To our stakeholders:

I am pleased to confirm that Gaia Solar A/S 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,

Peter Terman Petersen
CEO 

Respecting the human rights principles is naturally incorporated into everything we do at Gaia Solar A/S. We have a long-standing tradition of treating people with respect and in observance of the human rights.

We take responsibility for our employees, the environment and the community we are a part of. We have high internal requirements to secure a safe and respectful work environment for our employees.

We use the framework of the UN Global Compact as a road map in our daily decision making.

In 2014 Gaia Solar A/S established a subsidiary (GS Middle East) in Dubai, UAE, a region generally accused to have issues with CSR. Gaia Solar A/S will from time to time cooperate with GS Middle East, and we will be extra careful not to violate our CSR-profile.

Policies
Our HR policy stresses that “we do not discriminate on the basis of gender, sexual orientation or religion” and “We do not use forced or child labor”.

The company's employee handbook clearly describes the company's values and employees' rights. The handbook describes, among other things, the right to vacation, child´s first day of sickness etc..

The handbook and policies is evaluated ones every year. It is handed out to all new employees and can be found on our internal IT platform and external website.

Work Environment Organization
We ensure our employees' right to health and safety through the company's Work Environment Organization that annually conducts a legally based APV (Workplace assessment) and by offering health insurance to all.

Whistle-blower scheme
We have established a whistle blower scheme in form of a mailbox. There have been no submissions in 2014.

We educate all employees to make sure that they understand Human Rights and know our policies.
At the first staff meeting in 2014, all employees were informed of our CSR policy and the objectives of the UN Global Compact. In addition, our policies are described in the company's employee handbook. All employees have gained a basic understanding of the principles in our CSR policy. We will continue the education in 2015.

Statistics on the distribution of age, sex, nationality
We annually conduct an analysis of the age, gender and nationality distribution of the staff and the management team to ensure equal and fair treatment of all. In January 2015 Gaia Solar employed 18 people. These were distributed as follows:
Age Sex Nationality
All employees 7 (30)/8(40)/ 3(50) 3 F/15 M 1 PL/17 DK
Management 1 (30)/2(40) /2(50) 1 F/4 M 5 DK

The above table shows that the composition of the management team reflects the general composition of all employees, and there is no reason to believe that discrimination takes place. The number of women in the organization is slightly low, but reflects the general gender distribution in the industry.

Supplier evaluation
We screen all suppliers based on the information they provide, as well as through a quality / CSR questionnaire, which is sent out annually to all primary suppliers.

We have identified and listed 24 suppliers of components in our products. They are screened based on the information they make available in their communication. In addition, we have sent out a questionnaire about their CSR and quality policy. Regrettably we only received five answers. Based on some of the responses, it is our feeling that there may have been some linguistic challenges for the respondents. In addition, Gaia Solar's is a relatively small company with low buying power, and that can be the reason for the low response rate. Of the five suppliers who have answered the questionnaire, all confirmed that they comply with the principles of the UN Global Compact. There is a need to adapt the questionnaire and to consider visiting some of the main suppliers. In the coming year we plan to reduce the number of suppliers and further enhance the management of these.

Acceptance testing
All products are checked on receipt, and the origin and the quality is verified. This prevents the use of unapproved products. We will continue this procedure in 2015.
In the year to come we will:
• Continue training the staff to ensure that everyone has an understanding of human rights and thus can avoid violating these.
• Continue to screen our suppliers and further develop our supplier questionnaire.
• When cooperating with Gaia Solar A/S´s subsidiary in Dubai 2014, we will be aware of our partners CSR-profile. All partners will be screened before entering into cooperation.

• We will measure our progress in the annual APV (Workplace assessment) that will later be evaluated by the management group.
• Any information given through the whistle blower will be logged, investigated and evaluated by the top management.
• The results of the survey of age, gender and nationality will be submitted to the management for evaluation.

Our primary region of operation, Denmark, has a long tradition for respecting the freedom of association.

Gaia Solar A/S adheres to local laws on labour rights. All employees are free to join trade unions of their own choice, and we respect the right to collective bargaining.

We take responsibility for our employees by creating a healthy work environment both physically, psychologically and ethically.
In 2014 Gaia Solar A/S established a subsidiary (GS Middle East) in Dubai, UAE, a region generally accused to have issues with CSR. Gaia Solar A/S will from time to time cooperate with GS Middle East, and we will be extra careful not to violate our CSR-profile.

Policies
We offer flexible working hours in respect of work/life balance as well as the possibility to work from home.

Employee Development Interviews
We conduct annual Employee Development Interviews (MUS) for all employees. The primary objective of the MUS is to ensure regular, systematic and strategically anchored competency development. In addition to ensuring that employees’ competencies are constantly up to date and in line with the company’s needs, another key objective of the MUS is to contribute – through dialogue – to our employees’ increased
well-being, job satisfaction and motivation.

Supplier evaluation
We have mapped our suppliers in relation to their compliance with GC 10 principles. See under Human Rights.

Health insurance
Our employees are covered by health insurance.

Work Environment Organization
We have a Work Environment Organization, that monitors and work to prevent accidents at work, stress, sickness and bullying among colleagues. We conduct an annual Work Place Assessment (APV) that measures the work environment, job satisfaction, motivation and stress among our employees.

During 2014, the production site has been optimized and roller conveyor has been installed as well as a module lifter to prevent heavy lifting for production employees.

Lunch
During 2014, we have established a lunch program for all employees to ensure a healthy diet during the workday.

Cooperation with our local municipality
We have met with the mayor and the chairman of the Business Council to express our intentions of cooperation. We have had visits from several school classes in the municipality with the purpose of teaching them about renewable energy and general business processes. Gaia Solar took on a temp from the local jobcentre through a “job rotation scheme”. The scheme aims to help unemployed regain a job by providing the person with job experience. As described in the COP from 2014 we intended to take on a trainee from local schools during 2014 but we didn’t receive any applications this year. We will optimize our communication in 2015 in order for this to be realized.
In the year to come we will:
• Educate all employees to make sure that they understand Labour Rights and know our policies.
• Increase the security level for all employees by constructing an Emergency procedure. The procedure will secure that all employees know what to do and who to contact if an accident should occur.
• We will focus on communication to employees, to insure that all employees understand their value to the company and how they affect the overall results. This will be done as part of the implementation of the strategy for 2015-2018.
• We will continue to cooperate with the local municipality and take trainees.

• Employer satisfaction will be measured in the annual APV (Workplace assessment) that will later be evaluated by the management group.
• All suppliers will be evaluated based on their compliance with GC 10 principles. The result is mapped in our CRM-system.
• The Crises Management plan should be completed in the first quarter of 2015.
• We will have received at least one trainee from the local schools.

As a manufacturer of sustainable energy solutions, a healthy and sustainable environment is of great importance for us.

We constantly work to map and improve the company’s and our products environmental impact.

Environmental certification
We have an environmental policy and are certified in accordance with ISO 14001.

We map our environmental impact on a yearly basis.
Reduced number of prints
As described in the COP for 2014 we intended to reduce the number of prints per employee by 3 % during 2014. In order to meet the goal the default print settings for all employees has been changed so that all documents is printed in duplex and b/w. At the same time, the company's e-mail signatures were compressed, thereby minimizing paper consumption when printing emails. However, we did not succeeded in reducing the number of prints per employee. This is primarily due to a number of changes in the way we conduct our business:
• New procedures in Accounting requires multiple copies
• Larger projects increase the demands for documentation, which consequently increases our paper consumption.
• Increased activity in the R/D department leads to more prints.
It is not considered to be realistic to further reduce the number of prints per employee at this time.

Reduced electricity consumption
We intended to reduce the total use of electricity by 5 % in 2014. In order to meet the goal we have installed automatic on/off switches in toilets and all light bulbs has replaced with energy saving light bulbs. A number of external factors had an impact on our electricity consumption. The size of the company's storage capacity and administrative buildings has been reduced, which means that the company's total electricity consumption is also greatly reduced and the target is met.
The environmental effect of Solar cells
During 2014 we commissioned a Life Cycle Analyses documenting the environmental effects of Gaia Solar-modules manufactured in Denmark. The results of the analysis have demonstrated an energy payback time of 2.5 years. One of the key elements to reduce the environmental impact for modules is a return scheme. Gaia Solar uses the return scheme PVCYCLE.
The LCA will be updated regularly and in addition, we have begun a theoretical mapping of the main issues about the production of silicon cells.
Mapping the environmental impact of new products
We intended to develop a process for mapping the environmental impact of new products from our R&D department. This work was initiated by the Life Cycle Analyses for our solar solutions. The analysis document that the mounting system in a solar solution is responsible for a large environmental impact in relation to the total solar PV, due to the large amount of aluminium used. We focus on integrating PV in other building components as well as in urban furniture. Both will increase the penetration of solar energy without using mounting system. By developing integrated solutions, we reduce the CO2 footprint of renewable energy. Our work will continue in 2015.

Optimization of indoor climate
During 2014, one of the windows in the administration has been replaced in order to improve the indoor environment and reduce heat consumption. We will continue the dialogue with the property-owner in order to make sure that the rest of the windows are replaced during 2015.

Shared cars
We have previously had a number of shared cars for the employees to use when attending meetings. The number of cars has been reduced during 2014, leaving one cars for the technical staff. It is the management's view that it is safer for employees to drive their own cars.

Renewable energy
We have installed a solar energy system on top of our headquarters, which supply us with renewable energy.

Waste Management
We are a member of the organization PV CYCLE, which handles the collection and recycling of our used solar panels.
In the year to come we will
• Continue to reduce the environmental impact of our solution by mapping the impact.
• Map all suppliers in relation to their compliance with GC 10 principles.
• We will continue to provide information about how to use the printer options and encouragement only to print needed material. But no specific goal will be defined.
• Optimize the indoor climate by replacing all the windows in the administration.
• Develop new integrated products that minimize the use of mounting systems.
• Ensure and document recycling of waste modules.

• Updating our LCA for self-produced panels.
• Launch of min. 1 integration product
• Replacement of all windows in the administration.
• Documentation of the degree of recycling of waste modules.

Gaia Solar has a non-tolerance policy for corruption. We do not accept that our employees offer, demand or receive money, presents or other services in order to achieve personal or commercial preferential treatment.

We operate within the 10 principles of the Global Compact and expect our business partners to do the same.

Policy
Our Employee handbook clearly states that we do not tolerate that our employees engage in undeclared work and lists our policy on giving and receiving gifts.

Whistle-blower scheme
We have a whistle-blower scheme in the form of a mailbox. There have been no submissions in 2014.

We educate all employees to make sure that they understand our policies.
At the first staff meeting in 2014, all employees were informed of our CSR policy and the objectives of the UN Global Compact. In addition, our policies are described in the company's employee handbook. All employees have gained a basic understanding of the principles in our CSR policy. We will continue the education in 2015.

Supplier evaluation
We have mapped and evaluated all suppliers in relation to their compliance with GC 10 principles.
See under Human Rights.
In the year to come we will:
• Continue training the staff to ensure that everyone has an understanding of Anti-corruption and thus can avoid this.
• Continue to screen our suppliers and further develop our supplier questionnaire.
• When cooperating with Gaia Solar A/S´s subsidiary in Dubai 2014, we will be aware of our partners CSR-profile. All partners will be screened before entering into cooperation.

• Any information given through the whistle-blower will be logged, investigated and evaluated by the top management.