Haniel Annual Report 2010

magazine 2010

Our title model is nine-year-old Katharina Blech who joined in the art project with her brother Paul. Her mother works for the Haniel Holding Company.

Grandchildable.

THINKING IN GENERATIONS. SHAPING CHANGE. AND IN DOING SO BEING OPEN FOR THE CHALLENGES OF THE FUTURE.

contents

06 »Let’s make the world grandchildable!« Haniel CEO Jürgen Kluge on his plans for the future.

Future

PRESENT

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The world seen through children’s eyes.

What wishes, hopes and goals do coming generations have? An art project.

12 So that everyone does the right thing – even if nobody’s looking.

Chairman of the Supervisory Board Franz Markus Haniel talks about values and the family.

14 3D value enhancement.

Creating values for people, the planet and profit. How the Sustainability Council of the Haniel Group aims to make the world a little better.

16 Something big is going on here.

In its quest for new business Haniel has taken a close look at the key megatrends.

Florets in the tank.

Driving and at the same time protecting the environment. CWS-boco knows the recipe.

28 Wheels for fair education.

Haniel enters into new educational partnerships during a pilot project in Duisburg.

32 Mission to save lives.

Pakistan is drowning and Celesio provides aid. Report on a successful relief operation.

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Art project. magazine in the magazine starting from page 10.

Children reveal how they see the future.

ORIGINS 36 An endless number of lives.

A station clock explains how it is constantly reinventing itself thanks to ELG.

40 Out of the comfort zone.

Employees of Hubert actively engage in voluntary work – and get a day’s leave from their boss in return.

48 A story about the future.

The Haniel portfolio has been changing for 255 years. The system of values remains stable.

54 One of the last of its kind.

A tour with a former miner of the Zoll­verein colliery once founded by Franz Haniel.

50 Ambassadors from the past.

Exhibits from the Haniel Museum tell of the company’s social commitment.

44 Engaged locally in Ruhrort.

How Haniel gets involved at its headquarters. A stroll through the port district.

58 Wanted: Respectable salesman/woman.

Enhancing value – living out values.

Haniel needs people who stand for both of these. A job advertisement.

Editorial

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Haniel CEO and physicist JĂźrgen Kluge has his eyes on the future.

Grandchildable

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» We need to shape our environment in such a way that future generations have at least the same opportunities as we do today. Let’s make the world grandchildable!« editorial

It must have been yesterday. We were still in the middle of the financial crisis. We were envisaging horror scenarios and resolving defence strategies. And then we came off lightly after all. Apart from a few exceptions, the economy is picking up. At Haniel we have just increased sales by 3 billion euros and quadrupled our pre-tax earnings. Four of our divisions are back on growth course. So can we continue as if nothing had happened? No. It is only a question of time before the next bubble bursts somewhere. I don’t know where. It certainly won’t be where the last crisis arose but it is bound to be in an area again in which the actors have lost all sense of proportion.

And the consequences of the terrible natural disaster in Japan and the uncertain political situation in North Africa are still fully unclear.

We therefore need to endeavour to become more resistant towards crises. »We« does not just apply to Haniel but to the entire economy, as well as politicians and citizens. We need to shape our environment in such a way that future generations have at least the same opportunities as we do today. Let’s make the world grandchildable!

What does this aspiration entail for the Haniel company? For us it is about also creating value in the future – and not just economic but also environmental and social value. There’s no either-or about it. Haniel is an ›and‹ company.

Those like us who wish to secure long-term corporate value enhancement need to be able to make strategic forecasts: What new target groups are arising? What products and services does the new world need?

Where are the global growth markets? This preoccupation with the future is a tradition at Haniel and has been for 255 years. How else would it have been possible to rise up to become the pioneer of industrialisation in the nineteenth century? Or to abandon the mining industry in the 1970s with a view to the structural change that was looming at the time?

The twenty-first century has new megatrends on the agenda. Futurologists have specified around 20 – and we have dealt systematically with each one of them.

This analysis was an initial milestone for the »Haniel 2020« strategy project launched over the past year. Its core objective is to give fresh impetus to our tried and tested business model: buying small companies and using Haniel’s expertise, for instance in controlling or process structures, to make them more professional and more international.

We are currently on the lookout for companies that with our help can develop into market leaders. Only business models fuelled by one or more megatrends and that are capable of making a value contribution to both the Group and to the environment and society for years to come fit through our acquisition filter. Only these kinds of business model come into question for the ›and‹ company Haniel.

These criteria also apply to the existing holdings: here we also keep a very close eye on the value development. The Management Report provides information about the economic development. We present the contributions of the divisions to the environment and society in this magazine.

Analysing and planning. These were Haniel’s tasks last year. 2011 will be the year of implementation, the year in which we will hopefully beat the DAX again in terms of value enhancement. From 2012 we aim to be reaping the fruits of our strategic endeavours. In order to achieve high income we need to balance out the portfolio more strongly again. We are striving for a balanced mixture of smaller and larger companies comprising those that are fully in our ownership or listed on the stock exchange. Haniel also needs to be positioned internationally in such a way that sales and earnings are evenly distributed across the growth regions.

In order to achieve these objectives we will once again undergo change at Haniel and restructure the portfolio in the tried and tested 20-year cycle. What remains is an irrevocable core of values: We act in the interests of our grandchildren, great-grandchildren, great-great-grandchildren … Read about what precisely this entails and what drives us on in this magazine about tomorrow, today and yesterday.

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Future

Grandchildable

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01 The future’s beginning now

What global challenges do we need to meet?

How do we define responsible corporate management?

What instruments and structures do we need?

Haniel is preparing intensively for the future.

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Art project

Future

The world seen through children’s eyes.

Art project

Sustainability, corporate responsibility, innovation, future viability: anyone hearing these terms normally understands – nothing. Phrases such as these do not conjure up any pictures, stories, ideas and visions in our mind. However, these are what we need in order to shape the future energetically.

Adults are often too trapped in reality to be able to give their imagination free rein. The idea therefore arose of having the world explained by those who still view it in an undisguised manner: children.

Together with the LehmbruckMuseum in Duisburg, Haniel initiated an art project under the motto »That’s how I imagine the future to be«. Kindergartens, schools and youth institutions from the region took part.

And it goes without saying that the children and grandchildren of employees were also invited to deal creatively with the future.

The results were completely different from those expected by the youth care workers, teachers, museum education officers, parents and company. And that’s a good thing as it would be a pity if the future were no longer able to surprise us.

Read more about Haniel’s art project and about the dreams, wishes and plans of our grandchildren’s generation in the ›magazine in the magazine‹. New perspectives are guaranteed.

Afterwards the young artists will accompany you through the entire magazine: Direct quotes from the workshops can be found at the upper edge of the articles – ›listen‹ carefully!

Grandchildable

There’s this huge shelf in the LehmbruckMuseum which has everything you could think of: watercolours, chalk, crepe paper. Simply everything!

(Onur, aged 9)

THAT’S HOW I IMAGINE THE FUTURE TO BE …

An art project for children and young people.

A cooperative initiative of Haniel and LehmbruckMuseum Duisburg.

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How should the world be when I grow up?

Jonathan proudly shows us his masterpiece: a ladder made of old metal, partially wrapped around with gold foil. If you take a closer look you will discover small men made of wire climbing up it. »The ladder leads into the future. And everyone wants to climb up it because things are much nicer in the future.«

Jonathan has made the ladder with his brother Elias and classmate Emma. They are three of 92 children and young people who have participated in the art project of Haniel and LehmbruckMuseum. Under the motto »That’s how I imagine the future to be« they constructed models and sculptures, painted pictures or made collages. Haniel CEO Jürgen Kluge explains the idea behind this: »In 2010 we were intensively preoccupied with how we can shape our business and our

» What I really enjoyed was that we were allowed to ride in a forklift truck in the warehouse of Kaiser + Kraft.«

environment in such a way that coming generations have at least the same opportunities as we do today.

It therefore seemed appropriate to include those who our actions will affect: our grandchildren’s generation.« Contact with the grandchildren was quickly established since Haniel has for years promoted various local facilities for children and young people. The following were involved in the art project: Carpstrasse integrative day nursery, Ruhrort community primary school, the »Ruhrort Harbour Kids« youth club, the Franz Haniel Grammer School, the Ruhrort Comprehensive School – and not least the children and grandchildren of employees. For example the two teenagers Nina and Kim whose mother works for a Haniel company in Stuttgart. The two built the ’house of the future’ which consists of fabric remnants, old corks, cardboard and other findings – all materials which would otherwise quickly land among the rubbish. »We wanted to show that such things can be recycled and shouldn’t simply be thrown away.« Another team occupied itself with

the problems of an aging society and constructed a conveyer belt that takes medicines directly to people sitting in a park. »In order to inspire the children’s creativity we went on excursions with them,« explains museum education officer Claudia Thümler. These took the participants to different Haniel companies. For example, they inspected a huge high bay warehouse from which hundreds of office furniture items are dispatched across Europe each day. Or they visited a scrap yard where used stainless steel is collected for recycling. The programme also included a morning at the Future Store supermarket where robots advise customers about their shopping. »Our aim with the excursions was not to lay down specific topics. The children could pick up on and interpret what they had seen and experienced but they did not have to.« Milan (10) was inspired into constructing a »city of the future« including a time machine. What would he do if there really was such a device? »Take a look at what I will be when I grow up.«

CARPSTRASSE INTEGRATIVE DAY NURSERY

The municipal kindergarten is housed in the Horstmann Haus in Ruhrort that Haniel donated to mark its 250th corporate anniversary.

Âť We have painted a big roll of fabric together with all the children. There you can see many bright faces and the sun is shining.ÂŤ

» That was a really great project. We at Harbour Kids normally do a lot of things anyway but we have never been at such an art workshop.«

ruhrort Harbour Kids

The »Harbour Kids« have their youth club at the old mariners’ children’s home in Ruhrort. Haniel is the initiator of the project and has financed the conversion.

RUHRORT COMMUNITY PRIMARY SCHOOL

The primary schoolchildren visited an ELG scrap yard – and took away with them lots of inspiring material.

» That is a robot bridegroom.

We’ve also made a bride of course.«

Âť With the time machine you can travel where you want.ÂŤ

CHILDREN OF EMPLOYEES

Their grandmothers, fathers or uncles work for Haniel.

What might their own working world look like in the future?

The children had many ideas about this.

» Modern, purist and made of artificial materials – that’s what towns and cities are likely to look like in the future. It would be a pity if nature were to disappear from the towns.«

Âť Although our pictures look quite different the principle is the same: each work of art has several levels and is therefore multilayered. We found that this suited Haniel!ÂŤ

Franz Haniel Grammer School

The pupils of the Franz Haniel Grammer School in Duisburg are familiar with Haniel: Every year five pupils visit the company after whose founder the school is named.

Âť Transparency was an important theme for us. How do you maintain the perspective and get to the bottom of things?ÂŤ

Ruhrort Comprehensive School

The youngsters from the comprehensive school investigated the branch of pharmaceutical retailer GEHE in Duisburg. Health and fitness: an important future topic for the pupils.

Âť This is intended to be a sports club because we think that companies would do well in spending more money on such things.ÂŤ

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Dilara, 15, and Mirkan, aged 16 Jonathan, 9, Elias, 9, and Emma, aged 9 Sandra, aged 18 Timo, aged 17 Katharina, aged 9

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Melanie, aged 18 Dilman, aged 19 Milan, 10, and Johannes, aged 9 Hannah, aged 18 Dennis, aged 18

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Sven, 17, Marc, 20, and Falk-Fabian, aged 18 Till, aged 10 Ole, aged 20 Merlin, aged 17 Laura, aged 17

THIS IS HOW I IMAGINE THE FUTURE TO BE. A CREATIVE PANORAMA.

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Jan Malte, 18, and Alexander, aged 18 Isabell, aged 18 Philipp, aged 15 Belcim, aged 10 Carina, aged 17

21 Nora, 18, and Alexandra, aged 17 22 Iljas, 5, Jashan, 5, Max, 5, Johanna, 5, Stella, 5, Sude, aged 5, Luca, 5, Charlyn, 5, Alparslan, 5, Sandeep, 5, Juistin, aged 6, Lea, 5, Lindsey-Kai, 5, Ahmad, 5, Jan-Elias, 5, Jasmen, aged 6, Emmanuela Lesly, 5, Nebi, 5, Niko, 5, and Nadine, aged 5

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Onur, aged 9 Angelina, aged 18 Katharina, 9, and Paul, aged 6 Rebecca, aged 16

27 Jonathan, 9, Elias, 9, and Emma, aged 9 28 M端berra, aged 10 29 Paul, aged 6 30 Alina, 18, and Anna-Lena, aged 18

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Lisa-Marie, aged 14 Resmir, 16, Semih, 14, and Kevin, aged 16 Kirndeep, 20, Susanne, aged 22, Jeanine, 20, and Silvana, aged 20

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Soumaya, aged 10 Sophia, aged 12 Marlon, aged 7 Ann-Katrin, aged 12

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Maike, aged 17 Kim, 13, and Nina, aged 11 Lena, 11, and Josephine, aged 12 Julia, aged 10

42 Zlata, aged 10 43 Paul, aged 12 44 Tom, aged 8 45 Cengiz, 15, Bleranda, aged 16, Sezen, 16, and Maria, aged 15

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Daniela, aged 11 Aron, 13, and Frederike, aged 18 Miriam, aged 9 Paul, aged 6

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Ovidin, 16, Marius, aged 14, Steffen, 14, and Domenic, aged 15 Sunita, 15, and Manuela, aged 15

IF I WERE IN CHARGE OF HANIEL I WOULD ...

Aron, aged 13 … introduce meetings by video so that no more travelling to meetings was necessary. That protects the environment.

Dilman, aged 19 ... campaign as a sideline for people from poor countries.

Laura, aged 17 … campaign for poor people and those in need and try to give everyone educational opportunities.

I would also invest the company’s money in research and sustainability in order to create a good future.

Jonathan, aged 9 … donate money to the old people’s homes in Ruhrort.

Zlata, aged 10 … do everything to save the future and to help people with their problems because they need our help.

I would build houses for the poor.

Dennis, aged 18 … ensure that young people in Duisburg receive more financial support. For example, the heating costs of youth centres such as the one in Beeckerwerth could be assumed so that they do not have to be closed because they are unable to pay the costs.

Luca, aged 5 … build a giant hideout.

Vivien, aged 10 … give everyone more money and the company would get bigger.

And the Haniel scrapyard would also get bigger. And I would build a school that is pink and flies to me at home.

Paul, aged 12 … create more jobs and give those who didn’t do very well at school a chance.

Miriam, aged 9 … install escalators rather than lifts.

There would be an emergency chute in each room. If you wrote a report you would simply have to say what you wanted to write and the computer would do the writing. There would be doors that you would have to say your name to and the doors would open themselves.

Marlon, aged 7 … let my grandma take time off more often so that she has more time for me. When I grow up I want to play ice hockey in the NHL and not be in charge of Haniel.

Timo, aged 17 … observe and maintain the family traditions and expand the company further in order to find new attractive business partners around the world and make the company more global. I would also expand further the range of services for children.

Armin, aged 10 … expand Ruhrort and finish off unfinished building projects.

Emma, aged 9 … incorporate our motley museum in the Haniel building.

Nina, aged 11 … bring more colour to the building and more advertisements. Install emergency chutes. Install conveyor belts for the warehouses. Install sweet dispensers. More attractive work clothes. Name badges in bright colours. Add more decoration to the buildings. A swimming pool and a sauna for the lunchtime break.

Isabell, aged 18 … try to ensure that Haniel maintains its style and that the concept is not lost. I would also try to ensure that the employees can work in a pleasant atmosphere.

Mateusz, aged 9 … create a lock that can only be opened with your finger.

Elias, aged 9 … employ new people so that they can work and no longer have to live on the street. And construct a mobile phone that can be controlled with your thoughts.

Silvana, aged 20 … modernise the children’s playgrounds in Ruhrort and make Friedrichsplatz safer so that children can move around without fear.

Tom, aged 8 … ensure that there are only pancakes and pizza in the canteen and everyone would have a laptop.

Nora, aged 18 … get involved in different social projects and do something for nature conservation.

Frederike, aged 18 … create working groups in order to achieve better results and solve problems more quickly.

Julia, aged 10 … install a chairlift at all entrances that you only have to tell where you want to go to and it will take you there and then I would install an emergency chute out of the window. There would also be secret passages in every single room.

Kim, aged 13 … open an animal ward for the employees’ pets. There would be several keepers there to look after the animals, for example dogs or cats.

There would be time during lunch hour to look after your own pets.

Janina, aged 10 … expand Ruhrort. For example, build new houses, playgrounds and a school where there’s no homework.

Milan, aged 10 … ensure that everyone earns less money so that I could expand the company. Then I would employ more staff.

Alexandra, aged 17 … not want to improve or change anything.

Sophia, aged 12 … support people developing inventions.

Merlin, aged 17 … continue to manage the company in such a generation-conscious manner and get involved in social projects in Duisburg.

Hannah, aged 18 … support the social projects of Duisburg’s young people more. This way I could find more young people to show how a company works. I would also offer more internships in order to show them what they can do and support them in choosing their career.

Max, aged 5 … build a shopping centre where you don’t have to pay anything.

Charlyn, aged 5 … pay for everyone’s food.

Kevin, aged 11 … help poor people by building houses.

Ole, aged 20 … try to open up new business areas in order to address more customers and ultimately increase the company’s sales. I would then use some of the profits to sponsor projects, clubs and schools and in doing so make my company better known.

» It’s exciting to see the concrete visions of the future that the children have.«

Participants of the art project show Haniel Board members J체rgen Kluge, Stefan Meister and Klaus Tr체tzschler their works and talk about their ideas and thoughts. The participants included Paul Blech (6), Maike Langer (17), LisaMarie Braun (14) and Tom B채deker (8).

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Future

Art project

Grandchildable

There’s this huge shelf in the LehmbruckMuseum which has everything you could think of: watercolours, chalk, crepe paper. Simply everything!

(Onur, aged 9)

On the following pages you will find the original quotations of the workshop participants in the top margin of the page.

6 workshops, 92 participants, 36 hours and lots of fantastic experiences.

From May 4 to 6, 2011 the results of the art project will be on display at Franz-Haniel-Platz in Duisburg. If you would like to visit the exhibition please send an e-mail to info@haniel.de or call us on +49 203 806-253.

You can also visit us online at www.haniel.com/artproject.

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Interview

Future

» A common basis of values guarantees that everyone does the right thing – even if nobody’s looking.«

interview

An interview with Franz Markus Haniel, Chairman of the Supervisory Board and head of the family.

Companies should earn money and create jobs. This was for a long time the social mandate to business. However, we are now seeing that companies are also being measured in terms of how and for what they deploy their capital. Are we about to witness a paradigm shift, Mr Haniel?

At least the principle of value-oriented entrepreneurship is gaining importance again.

This is undoubtedly also related to the financial crisis. We have seen and experienced how quickly value can be destroyed if we only have our sights on short-term profit maximisation.

We are therefore well advised not to think in quarters but in generations. We need to create long-term benefits and meaning – not just for our own company but also for its immediate environs and society.

It cannot be difficult for you to think in generations. After all you are the head of a family with over 600 members. But does everybody share the same values?

Yes, because we know that this is the only way it works. This has been proven by 255 years of corporate and family history.

Today we are essentially still following what our ancestor Franz Haniel demonstrated to us. He understood that entrepreneurial freedom is always linked to social obligations.

He therefore invested not just in promising business models but also in common welfare. Our job is to keep this value-oriented entrepreneurship alive and pass it down to the generations succeeding us. We do this with a host of events for our young partners. However, we also incorporate these principles into the company since a common basis of values guarantees that everyone does the right thing – even if nobody’s looking.

But do not traditional values stand in the way of the change that is necessary for business success?

We see the values as a compass that helps us not to come off course despite the constant change. The world is constantly changing and the markets are also changing with it. We not only want to respond to this but to anticipate the changes and act in a farsighted manner.

In this way we have already adjusted the portfolio several times in the past decades.

By far the largest share of the sales that we generate today comes from companies that we have bought since 1982.

To avoid any misunderstanding: When we launch activities our intention is to retain them permanently. However, in the course of the changes in our environment we regularly ask ourselves whether what we are doing is still the right thing. Is the activity still suitable for us or could it possibly be better taken care of elsewhere?

Change is necessary – not for its own sake but because changed circumstances entail adjustments. To this end risks must also be taken. The Haniel family also bears these if the long-term value-oriented alignment is correct.

Although the family feels responsible for the company, it has placed the management in the hands of others since 1917. How does that add up?

Absolutely! This way we ensure that the best decision for the company is always made – irrespective of the emotional components that are inevitable in every family. What is good for the company is also good for the family in the long term. That is our key to sustained success.

Grandchildable

Agriculture is shown in the middle in brown. Then comes silver, which represents industry. It then gets colourful right on the outside – that’s the future. But only if we protect the environment.

(Lisa-Marie, aged 14)

» What is good for the company is also good for the family in the long term.« You are very involved in training the next generation of managers and make use of every opportunity to engage in contact with students … … in order to exchange dialogue with those who in a few years’ time will play a part in making the key decisions. It is simply exciting to hear and witness the energy, fascination and motivation with which the next generation is tackling the things that need tackling.

This makes me feel very positive about the future.

Of course I also seek contact in order to get feedback for myself: How do young people assess what we are doing today? In this respect I also very much value the critical dialogue about things that we could do differently and better. I gain a lot for myself personally from such discussions.

Franz Markus Haniel, born on April 1, 1955 in Oberhausen, initially studied languages and literature before switching to engineering. His professional career started at the consulting firm Booz Allen Hamilton. In 2000 Haniel joined the technology group Giesecke & Devrient where he worked for six years as CEO. The father of four children has been a member of the Haniel Supervisory Board since 1996 and became chairman in May 2003.

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Permanently on course

Future

3D value enhancement.

Strategy for corporate responsibility.

Permanently on course

»Our history as a successful multi-generation family enterprise shapes our ambitions for future social, environmental and economic value contributions. Sustainability is our guiding principle for corporate activities. By 2020 we aim to be one of the leading family enterprises in this field.« This is an ambitious target that Haniel has set itself. But how can it be achieved?

According to which criteria can progress be measured? Haniel answers this question with three letters: PPP. They stand for people, planet and profit as in order to carry out sustained management it is necessary to bring the needs of people, the environment and the company into harmony. The different dimensions of these actions must complement and strengthen rather than conflict with each other. To take an example, if a company changes its business processes in order to save costs and increase profits then this must also have a positive impact on the company’s eco-balance. The people in the company’s environs – be they staff or neighbours – should also stand to benefit.

The PPP formula is already applied during the selection of companies: Haniel will in future only take on companies with a sustainable business model. In order to be able to assess this, the company has developed an evaluation scheme, the sustainability scorecard: Based on 18 criteria, Haniel calculates for each investment whether it can make a value contribution to the three dimensions. How do the economic activities influence the environment and company – and vice versa? The answer must be »as positively as possible«. Can the benefits be increased further for the common good?

Reducing greenhouse gases in three dimensions.

This is also something that the holding and divisions review on a continuous basis – and for which they instigate countermeasures if necessary. Furthermore, the Haniel Group assumes responsibility outside its core business. For example, the companies participate in social and environmental projects. However, they only do this in cases where they can generate genuine added value through their skills. Overriding topics are in future to be worked on jointly.

Although as explained in the section entitled »From aspiration to reality« starting on page 22 the holding and divisions have already practised corporate responsibility in a wide variety of ways, a common line has so far not been recognisable in their projects. The PPP strategy developed in 2010 now provides an orientation framework within which the projects of the divisions are incorporated and which serves to create a clear understanding of sustainability in the Haniel Group: The grandchildren of investors, employees, customers, suppliers and corporate groups are to have at least the same opportunities as their ancestors today.

People. Among other things, greenhouse gases increase the near-ground ozone concentration, which among people can cause respiratory ailments such as asthma. By reducing their emissions, companies are therefore contributing to health protection.

Planet. The fewer greenhouse gases a company causes, the less damage is caused to the global climate.

Furthermore, emissions fall only if less energy is consumed – which protects supplies of coal, natural gas and crude oil.

Profit. Lower energy consumption results in cost savings. Investments such as in the modernisation of power and heating systems therefore pay off in the long run for companies.

People

Profit

Planet

Grandchildable

Ten experts – one committee.

Every strategy needs people to drive it along.

Haniel therefore created the Sustainability Council in 2010. The members set milestones, launch new initiatives and consider ways of networking projects throughout the Group. The committee held its first meeting in January 2011. The initial objective was to get to know one another and exchange knowledge. »Everyone in the Company Group should know what the others are doing in terms of sustainability in order to benefit from their experience. We wish to learn from one another and develop the overriding strategy further,« says Stefan Meister. He is responsible on the Haniel Management Board for corporate responsibility and a presiding member of the Sustainability Council.

On the one side is business and on the other side nature. In my picture they are both linked to each other. And that’s how it ought to be as well.

(Rebecca, aged 16)

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Maximilian Teichner CEO of CWS-boco Axel Weiler Head of Business Development/Inhouse Consulting, Head of Corporate Responsibility at the Group Holding Company Ulrike Zimmer Corporate Responsibility Officer at the Group Holding Company

The divisions have also delegated representatives from top management to sit on the council since sustainability is a management issue at the Haniel Group. Independent academic experts in corporate responsibility ensure that the bigger picture outside Haniel is taken into account.

The ball has therefore been set rolling and the objective now is to stay on the ball.

The next meeting of the Sustainability Council in spring 2011 is already scheduled. »We engage in regular dialogue, intensify cooperation and report progress to one another,« explains Meister. »This way we ensure that the PPP formula does not merely exist on paper but that it is systematically implemented.«

Detlef Drafz Member of the management of ELG (represented at the first meeting by Martin von Gehren, Head of Legal Affairs at ELG) Matthias Kleinert Representative of the Celesio CEO for Policy and External Relations Michael Inacker Head of Communications, External Relations & CSR at METRO GROUP Maximilian Martin Lecturer at the University of St. Gallen and consultant »Faculty in Residence« at Ashoka University, USA Stefan Meister Member of the Haniel Management Board Sascha Spoun President of Leuphana University, Lüneburg Florian Funck Member of the TAKKT Board of Management

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Future research

Future

Something big is going on here.

The key megatrends and how they are changing the world.

Future research

Cool people drive a white car, go to a Zumba class rather than the fitness studio and eat only molecular cuisine. These are all contemporary trends – and most of them disappear just as quickly as they arise.

None of this offers anything from which a long-term market strategy can be derived.

A glance at the global megatrends is more rewarding as these indicate the direction for the decades to come and point towards new markets, products and customers.

Haniel therefore carefully investigated the megatrends in 2010 in order to identify those bearing a particularly large amount of economic potential.

Potential new business fields in the Haniel portfolio must be fuelled by at least one mega­ trend.

Three questions for …

Cornelia Daheim, CEO of Z_punkt The Foresight Company, a consulting firm for strategic future planning

What distinguishes a megatrend, Ms Daheim?

There are three criteria for a megatrend. First of all, it has a global reach. Secondly, it lasts for at least 25 years. And thirdly, it is of overriding importance – such as the megatrend ›demographic change‹. This has implications for social security systems, the economy and the working world, for instance. A global nature, duration and importance: When all this comes together then we are talking about a true megatrend.

Is future research a glance at the crystal ball or an exact science?

Neither. Obviously it is not possible to predict the future.

However, we can approach it by systematically developing scenarios. For the megatrends we rely on comparatively sound data material – because it can be observed over a prolonged period of time. We draw conclusions for the future from this.

Can companies simply ignore megatrends?

Be it the scarcity of resources or demographics: There is definitely no way past this for companies. The question is whether they allow themselves to be driven by these megatrends or become the drivers themselves. Clever companies observe the global developments systematically. We call this ›corporate foresight‹: It’s a case of broadening one’s view. What is happening at a radius of 360 degrees around the company? What new opportunities and risks do the megatrends pose for us? Those with the answers to these questions arrive where operational business has so far not taken them – and sometimes this is then the growth path for the future.

Grandchildable

I have built a robot. I could do with a robot to tidy my room.

(Lena, aged 11)

49

Knowledge as the economic driving force • Education and learning as a foundation • Innovation-driven markets • New global knowledge elite Today, half of all employees in the western developed nations are already involved in processing knowledge and information. It is no longer production but innovation that is becoming the core driving force of the markets and hence the decisive competitive factor. The strategic handling of knowledge as a resource is therefore continuing to gain importance. This includes drastically improving access to education in the developing and emerging countries – and even the developed nations need to increase their educational standards. This is the only way in which the social gap between knowledge insiders and knowledge outsiders that is entailed by this megatrend can be bridged: highly qualified people – who in Germany, for instance, make up no more than around seven percent of the population – are becoming part of a global elite that is establishing itself, the ›creative class‹. Its members are extremely well educated, fluent in several languages, internationally mobile – and highly coveted in business. As job nomads they are constantly changing employers and work locations so that patchwork biographies arise.

50

Future

Demographic change • Population explosion in the developing countries • Fewer births and aging in the west • Increasing migration The global population is growing more slowly but it is growing: In 2020 over nine billion people will live on the earth, some two billion more than today. This increase is almost completely attributable to today’s developing countries. In the developed nations the number of births will continue to fall but average life expectancy will increase.

This entails a shift in the structure of the population: In 2015 there will for the first time be more over-65s than under-15s living in the developed nations. In order to uphold the financing of pension and healthcare systems in this situation there is a need for well trained migrants. The increasing lack of skilled personnel can also be countered through immigration: The ›war for talents‹ is achieving a global dimension.

Future research

Grandchildable

The fridge of the future will recognise when there is no more food and then send a shopping list automatically to my mobile phone. Maybe the supermarket will also be able to bring the things directly to me at home.

(Sophia, aged 12)

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New mobility patterns • More traffic and traffic congestion • Networking of mobility systems • New vehicle designs Working in one town or city and living in another: While this development has already been observable for some time in the developed nations, it is now reaching the emerging countries – in particular the BRIC countries (Brazil, Russia, India and China).

The rising number of commuters is resulting in total gridlock above all in towns and cities.

In Germany alone traffic congestion already causes economic damage of some 100 billion euros each year. People are also likely primarily to use their own car for getting around in the future. It is necessary to link this private form of transport with public transport in an intelligent manner. The fact that crude oil is becoming scarce and at the same time the environmental damage caused by exhaust fumes is increasing is adding to the pressure for a change in mobility systems.

New drive concepts such as those based on hybrid technologies or hydrogen are being developed further and increasingly competing with petrol and diesel engines.

52

Future

Rerouting of energy and resources • Scarcity of raw materials • Use of alternative energy sources • Boom of efficiency technologies Driven by population growth and the industrialisation of developing and emerging countries, the consumption of resources is rising rapidly: Water and fossil fuels are becoming scarce as are rare metals required for the manufacture of mobile phones, for example. By 2030 global fresh water consumption will triple while energy demand rises by 45 percent. Many nations are attempting to meet the latter by pushing the use of renewable energies. However, this alone is not sufficient as it is necessary at the same time to reduce energy consumption. The market for efficiency technologies is likely to achieve a trading volume of USD 1.3 trillion by 2030 and hence to more than triple compared with today. At the same time municipalities and citizens are increasingly investing in the construction of their own energy conversion systems – on the basis of solar and wind energy, for instance.

Future research

Grandchildable

I would like everybody to have a laptop in the future.

I would use it to play lots of computer games.

(Tom, aged 8)

53

Globalization 2.0 • Economic boom in emerging countries • Global strategies with local adaptation • Change of direction with capital flows The emerging countries are advancing to become the key growth drivers of the global economy. This development goes hand in hand with a new self-confidence among the economic players in these countries: the number of corporate acquisitions in developed countries by the 100 largest companies from emerging countries has tripled over the past five years. At the same time the production of these companies for their own domestic market is rising. The potential consequence of this is that European companies only continue to play a role in the value chain as suppliers and thereby lose important sales markets. In order to counter the tightened global competition, companies are increasingly adapting their products to regional requirements and conditions according to the »think global, act local« strategy. As well as the changed international flow of trade, capital will also flow through different channels. Foreign investment in the developing countries is increasing by ten percent each year. At the same time the latter are themselves developing into influential investors: since 2000 China has increased fivefold the volume of its investments in European companies, for instance.

54

PRESENT

Grandchildable

55  

02 From aspiration to reality

Assuming responsibility. Within the business and beyond.

Concrete projects from the Haniel Group show what we mean by this. Each company has a different approach. For they all get involved where they are best able to do this. This breeds quality.

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CWS-boco

PRESENT

Florets in the tank.

How green fleet management benefits the environment.

CWS-BOCO

Jörg Felske engages the clutch, puts the van in gear and drives off. On a cold Wednesday morning in January Felske has the service tour across Wuppertal. His Mercedes Sprinter purrs quietly uphill in the hilly town centre. He has been out and about since 6am delivering flocked doormats, towel rolls and professional clothing. Only the low noise level and the green logo on the Sprinter indicate that Felske is at the wheel of a natural gas vehicle.

Is there anything he has to pay attention to? »No, everything works in exactly the same way as with a diesel or petroldriven vehicle,« he explains in the lilting intonation of Bergisches Land. »Its top speed is 120 kph, you can’t go any faster. But the vehicle drives brilliantly, very relaxed and stable. And it protects the environment at the same time, which I also find good.« Pioneers at the wheel.

The environmental protection aspect has also convinced Felske’s boss. Klaus Lücke, Service Manager at CWS-boco in Solingen, sits in his office immediately adjacent to the vehicle depot and talks with noticeable enthusiasm about his experience with the »florets emitted by the exhaust« as staff jokingly refer to the environmentally-

friendly refuel. When he was asked by the management in 2008 whether he could envisage a test run in cooperation with Mercedes-Benz, Lücke volunteered willingly as a pioneer: »A natural gas vehicle such as this emits just 212 grams of COc per kilometre, much less than the diesel models of this size that were on the market at the time.

Natural gas also performs better in terms of fine dust particles and nitrous gases,« he explains. »This impressed me – as of course the savings potential also did since at that time the price of diesel was sky-high.« The two-week intensive test with a prototype model was followed by further ones with more and more vehicles and always in close cooperation with Mercedes-Benz. Today Lücke’s complete fleet has been converted to natural gas. 35 leased vans with CNG drive (compressed natural gas) are at the disposal of his 56 drivers, most of them Mercedes-Benz Sprinters and a small share Iveco Daily models with different engines. »The drivers were only sceptical at the beginning,« says Lücke. »Now they are all quite keen.« Hooting in the cab. Jörg Felske drives with an expert sweep into the yard of a heating construction company. He explains how after a training course in economical driving he and his colleagues initially competed against each other for the lowest natural gas consumption per tour: »You were doing well if you got below nine kilos. As you can see, we drivers take our responsibility seriously.« And yes, the customers sometimes also commended him on the green logo on the vehicle. Felske unloads the goods for the

Jörg Felske, service driver in Solingen, drives around 150 kilometres each day in his natural gas vehicle.

heating constructers in an experienced manner, comes back and shows how the three gas cylinders of the tank below the loading area are distributed. »35 kilos of gas fit into them, which is enough for up to 250 kilometres. For one tour we drive around 150.

This means that as long as you always refuel afterwards everything goes fine.« If not then a petrol tank with a capacity of 15 litres can be engaged at a pinch.

The Sprinter is what in specialist jargon is termed a bi-fuel vehicle: unlike hybrid vehicles, which have two different drives, in this case one and the same engine draws on two different tanks. »But it is better not to switch to petrol,« says Felske and operates the lever on the dashboard, upon which permanent hooting starts. »Otherwise you’ll hear this tiresome noise all the time.« What Felske consumes at a small scale with his natural gas vehicle in Bergisches Land takes on completely different dimensions with a view to the European service fleet comprising 1,600 vehicles. Altogether they cover 60 million kilometres each year – 78 times from the earth to the moon and back. Simply the deployment of what now amounts to 260 natural gas vehicles in Germany has reduced COc emissions by almost 1,500 tonnes since 2008.

Grandchildable

People need some means of transportation. To prevent them from getting into traffic jams, I have constructed a skateboard that can hover at different levels.

(Paul, aged 12)

» The drivers were only sceptical at the beginning. Now they are all quite keen.« CWS-boco is considered the vanguard of the industry and the green fleet is constantly winning awards: First of all there was a distinction in the Preis der Deutschen Gaswirtschaft für Innovation und Klimaschutz 2010 (2010 German Gas Industry Award for Innovation and Climate Protection) in September 2010 and just two weeks later a distinction as part of the GreenFleet® Award that TÜV SÜD bestows annually

57

Strategic tour planning saves mileage Nevertheless, the improved tour management introduced three years ago has resulted in much greater COc reductions than the natural gas vehicles. Since then customers have no longer received CWS products and boco professional clothing separately as they did before but in one delivery and from one driver – such as Jörg Felske in Wuppertal. »Mixed service« is the name of the model involving centralised, strategic route planning for all 180 depots. Since 2008 it has dispensed with the need for journeys amounting to five million kilometres and reduced COc emissions by 3,600 tonnes. Altogether, CWS-boco has saved over 5,000 tonnes of COc in Germany since 2008 thanks to the natural gas fleet and strategic tour planning: This is equivalent to the volume of emissions caused by Klaus Lücke’s fleet in twelve years.

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CWS-boco

PRESENT

»We’ve involved the drivers from the start« Heiko Schmidt, Head of Corporate Logistics at CWS-boco International, peers at these figures at his logistics headquarters in Duisburg.

He is currently working on supplementing strategic tour planning, which only works for journeys that can be planned on a longterm basis, with a flexible alternative. »This would also enable us to map short-term journeys of the technical customer service,« says Schmidt. »We could certainly save a few more kilometres here.« However, despite the importance of the data material that he is evaluating in Duisburg, Schmidt knows that decisions made solely on the basis of elabo-

rate presentations and scenarios generally fall short of their objectives. »We’ve involved the drivers from the start,« he therefore declares. »They have local knowledge and can make constructive suggestions for drawing up the best possible route.« Gliding silently through Glattbrugg.

At the petrol station in Solingen, shortly before the end of his tour, Jörg Felske demonstrates how gas refuelling works. He takes the fuel nozzle, inserts it in the gas tank and after about five minutes the refuelling process has been completed.

With two petrol stations offering compressed natural gas in the vicinity, the Solingen depot is comparatively well supplied.

For the number of gas pumps nationwide is stagnating at just 800. »In my view that’s certainly a problem,« says Jörg Felske. »Espe-

Heiko Schmidt, Head of Corporate Logistics at CWS-boco International

Grandchildable

There was this really great towel roll in the toilets.

You could watch a film on the box outside.

(Stella, aged 5)

59

» I have no doubt that customers will soon also start vehemently demanding green logistics.« cially since at many of them drivers still have to pay in cash because many petrol stations don’t offer prepaid cards for gas.«

CWS-boco washes some 50 million towel rolls worldwide each year.

In Duisburg Heiko Schmidt is therefore already making new plans. Diesel vehicles have become cleaner and more efficient and electromobility is developing further: Why therefore only rely on one option? In the past year CWS-boco has tested an electric vehicle from Iveco in Switzerland with two drivers in Glattbrugg (near Zurich) using the model for their service tours for eight weeks in the spring. Instead of a fuel tank their vehicle was fitted with a battery that was charged up overnight on the premises of CWS-boco. The colleagues were able to drive 130 kilometres per day with each fully charged battery, which sufficed for normal service tours. Their van did not go unnoticed: The electric engine is so quiet that pedestrians were initially irritated. Moreover, with zero COc emissions, vehicles with this type of drive are more environmentally friendly during operation than any other vehicle.

»I want my grandchildren also to have something from the world« How does Schmidt view the overall outcome of the Swiss experiment? »Very promising.

We will observe the coming developments very closely – especially in terms of cost efficiency and battery performance.« Heiko Schmidt has no intention whatsoever to change the objective itself. A company that has committed itself to the protection of resources as strongly as CWS-boco needs a sustainable fleet policy not least to ensure its credibility: »We wish to minimise our COc emissions as much as possible. I have no doubt that customers will soon also start vehemently demanding green logistics.« It waits to be seen which type of drive is most suitable and whether perhaps hybrid models will also come into question one day as an interim solution. In Solingen, with Klaus Lücke and his team, Heiko Schmidt will at any rate find convinced fellow campaigners for new tests with environmentally friendly vans.

Klaus Lücke: »I want my grandchildren also to have something from this world in which we live. Whether we drive electric vehicles tomorrow or the developers think of something else completely new: if it’s good for the environment then I’m in on it.«

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Education as an opportunity

PRESENT

Wheels for fair education.

Project in Duisburg

»We need to become the Educational Republic of Germany. That is what will secure our future for the decades to come,« said Angela Merkel at the 60th anniversary of the social market economy in June 2008. Four months later, at the first education summit, the Chancellor and the prime ministers of the federal states decided to increase investment in education and research from 8.6% to 10% of GDP by 2015.

The national and federal state governments were unable to agree on who should take on the costs estimated at the time to amount to 60 billion euros. Less than a week earlier they had rapidly approved the bank rescue package amounting to over 500 billion euros.

Meanwhile the financial crisis has been overcome but the question of educational policy still remains unresolved. The second and third education summits were unable to bring any change here although at 13 billion euros the sum of the investment costs is now calculated to be much lower than originally assumed. And although studies such as the recent Innovation Indicator serve to increase the need for action even further, a comparison of the innovative power of 17 leading global developed nations puts Germany in ninth position.

Education emerges as a curb on innovation here: pupils are less well educated than in other countries and too little up-andcoming talent is coming from the universities. Only 22% of 25 to 39-year-olds have completed a degree. This puts Germany in third-to-last position in the ranking.

The Eurostudent report that compares the social and economic situation of students in 23 European countries also came to an alarming result: If a father does not have a university degree then it is less likely in Germany than in many other European countries that his children will study.

Only Lithuania, Slovakia, the Czech Republic, Romania and Bulgaria fare worse while the Netherlands, Spain and Finland come top.

The phenomenon preventing social advancement through education in Germany is referred to as the education sinkhole.

The opportunities for the children of non-academics get narrower and narrower during the course of their education since compared with the child of an academic the likelihood that the child of a non-academic will reach the upper level of a grammar school is only about half as great. At the threshold to university education it comes to no more than one third. »By helping to remove this imbalance we are improving both the employment market prospects of young people and the prospects of our company and location during times characterised by demographic change and a shortage of skilled labour,« says Stefan Meister, responsible on the Haniel Management Board for corporate responsibility.

Grandchildable

Based on this motivation the company launched the »Education as an opportunity« project at the end of 2010 whereby Haniel has entered into cooperation with Teach First Deutschland, Chancenwerk and Ashoka Deutschland (see page 30). Each of the three charitable organisations is already involved in the educational sector in supporting socially disadvantaged children. »Our partners supplement each other well because their approaches are so different.

If they dovetail their activities then they can achieve a greater overall effect,« says Meister by way of explanation of the cooperation idea which is initially being implemented at the headquarters of the Group Holding Company in Duisburg.

It is important for us to stand on our own two feet later and not be dependent on others. We therefore want to complete good vocational training.

(Susanne, 22, Kirndeep, 20, Silvana, 19, and Jeanine, aged 20)

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Education as an opportunity

PRESENT

Teach First Deutschland …

CHANCENWERK …

Ashoka deutschland …

… assigns graduates with outstanding personal and academic credentials to problem schools in Berlin, Hamburg and North Rhine-Westphalia. As Fellows they support the teachers in their work for two years. In order to prepare themselves, the graduates have to complete a three-month qualification programme. They are also coached by tutors during their school assignment. Companies and foundations cover the costs of the qualification programme.

Since August 2009 three Teach First Fellows have been teaching in Duisburg. »The feedback from the schools involved has been extremely positive on the part of both the teachers and the parents who realise what the Fellows achieve. We now need to strengthen the effect,« says Michael Okrob, co-founder of the initiative. »The Fellows are familiar with the structures and challenges at the schools to which they are assigned and know exactly where the pupils need extra coaching.« They share this knowledge with Chancenwerk.

… offers tutoring in the snowball system: Sixth-formers receive two school lessons per week of private tutoring from the students free of charge. In return, they then also spend two school lessons a week helping younger pupils with their homework. The underlying idea behind the approach is that role models exert a positive impact on young people’s educational career. The programme is successfully deployed in the Ruhr, Cologne, Bremen, Munich and also in Austria. »We promote the social and personal skills of disadvantaged pupils where the impact of Teach First ends – and in doing so benefit from the experience of the Fellows,« explains Murat Vural, founder and CEO of Chancenwerk. Although the initiative is not yet widespread in Duisburg, the Teach First Fellows wish to make use of their contacts at the schools where they are assigned in order to make the tuition concept known.

… is the national subsidiary of the first and world’s leading organisation for the promotion of social entrepreneurs – i.e. people who attempt to tackle a social problem with a business idea and entrepreneurial risk. They receive three-year grants, strategy, organisational and financial advice and access to a global network of 2,500 Fellows in 70 countries. Each year the German national office selects seven to eight Fellows from various disciplines – around a third are attributable to education. »We contribute a rich wealth of experience and a large network to the cooperation project. Our job is to enter into dialogue with the local educational landscape – i.e. with key persons at the local authority, with headteachers and foundations active in this area,« says Rainer Höll from Ashoka Deutschl­and. This way the initiative sounds out where there is an urgent need for action and asks what charitable organisation can make a contribution. Not just Teach First and Chancenwerk come into question here. »We also review whether there are other suitable social entrepreneurs in the Ashoka network for whom we can establish ties to Duisburg.« The establishment of further educational projects is a stated aim of all partners.

Grandchildable

63

In future money will fly down from heaven.

(Jonathan, aged 9)

Teach First Deutschland

Driving force: HANIEL

Ashoka Deutschland

Chancenwerk The Haniel project »Education as an opportunity« is a cooperation with Teach First Deutschland, Chancenwerk and Ashoka Deutschland.

haniel »Haniel provides the driving force for the individual cogwheels so that they can gear into each other and set a larger mechanism into motion,« explains Ulrike Zimmer, Corporate Responsibility Officer at the Group Holding Company. The cooperation partners address themselves to socially disadvantaged children and young people at the schools.

They also provide teachers and parents with incentives for improving their cooperation.

This enables educational barriers to be reduced with combined strength in order to pave the way for a successful professional future for the pupils.

»We’re starting in Duisburg because here we are able not just to provide pure financial support but also to deploy our local business in order to assist the project on its way to success.« The company is participating actively in the cooperation by mediating locally between the three partner organisations and the institutions. As well as the contacts Haniel also provides rooms for meetings, conferences and other events. Employees of the Group Holding Company who participate voluntarily in the individual projects receive support for this from the company.

Ulrike Zimmer coordinates the education project at Haniel.

64

Celesio

PRESENT

Mission to save lives.

A race against the flood. celesio

August 6, 2010

August 24, 2010

August 28, 2010

The government in Pakistan declares a state of emergency. For weeks now, the country has been drowning in mud. The country has not seen a monsoon this bad for decades.

The Indus River and its tributaries, which cut through the Islamic Republic from North to South, have burst their banks.

The floodwaters are sweeping away whole towns in their wake in the Punjab province of Balochistan and in Khyber Pakhtunkhwa to the north of the country. Millions of people are now fleeing their homes and sleeping on the streets with no sanitation, food or medicine. Relief organisations estimate the number of lives claimed by the floods at 1,500 and the death toll creeps ever upwards. The first outbreaks of cholera begin.

Relief efforts are in full swing at the Metro Cash & Carry, which has five self-service wholesale stores in Pakistan. The company started by providing flood victims with food packages and is now supplying the worst-hit areas with tents, blankets, cooking equipment and electricity generators worth a total of 200,000 euros.

Then Frans W. H. Muller, CEO of Metro Cash & Carry Asia/CIS, receives a phone call: His Excellency Shahid Kamal, Ambassador of Pakistan in Berlin, asks whether he could provide medical supplies for the countless sick flood victims. Mr Muller agrees and contacts the Managing Board of Celesio.

The Managing Board of Celesio offers its help straight away and gets the Celesio subsidiaries, pharmaceutical wholesalers GEHE in Germany and Herba Chemosan in Austria, on board. As a leading company in the healthcare market, the Managing Board found it only natural to lend its support to relief efforts for a disaster such as this. Together with André Blümel, CEO of GEHE, and Andreas Windischbauer, Managing Director of Herba Chemosan, he laid down a plan of how to proceed. Celesio would focus its part of the relief operation on the supply of antibiotics.

Antibiotics were essential in tackling the diarrhoea and infections plaguing so many of the flood victims. GEHE and Herba Chemosan would each channel around 50,000 euros from their respective budgets into the relief operation and contact their most trusted pharmaceutical manufacturers as quickly as possible. Dierk Dennig, assistant to the Management Board at the Celesio headquarters in Stuttgart, would take control over the organisation of the relief action.

Grandchildable

Our conveyor of the future brings medicines to people directly.

That is important because people are getting older and older.

(Maria, aged 15)

september 3, 2010

september 5, 2010

september 9, 2010

The situation in Pakistan deteriorates further.

The floods and landslides have long since reached the South. Over a million people are fleeing their flooded villages and descending upon the Sindh province alone. There has been no clean drinking water since the infrastructure collapsed.

The area is a breeding ground for bacteria and viruses and outbreaks of severe respiratory infections are increasing as people are weakened by the wet conditions. Mengeshe Kebede, UN refugee agency (UNHCR) representative to Pakistan, declares, »I have never seen a situation as devastating as I saw in Balochistan.«

Good news from Germany and Austria. Pharmaceutical manufacturers have responded rapidly. Above and beyond the allocation requested by GEHE and Herba Chemosan, pharmaceutical providers Betapharm, GL Pharma, Hexal, Ratiopharm, Sanofi Aventis and Stadapharm all pledge additional medical supplies worth a total of 150,000 euros.

GEHE organises for all medical supplies to be sent to a central delivery address at the Logistics Service Centre in Weiterstadt.

Herba Chemosan first scrambles together its share of the relief aid at its warehouse in Vienna. Lawyers at Celesio explain to Dierk Dennig early on that it would go against standard company procedure to simply load the supplies and transport them back to Germany, highlighting the risk that the whole relief operation could come tumbling down at customs. Celesio is at first unsure how to overcome this obstacle.

Dierk Dennig

Mr Dennig agrees his plans with buyers at GEHE and Herba Chemosan. Which pharmaceutical manufacturers would get involved?

How long would it take to fix binding commitments? At the same time, he gets in touch with Janbaz Khan, First Secretary to the Pakistan Embassy in Berlin. He teams up with his colleagues at the Consulate General of Pakistan in Frankfurt. They agree to contact Frankfurt airport operator, Fraport, and Pakistan International Airlines to arrange air freight transportation of the medical supplies to Islamabad. Pakistani agency, the National Disaster Management Authority (NDMA), will assume receipt of the supplies.

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66 

Celesio

PRESENT

september 15, 2010 Dierk Dennig can breathe a sigh of relief, the delivery issue is resolved. Janbaz Khan got in touch with his colleagues at the Pakistan Embassy in Vienna. The lorry that MGL Metro Group Logistics had organised for the transportation of the medical supplies from Austria to Weiterstadt gets hold of special freight documents for humanitarian aid shipments. It crosses the border without a hitch and arrives in Weiterstadt at exactly 10:30.

september 22, 2010

september 24, 2010

All of the medical supplies have arrived. Fifteen pallets with around 50,000 units and a gross weight of 3.5 tonnes are ready to go in Weiterstadt. In the emergency shelters of Pakistan, many people racked with fever are in dire need of these supplies. Over 20Â million people have now been affected by the flood.

But one question remains: how heavy, how wide and how deep are the packages allowed to be to meet requirements at Pakistan International Airlines? This is the one remaining issue to be resolved before the GEHE lorry can deliver the medical supplies to Frankfurt airport. Fraport pays the duty for the shipments and Pakistan International Airlines fills out the air consignment note.

Grandchildable

I particularly noticed the many blue boxes.

Medicines are delivered to the pharmacies in these.

(Sunita, aged 15)

67

» Pakistan is like an eagle«

september 26, 2010 Celesio AG has fulfilled its part of the bargain and therefore also shown a rapid and reliable response in dealing with this extraordinary challenge. Pakistan International Airlines transports the first pallets containing antibiotics from Frankfurt to Islamabad, with the rest to follow a few days later.

The National Disaster Management Authority delivers the medical supplies by helicopter to the flood victims. »There can be no doubt,« says Shahid Kamal, Ambassador of Pakistan in Berlin, »the antibiotics saved many human lives in Pakistan. We are very grateful to the METRO GROUP and Celesio for their rapid and straightforward assistance.«

No other disaster that has taken place over the last few decades has affected such a huge area and touched so many peoples’ lives as the flooding in Pakistan. A fifth of the country’s surface area was completely submerged in flood water and six million people were rendered temporarily homeless.

The problems in the aftermath of the flooding are still not over. But, according to official sources, over 95% of people who fled the onslaught of the flood have now returned to their home villages. However,

Shahid Kamal, Ambassador of Pakistan in Berlin

the health situation in the areas worst hit by the flood is still just as critical as before with women and children the most affected. Reporting on the situation, Shahid Kamal, Ambassador of Pakistan in Berlin, says, »We now need to focus on rebuilding the country’s infrastructure. People need roads, schools and wellequipped hospitals, but also the assistance required to build themselves a new home.« He describes the fruitful economic ties with Germany, which is the eighth largest investor in Pakistan, as a source of hope.

Kamal’s colleague Janbaz Khan, First Secretary to the Pakistan Embassy in Berlin, harks back to a popular Pakistani saying. »Our country is like an eagle. If a strong wind blows against it, it uses this wind to soar to new heights.«

68

ELG

PRESENT

An endless number of lives.

Stainless steel – the material that makes history.

ELG

At the heart of the city’s largest station I, a clock, hang above the day-to-day bustle of the city. I synchronise it in hours, minutes and seconds. Tick-tack, tick-tack. Parts of the material I am made of have already seen other places in the world. At other times. Were merged into other lives.

My secret is that of intelligent material. The survival of material. It glows in the same silvery manner as the trains sweeping by below: stainless steel. 2 Resilient. Ageless. Ready to outlive generations and constantly reinvent itself. Its endless story started with its discovery in 1910.

Could it be that back then someone already anticipated how important it would be for recycling management in the next millennium? Did somebody know how much this material would one day contribute to protecting resources and the environment?

The clock in Shanghai.

And that there would be companies like ELG Tick-tack, tick-tack: they constantly flow by that systematically addressed its global rebelow me. Commuters, travellers, ambitious cycling. 3 people, contemplative people, people in love, Tick-tack, tick-tack. Down below they melancholic types – always on the move on continue to flow by. They look up at me the way to their own little worlds. In offices, without knowing what I know. That the factories, galleries, shops, apartments and clock that sets their rhythm was a saucepan hotels. The silver glowing trains of the high- 400 years ago. I remember that evening as speed streamer discharge tens of thousands if it were yesterday … of people into the city within a few minutes.

Hour by hour, day by day. We are talking about the year 2365. The limits of growth have been On January 1, 2011 around 6.9 billion exceeded by billions. 1 people lived on the earth, 80 million more than in the previous year. Each second more than two people are added.

The problem is that raw materials are not growing at the same rate. According to a study by the World Business Council for Sustainable Development man will consume so many resources in the year 2050 that we will need 2.3 earths.

Stainless steel consists of iron, chrome, nickel and molybdenum in variable proportions. It is a material with a high growth rate: While ten years ago only 20 million tonnes were produced each year, 30 million tonnes are expected for 2011.

Stainless steel products are 100% recyclable – infinitely often and without any loss of quality. ELG collects the scrap at over 40 locations on four continents.

This is treated and sent to melting shops where recycling is a natural component of the manufacturing process. Today around 60% of each stainless steel product consists of recycled material.

Grandchildable

We went to a huge scrap yard where we got red helmets. That was fun!

(Emma, aged 9)

69

Stainless steel products are 100% recyclable – infinitely often and without any loss of quality.

The saucepan in Cornwall.

There was turkey for dinner. I was at the staff’s service as a large saucepan and conjured up tasty delicacies for their lordships’ dining table. Afterwards I felt the usual inner emptiness and sought consolation from my old friend Panny the frying pan. However, she was crabby and beset with melancholy thoughts. »Is that really all there is? A life as a frying pan?« sighed Panny. »I’ve got this certain feeling that there’s more in me. And I’m really afraid that no-one will discover it!« How right she was: A couple of months later she was thrown into the rubbish. 4 I for my part was lucky. The young lord took me with him to London. At some point in the Swinging Sixties I ended up a bit dented at a flea market in Notting Hill. And then, years later, I finally found myself in a lorry with very many other household items.

A revolutionary phase of my life began: In the following decades I was completely reinvented several times.

At one point I was a beer tap in a Belgian brewery and then I was a designer armchair in Milan. I went all round the world!

I have to admit that at times I suffered from loss of identity.

However, there were also fixed structures.

These included my stays at ELG in Duisburg. The specialists there track down the valuable scrap metal all over the world: The »jewel« of metal recycling, as one of the ELG bosses once put it. However, I was not exactly treated as a VIP. Instead I was a tiny part of the huge mountain of scrap. But that doesn’t matter because I never really stayed for long. 5

Only 20% of all stainless steel products fare the same way as the pan. The remaining 80% are collected and recycled.

The cycles vary strongly: While production scrap already returns to the recycling cycle after three months, domestic appliances have a lifetime of up to 25 years.

For building parts this even amounts to 50 years.

But the lads in Duisburg always prepared me perfectly for my assignments. One of the most exciting remains for me my performance as a door handle in Kyoto ...

At the ELG site near the port of Duisburg there are thousands of tonnes of scrap stainless steel. It only takes a few weeks for the entire stock to be replaced. A delivery that ELG sends to the customer for melting contains between 500 and 10,000 tonnes of scrap metal.

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ELG

PRESENT

The door handle in Kyoto.

I had not experienced anything like this before. This congestion. This gathering of the global political elite. Up until this point my life as a door handle at the International Conference Center in Kyoto had been tranquil and with a lovely view of the cherry trees.

However, these were not in bloom when in December 1997 delegates from across the world spent eleven days here negotiating the future of our blue planet.

It was a serious situation. Clever minds had discovered that the increase in the global population and industrial production also entailed an immense increase in greenhouse gas emissions with drastic consequences for man and nature. They called it »climate warming«. They all agreed that it was necessary to limit COc emissions. But who, how much and by when? There was some real infighting. Having literally sat in a key position, I know what I am talking about.

The delegates kept coming and going by the minute and many had not slept for 40 hours.

However, I was on top form. For I promptly realised that in my stainless steel existence I would be the material of the future. I would preferably have liked to cry out, »Hey everyone, take me as an example. I’ve been being recycled for years – with the utmost care in the consumption of energy and raw materials.« 6 Here in Kyoto it finally became crystal clear for me. What years later would be propagated under the catchphrase sustainability had long since been an everyday reality for me and my fellow species.

On 11 December the nightmare was over and after a lot of wrangling a consensus finally emerged. 7 Years later the conference would catch up with me again in the form of a coffee pot I had got to know in Kyoto. In view of the large numbers of bleary-eyed participants it had fulfilled a key function there. We met again in Duisburg where we spent a few exciting days at the ELG scrapyard.

As stainless steel is largely manufactured from secondary raw materials (scrap stainless steel), it helps to save huge amounts of energy as the mining of primary raw materials such as bronze and its processing to produce stainless steel is extremely costly. By way of comparison, if a tonne of stainless steel is manufactured entirely from primary raw materials then 2.3 tonnes of COc are emitted. By contrast, if scrap stainless steel is used then only 0.6 tonnes of the harmful climate gas are emitted – 74% less.

In Kyoto agreements concerning greenhouse gas emissions that are binding under international law were actually resolved for the first time. The developed countries undertook to reduce annual emissions by 5.2% compared with 1990 by 2012.

Grandchildable

The coffee pot in Duisburg.

At first I didn’t recognise it in the backlight.

But then I did. It still looked as awesome as it did back then in Kyoto »Hey,« I called, »Remember me? It’s me, the door handle.« It gazed at me in a confused manner for a short moment but then the penny dropped.

The joy of reunion was great. We had after all held fervent discussions with one other in Japan about the environment, climate and what we could contribute towards achieving a positive outcome. You could picture the future magnificently with it – visions of a world in which growth and the consumption of resources would finally be decoupled.

It was marvellous to see how large its eyes became at the sight of the many cranes and mountains of scrap. It was here for the first time. The poor thing, it had been almost completely made out of primary raw materials and could therefore not know what it meant to be part of a recycling process.

Not yet! For now it was finally also about to experience this.

I started by familiarising it with the conventions at ELG so that it was not surprised by the various analysis procedures that would be carried out with it. »The precision with which they proceed here can sometimes get on your nerves a bit,« I said, »But in return you will afterwards end up with a customer with a generally good sentiment.« 8

In future we ought to recycle things and not just throw them away.

(Nina, 11, and Kim, aged 13)

It was astonished when I explained how often we could be transformed and that our appreciation had risen enormously together with the growing environmental awareness of recent years. There was a short moment of shock for me when an ELG specialist briefly took it away. I could already see it evaporating but I was lucky as it landed back in my immediate vicinity. 9 It seemed that we were destined for the same customer. Amazing! This meant that we would melt into the same alloy. I was to be proved right. I became a knife and it became a spoon. It was a great cohabitant.

But life still continues on and on.

ELG assorts the stainless steel scrap to ensure that it fits precisely for customers throughout the entire world. Each one receives the secondary raw materials in exactly the composition that it needs and precisely aligned to the end product. The delivery is also always supplied on time so that the production process at the customer end does not come to a standstill.

71

Epilogue.

Tick-tack, tick-tack. What was that? Was it down below in the café-bar, the silver lining at the bar? Did I perceive a twinkle there, a wink? Do I not know this special glint from somewhere? Was it Helsinki, New Orleans, Sydney … or just Duisburg?

At the ELG laboratories spectrometers analyse over 20 alloying elements in 30 seconds by light metering. For this purpose part of the sample surface is evaporated at around 10,000 degrees Celsius.

This process enables the company to guarantee its customers optimally coordinated quality.

72

TAKKT

PRESENT

Out of the comfort zone.

The volunteering programme from Hubert.

TAKKT

No, he is not trying to force anyone to do anything. »If somebody does not want to do any voluntary work then that is fine by me as long as they do their job properly,« says Bart Kohler, President and CEO of Hubert, the US market leader in mail order services for consumables and equipment for the retail and catering industries. »But we welcome the fact that some of our employees want to give something back to society.« And most employees at Hubert are very enthusiastic about volunteering. They sweep leaves for the elderly, work in animal shelters, help out in schools, give blood, donate food and clothing or look after people in their neighbourhood with a disability. If they want to, employees can even make their contribution to animal conservation by counting rare bats in the park near the company headquarters in Harrison near Cincinnati, Ohio.

Do it the American way?

Hubert calls the scheme Individual Volunteering Time (IVT) and rewards employees for their commitment by giving them a day’s paid holi­ day a year. With this scheme, the company is following a fashionable trend. In the USA, where getting involved in a good cause is deeply engrained in society, it is estimated that over half of all companies already offer similar schemes. Hubert’s scheme only has two conditions. The organisation that employees donate their time and energy to must be registered as a non-profit charitable organisation and the company also asks employees to write a short report about their experiences.

Does this type of charitable action only take place in America, you may ask. The answer is, not at all. Hubert’s Germany subsidiary, which has been active on the market since 2008, also encourages its employees to generously give up their time and energy for a good cause. In September 2010, CEO Hanns Rüsch got involved in his first charitable project. He and part of his team spent the day packing shopping trolleys as part of an initiative to help underprivileged children in Pfungstadt. »We want to do this sort of thing more often in the future,« said Mr Rüsch. »By getting involved in this way, we are showing that Pfungstadt can count on us.« At the same time, Hubert’s corporate responsibility is just one example of many.

All companies belonging to the TAKKT Group actively support social and environmental issues – in 25 countries across the world. The parent company in Stuttgart supports the local projects of its subsidiaries but deliberately imposes no provisions on them. At the end of the day it is the companies that know best how to participate in a constructive manner on site.

It all began with orphaned children initiative.

The company’s founders laid the foundation stone for the projects at Hubert. Their foundation made a particularly generous contribution to helping orphaned children in the Cincinnati region.

When TAKKT took over the company in 2000, Bart Kohler decided to continue the tradition and encouraged his employees to get involved in the project. His motto is: an employee who learns to consider the needs of others by doing voluntary work is more empathetic towards their customers and this ultimately benefits the company. In 2002, Mr Kohler created the Volunteer Leadership Council (VLC), one of the employee committees that acts independently of the Management Board. Its seven members are re-elected every two years and have an honourable task. They decide which projects Hubert uses its donation budget to help.

In addition, nearly every month, the VLC invites the entire workforce to take part in charity work.

Grandchildable

It was cool to be allowed to travel with the shelf robot.

At one point we got stuck. Then we had to wait until a member of staff had repaired the robot again.

(Marlon, aged 7)

73

Engaging in voluntary wor k is char acter building and allows people to grow. I am convinced that it benefits the employer too.

»A rewarding experience« What does the company get out of this programme that requires so much time and effort to run? The answer is, praise from customers and government bodies. Hubert has been singled out several times as one of the top employers in the Cincinnati area.

When asked what they like most about working at Hubert, the first thing that many employees mention is the volunteering time. »Volunteering for charities is such a rewarding experience,« gushes Amy Bibee, Account Development Manager. »It makes me feel that my small contribution is making a big difference.« Bart Kohler also believes that the high staff retention rate at Hubert has a lot to do with the volunteering programme. »In 2010, the staff turnover rate was only 2%. The normal rate in this sector is 10%. The programme shows that we value committed employees who want to make a difference and that is why they stay with us.« The standards that Mr Kohler sets for his employees, he also sets for himself. He does voluntary work for St. Vincent de Paul, an international charity that helps around 70,000 underprivileged people in Cincinnati alone. One week every month, he spends every evening in the city’s slum areas distributing food, medicine and clothing. He believes that time there is time well spent. »Providing people with a service is one of our single most important values at Hubert and this is what we are doing when we do voluntary work. It is a worthwhile exercise for us all to come outside of our comfort zones now and again.«

We want more! I firmly believe that every person has a duty to give something back to society. I have been volunteering for charities for as long as I can remember. I find it marvellous that Hubert supports us in this. I am a member of the Volunteer Leadership Council and help choose which projects we help as part of our programme.

One project that we get involved in every year is particularly close to my heart. The project is called Christmas Families and helps parents buy Christmas presents for their children.

Many parents write us thank you letters and tell us how their children beamed when they opened their gifts. I would be very much in favour of Hubert expanding the programme. I would be interested in organising a project to combat violence for example. Engaging in voluntary work is character building and allows people to grow. I am convinced that it benefits the employer too.

Ken Shaner, a 46-year-old Business Development Manager, is head of a sales team responsible for selling Hubert’s products to the retail industry.

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TAKKT

PRESENT

My aunt died of cancer when she was 40 years old. That was what first made me get involved in Relay for Life, a large-scale charity event run by the American Cancer Society, back in 2001.

Laura Hawley, a 50-year-old Human Resources Manager, is responsible for recruitment and personnel relations.

When I first started, I was extremely nervous and was unsure whether I would truly be able to help these people. For me, the biggest reward is when so many of them tell me how much they have got out of my tips and suggestions.

Cancer does not sleep. My aunt died of cancer when she was 40 years old.

That was what first made me get involved in Relay for Life, a large-scale charity event run by the American Cancer Society, back in 2001. Every summer, their voluntary workers organise 18-hour relays in numerous towns.

Cancer does not sleep, so neither do we. We run through the night as well. That is the idea behind it. We spend the whole year planning the event, collecting donations and campaigning for more people to help out. The event begins each year on a Friday evening with the Survivors Lap. People who have not yet won their battle with cancer run a lap with their heads held high, cheered on by rounds of applause from onlookers.

This is followed by a ceremony with candles to remember all those who have lost their battle with the disease and to give strength to those who are fighting and do not wish to be got down by cancer. It is an unforgettable event every year and I get so much out of taking part.

Amy Bibee, a 36-yearold Account Development Manager, develops products for Hubert’s main customers in the catering industry.

Thanks is the best reward. At the moment, I am volunteering as part of a local initiative to help unemployed people back into work. Three to four times a year, I help out in the training sessions. I talk to the participants about how they can prepare for an interview and how best to respond during the discussion. Many of them are long-term unemployed, were previously homeless, in prison or drug addicts.

When I first started, I was extremely nervous and was unsure whether I would truly be able to help these people. For me, the biggest reward is when so many of them tell me how much they have got out of my tips and suggestions. Specialising in personnel development, I get a kick out of using skills I have gained at Hubert to help others.

Whenever I tell my family and friends about our volunteering programme, they are often jealous and ask me whether there are any jobs going at Hubert. Applicants also often tell me that one of the reasons they want to come and work for us is because of this programme.

Grandchildable

I don’t want to work in a camp later as then I would have to get up at six o’clock every morning.

(Miriam, aged 9)

Greg Hubert, the 38-yearold grandson of the company’s founders, is an Account Service Manager and is responsible for optimal customer service.

Before joining his ancestor’s company, he spent his whole working life as a stockbroker.

Volunteering is contagious. I think that volunteering helps make us more complete and balanced people. That is why I got involved with the Volunteer Leadership Council to encourage as many employees as possible to join in the charity work. My grandparents, who founded the company, were both very socially engaged people and so it makes me especially happy to know that Hubert is still passing on their values today.

I like to see how much passion people with such different characters put into working together for a good cause. It helps the team bond and also strengthens the company at the same time.

I dream of one day starting a mentoring programme for students to make it easier for future generations to make the transition into the world of work. I believe that young people should find out early on just how much fun is involved in volunteering.

My neighbours started their own private initiative after I inspired them with my stories about what we do at Hubert. Four times a year, they are going to volunteer for different charity events and inspire our children to get socially involved too. It seems that the Hubert virus is contagious!

I th in k th at volu ntee rin g he lps m ake us m or e com ple te an d ba la nc ed people .

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76

Social Walk

PRESENT

Engaged locally in Ruhrort.

SOCIAL WALK

800 branches in over 30 countries: Haniel is a cosmopolitan company – but with firm roots in Duisburg-Ruhrort. Like the company, the port district can look back on a rich history but unfortunately it has lost its quality of life over the years.

Haniel is therefore joining forces with a large number of partners to bring the area back into blossom. Some projects are already noticeable, while others are waiting to be ›discovered‹.

Let’s take a stroll through the district.

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»New Ruhrort«. Back at the start of the 1990s Haniel modernised one of Ruhrort’s most important monuments: the »Tausendfensterhaus« (house with a thousand windows) dating from 1925. Since then the company has invested around 35 million euros in the redevelopment of the area – including a business centre offering 5,000 square metres of office space. To mark the company’s 250th anniversary, Haniel constructed the Horstmann Haus, named after a branch of the Haniel family, in 2006. The building houses the Malteserstift St. Nikolaus for dementia and stroke patients as well as a kindergarten in which handicapped and non-handicapped children are cared for together. Immediately adjacent to the Horstmann Haus, the Medical Center Ruhrort was established in 2007 and among other things houses Duisburg local health authority.

Aletta Haniel Programme.

Together with the City of Duisburg, the Haniel Foundation launched the »Aletta Haniel Programme« – the opportunity for your future! at Gesamtschule Ruhrort in 2009.

It is geared towards pupils from year 8 upwards who are at risk of not gaining any or only gaining poor school-leaving qualifications. At present 60 young people are benefiting from this support programme.

They receive language tuition, attend vocational preparation seminars and train their individual strengths at holiday camps – all under pedagogical instruction. This enables the pupils to improve their grades and gain school-leaving qualifications that will facilitate the start of their careers.

FaiR – Family in Ruhrort.

From Franz-Haniel-Platz the company coordinates the initiative that aims to make the area more attractive for families. For instance, the network includes youth centres, civic associations and welfare institutions. Together the members offer children and young people opportunities for making constructive use of their free time. In addition, the scheme is addressed expressly to disadvantaged families: FaiR aims to relieve them and to provide the young people with a social footing so that they can develop into strong personalities despite their difficult circumstances – an idea that Haniel is happy to support.

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Grandchildable

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New Neumarkt construction. Haniel embarked on the construction of the new office building in 2007. It now offers companies around 1,400 square metres of ideal working conditions. A further plus factor for Duisburg-Ruhrort as a business location.

Video slabs. Five video slabs were erected in Ruhrort in 2010 with the support of Haniel: They show historic film footage of the port district from the 1920s to the 1950s. The 1.60 metre-high ›peep boxes‹ are modelled on the bollards of a quay wall and are always positioned exactly where the cameraman initially shot the pictures. This enables a direct comparison to be drawn between then and now.

Ruhrort Harbour Kids.

Haniel created the youth club in the former mariners’ children’s home two years ago. Here children and young people can meet friends, listen to music or surf the Internet five days a week. Teachers help them with their homework and put on a holiday programme together with the children and young people.

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A large white building with a huge satellite dish on it: That’s what the company headquarters of the future could look like. With a nice park round the outside.

(Ovidin, 16, Marius, 14, Steffen, 14, and Domenic, aged 15) Dammstrasse

Friedrich-Eb ert-B

Alte

7

Haniel staircase. The staircase with a viewing platform leads from a bridge to Mercator Island, an old industrial site in the middle of the Rhine. A town planning project is to turn this into a location for art and culture just as it was during the Local Heroes week marking the RUHR.2010 Capital of Culture year: On May 21, the Spanish/ Catalan theatre group »La Fura dels Baus« performed »Das globale Rheingold« (The Global Rhinegold) with 60 trapeze artists.

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ORIGINS

Grandchildable

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03 Tradition provides us with orientation New strategies that sound promising. Opportunities that we may not miss out on. Projects that we must get involved with. Or maybe not?

There are thousands of paths that we could take. Despite this we always know which is the right one for us. That’s because we have a good compass: our values.

80

Values and change

ORIGINS

A story about the future.

255 years of Haniel in a nutshell.

values and Change

The merchants from Cologne, Münster and Essen are dissatisfied: At the port of Ruhrort, an important trans-shipment centre for goods from all over the world, there is not enough warehousing space. But tea, spices and cotton from the Dutch colonies are valuable. If they become moist then the traders lose good money. Thieves also have their eyes on the precious products.

Jan Willem Noot, customs inspector and second mayor of Ruhrort, identifies the needs of the merchants and senses a business opportunity. He decides to build a ›packing house‹ in which traders can store their colonial wares safely – for a suitable rent, of course. However, to do this Noot needs a property at the gates of the town.

The site belongs to no less a person than Frederick II. On February 10, 1756 the Prussian king signs the leasehold contract personally: Jan Willem Noot can turn the first spadeful of earth.

Today the Haniel Museum is housed in the old packing house (see box). It tells the story of changeful times: how Noot’s daughter Aletta and her husband, Jacob W. Haniel, began to trade in wine and operate a haulage service. Or how her youngest son Franz Haniel developed into the driving force of the company – by utilising the opportunities of the Industrial Revolution in an innovative manner.

The changing business of more recent times is also presented: Haniel has sold fuel, manufactured building material and operated shipping.

Aletta Haniel

Franz Haniel

1756–1804 START AT THE CONFLUENCE OF RHINE AND RUHR

1805–1829 STEAM-POWERED BUSINESS

1830–1868 MINING AND BOURGEOISIE

1869–1916 THE HERITAGE

A warehouse sowing the seeds for haulage and trade

The Haniels utilise the opportunities posed by industrialisation

Franz Haniel’s commitment to business and society

The descendents balancing preservation and modernisation

Grandchildable

We have built the city of the future. There’s also a time machine there that you can use to travel through time.

(Milan, 10, and Johannes, aged 9)

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» Entrepreneurial momentum spanning centuries: only companies with a stable core of values can achieve this.« Franz M. Haniel, Haniel Supervisory Board Chairman

The Haniel values Amid all the change characterising the Haniel enterprise there is a central theme running through the centuries: the Haniel values. These are rooted in Christian ethics and their secular interpretation comprises the principle of the »respectable salesman«.

This is derived from the firm conviction that property entails obligations and is intended to serve man.

The job and aspiration of the respectable salesman is therefore to deploy his talents not just for his own benefit but also for the well-being of all people associated with the company.

Family virtues such as respecting the achievements of previous generations and assuming responsibility for those to come have also been incorporated into Haniel’s canon of values, which apply irrespective of the particular time or business portfolio – also and at least for the next 255 years.

We think in generations.

Our history as a family enterprise that has been successful for centuries shapes our long-term thoughts and actions.

We act in an entrepreneurial manner. We stand out at all corporate levels by acting in a forward-looking manner with a pronounced desire to shape.

We create value. Our sustained value-enhancing corporate management ensures our economic success – to which we feel obliged and which also enables us to create social value.

We shape change. We see change as an opportunity for sustained growth – but instead of allowing ourselves to be led by events we actively shape markets.

We assume responsibility. It is our task to bring economic, ecological and social objectives into harmony.

We strengthen our staff.

To enable our staff to contribute their creativity and skills to corporate success in the best possible manner, we call for and promote these by means of trusting dialogue.

1917–1945 A TIME OF CONFLICT AND CRISES

1945–1960 REBUILDING AND RECONSTRUCTION

1961–1980 CHANGE OF PERSPECTIVES

since 1981 FROM RUHRORT INTO THE BIG WIDE WORLD

Surviving difficult times with a new structure

Growth with new business

Departure from the mining industry and development into a group holding

Focus on growth markets and staff

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Responsibility

ORIGINS

Ambassadors from the past.

Responsibility

Long before there was ever such a term as »corporate responsibility« the Haniel company and family stuck up for its employees and society.

1830 The Thusnelde bell When Franz Haniel’s only daughter Thusnelde is born in 1830, the Catholic parish in Ruhrort is in the process of planning the construction of a rectory and church. Since money is scarce, the Catholics ask Franz Haniel to donate a bell to them. The entrepreneur fulfils this request – although he himself is a Protestant. In the bell manufactured at Haniel’s smelting works he has the name and birthday of his daughter engraved.

The steel bell weighing 70 kilograms initially hangs in a provisional chapel and in 1847 moves to the newly built parish church. At the start of the First World War an odyssey through numerous towns and municipalities starts for the Thusnelde bell at the end of which its trace is lost. Only in 2002 does it reappear again in the antiques trade. Haniel purchases the antique item and donates it to St. Maximilian’s Catholic parish in Ruhrort once more.

This is the story told by exhibits from the Haniel Museum. They urge and inspire us to continue our history as a company that acts responsibly.

Would you like to see and know more?

If so then visit the Haniel Museum in Duisburg-Ruhrort.

Or embark on a virtual tour at www.haniel.com/history.

255 years of fascinating corporate and family history await you!

Grandchildable

It smells funny in the museum.

But the things are nice none the less.

(Jashan, aged 5)

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1844 Historic photographs of the Eisenheim estate

1837 Statutes of the first German company health insurance fund Staff wellbeing is of particular concern for industry pioneer Franz Haniel. In order to safeguard his employees at the Ruhrort dockyard financially against accidents and illness, he sets up a provident fund in 1837, thereby founding Germany’s first company health insurance fund. From 1840 Haniel expands the protection to cover all staff in his company.

In the nineteenth century more and more people move to the Ruhr. There is enough work for them at the many smelting works and coal mines – but no housing. Haniel therefore has eleven houses built between 1844 and 1846 on a site in what is today Oberhausen. The Ruhr’s first company housing estate emerges – the Eisenheim estate. Here the workers of Hüttengewerkschaft Jacobi, Haniel & Huyssen live together with

their families. In the small gardens behind the buildings they grow vegetables and breed pigs or goats. Haniel has the estate expanded several times and some 1,200 people already live there at around 1900. When the buildings in need of renovation are threatened by demolition at the start of the 1970s the inhabitants successfully found one of the region’s first citizens’ movements. The preserved houses are today listed buildings.

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ORIGINS

1845 Bushel, around 1860 The bushel is a measure of capacity for corn – but in the years 1845/46 there is virtually nothing to measure in the Ruhr: Following several bad harvests there is a shortage of food. The little food on offer is unaffordable for normal families. People are starving.

During this difficult period the steel company Jacobi, Haniel & Huyssen buys bread, flour and crops and then sells these at low prices to the workers and distributes them free of charge to needy families. Furthermore, the company establishes an eating house for the workers in Oberhausen and exempts them from making contributions to the provident fund.

Although traditionally there is less work in the winter months, the day labourers continue to receive summer wages. In addition, not a single worker is laid off. All in all the company pays 7,000 thalers in the fight against starvation. By way of comparison, the average annual wage in the Ruhr coal-mining industry at this time is around 110 thalers.

Responsibility

1862 Anchor from Haniel’s hospice This steel anchor once held up the first hospital in the town of Ruhrort. To enable it to be erected, Franz Haniel donates 5,000 thalers on the occasion of his Golden Wedding in 1856 – and he provides the same sum for the construction of a school.

Six years later, Haniel’s hospice opens with ten beds, one doctor and a deaconess.

As is customary at this time, the hospital is not just for those who are ill but is also open to people requiring care and the elderly. The Haniel hospice exists for 115 years until it is demolished in 1971.

Grandchildable

We have linked company and culture in our picture because we think there should be both.

(Dilara, 16, and Mirken, aged 16)

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1908 Gynaecological instrument, start of the twentieth century Medical provision especially for women – at the start of the twentieth century this is something that only affluent families can afford. This means that if the wife of a worker has just got over a difficult pregnancy or birth then the husband must look after the household and children.

1904 Debut performance programme at Duisburg theatre The Haniel family attaches great importance to the musical education of its children and also wishes to enable the inhabitants of its native city of Duisburg to enjoy culture. For this reason Theodor Böninger, the husband of Franz Haniel’s granddaughter Adeline, donates 200,000 reichsmarks from his private assets in 1904 for the construction of a theatre. The Haniel company provides a further 10,000 marks.

The theatre is opened in 1912 and at the ceremonial inauguration the ensemble performs excerpts from Richard Wagner’s opera Die Meistersinger von Nürnberg and Wallenstein’s Camp by Friedrich Schiller. The theatre continues to enrich the cultural life of the region today.

These workers are then absent from the coal mines. In January 1908 the management of Haniel’s Neumühl colliery therefore decides to appoint a practice nurse. She is to look after sick and pregnant wives of miners. Two years later there are already five nurses engaged. From 1912 there is a proper nursing ward.

1927 Johann Welker’s desk

In June 1917 Johann Wilhelm Welker becomes manager of the newly founded Franz Haniel & Cie. GmbH so that for the first time somebody is in charge of the business who does not come from the family. Nevertheless, Welker too commits himself far beyond the call of duty to the company and its staff: In 1927

he donates 10,000 reichsmarks from his private assets and issues orders for the money to be used to assist staff who have got into financial difficulties through no fault of their own. To this day employees of the Haniel Group have been able to receive support from the Welker Fund.

Mining in the genes: Bode’s grandfather already worked in ore mining.

And Bode’s eldest son completed an apprenticeship as an electrical system installer at Zollverein.

Grandchildable

We imagine the future to be one in which we do not have to work but can chill out all day.

(Sven, 17, Falk-Fabian, 17, and Marc, aged 20)

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One of the last of its kind.

A trip to the Zollverein colliery with a former miner.

Report

A few metres from the main entrance to the Zollverein colliery a dark red steel door leads to Ulrich Bode. The sturdy 72-year-old sits on an office chair. His strong hands are placed on his stomach as he explains how everything began for him.

April 16, 1963 at the Zollverein colliery: Bode was 24 years old and had just graduated in mining from Aachen Technical University. »The colliery managers initially wanted to put me off. However, I already had a railway ticket to Munich where I had a job guaranteed with the Federal Armed Forces.

I laid this on the table. They then hired me at Zollverein on the spot.« A rich bed of coal Bode puts on his olive-green anorak. Back we go through the red steel door, this time out into the labyrinth of industrial buildings. »They cleaned every single brick by hand and re-laid it,« explains Bode as he remembers the costly restoration in the 1990s. He was once responsible here for the weather technology and accordingly ensured that the colliery gases could escape in a controlled manner. »If you’ve done that kind of job at the colliery then after retiring you certainly

think about what to do now.« Bode returns to Zollverein. Today he is chairman of Zeche Zollverein e.V. which aims to keep alive the history of the colliery. »I’ll probably never quit this job. There is hardly anyone left who has worked here as a miner himself and knows the place.« As he says this, Ulrich Bode climbs the metal steps to a narrow bridge stretching across the site.

Behind Bode the imposing tower from shaft 12 with the famous »Zeche Zollverein« logo rises up majestically. At the other end of the bridge the considerably smaller towers of pits 1 and 2 rise up. »The coal that we mined there was transported by funicular across this bridge to the coal washing plant,« says Bode and points towards the sandy ground

around five metres below. »Here below the ground we had the largest coal deposits in the Ruhr. Numerous beds of coal with the best bituminous coal.« What Bode does not explain is that in the area around Essen the coal is hidden beneath a 100-metre-thick stratum. For a long time it was considered impossible to penetrate this. Industry pioneer Franz Haniel also risks failing here. From the 1830s he has pits driven vertically into the ground in order to reach the bituminous coal that he urgently needs to heat his blast furnaces.

He is assisted in this by a relatively new invention: the steam engine. Haniel intends to use this to pump out the ground water running into the pits. Several attempts backfire and Franz Haniel is almost bankrupt. But he does not give up. Finally, in 1834, his workers penetrate the mighty cover near the Schönbeck and strike coal. Although the bed of coal only reveals inferior coal, Haniel now knows how it works and applies the technique to his new colliery that he founds in 1847: Zollverein.

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Zollverein colliery

ORIGINS

» Here’s where it all started with the Haniels.«

The founding pits of Zollverein colliery around 1860.

In the 2010 Capital of Culture year Haniel donated the model to the Ruhr Museum opened in the former coal washing plant.

Halls steeped in history »Yes, here’s where it all started with the Haniels,« says Ulrich Bode, who has now reached the other side of the bridge. The oldest buildings of the Zollverein World Heritage cultural site are to be found on pit site 1/2/8 – some date from 1901 when Haniel modernised and extended the facilities above pit 1. In that year the colliery with just under 2,000 miners extracted 879,887 tonnes of coal – the greatest output in the Ruhr.

Bode is standing in front of a building with a barrel-shaped roof. He is unable to go inside as the dance centre housed here is currently converting the building. »This used to be the pithead baths. They were divided

into two: we got undressed in the white dressing room and put on the scruffy work gear in the black dressing room.« When the 800 or so miners returned from their shift then the order was reversed.

However, after a few years in the job Bode no longer went down to the pit very often. As head of weather technology he had his office in the smart administrative building three minutes’ walk from the pithead baths. Did he not miss the time spent underground and the special comradeship there? He waves dismissively. »There was no constant fraternisation there and we also weren’t always embracing each other,« he says in order to disenchant the romance of mining. Nevertheless the closure of the colliery did not leave him cold. When coal production at Zollverein ceased there was a big farewell celebration for the employees. Bode

Grandchildable

I’ve made a dancer because I have already been involved in musicals myself. My picture consists of feathers, straws, matches, bin liners, screws and paper clips.

(Ann-Katrin, aged 12)

enjoyed free beer and pea soup. »But then a fuse in me suddenly burst. I just wanted to go home,« remembers the father of five children. »After all I had worked for a very long time at Zollverein. I wasn’t at all happy about the closure.«

Culture instead of coal Having said this, Zollverein had survived a comparatively long time until 1989. The big death of coal mines started back in 1960. At that time there were still 125 pits in operation in the Ruhr – ten years later there were no longer even half as many. The structural change was in full gear. The Haniel family had anticipated this and already sold all stakes to Zollverein back in 1926.

84 years later Haniel is back in Essen again – as main sponsor of RUHR.2010 Capital of Culture. The big opening party at Zollverein in January was attended by 100,000 visitors from across the world. Bode was not there. »It was just too cold for me. But it’s great to see how they beat a path to our door.«

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90

ORIGINS

The Respectable Salesman

Grandchildable

I’m definitely going to become a volcano scientist when I grow up.

(Luca, aged 5)

Enhancing value – living out values: this has been Haniel’s principle of success for 255 years. It is implemented by people who combine vision and responsibility. Who act in an entrepreneurial manner and while doing so have the wellbeing of future generations in sight.

We are looking for a:

Respectable salesman/woman OUR OFFER • We offer you exciting strategic challenges in an international company group.

• You will become part of one of the oldest German family enterprises and work at one of the industrial locations in Europe most steeped in history.

• You will receive the opportunity to take on corporate responsibility and put your ideas into practice.

YOUR TASKS • You create value for the company on a sustainable basis and in doing so pay attention to the social and environmental impact of your actions.

• You have the courage to question the status quo, seek innovative solutions and in doing so shape ongoing change.

• You call for and promote optimum performance in the team and assume a role model.

In return you too will receive individual support for your career planning YOUR PROFILE • You have vision and are able to derive new market opportunities for the Haniel Group from current developments.

• With your honest and convincing personality you act in the interests of your employees, society and the company.

• You have excellent business expertise and are not afraid of taking on responsibility.

• Thanks to your analytic abilities you are also able to penetrate complex issues and communicate them in a transparent manner.

Franz Haniel & Cie. GmbH / Corporate Human Resources Franz-Haniel-Platz 1 / 47119 Duisburg / Germany / T +49 203 806-0 / career@haniel.de

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IMPRINT. Editorial team Sonja Hausmanns, Haniel (management) Myrto-Christina Athanassiou, Rat für Ruhm und Ehre Katharina Golomb, Haniel Dr Marie Thillmann, thillmann + team Editorial assistance: Lisa Giesing, Kathrin Iding Photos Stephan Brendgen, Monheim Bettina Engel-Albustin, Moers Catrin Moritz, Essen Bodo Mertoglu, Munich Thorsten Schmidtkord, Düsseldorf Photo credits Max Bahr for That’s what school does (Ashoka) Page 17, top right: Courtesy of One Laptop per Child Corbis Getty images Plain picture Design Peter Schmidt Group, Düsseldorf Layout and typeset Burkhard Wittemeier, Cologne Project management Susanne Keyzers, Haniel Translation AJKL, A. Journet & K. Leonbacher, Cologne EVS Translations, Cologne Production Druckpartner, Essen Schotte, Krefeld Coordination of art project Christina Erz, Haniel Christina Godoy Tenter, Haniel This annual report is published in German and English. Both versions are available for download on the Internet at www.haniel.com.

In case of doubt the German version takes precedence.

All statements in this brochure with regard to occupations and target groups apply, always and irrespective of the formulation, to both male and female persons.

Franz Haniel & Cie. GmbH Franz-Haniel-Platz 1 | 47119 Duisburg | Germany Phone +49 203 806-0 | Fax +49 203 806-622 info@haniel.de | www.haniel.com 04/11 – d/5,000 – e/2,000

Printed with a zero carbon footprint on recycled paper made entirely from waste paper.

Franz Haniel & Cie. GmbH Franz-Haniel-Platz 1 47119 Duisburg Germany Phone +49 203 806-0 Fax +49 203 806-622 info@haniel.de www.haniel.com