Rieter

For Rieter, sustainability is an important objective of corporate activity. The Rieter Group aims to ­generate lasting value for all stakeholders. Rieter ­is therefore committed not only to achieving ambitious economic goals, but also to ecological and social responsibility. Rieter has pursued a safety and environment mission and adhered to a code of conduct for many years.

1 The environment

As an industrial group operating on a global scale, Rieter strives to make continuous improvements to the environmental compatibility of its products throughout the value chain. Great importance is attached to innovation – in processes that generate less waste or products that feature higher energy efficiency. Considerations such as environmental compatibility, recyclability and safety are systematically incorporated in all processes and decisions.

In order to ensure a reliable assessment of environmental impact, Rieter continuously records energy, water, waste and emissions levels for purposes of sustainability reporting. SEED (Social, Economic and Environmental Data), an electronic platform for collecting, evaluating and reporting ecologically relevant data, was first introduced in 2007 and was implemented at almost all sites in 2008.

1.1 Energy efficiency

Energy saving is a core criterion in the development and manufacture of machinery at Rieter ­Textile Systems. The energy consumption of Rieter spinning machines has been reduced by an average of 30% in the past 20 years. This includes energy consumed for air conditioning and lighting in the spinning premises. The RSB-D 22 double-head drawframe and the G 35 ring spinning machine are two new, energy-efficient products which achieve energy savings of 11% and 8%, respectively, compared with their predecessor models.

Rieter has invested in a new powder coating line at its Winterthur machine works. This has enabled waste water volumes and energy consumption to be reduced considerably, and no hazardous waste is produced. The group continuously invests in the refurbishment of buildings at various sites, thus contributing to a reduction in environmental pollution through lower consumption of heating oil and electric power.

1.2 Ecologically efficient products

A project team at Rieter Automotive Systems is responsible for continuously improving the environmental compatibility of its products. An im­portant tool in this process is “Life Cycle Assessment” (LCA), an internationally recognized measuring method: an ecological balance sheet traces the total burden imposed on the environment by a product from its manufacture through its designated use to its disposal.

One successful example of environmentally compatible product innovation is Rieter Ultra Silent,

a novel material for underfloor modules and engine undershields. It is produced from totally glass-fiber-free PET and is 100% recyclable. Furthermore, weight savings of up to 45% per vehicle can be achieved with the underfloor module. This unique technology helps automobile manufacturers to achieve their targets for sound insulation, weight reduction and environmental compatibility. Significant reductions in vehicle weight and thus fuel ­savings and reductions in CO₂ can be achieved with the Rieter Ultra Light technology developed some years ago.

The Automotive Systems Division completed ISO 14001 certification at 80% of its total of 53 manufacturing sites in 2008. This certification is a quality label for environmentally compatible conduct as an element of corporate processes. In 2008 Rieter also took part in the survey for the Carbon Disclosure Project, an international program for ­collecting and analyzing climatically relevant corporate data.

2  Customers

Rieter strives to support customers in achieving their objectives by supplying innovative and competitive products and the relevant services. Satisfied and loyal customers are a crucial factor for sustainable corporate management. Various pro-cesses for measuring customer satisfaction are established in both divisions. In 2008 the Textile Systems Division implemented a new process­ ­featuring monthly surveys of satisfaction with the services provided by Rieter in order to collect ­feedback from customers even more effectively. This enables Rieter to undertake systematic ­further development of products and processes.

3  Employees

3.1 Jobs and personnel

The group recorded a steep decline in sales and earnings in 2008 as a result of the global recession. It became essential to adjust capacity in both divisions. The reduction in the workforce initially affected mainly temporary personnel, but later also permanent employees. All action taken in this context was discussed in advance with unions and ­personnel representatives. In Europe the European Works Council was informed at an early
stage and consulted in additional meetings. Joint solutions were worked out with personnel representatives for the employees affected, such as short-time working, allowing for personnel turnover, early retirement and internal transfers. Unfortunately, a number of redundancies were unavoidable on operational grounds.

3.2 Industrial safety

In-house training in industrial safety and the inspection of plants and their infrastructure by Rieter specialists make a major contribution to ­accident prevention. Indicators provided by the SEED ­database enable training to be specifically targeted.

In order to heighten the awareness of personnel in the emerging economies for industrial safety, Rieter conducted extensive training at its site in Changzhou, China, for the first time in 2008. The objective was to communicate know-how on accident prevention at the workplace and to ensure that uniform precautions are taken. Similar training programs are also planned in India.

3.3 Training and personnel development

A further building block was added in the field of management development in the year under review: a Project Management Training program was added to the group-wide Corporate Management Training program and various international further training schemes in the divisions.

In 2008 a uniform performance management ­process, which facilitates the systematic career advancement of individual employees, was conducted for the first time for senior management ­levels. This process will be continued in 2009 and extended to the next management level. A structured interview focusing on personal and ­professional development is held with all personnel at least once a year.

Apprenticeship training takes high priority at Rieter. For example, some 120 trainees were employed
in seven occupational categories at the Winterthur machine works in the year under review. Similar training is also provided at Textile Systems sites in Germany, while semi-skilled training is offered in China.

3.4 Code of Conduct

Rieter’s Code of Conduct sets out the rules for daily relations with business partners, customers, suppliers, competitors, the public and personnel. It is essential that executives act as role models for ethical conduct. An e-learning tool dealing with the main themes of the Code of Conduct has been developed for senior management. The personnel in question are called upon to complete this program once a year. Knowledge of the Code of Conduct is continuously reviewed in this way.

4  The community

Rieter operates about 70 manufacturing facilities in 21 countries and is aware of its social responsibility at these locations. The company attaches importance to a cooperative relationship with the local authorities based on mutual trust and good communication with the local population.

In Winterthur, Rieter put the small, decommissioned power plants historically located on the ­factory site to ecologically beneficial use. In 2008 they were refurbished in cooperation with an external operating company and the Office for the Preservation of Historical Monuments of the City of Winterthur and re-commissioned. The two power plants produce 2 million kilowatt-hours annually, equivalent to the consumption of 400 to 500 households.

Rieter also supports international charitable pro­jects. In India the company has been supplying a village with clean drinking water for the past ten years. The “Village Wing-Talekar Vasti” project operates at a Rieter site in Maharashtra. 300 villagers can obtain drinking water there free of charge. Sanitary facilities for local schools have also been financed.