14/06/2019

To our stakeholders:

I am pleased to confirm that Powerpipe System AB reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.
In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Principle 1, 2

Powerpipe is a Swedish company with a long tradition of human rights rules.
We are members of the UN Global Compact and follow it’s human rights principles. We also follow all local laws and regulations in this area.

In order to ensure the long-term focus on work, we have also set up a sustainability policy and sustainability goals for 2019, linked to our essential sustainability aspects and in line with the UN new sustainability goals.
Our quality management system regulates how we measure, follow up and act on these.

Powerpipe has set up our work ethics.
Awareness/training of staff in our work ethics.
Communicate externally.
We have a suggestion box that all employees to use freely and all suggestions are reviewed in our management Group meetings.
We encourage our suppliers to follow our work ethics and evaluate accordingly.
All framework contractors are undergoing a sustainability assessment before they can be approved as suppliers. The valuation covers aspects such as human rights, the environment, working conditions, corruption, health and safety.

100% fulfilled. We had two training sessions in our work ethics during 2018.

Principle 3, 4, 5, 6

Powerpipe Systems AB should be a safe and attractive workplace. We shall continuously develop and improve our business so that we reach success together.

We have a discrimination policy including:
All employees are unique and have the same value.
There should be no gender-related differences in payroll or employment terms.
Competence development shall be distributed equally between men and women.
There should be opportunities and be natural for both sexes to combine family and working.

Goal: We are continuously striving towards recruiting more women in our production. The ideal would be 50/50 but we have no explicitly set goal.
We are also striving towards mixing both different ages, nationalities and sexes.

Employee handbook
We have routines for non-discrimination during recruitment process.
Assessment of labour related risks (regular protection committée survey)
Framework agreement with union
We have a Strong union engagement, both blue and white collars.
We have a good cooperation with and support engagement in union work.
We have serveral additional safety routines implemented during 2019 and more to come, step by step.

Outcome: We are currently below 50/50 women and men.
We have a very good range of nationalities.
We have a very good range of different ages.

Principle 7

We are located at Göta Älv in a classified water protection area and therefore has higher demands than normal for our type of industry. A control program for the external environment has been developed and approved by the local environmental authorities.

Principle 8

We regularly perform an environmental risk evaluation (once every two years).

From this evaluation we especially monitor the areas where we might affect the environment most, seen from.

Goals: We monitor our emissions and follow up measurements of our environmental aspects, in the management review. We strive to reduce our energy waste consumption.

Principle 9

Since it´s inception in 1986, Powerpipe has worked to produce, as far as possible, products that have little impact on the environment.
In the ear 1990s, Powerpipe introduced first-rate freelance PUR foam. This development made it possible for Sweden as the first nation in the world to legislate for a ban on the import, manufacture and use of freon-based foam for district heating pipes on July 1, 1991. At this time we developed a freon-free foaming process which is still used successfully today.

Principle 7

Powerpipe are certified by Bureau Veritas for ISO 14001.
We take a cautionary approach to all material and chemical risks, eliminating them as fast as possible.

Some examples of what the program includes:
Emissions and permits for emissions with associated inspections /controls
Waste management including recycling and reporting to authorities - Periodic inspection at three-year intervals conducted by independent environmental consultant
Annual environmental report is issued and sent annually by Powerpipe to environmental management

Principle 8

We have recently set up energy mapping, going through all energy consumption at Powerpipe. From this data we take action where most needed, to reduce our energy waste. This includes mapping our diesel consumption, heat- and electric consumption.
Since 2018 we also have an ISO certificate in energy (ISO 50 001).

Waste handling: We also work continuously on reducing our material waste in different ways. This includes waste separation for waste incineration (heat recovery), and optimizing our internal recycling processes for re-melting of PEH.

Principle 9

Powerpipe´s business concept has made environmental impacts projects also prioritized in recent years, for example, ”Refilling with existing masses” where Powerpipe participated.

Life cycle analyzes regarding the manufacture of district heating pipes have been developed by Chalmers Technical College in cooperation with Powerpipe.

We have developed and continue to refine completely new products with extremely low conductivity (vacuum panels) to the district heating market. These will save a lot of energy in future networks.

We also make an effort to promote our most insulated products (”isolera mera”=”insulate more”) in every project, since this will save the global energy for us all in the long run.

Principle 7

Measuring ground emissions levels every two years: Emissions were under required level.

Principle 8

We are measuring and reporting our energy consumption and are actively implementing different measures to decrease our energy waste (all according to ISO 50 001).

Principle 9

One of our environmental goals 2018 was to to sell at least 25% of our straight pipe products with larger insulation (we succeeded).
We continue with the same goal also for 2019.

Principle 10

Powerpipe Systems AB has for a period of 30 years always been pervaded by doing business in a correct and legal manner. In the late nineties, companies themselves were exposed to cartel formation from other industry actors, where the company gained a clear insight into what could happen if actors act illegally.

Today we have a stable organization that has good competence in what is in the procurement process. Our focus is always to try to leave the best total offer to our customers within all legal frames.

We have also set up our own policy of business ethics.

In 2012-2013, management, together with all employees, developed a value base that applies to Powerpipe System AB. This is the basis for how our staff will act externally and internally to each other and in the environment we seem to be.

Our largest customer värmek evaluate us on a yearly basis. To them this is one factor of major importance.