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CONTENT

1. Strategy and Analysis

7

1.1 Declaration by the Management Board 7

1.2 Efects of Business Activity and Risks and Opportunities 9

2. Proile of the Organisation

10

2.1 Name of the Organisation 10

2.2 Most important Brands, Products and Services 10

2.3 Organisational Structure 10

2.4 Headquarters of the Organisation 11

2.5 Countries with Business Activity 11

2.6 Ownership Structure and Legal Structure 11

2.7 Markets Served 11

2.8 Size of the Organisation 12

2.9 Fundamental Changes to the Size, Structure and Ownership Structure 12

2.10 Awards received during the Reporting Period 12

3. Report Parameters

13

3.1 Reporting Period 13

3.2 Publication of the previous Report 13

3.3 Report Cycle 13

3.4 Point of Contact for Questions on the Report and its Content 13

3.5 Procedure when determining the Report’s Contents 13

3.6 Report Boundaries 13

3.7 Limitations to the Scope of the Report 13

3.8 Basis for Reporting about Joint Ventures, Subsidiaries, etc. 13

3.9 Methods of Data Collection and Bases of Calculation 14

3.10 New Description of Indicators 14

3.11 Modiied Report Parameters 14

3.12 GRI Index 14

3.13 Scope and Foundations of an external Audit of the Report 14

4. Corporate Governance, Obligations and Commitment

15

4.1 Management Structure 15

4.2 Independence of the Chairpersons of the Highest Management Body 15

4.3 Number of independent Members of the Highest Management Body 15

4.4 The Right of Employees and Shareholders to a Say 15

4.5 Connection between the Remuneration of the Management Board and the Sustainability Performance of the Organisation 15

4.6 Mechanisms to avoid Conlicts of Interest 15

4.7 Expertise of the Members of the Highest Management Body in the Divisions of Economy, Environment and Social Afairs 16

4.8 Concepts, Codes of Behaviour and Principles of Sustainability 16

4.9 Inspection of the Sustainability Performance by the Highest Management Body 16 4.10 Evaluation of the Performance of the Highest Management Body with Regards Sustainability 16

4.11 Consideration of the Precautionary Principle 16

4.12 External Economic, Ecologic and Social Agreements and Initiatives 17

4.13 Ailiations with Associations and Special Interest Groups 17

4.14 Involved Stakeholder Groups 17

4.15 Foundation for the Selection of Stakeholders 17

4.16 Approaches for the Incorporation of Stakeholders 18

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Economy

20

Management Approach 20

EC 1 Direct economic value generated and distributed 20

EC 2 Financial implications of climate change 20

EC 3 Coverage of the organization’s deined beneit plan obligations 21

EC 4 Financial government assistance 22

EC 5 Entry level wage compared to local minimum wage 22

EC 6 Business policy, practices and proportion of expenditure for local suppliers 22 EC 7 Procedures of local hiring and proportion in management positions 22

EC 8 Development and impact of investments in welfare 22

EC 9 Indirect economic impacts 23

Environmental protection

24

Management Approach 24

EN 1 Materials used 25

EN 2 Percentage of materials used that are recycled 25

EN 3 Direct energy consumption 25

EN 4 Indirect energy consumption 26

EN 5 Energy savings 26

EN 6 Energy-eicient products and services 27

EN 7 Initiatives to reduce indirect energy consumption 28

EN 8 Total water consumption, classiied by source 28

EN 9 Water sources afected by withdrawal of water 28

EN 10 Recycled and reused water 29

EN 11 Use of space in conservation areas 29

EN 12 Impacts on biodiversity in protected areas 29

EN 13 Protected or restored natural habitats 29

EN 14 Strategies and management of efects on biodiversity 29

EN 15 Endangered species with habitats in areas afected by operations 29

EN 16 Direct and indirect greenhouse gas emissions 29

EN 17 Other relevant greenhouse gas emissions 30

EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved 30

EN 19 Emissions of ozone-depleting substances 30

EN 20 NOx, SOx and other signiicant air emissions 30

EN 21 Total waste water discharge 31

EN 22 Total weight of waste by type and method of disposal 31

EN 23 Total number and volume of signiicant spills of hazardous substances 31

EN 24 Transported, imported, exported or treated hazardous waste 31

EN 25 Water bodies and related natural habitats afected by the waste water discharge 31 EN 26 Initiatives to reduce environmental impacts of products and services 321 EN 27 Percentage of products sold, for which the packaging materials are reclaimed 32 EN 28 Fines and non-monetary sanctions for non-compliance with environmental laws and regulations 32 EN 29 Environmental impacts of transporting products, materials and employees 32

EN 30 Expenditure and investments for environmental protection 32

Work Experience Placements and decent Job Conditions

34

Management Approach 34

LA 1 Total workforce by employment contract and region 35

LA 2 Workforce luctuation 35

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LA 4 Percentage of employees covered by collective bargaining agreements 35

LA 5 Notice periods regarding signiicant operational changes 36

LA 6 Percentage of workforce represented in health and safety committees 36 LA 7 Injuries, occupational diseases, absences and total work-related deaths 36

LA 8 Health care and counselling 36

LA 9 Health and safety agreements with trade unions 37

LA 10 Further training and education measures 37

LA 11 Skills management and lifelong learning 37

LA 12 Employee performance and career development reviews 37

LA 13 Diversity in the workforce and governance bodies 38

LA 14 Ratio of basic salary of men to women 38

Human Rights

39

Management Approach 39

HR 1 Inspection of investment agreements for human rights aspects and clauses 39

HR 2 Inspection of suppliers for human rights aspects 39

HR 3 Employee training on human rights 39

HR 4 Incidents of discrimination and actions taken 39

HR 5 Business activities identiied where freedom of association or the right to collective negotiations could be jeopardised 40 HR 6 Business activities identiied as having a risk of child labour 40 HR 7 Business activities identiied as having a risk for incidents of forced or compulsory labour 40

HR 8 Human rights training of security personnel 40

HR 9 Violations involving rights of indigenous people 40

Society

41

Management Approach 41

SO 1 Efects of business activities on communities or regions 41

SO 2 Business units, which have been investigated for corruption risks 41

SO 3 Employee training in anti-corruption 41

SO 4 Incidences of corruption and measures taken 42

SO 5 Political positions and participation in forming of political will and lobbying 42

SO 6 Contributions to parties and politicians 42

SO 7 Legal actions for anti-competitive behaviour 42

SO 8 Fines for non-compliance with laws and regulations 42

Product Responsibility

43

Management Approach 43

PR 1 Life cycle stages in which health and safety impacts of products are assessed 44 PR 2 Non-compliance of regulations concerning health and product safety 44 PR 3 Legal obligations to provide information about products and services 44 PR 4 Non-compliance with legal and voluntary obligations to provide information about products and services 44

PR 5 Surveys of customer satisfaction 44

PR 6 Adherence to laws concerning advertising 45

PR 7 Non-compliance with legal and voluntary regulations concerning advertising 45

PR 8 Justiied data protection complaints 45

PR 9 Signiicant ines due to infringements against legal regulations concerning the acquisition and use of products 45

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1. Strategy and Analysis

1.1

Declaration by the Management Board

For decades, Hansgrohe has considered itself to be an “advocate of water”. A sustainable business policy is paired with the passion for this vital, sensitive and precious element. Long-term thinking and action are a traditional part of our company‘s philosophy. This can be seen from our commit-ment to environcommit-mental protection and our various commitcommit-ments to society and our workforce. The Hansgrohe Group does not consider sustainability to be an obligation. It sees it far more as a driver for innovations in all business sectors, as well as a factor to improve eiciency and cost structures.

In the 2013/2014 reporting period, the company’s commitment to employees, the environment and society bore a number of fruits: be it the in-creased energy eiciency, the improvement of occupational safety, hosting of the Hansgrohe Water Symposium or supporting the “Rheines Wasser” scientiic and sporting environmental project. Harmonising economic success, social responsibility and environmental protection is a challenge, which our employees will continue to address with their knowledge and conviction in the future.

In 2010, the executive board laid out the line of approach for the next ive years. Water consumption was to be reduced by ten percent at sites all around the world, direct CO2 emissions were to be reduced by twenty percent and ten percent fewer hazardous substances were to be used. The total weight of the products produced in 2010 was taken as the reference parameter. During the reporting period, a number of measures were taken to achieve these self-determined objectives. For example, the main focus in the 2014 inancial year was on shutting down unnecessary energy consumers. While technical facilities were often left active during non-production periods in the past, these are now switched of wherever feasible. The efect of this and a number of other measures was not long in coming:

Energy eiciency (calculated from the MWh per tonnage of sold products) has increased by ifteen percent in relation to the reference year of 2010. Despite improved energy eiciency, CO2 emissions (calculated with the constant emission factor from 2010) in the Hansgrohe Group have only fallen by ive percent in the same period. This is due to the increased production and expansion of capacity. A positive result can be reported for water consumption: Water consumption per tonnage of produced product fell by 21 percent in 2014 in comparison to the reference year of 2010. In 2014, the Hansgrohe Group used 35 percent fewer hazardous substances than in the reference year of 2010. The LDFR parameter from the ield of occupational safety was 0.56 in 2014, far below the target value of 1.

In summary, it can be recorded that we are on a positive track. The objectives we set in 2010 in terms of water consumption, use of hazardous sub-stances and occupational safety parameters have been achieved and in some cases noticeably exceeded. On the other hand, energy eiciency as measured by tonnage of produced product could be reduced by 15 percent.

For the Hansgrohe Group, energy eiciency is more purposeful for measuring CO2 emissions due to predetermined factors and will replace this in the future for this reason.

Product solutions for more resource eiciency

A fundamental factor for the ecological footprint of our company is product development, as this determines how many resources are used during the manufacture and use of products. The resource eiciency of products is a decisive factor for the future in terms of climate change and the growing world population. Drinking water provision, in particular, is a major challenge. Even in the product development stage, we begin to set the course for ensuring we are economical in our use of resources. Firstly, Hansgrohe thinks about the manufacturing process in order to save material and energy. Secondly, Hansgrohe uses ittings and shower heads with water-saving technology so that water is used very economically when the product is in use. In the reporting period, Hansgrohe generated 25 percent of its net turnover with products that are particularly economical in their use of resources.

Partners in project business

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Production put to the Test

Hansgrohe also focuses on sustainability during production. Procedures are continually examined and improved. Hansgrohe is establishing an integrated management system in the company headquarters and in all production sites. On one hand, this ensures the high quality of products and service, while also guaranteeing sustainable handling of resources and energy, occupational safety and health protection for our employees. Hansgrohe is continually improving this management system, ensuring customer satisfaction, improving our environmental sustainability in order to provide employees with a secure workplace.

In 2014, Hansgrohe started up additional facilities at the production site in China and considerably increased the production capacity. Hansgrohe’s objective will be to continue ensuring sustainable handling of resources and energy, despite increased capacities.

Employees in Focus

Social responsibility is as much a part of the Hansgrohe philosophy as the protection of the environment: Hansgrohe considers itself to be part of society and wants to contribute actively to its success. This commitment extends from the promotion of young people in Hansgrohe’s “talent factory” apprenticeship workshop to a far-reaching programme ranging from preserving health to supporting social and cultural facilities as part of water-re-lated aid projects all over the world.

Since the irst Hansgrohe employee survey in November 2011, project teams have implemented the suggestions of our workforce throughout the divisions to increase employee satisfaction and, as such, our appeal as an employer. The second employee survey took place in autumn 2014, the results of which were communicated to all employees in July 2015.

Aims for the Future

With the Hansgrohe “Green Company Steering Committee”, to which the executive board belongs, the company created an organisational frame-work in 2009 to further promote the entrenchment of sustainable economic activity into all business processes within the Hansgrohe Group. In doing so, great importance is attached to ensuring quantiiable results and veriication. Sustainability objectives are discussed at regular intervals. This will be traced along the entire target range. Accordingly, the following objectives are to be achieved by the end of 2017, measured by the reference year of 2014:

• Increase in water eiciency +10.0 % • Increase in waste eiciency + 5.0 % • Increase in energy eiciency + 2.0 % • LDFR (Lost Day Frequency Rate) < 0.7

We support our objectives through investments in safe and eicient buildings and production technology.

One example of this is our new research and development laboratory in the company headquarters with its modern heat pump technology. The regular upgrading of our existing surface coating systems emphasises our long-term focus.

We are continuously sensitising our employees about safety issues and developing safer and more ergonomic work conditions with them.

Many companies speak of “sustainable economic activities“ – at Hansgrohe, it is irmly anchored, quantiiable and transparent as a component of our corporate action on an international level.

Thorsten Klapproth

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1.2

Efects of Business Activity and Risks and Opportunities

The highest levels of water and energy consumption arise during the usage of ittings and shower heads. For this reason, Hansgrohe is developing technology to improve water and energy eiciency during use, such as EcoSmart and CoolStart technology. However, the understanding of sustain-able action goes far beyond product development. The consistent focussing on sustainability aims raises lots of forward-looking questions on which Hansgrohe concentrates intensively: How can water and energy be used more eiciently in the bathroom to further reduce the CO2 footprint without limiting comfort? How can products be developed and produced today so that they create no pollution for the next generation and our environment? What lifestyles characterise our future and how can good design, for example as universal design, support a sustainable lifestyle? How can the environmental balance of production and logistics processes be further optimised? How can the health of employees be preserved despite longer working lives and how can occupational safety be further increased?

The European Union’s REACH Regulation has an external inluence on the operating activity of the company. The REACH Regulation (EU 1907/2006) is the European Chemical Regulation for the Registration, Evaluation, Authorisation and Restriction of Chemicals.

As a ittings and shower head manufacturer with a high vertical range of manufacture, Hansgrohe is dependent on the use of chemicals. Safety and environmental protection have always been a top priority for Hansgrohe. For this reason, together with the specialist divisions, Hansgrohe environ-mental, health and occupational safety management is concerned with the requirements resulting from REACH and implements all the necessary measures.

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2. Proile of the Organisation

2.1

Name of the Organisation

Hansgrohe SE

2.2

Most important Brands, Products and Services

Hansgrohe is a manufacturer of ittings (bathroom and kitchen), shower heads, complete shower systems, tubs and grey water recycling systems. The products are distributed under four brands. Within the international network of the Hansgrohe Group, Hansgrohe is the brand which has made a name for itself worldwide as a result of product innovations, quality and functionality in the ields of shower heads and bathroom and kitchen ittings. Axor is the designer brand of Hansgrohe SE. In line with its motto – “Designer Visions for Your Bathroom” – Axor works with selected designers, architects and interior designers to develop collections which ofer lots of diferent solutions for creating individual bathrooms. The brand Pharo focus-es on furnishing feel-good bathrooms with premium shower and spa systems, such as shower templfocus-es, shower panels, whirlpools and steam showers. Pontos is the specialist for grey water recycling and heat recovery from waste water.

2.3

Organisational Structure

During the 2013/2014 reporting period, the business divisions of Hansgrohe SE consisted of:

Controlling & Accounting, Personnel, Research & Development, International Marketing Services, Corporate Communication, Logistics, Information Services, Business Processes & Customer Logistics, Purchasing, Technical Service Center, Industrial Engineering, Quality Management, Production, Facility Management, Environment Health & Safety und Technology Management.

Hansgrohe is represented on all continents with 34 companies and 22 sales oices. Manufacturing is carried out at two German production sites, as well as in France, the Netherlands, the USA and in China speciically for the Chinese market. With the progressive globalisation of the Hansgro-he Group, competences and services are being more strongly aligned to speciic, local market requirements and processes are being increasingly standardised in the individual business divisions.

Members of the Hansgrohe supervisory board (as of November 2015):

Klaus F. Jaenecke (Chairman since 15th April 2015)

Richard O‘Reagan (Deputy Chairman; Group President, Masco Corporation) Keith Allman (President und CEO, Masco Corporation)

Pierre Nikolas Grohe (since 15th April 2015) Barbara Scholl (elected employee representative) Stefan Krischak (elected employee representative)

Members of the Hansgrohe supervisory board in the 2014 inancial year:

Klaus Grohe (Chairman until 15th April 2015)

Richard O‘Reagan (Deputy Chairman; Group President, Masco Corporation) Keith Allman (President und CEO, Masco Corporation)

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Members of the Hansgrohe supervisory board in the 2013 inancial year:

Klaus Grohe (Chairman) Lau Frandsen (Deputy Chairman)

Keith Allman (Group President, Masco Corporation) Gerald Volas (Group President, Masco Corporation) Barbara Scholl (elected employee representative) Stefan Krischak (elected employee representative)

Members of the Hansgrohe executive board (as of November 2015):

Thorsten Klapproth (Chairman) (since 1st October 2014) Richard Grohe (Deputy Chairman)

Frank Schnatz (since 1st Mai 2015) Frank Semling

Members of the Hansgrohe executive board in the 2013/2014 reporting period:

Siegfried Gänßlen (Chairman) (until 30th September 2014) Richard Grohe (Deputy Chairman)

Marc Griggel (until 30th April 2015) Frank Semling

2.4

Headquarters of the Organisation

Hansgrohe SE Auestraße 5-9 77761 Schiltach Deutschland

2.5

Countries with Business Activity

The Hansgrohe Group produces in Germany, France, the Netherlands, the USA and in China speciically for the Chinese market. With 34 companies and 22 sales oices worldwide, Hansgrohe is one of the few global players in the sanitary industry. In the 2014 inancial year, the ittings and shower head specialist employed about 3,650 employees and supplied ittings and shower heads to 144 countries.

2.6

Ownership Structure and Legal Structure

Hansgrohe is a European public limited company (Societas Europaea), which is not listed on the stock exchange. Two main shareholders are involved in the Hansgrohe Group: the family of Klaus Grohe, Schiltach (32 percent) and the American Masco Corporation, Taylor/Michigan (68 percent).

2.7

Markets Served

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2.8

Size of the Organisation

In the 2014 reporting period, the import and export turnover of the Hansgrohe Group amounted to over € 874.1 million (2013: € 841.4 million). As of 31st December 2014, the company had 3,650 employees worldwide –149 more than on the previous year’s reporting date.

2.9 Fundamental Changes to the Size, Structure and Ownership Structure

There were no fundamental changes to the size, structure or ownership structure in the reporting period.

2.10 Awards received during the Reporting Period

The news magazine Focus, XING network and employer ratings platform Kununu awarded Hansgrohe the prize for “Germany’s Best Employer” in 2014.

Hansgrohe once again received a number of awards in the reporting period – mainly in the ield of product design. Hansgrohe has been among the “Brands of the Century” since 2013. In the same year, the company received the internationally coveted “Red Dot” design prize for the Axor Starck Organic collection with the award of “Best of the Best” and “China‘s Successful Design Award”. The company was also awarded Gold at the Architects‘ Darling Awards. In 2014, the world-renowned design prize of the interior design industry, the “Best of Best” Interior Innovation Award was awarded to the Axor LampShower and the Axor Showerpipe. The jury in the “Red Dot” competition rewarded the best product design combined with the highest functionality with the “Best of the Best” award for both products. The jury of the Wallpaper* Design Awards 2014 certiied an outstanding design process from concept to inished product for the Axor brand and awarded the Axor WaterDream the prize in the “Best Shower Concept” category. With the WaterDream range, Axor has been developed conceptual visions relating to the bathroom with international architects, interior decorators and designers for over twenty years.

In 2014, the Hansgrohe brand received the German Prize for Online Communication for its “Word-of-Mouth” campaign to launch the Raindance Select E 120 shower head. It honours outstanding projects, professional campaign planning and pioneering strategies of digital communication. In a survey of 20,000 specialist sanitation engineers by “markt intern” (mi) industry service, the Hansgrohe Metris model emerged as the “Fitting of the Year” for the second time in a row. The performance list choose Hansgrohe as the “Innovation Champion of the Year 2014” for its Select technology. The company also received the best industry scores for its services in the categories of “Support by the Manufacturer”, “End Consumer Advertising”, “Delivery Service” and “Easy Assembly”.

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3. Report Parameters

3.1

Reporting Period

The reporting period is 2013/2014. For certain indicators, additional information from previous years is also provided to show a better overview of development.

3.2 Publication of the previous Report

The last Sustainability Report by Hansgrohe SE for 2011/2012 was published in 2013. The report has been compiled as per the GRI G3 guidelines for Application Level A.

3.3

Report Cycle

The report was compiled in accordance with the GRI-Index again for 2014. On this basis, the report is to be updated every two years.

3.4

Point of Contact for Questions on the Report and its Content

Dr. Jörg Hass

Head of Public Relations

[email protected] / Phone: +49 (0)7836/51-3009 Hansgrohe SE Auestraße 5-9

77761 Schiltach Germany

Dieter Hauser

Head of Environment, Health and Safety

[email protected] / Phone: +49 (0)7836/51-1471 Hansgrohe SE Auestraße 5-9

77761 Schiltach Germany

3.5

Procedure when determining the Report’s Contents

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3.6

Report Boundaries

In principle, the report relates to the entire Hansgrohe Group. Where the reporting is restricted to a certain division of the company, then this is stated clearly and concisely.

3.7

Limitations to the Scope of the Report

There are no signiicant limitations.

3.8

Basis for Reporting about Joint Ventures, Subsidiaries, etc.

As part of this report, the reporting concerns the entire group.

3.9

Methods of Data Collection and Bases of Calculation

The methods and bases of data collection are summarised in the relevant sections, when necessary and possible.

3.10 New Description of Indicators

This indicator is not relevant. This report is compiled in accordance with GRI G3 Standards.

3.11 Modiied Report Parameters

This indicator is not relevant. This report is compiled in accordance with GRI G3Standards.

3.12 GRI Index

This report is structured in accordance with the Guidelines of GRI G3.

3.13 Scope and Foundations of an external Audit of the Report

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4. Corporate Governance,

Obligations and Commitment

4.1

Management Structure

Thorsten Klapproth started his post as chairman of the executive board of Hansgrohe SE on 1st October 2014 and replaced Siegfried Gänßlen at the head of the ittings and shower head manufacturer, when he retired from the company due to his age.

4.2

Independence of the Chairpersons of the Highest Management Body

The executive board is the highest management body. The chairman of the executive board was Siegfried Gänßlen until 30th September 2014. Since 1st October 2014, Thorsten Klapproth has presided over the executive board. Decisions are made on the basis of consensus.

4.3

Number of independent Members of the Highest Management Body

Four people belong to the executive board. Thorsten Klapproth is the chairman of the executive board. His deputy is Richard Grohe. The other mem-bers of the executive board are Frank Schnatz (Marc Griggel until 30th April 2015), responsible for Production and Quality Management and Frank Semling, who is responsible for the divisions of Supply Chain Management and IT. Since 2015, Frank Semling has also been the labour director.

4.4

The Right of Employees and Shareholders to a Say

Hansgrohe employees have the opportunity to play a part in the Hansgrohe works council. Two elected employees’ representatives are members of the supervisory board in the form of Stefan Krischak and Barbara Scholl.

The main shareholder Masco is represented with two of a total of six members in the Hansgrohe supervisory board: Keith Allman (President and CEO, Masco Corporation) and Richard O’Reagan (Group President, Masco Corporation). The chairman of the supervisory board is Klaus F. Jaenecke. Pierre Nikolas Grohe represents the Syngroh investment company of the Klaus Grohe family in the supervisory board.

4.5

Connection between the Remuneration of the Management Board and the

Sustaina-bility Performance of the Organisation

The remuneration of the executive board has no direct connection to the sustainability performance of the Hansgrohe Group.

4.6

Mechanisms to avoid Conlicts of Interest

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e-learning system. For example, possible conlicts of interest are stated and regulations are set down. This concerns regulations on the acceptance of gifts, hospitality, participation in events, possible inancial favouring of relatives, handling of information and competitors, of inancial auditors, government oicials and other oicials.

Within the Hansgrohe Group, there is no crossholding with equitable or voting interest with other companies.

4.7

Expertise of the Members of the Highest Management Body in the Divisions

of Economy, Environment and Social Afairs

There are no formal qualiication requirements here.

4.8

Concepts, Codes of Behaviour and Principles of Sustainability

As a company, which observes its social and ecological responsibility, Hansgrohe has formulated its own concepts as a basis for the responsible handling of all employees. More information on the guiding principles of a sustainability company can be found on the Hansgrohe website: www.hansgrohe.com > Environment and sustainability > Green Company > Guiding Principles of the Company

The Hansgrohe corporate philosophy is considered to be a “living working paper”, which is discussed each year in a group of management and employees and, if necessary, adapted to the changed social and economic conditions. Division by division, all employee are then invited once a year by their managers to the “Hansgrohe U’phil-Kaskade” conference to discuss various aspects. The management takes up the suggestions and ideas of its teams in turn as input for the superordinate corporate philosophy conference. As a global company, Hansgrohe’s corporate philosophy considers the company to be an international family, in which all the employees have their place and are respected irrespective of their origin, language, race, culture, religion, gender and age. The company and employees attach particular importance to open and fair cooperation, tolerance and the ability to deal with conlict, innovative and creative thinking.

4.9

Inspection of the Sustainability Performance by the Highest Management Body

The sustainability performance of the Hansgrohe Group is assessed by the “Green Company” steering committee. The executive board and the divisional managers come together each quarter to make operative and strategic decisions in the ield of sustainability. At least once a year, the objectives are inspected and the current achievement of goals is analysed in the “Green Company” steering committee. To further anchor sustaina-bility into the strategic alignment of the company, the division of Sustainasustaina-bility Controlling was introduced in 2010, which is attached directly to the chairman of the board. As a result of its reporting, the management committee can access the data at any time and view and track the progress of projects accordingly.

4.10 Evaluation of the Performance of the Highest Management Body

with Regards Sustainability

There is no separate performance evaluation relating to sustainability.

4.11 Consideration of the Precautionary Principle

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princi-ple as per Article 15 of the Rio Declaration. In terms of products, all the developments run through a risk analysis during the planning and construction phase, in which the possible health and safety aspects for users of the future product are examined.

4.12 External Economic, Ecologic and Social Agreements and Initiatives

In principle, Hansgrohe aligns itself with the international standards which have been identiied as important in all its business activities and strategic development processes. Rules of conduct are deined through various regulations (for example guiding principles of a sustainable company or direc-tives from Masco the main shareholder). Eforts are made to ensure continual inspection and further improvements. Hansgrohe has not yet oicially adopted external standards, but uses their content to promote the internal improvement process.

4.13 Ailiations with Associations and Special Interest Groups

Hansgrohe SE is a member of various associations and special interest groups, which contribute to sustainable development:

IBU (Institute of Construction & Environment) Industrie Design Forum

VDI Verein Deutscher Ingenieure (Association of German Engineers) Verband für Sicherheit (safety association)

Allianz pro Nachhaltigkeit (pro-sustainability alliance) fesa e.V.

DGNB (German Sustainable Building Council)

Among others, Hansgrohe SE is a founding member of the German Sustainable Building Council (DGNB). The intensive networking with architects, specialist engineers, investors, project developers and many others from the value added chain of construction leads to a fruitful exchange about the future of building. With the motto of Sustainability, social and technical developments on the international markets are assessed, new perspectives are found to old questions and pioneering innovations are developed.

ICV (International Controller Association)

The association has dealt with the issues of “green controlling” and “green management tools” for several years.

4.14 Involved Stakeholder Groups

Hansgrohe’s most important stakeholder groups include customers, employees, suppliers, neighbours, local communities, political organisations, associations, legislative authorities, supervisory bodies, research institutes, non-governmental organisations and trade unions. As part of a promotion, the stakeholder management of Hansgrohe SE was examined in 2014.

4.15 Foundation for the Selection of Stakeholders

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4.16 Approaches for the Incorporation of Stakeholders

The Hansgrohe Group is in dialogue with all stakeholders. However, some of the groups named in 4.14 are particularly involved with sustainable objectives at the moment.

One example is the questionnaire of Hansgrohe employees at German sites in 2011. The executive board initiated the “Top Employer Initiative” (TEI) project on the basis of these results. Since then, project teams have developed suggested improvements, which have been and will continue to be implemented in a number of measures. As well as making working hours more lexible, providing services such as childcare in the Easter and summer holidays, crèche and nursery places and information folders for parents-to-be, Hansgrohe also ofers social counselling. In doing so, employees are supported in successfully marrying their professional and private lives together. A social advisor supports those seeking advice and provides infor-mation relating to professional and private issues. The employee survey was carried out again at the end of 2014.

As part of the incorporation of new suppliers into a Suppler Code aligned to Masco guidelines, all Hansgrohe suppliers are now obligated to provide information about sustainability criteria and their own social and environmental behaviour.

In workshops, information events, the annual Hansgrohe Water Symposium and tours through pertinent exhibitions, through the German Hansgrohe factories and in the “Our Water” exhibition area in the Hansgrohe Aquademie in Schiltach, interested end consumers and specialists can gain an insight into sustainable issues concerning water, as well as production procedures, products and initiatives for their own sustainable action.

The issuing of prizes for the long-term commitment of Hansgrohe employees or for “green ideas” from up-and-coming designers opens up a platform for the subject of sustainability, as well as the regular, technical exchange with research facilities, architects, facility and hotel managers, bathroom planners and itters. In the innovation group of the Hansgrohe Customer Club, new product developments are discussed in relation to the needs of the market. The subject of saving energy and water is the focus here, under the view point of sustainability.

For example, employees are included through the IdeaNet on the intranet. Employees are able to input ideas for new products and evaluate and comment on other concepts here. All the suggestions are followed up and evaluated by the product management. At Hansgrohe, there is also the works suggestion scheme to improve occupational safety, environmental protection and to reduce workloads for employees.

Another example for the incorporation of a stakeholder group is the involvement of Hansgrohe SE in a citizens’ forum, which was started up in 2012 due to the planned expansion of the Hansgrohe factory in the industrial area in Elgersweier, Ofenburg. The company presented its preliminary plans to the Elgersweier inhabitants and representatives of the town and communities and found a mutual solution after several roundtable discussions with all parties involved. The citizens’ suggestions were incorporated into the planning and ideas were developed with the citizens for the compensation area. Among other things, a four-metre high wall planted with domestic plants will be built. As well as noise protection, this will also integrate the Hansgrohe’s expansion into the landscape. In addition, trees and shrubs will be planted extensively. The foundations for the building were laid in spring 2015.

4.17 Handling Questions and Concerns of our Stakeholders

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Economy

Management Approach

Generally stable, but with major luctuations in regional economies – this is how the global economic situation can be summed up in 2014. The Hansgrohe Group was able to increase its turnover by 3.9 percent in this climate, achieving another record turnover.

The Hansgrohe Group’s strategic success factors are its guarantee for a stable development of turnover. Through the steadily increasing internation-alisation of the last few years, Hansgrohe now distributes its products to 144 countries, making it more independent from the economic development of individual countries and sales regions.

In 2014, Hansgrohe gained market shares in almost all sales regions. Above all, the international project business developed positively.

Hansgrohe is an innovation leader in the sanitary industry and invests extensively in research and development. In 2014, a number of new products were launched on the market. The Hansgrohe Group is lexible as a result of the innovative strength and able to adapt quickly to market changes. Hansgrohe SE generated 26.9 percent of its turnover with these new products (three years or younger).

EC 1 Direct economic value generated and distributed

In 2014, the company achieved a new record in terms of turnover. With a gain of 3.9 percent, the transaction volume climbed by about €33 million. In 2014, the total import and export turnover amounted to over €874 million (2013: €841 million). All the distribution channels contributed to the growth in turnover. The materials costs amounted to €367 million, with a further €196 million spent on personnel costs. Other operating expenses amounted to €159 million. In 2014, we were able to considerably exceed the EBIT margin again with 17.3 percent. In 2013, this was 14.9 percent.

EC 2 Financial implications of climate change

Hansgrohe observes the consequences of climate change and the regulations brought in as a result in great detail. Legal guidelines concerning climate protection are complied with, but play no major role for the business activities of Hansgrohe and represent no particular risk. Increasing energy prices are monitored intensively. Through intelligent energy management and new technology in the various factories, eforts are made to manufacture products in an eco-friendly manner. Aspects are also incorporated into the product development stage in order to ofer customers wa-ter-saving and therefore energy-saving products.

In the risk report of the World Economic Forum 2013, the future water supply is determined as one of the greatest social risks against the background of climate change and the growing world population. Both the quality and quantity of the available drinking water are the focus here.

As a company, whose products inluence the direct handling of drinking water, Hansgrohe develops solutions to use water eiciently and to preserve the water quality for users. With EcoSmart, AirPower and CoolStart, technology is used for the ittings and shower heads, which limits the low or helps to reduce hot water consumption, and therefore energy consumption. The turnover share of resource-friendly products continues to be stable at 25 percent in the 2013/2014 reporting period.

The risks, which arise for the global Hansgrohe sites, are dependent on country-speciic conditions. It is not possible to quantify these exactly.

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In the same way, laws and regulations on both European and international levels inluence the economic action of Hansgrohe. As a result of its pro-active action, such as in the “Green Company” steering committee, the Hansgrohe Group is in the position to react to changing conditions promptly.

The monitoring and evaluation of company chances and risks is guaranteed through the risk management procedure. It is not possible to make a quantitative statement about the inancial consequences of climate change.

EC 3 Coverage of the organization’s deined beneit plan obligations

It is only possible to make a complete statement about the organisation’s additional beneits for the company’s German sites. Beneits at foreign sites are based on the relevant country’s practices

In 2014, Hansgrohe paid its employees in Germany a proit share of €1.25 million (2013: €1.1 million). Every year at Christmas, employees also have the chance to choose one of several attractive gifts. All Hansgrohe employees have the option of claiming a free Jobticket for journeys to the workplace. In 2014, approx. 1,000 employees took advantage of the Hansgrohe Jobticket. In addition, the company paid a ixed amount to the transport associations, plus the payment of tax on the monetary beneits.

Food in the canteens at both the Schiltach and Ofenburg factories (operated by Aramark) is subsidised with a ixed amount. The company also covers all the costs to ensure smooth running and infrastructure of the canteen’s operation.

According to speciic criteria, all employees at the two German Hansgrohe sites are eligible for a employer-inanced pension plan. Depending on the income, the company inances health care services, which can result in an old-age pension, early retirement fund, survivor’s pension or invalid’s pension for the employee or surviving dependent when the beneits become due.

As part of the labour agreement with IG Metall, with which Hansgrohe is ailiated, full-time employees are entitled to a subsidy of €26.59 per month (€13.29 for apprentices) as a tax-free retirement compensation to employees for capital accumulation purposes (AVWL).

Hansgrohe ofers an additional service at its German sites in the form of free Jobticket for Hansgrohe employees. The Ticket allows employees to use public transport from their home to their place of work. In addition, Hansgrohe also subsidises some bus routes at international locations to achieve a better connections between the factories and the local public transport.

Hansgrohe provides further services to its employees to ensure a better compatibility between work and family life. As well as making working hours more lexible, providing services such as childcare in the Easter and summer holidays, crèche and nursery places and information folders for parents-to-be, Hansgrohe also ofers Hansgrohe social counselling. In doing so, employees are supported in successfully marrying their professional and private lives together. A social advisor supports and provides advice about professional and private questions and problems, develops solutions in collaboration with employees and helps to refuel. The services are being received well by employees.

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A special service has existed for Hansgrohe’s young staf since 2008: Under the title of “HansFit – Health Promotion in Apprenticeships”, a three-year programme to promote health-conscious behaviour of apprentices and placement students is ofered. The aim is to sustainably improved health competence. The content of HansFit days include elements from the action areas of the Hansgrohe health management department. The aim is to provide apprentices and placement students with a wide range of knowledge and make “health come alive”.

The focal points are “Movement and Ergonomics”, “Nutrition and Traic Accident Prevention”, “Dependency Prevention” and “Life Balance”. In discussions with police experts and a visit to a clinic, the apprentices are shown the fatal consequences of drugs and a non-attentive attitude to your own body. Together with a healthcare professional, the question of “sense and nonsense of food supplements” is examined and the apprentices and placement students ind out whether they are covering their daily vitamin requirements in a self-check.

The challenges of the demographic change will shape personnel work in the 2020s. To set the right course today, a Demographics study group was set up in 2014 and the demographic situation in the German divisions was systematically analysed. Fundamental ields of action (e.g. “Attracting and Retaining Employees”, “Preserving Knowledge and Developing Employees”) were identiied and summarised in a Demographic road map for the coming years.

EC 4 Financial government assistance

There was no noteworthy inancial government assistance in the reporting period.

EC 5 Entry level wage compared to local minimum wage

Employee payment is in accordance with the collective agreements of the metal and electrical industries. The lowest pay grade here is already considerably over the legal minimum wage of € 8.50 per hour. To pay appropriate and fair wages on an international level as well, regular salary studies are made in the relevant countries.

EC 6 Business policy, practices and proportion of expenditure for local suppliers

The selection of suppliers and procurement management focus on criteria such as cost aspects, deadline targets and delivery reliability. In addition, the commitment of suppliers to sustainability is also queried. Hansgrohe prefers non-local suppliers, but works to a certain degree with regional suppliers at our individual sites.

EC 7 Procedures of local hiring and proportion in management positions

When hiring employees, the relevant applicant proile is the crucial aspect for Hansgrohe. Due to the evolved structures, both regional employees and employees, who move to Hansgrohe from further aield, are represented in all levels of the company. Through speciic measures of personnel development, management positions are largely intended to be illed from within the company.

EC 8 Development and impact of investments in welfare

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In total, Hansgrohe SE donated € 108,812 during the reporting period (donations of items: € 15,821, donations of money: € 92,992). About € 15,000 was donated in 2013 for the “Toilets make School” project by the (GermanToilet Organisation). This amount was largely donated in cash to the winning schools from the previous competition, but also in the form of product donations. The GTO drew attention to the precarious situation in German school toilets with its open competition. The schools could apply with concepts to improve the often terrible state of their toilets.

A donation of products totalling over € 5,000 went to the new building of the cerebral palsy residential home in Renchen. Hansgrohe employees took part in the long jump challenge for UNICEF in Ofenburg. Over € 2,000 went to the children afected by the civil war in Syria.

The VfR Elgersweier football team, which has been awarded several sustainability prizes, was supported with water-saving and energy-saving Hans-grohe products totalling over € 1,200 when it made energy-related upgrades to its clubhouse. To ensure water supply for toilets in a school of 1,500 children, a cheque for € 5,350 was sent to the Engineers without Borders of the KIT Karlsruhe for their voluntary work on-site. The money was only used for materials and travel costs.

€ 35,000 was donated to the “Kinder brauchen Frieden e.V.” association in Hechingen for all the sanitary facilities, including service provision, of a primary school in Rwanda. Special Hansgrohe ittings with spindle valves were used to meet the local requirements. In total, € 50,000 from Hans-grohe employee donations were used for this project.

Care ittings and shower heads and electric mixers from Hansgrohe and Axor totalling € 3,600 are installed in the Luftikus children’s home in Baiers-bronn. Long-term ventilated children ind a home for the future here.

In two holiday homes, which are also housed in the building, families can ind the relaxation they need together with their care-dependent child.

EC 9 Indirect economic impacts

A total of 3,650 employees worked for the Hansgrohe Group worldwide in 2014. In comparison to the previous year, this is an increase of 149 employees or about 4 percent. As a result, Hansgrohe is one of the largest employers at its German sites of Schiltach and Ofenburg and an impor-tant taxpayer for the local government authorities. The company is also one of the signiicant training companies in Schiltach and in the region of Kinzigtal. With an apprenticeship quota of 6.6 percent, Hansgrohe traditionally makes large investments in the vocational training of young people. In general, building measures, such as the research and development laboratory currently being built at the Schiltach headquarters, have positive economic developments for the construction and trade companies commissioned with the work. Lots of new developments for more eicient pro-duction processes require cooperation with specialist companies from the ield of engineering and mechanical engineering. With Hansgrohe as the project partner, interesting economic perspectives are also created for this companies.

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Environmental protection

Management Approach

The responsible handling of the vital element of water is essential to Hansgrohe. The company understands protecting the environment and the as-sumption of social responsibility to be important drivers for innovations in products and processes.

The integrated management system at the company headquarters and industrial premises in Germany and France correspond to the international requirements on environmental management systems (DIN EN ISO 14001:2004). Since 2014, the requirements on energy management systems (DIN EN ISO 50001:2011) have been fulilled at the German industrial premises.

The four sub-sections of the integrated management system: Hansgrohe has quality, environment, energy and occupational safety / health manage-ment regularly inspected and certiied by independent certiication organisations.

In 2014, Hansgrohe successfully had its integrated management system recertiied. Since 2014, Hansgrohe SE has fulilled the requirements on en-ergy management systems at the German industrial premises. In the French production factory, the integrated management system was successfully expanded to include environment management and occupational safety and health protection management in 2014.

Hansgrohe SE fulils the requirements of the pertinent international regulations:

DIN EN ISO 9001:2008 for quality management systems DIN EN ISO 14001:2004 for environment management systems DIN EN ISO 50001:2011 for energy management systems

BS OHSAS 18001:2007 for occupational safety and health protection management systems

At the end of 2014, the integrated management system had the following scope.

Industrial premises Quality management system

Environment management system

Energy management system

A&G management system

Hansgrohe SE

Headquarters ISO 9001 ISO 14001 ISO 50001 OHSAS 18001

Hansgrohe SE

Schiltach West factory ISO 9001 ISO 14001 ISO 50001 OHSAS 18001

Hansgrohe SE

Ofenburg factory ISO 9001 ISO 14001 ISO 50001 OHSAS 18001

Hansgrohe Deutschland

Vertriebs GmbH ISO 9001 ISO 14001 N/A OHSAS 18001

Hansgrohe SE

Alpirsbach factory N/A N/A ISO 50001 N/A

Hansgrohe SE

Wasselonne (F) factory ISO 9001 ISO 14001 N/A OHSAS 18001

Cleopatra B.V.

ISO 9001 N/A N/A N/A

Hansgrohe Sanitary

Prod-ucts (Shanghai) Co. Ltd ISO 9001 N/A N/A N/A

Hansgrohe Inc. ISO 9001 ISO 14001

(not part of IMS) N/A

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The Hansgrohe Group has set up a “Green Company” steering committee to manage its sustainability performance. This committee is occupied by representatives from production, development, controlling, human resources, public relations and the executive board.

The “Green Company” steering committee meets at regular intervals, adopts sustainability objectives and decides on the execution of sustainable projects. Sustainability controlling will check whether the targets are achieved and, where necessary, corrective measures will be taken.

In the 2013/2014 reporting period, the ecological sustainability performance was essentially realised through energy saving measures. Energy saving measures were initially implemented in the energy management sectors (automatic switching of of unnecessary consumers). While technical facilities were often left active during non-production periods in the past, these are now switched of where feasible. Further savings have been real-ised in the ields of optimisation of ventilation system controllers and new concepts for compressed air and refrigeration supply.

The administration department has reduced its paper consumption through a number of measures. In December 2014, Hansgrohe adopted a standardised fax, copying and printing concept, for example. In 2014, the Technical Service Centre used paperless documentation and optimised replacement parts packaging. There is no need to attach the technical publication to the products, as the assembly steps are shown directly on the product label.

Ambitious sustainability objectives have been adopted for 2015 to 2017.

EN 1 Materials used

The most important materials used by the Hansgrohe Group are metals, plastics and chemicals. Metals and plastics are mainly used for the manufac-turing of washbasin ittings or shower head base plates. Chemicals are mainly used within the galvanisation process to coat the surfaces of brass and plastic base plates. In 2014, the tonnage of used materials, particularly metals, increased due to the development of our own production facilities. The posted goods receipts were used as the database for the raw materials used.

Raw material usage in t

Year 2010 2011 2012 2013 2014

Metals 2,924 3,042 3,237 3,138 4,349

Plastics 2,224 2,384 2,301 2,154 2,209

Chemicals 1,499 1,384 1,281 1,226 1,234

Total 6,647 6,811 6,818 6,519 7,792

EN 2 Percentage of materials used that are recycled

As part of the moulding procedure of ittings, sprues occur, which are sawn of after the moulded body has cooled and directly reintroduced into the moulding process to some degree. Unfortunately, this proportion cannot be measured at the moment.

EN 3 Direct energy consumption

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Gas

Year 2010 2011 2012 2013 2014

Germany 81,606 GJ 73,966 GJ 76,840 GJ 74,892 GJ 62,704 GJ

China 772 GJ 506 GJ 1,254 GJ 984 GJ 1,113 GJ

USA 9,775 GJ 3,868 GJ 5,251 GJ 6,925 GJ 8,387 GJ

France 1,854 GJ 1,987 GJ 3,200 GJ 2,803 GJ 1,750 GJ

Netherlands 1,367 GJ 1,367 GJ 1,676 GJ 1,892 GJ 1,797 GJ

Total 95,374 GJ 81,694 GJ 88,220 GJ 87,497 GJ 75,750 GJ

Heating oil

Year 2010 2011 2012 2013 2014

Total 3,333 GJ 3,135 GJ 2,434 GJ 2,199 GJ 1,234 GJ

The Hansgrohe Group has had photovoltaic systems with a capacity of almost 200 kW in operation at the Ofenburg site since the beginning of the 1990s and since 2012 in Schiltach. The energy generated here is used by the company itself.

Photovoltaic systems – energy production

Year 2010 2011 2012 2013 2014

Ofenburg 412 GJ 422 GJ 486 GJ 441 GJ 409 GJ

Schiltach 117 GJ 129 GJ 135 GJ

Total 412 GJ 422 GJ 603 GJ 571 GJ 543 GJ

EN 4 Indirect energy consumption

In 2014, electricity consumption made up the greatest proportion of energy consumption within the Hansgrohe Group. The electricity consumption at the Hansgrohe Group is heavily dependent on the capacity utilisation and sales quantity. The electricity consumption increased during the reporting period, particularly as a result of the construction of the Group’s own production department. In the consumption of 2010 to 2014, the cost transfer of electricity consumptions to third parties must be taken into consideration.

Electricity

Year 2010 2011 2012 2013 2014

Germany 120,446 GJ 126,705 GJ 129,182 GJ 122,882 GJ 125,417 GJ

China 36,184 GJ 39,110 GJ 41,145 GJ 47,101 GJ 54,978 GJ

USA 14,398 GJ 15,599 GJ 15,297 GJ 14,778 GJ 14,033 GJ

France 2,365 GJ 2,691 GJ 3,334 GJ 3,227 GJ 2,979 GJ

Netherlands 1,252 GJ 1,213 GJ 1,092 GJ 1,115 GJ 1,053 GJ

Total 174,645 GJ 185,317 GJ 190,051 GJ 189,102 GJ 198,461 GJ

EN 5 Energy savings

Hansgrohe focuses its energy management measures on three columns: Saving energy, increasing energy eiciency and using regenerative energies. The Plus21 Database has been used at Hansgrohe to improve eiciency since 2001. This database was expanded in such a way in 2010 that energy savings can be proven.

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In 2014, the integrated management system at the German production sites of the company was supplemented by an energy management system. This fulils the requirements of DIN EN ISO 50001:2011 and is based on comprehensive energy data acquisition. Through this, internal energy lows will be transparent and improvements in energy use and consumption will be determined.

Focal areas were identiied to efectively increase the energy eiciency in production and administration. These have been sensitised speciically in their handling of energy. In a second step, energy projects are being developed here.

In 2013, the Hansgrohe Group saved approx. 3,380 GJ of electrical energy. These savings were mainly achieved through measures in lighting (replacement of bulbs), a new compressed air concept and measures in energy management (automatic deactivation of consumers). 294 GJ were saved in thermal terms in 2013.

In 2014, the saving was approx. 2,294 GJ of electrical energy.

These optimisations come mainly from the renovation of the air conditioning, energy measures and the optimisation of the ventilation systems. Approx. 76 GJ were saved in smaller thermal projects in 2014.

EN 6 Energy-eicient products and services

Climate protection now plays an important role in most markets. For many years, the Hansgrohe Group has provided a multitude of products with water-saving and energy-saving functions.

These can reduce energy consumption and CO2 emissions in two ways: Due to the lower hot water requirement, less energy is needed for show-ering and hand-washing. The energy requirement for the preparation, transportation and distribution of drinking water is also reduced. This scope of inluence concerns all brands: Hansgrohe, Axor and Pharo ofer water-saving ittings and shower heads, while Pontos provides water recycling systems. As the life span of all products is very long, the CO2 savings mount up considerably.

A sophisticated low limiter, special jet nozzles and the admixture of air – in short: the Hansgrohe EcoSmart technology – ensures that water consumption when showering can be limited to up to six litres/minute, while the high level of comfort remains the same. As a result of the up to 60 percent lower consumption in comparison to conventional shower heads, the main saving is hot water along with energy – a daily contribution to the reduction of CO2. Since 2010, the washbasin ittings have be limited to a low of about ive litres per minute as standard using a newly devel-oped aerator on the outlet – this is about 30 percent less than previously. During the reporting period, Hansgrohe has further expanded its range of water-saving and energy-saving EcoSmart products. For example, the new Logis ittings range has been equipped with EcoSmart technology. Since recently, the Croma Select hand showers and rainhead showers have also been available as EcoSmart models.

The company explains the connection between saving water and climate protection for its customers in a number of marketing tools, giving itters the clear arguments in favour of using more eicient bathroom products. The Hansgrohe CoolStart technology, which has been available for the majority of ittings ranges since 2012, shows how resources can be preserved with simple, but impressive ideas. With conventional washbasin ittings, mixed water is automatically drawn from the middle position of the itting. With CoolStart, only cold water is available from the neutral, middle position. As a result, the pipe system is not longer unnecessarily illed with hot water and boilers and circulating pumps do not have to start up especially. In this way and through the lower hot water consumption, the energy demand and CO2 emissions are reduced. In a four-person household, about 163 kilograms of CO2 can be saved each year; the annual energy costs could be reduced by up to 64 Euro (based on an estimated 20 tapping processes per person / day each of 20 seconds and two ittings in the four-person household, average values from ive diferent types of heat).

Thanks to its special construction, the washbasin mixer of the new Axor Starck Organic bathroom collection can be moulded with about a third less brass – and consequently far lower energy consumption – than a conventionally produced model. Decoupled water circuits inside the itting prevent direct contact between the water and the body of the itting. Sustainable, responsible handling of water and energy make the eicient shower-like jet with its low water low of just 3.5 litres/minute and separate control of water and temperature possible.

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water and energy consumption. For the hotel industry, Hansgrohe ofers an “EcoSmart Check Package” at http://pro.hansgrohe-int.com/eco-smart-check , which helps to determine the individual water consumption and possible savings. An online savings calculator shows the possible savings for all consumers: http://www.hansgrohe-int.com/savings-calculator

EN 7 Initiatives to reduce indirect energy consumption

As well as the measures explained in EN 5 to increase eiciency, the Hansgrohe Group is also interested in keeping the overall energy use for the produced products as lows as possible from the very beginning. The new Axor Starck Organic mixer is an example of this. The hollow structure of the body can save about thirty percent of the materials used, thus improving the energy balance in the production process.

The Hansgrohe travel policy instructs its workforce to use public transport if this is economically possible. Otherwise, company vehicles can be used. Due to the relevant IT solutions, Hansgrohe employees have the opportunity of exchanging information with international colleagues and external persons via web conferences to reduce any unnecessary travel expenditure.

Another initiative to reduce the indirect energy consumption is the free issue of the Jobticket to use public transport, which was mentioned in EC 3 and EN29.

Further savings from the logistics and supply chain sector can be found in Indicator EN 29.

EN 8 Total water consumption, classiied by source

The Hansgrohe Group mainly uses water from the public network. In addition, very small quantities of well water are used, which are negligible due to the proportions.

Almost 70 percent of the water used at the German sites is needed for the research & development laboratory and galvanisation process. The re-maining 30 percent is used in other production processes, for cooling or for presentation purposes in the “ShowerWorld”.

Water

Year 2010 2011 2012 2013 2014

Germany 124,782 m³ 116,723 m³ 115,339 m³ 108,997 m³ 117,190 m³

China 56,698 m³ 48,855 m³ 41,618 m³ 48,904 m³ 53,088 m³

USA 5,833 m³ 8,394 m³ 7,326 m³ 5,777 m³ 6,365 m³

France 662 m³ 378 m³ 1,032 m³ 834 m³ 402 m³

Netherlands 588 m³ 588 m³ 392 m³ 814 m³ 677 m³

Total 188,563 m³ 174,938 m³ 165,707 m³ 165,326 m³ 177,722 m³

As well as the test facilities (Hansgrohe laboratory), galvanisation processes are especially intensive in terms of use.

Water consumption relating to the tonnage of produced product fell by 21 percent in 2014 in comparison to the reference year of 2010.

EN 9 Water sources afected by withdrawal of water

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EN 10 Recycled and reused water

As previously mentioned in EN 8, two technology processes create the majority of water consumption within the Hansgrohe Group. Within the last few years, many investments have been made, especially in the ield of surface technology, in order to constantly minimise the water requirements. Among other things, various ilter techniques and an ion exchanger system are in use to extend the service life of the baths used in the galvanisation surface coating procedure. The longer the life of the baths, the lower the fresh water demand and, as such, the water demand per produced subas-sembly.

Multi-stage basins for the galvanisation surface coating system reduce water consumption considerably when rinsing semi-inished products. At the moment, it is not possible to quantify the savings generated by these measures, as there are no measuring devices attached to the systems. For 2015, the Hansgrohe Group has closed the water cycle in the research and development laboratory through a new energy concept, meaning a signiicant saving is anticipated in 2015

EN 11 Use of space in conservation areas

The industrial area in Ofenburg–Elgersweier is located within a Level 3b water protection area. The Hansgrohe Group’s Ofenburg production site is located within this protection area. There is no reason to believe that the activities of Hansgrohe endanger this area.

EN 12 Impacts on biodiversity in protected areas

The production, products and services of the Hansgrohe Group are harmless for protection areas or areas with a high degree of biodiversity. As a result, the Hansgrohe Group does not consider this indicator to be signiicant.

EN 13 Protected or restored natural habitats

The production, products and services of the Hansgrohe Group are harmless for protection areas or areas with a high degree of biodiversity. As a result, the Hansgrohe Group does not consider this indicator to be signiicant.

EN 14 Strategies and management of efects on biodiversity

The production, products and services of the Hansgrohe Group are harmless for protection areas or areas with a high degree of biodiversity. As a result, the Hansgrohe Group does not consider this indicator to be signiicant.

EN 15 Endangered species with habitats in areas afected by operations

The production, products and services of the Hansgrohe Group are harmless for protection areas or areas with a high degree of biodiversity. Species on the IUCN Red List are not at risk. As a result, the Hansgrohe Group does not consider this indicator to be signiicant.

EN 16 Direct and indirect greenhouse gas emissions

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Ger-many, the proportion of lignite and hard coal ired power stations used to produce electricity has increased, which has led to higher carbon dioxide emissions. The emissions due to heating oil are taken into consideration in the direct CO2 emissions for the period of 2010 to 2014.

Direct CO2 emissions

Year 2010 2011 2012 2013 2014

Germany 4,943 t 4,493 t 4,578 t 4,441 t 3,652 t

China 43 t 28 t 70 t 55 t 62 t

USA 549 t 217 t 295 t 389 t 471 t

France 104 t 111 t 180 t 157 t 98 t

Netherlands 77 t 77 t 94 t 106 t 101 t

Total 5,716 t 4,927 t 5,216 t 5,148 t 4,384 t

Indirect CO2 emissions from electricity purchase

Year 2010 2011 2012 2013 2014

Germany 8,457 t 11,132 t 17,437 t 14,600 t 15,944 t

China 7,920 t 8,561 t 9,006 t 10,310 t 12,034 t

USA 2,703 t 2,929 t 2,872 t 2,775 t 2,635 t

France 60 t 68 t 84 t 81 t 75 t

Netherlands 134 t 130 t 117 t 120 t 113 t

Total 19,275 t 22,820 t 29,517 t 27,886 t 30,801 t

EN 17 Other relevant greenhouse gas emissions

No other relevant greenhouse gases are emitted within the Hansgrohe Group. There is currently no quantitative evaluation about the relevant green-house gases along the entire delivery chain.

EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved

See Indicator EN 5.

EN 19 Emissions of ozone-depleting substances

No other ozone-depleting substances are emitted within the production process of the Hansgrohe Group. Ozone-depleting substances are not emitted within the usage phase of the products. There is also no quantitative evaluation along the entire delivery chain.

EN 20 NOx, SOx and other signiicant air emissions

Nitrogen oxide is emitted during the galvanisation surface coating procedure. The emitted nitrogen oxides are cleaned using exhaust fans. Regular checks of the system and measurements of waste air take place. These fall considerably below the legally deined thresholds.

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