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BSH is one of the world’s foremost manufacturers of home appliances.

Building on our
market leadership in Germany and Western Europe, we are the number 3 in the global
competitive arena. It is our aim to be the benchmark for our sector. We want to present a
convincing case with our quality, design, innovation, consumer benefits and value in use. Our
products are part of everyday life.
In order to provide our employees and customers with a clear means of orientation, we have
set out our values and goals in a set of corporate principles that describe the way the company
sees itself, and the culture it adopts.
 

Responsibility
Creating added value for society
For BSH, socially responsible action means contributing to better working conditions and
living standards worldwide. The more countries in which a company operates, the greater the
diversity of requirements it faces. And observing minimum environmental and social
standards is not only a matter of corporate responsibility, it also safeguards a company’s
reputation. Because the company’s responsibilities no longer stop at the “factory gate”, and
BSH has the means to influence and shape matters far beyond these boundaries.

Dealings with others governed by clear rules


Stable markets are absolutely essential for a company’s long-term success. In areas lacking
political equilibrium and social and economic stability, companies seeking success in the
marketplace must themselves help establish such conditions. This means observing and
maintaining minimum environmental and social standards around the world, paying
reasonable wages, fostering education and avoiding corruption. By signing up to the UN
Global Compact and the CECED Code of Conduct for the European home appliance sector,
BSH has sent out a clear signal on the harmonization of global conditions of production.
The success of these rules of behavior and of BSH’s own Business Conduct Guidelines
depends crucially on whether, and how positively suppliers buy into them. The code of
conduct is therefore an integral element of BSH’s purchasing strategy, and forms a permanent
part of supplier contracts, as a means of working towards improved local conditions of
employment and living standards.

Compliance - one of our


company's key principles
With Compliance Management, BSH supports its employees in ensuring that their
actions always comply with the law and statutory provisions.

The BSH Corporate Principles enshrine the tenet that every employee’s actions must at all
times comply with laws and statutory provisions. Reliability, fairness and integrity in internal
dealings and contacts with business partners and consumers are an integral element of BSH’s
corporate culture. These principles are also incorporated in the Business Conduct Guidelines
which BSH introduced in 2006 as binding provisions for all BSH employees. In order to
ensure their sustainable implementation, 2008 saw the BSH Group introduce a Compliance
Management function, which is intended to support the operational units in their observance
of the law, BSH guidelines and the Business Conduct Guidelines.

BSH is committed to the home appliance


sector’s code of conduct
All of Europe’s leading home appliance makers – brought together under the umbrella of
CECED – have agreed on a joint code of conduct for the sector in the CSR (Corporate Social
Responsibility) sphere, known as the “CECED Code of Conduct”. BSH, which played a
leading role in shaping these guidelines, has also signed up to this code. Here, signatories
commit to fostering fair labor conditions and sustainable social and environmental principles.
Child labor, discrimination and corruption are all prohibited not only within BSH, but also
along the entire supply chain.

BSH is a member of the UN Global


Compact
BSH signed up to this initiative, the brainchild of UN Secretary General Kofi Annan, as long
ago as 2004. It calls on commercial companies to ensure that globalization benefits all of
humankind. The code of conduct takes its cue from the ten principles laid down by the United
Nations in the “Global Compact”. The focus here is on topics such as the rights of employees
and human rights in general, environmental protection and corruption.

1. Strategy and analysis


1.1 Statement from the most senior decision-maker of the organization
"Now more than ever, the responsibility we demonstrate as a company underpins the
confidence of our customers and stakeholders, and is thus essential to our long-term corporate
success. In discharging our responsibility to the environment and to society and by living our
values, we also contribute to global sustainable development. And we are happy to be
measured by this contribution."
Dr. Kurt-Ludwig Gutberlet, Chairman and CEO of BSH Bosch und Siemens Hausgeräte
GmbH

1.2 Description of key impacts, risks and opportunities


As the world's third largest manufacturer of home appliances, BSH is aware of the important
role that it can and must play in climate protection and responsible globalization. In the
1990s, BSH pioneered the global move to hydrocarbon technology in refrigeration in order to
protect the ozone layer and the climate. Today, too, it leads the way in the development of
energy-efficient, environmentally compatible products. Continuing climate change is driving
the need to maximize potential energy savings. Home appliances are significant contributors
to the overall energy consumption of households. With its products, BSH is particularly well
placed to contribute to the protection of resources and of the climate.
2. Organizational profile
2.1 Name of the organization
BSH Bosch und Siemens Hausgeräte GmbH

2.2 Primary brands, products and services


Within a comprehensive brand portfolio, the main brands Bosch and Siemens are Europe's
top-selling names. With its six special brands (Gaggenau, Neff, Thermador, Constructa, Viva,
and Ufesa), BSH caters for the individual and diverse wishes of consumers in relation to
brand names and products. Five regional brands (Balay, Lynx, Pitsos, Profilo, and Coldex)
ensure a fine image and high market shares in their respective home markets. The product
range marketed under the various brands encompasses large and small home appliances
ranging from refrigerators, freezers, and dishwashers to home laundry, cooking, and floor
care products.

2.3 Business units and corporate structure


BSH Bosch und Siemens Hausgeräte GmbH is a corporate group operating worldwide. BSH
has 41 factories in Europe, Asia, and North and Latin America plus a worldwide network of
sales and customer service companies in more than 40 countries (as of December 31, 2009). 

2.4 Location of the organization's headquarters


Munich, Germany

2.5 Number/names of countries with major operations (or of particular relevance to the
sustainability issues covered in the report)
Germany, Belgium, Brazil, China, France, United Kingdom, Greece, Austria, Northern
Europe, Poland, Portugal, Russia, Switzerland, Slovakia, Slovenia, Spain, Turkey and the
USA.

2.6 Nature of ownership and legal form


BSH Bosch und Siemens Hausgeräte GmbH was founded in 1967 as a joint venture between
Robert Bosch GmbH, Stuttgart, and Siemens AG, Berlin/Munich.

2.7 Markets served


Distribution of sales revenue by region: BSH Group sales: 8.405 billion euros (as at
December 31, 2009)
Germany: 20.9 percent
Western Europe (excluding Germany) and Turkey: 48.2 percent
Asia: 11.4 percent
Latin America: 1.8 percent
North America: 5.2 percent
Eastern Europe: 9.9 percent
Other: 1.6 percent

2.8 Scale of the reporting organization


BSH Bosch und Siemens Hausgeräte GmbH is a corporate group operating worldwide. It
generated revenue of 8.4 billion euros in 2009. The Group had a total global headcount of
39,626 people (13,895 in Germany and 25,731 elsewhere) on December 31, 2009.

2.9 Significant changes regarding size, structure or ownership

 The Brazilian subsidiaries BSH Continental Eletrodomésticos Ltda. and BSH


Continental da Amazônia Ltda., Manaus, were sold to the Mexican-based Exinmex
S.A de C.V. as of July 1, 2009.
 As part of an asset deal, BSH Huishoud-elektro B.V., Amsterdam, acquired the home
appliance activities from Siemens Nederland N.V., The Hague, as of January 1, 2009.
 Also with effect from January 1, 2009, Willem van Rijn Huishoud-elektro B.V. and
Gaggenau Nederland B.V., Nieuwegein, were merged with BSH Huishoud-elektro
B.V., Amsterdam. BSH Huishoud-elektro B.V. was then renamed BSH
Huishoudapparaten B.V.

2.10 Awards received in the reporting period

 future/IÖW's ranking of the sustainability reports of Germany's 150 largest


companies: The BSH report 2008 ranked eighth overall, best report in the home
appliances sector. [Link: http://www.ranking-nachhaltigkeitsberichte.de/]
 Innovationspreis für Klima und Umwelt (Climate and Environment Innovation Award
– IKU) from the German Ministry for the Environment (BMU) and the Federation of
German Industry (BDI) for the Zeolith® drying system in dishwashers [link:
http://www.iku-innovationspreis.de/]
 Germany's Top Employer in 2009
 Product awards:
o Environmental award at the Foire de Paris innovation forum for the heat pump
clothes dryer
o Two innovation awards for BSH Slovenia: Gold for its hot drinks dispenser
and silver for a hand blender.
o BSH appliances emerged as "best in test" or "best buy" in no fewer than 44 of
the 79 different German and European tests in which they featured.
 BSH home appliances plant at Nauen named "Factory of the Year"
 Supplier of the Year Award 2009 from Euronics International for BSH (for the fourth
time in succession)

Governance, commitments and engagement


4. Governance, commitments and engagement
4.1 Governance structure, including responsibility for sustainability issues
If the goal of sustainable development for the company is to be achieved, then its targets,
guidelines, systems and tools must complement one another and interact perfectly. At BSH,
responsibility for this is vested in the Board of Management. While the Corporate Department
for Environmental Protection and Occupational Health and Safety coordinates activities
worldwide, Management Coordinators ensure compliance with environmental standards at
the various sites and report to the Corporate Department annually on their activities. In
addition, a Coordination Group for Corporate Social Responsibility (CSR) has been set up
and comprises representatives from environmental protection, occupational health and safety,
human resources, the legal affairs department, the purchasing function and corporate
communications.

4.2 Independence of the Chairman of the Supervisory Board


The Chairman of the Supervisory Board of BSH Bosch und Siemens Hausgeräte GmbH
coordinates the work of the committee. During the year, the BSH Board of Management
submits regular verbal and written reports to the Supervisory Board detailing the company's
development and significant decisions.

4.3 Controlling body and independent members of executive management


The Supervisory Board of BSH Bosch und Siemens Hausgeräte GmbH is made up of
representatives of the shareholders and the workforce. Looking after the interests of
employees are representatives of the senior executives and the trade union (IG Metall).

4.4 Mechanisms for shareholders and employees to provide recommendations to the


Board of Management/Supervisory Board
Shareholder recommendations are not applicable, because BSH is unlisted. 
BSH conducted an employee survey in 17 countries in 2009. It was the second such survey in
Germany, and the first in the other 16 countries. A total of 18,592 employees took part in the
survey, which corresponds to a participation rate of 82 percent. A monitoring tool has been
developed to allow consistent tracking of the measures introduced following the 2009
employee survey. BSH will repeat the employee survey at two-year intervals. See
Responsibility for the environment and society 2009, p. 19 

4.5 Linkage between compensation for executive managers and the organization's
performance with regard to sustainability issues
See 4.1

4.6 Processes in place for the governance bodies to ensure that conflicts of interest are
avoided
Annual Report 2009, page 100

4.7 Qualifications and expertise of the governance bodies in relation to sustainability


issues
See 4.1.

4.8 Principles, values and codes of conduct


Active responsibility worldwide for the environment, employees and society is enshrined in
BSH's business strategy by a set of guidelines. These include our Corporate Principles,
environmental policy, corporate guidelines on environmental management, the occupational
health and safety policy, the Business Conduct Guidelines and the leadership principles.

4.9 Procedures at the Board of Management/Supervisory Board level for monitoring


environmental, economic and social opportunities and risks
Issues addressed by the Supervisory Board included the situation on the global home
appliances markets, the growth in internet trading and conclusions for marketing concepts,
the energy efficiency of home appliances, new operating designs, and the ongoing
development of the company's innovation management. The Supervisory Board sought
information from the Board of Management about the company’s risk management
arrangements. Moreover, the Board of Management reported to the Supervisory Board on the
expansion of the compliance organization, the compliance training conducted, and current
compliance issues in 2009, in particular the investigations by the Munich public prosecutor's
office into possible illegal sales promotion practices.

4.10 Processes for evaluating the Board of Management's own performance in relation
to sustainability issues
See 4.1

4.11 Implementation of the precautionary principle


BSH excludes potential risks to a large extent by applying the precautionary principle. It
relies on rigorous quality management and the continuous improvement of product and
process quality. By signing the United Nations Global Compact in 2004, BSH committed
itself to respecting and promoting ten core principles of responsible business practice. These
principles form the basis for the Code of Conduct of the European Committee of Domestic
Equipment Manufacturers (CECED). BSH was involved in drafting this code and signed it in
2005. The code is now an integral part of our suppliers' terms and conditions. Last year, BSH
formalized this commitment by publishing its own Business Conduct Guidelines, which are
binding on all employees worldwide.

4.12 External initiatives subscribed to or endorsed by the organization

 Global Compact www.unglobalcompact.org


 "Time to go" initiative of the European Committee of Domestic Equipment
Manufacturers
 "Sustainable Energy Europe" campaign of the European Commission
www.sustenergy.org
 Energy efficiency workgroup of Germany's Electrical and Electronic Manufacturers'
Association (ZVEI) www.zvei.org
 Home Appliance+ initiative www.hausgeräte-plus.de

4.13 Memberships of associations and interest groups

 German Association of Environmental Management (B.A.U.M.) www.baumev.de


 European Committee of Domestic Equipment Manufacturers (CECED)
www.ceced.org
 Global Compact www.unglobalcompact.org
 Germany's Electrical and Electronic Manufacturers' Association (ZVEI
www.zvei.org)

4.14 List of stakeholder groups engaged by the organization


Employees, customers, business partners, suppliers, authorities and NGOs (see 4.16).

4.15 Basis for the identification of stakeholders


Dialog with politicians, dealers, consumers, suppliers and disposal contractors

4.16 Approaches to stakeholder engagement (type/frequency of dialog)

 In 2009, BSH conducted its first survey of 200 stakeholders around the world, of
whom 70 responded. Some 72 percent of respondents rated BSH’s commitment to the
environment as better than average, 44 percent felt that our contribution to wider
society was better than average and 33 percent said we were better than average in the
area of commitment to our employees. Overall, 61 percent of those surveyed stated
that our commitment to sustainability was better than average and 33 percent that it
was adequate. The most important concern for the future among those surveyed
turned out to be the ease of use of home appliances for older people (25 percent). Next
came social and ecological standards in the supply chain (13 percent) and good
consumer information (11 percent). See Responsibility for the environment and
society 2009, p. 11
 Development of the Protos stove: Deutsche Bundesstiftung Umwelt, Conservation
International, Opportunity International Deutschland, World Bank, USAID,
Gesellschaft für technische Zusammenarbeit (GTZ), Deutsche Investitions- und
Entwicklungsgesellschaft (DEG), International Union for Conservation of Nature
(IUCN), DINARI (Indonesia), TERI (India), Gold Standard Foundation

4.17 Position on key concerns of stakeholders

 BSH launched a concerted energy efficiency campaign, the Energy Excellence


Initiative, in 2008. The initiative aims to make energy efficiency a central guiding
principle internationally at all subsidiaries and to position BSH as a leading provider
of energy-efficient products worldwide. BSH’s active support for the Chinese
government’s project to design and introduce an energy label based on the European
model is one of the measures being pursued under this particular initiative.
 BSH phased gases that deplete the ozone layer out of its refrigerator manufacturing
operations at the beginning of the 1990s in Europe and a few years later in China.
Home appliances have such a long product life span, however, that we are still
receiving a large quantity of CFC-containing refrigerators and freezers back for
recycling. BSH's contractors have to meet high quality standards for recycling. BSH
introduced a quality assurance system for recycling in Germany in 2008 to verify
compliance with these standards. Every year, an independent expert subjects the
recycling facilities to around 100 quality assurance audits. This means that BSH goes
well beyond the minimum requirements imposed by law. Other manufacturers began
joining up to this proven audit system in the middle of 2009. Together with non-
governmental organizations, the Zentralverband der Elektroindustrie (German
Electrical and Electronic Manufacturers' Association – ZVEI), recyclers' associations,
and government authorities, BSH is planning a field trial in 2010 to determine the
volume of recaptured CFCs.
Economic
Economic: Management approach and performance indicators
Goals and performance
BSH pursues a business strategy designed to achieve sustained profitability. Full
consideration is given within this strategy to the interests of all stakeholders. The company’s
commercial success flows from the rigorous pursuit of its objectives coupled with continuous
investment in production facilities and innovative product lines. Thanks to the constant
growth of its business BSH has never had to report a loss over the more than 40 years since
its foundation. In 2009, as in the previous year, the international rating agency Standard &
Poor’s confirmed BSH's external long-term rating of "A-" with a positive outlook, making it
best in class in the home appliances sector. BSH believes it has an important role to play in
future in helping to combat climate change by producing appliances that conserve resources.
This commitment promises economic benefits for the company as well as broader
environmental benefits. BSH has once again been named “best supplier" by its customers.

Principles and guidance

 Corporate Principles
 Business Conduct Guidelines

Additional information

 2009 Annual Report

EC1 Direct economic value generated and distributed


The BSH Group generated revenue of 8.405 billion euros in the year under review. Earnings
before interest and taxes (EBIT) amounted to 534 million euros, or 6.4 percent of revenue.
The 2009 tax rate for the Group as a whole was 36.6 percent. The Group’s income tax
expense amounted to 189 million euros, around 75 percent of which can be attributed to
Western Europe and 60 percent thereof to Germany. Outside Germany, 3.7 percent of the
income tax expense was attributable to Great Britain, 13.7 percent to Eastern Europe, 13.8
percent to Turkey and eight percent to Asia. Total personnel costs amounted to 1,739 billion
euros. Consolidated research and development expenses were 267 million euros, 1.5 percent
more than in the previous year. In total, BSH spent around 123,000 euros on cash donations
and donations in kind to projects in Germany in 2009. 

EC2 Risks and opportunities due to climate change


Developing energy-efficient and environmentally friendly household appliances is a key
concern for BSH. This is how the Group safeguards competitiveness and employment and
makes a significant contribution to preservation of resources and climate protection. BSH is
involved in the Energy Efficiency Initiative of industry association ZVEI, which aims to raise
energy efficiency to the top of the corporate and social agenda, and has launched its own
Group-wide Energy Excellence Initiative. 
The consumption values of BSH's are often significantly below those specified for class A,
the best energy efficiency class. For this reason, BSH has combined these appliances in a
portfolio of super-efficient home appliances with the intention of further expanding sales of
these ranges. In 2009 sales of these super-efficient appliances tripled compared with the
previous year. Sales of the BSH's most efficient appliances accounted for 15 percent of the
total number of units sold in Europe, while in terms of revenue, they accounted to as much as
18 percent of BSH's total European revenue. The appliances from the super-efficiency
portfolio sold in Europe during 2009 bring a saving of around 1.1 billion kilowatt hours of
electricity, calculated over the average useful lives of the appliances. This is equivalent to the
average annual electricity consumption of more than 300,000 private households in Germany.
Standards defining how these savings are to be recorded and calculated in the sector have yet
to be drawn up, so BSH has submitted both its procedure and the underlying data to an
external auditor for verification.

EC3 Company social welfare provision and pension obligations


Voluntary social welfare provision depends on regional requirements and local
circumstances. In Germany, for example, BSH has a company pension plan – the
Pensionskapital scheme. To date, a total of 42 million euros in company pension payments
has been paid out to former BSH employees. BSH also offers attractive options for employee-
funded retirement pension provision and provides loans to employees, anniversary bonuses,
and special leave.

EC4 Financial assistance and subsidies received from government


BSH claimed  around 230,000 euros in government subsidies worldwide during the period
under review.

EC6 Policy, practices, and proportion of spending on locally-based suppliers


BSH spends some 4 billion euros on production materials worldwide every year. Most of
these are sourced from Germany and Western Europe, as this is where most of the BSH sites
are located. BSH always seeks to purchase locally in principle, not least in order to avoid
currency risks and customs duties and keep transport distances to a minimum. Even in China
and the Americas, we procure the great majority of our materials from local suppliers. In new
markets and emerging countries in particular, we encourage suppliers to establish a base on
our sites and assist them with undertakings such as the introduction of environmental
management systems.

EC7 Procedures for local hiring and proportion of senior management hired from the
local community
Not specified

EC8 Infrastructure investments and services provided primarily for public benefit
BSH turned the plant oil stove idea into a mature and marketable product in order to help
prevent exposure to harmful combustion gases and reduce deforestation in developing
countries. The Protos plant oil stove oil provides users in areas where wood has previously
been the main fuel used in food preparation with a healthier and more environmentally
friendly alternative. Adoption of the Protos also entails a local production and marketing
concept that will create jobs in the extraction and processing of oil from indigenous plants, in
the manufacturing of the stove, and in sales. In 2010, series production of the second
generation of stoves will commence in Indonesia.
BSH-Katastrophenhilfe e.V., the company’s disaster relief fund with activities around the
world, was founded in 1999. Since then, BSH employees and directors have donated over
around 1.05 million euros to help people in areas affected by disasters. Most of its resources
in 2009 went to assist earthquake victims in the Philippines and to the Sahana Nivasa
children’s home, our long-term aid project for survivors of the 2004 Indian Ocean tsunami.
BSH's sites and subsidiaries become involved in numerous local projects too and provide
support in several forms, including product donations for good causes in society.
In Germany, BSH has a particular commitment to supporting measures aimed at raising
awareness of climate change and energy efficiency among young people. Activities in this
area in 2009 included a joint project with the German Institute for Film and Images in
Research and Teaching (FWU).

Environment
Environmental: Management approach and performance indicators
Goals and performance
BSH has set itself the goal of becoming the industry benchmark - including in its handling of
ecological and social issues within its sphere of influence. In order to capitalize on new
opportunities, BSH is concentrating on three action areas:

1. Energy efficiency: To contribute to the efficient use of resources and to climate


protection and to set standards for the industry worldwide with energy-efficient and
innovative product and production solutions.
2. Product responsibility: To continuously improve environmental protection and health
and safety throughout the product lifecycle in dialog with politicians, retailers,
consumers, suppliers and disposal contractors.
3. Know-how transfer: To offer the best possible living and working conditions to
people the world over through the transfer of BSH standards and experience in
production, product design, training and professional development.

Principles and guidance

 Environmental policy
 Corporate guidelines on environmental management
 Occupational health and safety policy

Responsibilities within the organization


Within the BSH Board of Management, Prof. Werner Vogt was responsible for
environmental protection until June 30, 2009; Winfried Seitz assumed responsibility for this
area on July 1, 2009. The Corporate Technology, Environmental Protection, and
Occupational Health and Safety Department has overall responsibility for environmental
management worldwide; environmental protection managers and health and safety officers,
who report to Head Office, are appointed at all sites worldwide to ensure the policy is
implemented. See also 4.1.

Training and awareness


Corporate Technology, Environmental Protection and Health and Safety conducts regular
audits at the BSH locations worldwide.

Monitoring mechanisms
In order to reliably achieve its environmental targets, BSH has instituted management
systems and tools. All environmentally relevant sites have environmental management
systems to ensure that all statutory obligations and internal guidelines are complied with. We
operate 28 production sites, 25 of which have now completed certification under both ISO
9001 (quality) and ISO 14001 (environmental management) and record their environmental
performance in the form of indicators. Our occupational health and safety management
regulations have been in strict compliance with the international OHSAS 18001 standard
since the beginning of 2009. 
Product environment analysis (PEA) is a tool used in product development since 1996 to
support new development or further development of appliances. Environmental performance
indicators – both product-related and production-related – provide management with a
suitable basis for the successful implementation of ideas. 
The code of conduct for BSH suppliers, which is based on the UN Global Compact and the
conventions of the International Labor Organization (ILO), has been included in supply
contracts since 2007. We had obtained an undertaking to uphold the code of conduct from our
direct material suppliers in both A and B categories by the end of 2009. These two groups
together account for more than 95 percent of our total purchasing volume, and we expect all
of our A and B suppliers to have an environmental management system in place. We only
accept new suppliers if they are prepared to recognize the code of conduct and we carry out a
basic audit that includes social and environmental aspects in every case. 

Additional information
The company suggestions initiative (Top Idea), established in 14 countries in 2009, provides
us with valuable hints on how we can optimize our processes.

Environmental performance indicators

EN1 Materials used by weight or volume


In fiscal 2009, BSH used 3,640 metric tons of environmentally relevant process materials
(oils, emulsions, solvents, acids, and caustic solutions), 770,756 metric tons of raw materials
(metals and plastic pellets), and 15,390 metric tons of auxiliary materials (coatings and
enamels). 

EN2 Percentage of materials used that are recycled input materials


Not specified

Aspect: Energy

EN3 Direct energy consumption by primary energy source


Total energy consumption during the year under review was 798 gigawatt hours (GWh),
seven percent down on the previous year’s figure of 859 GWh. The share of electrical energy
in the energy mix rose to 54 percent (previous year: 52 percent). Natural gas consumption,
which relates primarily to building and process heating, fell by more than 18 percent in 2009
and the share of gas in the energy mix accordingly fell by four percent to 32 percent. District
heating covers 13 percent of energy requirements, with 21 percent of district heating energy
being derived from biomass. Our specific energy consumption improved by two percent year-
on-year to 673 kilowatt-hours (kWh) per tonne of product in 2009. This is significantly better
than the target figure for the year of 705 kWh per tonne of product. 

EN4 Indirect energy consumption by primary source


Extract from the input-output balance sheet (input flows)
The data presented for the input and output flows covers all sites and factories at which BSH
carried out production activities during the year ending December 31, 2009, apart from the
Hortolândia site in Brazil, where manufacturing operations ceased on June 30, 2009 as a
result of the sale of BSH’s business in Brazil to Mexican manufacturer Mabe. Manufacturing
operations commenced at a new washing machine factory in Nanjing, China, in January 2009.

EN8 Total water consumption by source


Absolute water requirements fell by nine percent in 2009 to 1.56 million cubic meters (m³).
The factories derive 66 percent (previous year: 56 percent) of their fresh water needs from the
public supply, with 34 percent (previous year: 44 percent) coming from their own drinking
water supplies. The sharp decline follows the sale of BSH’s business in Brazil, where fresh
water came from own supplies. The wastewater from production processes, which makes up a
third of the total wastewater produced by the factories, undergoes physicochemical
pretreatment. 42 percent of the total volume of wastewater can be discharged directly into
surface watercourses after purification and the larger proportion of 58 percent is sent to public
treatment plants. Specific water consumption fell by four percent year-on-year to 1.32 m3 per
tonne of product and thus more than met the target figure for the year of 1.37 m3 per tonne of
product.

EN11 Land usage in protected areas


Not specified

EN12 Significant impacts of activities in protected areas


Not specified

EN16 Direct and indirect greenhouse gas emissions


BSH reported the “carbon footprint” of its Group operating activities for the first time for the
base year 2006. The calculation methodology is in line with the Greenhouse Gas Protocol of
the World Business Council for Sustainable Development/World Resources Institute
(WBCSD/WRI). The carbon footprint includes all of a company’s CO2 emissions: as well as
the “direct emissions” (Scope 1) of the production and office sites, it also includes the
“indirect emissions” (Scope 2) that result from the generation of electricity and heat by
external suppliers. A third category (Scope 3) covers “other indirect emissions” caused by
business trips, customer service activities and the transport of goods to customers.
The 2009 carbon footprint amounts to 400,000 metric tons of CO2 (adjusted prior-year value:
403,000 metric tons), a decline of almost 1 percent. Around eleven percent of this total comes
from direct emissions linked to oil and gas consumption at the BSH factories. Indirect
emissions resulting from energy consumption at the production and office sites account for 67
percent of total CO2 emissions. Business travel accounts for around eight percent, goods
distribution logistics and customer service activities for 14 percent. BSH started ascertaining
the factory-specific carbon dioxide emission values for electricity and district heating using
data obtained directly from the power generation companies in 2008. Figures for previous
years are based on the country-specific data provided by the International Energy Agency
(IEA).

EN17 Other indirect greenhouse gas emissions caused, for example, by business travel
and commuting
The recording of CO2 emissions resulting from business travel includes emissions caused by
flights, business travel by car and rail, and the use of sales and customer service vehicles. The
data for this Scope 3 reporting was extrapolated from verified regional reports (Germany and
Europe). 25 percent of CO2 emissions are caused by air travel, with 73 percent resulting from
business travel by car and two percent from rail journeys. Hire cars and leased cars are used
for most business travel undertaken for customer service, sales and other business purposes.
Social: Management approach and performance indicators

Labor practices and decent work

Management approach

Goals and performance


BSH has set itself the goal of becoming the industry benchmark - including in its handling of
ecological and social issues within its sphere of influence. In order to capitalize on new
opportunities, BSH is concentrating on three action areas:

1. Energy efficiency: To set the standard in the sector with innovative product and
manufacturing solutions that reduce resource consumption and help to combat climate
change.
2. Responsibility for our products: To continuously improve environmental protection
and health and safety throughout the product lifecycle in dialog with politicians,
retailers, consumers, suppliers and disposal contractors.
3. Knowledge transfer: To offer the best possible living and working conditions to
people the world over through the transfer of BSH standards and experience in
production, product design, training and professional development.

Principles and guidance

 Corporate Principles
 Business Conduct Guidelines
 Occupational health and safety policy
 BSH leadership principles
 CECED Code of Conduct

Responsibilities within the organization


See 4.1.
Training and awareness
The BSH leadership principles introduced in 2008 shape interactions with employees at all
BSH sites. They provide guidance for managers and practical descriptions of what is
considered to be good management at BSH. Management is being supported through the
introduction process by a global publicity program that includes intensive workshops in
which managers and their colleagues discuss how they implement the principles in everyday
practice. Instructors and multipliers are being trained to explain the leadership principles to
all employees.
Training in relation to the German General Act on Equal Treatment (AGG) is also taking
place.

Monitoring mechanisms
The Business Conduct Guidelines of the BSH Group provide employees throughout the
company with a clear code of conduct to which they can refer and to which they must adhere.
All BSH employees have a duty to comply consistently with these rules. As part of their
organizational and supervisory duties, managers take steps to ensure that business is
conducted in accordance with these guidelines. 
The code of conduct for BSH suppliers, which is based on the UN Global Compact and the
conventions of the International Labor Organization (ILO), has been included in supply
contracts since 2007. The code requires all suppliers to act in accordance with BSH’s own
principles, so they have to respect human rights, for example, avoid child labor, maintain
good working conditions, encourage environmental protection, and prevent corruption. 
We had obtained an undertaking to uphold the code of conduct from our direct material
suppliers in both A and B categories by the end of 2009. These two groups together account
for more than 95 percent of our purchasing volume. We only accept new suppliers if they are
prepared to recognize the code of conduct and we carry out a basic audit that looks at social
and environmental aspects in every case. We expect all of our A and B suppliers to have an
environmental management system in place.
BSH introduced a compliance management organization at the beginning of 2008 to help
facilitate the consistent implementation of this code – our Business Conduct Guidelines –
across the Group’s various departments and sites. This organization comprises the Corporate
Compliance Committee, the Office of the Compliance Committee, regional Compliance
Officers and an external ombudsman to whom any employee of BSH – and even any third
party for that matter – can turn, anonymously if necessary, to report infringements.

Additional information
The company suggestions initiative (Top Idea), which provides us with valuable hints on how
to optimize our processes, operated in 14 countries in 2009.

LA1 Total workforce by employment type, employment contract and region*)


LA2 Employee turnover by age group, gender and region
Like just about all organizations, BSH has begun to notice the effects of demographic change.
The average age of our workforce around the world remained more or less constant at around
38.6 years and the average length of service also remained unchanged at around eleven years.
Germany boasts a particularly high figure of 17 years, followed by Austria with 15 years.
BSH had 765 apprentices and trainees in 2009 (previous year: 763).
The Group had a total global headcount including apprentices of 39,626 people (13,895 in
Germany and 25,731 elsewhere) on December 31, 2009, around 1.6 percent fewer than at the
end of 2008. The size of the workforce was primarily reduced in the companies in Spain and
the USA. In addition, the sale of the Brazilian subsidiary reduced the Group’s total headcount
by 1,514. A total of 660 jobs were eliminated around the world. New staff were appointed in
China, Turkey, the Netherlands, Slovenia, and Luxembourg. 35 percent of the workforce is
employed in Germany, 31 percent in Western Europe (excluding Germany but including
Turkey), 20 percent in Asia, four percent in North America, and ten percent in Eastern
Europe.

LA4 Percentage of employees covered by collective bargaining agreements


Not specified

LA5 Minimum notice periods regarding significant operational changes


Not specified

LA7 Rates of injury, absenteeism and work-related fatalities


Accidents occurring at work and resulting in at least one day’s absence are recorded in the
statistics. While the average duration of absence – a broad gauge of the severity of accidents
– has risen compared with the previous year, the number of accidents per million hours
worked – our preferred indicator for the frequency of accidents – has fallen significantly.
BSH suffered a fatal workplace accident in April 2009 during loading operations involving a
fork lift truck at a finished goods warehouse. Accidents involving external companies have
been reported in a separate section within the BSH occupational health and safety statistics
since 2007. This helps to ensure that our service providers give greater consideration to
occupational health and safety and accident prevention. 
LA8 Prevention and programs for risk control in relation to serious diseases
The average age of our workforce continues to rise, especially in Europe. Mindful of the need
to prepare for the consequences of demographic change, we acted three years ago to launch
an initiative in which representatives of the factory sites, the corporate departments, customer
service, corporate technology and the Works Council collaborate in three working groups to
generate possible solutions to the associated issues. We communicate the activities underway
and their outcomes to all employees under the headline "Shaping the future – BSH prepares
for demographic change." All activities under the initiative focus primarily on health
promotion and enabling employees to carry on working. Concrete examples include our
Ergo-Check scheme, under which we assess the design of manufacturing workstations against
ergonomic criteria and undertake any necessary improvements.

LA10 Hours of training per year by employee category


Comprehensive training and development programs allow BSH to identify the most suitable
employees for the company. The BSH Academy continues to work for even tighter
integration of multimedia training methods and educational concepts to help the Group make
optimal use of its knowledge, a vital factor in value creation. Employees all over the world
have access to the Academy’s training courses via a learning platform maintained in the two
BSH Group languages – German and English. 11,141 BSH employees around the world
successfully completed web-based compliance training in 2009. Compliance training is now
available in eleven languages: German, English, Chinese, French, Greek, Dutch, Polish,
Portuguese, Russian, Spanish, and Turkish. The new online training package covering
antitrust law introduced in 2009 is available in ten languages.
Total investment in training and development in Germany in 2009 amounted to 17.4 million
euros.
LA13 Diversity of senior management and the employee structure
About 28 percent of BSH’s 39,600 or so employees are female. The average age of BSH
employees around the world remained more or less constant at around 38.6 years. As of
December 31, 2009, 194 German expatriates (previous year: 216) were based in 30 different
countries and 71 inbounds worked at German BSH sites (previous year: 46). In addition,
there were 25 cross-country transfers, i.e., transfers between sites outside Germany (previous
year: 19). The inbounds and cross-country transferees came from a total of 15 different
countries. There are also international, Group-wide personnel pools, which serve to identify,
target, and develop suitable management recruits from around the world, for example through
cross-country transfers.
We nurture the most promising of our junior staff around the world through our Junior
Executive Pool (JEP) and International Executive Pool (IEP). There were 525 junior staff in
the JEP in 2009, half of whom came from BSH companies outside Germany and 27 percent
of whom were women. Junior staff earmarked for future international management functions
are assigned to the IEP, where the proportion of female recruits reached 18 percent in 2009.
The Senior Executive Program (SEP) launched in 2007 continued to serve selected members
of the senior management group successfully during the year under review. The three-year
program is designed to prepare participants specifically for a key position within the Group.
In 2009, female participation in this program stood at ten percent. The Project Leader career
path presents another attractive professional development option for management-level staff
at BSH. Employees choosing to follow this program have the opportunity to build up their
project management knowledge and experience systematically to gain Project Manager,
Senior Project Manager or Project Director qualifications. BSH prioritizes human resource
development on the factory floor too and won Turkish HR development organization
PERYÖN’s "Blue Collar Award" in the Talent Management category in 2009.
LA14 Average salary by gender and employee category
Not specified

Human rights

Management approach

Goals and performance


BSH has set itself the goal of becoming the industry benchmark - including in its handling of
ecological and social issues within its sphere of influence. Underlying our actions are values
that we reaffirmed by signing the United Nations Global Compact in 2004. These values also
constitute a permanent element of our supplier contracts.

Principles and guidance

 Corporate Principles
 Business Conduct Guidelines

Responsibilities within the organization


See 4.1.

Training and awareness


Not specified

Monitoring mechanisms
The Business Conduct Guidelines of the BSH Group provide employees throughout the
company with a clear code of conduct to which they can refer and to which they must adhere.
All BSH employees have a duty to comply consistently with these rules. As part of their
organizational and supervisory duties, managers take steps to ensure that business is
conducted in accordance with the guidelines. We expect our supply chain too to demonstrate
integrity and respect for the law. The code of conduct for BSH suppliers, which is based on
the UN Global Compact and the conventions of the International Labor Organization (ILO),
has been included in supply contracts since 2007. The code requires all suppliers to act in
accordance with BSH’s own principles. 

Additional information

Human rights (HR) performance indicators

HR1 Percentage/number of investment decisions that include human rights clauses or


that have undergone human rights screening
Not specified

HR2 Percentage of suppliers that have undergone human rights screening*)


The code of conduct for BSH suppliers, which is based on the UN Global Compact and the
conventions of the International Labor Organization (ILO), has been included in supply
contracts since 2007. The code requires all suppliers to act in accordance with BSH’s own
principles, so they have to respect human rights, for example, avoid child labor, maintain
good working conditions, encourage environmental protection, and prevent corruption. We
had obtained an undertaking to uphold the code of conduct from our direct material suppliers
in both A and B categories by the end of 2009. These two groups together account for more
than 95 percent of our purchasing volume. We only accept new suppliers if they are prepared
to recognize the code of conduct and we carry out a basic audit that looks at social and
environmental aspects in every case. BSH is committed to dialog and development on a
partnership basis with its suppliers and carries out audits only where necessary.

HR4 Incidents of discrimination and action taken


Not specified

HR5 Business activities involving a significant risk


Not specified

HR6 Business activities with a significant risk of child labor, and action taken
Not specified

HR7 Business activities with a significant risk of forced or compulsory labor, and action
taken
Not specified

Society

Management approach

Goals and performance


BSH has set itself the goal of becoming the industry benchmark - including in its handling of
ecological and social issues within its sphere of influence. In order to capitalize on new
opportunities, BSH is concentrating on three action areas:

 Energy efficiency: To set the standard in the sector with innovative product and
manufacturing solutions that reduce resource consumption and help to combat climate
change.
 Responsibility for our products: To continuously improve environmental protection
and health and safety throughout the product lifecycle in dialog with politicians,
retailers, consumers, suppliers and disposal contractors.
 Knowledge transfer: To offer the best possible living and working conditions to
people the world over through the transfer of BSH standards and experience in
production, product design, training and professional development.

Principles and guidance

 Corporate Principles
 Business Conduct Guidelines

Responsibilities within the organization


See 4.1.

Training and awareness 


Integrity and respect for the law have always been core strands of the corporate culture at
BSH. Clear regulations like the Business Conduct Guidelines, which came into force in 2006,
and comprehensive employee training are just as central to compliance management as the
exhaustive investigation of any purported illegal activity. 
We launched a wide-ranging internet-based training program in a number of languages in
2008 in order to help ensure all employees understand and remember the importance of
values and compliance. Available to all, the program is mandatory for senior and middle
management, authorized agents, and customer- and supplier-facing employees. The program
comprises online training on the BSH Business Conduct Guidelines, on antitrust law, on anti-
corruption, and, since early 2010, also on labor law.

Monitoring mechanisms
BSH introduced a compliance management organization at the beginning of 2008 to help
facilitate the consistent implementation of this code – our Business Conduct Guidelines –
across the Group’s various departments and sites. This organization comprises the Corporate
Compliance Committee, the Office of the Compliance Committee, regional Compliance
Officers and an independent ombudsman to whom any employee of BSH – and even any
third party for that matter – can turn, anonymously if necessary, to report infringements.
BSH’s corporate compliance organization investigated 17 cases in fiscal 2009. In six cases it
was found that there had been no material breach of the guidelines. The other cases are either
ongoing or have been concluded following the implementation of appropriate measures. The
ombudsman received three reports of possible compliance breaches in 2009.

Additional information 

Society performance indicators

SO1 Minimization of negative impacts on communities


Not specified

SO2 Percentage/number of business units analyzed for risks related to corruption


Not specified

SO3 Percentage of employees trained in anticorruption policies and procedures


In 2008, BSH launched a comprehensive internet-based compliance training program in
several languages. Available to all, the program is mandatory for senior and middle
management, authorized agents, and customer- and supplier-facing employees. 11,141 BSH
employees around the world successfully completed web-based compliance training in 2009.
Compliance training is now available in eleven languages: German, English, Chinese,
French, Greek, Dutch, Polish, Portuguese, Russian, Spanish, and Turkish.
Compliance is also addressed in face-to-face training events and workshops worldwide and
has been a permanent component of the management training program provided through the
BSH Academy since 2009.

SO4 Action taken in response to incidents of corruption


The Board of Management and Corporate Compliance Committee received information about
possible unfair sales promotion activities in Germany in the summer of 2009. BSH is
investigating the matter as a top priority and is cooperating fully with the public prosecutor’s
office. Working in conjunction with external attorneys, we are ascertaining the facts of the
case and preparing corresponding legal assessments. Investigations were still ongoing when
the present report went to press. We have boosted the number of staff in the Compliance
Committee office from two to six to enhance its training capacity and its ability to provide
advice on legal compliance matters.

SO5 Public policy positions and participation in public policy development and
lobbying
Home appliances are significant contributors to the overall energy consumption of
households. With its products, BSH is particularly well placed to contribute to the protection
of resources and of the climate. This is why, as members of various associations and in our
dialog with politicians and society generally, we are advocating rapid, decisive action. This
includes the activities of the European Committee of Domestic Equipment Manufacturers
(CECED) and our involvement in the European Commission's Sustainable Energy Europe
initiative.
BSH is involved in the sector trade association ZVEI’s Energy Efficiency Initiative, which
aims to raise energy efficiency to the top of the corporate and social agenda, and has
launched its own Group-wide Energy Excellence Initiative to make consumers and
employees even more aware of energy efficiency. BSH CEO Dr. Kurt-Ludwig Gutberlet,
who has taken an especially close personal interest in this matter, continues to call for
consumers to be given better and more transparent information. One of the proposals mooted
is for the EU energy label system to be redesigned to reflect the technical progress of
products more accurately and give consumers a completely reliable way to identify the most
efficient model.
To ensure high quality standards for recycling throughout Europe, BSH has worked with the
relevant trade associations, in its capacity as a member of more than 20 national take-back
systems, to draft and encourage the adoption in practice of voluntary industry standards for
the collection, transport, storage, handling, and processing of refrigerators and freezers.

SO8 Fines/sanctions for non-compliance with laws and regulations


None

Training and continuing education leading


to qualifications
Skilled employees are an essential prerequisite for speeding up processes within the company,
controlling them in a reliable manner and enjoying success in the competitive arena. Via its in-house
BSH Academy, the group offers candidates at all levels a wealth of training opportunities, whether
for managers, junior recruits or skilled personnel. The range of topics covered was expanded by 16
percent during 2006.
During the same period, the proportion of computer-based training in the overall program rose to
more than 50 percent.

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Awards Recognizing
Commitment to the Environment
2010 BSH receives the “Innovation Prize for Climate and the Environment”

2009 In the sustainability report ranking of the 150 largest German companies, BSH occupies 8th
place overall and 1st place in the home appliance sector.

  The washing machine plant in Nauen is named “Factory of the Year” in a cross-sector
competition, in recognition of its outstanding resource efficiency

2008 BSH has received the first German Sustainability Award and is Germany’s most sustainable
company for 2008.

  For its dishwasher with the innovative zeolite drying system BSH receives the Bavarian
Energy Award
  The Neff factory in Bretten receives the “Environmental Prize for Businesses 2008” from the
state of Baden-Württemberg

2006 Dr. Kurt-Ludwig Gutberlet receives the B.A.U.M international special prize 2006 for years of
exemplary commitment to the enviroment

2005 2003/2004 “Environmental and Corporate Responsibility” report awarded first place in its
sector in Capital magazine’s rankings of 150 sustainability reports

2004 Federation of German Industries (BDI) 2003/2004 Award for the Environment for the project
“Consistent implementation of innovative technology and environmental standards in
manufacturing cooling appliances 
in China”

  Environmental prizes awarded by the Federação das Indústrias de São Paulo (FIESP) for the
project “Aqua Viva” and the project “Environmentally friendly refrigeration appliance”

2003 National Prize of the Spanish Ministry of the Environment “Premio Nacional Empresa y Medio
Ambiente 2003”

2002 Dr. Robert Kugler, as a member of the Management-Board, is voted Eco Manager of the Year
2002 by the environmental foundation of WWF Germany (World Wide Fund for Nature) and
by Capital

  An environmental prize is awarded to BSH Continental Eletrodomésticos Ltda., São Paulo


(Brazil) by the Federação das Indústrias de São Paulo (FIESP) for its implementation of Agenda
21

2000 The BSH/Environmental Report is ranked as the best German publication in its sector by
German business magazine Capital

  The cooling appliances factory in Chuzhou (China) is elevated to the ranks of “Environmental
High Tech Enterprises” by the China Environment Science Association

1997 The Bundesverband der Deutschen Industrie e.V. (BDI), Germany’s industry federation, awards
its environmental innovation prize to Product Environment Analysis

1993 U.S. Environmental Protection Agency (EPA) honors BSH with Enviromental Award

 Award-winning quality
BSH is uncompromising when it comes to quality – and that goes for every area, taking in not just products, but
processes and management too. It is BSH’s aspiration to offer its dealers and consumers the best possible quality, in
every area and at all times. 

Quality is not something that happens overnight. It requires a long, sustained effort. Proof that BSH has understood this
message from the outset is provided by the many awards it has received for the quality of its products and services over
the years. It is also confirmed by customer satisfaction surveys conducted by independent institutes. German consumer
research organization GfK found, for instance, that BSH is ranked No. 1 for customer service. Customer satisfaction is
without doubt the most important accolade a manufacturer can receive. But not the only one.

Last year, for instance, BSH picked up the “German Logistics Prize” from the country’s logistics association. The award
went to BSH for its successful introduction of a “Total Customer Logistics" initiative which puts the focus of customer
service logistics wholly on customer satisfaction. In recent years this concept has not only reduced costs in spare parts
logistics but at the same time achieved enhanced customer satisfaction. 

In the creative, artistic sphere too, the quality of BSH products has attracted attention and numerous awards. Home
appliances must after all convince consumers with their design. Take, for instance, the induction wok from Gaggenau,
which has been singled out as one of the top 100 design classics of the third millennium. BSH carried off 32 awards in
the Household/Living category in the 2006 “iF design awards”, picking up eight of the coveted “red dot” awards.

BSH also scores highly as an exemplary employer, and the magazine “karriere”, in conjunction with Corporate
Research Foundation, ranked BSH a prestigious fourth among Germany’s top employers. The ratings were based on
criteria such as opportunities for advancement, employee satisfaction and market position. In the categories of
employment and promotion opportunities, sustainability/business development, compensation and benefits and working
time models, BSH scored the maximum number of points. 

Countless national prizes have also been won in countries where BSH operates subsidiaries. Such accolades are a
cause for justified pride, serving as clear vindication of the company’s approach.

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