Industrial Services

Voith Paper

Voith Turbo

1,315

1,101

1,738

1,551

100

41

84

151

2. Sustainable Management
Existing Voith-Site Certifications
Number

2011/122010/11

2009/10

ISO 14001

69

56

n.a.

ISO 9001

82

76

n.a.

OHSAS 18001

67

52

n.a.

2011/122010/11

2009/10

Reference: Voith Group

Compliance
In %Employees trained in relation to compliance

100

59

n.a.

Trained compliance officers

100

100

100

Number of instruction
sessions

Type

54

One day

Reference: Voith Group

Compliance Training Courses in Fiscal 2011/12

Senior executives of the upper four info levels
New managers at the Voith Academy

42

Half daySales employees

297

One day

Purchasing employees

59

One day

Decentralized training by compliance officers

1,578> 1.5 hours

Instruction by manager

6,117> 0.5 hours

2009/10

Reference: Voith Group

3. Responsibility for the Environment
Energy Consumption
Production-Based Energy Consumption by Region
In %2011/122010/11

Asia

11

10

8

South America

11

11

11

North America

21

21

19

Africa<1<1<1

Europe5758

62602,807615,455

627,628

In MWhTotal

Production-based energy consumption comprises the energy consumed at Voith sites for production, service, and administrative processes.

Voith Sustainability Report 2012 I 61

Miscellaneous

Production-Based Direct Consumption by Primary Energy Sources (Renewable and Non-Renewable)
In MWh2011/122010/11

2009/10

Direct energy consumption

199,212205,237

218,944

99.9

99.8

99.8

Natural gas

77

79

72

Heating oil

9

8

7

Gasoline

000Diesel

7

7

18

LPG

7

6

3

In %
Non-renewable energy sources

0

0

0

Renewable energy sources

Other

0.1

0.2

0.2

Ethanol*

87

90

100

Hydrogen**

13

10

0

Other

0

0

0

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

Production-Based Indirect Consumption by Primary Energy Sources (Renewable and Non-Renewable)
In MWh2011/122010/11

2009/10

Indirect energy consumption

403,595

410,219

408,684

77.9

77.4

76.6

5

5

5

In %
Non-renewable energy sources
Heating oil
Nuclear

17

17

17

Natural gas

48

48

51

Coal

23

22

20

Other
Renewable energy sources

8

7

7

22.1

22.6

23.4

Wind

1

1

1

Water

84

83

84

Other

16

16

16

Production-based energy consumption comprises the energy consumed at Voith sites for production, service, and administrative processes.

62 I Voith Sustainability Report 2012

Energy Generated Ourselves
In MWh2011/122010/11

2009/10

Electricity for own use

3,839

3,868

2,990

of which sold toother organizations

235

324

451

Heating for own use

1,915

1,622

13

of which sold toother organizations

0

0

0

22,88323,633

n.a.

0

0

–

28,637

29,1243,003

In MWh2011/122010/11

2009/10Air (long haul)

55,66659,656

51,203Air (short haul)

2,184

2,425

1,841

489

487

481

Steam for own useof which sold toother organizations
Total

Transportation-Related Energy Consumption for Business Travel

Rail
Road

56,152

51,89356,982

Total

114,491

114,461

110,508

Transportation-related energy consumption comprises business-related air travel (long/short haul) as well as travel by rail and using
company and rental cars.

Greenhouse Gas Emissions
Production-Based Greenhouse Gas Emissions
In t CO2

2011/122010/11

2009/10

Direct greenhouse gas emissions

43,23744,35848,710Indirect greenhouse gas emissions

140,002139,930

132,560

Total

183,239

184,288

181,270

Production-based greenhouse gas emissions comprise greenhouse gas emissions generated as a result of the energy consumed at Voith sites for
production, service, and administrative processes.

Voith Sustainability Report 2012 I 63

Miscellaneous

Production-Based Greenhouse Gas Emissions by Region
In %2011/122010/11

2009/10

Asia

24

22

19

South America

10

10

10

North America

26

26

25

Africa<1<1<1

Europe404145

183,239

184,288

181,270

In t CO2
Total

Production-based greenhouse gas emissions comprise greenhouse gas emissions generated as a result of the energy consumed at Voith sites for
production, service, and administrative processes.
The increase in greenhouse gas emissions in Asia is attributable to an increase in energy consumption as a result of the expansion in production capacity.
Due to the high share of power generated from coal, there is a high specific CO2 factor per kWh of electricity in the energy mix available there.

Specific Production-Based Greenhouse Gas Emissions
In t CO2 / € million sales
Total

2011/122010/11

2009/10

32.01

32.94

34.87

Production-based greenhouse gas emissions comprise greenhouse gas emissions generated as a result of the energy consumed at Voith sites for
production, service, and administrative processes.

Business-Travel Greenhouse Gas Emissions
In t CO2

2011/122010/11

2009/10Air (long haul)

15,305

16,402

14,078Air (short haul)

601

667

507

Rail

117

117

115

Road

16,302

17,300

16,543Total

32,32534,486

31,243Business-travel greenhouse gas emissions comprise greenhouse gas emissions generated as a result of the energy consumed through business-related
air travel (long/short haul) as well as travel by rail and using company and rental cars.
Transportation-related greenhouse gas emissions were converted using the conversion factors for passenger transportation
available in the ProBas database of the German Federal Environment Agency.

Product-Shipment Greenhouse Gas Emissions
In t CO2

2011/122010/11

2009/10

Total

37,24055,615n.a.

Product-shipment greenhouse gas emissions comprise greenhouse gas emissions based on our inbound and outbound materials data and associatedtransportation.
Transportation-related greenhouse gas emissions were determined based on the emission factors available in the ProBas and TREMOD databases of theGerman Federal Environment Agency.

64 I Voith Sustainability Report 2012

Water Consumption
Water Consumption by Region
In %2011/122010/11

2009/10

Asia

17

19

18

South America

11

12

14

North America

9

10

9

Africa<1<1<1

Europe63

58

59

1,743,031

1,671,562

1,629,310

In m3

2011/122010/11

2009/10

Surface water

155,211

149,306

145,089

Groundwater

834,498

769,965

772,396

Rain water

10,606

12,897

n.a.

0

2,778

n.a.

In m

3

Total

Water Consumption by Source

Wastewater sourced from other companies
From the communal water supply

742,717736,617711,824

1,743,031

1,671,562

1,629,310

In m3

2011/122010/11

2009/10

Total

1,732,425

1,655,887

1,629,310

Total

Freshwater Consumption

Freshwater includes all surface water, groundwater, and mains water. Rain water and geothermal water are not included in the figures.

Specific Freshwater Consumption
In m3 / € thousand in sales

2011/122010/11

2009/10

0.30

0.30

0.31

Total

Wastewater
Wastewater discharges
In m3

2011/122010/11

2009/10

Total

1,509,135

1,576,002

1,484,487

Owing to evaporation, overall wastewater discharge differs from overall water consumption.

Voith Sustainability Report 2012 I 65

Miscellaneous

Treated and Untreated Wastewater by Discharge Type
In m3

2011/122010/11

2009/10

Total treated wastewater

232,663249,280

266,277of which discharged into the public sewage system

51

64

72

of which discharged into surface water

49

36

28

of which discharged into groundwater

0

0

0

<1

0

0

1,276,473

1,326,721

1,218,209of which discharged into the public sewage system

50

59

56

of which discharged into surface water

34

32

37

of which discharged into groundwater

16

9

7

of which sent to another company for reuse

<1

<1

0

2011/122010/11

2009/10

Biochemical oxygen demand (BOD5)

11

n.a.

n.a.

Chemical oxygen demand (COD)

45

n.a.

n.a.

Overall suspended matter content

13

n.a.

n.a.

Heavy metals

<1

n.a.

n.a.

2

n.a.

n.a.

<1

n.a.

n.a.

In %

of which sent to another company for reuse
In m3
Total untreated wastewater
In %Wastewater Quality
In t

NitrogenPhosphorus

The emissions in wastewater are based on the volumes of the wastewater flows at Voith sites that are subject to monitoring and the respective average ofthe measured concentrations.

66 I Voith Sustainability Report 2012

Significant* Direct Wastewater Discharges in Fiscal 2011/12
Site

Discharge­location

Protection status

Further information

Heidenheim,
Germany

River Brenz

Water protection area according to WFD, Federal Water Act(§§ 50–53), Zone III/IIIA (Zone II/
IIA TB Mergelstetten, not legallybinding)

57 percent of wastewater discharged back into the natural water cycle.
Water previously withdrawn for cooling. The discharged water is subject tostringent checks as the site is in a water protection area.

Högsjö,SwedenLake Högsjö

–93 percent of wastewater discharged back into the natural water cycle. Water previously withdrawn for cooling.

Ibarra,Spain

Río Oria–

45 percent of wastewater discharged back into the natural water cycle.

Kirchseeon,
Germany

Lake Eggelburg–

77 percent of wastewater discharged back into the natural water cycle.

Krefeld,
Germany

Green areas–

19 percent of the spring water is used to water green areas.

Noida,
India

Yamuna River–

100 percent of wastewater discharged back into the natural water cycle.

São Paulo,
BrazilRiver Perus

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

98 percent of wastewater discharged back into the water cycle. We havea wastewater treatment plant on site which treats the water for discharge.
The site neighbors a water protection area.

Wimpassing,
Austria

River Schwarza–

73 percent of cooling water discharged back into the Schwarza.

* Wastewater discharges into surface water which exceed 5 percent of the total wastewater volume of the unit under consideration are deemed “significant”.
The amount or volume of the discharge locations cannot be determined.

Waste
Waste by Region
In %2011/122010/11

2009/10

Asia

13

11

9

South America

23

21

24

North America

9

9

11

Africa<1<1<1

Europe55

58

56

51,48858,985

58,1102011/122010/11

2009/10

9.00

10.54

11.18

In t
Total

Specific Waste Weight
In t / € million sales
Specific Waste Weight

Voith Sustainability Report 2012 I 67

Miscellaneous

Waste Reuse and Disposal by Method
In t2011/122010/11

2009/10

Reused waste

32,804

39,240n.a.

Reused

818

875

n.a.

Recycled

25,48630,072

n.a.

173

198

n.a.

5,132

5,829

n.a.

Composted
Recovered (for thermal recovery among other things)
Other methods of reuse

1,195

2,264

n.a.

Disposed waste

18,684

19,746n.a.

Incinerated

5,134

5,551

n.a.

Disposed of at external site*

13,55014,194

n.a.

0

0

n.a.

Disposed of on works site
Other methods of disposal

0

0

n.a.

51,48858,985

58,110In t

2011/122010/11

2009/10

Hazardous waste

14,212

17,111

16,195Non-hazardous waste

37,277

41,874

41,916

Total

51,48858,985

58,110Total* Casting-sand waste from the foundry in São Paulo, waste disposal in the USA

Hazardous and Non-Hazardous Waste

Biodiversity
Sites in or Neighboring Protected Areas in Fiscal 2011/12
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 to protection 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)

68 I Voith Sustainability Report 2012

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 to protection area

Located in the water protection area

Protection status

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

Voith Paper Ltd., UK
Location

Manchester

Type of operations

Production, administration

Area

0.024 km2

Type of protected area

Freshwater, groundwater

Location in relation to protection area

Neighbors a Natura 2000 protection area

Protection status

Rochdale Canal (inland water body): European legislation, designated by Natura 2000 as a Special 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 to protection 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 to protection area

Neighbors two nature protection areas

Protection status

National legislation (Norway)

Land Use
In km2

2011/122010/11

2009/10

3.3

n.a.

n.a.

Non-sealed areas

48

n.a.

n.a.

Sealed areas

52

n.a.

n.a.

Areas used
In %Voith Sustainability Report 2012 I 69

Miscellaneous

5. Responsibility for Employees
Consolidation Scope
Consolidation Scope for Employee Numbers in Fiscal 2011/12
Headcount*

2011/12Group employee headcount46,469of which employees included in the data analysis

41,021* In contrast to the Annual Report, in the Sustainability Report the number of employees is reported in terms of headcount not statistical values.
The calculation of the Group-wide employee headcount is based on a different method of calculation to that used in fiscal 2010/11.

Workforce Structure
Employees by Region and Gender in Fiscal 2011/12
NumberVoith Group

EuropeNorth America

South America

Asia

Africa

Women

8,652

5,747

1,099

862

909

35

Men

32,36920,193

3,712

5,000

3,359

105

< 30 years old

8,493

4,670

837

1,574

1,392

20

30–50 years old

21,997

13,824

2,180

3,326

2,585

82

> 50 years old

10,531

7,446

1,794

962

291

38

Total

41,021

25,940

4,811

5,862

4,268

140

Full-Time and Part-Time Employees by Region and Gender in Fiscal 2011/12
NumberVoith Group

EuropeNorth America

South America

Asia

AfricaFull time

32,84918,116

4,681

5,673

4,243

136

of which are
women

5,181

2,316

1,075

855

902

33

of which are men

27,66815,800

3,606

4,818

3,341

103

< 30 years old

6,636

2,966

794

1,478

1,378

20

30–50 years old

17,595

9,569

2,121

3,245

2,578

82

> 50 years old

8,618

5,581

1,766

950

287

34

Part time

8,172

7,824

130

189

25

4

of which are
women

3,471

3,431

24

7

7

2

of which are men

4,701

4,393

106

182

18

2

< 30 years old

1,857

1,704

43

96

14

0

30–50 years old

4,402

4,255

59

81

7

0

> 50 years old

1,913

1,865

28

12

4

4

Total

41,021

25,940

4,811

5,862

4,268

140

Reference: Sustainability database (see “About this Report” inside front cover)

70 I Voith Sustainability Report 2012

Workforce Fluctuation
Newly Hired Employees* by Gender, Age Group, and Region in Fiscal 2011/12
NumberVoith Group

EuropeNorth America

South America

Asia

Africa

Women

2,805

1,975

371

206

246

7

Men

7,938

4,270

925

1,905

816

22

< 30 years old

4,278

2,397

423

949

496

13

30–50 years old

5,033

2,973

568

971

507

14

> 50 years old

1,432

875

305

191

59

2

Total

10,743

6,245

1,296

2,111

1,062

29

* Multiple counts possible as a result of employees rejoining the company

Employees Leaving the Company in Fiscal 2011/2012
In %Machine andplant engineering

Service business

Total

Total

8.2

22.7

15.8

At employee’s initiative

4.1

8.9

6.6

At Voith’s initiative

3.1

13.3

8.5

Other reasons

1.1

0.4

0.7

Reference: This data was not recorded using the sustainability database. It therefore covers 40,291 employees instead of 41,021.

Employee Retention
Newly Hired Employees who Left Voith again within Twelve Months* by Gender, Age Group, and Regionin Fiscal 2011/12
NumberMachine andplant engineering

EuropeNorth America

South America

Asia

Africa

Women

45

20

1

2

22

0

Men

216

64

17

42

93

0

< 30 years old

130

45

4

17

64

0

30–50 years old

111

36

8

19

48

0

> 50 years old

20

3

6

8

3

0

Total

261

84

18

44

115

0

Service business

EuropeNorth America

South America

Asia

AfricaNumber
Women
Men

833

709

56

38

30

0

1,754

1,302

165

236

51

0

< 30 years old

1,027

768

86

146

27

0

30–50 years old

1,186

924

101

116

45

0

> 50 years old

374

319

34

12

9

0

2,587

2,011

221

274

81

0

Total

* The figures include dismissals, resignations, and other forms of natural fluctuation (retirement, death) that led to employees leaving the company. Accordingly, no Group-internal transfers are recorded. The figures also do not include temporary contracts.

Voith Sustainability Report 2012 I 71

Miscellaneous

Average Length of Service in Machine and Plant Engineering and in the Service Business by Region
Total

Machine and plant engineering

Service businessIn years

2011/122010/11

2009/10

2011/122010/11

2009/10

2011/122010/11

2009/10Europe

9.53

9.23

8.71

15.05

14.93

15.48

6.08

5.63

4.54

North America

7.59

8.24

7.86

13.46

13.57

14.34

3.86

4.11

3.28

South America

5.27

4.95

4.33

8.41

7.28

8.18

2.82

2.61

0.93

Asia

5.36

5.19

6.05

5.80

5.85

7.13

4.08

2.53

1.85

Other

9.00

8.00

8.00

9.00

8.00

8.00

n.a.

n.a.

n.a.

Reference: This data was not recorded using the sustainability database. It therefore covers 40,291 employees instead of 41,021.

Work-Life Balance
Parental Leave in Fiscal 2011/12
Voith
Group

EuropeNorthAmerica

SouthAmerica

Asia

AfricaTotal parental leave take-up

517

454

21

24

16

2

Women

237

194

8

24

10

1

Men

280

260

13

0

6

1

Employees returning to Voith
following parental leave

404

349

19

18

16

2

Women

134

99

6

18

10

1

Number

Men

270

250

13

0

6

1

Employees returning to Voith following
parental leave, who were also
still employed at Voith twelve months
after returning

303

256

16

20

9

2

Women

104

70

4

20

9

1

Men

199

186

12

0

0

1

It is not possible to provide information on the total number of employees who are entitled to take parental leave owing to the multitude of regulations. Voith
complies with national laws and collective agreements that apply to the company. If regulations include entitlement to parental leave, Voith complies withthese.

72 I Voith Sustainability Report 2012

Training and Further Education
Further Education
In €Total expenditure

2011/122010/11

2009/103,445,765

3,071,386

2,352,563

2011/122010/11

2009/10

1,206

1,246

1,232

Reference: Voith Germany (in part)

Vocational Education
NumberApprentices and interns
Reference: Voith Group

Diversity
Women in the Senior Management Circle
Number

2011/122010/11

2009/10

Women in the Senior Management Circle

4

3

4

Total number of employees in the Senior Management Circle

94

90

88

4.3

3.3

4.5

In %
Proportion of women in the Senior Management Circle
Reference: Voith Group

Distribution of Men and Women at Management Levels in Fiscal 2011/12
Number

Women

Men

Corporate Board of Management, Executive Team,
Senior Management Circle

490

Regional directors/chairpersons, managersof operating units, heads of product groups,
managers in Group Division roles

29

367

Middle and lower management

83

757

Total

116

1,214

Reference: This data was not recorded using the sustainability database. It therefore covers 46,469 employees instead of 41,021.

Voith Sustainability Report 2012 I 73

Miscellaneous

Proportion of Disabled Employees
In %2011/122010/11

2009/10

3.61

3.25

3.10

2011/122010/11

2009/10Work accidents

208

344

480

Work accidents per 1 million
working hours (frequency rate)

2.8

4.7

6.7

0

0

n.a.

Proportion of disabled employees
Reference: Voith Germany excluding Voith Industrial Services
Figures comprise disabled persons with a certificate of disability.

Occupational Health and Safety
Work Accidents
NumberWork accidents resulting in fatalities

74 I Voith Sustainability Report 2012

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

2011/122010/11

2009/10Voith Group

1.87

1.669

n.a.

Hanns-Voith-Foundation

0.38

0.3

n.a.

Fundação Voith

0.265

0.4

n.a.

Total

2.515

2.369

n.a.

Reference: Voith Group

Sponsorship Aid by ProjectIn %2011/122010/11

2009/10

Education (schools, education, and science)

33.08

44

n.a.

Social affairs

24.39

13

n.a.

Sport

27.17

32

n.a.

Culture

15.36

11

n.a.

2.512

2.369

n.a.

In € thousand

2011/122010/11

2009/10

Germany

41,09047,122n.a.

Rest of Europe

12,515

17,383n.a.

America

24,55029,204n.a.

Asia

21,983

14,690n.a.

In € million
Total

Tax Paid
Taxes Paid by Region

Other

3,656

3,992

n.a.

Total

103,794

112,390

107,654

Reference: Voith Group

Voith Sustainability Report 2012 I 75

Miscellaneous

Goals and Goal Achievement
Sustainable Management
Goals from the Sustainability Report 2012 and their level of achievement
Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Systematizing and internationalizing the stakeholder dialog
Develop a global concept

Fiscal2014/15
Fiscal2012/13
Fiscal2013/14
Fiscal2012/13

Stakeholder dialog is established on the basis of company-relevant megatrends, among other things.
Points of contact for the respective fields of activity can be addressed
directly by means of an e-mail form on the Voith homepage.

Incorporate the issue of sustainability into induction events for Fiscal
new recruits in Germany
2012/13
Incorporate the issue of sustainability into induction events for Fiscal
new recruits worldwide
2012/13
Include the issue of sustainability in the HSE Symposium for
Fiscalthe German-speaking region and equivalent symposia in Asia, 2012/13
South America, and North America
Integration of sustainability into training and further education

Rescheduled: The topic of sustainability was introduced at various eventsin Germany, e.g. at trainee induction weeks in Heidenheim.

Create a direct point of contact in relation to sustainability
issues for external stakeholders
Expand and systematize the dialog with external stakeholders
Implement a measure from the concept for stakeholder dialog

Ongoing
Achieved
New goal
New goal

Communicating about sustainability

Conduct training events on sustainability at the Voith Academy Fiscal
2012/13
Systematically embed awareness of sustainability among
Fiscalpersonnel using various tools such as employee training on
2013/14sustainability
Communication concept
Expand internal and external communication
Implement a measure from the communication concept

Ongoing
Ongoing

Goal was changed. The issue of sustainability will be implemented atregular intervals worldwide at independent events (including training
workshops).

Not applicableStartedDesigning a global training concept

Fiscal2012/13
Fiscal2012/13

New goal/startedNew goal/startedNew goal/started

Improving the management of sustainability issues
Define further key indicators
Include “Sustainability” in the agenda of the Voith Advisory
Committee

Fiscal2013/14
Fiscal2013/14

Rescheduled: We are currently working on recording the goals from thesocial affairs target area as key indicators.
Rescheduled: In one Group Division, sustainability has been included in theagenda of the Advisory Committee meetings. In two other Group Divisions,the topic features regularly on the agenda of the Group Division Board ofManagement meetings.

Ongoing
Ongoing

Expansion of the Management Reporting Tool to include further KPIs
Include occupational health and safety KPIs and other KPIs
from the area of social affairs in the Management Reporting
Tool

Fiscal2012/13Addition of KPIs from the area of occupational health management

StartedConducting training courses

Ongoing

Compulsory e-training “Management and Employees at Voith” for all employees

New goal

Ensuring compliance
Inform employees about export controls

Fiscal2012/13
Expand PC training program on management culture (manage- Fiscal
ment and employees)
2012/13
FiscalExtend the whistleblower system with reporting units at the
2012/13
Heidenheim, Appleton, Shanghai, São Paulo, and St. Pölten
sites and the reporting methods (e-mail, phone, fax, post)
Certification of the Voith Compliance Management System

New goal

Execute certification phases 2 and 3 (implementation of the
CMS and verification of its effectiveness)
Informing employees about compliance

Fiscal2013/14

Ongoing

Conduct instruction and training (on-site or e-training) for all
employees

Fiscal2012/13

Ongoing

76 I Voith Sustainability Report 2012

Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Ensuring adherence to environmental and social standards in Voith supply chains
Compile a black list concept valid for the entire Group for
blocking suppliers
Develop a concept to incorporate socialand ecological questions when evaluating suppliers

Fiscal2013/14
Fiscal2013/14

Rescheduled: We are working on specifying the existing criteria in moredetail and making them an integral part of the procurement process.

New goal/startedOngoing

Purchasing from evaluated suppliers
Increasing the proportion of goods and services sourced from evaluated suppliers to 85 percent (in relation to invoice volume)
Extend supplier evaluations

Fiscal2011/12
Increasing the proportion of goods and services sourced from evaluated suppliers to 76 percent (in relation to purchasing volume)

Replaced

Fiscal2012/13

New goal/startedIn the Sustainability Report 2011 we refer to a goal of 85 percent for fiscal 2011/12. As until that time only three of the four Group Divisions were
included in the supplier evaluation, the goal also only referred to these three
Group Divisions, where a rate of 81 percent was achieved. In the meantime, supplier evaluation is also being implemented in the fourth Group
Divisions. This is why the values were adjusted.

Evaluation of environmental and social standards in our supplier database
Documentation by a separate Key Performance Indicator (KPI)

Fiscal2012/13

New goal/startedFiscal2012/13
Fiscal 2015

Replaced
Replaced

Fiscal2012/13

New goal/started

Improving data quality
Produce a material score for 80 percent of materials purchased
to improve the available data quality
Produce a material score for 95 percent of materials purchased
to improve the available data quality
Produce a material score for 80 percent of the most importantmaterial and maintain the level of coverage in future

Honoring exemplary suppliers by extending the Voith Supplier Award to the entire Voith Group
Include all suppliers (the Supplier Award was originally bestowed only by Voith Hydro in São Paulo)

Not defined

Bestowing a specific, Group-wide Supplier Award, which also recognizes
compliance with environmental and social standards, had to be deferred
for the time being due to other priorities.

Deferred

Environmental Responsibility
Goals from the Sustainability Report 2012 and their level of achievement
Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Reducing production-related consumption of energy and resources
Develop a standard methodology for improving material efficiency in production

Fiscal2012/13

Determine the impact the global shortage of raw materials has
on Voith

Fiscal2013/14

Apply the findings of the survey on shortage of raw materials
to selected products

Fiscal2014/15

As part of a pilot project at the Heidenheim site, numerous improvement measures were identified. The main potential for improvement was
through greater interaction between design, procurement, and production.
Voith worked with a university to produce a survey that evaluated theavailability of crucial raw materials for machine engineering. The survey
explored criteria such as regional concentration, the political situation in
the producer countries, price fluctuations, and substitutability.

Ongoing

Achieved

New goal

Voith Sustainability Report 2012 I 77

Miscellaneous

Strategic goals and measures

Deadline

Ecological Business Management (EBM) methods adopted by
all Group Divisions
Further develop EBM controlling: Extend a tool to verify
site-specific achievement of goals and implementation of
measures
Constantly refine the EBM method for analyzing energy, water,and material flows at production sites by means of new tools
and establish an EBM toolbox
Define ecological assessment criteria when engaging logistics
service providers
Reduce the specific freshwater consumption(m³/€ thousand) by 10 percent compared to fiscal 2011/12
Reduce the specific freshwater consumption(m3/€ thousand) by 5 percent compared to fiscal 2010/11
Reduce the specific volume of waste by 25 percent on thebasis of fiscal 2011/12
Reduce the specific volume of waste by 10 percent on thebasis of fiscal 2008/09

Fiscal2011/12
Fiscal2012/13

Status in fiscal 2011/12
Description

Use recyclable materials
Recycle directly within the Voith GroupElaborate further measures
Reduce energy demand in relation to annual sales by 20
percent based on fiscal 2011/12
Reduce CO2 emissions in relation to annual sales (t/€ million) by 10 percent on the basis of fiscal 2008/2009
Develop a Group Directive for conversion to and constructionof energy-efficient buildings
Utilize renewable energies
Convert to low-emission energy sources (e.g. natural gas andelectricity mix with higher proportion of electricity generated
with low emissions)

Voith has implemented EBM in all divisions and thus achieved its goal.

Achieved
New goal

Fiscal2013/14

New goal

Fiscal2013/14
Fiscal2017/18
Fiscal2015/16
Fiscal2017/18
Fiscal2015/16
Fiscal2015/16
Fiscal2015/16
Fiscal2015/16
Fiscal2017/18
Fiscal2015/16
Fiscal2015/16
Fiscal2015/16
Fiscal2015/16

New goal
New goal
Goal was redefined as part of the revision of the environmental goals.

Replaced
New goal
Achieved
Achieved

By reducing the specific volume of waste by 25 percent up to the 2011/12
reporting year we were able to surpass this goal by a considerable degree
and ahead of time. As the goal was achieved ahead of schedule, we decided to step up the strategic goal.

Achieved
Achieved
New goal
Achieved
Ongoing
Achieved
Achieved

Implementing and complying with statutory environmental regulations
Introduce the Eco-Compliance Concept including associatedsoftware in Germany

Fiscal2012/13

Introduce the Eco-Compliance Concept including associatedsoftware globally
Introduce a uniform global hazardous substances management
process

Fiscal2013/14
Fiscal2013/14

Implement a Group-wide reporting system to record environmentally relevant incidents

Fiscal2012/1378 I Voith Sustainability Report 2012

Development of an Eco-Compliance Concept and implementation at
Heidenheim and 13 other sites in Germany (64 percent of the sales generated in Germany). Using software, relevant guidelines can be assigned tovarious departments and systems and reviewed.

Ongoing

OngoingStart implementing a Group-wide hazardous substances management
process based on a standardized hazardous substances database. This willallow all materials to be mapped throughout the entire Group against a uniform database, and so simplify compliance with statutory regulations, suchas REACH, at the start of the value chain.

Ongoing

New goalProduct Responsibility
Goals from the Sustainability Report 2012 and their level of achievement
Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Energy-efficient and resource-efficient products
Incorporate product energy efficiency as a criterion in the development process and technical risk checklist
Introduce resource-efficient technologies
Assess products and services in relation to energy and resource efficiency
Assess the development processes for products and services
in relation to energy and resource efficiency

Fiscal2013/14
Fiscal2012/13
Fiscal2012/13
Fiscal2013/14

Rescheduled: Two Group Divisions have integrated product energy efficiency into product development as a binding criterion.
Implementation of an internal pilot project on ecological technology transfer

Ongoing

Development of tools and models to assess products and services in relation to energy and resource efficiency
Assessment of the development processes for products and services

Ongoing

Ongoing

Ongoing

Responsibility for Employees
Goals from the Sustainability Report 2012 and their level of achievement
Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Diversity, equal opportunities
Diversity
Develop a diversity strategy

Fiscal2011/12

In fiscal 2011/12, a comprehensive global diversity strategy was developed
which was to identify region-specific fields of activity and set out corresponding goals and measures to increase diversity following an initial analysis phase. The strategy is available for resolution.

Achieved

Fiscal2014/15
From fiscal
2014/15

The measure is being reviewed and will be revised as necessary as part of
the Diversity & Inclusion Program.

Deferred

Increasing the proportion of women
Increase the proportion of women at senior management levelfrom the current 4.3 percent to 10 percent
For German sites: Increase the proportion of women in technical occupations based on the gender distribution in the final
year of study in engineering disciplines
Determine key indicators for gender distribution
Analyze, assess, and modify HR processes
Define target pathways relating to the proportion of women according to divisions
Agree on goals with HR managers

New goal

Fiscal2014/15
Fiscal2014/15
Fiscal2014/15
Fiscal2014/15

Ongoing

Fiscal2011/12
Fiscal2013/14
Fiscal2012/13

Achieved

Fiscal2012/13

New goal

Ongoing
Ongoing
Ongoing

Promoting a work-life balance
Increase the number of childcare places in Heidenheim’s daycare facility by a further 110
Extend the range of family support measures in Germany
Present all offers relating to “Children & Job” and “Caring &Job” from all Voith sites in Germany on the Family and Job
Intranet page
Establish a Germany-wide care hotline

New goal
New goal

Voith Sustainability Report 2012 I 79

Miscellaneous

Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Implementing the Voith Leadership Concept
Every employee will have an annual employee appraisal andgoal-setting meeting with his or her line manager

Fiscal2014/15

In fiscal 2011/12, 87 percent of employees in machine and plant engineering
had an employee appraisal interview.

Ongoing

Recruiting
Collaborate with universities and higher education institutes

Fiscal2012/13

Ongoing

Collecting and evaluating data
Collect master data on all employees worldwide via database
Develop and introduce Group-wide KPIs in the area of HR

From fiscal
2012/13
Fiscal2013/14Introduction of a uniform global human resources IT system

New goal/startedNew goal

Training and further education
Establish cross-divisional, standardized training programs for
managers
Transfer the concept of the Talent Conference to other regions

Fiscal2012/13
Fiscal2012/13

New goal/startedNew goal/startedFiscal2012/13
Fiscal2012/13
Medium term

New goal/startedNew goal

Fiscal2011/12

Achieved

Fiscal2012/13
Fiscal2013/14

New goal/startedNew goal

Improving occupational safety
Further develop Safety Group Directives
Form regional networks on occupational health in the USA and
China
Reduce the accident rate to less than two accidents per million
working hours
Symposia on occupational safety

Ongoing

Accident severity
Record accident severity
Implement benchmarking and goal-setting to reduce accident
severity
Audits and further training
Occupational safety campaign

Fiscal2011/12The current occupational safety campaign will be continued and optimized.

Ongoing

Refresher training on occupational safety in selected regions

Ongoing

Further develop the Corporate Safety Audit

Ongoing

Health management
Establishing an occupational health management system
Continuous monitoring of age structure within the group
Establish a specific KPI system for occupational health management
Establish an integrated concept for occupational health management
Conduct a systematic inventory of previous or intended healthpromotion measures at our sites worldwide
Roll-out standardized occupational medical services for our
German sites

80 I Voith Sustainability Report 2012

Fiscal2014/15
Fiscal2014/15
Fiscal2014/15
Fiscal2011/12
Fiscal2013/14

Ongoing
Ongoing
Ongoing
Achieved
New goalStrategic goals and measures

Deadline

Status in fiscal 2011/12

Conduct a pilot project on health promotion including a healthcheck and derive health promotion measures
Develop and implement a standardized reporting system for
managers
Extend the standardized reporting system

Fiscal2011/12
Fiscal2012/13
Fiscal2013/14

Achieved

Fiscal2011/12
Fiscal2012/13
Fiscal2011/12

Achieved

Description

Ongoing
New goal

Promoting healthy nutrition
Develop an auditing concept in the canteen at our site in
Heidenheim
Implement the auditing concept in the canteen at our site in
Heidenheim
Certify the canteen in Heidenheim according to the Job&Fit
criteria of the German Nutrition Society

Achieved
Achieved

Social Responsibility
Goals from the Sustainability Report 2012 and their level of achievement
Strategic goals and measures

Deadline

Status in fiscal 2011/12
Description

Carrying on previous social engagement
Continue previous measures in sponsorship areas
Consolidate our sponsorship of nurseries and schools in
Heidenheim into the “Academy of the Future”

Ongoing
Fiscal2011/12

Achieved

Raising awareness of the work of the Hanns-Voith-Foundation through extensive PR work
Step up PR activities

Fiscal2011/12

Various measures were carried out including revamping the Hanns-VoithFoundation website, mentioning and describing the Foundation as part ofsustainability presentations and in various print media.

Ongoing

Fiscal2013/14
Fiscal2012/13

Award sponsorship prizes via the Hanns-Voith-Foundation

OngoingAward grants via the Hanns-Voith-Foundation

Ongoing

Encouraging emerging talent
Sponsor university graduates in technical disciplines
Support young engineers

Voith Sustainability Report 2012 I 81

Miscellaneous

GRI Index
StatusOrganization and Reporting Profile

Comment

Reported

Fulfilled

Reference

1. Strategy and Analysis
1.1Statement from the Chairman of the Board of Management
or the Supervisory Board

4-5

1.2

Central key impacts, risks,and opportunities with regard to sustainability

2, 12-13, 15-17, 76-81

2. Organizational Profile
2.1

Name of the company

Inner front cover

2.2

Primary brands, products, and/or services

7-8

2.3

Business divisions and company structure

7-8

2.4

Location of company headquarters

8

2.5

Countries with major operations

Inner cover

2.6

Ownership structure

8-9

2.7

Markets

Inner cover, 8

2.8

Scale of the company

8, 60; AR 74–83, 105–109

2.9

Significant changes during the reporting period

AR 97, 99, 103, 109

2.10

Awards received in the reporting period

AR 87, 91–92, 98,
216–219

3. Report Parameters
3.1

Reporting period

Inner front cover

3.2

Date of most recent previous report

September 2012

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, 14, 26,
28, 33, 64

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, 70

3.12

Index according to GRI

82-87

3.13

External verification

Only the reported economic indicators have been verified
externally. They were verified by the auditing firm Ernst &Young as part of auditing of the Annual Report 2012.

4. Governance, Commitments, and Engagement
4.1

Governance structure

8; AR 6–7, 9–13

4.2

Independence of the Chairman of the Supervisory Board

8; AR 6, 12

4.3

Governance body and number of independent
management board members

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

4.4

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

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

4.5

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

82 I Voith Sustainability Report 2012

1

8, 44; AR 12–13

AR 208

Status
Organization and Reporting Profile

Comment

Reported

Fulfilled

Reference

4.6

Mechanisms for avoiding conflict of interests

15–16; www.voith.com/
compliance

4.7

Expertise of governance body in the area of sustainability

13–14; www.voith.com/
cbm

4.8

Statements of mission or values, codes of conduct, andprinciples

15

4.9

Procedures of the Board of Management or Supervisory
Board for overseeing performance in terms of sustainability

13–15, 22, 50, 56–57;
AR 9

4.10

Procedures for evaluating the Board of Management’s own
performance

4.11

Implementation of the precautionary principle

12, 17, 23–24, 36, 45; AR
116–120

4.12

Endorsement of external initiatives

14, 16, 33

4.13

Memberships in associations and advocacy organizations

16-17

4.14

Involved stakeholder groups

16

4.15

Selection of stakeholders

16

4.16

Approaches to stakeholder engagement (type/frequency)

Inner front cover, 16–17,
19, 36, 46

4.17

Response to key concerns raised by stakeholders

Inner front cover, 16–17

3

StatusManagement Approach and Performance Indicators

Comment

Reported

Fulfilled

Reference

EconomyManagement approach

9, 12

EC1

Economic value generated and distributed

9, 56, 75; AR 92, 130

EC2Financial impact of climate change

n.d.

EC3

Company’s benefit plan obligations

AR 179–182

EC4

Financial assistance received from government

AR 186EC5Relationship between standard starting salary (by gender)
and local minimum wage

44

EC6

Spending on locally-based suppliers

9, 11, 17–19, 60

EC7Employment of local employees in management positions

EC8

Infrastructure investments and services for public benefit

n.d.

EC9

Indirect economic impactsn.d.

To date, Voith has not reported the percentage of local
managers. We intend to report this information in fiscal
2013/14.

2

9, 48

Environmental Protection
Management approach

12, 21–24, 36, 77–79

EN1

Materials used by weight or volume

30–31

EN2

Percentage of materials used that are recycled input
materials

30–31

EN3

Direct energy consumption by primary energy source

25–27, 62–63

EN4

Indirect energy consumption by primary energy source

25–27, 62

Voith Sustainability Report 2012 I 83

Miscellaneous

StatusOrganization and Reporting Profile

Comment

Reported

Fulfilled

Reference

EN5

Energy saved

EN6

Energy-efficient products and services

EN7

Initiatives to reduce indirect upstream/downstream energy
consumption

EN8

Total water withdrawal by source

31–32, 65

EN9Water sources significantly affected by withdrawal of water

33, 6525–27
Our products are mainly sub-components 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 and models
to assess products and services in relation to energy andresource efficiency.

1

n.d.

EN10 Recycled and reused wastewater

33, 6633, 68–69

EN11 Land used in protected areas
EN12 Impacts of activities in protected areas

33

As far as we are aware, our production processes have nosignificant negative impacts on the biodiversity of protectedareas and areas with high biodiversity.

EN13 Protected or restored natural habitats
EN14 Strategies for biodiversity

37–39

n.d.
As part of a biodiversity review of our sites conducted infiscal 2010/11, we established that our business activities
had no negative impact on biodiversity, meaning there is nonecessity for strategic management.

1

EN15 Affected animal species and plant varieties

68

EN16 Direct and indirect greenhouse gas emissions

26–28, 63–64

EN17 Other relevant greenhouse gas emissions(e.g. due to business travel)28, 64

EN18 Reduction of greenhouse gases

25, 27

EN19 Ozone-depleting substances by weight

28–30

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

28–30

EN21 Wastewater discharges

32, 65–66

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

30–31, 67–68
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 treated hazardous
waste

31

EN25 Water bodies significantly affected by wastewater
discharges

67

EN26 Initiatives to mitigate environmental impacts of products
and services

Our products are mainly sub-components 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 and models
to assess products and services in relation to energy andresource efficiency.

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

Indicator irrelevant for Voith as products require only very
little packaging.

EN28 Fines/sanctions for non-compliance with environmental
laws and regulations

Fines and non-monetary sanctions for non-compliance withenvironmental laws not reported.

1

1

EN29 Environmental impacts due to transport
EN30 Environmental-protection expenditure and investment

37–39

28–30, 64n.d.

Labor Practices and Decent WorkManagement approach

84 I Voith Sustainability Report 201212, 15–16, 43–45, 79–81

Status
Organization and Reporting Profile

Comment

Reported

Fulfilled

Reference

LA1

Entire workforce by employment status, region, and gender44, 72LA2Rate of employee turnover by age group, gender, andregion44, 71

LA3

Benefits provided only to full-time employees

LA4

Percentage of employees covered by collective bargaining
agreements

44

LA5

Minimum notice period(s) regarding significant operationalchanges44

LA6

Percentage of total workforce represented in industrial
safety committees

75 percent of the global workforce is actively involved inindustrial health and safety via committees comprisingequal 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 andgender– Days lost and total absenteeism– Occupational diseases
We intend to report this information by 2015.

LA8

Risk control and programs relating to serious diseases

LA9

Industrial health and safety agreements with unions

n.d.

2

50–52, 74

52–53
n.d.
46–47

LA10 Hours of training and further education by employee
category

The following information is not currently recorded:
Distribution of the average hours of further education by
employee category and gender
We would like to be able to report this information by 2013.

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 bereported owing to the complexity of the data.

45–46

LA12 Performance assessment and development planning

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

46

LA13 Composition of governance bodies and breakdown of
employees (e.g. age/gender/minority group membership)

The following is not reported for internal reasons:Information regarding whether employees and managers
belong to a minority group

LA14 Remuneration by gender and employee category

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

2

3

3

48, 70, 73; AR 12–13;
www.voith.com/cbm
44

72

LA15 Return to work rate following parental leave

Human Rights
Management approach

12, 15–19, 76–77;
www.voith.com/en/
coc-english.pdf

HR1

Investment agreements with clauses or screening relating
to human rights

n.d.

HR2

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

17–19

HR3

Employee training on human rights

16, 19, 61

HR4

Incidents of discrimination and actions taken

HR5

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

15–18; www.voith.com/
en/coc-english.pdf

HR6Operations with increased risk for child labor and measures

15–18; www.voith.com/
en/coc-english.pdf

HR7

Operations with increased risk for forced labor andmeasures15–18; www.voith.com/
en/coc-english.pdf

n.d.

Voith Sustainability Report 2012 I 85

Miscellaneous

StatusOrganization and Reporting Profile
HR8

Training of security personnel for aspects of human rightsthat are relevant to operations

HR9

Incidents of violation involving rights of indigenous people

Comment

Reported

Fulfilled

Referencen.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

HR10 Review of operations for impacts on human rights

n.d.

HR11 Complaints due to human rights infringements

n.d.

Society
12, 15–16, 33, 56–57, 76;www.voith.com/en/
coc-english.pdf

Management approach

SO1

Impact of operations on communities or regions

n.d.

SO2

Percentage of business units analyzed for risks related tocorruption

n.d.

SO3

Percentage of employees trained in prevention

SO4

Actions taken in response to incidents of corruption

n.d.

SO5

Public policy positions and participation in public policy
development and lobbying

n.d.

SO6

Contributions 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 communities

16, 61

56–57
n.d.
No significant fines were imposed.
33
33

SO10 Prevention of negative impacts on local communities

Product Responsibility
Management approach

12, 15–16, 36, 39–40;
www.voith.com/en/
coc-english.pdf

PR1Life cycle stages in which health and safety impacts ofproducts are assessed

39–40

PR2

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

n.d.
40

PR3

Guidelines/procedures for providing product information

PR4

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

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 communications in
the reporting year 2011/12.

PR8

Substantiated data protection complaints

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

PR9

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

86 I Voith Sustainability Report 2012

n.d.
41

3

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 2012 produced by Voith. Other page references refer to theAnnual Report 2012 produced by Voith (AR). Furthermore, in some cases a specific reference is made to the Corporate Website 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=N o 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 the table 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

Voith Sustainability Report 2012 I 87

Miscellaneous

Fresh and recycled complement each other perfectly
It is the paper industry’s sixty-four-thousand dollar
question that keeps on popping up: What is moresustainable – recycled or fresh fiber? Even though theinitial response is to go for recycled fiber, the answer
isn’t always that clear. This is because primary andsecondary fibers are dependent on each other.
When it comes to developing new technologies forthe paper industry, Voith grapples with the questionof sustainability on a daily basis. There is generally
no right or wrong answer, particularly in terms ofwhat fiber is used: What matters most is the rightmix. The primary aim of our new technologies is
to allow the highest possible amount of waste paper
to be used. Wherever it is practical to do so, we advise
our customers how they can increase the share ofrecycled fibers in their production processes without
affecting quality. With the right technologies, evenhigh-grade magazine paper is now being made entirely from waste paper.
This is generating interest in countries such as China
in particular, where the potential to collect and recycle
waste paper has by no means been exhausted. Here,the high fiber quality of recycled raw materials is leading to increased use in the production of graphics
paper. That said, many Chinese paper producers are
retaining a high degree of flexibility in terms of theirraw material selection. As such, it is not uncommon
for multiple stock preparation lines to be installed oneach paper machine, as these allow producers to
respond quickly to fluctuations in the raw-materials
market. This makes sense especially given the global
increase in demand for paper and thus for recycled
fibers, as it impacts on the availability of the required
fibers.

88 I Voith Sustainability Report 2012

Recycled fibers also need replenishing withfresh fibers
In general, using the highest possible share of recycled fibers to produce paper does not always prove
to be the best option. Here is an example: Paper fornewspapers can be produced entirely from waste
paper without a problem. However, when it comesto really high-quality paper in particular, fresh fibers
will continue to be needed, as these types of paper
need to meet high quality, reliability, and functionality standards. While it may well be possible to use alarge share of waste paper even when manufacturing
really high-quality paper, other considerable restrictions would need to be taken into account (such as
the use of a disproportionally high amount of chemicals) to meet the required level of quality when paper
is made entirely from waste paper. Consequently,
when companies want to produce really high-quality
paper efficiently, this can only be achieved by using
fresh fibers.
The growing global demand for paper cannot be
met by recycled fibers alone either. While technologies that ensure a maximum recycled-fiber yield isachieved are key to this, they are not enough. To
meet the growing paper volume, fresh fibers need
to be put into the paper cycle. In this regard, theyremain an essential element in paper production.
At the same time it is important that the primary fibers used come from sustainable forestry practices,which guarantees availability of wood as a raw material as a result.

Voith Sites

North America
Sales: € 873 million

EuropeSales: € 2,679 million

Asia/Australia/Oceania
Sales: € 1,405 million

Central/South America
Sales: € 668 million

Voith sites in fiscal 2011/12 with more than 20 employees.

AfricaSales: € 99 million

Imprint

Contact

Environmentally Friendly
Production

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

Project management andcontact point for questions
regarding content
Corporate Sustainability
Andrea Linke,
Markus Schönberger
E-mail: sustainability@
voith.com

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.

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

Print

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
Text and design
akzente kommunikation undberatung gmbh

compensated
Id-No. 1327120
www.bvdm-online.de

The Respecta Silk recycled paper we used
for the Voith Sustainability Report 2012 is
made from at least 60 percent secondary
fibers and was produced using a Voith paper machine.

Printed in Germany, © Voith GmbH, June 2013

Sustainability Report 2012

Sustainability Report 2012

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, and measures as well as
presenting our key figures.
Reporting method
The report is oriented towards the G3.1 Guidelines of the Global
Reporting Initiative (GRI). According to our own assessment, thereport meets Application Level B requirements. To determine thekey sustainability topics for our report, we conducted materiality
analyses in 2009 and 2010.
Reporting period and report scope
The Sustainability Report 2012 is based on fiscal 2011/12, which atVoith starts on October 1 and ends on September 30 the following
year. The deadline for content submission for this report was
May 31, 2013. 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 degree of consolidation is 84 percent of
the Group’s sales and 88 percent of the Group’s employees(= 41 021 employees at 92 sites) unless otherwise indicated in thereport.
Data and information gathering
Information was collected electronically upon written request. Data
was recorded using division-specific software.

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

Comparability of facts, figures, and information
Certain figures were calculated for the first time for this report. Thismeans 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, and updated information, we needed to correct previous figures on theenvironment (such as emissions, energy consumption, water, andwaste). There may be differences in the data totals as a result ofrounding figures up or down.
Forward-looking statements
We would like to point out that all forward-looking statements in thisreport 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.
Additional comments
For improved readability, we refrain from referring specifically toboth genders in this report. This is not a value judgment and allforms are to be understood as gender-neutral. The term “service
business” describes the business activity of the Group Division
Voith Industrial Services (VI). This Sustainability Report is available
in German and English. Please visit our website at www.voith.com
and read our Annual Report for further and more extensive information.

We expect to publish our next Sustainability Report in the springof 2014.