Corporate Social Responsibility Report - 2016

a company

FIRST CARBON NEUTRAL

NETWORK INFRASTRUCTURE PROVIDER PRESENCE IN OVER 50 COUNTRIES

AN INTRODUC TION TO BRAND-REX

We make high-spec network infrastructure. Without it costing the earth. From small offices to enormous Data Centres, your choice of network infrastructure can make or break your communications systems and IT operations. It can be the difference between plain sailing and regular disruption.

In short: it’s important to get it right. And we help businesses do exactly that.

How? By researching, designing and crafting world-class cabling and network infrastructure products. Effortless networking has been our goal since Brand-Rex started life in 1972 as a small team in Glenrothes, Scotland. In 2015, Brand-Rex became a part of the Leviton Group, a privately owned US manufacturing company specialising in electrical wiring devices, energy management, security and automation, and data network solutions for industry and commerce.

Achievements ISO9001:2008 Quality ISO14001:2004 Environmental ISO50001:2011 Energy Management UK representative in EBAE awards (1 of 4 UK National Winners) - 2014 European Business Awards for the Environment (EBAE) Winner for Energy Management and Efficiency - 2013 VIBES Awards Finalist in the Manufacturer of the Year category at the 2013 Green IT Awards 2012 Green Apple Winner for environmental endeavour Finalist - 2012 Green Business Awards 2011 VIBES Awards winner Highly Commended in the Environmental Efficiency category at the 2011 EEF Future Manufacturing Environmental Efficiency Awards

C O M PA N Y H I S T O R Y

40 years of fresh ideas... For us innovation is more than a buzzword. It’s the reason we became the first ever networking company to achieve carbon neutral status.

Founded in the US

Innovation has driven us for more than 40 years.

Established European Operations serving BT WAN, Olivetti, ICL, DEC and Bull

1960

Cat6Plus Category 6 cable and connectivity

OM4 optical cables

£11.5m investment in manufacturing equipment

2004

2006

First electron beam plant in Europe. Exclusive manufacture of computer cable for IBM

1972

1980

£5m investment in manufacturing equipment

OM3 optical cables

2002

2001

10GPlus range launched

2009

2011

2012

Cat 6A Zone Cable MT Connect Pre-Term Fibre

First structured cable company to achieve carbon neutral status to PAS2060 standard

Carbon neutral cables

Leading role in the standardisation of data cabling designs

Acquired by BICC the leading cable manufacturer in the world Category 5 cable range

First optical fibre cable

1982

ISO 14001 Environmental accreditation

Introduced the Millennium programme – Industry first 25 year system warranty

2000

1993

1997

1995

Acquired by the Leviton Group

2014

New state of the art R&D facility

Prestigious channel tunnel rolling stock cabling

First range of connectivity components and LUL approval

Category 7 cable range

Winner of the Vision Business for the Environment in Scotland (VIBES) Award

10GPlus high density plug & play patch panels

1992

GigaPlus Category 5e OM2 optical cables

1998

Acquired by Novar plc

2013

1989

1986

2015

Launch: HI-DEX latest generation data centre solution

Launch: Shielded tool-free Cat 6A jack ISO 50001

2016

Launch: SmartPatch Intelligent Management System

A MESSAGE FROM OUR CEO

“For some businesses, CSR is a box-ticking exercise. At Brand-Rex it’s fundamental to our success as an industry leader.” Sustainability is embedded in our business strategy. Every area of Brand-Rex - manufacturing, transport and logistics, energy management, you name it - is regularly scrutinised and audited for environmental and operational efficiency.

I am extremely proud of all of our achievements to date, not least becoming the first structured cabling provider to reach carbon neutral status.

As we look to the future, we understand that our success and ability to continue to generate strong partnerships with our stakeholders depends not just on manufacturing excellence and unparalleled service, but the ability to turn corporate social stewardship into products that benefit the environment, our customers, our suppliers, our employees and the local communities in which we operate. Martin J Hanchard, CEO

OUR BUSINESS MODEL

We like the hands-on approach. That’s why we take care of so much in-house.

Innovation & voice of the customer

End customer

In-house R&D & product development

Sales & technical services

Premier Partner

Quality control

R&D

European Manufacturing

PEOPLE

Specialist Distributor

Production

Supply chain Supplier development

Logistics Quality control & testing

It starts with in-depth customer profiling. Then we move on to research and development before manufacturing. Once we have a product we are delighted with, we feed in to a network of specialist distributors and trusted installers.

C S R S T R AT E G Y

To make sure we hit our CSR targets,we have developed a blueprint for sustainable business improvement.

Our sustainable business improvement programme incorporates six key processes: • Carbon management • W  aste reduction and pollution prevention • Waste recycling • E nergy management and reduction

Governance and ethics Ethical policies - and how they permeate the business - are hugely important in defining any business. It’s no different with us. Sustainability Our green credentials matter to us. When it comes to sustainability, every single employee has a role to play.

• Use of raw materials • S ocial environment (safe working facilities, incident management and ill health prevention)

Improving these processes means being honest and critical about our performance. So we insist on annual audits conducted by our own qualified QHSE team as well as LRQA (Lloyds Register) and BSI (British Standards Institute). And, of course, we always focus on areas of the business where change can have the biggest impact.

Quality When you strive to create the best products in the most efficient way possible, there are often positive knock-on effects on sustainability. People We provide development opportunities. We reward achievement. And we regularly engage with our stakeholders. Health & Safety From the marketing office to the manufacturing plant, a safe working environment for all employees is a non-negotiable. Supply chain We form partnerships with businesses whose environmental and ethical standards sync with ours. Local communities It’s true. Building a better tomorrow begins today. We regularly donate to charities and actively participate in community projects. Customers As a member of the Institute of Customer Service our customers can expect an exceptional experience every time.

MEMBER

BECOMING CARBON NEUTRAL

How did we become carbon neutral? It’s official. In 2011 Brand-Rex became the world’s first network infrastructure provider to achieve carbon neutral status in accordance with PAS2060. It required the following steps: 1. G  enerate a company carbon footprint to set our baseline

2. Declare our reduction commitment: reduce CO2e emissions by 20% by 2015

20% CO2e EMISSIONS REDUCTION BY

2015

3. I mplement a strategy to reach our carbon reduction target

4. B alance any remaining carbon emissions through offsetting

5. Make a declaration of achievement Unsurprisingly for a manufacturing company, electricity use accounted for the majority of our emissions. Heating fuel and product logistics also contributed significantly. Together these three areas made up 90% of our emissions, giving us a clear point of focus. In order to give us a relatable year-on-year figure to work against, our carbon footprint was divided by the number of cable metres produced in a year.

We are proud to have achieved 24% in 2014

1

st

Network infrastructure provider to achieve carbon neutral status

Why does sustainability matter? The current population of our planet is just over 7 billion. By 2030 it is expected to reach 9 billion. This puts a huge strain on the worlds finite resources and the need for clean, renewable energies. Carbon emissions must be controlled to mitigate climate change.

7%

business travel and accommodation

19%

product and parcel deliveries

2% recycle and

waste management

59%

electricity

13%

fuels and refridgerants

2009 - Carbon footprint - 9590kg CO2e - Baseline emissions per area

G O O D F O R T H E E N V I R O N M E N T, G O O D F O R T H E B O T T O M L I N E

Sustainability doesn’t mean living with less. It means being smart and resourceful with what you have. To help us reach our emissions target and reduce our impact on the environment, we implemented a carbon reduction programme.

Light panel replacement program in factory

More natural light, less electricity

Emissions reduction

21%

Let there be light Making use of the natural daylight reduced our dependence on electric lights. We also switched to LED bulbs, which use 10% of the energy that standard lights do.

Keeping out the chill Moving from oil to a gas heating system created a 21% emissions reduction. It also removed the need for oil transport and storage. The new system gives us greater control of temperature for a more comfortable working environment.

Moving from oil to a gas heating system Overall our combined fuel emissions have been reduced by 46% Reduction in water usage

89% More water is used making drinks than by manufacturing

Every drop matters Installing a closed loop water recycling system has achieved a massive 89% reduction in water usage.

What’s good for the environment is often good for your bottom line too. To date we have invested over £300k to reduce our emissions. But by slashing our overheads we have saved over £1 million. Here’s how we did it.

Logical logistics

Reduced Emissions by

18%

Switching from air freight to sea freight for some materials reduced logistics emissions by 18%. We also moved to a paperless invoicing and purchase order system, which reduced emissions associated with admin by 65%.

Switching from air to sea freight

Recycled

79

Reusing and recycling

%

79% of our total waste is recycled - rather than going to landfill - thanks to improved recycling facilities at all sites.

of waste

Reaching our target. With room to spare.

42% CO2e EMISSIONS REDUCTION BY

2020

Our target was to reduce our 2009 emissions total by 21% by 2015. We achieved it with one year to spare. Through continuing our low carbon journey, we are on course to meet the Scottish government’s emissions reduction target of 42% by 2020. Brand-Rex has also been awarded ISO 50001 certification for Energy Management, which requires a company to develop a management framework for efficient use of energy.

G O O D F O R T H E E N V I R O N M E N T, G O O D F O R T H E B O T T O M L I N E

Giving back through carbon offsetting. We have made great progress on emissions reduction. Yet we cannot eliminate emissions completely. Carbon offsetting allows us to balance our greenhouse gases whilst making financial contributions in emerging green technologies or geographical areas of interest to Brand-Rex. We have been working with Carbon Clear Carbon offsetting and reduction specialists, to deliver offset projects since 2009.

Lircay run-of-river hydropower project, Chile

Keban hydropower project, Turkey

Emission reductions: 50,000 t CO2e per year

Emission reductions: 25,000 t CO2e per year

Lircay uses the flow of water from the Maule Norte Bajo canal to power a 19 MW hydroelectricity plant, which sends power directly to the Chilean national grid. It’s a run-of-river project - no dams - protecting local biodiversity and preserving the natural flow and function of the river.

Not only does the Keban 5 MW hydropower plant reduce carbon emissions and fossil fuel dependence, it also improves the electricity supply in a region where power outages are notorious, supporting local enterprise and improving quality of life for local communities.

The project was developed in cooperation with regional farmers and stakeholders. Local communities benefit through a profit-sharing arrangement as well as 1,000km of channel irrigation systems. The project has also created long-term skilled jobs for local people.

The plant is based in Elazig, a region with the highest unemployment in Turkey. This project created new jobs and spurs the economic regeneration of the area. It also supports a sustainable trout fishery located on the banks of the reservoir, securing livelihoods and preserving a source of food and income for the local community.

WE ARE PROUD TO HAVE BEEN ABLE TO SUPPORT THE FOLLOWING PROJECTS: METHANE CAPTURE, VALPARAISO REGION, CHILE KEBAN HYDROPOWER PROJECT, ELZAIG PROVINCE, TURKEY BIOMASS COGENERATION, SAO PAOLO, BRAZIL ENERGY EFFICIENT RAILWAYS, INDIA GEOTHERMAL POWER IN JAVA, INDONESIA CERAMIC FACTORY FUEL SWITCH, BRAZIL

OUR PRODUCTS

OUR CUSTOMERS USE OUR FIBRE AND HIGH-FREQUENCY COPPER DATA CONNECTIVITY SYSTEMS AND CABLES IN SOME OF THE MOST ADVANCED AND DEMANDING APPLICATIONS IN THE WORLD.

Quality products that improve your carbon credentials. We make a range of carbon neutral products. (Again, we were the first in the industry to do so.) Now customers can take advantage of highperformance networking equipment, with the additional benefits to their own CSR. It’s all down to our design philosophy. Innovation, sustainability and endof-life planning is considered at every stage of the development process. And it doesn’t compromise quality. In fact our customers use our fibre and high-frequency copper data connectivity systems and cables in some of the most advanced and demanding applications in the world.

10GPlus Zone cable By revisiting the design we have improved the carbon footprint of our zone cable by 25%.

The slim diameter is particularly useful for Data Centres, improving airflow around cabling and racks for better cooling and reduced energy consumption.

Optical fibre cables We have designed a new generation of optical fibre cables that achieve a 21% carbon footprint reduction against the industry standard. By optimising strength to weight ratios and dimensions, our cables are leaner, greener and far more flexible.

Optimising reels After reducing cable reel diameters from 18” to 16”, we have doubled the number that can be transported on a shipping pallet. That means more products can be shipped per delivery, reducing journeys and the carbon emissions associated with them.

Product packaging Our cable boxes are now fully recyclable. To get there we started working with non-bleached cardboard and replaced a plastic inset with a recycled pulp alternative. The result is a 13% drop in packaging-associated emissions. We have also optimised packing density, removing ‘empty space’ to improve transport efficiency.

OUR PEOPLE

Diversity breeds creativity. Diverse teams create fertile ground for creativity. Check the studies. Solving difficult problems and innovating - really innovating - requires different perspectives, different ideas and different experiences.

As such we provide an equal, fair and supportive environment for all employees, regardless of gender, sexual orientation, marital or civil partner status, race, colour, nationality, ethnic or national origin, religion, pregnancy, maternity, disability or age. Exactly as it should be.

Crafting a career at Brand-Rex

We make sure staff feel loved

Everybody has their own style of learning. That’s why we provide a range of different learning environments when it comes to staff training - from online tutorials to external workshops.

Success at Brand-Rex is a team effort. It’s only right that our employees are properly rewarded. So not only do we offer fair pay, we run an annual performance scheme that recognises (and rewards) employee commitment and achievement.

We aim that all staff receive a minimum 1.2 hours of structured training per month. That equates to more than 4,700 individual training hours for our staff each year. Investing in the professional development of our employees is something we take seriously.

Office based employees meet with management once a year to review career development, performance goals and training opportunities. We want to help our staff build long and rewarding careers with Brand-Rex. And it’s working. We retain our talent. The average length of service at our Glenrothes plant is 11.1 years, while at Leigh the figure is 18.1 years.

Project 99 We are so confident in our service that we have set ourselves the challenge of achieving 99.9% on-time delivery. In essence it means we can only have one failure each week. To help us hit our target, a designated Project 99 team meets daily to study performance metrics and identify actions that could impact customer deliveries.

The employee satisfaction survey One of the best ways to find out how your employees are feeling is to ask them. Each year our staff anonymously complete a survey with questions on: • Workplace challenges • Problem-solving • Support and objectives • Diversity • E ngagement and communication

The survey gives staff an opportunity to share new ideas and the results help us grow as a business. Some of our 2015 employee results revealed the following: • O  ver 70% of staff agreed that communication between teams and management was effective • 8  4% of respondents feel a sense of pride in their role when company results exceed expectations

MORE THAN

4,700

INDIVIDUAL TRAINING HOURS FOR OUR STAFF EACH YEAR

• 7  2% believe Brand-Rex maintains high ethical standards

THE AVERAGE LENGTH OF SERVICE AT OUR GLENROTHES PLANT IS

11.1 YEARS

O U R S U P P LY C H A I N

Natural resources are finite. We must move to a circular economy, where end-of-life products can be reused, remanufactured or recycled back into the supply chain.

BUILDING A CIRCULAR ECONOMY

Linear v Circular Traditionally, economies have been linear. You use natural resources to make sellable goods that end up in landfill or - in the case of structured cabling - left within the cavities of a building. This is a problem. Natural resources are finite. We must move to a circular economy, where end-of-life products can be reused, remanufactured or recycled back into the supply chain. It means reassessing how we recycle global goods - and looking to the built environment for inspiration.

The mines of tomorrow are the buildings of today When your business makes cabling, you need a good supply of copper. In previous years, when copper ore contained up to 20% unrefined copper, mines would be a key source. Yet today copper ore contains just 1-2% copper. Mining is inefficient. An alternative is to recover copper from unused buildings.

A decommissioned Data Centre, for example, could yield 500kg of pure copper from 1 tonne of cables. Another example? To obtain the gold required for our connectors, an option would be to use traditional mining: dig 2 miles underground, process 1 tonne of earth and purify the raw materials. This would retrieve 5 grams of gold. An alternative? Recycle 1 tonne of discarded mobile phones and use separation techniques to obtain 190g of gold - as well as various other precious metals. It’s a no-brainer.

The circular economy in practice Essent is a leading producer of sustainable energy in the Netherlands. When they made the decision to consolidate Data Centre operations in Germany, they asked Brand-Rex for help with decommissioning two existing Data Centre facilities in Landgraaf and Tilburg. In total 8,385kg of cables, cords, servers, wall ducts and other materials were removed. 92% was recycled, with the remaining 8% burned for clean energy. This shows that the mines of tomorrow are the buildings of today.

It’s about more than procurement Yet beyond raw procurement, there are two important benefits to having a more nuanced relationship with our suppliers. As such we ask that our suppliers have a program that promotes compliance with environmental regulation and helps to minimise environmental impact. Sometimes we also request to view our suppliers’ greenhouse gas emissions as part of our carbon disclosure project.

SUPPOR T FOR LOC AL COMMUNITIES

Playing for Success Groningen

Muscles for Muscles

The success of our Data Centre decommission for Essent meant we could donate solar panels to FC Groningen’s stadium in support of a special afterschool football programme. Playing For Success Groningen is designed to boost motivation and academic achievement in children aged 9-14 through the beautiful game. The revenue generated from our solar panels will be donated to the foundation for the next 25 years.

Over 20,000 children in the Netherlands live with muscular dystrophy – a condition marked by progressive weakening of the muscles. There is currently no cure, which makes fundraising efforts crucial in raising awareness and financing research. Recently our Netherlands office entered the “Muscle Athlon”, where they competed in sporting activities with a sponsored child in the passenger seat. Activities included a 500m swim/ boat pull, a 5km wheelchair run and a 20km bike ride. The event raised over €170,000.

Inspiration through education Each year we provide support and mentoring to a local school in support of Scotland’s regional Go4SET challenge. The challenge links pupils with employers and universities during a 10 week science, technology, engineering and maths (STEM) project - boosting student engagement with core disciplines. In 2015 we mentored students from Kirkcaldy High School as they planned, constructed and presented an eco-hotel model to a group of assessors - and scooped themselves the Student Choice Award.

Food for thought... Glenrothes YMCA is a local charity that provides supported accommodation for homeless people. They are a vital lifeline for those enduring hardship, providing advice, counselling, health checks and food parcels. Employees at Brand-Rex collected and donated several hundreds of pounds worth of food, clothing and toiletries for the charity’s community food bank.

THE REVENUE GENERATED FROM OUR SOLAR PANELS WILL BE DONATED TO FC GRONINGEN’S STADIUM FOR THE NEXT 25 YEARS.

We are a global business. But we never forget the local communities we work in. Creating links with local schools, education programmes and charities is part of who we are. Here are just a few projects we have been part of.

M O V I N G F O R WA R D

In order to continue as a leader in corporate social responsibility, we have continued to develop our award winning sustainability strategy. 20 steps that highlight key areas to tackle in order to achieve sustainability excellence by 2018. 1. Reduce Carbon Footprint Scope 1 Emissions (Gas) 2. Reduce Carbon Footprint Scope 2 Emissions (Electricity) 3. Research/Implementation of suitable Renewable Energy Source 4. Use of recycled/sustainable materials as raw material source 5. Packaging Initiatives - Reduce, Reuse & Recycle 6. Zero Waste to Landfill target 7. Continued compliance with Environmental legislation 8. I ncrease Tender Support Documentation 9. Meet our customer’s sustainability goals 10. Promotion in key vertical market where sustainability benefits can differentiate Data Centres, Government, Itilitoes, Healthcare, Retail...

11. Technical Competency

12. Product Carbon Footprint as part of quotation process 13. Show Leadership in Sustainable Practices 14. Carbon Neutral Company / Products 15. Support local Community Environmental Projects 16. Clarify Roles and Responsibilities expected for sustainability culture 17. Low Carbon Car Fleet 18. Drive Green Values into our Supply Chain 19. Logistics of Transportation Reduction of Air freight

20. Fuel Efficient Logistics

We hope that by sharing our experiences and sustainable strategies, it might just rub off and inspire more people and companies to make similar journeys. Together we can understand our environmental and social responsibilities and tackle the challenges that we face in the future together.

Brand-Rex is a leading technology company who design, develop and manufacture innovative fibre and high-end copper connectivity solutions for the network infrastructure cabling market and high performance cables for extreme environment applications.

operating territories

brand-rex head office viewfield industrial estate glenrothes, fife KY6 2RS united kingdom tel: +44 (0) 1592 772124 fax: +44 (0) 1592 775314 brand-rex asia pacific 17/F prosperity centre 77-81 container port road kwai chung hong kong tel: fax:

+852 (0) 3620 2602 +852 (0) 3621 0018 brand-rex central and eastern europe

tel: +420 (0) 222 363 657 brand-rex france 120, rue jean jaurès 92 300 levallois perret france tel: +33 (0) 1 70 98 78 25 fax: +33 (0) 1 70 98 78 36

brand-rex germany storkower str.115 10407 berlin germany tel: +49 (0) 30-290278-399 fax: +49 (0) 30-290278-397 brand-rex india, middle east & africa aspect tower - business bay office No. 2206 zone b PO Box 123908 dubai united arab emirates

brand-rex nordic ekbacksvägen 28 168 69 bromma sweden tel: +46 (0) 70 770 9302 brand-rex denmark +45 (0) 24 26 25 44

tel: +971 (0) 4 454 8644 fax: +971 (0) 4 451 8660

brand-rex finland +358 (0) 407 229 229

brand-rex italy via giovanni da udine, 34 20156 milano italy

brand-rex sweden +46 (0) 70 626 87 03 brand-rex portugal lagoas park edifício 8 – piso 0 2740-244 porto salvo portugal

tel: +39 (0) 02 3809 3711 fax: +39 (0) 02 30412014 brand-rex italy viale di trastevere, 248 00153 roma italy tel: +39 (0) 06 8360 0665



tel:

The information contained in this document is valid and correct at the time of issue. However, we reserve the right to modify details without notice in the light of subsequent Standard / Specification changes and ongoing technical developments. © Brand-Rex Limited 2016

brand-rex russia +7 499 7097066

tel: +34 (0) 914 905 919 fax: +34 (0) 916 573 331 brand-rex uk 72 cannon street london EC4N 6AE united kingdom

tel: +44 (0) 207 489 7637 fax: +44 (0) 207 113 2239 brand-rex high performance solutions west bridgewater street leigh, lancashire WN7 4HB united kingdom

tel: +351 (0) 21 421 4133 fax: +351 (0) 21 421 4135

www.brand-rex.com [email protected]

Literature Ref : CSR/EN 01/16

brand-rex spain avda puente cultural 10 edif a, pt 1 puerta 1 28702 san sebastián de los reyes spain



tel: +44 (0) 1942 265500 fax: +44 (0) 1942 265576