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REC Annual Report 2011
36
Sustainability
The Board of Directors gets quarterly sustainability reports focusing on
KPI scorecard and risks. It is a Board responsibility to secure acceptable
performance, also within the sustainability area.
Certifications
To ensure quality in all parts of the production, REC is using the ISO9001
certification as a basis framework. Five of eight RECmanufacturing units
nowhave ISO9001 certification.
To further improve the environmental aspects of the production process,
REC has been focusing on implementation of the ISO14001 standard. The
ISO14001 is a framework to assist organizations in developing their own
environmental management system. All business units in Singapore have
achieved the ISO14001 certification and are undergoing annual audits by
third party.
OHSAS 18001 is an international occupational health and safety
management systemstandard. It is intended to help organizations control
occupational health and safety risks. All business units in Singapore
implemented the OHSAS 18001 during 2011, and achieved the
certification at the end of the year.
Similarly, the polysilicon facility in Butte is actively pursuing the USOSHA
equivalent toOHSAS 18001, called theVoluntary Protection Program
(VPP). TheVPP recognizes companies who have implemented effective
safety and healthmanagement systems wheremanagement, labor, and
OSHAwork cooperatively and proactively to prevent fatalities, injuries,
and illnesses through a system focused on: hazard prevention and control;
worksite analysis; training; andmanagement commitment andworker
involvement. VPP participants are exempted fromOSHA programmed
inspections while theymaintain their VPP status. The facility in Butte
submitted their application in December 2011 andwill be audited in 2012.
Business Conduct
REC sets high standards of integrity, which are expected of every
employee and in every country where we do business. The REC Code of
Conduct is the integrity framework that describes the behavior
expected of employees and stakeholders, based on the REC Group policy
of Business Conduct and the REC core values; Responsibility,
Enthusiasm, Commitment, Innovation and Drive. It contains practical
instructions to help employees in their day-to-day work and is
underpinned by standards and policies covering issues such as
corruption and illegal payments.
The Code of Conduct is available in English and Norwegian and was
revised and approved by the GroupManagement in February 2012. A
training programwill be rolled out in 2012 for targeted employees, and it
is integrated into induction training of all new employees. Every
employee has to sign the Code of Conduct to acknowledge their
commitment of adherence.
Awhistleblower hotline and procedurewas launched in 2011, encouraging
all employees, contractors, vendors and other stakeholders of the Group
to report their concerns or complaints related to the RECGroup’s Business
Conduct. REC investigates all potential integrity concerns and cooperates
fully with lawenforcement agencies. The Audit Committeewill be
informed of all complaints related to accounting and auditingmatters. The
Boardwill be informed of specific complaints as required andwill also be
provided regularly with general updates of complaints received. No
adverse actionwill be taken against an employee due to complaints
submitted in good faith. Complaints can bemade anonymously.
In 2011, REC was subject to one case of alleged corruption, however
after thorough investigation there was nothing found. REC will take
every accusation of corruption seriously, do a thorough investigation,
report to the Board of Directors and take the necessary actions.
Compliance
REC in Moses Lake paid a fine of USD 50,219 to the Department of
Labor & Industries in 2011. This was a result of negotiated settlement
related to 14 violations of the process safety management regulations
following a week long inspection in March 2010. The underlying matters
associated with the violations have been ameliorated.
Regarding environmental non-compliances, in 2011 REC in Moses Lake
was fined USD 10,000 for not meeting emission limits set by the
Washington Department of Ecology’s air quality permit. This was related
to emission tests conducted in June 2010.
In 2011, REC was subject to no legal actions for anti-competitive
behavior, anti-trust or monopoly practices, and received no monetary or
non-monetary fines for non-compliance in this area.
In 2011, REC was subject to no legal cases regarding corrupt practices
or discrimination. In 2011, REC was neither a subject to monetary or
non-monetary fines for non-compliance with laws and regulations
concerning the provision and use of any products and services.
ECONOMIC SUSTAINABILITY
The table on the next page summarizes the direct economic value
generated and distributed by REC in 2011.
PEOPLE AND ORGANIZATION
The total number of permanent employees decreased by 15percent during
the year to3,587 at the end of 2011. The decrease ismainly driven by the
permanent shut down of production capacity inNorway. For RECWafer this
was a reduction in number of permanent employees of 33percent, giving
a total of 718 at the end of 2011. For RECSolar, the reductionwas
13percent, bringing the total down to1,914permanent employees. The
reduction of capacity inNorwaywas themajor driver in the reduction, but
Singapore also reduced the number of employees by 14percent, down to
1,316. For the European offices involved inmodule sales, systems
integration and project development the number of employees increased
by 26percent up to78. Reorganization of the corporate functions gave a
reduction of 16percent during 2011. RECSilicon hasmaintained number
of employees during 2011 and have 882 employees at year end.
As some staffare still in notice period inNorway it is expected that the
number of permanent employeeswill be approximately 1,700 inRECSolar
and600 inRECWafer at the end of the first quarter 2012. InRECWafer
about 190of these employees are temporarily laid-off.
The number of contracted employees, apprentices and traineeswere 204
at the end of the year, a reduction of 51percent during 2011.