To our stakeholders:

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

Sincerely yours,

Karin LiljegrenSustainability Manager

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

In order to ensure the long-term focus on work, we have also set up a sustainability policy and sustainability goals from 2018, linked to our essential sustainability aspects and in line with the UN new sustainability goals.
Our quality management system regulates how we measure, follow up and act on these.

Goal: to have minimum 2 education sessions/year on our work ethics.

Implementation

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

Measurement of outcomes

2017: 100% fulfilled. During 2017 we had two training sessions in our work ethics.
2018: 100 % fulfilled. This year we had two internal training sessions.
2019: 100% fulfilled. We had two sessions also this year.

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

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

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

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

Outcome: We are currently below 50/50 women and men.
We have a very good range of nationalities and different ages.
2019: We continue working on a daily basis towards employing more women in any given situation, for a healthier gender-mix.

Principle 7:

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

Principle 8:

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

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

Principle 9:

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

Principle 7:

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

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

Principle 8:

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

Principle 9:

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

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

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

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

Principle 7:Assessment is made by external site inspection from the local Environmental authority body every year. Any deviations or obvious risks must be eliminated/handled on proposal from the inspection.
2018: We have managed to substitute a toxic chemical from production with an environmentally friendly bio-degradable substance.
2019: We have implemented a new digital tool for better overview and for easier chemical handling, cDoc.

principle 8: 2018: This year we have been certified according to the energy standard ISO 50 001.
2019: We continued working towards reducing our energy consumption as possible. An internal target from 2016 was to reduce our electricity by 15%, which was surpassed in 2019 – by the end of the year we had reduced our electricity consumption by 19%.

principle 9:

We have sucessfully during 2017 sold and tested the vacuum panels mentioned above.
2018: We have put more focus in this area by setting tagets for sales of thicker insulation products and and vacuum panel products.
2019: We continued to sell highly insulated products. Taget at 25% was surpassed, result: 37%.

Powerpipe Systems AB has since the beginning, over 36 years, always been pervaded by doing business in a correct and legal manner. In the late nineties, companies themselves were exposed to cartel formation from other industry actors, where the company gained a clear insight into what could happen if actors act illegally.

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

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

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

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

2018: We had official training in anti-corruption this year, and also have a person appointed for anti-corruption reporting, in case of any incidents.
2019: Refreshment of anti-corruption course was made, digitally.