5. Responsibility

Accountability within the company’s management with regard to sustainability is disclosed.

The Directorate is responsible for this issue.
In September 2012 Fraunhofer UMSICHT appointed a Sustainability Officer, who coordinates all arrangements and reports the state of affairs, proceedings in the reporting as well as improvements in the implementation of sustainability to the Directorate.

6. Rules and Processes

The company discloses how the sustainability strategy is implemented in the operational business by way of rules and processes.

For internal management the Sustainability Balanced Scorecard (SBSC) is applied. The targets of the institute are set by the Directorate; the targets of the business units are agreed upon between the Directorate and the heads of the business units.

7. Control

The company states how and what performance indicators related to sustainability are used in its regular internal planning and control processes. It discloses how suitable processes ensure reliability, comparability and consistency of the data used for internal management and external communication.

The analysis of our main activities and the affiliated opportunities and risks with regard to sustainability is carried out by means of the Sustainability Balanced Scorecard (SBSC). Here, aspects of sustainability are integrated into the four perspectives: Economics and Finances, Employees and Expertise, Market and Society, Ecology and Processes. This guarantees that sustainability aspects are taken into account in all operational activities, whether they are directed inwards or outwards.

Key Performance Indicators to criteria 5 to 7

Key Performance Indicator GRI 4,8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

The Directorate checks the performance of all operative business units with the help of the key indicators of the SBSC.

Key Performance Indicator GRI 4,9
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

The Directorate checks the performance of all operative business units with the help of the key indicators of the SBSC.

8. Incentive Systems

The company discloses how target agreements and remuneration schemes for executives and employees are also geared towards the achievement of sustainability goals and how they are aligned with long-term value creation. It discloses the extent to which the achievement of these goals forms part of the evaluation of the top managerial level (board/managing directors) conducted by the monitoring body (supervisory board/advisory board).

The SBSC sets the individual sustainability targets for Fraunhofer UMSICHT’s business units. It is used as a means of assessment in the appraisal interviews with the heads of the business units.
In comparison to the industry Fraunhofer UMSICHT has only limited influence on the salary, because of existing collective agreements for the civil service.
A variable performance-based remuneration is a component of the salary.

Key Performance Indicators to criteria 8

Key Performance Indicator GRI 4,5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

No system has been established yet.

Key Performance Indicator GRI 4,10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

The Directorate is evaluated by scientific and economic output figures.

9. Stakeholder Engagement

The company discloses how the socially and economically relevant stakeholders are identified and integrated into the sustainability process. It states whether and how an ongoing dialogue takes place with them and how the results are integrated into the sustainability process.

Currently staff members are involved as stakeholders (e.g. via employee survey). In 2012 our Board of Trustees (strategic advisory board) was involved more intensively and the stakeholder management was addressed systematically.
The development of the institute’s key research topics is being advanced together with relevant internal and external stakeholders. Within the institute a dialogue with the sustainability working group takes place and within Fraunhofer there is a dialogue among the Fraunhofer Network Sustainability which was established by several Fraunhofer institutes.

Key Performance Indicators to criteria 9

Key Performance Indicator GRI 4,16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

In meetings staff members are involved in the reporting. The voluntary sustainability working group gathers monthly. The staff survey in 2011 provided further input.

Key Performance Indicator GRI 4,17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Questions concerning the institutional implementation. Question as to how social and/or ecological aspects can be treated as being at least of an equal importance as the ecologic aspects in the day-to-day R&D business.
Reaction: appointment of a sustainability officer.

10. Innovation and Product Management

The company discloses how innovations in products and services are enhanced through suitable processes which improve sustainability with respect to the company’s utilisation of resources and with regard to users. Likewise, a further statement is made with regard to if and how the current and future impact of the key products and services in the value chain and in the product life cycle are assessed.

One of the essential objectives of Fraunhofer UMSICHT is to further develop methods for an anticipative technology assessment accompanying innovation and to increasingly use it in its own R&D projects in the future.
From our point of view, it is insufficient for this to anchor the technology assessment institutionally and centrally. Instead, the technology assessment accompanying innovation must be part of each and every responsible scientist‘s canon of methods.
In the early stages of brainstorming, the focus is primarily on identifying and including as boundary conditions the numerous requirements that result from the objective of a sustainable development. We perceive participation, interdisciplinarity and transdisciplinarity as important "enablers" that we want to strengthen in our projects in the future.

Key Performance Indicators to criteria 10

Key Performance Indicator GRI EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

The core business of Fraunhofer UMSICHT is the provision of services in the fields of energy efficiency, resources savings as well as in the fields of renewable energies and renewable resources.

Key Performance Indicator GRI EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Research and development is therefore generating option values for the future conduct of business which may be tied to great opportunities but also to risks. Therefore, these option values have to be taken into consideration in an expanded understanding of product responsibility.
Depending on the customers’ wishes or the specifications of a tender various instruments for assessment and improvement such as LCA, LCC or SLCA are used in different developments. From this measures are derived that our customers can implement.

Key Performance Indicator GRI FS11
Percentage of assets subject to positive and negative environmental or social screening.

The Fraunhofer-Gesellschaft itself does not invest in funds or the like for the occupational retirement provision. The occupational retirement provision is conducted by the VBL and the R&V (for non-pay scale employees). The VBL invests classically-conservatively to ensure the activated guarantees. Investments in real assets made by the Fraunhofer-Gesellschaft are focused on sustainable energy generation and direct commodity investments exclude staple foods.