In 2011, we were awarded the “Green Globe” certificate in recognition of our trade fair stand. Among other things, this demonstrates our commitment to the responsible use of resources.

CORPORATE SOCIAL RESPONSIBILITY

  • Environmental protection strengthened in Brazil, China and India
  • Continued focus on energy consumption
  • Continuing involvement in academic education

KSB feels a special responsibility towards its employees, the environment and society. We take this responsibility seriously, and make every effort to contribute to a functional social and economic environment. One particular focus for us is the improvement of the education of children and adolescents, but we also act wherever necessary in response to humanitarian emergencies in other regions of the world.

In 2010 KSB committed itself to the ten principles of the ­Global Compact. This UN pact with companies around the world aims to bring about a higher level of social and ­economic justice. By endorsing these principles, we also ­undertake to protect human rights, comply with mandatory labour standards, actively implement environmental protection measures and conduct our business with integrity at all our company sites. Our standards and behaviour go beyond the minimum requirements laid down in the Global Compact and, when it comes to the application of ethical standards, our sights are set even higher.

NON-EUROPEAN PLANTS SET ENVIRONMENTAL ­STANDARDS

As a manufacturing company, KSB considers environmental protection to be of particular importance. This applies to the consumption of raw materials and energy, as well as to ­production conditions and the environmental compatibility of our products.

Wherever we modernise or build new plants, we design our production facilities to prevent emissions, to use fresh water sparingly, and to protect employees and residents from noise and pollution. In 2011 this applied primarily to plants in ­India, China and Brazil. In the interests of economic sustainability, we also use renewable energies at several sites.

Our manufacturing facility in Nashik, India, serves as a model for other KSB plants. In 2011 we built a biogas plant that is used to generate some of the electricity required by the facility, and later on this year, the facility will also be supplied with electricity generated by the wind turbines and solar plants we began constructing last year. In addition, we have installed a local rainwater harvesting system, which now collects almost the entire roof runoff of the buildings. This system will allow us to harvest more than 16 million gallons of rainwater annually, with the water being used for sanitary facilities, etc.

In 2011 we also implemented a measure to reduce water ­consumption at our pump factory in Shanghai. We have ­redesigned the cooling system of the test facilities so that the water is now reused in a closed cycle, as in other locations.

In 2011 we completed construction of our new valve factory in Changzhou, China, reducing production noise to a minimum by using a range of suitable materials and disposing of all pollutant-containing production waste, such as that generated during product painting, in an environmentally responsible manner.

We want our new manufacturing facility in Jundiaí in Brazil, which we began building in 2011, to be another model plant in terms of its ecological objectives. Here we are working with an external partner to implement high environmental and occupational health and safety standards. These will include keeping the emissions from our manufacturing facility as low as possible and creating a pleasant and healthy environment for employees. Once construction work is complete, we will seek environmental certification.

ENERGY MANAGEMENT FOR PERMANENT SAVINGS

In Europe too, we see a great deal of potential for operating in a more environmentally friendly and efficient manner, and are therefore also seeking improvements here. In the year ­under review, for example, we introduced an energy management system in Germany and France with the aim of per­ma­nently and systematically reducing energy consumption at our sites. Measures include improving the energy efficiency of buildings, replacing inefficient equipment, and critically ­reviewing IT systems to reduce their power consumption.

We have for the first time prepared a comprehensive internal report for our German sites, listing areas besides energy consumption where significant environmental progress has been achieved. Continuing this reporting will enable us to evaluate and interpret our environmental activities more systematically in the future. The latest report is already helping us selectively improve our environmental management and identify weak points which need to be addressed. The document allows us for the first time to make reliable statements about all the carbon dioxide emissions generated by our manufacturing processes, which means that we can use this information to create carbon footprints for our products, something which is increasingly of interest to customers.

“GREEN” EXHIBITION STAND IN USE WORLDWIDE

We don’t just demonstrate environmental awareness at our own sites. We also set standards at the national and international trade fairs we attend to promote our company. KSB is the first mechanical engineering company to be awarded the “Green Globe” certificate for its trade fair stand. It acknowledges that we reduced waste to a minimum, mainly used ­recyclable materials, and passed on any unconsumed foodstuffs to the needy. Our stand in 2011 therefore symbolised the responsible use of consumer goods.

COMMITMENT TO ENERGY-EFFICIENT SYSTEMS

The demand for products that consume as little energy as possible and that therefore have lower operating costs is growing both for economic and ecological reasons. We also visit operators of hydraulic pump systems to highlight ways in which their energy consumption could be reduced. Our ­experts look at the entire system, provide technical ­advice, and adjust individual components so that no energy is wasted. Since pumps are among the largest electricity consumers around, such measures not only help customers cut costs, but also contribute significantly to reducing overall ­energy consumption in society.

SOCIAL COMMITMENT AIMS AT BETTER EDUCATION

As a company we see it as our duty to play an active role in our regional environment, which includes activities such as involvement in initiatives and associations that pursue social concerns. The focus of our social commitment is the education of children and adolescents, who we see as our employees of the future.

As a founding member of the “Wissensfabrik – Unternehmen für Deutschland e.V.” (Knowledge Factory – Companies for Germany), we help schools and kindergartens awaken young people’s interest in science and technology at an early stage. We provide learning materials for experiments and practical exercises, and help educators and teachers put these into use. We also support early-childhood language development with a story-telling project. We are delighted that not only current employees, but former employees too are involved in such ­activities.

In Brazil we have been supporting a programme for more than a decade that prepares young people for the job market. At four locations, we are supporting more than 40 young people who have had very little or no education due to their origin. Participants in this programme gain work experience in our company and also attend school. Our goal is to enable these young people to take up a job and earn their own ­livelihood.

In Asia, we help educate children with the KSB CARE aid fund, providing financial support to schools in China, India, Thailand and Vietnam. In Myanmar we provide scholarships to children from poor families to attend school.

Our charitable activities primarily involve initiatives and ­facilities for children, young people and socially disadvantaged groups. However, we also respond wherever necessary to ­disaster situations in which victims require immediate help. In such cases we provide funds or material goods, generally conveyed to those in need by our local subsidiaries.

We are especially proud of our employees who also support those in need in a personal capacity. This includes those working for the company in the affected countries and elsewhere. KSB employees, for example, donated money and gifts in kind to the victims of the natural and nuclear disaster in Fukushima, to the flood victims in Thailand, and to those threatened by starvation in East Africa.

HEALTH PROTECTION REQUIRES PREVENTION

The health of our employees is important to us. As well as occupational medical check-ups, we also use specific prevention programmes and sports to maintain the health and ­vitality of our workforce. We also provide counselling services to assist employees in difficult situations, for example with problems such as addictions. The health-promoting measures – which range from flu shots to subsidised memberships of sports clubs – vary by location, reflecting local needs and possibilities.

Prevention measures call for continuity. In Germany around 400 employees are currently participating in an ongoing programme set up in 2010 to prevent disorders of the musculo­skeletal system among office workers. Each day participants receive short tutorials via the Internet containing physical ­exercises they can perform at their desks to prevent such disorders. In 2011 we expanded this programme to include ­eye-muscle training exercises.

Prevention is also the aim of a health programme for trainees that in 2011 we made even more practical. It aims at increasing awareness of health issues among young employees by teaching them ways of ensuring that the mental or physical strains to which they are exposed at work do not impair their health.

ACTING RESPONSIBLY, REQUIRING RESPONSIBILITY

In our relations with our suppliers and service providers or our customers, we tolerate no misconduct of any kind – for example, in the form of personal benefits or undue influence. Before they can comply with the rules, however, our employees need to know what these are. For this reason, we have ­developed an e-learning programme for use this year that will make employees aware of the relevant legal issues at the workplace and will also cover compliance issues such as preventing corruption and anti-trust / anti-cartel legislation.

We also believe our business partners carry a responsibility for meeting social, economic and environmental standards. As a signatory to the Global Compact, KSB is committed to ensuring that its business partners also comply with the ten principles formulated therein. Our buyers therefore make sure that they only commission suppliers and service providers who adhere to these basic standards. We have adapted our purchasing terms and conditions to reflect this and ­prepared a guide that explains our expectations of our partners in the supply chain.

By encouraging our partners to observe ethical and legal standards, we can promote socially acceptable and sustain­able economic activities beyond our own corporate confines, with the aim of setting a positive example.