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REC Annual Report 2011
41
SUSTAINABILITY IN THE SUPPLY CHAIN
REC strives for sustainability and the highest level of business ethics in
all its activities, and promotes transparency and accountability to
continuously improve business conduct together with the stakeholders.
This includes setting requirements to suppliers, contractors and
business partners. To be able to achieve the ambitious targets, REC
seeks to contract services as well as the purchase, hire, or lease of
equipment and materials in a manner to ensure that REC’s own
sustainability policies are met, including audits and contractual
obligations.
In 2011, the focus has been on implementing a standardized sourcing
process for significant direct material suppliers to REC Solar’s wafer, cell
and module production and to parts of RECWafer. Suppliers in these
areas typically represent more than 80 percent of the annual
expenditure of REC Solar. Sustainability has formed a key part of
supplier pre-qualification reviews, supplier audits, supplier performance
management and supplier development. The sustainability issues cover
human rights, freedom of association, child and forced labor, corruption
as well as occupational health and safety.
In 2011, all significant direct material suppliers for REC Solar have
undergone audits on sustainability. For RECWafer in Norway,
sustainability is also included in audits conducted on approximately half
of the significant direct material suppliers and key business partners. No
suppliers were identified as having significant risk regarding the
sustainability issues.
Audits for REC Silicon suppliers were not conducted in 2011. In 2012,
REC will seek to further harmonize on the supplier quality process
including sustainability across all business segments.
STAKEHOLDER RELATIONS
Stakeholder engagement in REC takes on many forms, depending on
type of stakeholder group. Stakeholder identification with whom to
engage is based on whomREC is directly responsible for as well as those
that are directly affected by our activities. Examples of stakeholder
groups are employees, customers, investors and representatives of the
local communities where REC operates. The stakeholders are consulted
with on different subjects through both formal and informal channels.
Employees are e.g. regularly consulted on health and safety issues
through the formal health and safety committees. Other work related
subjects will be discussed with the union representatives where this is a
formalized procedure as in Norway. The most important subject in 2011
regarding employees has been the organization restructuring and
shutdown of capacity in Norway. In this context the unions have been
involved in the whole process. A close dialogue was also kept with
representatives for the regional and local governments and other
affected stakeholders.
Customer relations
REC works to maintain customer relations by various means. Since 2009
REC Solar has conducted an annual customer satisfaction survey, which
is distributed to business partners involved in the solar module markets.
Customers can also provide feedback directly online, related to their
own products.
The annual survey covers a range of themes including marketing, the REC
Partner Program, claims, logistics, and product / technical issues. It also
seeks feedback on REC’s brand and market perception. A comparison of
findings from2009 to 2011 is illustrated in the chart below, in terms of
customers overall satisfaction with REC, whether they would
recommend REC, and howworking with REC compares with other
providers. The findings indicate positive improvements in REC Solar
customer satisfaction.
RECWafer and REC Silicon engage with customers more in relation to
specific technical issues, and so meet with customers face-to-face or via
formal technical exchange events which are organized by REC Silicon
bi-annually. These events are attended by RECmanagement and REC
experts in engineering and manufacturing, in order to provide customers
with the level of service and insight they require.
Investor relations
REC has a strong relationship with its investors. Senior management
engages in dialogues with investor groups on a frequent basis. Through
increasingly strong focus on sustainability among the investors, this has
influenced REC in improving in more transparent sustainability
reporting. REC will continue to develop its reporting and disclosure,
which will be used as a basis against which to measure and drive
continual improvements in sustainability performance.
Community engagement
REC recognizes that it is a key player in the communities inwhich it
operates. In 2011, RECmade a total of 81 investments or donations across
all sites, with a total value of approximately onemillionNOK.
REC Silicon has established a community affairs strategy to guide the
provision of strategic support to charitable organizations and increasing
local community participation. REC Silicon also seeks to reinforce
relationships with local authorities, industrial and community neighbors
*
How is it to work
with REC compared to
other manufacturers
of solar modules?
Would
recommend
REC
Overall satisfaction
with REC
* on a scale of to 6, where is poor / very unlikely and 6 is excellent / very likely
Overall customer satisfaction and likehood of recommending REC