Introduction by the CEO
Heimo Scheuch, Chief Executive Officer of Wienerberger AG, on the strategic importance of sustainability for Wienerberger and on the 2010 Sustainability Report.
Dear Ladies and Gentlemen,
Brick production is inherently long-term because of its business model – the investment horizon for a brick plant is 30 years. However, our products are used even longer than that in most cases. Future-oriented, proactive behavior is therefore essential for Wienerberger because it allows the company to also remain successful under changing economic conditions. We ask ourselves what economic and social trends will influence society in the future, and act accordingly today. For us, sustainable entrepreneurial activity means accepting responsibility – for the use of available resources and in our dealings with stakeholders.
Just what types of challenges are we facing? Rising energy costs and climate protection have become key issues for Wienerberger and its customers. This led us to define energy efficiency as a key focal point of research and development, and to apply the results of this work in optimizing our production processes and products. Other issues are also important, including the availability of certain raw materials, healthy homes and changing lifestyles.
In the production area, we made tangible progress during 2010. We launched the Environmental Action Plan to lower our dependency on fossil energy sources and reduce CO2 emissions as far as possible. Specially designed measures were also implemented to streamline energy efficiency – e.g. by optimizing the dryer-kiln-heat system or the firing process – at selected plants. The first successes, which include a reduction of roughly 10% in specific energy requirements at one location, have already been realized and confirm that we are closer to meeting our goals.
Our product-related activities include the optimization of existing products and the development of innovative construction systems as well as a special focus on house concepts that are energy-efficient and economical at the same time. We want to increase the awareness for a holistic view of buildings – from the building shell to the technical equipment and energy carriers used. Our products not only contribute to climate protection, but also help homeowners to reduce energy costs. The momentum of development in this area is impressive: the energy required to heat a house made with Wienerberger bricks has been cut by more than one-half over the past 20 years. In 2010 we also extended our product line of high thermal insulating filled bricks to include a clay block filled with mineral wool.
Our employees are one of the most important success factors for Wienerberger, and a lasting commitment to these men and women is therefore a central part of our actions. Occupational safety was a special focus of our efforts during the reporting year. The Safety Initiative 2010 included the roll-out of a group-wide safety standard to all our plants, which substantially reduced the frequency and severity of work accidents. However, there was a fatal accident at one of our Russian plants last year. We sincerely regret this incident and have provided the worker’s family with personal and financial support within our possibilities. This tragic accident underscores the importance of our continued efforts to improve occupational safety.
We view social responsibility as an obligation that does not stop at the plant gate. In nearly all countries where we are present, we provide regular support for social projects and institutions in the regions surrounding our production facilities. In India, our activities are directed to meeting the needs of the local population – as is illustrated by the results of a survey that led us to build a health center together with a local organization and to provide funds for its ongoing operation.
In recent years we have professionalized our approach to sustainability management. Wienerberger prepares an annual program with concrete measures to support goal-oriented, sustainable development and regularly adapts this program to reflect the current operating environment. I consider it my responsibility to personally monitor the implementation of this sustainability program. We also introduced regular reporting on our challenges and successes in key areas – environmental protection in production, sustainable products, employees and corporate social responsibility – during 2009 to facilitate open and direct communications with stakeholders. In 2010 we improved both the quality and quantity of the indicators used to report ecological and social data. We started to collect additional data, among others, on CO2 emissions from countries outside the ETS system as well as the group’s water usage and waste. These improvements raised the sustainability report to level B+ under the international standards defined by the Global Reporting Initiative.
However, one thing is clear: indicators alone will not produce an improvement. Only when they are used to make the right strategic decisions will they support the sustainable development of Wienerberger. We took a further step in the right direction during 2010 with the implementation of numerous measures that will provide effective relief for the environment and create significant social benefits. I invite you to draw your own conclusions based on this report.
