osram sustainability report 2014 (gri g4) - final_secured for

OSRAM Sustainability Report 2014

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As an international company, OSRAM is responsible for its activities throughout the world, and not simply its

portfolio. This includes our business operations, our dealings with customers and suppliers, but also our own

production activities in relation to the environment and resources, as well as occupational health and safety. In

all of these areas, we help to reduce negative impacts and strengthen positive effects using appropriate

management systems and organizational measures.

Economy, environment, and society

As a solution provider for products and systems, we base our strategic decisions on a holistic and integrated

concept considering all three pillars of sustainability – economy, environment, society – which is setting the

framework for all our thoughts and actions.

Sustainability at OSRAM – Excerpt of Facts & Figures Fiscal Year 2014

Sales € 5,142.1 million

Total employees 33,843

Employees by region APAC: 13,243

Europe/MEA: 14,414

Americas: 6,186

Dow Jones Sustainability Index World Member 2014, Industry "Electrical Components & Equipment"

Oekom Corporate Rating Prime Status 2014

UN Global Compact Member since 2005

Certifications ISO 14001 Matrix Certificate OHSAS 18001 Matrix Certificate ISO 9001 Matrix Certificate SA 8000 for OSRAM India ISO 50001 ISO TS 16949

Energy Balance

Primary energy: 4,226,300 GJ

Electricity: 2,887,563 GJ

CO2-Emissions Primary energy: 233,891 t

Electricity: 386,271 t

Water Usage 3,816,694 m³

Waste Balance Waste for recycling: 35,689 t Waste for disposal: 13,195 t

Compliance 71 reports of potential compliance violations

15 investigations concluded

Disciplinary action against 9 employees

71 existing matters were closed following detailed assessment

Additional information can be found on www.osram.com/at-a-glance


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Table of Contents

Our GRI Content Index is based on version G4 “Core” of the international guidelines published by the Global Reporting Initiative and can be found at the end of this document. It shall enable to get a quick overview of the report and ensure easy navigation.

The table of contents below provides an overview of the reported categories.

Unless stated otherwise the information and numbers in this document refer to fiscal 2014. The OSRAM Licht Group’s fiscal year began on October 1, 2013, and ended on September 30, 2014.

I. General Standard Disclosure 03

Strategy and Analysis 03

Organizational Profile 03

Identified Material Aspects and Boundaries 10

Stakeholder Engagement 12

Report Profile 13

Governance 14

Ethics and Integrity 15

II. Specific Standard Disclosure 16

Category: Economic 16

Category: Environment 17

Category: Social 22

Sub-Category: Labor Practices and Decent Work 22

Sub-Category: Human Rights 24

Sub-Category: Society 25

Sub-Category: Product Responsibility 27

III. GRI Content Index 2014 28


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I. General Standard Disclosure

Strategy and Analysis G4-1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

For a senior management statement please see our Communication on Progress (COP) 2014, > OSRAM Website: www.osram.com/cop

Organizational Profile

G4-3 Report the name of the organization.

OSRAM Licht AG

G4-4 Report the primary brands, products, and services.

OSRAM is one of the two leading light manufacturers in the world. Our portfolio covers the entire value chain from components – including lamps, electronic control gear and opto semiconductors such as light-emitting diodes (LED) – as well as luminaires, light management systems and lighting solutions.

Our OSRAM umbrella brand and the OSRAM logo are registered trademarks in every country where trademarks can be protected. Our products are marketed primarily under this umbrella brand. Optoelectronic semiconductor components are sold under the OSRAM Opto Semiconductors brand. In North America, we also market our products under the SYLVANIA brand. In the luminaires and light management markets, Traxon and Siteco are additional brands; these are sold under the OSRAM umbrella brand with the addition “An OSRAM business.”

See our > Annual Report 2014, section "Marketing", p. 90 (153 in whole pdf) and "OSRAM World", p. e (64 in whole pdf)

G4-5 Report the location of the organization’s headquarters.

OSRAM Licht AG Represented by Dr. Olaf Berlien, CEO, and Dr. Klaus Patzak, CFO Marcel-Breuer-Straße 6 80807 Munich Germany Phone: +49 89 6213-0 Fax: +49 89 6213-2020 > OSRAM Company Profile

http://www.osram.com/cop

http://www.osram-licht.com/fileadmin/media/pdf/annual-report/2014/OSRAM_en_annual_report_full_2014.pdf

http://www.osram.com/osram_com/company/company-profile/index.jsp


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G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

Our value added in fiscal 2014 was created by 33 production sites in 14 countries. Through our subsidiaries, sales locations, and partners, we have local representatives in over 120 countries, enabling us to keep in close contact with our customers.

See our > Annual Report 2014, section "OSRAM World", p. e (64 in whole pdf).

G4-7 Report the nature of ownership and legal form.

OSRAM is a global lighting group and a market-leading provider of lamps, luminaires and lighting solutions. Following its spin-off from Siemens in fiscal 2013, OSRAM was listed as an independent company.

The OSRAM Licht Group comprises the parent company OSRAM Licht AG, an Aktiengesellschaft (stock corporation) in accordance with German law, and just under 100 subsidiaries and investees, including minority interests.

See our > Annual Report 2014, "Organizational Structure and Reporting Principles", p. 40 et seq. (103 et seq. in whole pdf).

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

As a globally active company we serve markets worldwide. Details can be found in our > Annual Report 2014, "Business Activities", p. 42 et seq. (105 in whole pdf).





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G4-9 Report the scale of the organization, including: • Total number of employees • Total number of operations • Net sales (for private sector organizations) or net revenues (for public sector organizations) • Total capitalization broken down in terms of debt and equity (for private sector organizations) • Quantity of products or services provided

• Total number of employees: 33,800 Employees > Annual Report 2014, "OSRAM Figures", p. d (63 in whole pdf)

• Total number of operations: 33 production sites, 14 countries. Through our subsidiaries, sales

locations, partners, we have local representatives in over 120 countries. > Annual Report 2014, "OSRAM World", p. e (64 in whole pdf)

• Net sales and total capitalization: Revenues € 5,142.1 million

> Annual Report 2014, "Consolidated Financial Statements", p. 120 et seq. (183 et seq. in whole pdf)

• Total capitalization broken down in terms of debt and equity: See our > Annual Report 2014, "Consolidated Statement of Financial

Position", p. 122 et seq. (186 in whole pdf).

• Quantity of products or services provided: See our > Annual Report 2014, "Results of Operations", p. 59 et seq. (122

in whole pdf).







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G4-10 a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organization’s work is performed by workers who are legally

recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

For G4-10 we can provide the share of employees by segments, region, and function. Significant variations in employment numbers, such as seasonal variations, do not exist for fiscal year 2014.

> Annual Report 2014, Table "Employees by Segments" and "Employees by Regions", p. 93 (156 in whole pdf)

> Annual Report 2014, Table "Employees by Function", p. 183 (246 in whole pdf)

G4-11 Report the percentage of total employees covered by collective bargaining agreements.

Percentage of employees covered by collective bargaining agreements varies widely between regions.

In Germany all of our employees are covered by either works agreements with works council bodies with local and country-wide responsibility or agreements with speakers` committee for executive management.

OSRAM has a Group Works Council for OSRAM Licht AG. For OSRAM GmbH is a General Works Council in place. In other countries own employee representatives are established.




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G4-12 Describe the organization’s supply chain.

OSRAM purchases a broad range of products from partners worldwide. In general our suppliers are separated into direct material suppliers for raw, semi-finished, and packaging material, finished product suppliers, and indirect material and service suppliers. Our procurement function is organized regionally according to raw materials groups and managed globally. It is responsible for the complete purchasing volume.

Around two-thirds of our purchasing volume is attributable to direct materials and finished products. Sourcing is to a large extent directly impacted by market conditions for commodities such as nickel, copper, tin, or derivatives, e.g. plastic resins or paper products. In glass and lamp production, energy is also an important part of sourcing. The main finished products manufactured by third parties include certain compact fluorescent lamps, LED lamps, luminaires, and conventional as well as electronic control gears, which are acquired as part of different business models such as contract manufacturing, or as merchandise, depending on the strategy for the product in question. We also source services such as transportation of all kinds via suppliers with their own operating networks.

In fiscal 2014, the purchasing volume, i.e. the goods and services acquired from third parties, amounted to around €2.9 billion (previous year: around €2.8 billion).

The most significant countries in terms of purchasing volumes in fiscal year 2014 were Germany, China, Malaysia, and the United States of America. Approximately one third of the total purchasing volume is sourced in emerging markets.

Additionally our own manufacturing activities are a mainstay of our business activity. Our production expertise is based on longstanding experience and consistent development of our footprint. As of September 30, 2014, OSRAM operated 33 production sites in 14 countries. The production sites are located mainly in Europe, the Asia-Pacific region, and North America.

Important locations and additional procurement information can be found in our > Annual Report 2014, p. 41 (104 in whole pdf), and section "Procurement", p. 89 (152 in whole pdf), as well as www.osram.com/supplier.

G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including: • Changes in the location of, or changes in, operations, including facility openings, closings, and expansions. • Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for

private sector organizations). • Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers,

including selection and termination.

The technology shift toward semiconductor technology is radically altering our business environment. The way in which electric light is produced is undergoing fundamental change and opening up new technical opportunities in terms of color, dynamics, miniaturization, application integration, longevity, and energy efficiency. We talk about the lighting market experiencing a transformation towards semiconductor-based lighting. Since the first quarter of fiscal 2012 we are also actively driving forward this transformation within OSRAM using OSRAM Push, our enterprise-wide, comprehensive, continuous improvement program. The program encompasses all of the projects and measures triggered by the technology shift and the associated realignment of OSRAM’s portfolio, organization, processes, and business culture. In addition, OSRAM Push addresses further structural and operational measures designed to improve productivity across all segments.

As of September 30, 2011, OSRAM had 43 production locations, eleven of which were due to be discontinued by the end of fiscal 2014.

In May 2014, we opened our LED assembly plant in the Chinese city of Wuxi, where LED chips are mounted onto housings. It is anticipated that up to 2,100 people will be employed at the new plant, which will have an annual output of several billion LEDs.

For information regarding the size, structure and ownership please see our > Annual Report 2014:

• "Group Structure and Business Activities", p. 40 et seq. (101 et seq. in whole pdf) • "OSRAM Push", p. 48 et seq. (111 et seq. in whole pdf)


http://www.osram.com/supplier



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In fiscal 2014 there were no significant changes in share capital structure and other capital formation as well as in our supply chain. See our > Annual Report 2014, "Shareholder Structure", p. 14 et seq. (77 et seq. in whole pdf) and section "Procurement", p. 89 (152 in whole pdf).

G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.

We use systematic risk and opportunity management to identify, assess, and manage risks and opportunities and constantly enhance and adapt it to new circumstances in light of the changing global environment and the modified corporate structure. Due to its significance for decision-making and business processes, our risk and opportunity management system is implemented in all organizational hierarchies and lines of responsibility. We use a coordinated set of risk management and control systems which support us in the early recognition of developments jeopardizing the continuity of OSRAM’s business and in implementing the necessary measures.

The Supervisory Board’s Audit Committee is responsible for monitoring the effectiveness of these systems. Group Internal Audit also includes compliance with the corporate policies regarding risk management in its annual audit plan of selected entities. The findings of these audits are taken into account in the continuous improvement process for our risk and opportunity management system. This ensures that the Managing Board and Supervisory Board are fully and promptly informed of material risks and opportunities.

Our risk and opportunity management system is based on a comprehensive, interactive, and management-oriented Enterprise Risk Management (“ERM”) approach and builds on the worldwide accepted “Enterprise Risk Management - Integrated Framework” developed by the “Committee of Sponsoring Organizations of the Treadway Commission” (“COSO”).

For details please see our > Annual Report 2014, "Risks and Opportunities Report on Risks and Opportunities", p. 100 et seq. (163 et seq. in whole pdf). General information regarding our risk management can be found on our company website http://www.osram-licht.com/corporate_governance/risk_management/.

Our corporate responsibility for sustainable development is an integral part of our strategy. Organizationally, the interdisciplinary topic of sustainability is directly anchored with managing board via the Chief Sustainability Officer.

The tasks to be performed and the focus issues are developed and prepared by the relevant department - the Sustainability Office - together with the responsible specialists, and presented and discussed on the Sustainability Council. The latter approves the proposed resolutions on sustainability to be submitted to the Managing Board. As a result of the going public, the Sustainability Council has been reorganized and already convened in its new constellation in fiscal 2014. Please see www.osram.com/sustainability-management.



http://www.osram-licht.com/corporate_governance/risk_management/

http://www.osram.com/sustainability-management


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G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

• OSRAM joined the > UN Global Compact in 2005. • As described in our > Business Conduct Guidelines we support the requirements of and therefore expect our

employees, suppliers and business partners around the globe to recognize and apply particularly the standards of the:

Universal Declaration of Human Rights (1948) and European Convention for the Protection of Human Rights and Fundamental Freedoms (1950)

ILO (International Labor Organization) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (1977) and ILO Declaration on Fundamental Principles and Rights at work (1998) (specially with following issues: elimination of child labor, abolition of forced labor, prohibition of discrimination, freedom of association and right to collective bargaining)

OECD Guidelines for Multinational Enterprises (2000)

“Agenda 21” on Sustainable Development (final document of the basic UN- conference on environment and development, Rio de Janeiro (1992))

UN Convention Against Corruption (2005) • We work with UNEP’s public-private partnership initiative, > en.lighten, to promote more efficient lighting. • OSRAM joined 2012 the > Global Lighting and Energy Access Partnership (Global LEAP), sharing knowledge

and best practices under principles that encourage self-sustaining commercial markets for energy access solutions, with focus on energy-efficient off-grid lighting.

• OSRAM is member of the European School of Management and Technology (ESMT) and participates in its Sustainable Business Roundtable (SBRT)

• OSRAM is signatory of the > Charta der Vielfalt (Diversity Charter)

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: Holds a position on the governance body Participates in projects or committees Provides substantive funding beyond routine membership dues Views membership as strategic This refers primarily to memberships maintained at the organizational level.

At the organizational level OSRAM participates in the below listed initiatives. On regional level, there are additional initiatives.

• Zentralverband Elektrotechnik- und Elektronikindustrie e.V. (ZVEI), Germany

• Middle East Lighting Association (MELA), Dubai

• National Electrical Manufacturers Association (NEMA), Arlington Virginia, USA

• LightingEurope, Brussels, Europe • China Association of Lighting Industry (CALI), China

NEMA, MELA, CALI are also members of the Global Lighting Association (GLA), and OSRAM supports the establishment of new associations such as for the ASEAN region.

Information can also be found in our > Annual Report 2014, "Structure and Business Activities", p. 46 (109 in whole pdf) and section "Social commitment", p. 94 (157 in whole pdf).

Additionally OSRAM is applying its expertise in the off-grid sector, to help expand the > Global Off-Grid Lighting Association (GOGLA).

http://www.osram.com/cop

http://www.osram.com/bcg

http://www.osram.com/enlighten

http://www.globalleapawards.org/

http://www.charta-der-vielfalt.de/unterzeichner/unterzeichner-der-charta-der-vielfalt/zeige/osram-licht-ag.html


http://global-off-grid-lighting-association.org/

http://global-off-grid-lighting-association.org/


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Identified Material Aspects and Boundaries

G4-17 a. List all entities included in the organization’s consolidated financial statements or equivalent documents. b. Report whether any entity included in the organization’s consolidated financial statements or equivalent

documents is not covered by the report.

a) OSRAM’s consolidated financial statements for fiscal 2014 include OSRAM Licht AG and its direct and indirect subsidiaries. Subsidiaries are companies whose operating and financial policies OSRAM can control. Control is generally conveyed by ownership of the majority of voting rights. Associates are included using the equity method of accounting. Companies in which OSRAM has joint control are also included using the equity method.

See our > Annual Report 2014, "Consolidated Financial Statements", p. 119 et seq. (182 et seq. in whole pdf) b) All entities included in the organization’s consolidated financial statements are also covered by this report. If data are only available for certain entities, this will be stated.

G4-18 c. Explain the process for defining the report content and the Aspect Boundaries. d. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

This OSRAM Sustainability Report 2014 shows the conclusion we have reached as a result of our deliberations and gives an overview of our activities and successes in 2014. In fiscal 2014 we launched a cross-functional and cross-divisional multi-stage materiality process (see www.osram.com/materiality). As the process is ongoing and as we aim to report in a timely manner, we decided to use as reporting basis for this year’s report the sustainability related material aspects from our Annual Report 2014, which reflect the organization’s significant economic, environmental, and social impacts for fiscal 2014.

G4-19, G4-20, G4-21 List all the material Aspects identified in the process for defining report content. For each material Aspect, report the Aspect Boundary within the organization, as follows: • Report whether the Aspect is material within the organization • If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the

following two approaches and report either:

The list of entities or groups of entities included in G4-17 for which the Aspect is not material or

The list of entities or groups of entities included in G4-17 for which the Aspects is material Report any specific limitation regarding the Aspect Boundary within the organization For each material Aspect, report the Aspect Boundary outside the organization, as follows: • Report whether the Aspect is material outside of the organization • If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for

which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified

• Report any specific limitation regarding the Aspect Boundary outside the organization

The following table shows which material aspects and indicators are covered in this report.

Material Aspects and Indicators

Category: Economic

Economic Performance

G4-EC1: Direct economic value generated and distributed

G4-EC2: Financial implications and other risks and opportunities for the organization's activities due to climate change


http://www.osram.com/materiality


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Category: Environmental

Materials G4-EN2: Percentage of materials used that are recycled input materials

Energy G4-EN3: Energy consumption within the organization

G4-EN6: Reduction of energy consumption

Water G4-EN10: Percentage and total volume of water recycled and reused

Emissions G4-EN15: Direct Greenhouse Gas (GHG) emissions (Scope 1)

G4-EN16: Energy indirect Greenhouse Gas (GHG) emissions (Scope 2)

G4-EN19: Reduction of Greenhouse Gas (GHG) emissions

Effluents and Waste G4-EN23: Total weight of waste by type and disposal method

Products and Services

G4-EN27: Extent of impact mitigation of environmental impacts of products and services

G4-EN28: Percentage of products sold and their packaging materials that are reclaimed by category

Supplier Assessment for Labor Practices

G4-EN32: Percentage of new suppliers that were screened using environmental criteria

Category: Social

Sub-Category: Labor Practices and Decent Work

Occupational Health and Safety

G4-LA6: Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Supplier Assessment for Labor Practices

G4-LA14: Percentage of new suppliers that were screened using labor practices criteria

Sub-Category: Human Rights

Supplier Human Rights Assessment

G4-HR10: Percentage of new suppliers that were screened using human rights criteria

G4-HR11: Significant actual and potential negative human rights impacts in the supply chain and actions taken

Sub-Category: Society

Anti-corruption G4-SO3: Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

G4-SO4: Communication and training on anti-corruption policies and procedures

Compliance G4-SO5: Confirmed incidents of corruption and actions taken

Sub-Category: Product Responsibility

Customer Health and Safety

G4-PR1: Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

Product and Service Labeling

G4-PR5: Results of surveys measuring customer satisfaction

Additional material aspects, which are crucial for OSRAM, are Innovation Management and Quality. They are key driver in safeguarding OSRAM’s medium- and long-term economic, environmental and social sustainability.


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G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

As of this year, we report in accordance with the GRI G4 “Core” standard for the first time. In our GRI G3 Reports OSRAM was a 100 percent subsidiary of the SIEMENS AG. OSRAM Licht AG was spun-off from Siemens AG on July 5, 2013.

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

As of this year, we report in accordance with the GRI G4 “Core” standard for the first time. No significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.

Our most important stakeholder groups are: • Employees • Customers and consumers • Shareholders and capital market • Suppliers • Politics and Society Please see additional information regarding Stakeholder Dialogue on our company website www.osram.com/stakeholder

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

Acting sustainably as an international company requires the constant engagement with all different internal and external stakeholders. Such behavior is essential to establish mutual trust, contribute to spreading sustainable concepts, and receive feedback about our own actions.

http://www.osram.com/


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G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Our stakeholders have diverse interests in and concerns with regard to us. Topics such as employee satisfaction, environmental protection, social aspects, also in our supply chain, and economic performance are only some examples. We want to understand and respond to our stakeholders’ interests by engaging in issue-specific dialogues and activities. Employees: We conduct e.g. global employee surveys, 360-degree feedback sessions, Townhall Meetings. Customers: Beside direct contact via different channels, we e.g. carry out annual surveys of a

representative group of customers for calculating the Net Promoter Score (NPS). Shareholders: Our Investor Relations team and the Executive Board e.g. conduct one-to-one meetings,

investor road shows, quarterly earnings calls, and our annual general meeting; the Investor Relations team also engages in collaboration with the Corporate Sustainability Office with the sustainable investment community.

Suppliers: We e.g. hold Supplier Days to create and ensure a common understanding. Politics, Society: We are in dialogue e.g. by individual meetings or participation in conferences. One concrete

example is our membership of the United Nations Environment Programme’s en.lighten initiative, a public-private partnership to promote more efficient lighting.

We plan to engage external stakeholders specifically for our next S Report.

G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. There are various topics that we discuss with stakeholders in different ways, so as to respond to their concerns. Examples are the risks and opportunities of the transformation of the lighting market towards semiconductor-based lighting technology. We are systematically addressing this e.g. through OSRAM Push, our Company-wide, comprehensive, continuous improvement program to adapt business processes. See also our > Annual Report 2014, "OSRAM Push", p. 48 et seq. (111 et seq. in whole pdf).

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided.


G4-29 Date of most recent previous report (if any).

As of this year, we report in accordance with the GRI G4 “Core” standard for the first time. Our most recent GRI G3 Report was published 2011.

OSRAM´s Annual Report 2014 (including sustainability information and financial statements) was published in December 2014, our most recent UNGC Communication on Progress 2014 in January 2015.

G4-30 Reporting cycle (such as annual, biennial).

OSRAM has an annual reporting cycle.




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G4-31 Provide the contact point for questions regarding the report or its contents.

[email protected]

G4-32 a) Report the ‘in accordance’ option the organization has chosen. b) Report the GRI Content Index for the chosen option (see tables below). c) Report the reference to the External Assurance Report, if the report has been externally assured. GRI

recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.

a) We have chosen the G4 “Core” option. b) The GRI Content Index can be found at the end of this document. c) Our Annual Report is externally assured. The OSRAM Sustainability Report 2014 is not externally assured. G4-33 a) Report the organization’s policy and current practice with regard to seeking external assurance for the report. b) If not included in the assurance report accompanying the sustainability report, report the scope and basis of

any external assurance provided. c) Report the relationship between the organization and the assurance providers. d) Report whether the highest governance body or senior executives are involved in seeking assurance for the

organization’s sustainability report.

a) – d): External assurance of our Sustainability Report is currently not in scope.

Governance

G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

OSRAM Licht AG is governed by the Aktiengesetz (AktG - German Stock Corporation Act) and thus has a dual board system, comprising a Managing Board and a Supervisory Board. The Supervisory Board has formed the Executive Committee, Nomination Committee, Strategy and Technology Committee, Mediation Committee, Audit Committee. The Audit Committee reviews issues relating to sustainability. For details please see our > Annual Report 2014, “Corporate Governance Report”, p. 18 et seq. (82 et seq. in whole pdf) and the section “Corporate Governance” on our Investors Relation website www.osram-licht.com. Organizationally, the interdisciplinary topic of sustainability is directly anchored with managing board via the Chief Sustainability Officer. Please see details > Annual Report 2014, p. 86-87 (149-150 in whole pdf) and www.osram.com/sustainability-management.






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Ethics and Integrity

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

Along with our brand and strategy, corporate culture is an integral part of the OSRAM identity. The "Innovative – Respectful – Entrepreneurial" corporate values define our understanding of how we should interact with each other and with others. They are reflected in our daily behavior and in facts and figures that define OSRAM as a business. For us, being innovative means to contribute to social responsibility by making our products more energy-efficient. Our value "Respectful" stands inter aliafor our careful use of resources and which governs our dealings with colleagues, customers, suppliers, investors, and the public. We promote the ability to think as entrepreneurs among all our employees and managers, which motivates us to always give our best to create added value for all stakeholders. The framework of our sustainability actions consists – beside the OSRAM identity – of our OSRAM Business Conduct Guidelines (> BCGs). This corporate code of conduct defines group wide rules, covering the areas of human rights, labour, environment, and anti-corruption. It combines important international standards (e.g. Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at work, “Agenda 21” on Sustainable Development, UN Convention Against Corruption) and clearly summarizes our basic values. Our concise > Code of Conduct for Suppliers forms the foundation along with our own Business Conduct Guidelines. It combines the most important international standards and conditions and clearly summarizes our basic values.




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II. Specific Standard Disclosure

Category: Economic (EC)

G4-DMA EC Disclosures on Management Approach (DMA) for Economic

The economic component of OSRAM’s sustainability approach comprises aspects such as responsible and legally compliant management, Risk-, Innovation-, Customer Relationship- and Supplier Management. As OSRAM is synonymous with innovative, tailor-made products and solutions that are extremely high quality and reliable, Quality Management is also crucial for OSRAMs sustainable economic performance. We aim to consistently make the most of the business opportunities that arise while managing risks. Our strong position in the lighting market and our profound knowledge of, and many years’ experience in, electrical lighting are the strengths on which we want to build our longterm success in the lighting business. The challenges presented by the market shift toward semiconductor-based lighting are unprecedented in the lighting industry. At the same time, new opportunities are emerging to capture new business areas and gain competitive advantages. OSRAM addressed the technology shift toward semiconductor technology, which is radically altering our business environment, with its enterprise-wide, comprehensive, end-to-end continuous improvement program, “OSRAM Push”. It is driving forward the culture change, enabling the necessary cost improvements and restructuring measures, and paving the way for new business growth. Overall, it aims to make OSRAM’s offerings more sustainable. The program’s focus areas are corporate culture, optimization of the operational business, structural adjustments, process improvements, and profitable growth. By systematically continuing OSRAM Push, we are flexibly and resolutely positioned to adapt to market changes, while at the same time making the most of the opportunities offered by innovative products and solutions and new business models. The first phase of the OSRAM Push program, which commenced in 2012, was successfully completed on schedule in fiscal 2014. However, OSRAM Push is a continuing improvement program that, in light of recent market developments and the accelerating pace of transition, will enter a second phase (2015 - 2017). See also our > Annual Report 2014, "OSRAM Push", p. 48 et seq. (111 et seq. in whole pdf). For our Risk and Opportunity Management please refer to our > Annual Report 2014, "Risk and Opportunity Management System", p. 100 et seq. (163 et seq. in whole pdf) and also our corporate > Investor Relation website. Details regarding the economic aspect of sustainability at OSRAM can be found on our corporate website www.osram.com/economic.

Aspect: Economic Performance

G4-EC1 Direct economic value generated and distributed.

For our economic value generated and distributed please refer to our > Annual Report 2014: • Revenue and operating costs, "Consolidated Statement of Income", p. 120 (183 in whole pdf) • Personnel Costs, Note 35 “Personnel Costs”, p. 183 (246 in whole pdf) • Payments to providers of capital, section “Dividend payout ratio”, p. 84 (147 in whole pdf)

G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

According to studies by the United Nations Environment Program (UNEP), artificial lighting consumes around 15% of total electricity production worldwide and accounts for approximately 5% of global primary energy use. This means that our product portfolio is a highly effective lever for combating climate change. The technology shift towards LED lighting, in which OSRAM is an active player, is helping to bring about a transition to energy-efficient lighting that offers one of the most rapidly implementable ways to lower CO2 emissions.




http://www.osram.com/economic



17

OSRAM will align with the ambitious EU 20-20-20 targets for its global operations, which means a 20 % absolute reduction of CO2 emissions, water consumption and waste generation by 2020 based on the 1990 values (OSRAM base year is 2006). The target for CO2 is a 0.75% reduction of CO2 emissions per year. Please see additional information on our corporate website www.osram.com/climate-strategy and in our > Annual Report 2014.

Indicators added by OSRAM

As mentioned before Innovation Management and Quality are key drivers in safeguarding OSRAM’s economic sustainability. Our brand promise for fiscal 2014 was “Innovation & Quality”. We believe that the ability to innovate is an opportunity and that our combined know-how in the areas of traditional and LED technology, together with our deep understanding of lighting applications, will be important success factors in our transition to LED products. Innovation Management: Research and Development (R&D)

Research and development expenses amounted to €331.4 million in fiscal 2014 (previous year: € 341.2 million). At 6.4%, R&D intensity (the ratio of research and development expenses to consolidated revenue) remained on a par with the previous year’s figure (6.5%), which was negatively impacted by transformation costs to a much greater extent. In fiscal 2014, LED products accounted for around 75% (fiscal 2013: approx. 62%) of our R&D expenses. The number of employees in R&D was around 2,400 as of September 30, 2014 (previous year: approx. 2,500). Please see our > Annual Report 2014, "Opportunities", section “Expertise along the entire value chain”, p. 106 (169 in whole pdf) and “Research and Development”, p. 87-89 (p. 150-152 in whole odf). Quality

OSRAM is synonymous with innovative, tailor-made products and solutions that are extremely high quality and reliable. To continue meeting these requirements while product complexity is increasing and product development cycles are shrinking, we rely on our “Quality First” culture. All manufacturing sites have ISO 9001 certification, underlining our efforts towards achieving high standards. In addition, those sites that supply automotive customers meet the strict requirements of the ISO TS 16949 quality management standard for the automotive industry, and in fiscal 2014 their certification was renewed. Please see our > Annual Report 2014, section "Quality", p. 89 (152 in whole pdf) and www.osram.com/quality.

Category: Environmental (EN)

G4-DMA EN Disclosures on Management Approach for Environmental

Ecological factors are very important to us as a global manufacturing company. For OSRAM, environmental protection includes a sustainable approach to energy saving, water conservation, waste disposal and chemicals, as well as monitoring emissions. In addition, great importance is placed on environmentally friendly design and product recycling. We have established environmental policies, guidelines, and targets that are mandatory for all operating sites worldwide. Responsibility for environmental protection at OSRAM lies clearly with company management and is supervised by the EHS department which handles company-wide coordination and continued development. At individual plants, managers and their department heads are responsible for practical implementation. The plants receive support and advice from our environmental experts on energy, water, waste, chemicals, and air pollution. In order to monitor continuously how well we are implementing our environmental policies and meeting our targets, we have established an organization with clearly defined areas of responsibility and a systematic management system as prescribed by the international ISO 14001 standard, including the collection from all OSRAM plants and compiling comprehensive reports. OSRAM’s matrix certificate was renewed in August 2014 following an external audit. The certificate covers all production sites worldwide and is valid until the end of 2016.

http://www.osram.com/climate-strategy





http://www.osram.com/quality


18

You can find our corporate Environmental, Health and Safety (EHS) policy and further details on our company website www.osram.com/environmental as well as in our > Annual Report 2014, "Ecological Aspects", p. 90-92 (153-155 in whole pdf).

Aspect: Materials

Aspect-specific DMA guidance for Materials

As a producing company, we use materials for our products, for packaging and to facilitate processes. We assume product responsibility and develop, manufacture and market our products in accordance with principles that ensure customer safety and do not endanger the environment. We avoid waste wherever possible. Our lamps only contain a minimum amount of environmentally damaging substances and we do not use unnecessary packaging materials. We continuously work on improving our products to make them as recyclable as possible. When developing new products, we reduce the amount of harmful substances or, if possible, completely replace them with harmless substances. We aim to reduce the mercury content in all our products to the lowest amount technically possible. Therefore, we are constantly improving our product and production technology and we are continually upgrading our existing production facilities to implement such technologies. Our approach is going beyond legal requirements, such as the European RoHS-Directive. We use environmental product declaration as a transparent method to communicate our committment to sustainability. For business customers, understanding the environmental impact of sourced inputs enables the overall environmental footprint of products or processes to be measured and for a thorough life-cycle assessment to be conducted. Please see our > Annual Report 2014, section "Packaging" and “Product responsibility”, p. 92 (155 in whole pdf) as well as www.osram.com/sustainability-criteria.

G4-EN2 Percentage of materials used that are recycled input materials.

The design process, which includes ideas for packaging, makes a significant contribution to waste prevention early on. OSRAM has clear guidelines for the design and procurement of packaging. Packaging should be made from environmentally sustainable materials that can be easily recycled or disposed of. In addition, its volume and weight should be limited to the amount required to protect the contents. This means, that for the majority of our products, folding boxes are used for primary packaging and corrugated cardboard boxes for shipment packaging. The cardboard and paper used to produce these packaging components had a recycled content of between 70% and 90% in fiscal 2014. Various recycling procedures have been established for the reuse of LED and discharge lamps for both stationary and mobile operations. These procedures aim at neatly separating the components of the lamps and reusing the remaining material wherever possible. Clean glass is used for the production of new lamps and mixed glass is recycled with other glass. Metal parts go into metal recycling and plastics are mainly recycled thermally. Phosphors are blown out or rinsed out and can be used for industrial processes. This is how more than 90% of raw lamp materials is reused. Information are also provided in our > Annual Report 2014, section "Packaging", p. 92 (155 in whole pdf) and on our corporate website www.osram.com/packaging as well as www.osram.com/recycling.

http://www.osram.com/environmental



http://www.osram.com/sustainability-criteria


http://www.osram.com/packaging

http://www.osram.com/recycling


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Aspect: Energy

Aspect-specific DMA guidance for Energy

Within our production processes primary energy use still plays a significant role that again leads to direct CO2 emissions. In order to comprehensively address the issue of energy consumption and Greenhouse Gas (GHG) emissions in our own production facilities, we use our EHS policy, set internal targets, and monitor the achievements by our Environmental Management System. For enhancing our approach and for identifying all potential savings, OSRAM initiated a special project at the start of fiscal 2013: We established a global Energy Efficiency Project with expert teams in all sites in order to enhance energy efficiency through systematic implementation of appropriate measures. All factories have been assigned individual reduction targets for related emissions that need to be met by the end of the current fiscal year. We are also implementing an Energy Management System (ISO 50001) at all our German production sites, which amount to about 50% in terms of energy costs. Please see also our > Annual Report 2014, section "Energy and Climate", p. 91 (154 in whole pdf).

G4-EN3, G4-EN6 Energy consumption within the organization. Reduction of energy consumption.

Measures introduced reduced primary energy consumption OSRAM-wide to 4,226,300 GJ (gigajoules) in fiscal 2014 compared with 4,461.486 GJ in the previous year. Beside our Annual Report, please see our corporate website www.osram.com/environmental-management. Within the link “Environmental Data” you can find actual numbers.

Aspect: Water

Aspect-specific DMA guidance for Water

In the production of lighting products water is mainly needed for cooling processes, and thus hardly polluted. But for OSRAM it is still of great importance to use water responsibly and committed itself in its guidelines to manage water and other precious resources sustainably. Thus we make sure to either clean polluted water ourselves or redirect it to local sewage plants. Furthermore we consider the scarcity of this precious resource in all our production processes and monitor our water usage. The adaptation of water management to the local availability of water is of great importance to OSRAM. For this reason we keep an extra eye on those production sites that are located in areas of water stress or scarcity. There we place a special focus on continuously monitoring and improving our production processes to make them ever more water-efficient, and thus more economical as well as ecological. Many OSRAM production sites have taken steps to use the most environmentally advanced production techniques that reduce the usage of water to a minimum. You can find examples on our website www.osram.com/factories. Please see our corporate website www.osram.com/water and our > Annual Report 2014, section "Water", p. 91 (154 in whole pdf).

G4-EN10 Percentage and total volume of water recycled and reused.

Over the past few years, we have recorded a reduction in absolute water consumption. In fiscal 2014, water consumption was 3,816,694 m³ (previous year: 3,955,956 m³). This represents a reduction of 139,262 m³ (3,5%) compared with the previous year. Beside the above mentioned references, please also see our corporate website www.osram.com/environmental-management. Within the link “Environmental Data” you can find actual numbers.


http://www.osram.com/environmental-management

http://www.osram.com/factories

http://www.osram.com/water





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Aspect: Emissions

Aspect-specific DMA guidance for Emissions

Please see “Aspect-specific DMA guidance for Energy” and “Aspect-specific DMA guidance for Materials” as well as www.osram.com/climate-strategy.

G4-EN15, G4-EN16, G4-EN19 Direct Greenhouse Gas (GHG) emissions (Scope 1). Energy indirect Greenhouse Gas (GHG) emissions (Scope 2). Reduction of Greenhouse Gas (GHG) emissions.

In fiscal 2014 electricity consumption was reduced to 2,887,563 GJ (previous year: 2,952,985 GJ). This directly impacted CO2 emissions, which fell to 233,891 tons (previous year: 247.597 tons) for primary energy consumption and 386.271 tons (previous year: 399.101 tons) for electricity.

Aspect: Effluents and Waste

Aspect-specific DMA guidance for Effluents and Waste

Please refer to “Aspect-specific DMA guidance for Materials”.

G4-EN23 Total weight of waste by type and disposal method.

In fiscal 2014, OSRAM produced 35,689 tons of recyclable waste worldwide (previous year: 36,784 tons) and 13,195 tons (previous year: 10,934 tons) of waste for disposal. The increase in waste for disposal was caused by changes at the recycling companies and by temporary changes in waste quantities in connection with factory closures and relocations. Please see our > Annual Report 2014, section "Waste", p. 91 (154 in whole pdf).

Aspect: Products and Services

Aspect-specific DMA guidance for Products and Services

Our products affect the environment in a variety of ways. Obviously, they are made in factories that have an environmental footprint and they significantly impact on the environment during their use. However, in order to evaluate lamps and how they actually deal with energy and resources, it is not enough just to consider single stages of their life cycle. Thus, the life cycle analysis (LCA) of a product considers the environmental aspects and potential environmental impacts of a product throughout its entire life cycle. In order to assess the environmental performance of OSRAM products, life cycle analyses of several specific products were conducted, representing certain product groups. The method for these analyses was an assessment as outlined in the international standards ISO 14040 and 14044. Apart from the primary energy consumption, the impact on the environment was evaluated in specific categories. The collection and recycling of used discharge lamps, for example, is regulated in European countries by EU Directive 2002/96/EG WEEE (Waste Electrical and Electronic Equipment) and implemented by specially established organizations, companies, and foundations. Fluorescent lamps and discharge lamps contain small amounts of mercury and valuable raw materials. LED lamps and luminaires also contain valuable raw materials, along with electronic components. This is why it is important that the products are collected and recycled or disposed of safely.

http://www.osram.com/climate-strategy



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G4-EN27 Extent of impact mitigation of environmental impacts of products and services.

We conducted life cycle analyses for certain typical products, in order to evaluate the impact of OSRAM products on the environment. The methodology used for these analyses was based on the international ISO 14040 and ISO 14044 standards. Please see our corporate website www.osram.com/lca and our > Annual Report 2014, section "Product responsibility", p. 92 (155 in whole pdf).

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category.

The aim of product recycling is to recover as many sorted materials as possible, in order to conserve limited resources and to protect the environment through the professional disposal of hazardous substances. Since 2005 we established Collection, Recycling Service Organizations together with other producers of the lighting sector within the EU to fulfill the requirements under the directive EU 2002/96/EC (WEEE) as well as 2012/19/EU (WEEE recast) and the relevant national implementations. Anticipating the issue of recycling at an early product development stage means that over 90% of OSRAM’s lamp components are recyclable. Please see our corporate website www.osram.com/recycling and our > Annual Report 2014, section "Recycling", p. 92 (155 in whole pdf).

Aspect: Supplier Environmental Assessment

G4-EN32 Percentage of new suppliers that were screened using environmental criteria.

With our systematic risk-based management approach, we ensure that suppliers meet our standards. As part of this, all applicable new suppliers must inter alia provide information on quality, product safety and environmental aspects. We expect our suppliers to comply with our Code of Conduct for Suppliers. It covers areas such human rights, labour, environment, anti-corruption, combines important international standards (e.g. Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at work, “Agenda 21” on Sustainable Development, UN Convention Against Corruption) and clearly summarizes our basic values. Over 2,800 suppliers have accepted and signed our code of conduct. This total represents 90% of the suppliers with whom we aim to sign such agreements, and also covers 93% of our purchasing volume. In addition, suppliers are required to provide relevant information about themselves, including data relating to specific criteria. .

Please see our > Annual Report 2014, section "Procurement", p. 89 (152 in whole pdf), as well as www.osram.com/supplier.

http://www.osram.com/lca


http://www.osram.com/recycling





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Category: Social Sub-Category: Labor Practices and Decent Work (LA)

G4-DMA LA Disclosures on Management Approach for Labor Practices and Decent Work

OSRAM fulfills its social responsibilities as a global enterprise. Our business culture is an integral part of our OSRAM identity, along with our brand and strategy. Our corporate values “innovative – respectful - entrepreneurial” define our understanding of how we should interact both internally and with external contacts. Strict management and the orderly documentation and monitoring of processes, equipment, methods, and procedures, together with appropriate training programs, are essential to implementing OSRAM’s commitment to providing a safe, healthy working environment for all employees and to minimizing the risk of accidents at work or of employment- related illnesses. All OSRAM employees have an obligation and responsibility to be mindful of safety at all times, wherever they are. In order to monitor ongoing compliance with our occupational safety targets, we have introduced a management system that meets the requirements of the internationally recognized OHSAS 18001 standard. Risk assessment has to be carried out for all areas of operation by the responsible line managers, supported by trained safety representatives. They assess the potential risks that may arise in each activity and propose countermeasures to reduce them. The measures are systematically announced and implemented, and regularly monitored. In addition, we have established occupational health and safety committees at all relevant sites, in accordance with local legal requirements or on a voluntary basis. Additionally to the health and safety of our employees, diversity is an important factor for OSRAM. For us diversity is creating the opportunity for employees from different cultures, and with different backgrounds, religions, genders, and skills to work together and to create competitive advantage. Our diversity program ensures that employees with the same experience and qualifications have the same career opportunities, irrespective of their personal background, gender, or nationality. The program comprises global projects, initiatives, and training programs. Using webinars that are accessible worldwide, the program aims to promote different ways of thinking, as well as greater understanding of diversity within the organization. Every year, our Women Leadership Forum offers 25 female staff from across the world the opportunity to meet male and female role models from senior management and focus on building their own leadership skills. Highly qualified specialists and managers are crucial to OSRAM’s success. Competition for qualified employees among companies that rely heavily on engineering and technology is intense. The loss of qualified employees or an inability to attract, retain and motivate highly skilled employees required for the operation, transition, and expansion of our business could limit our ability to conduct research successfully and to develop and sell marketable products. Competition for qualified personnel is particularly intense in the area of R&D, engineering, and the project business (qualified LED sales people). Succession planning, identifying and developing talent, and dedicated employee development programs are therefore a global focus. For addressing the development of our employees and talents we inter alia provide general and specific trainings, 360 degree feedback sessions, and have certain employee development programs in place, such as the Management- and Leadership Development Programs. Additional information can be found in our > Annual Report 2014, “Social Aspects”, p. 92 et. seq. (156 in whole pdf) and on our website www.osram.com/social.


http://www.osram.com/social


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Aspect: Occupational Health and Safety

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.

The effectiveness of our health and safety programs can be measured by the following relevant statistics. They encompass for OSRAM GmbH all sites in Germany, excluding affiliated companies, and for OSRAM Europe all sites in Europe, including affiliated companies and OSRAM GmbH. In comparison to previous years the numbers of occupational accidents are relatively constant within OSRAM GmbH. With eight accidents per 1000 employees in 2014 we are way below the industry average. Not only can this be explained by the intensive training that has been conducted by superiors and health and safety officers, but also by an increasing awareness of the importance of safety throughout the workforce. Improved machine safety, already during the planning and construction phase of machines, also helped to decrease incidents over the last years. Accidents like stumbling, falling or tripping as well as accidents related to internal transportation make up nearly half of all occupational accidents. Our aim is being accident-free – to this end, the accident prevention measures are constantly being improved in our plants. Above that, the OSRAM health and safety committee committed itself to intensify trainings to further reduce the frequency and severity of occupational accidents. The numbers below can also be found on our corporate website www.osram.com/hs-statistics

Occupational Accidents

Year OSRAM GmbH* OSRAM Europe*

2012 8 8

2013 10 8

2014 8 7

Occupational accidents per 1000 employees resulting in more than three lost workdays, excluding the day of accident. Off-site accidents are not included in this statistic.

Absenteeism

Year OSRAM GmbH*

2012 4.6 %

2013 4.4 %

2014 4.6 %

The development of absenteeism due to illness over the last twelve years. The total absence is shown as a percentage of the entire ordinary working hours. * OSRAM GmbH encompasses all sites in Germany, excluding affiliated companies. OSRAM Europe comprises all sites in Europe, including affiliated companies and OSRAM GmbH.


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Aspect: Supplier Assessment for Labor Practices

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria. With our systematic risk-based management approach, we ensure that suppliers meet our standards. As part of this, all applicable new suppliers must inter alia provide information on quality, product safety and environmental aspects. We expect our suppliers to comply with our Code of Conduct for Suppliers. It covers areas such human rights, labour, environment, anti-corruption, combines important international standards (e.g. Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at work, “Agenda 21” on Sustainable Development, UN Convention Against Corruption) and clearly summarizes our basic values. Over 2,800 suppliers have accepted and signed the code. This total represents 90% of the suppliers with whom we aim to sign such agreements, and also covers 93% of our purchasing volume. In addition, suppliers are required to provide relevant information about themselves, including data relating to specific criteria.

Please see our > Annual Report 2014, section "Procurement", p. 89 (152 in whole pdf), as well as www.osram.com/supplier.

Sub-Category: Human Rights (HR)

G4-DMA HR Disclosures on Management Approach for Human Rights

As a global manufacturing company with businesses worldwide and a variety of suppliers, it is important for us to address and support human rights and labor practices within our company as well as in our supply chain. Human rights and labor principles are covered by our > BCGs and the OSRAM Code of Conduct for Suppliers (> CoC). Additionally a clause in the Purchase and Order Conditions states the contractors´ obligation to respect the basic rights of its employees and to procure a safe work environment. They shall observe the prohibition of child labor according to the Declaration of the International Labour Organization on basic labor principles. Adherence is evaluated in our supplier qualification process by several tools and requested to our suppliers: supplier self-disclosures in which relevant data on corporate responsibility criteria is queried and supplier audits are carried out by an impartial external auditor on the basis of the self-disclosures and other specific risk-based criteria. Please see our > Annual Report 2014, section "Procurement", p. 89 (152 in whole pdf), as well as www.osram.com/supplier.

Aspect: Supplier Human Rights Assessment

G4-HR10 Percentage of new suppliers that were screened using labor practices criteria.

With our systematic risk-based management approach, we ensure that suppliers meet our standards. As part of this, all applicable new suppliers must inter alia provide information on quality, product safety and environmental aspects. We expect our suppliers to comply with our Code of Conduct for Suppliers. It covers areas such human rights, labour, environment, anti-corruption, combines important international standards (e.g. Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at work, “Agenda 21” on Sustainable Development, UN Convention Against Corruption) and clearly summarizes our basic values. Over 2,800 suppliers have accepted and signed the code. This total represents 90% of the suppliers with whom we aim to sign such agreements, and also covers 93% of our purchasing volume. In addition, suppliers are required to provide relevant information about themselves, including data relating to specific criteria.





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G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken.

One of the aspects of a sustainable supply chain that has gained special relevance lately is the issue of “conflict minerals”. OSRAM has a long tradition of operating business in a way that is socially and environmentally responsible. Our “Code of Conduct for Suppliers” has always required our suppliers to respect the basic human rights of employees and others, and prohibited our suppliers and their respective suppliers from being complicit in illegal and unethical conduct. However the issue of conflict minerals requires a more stringent approach covering the entire supply chain down to the very origin of these materials. For that reason, OSRAM has developed this policy to supplement our Code of Conduct for Suppliers. We have systems and processes in place to ensure accountability in our supply chain and we will improve these systems as necessary to meet new requirements. Please find our Conflict Minerals Policy on our website www.osram.com/conflictminerals

Sub-Category: Society (SO)

G4-DMA SO Disclosures on Management Approach for Society

For information regarding our Enterprise Risk Management System please refer to our > Annual Report 2014, "Risks and Opportunities Report on Risks and Opportunities", p. 100 et seq. (163 et seq. in whole pdf). General information can be found on our company website http://www.osram-licht.com/corporate_governance/risk_management/. Basically, our compliance system is designed to prevent, detect, and respond to potential violations of existing anticorruption and antitrust provisions. We address fighting corruption and the proper conduct when engaging in competition through our company wide policies, in particular our Business Conduct Guidelines and our Compliance Guideline. In addition, we made use of various IT tools to assess compliance-related risks. For example, we classify our business partners based on certain risk indicators, such as the level of corruption in the country (Transparency International TI/CPI) in which the relevant business partner operates. The Business Partner Tool supports our employees how a Compliance Due Diligence on a business partner has to be performed. We have also introduced country-specific tools addressing issues relating to giving and receiving gifts and hospitalities, sponsorships, donations, and memberships (SpoDoM-Tool). To ensure the implementation of our compliance guidelines, processes and tools multiple face-to-face and web-based trainings have been conducted, including at top management level. We keep all of our employees informed about compliance measures and new developments through information material, our intranet and via email. For reporting possible compliance violations, we rely on an anonymous whistleblower hotline (“Tell OSRAM”). Third parties can access Tell OSRAM via our company website www.osram.com/compliance in several languages. Any information will be treated confidentially. Tell OSRAM offers a secure communication platform using latest privacy technologies. Furthermore, all employees have the option to report violations to our compliance organization. We follow up on any indication of a compliance violation (investigation). Upon completion of an investigation, we propose remedies for the identified deficits and supervise their implementation. We also respond to detected misconduct with employment-law disciplinary sanctions. OSRAM has established a process regulating the handling of compliance violations to ensure appropriate disciplinary consequences. An essential part of this process is the foundation of the Corporate Disciplinary Committee (subsequently CDC). By using defined standards and uniform criteria for decision-making, the CDC ensures the right to a fair procedure treating all employees equally. Please see our > Annual Report 2014, “Compliance”, p. 87 et seq. (150 et seq. in whole pdf) and www.osram.com/compliance.

http://www.osram.com/conflictminerals






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Aspect: Compliance

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified.

All our entities are covered by our Compliance Risk Assessment (CRA). Based on a risk classification of our entities several on-site CRAs are conducted throughout the year. The regular Compliance Risk Assessment (CRA) exists of three elements: Compliance System, Antitrust Exposure Assessment, Anti-Corruption Exposure Assessment. Additionally ad hoc Risk Assessments are run for specific business topics. All findings during such assessments will be addressed and remediated immediately. The Compliance framework is also part of the regular audit approach. Audits/ are performed regularly by our Corporate Audit/RIC-Team (RIC = Risk and Internal Controls).

G4-SO4 Communication and training on anti-corruption policies and procedures.

Our BCGs are available to all employees and interested public in the internet (www.osram.com/bcg). We offer Compliance In-Person-Trainings and Web-Based Trainings. A basic In-Person Training with ground rules on anticorruption and antitrust law is a mandatory requirement for every new employee in a sensitive function. Specific In-Person Trainings need to be attended by individual groups of employees. We offer Web-Based Trainings, which aims to provide participants with an overview of global anti-corruption and competition laws, as well as to create awareness of the corresponding, specific responsibilities of every OSRAM employee. Those mandatory trainings can be assessed and completed via the OSRAM Learning Management System. Beside the training concept, a compliance communication plan is roll-out out for all entities containing measures such as brochures, posters or other means of communication.

G4-SO5 Confirmed incidents of corruption and actions taken.

In fiscal 2014, the compliance organization received a total of 71 notifications of possible compliance violations (previous year: 64 notifications). In all, 15 compliance investigations were carried out (previous year: 17), following which disciplinary steps were taken against 9 employees (previous year: 11 employees). In addition, a further 71 previous notifications (previous year: 62 notifications) were brought to a close following investigation. To enable us to detect and react appropriately to violations of existing compliance regulations, all employees and external contacts may use the “Tell OSRAM” whistleblower hotline to pass on information about potential violations to our compliance department.



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Sub-Category: Product Responsibility (PR)

G4-DMA PR Disclosures on Management Approach for Product Responsibility

Please refer to the DMA guidance for the aspect “Materials”.

Aspect: Customer Health and Safety

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement.

Please see our corporate website www.osram.com/lca and our > Annual Report 2014, section "Product responsibility", p. 92 (155 in whole pdf). We conducted life cycle analyses for certain typical products, in order to evaluate the impact of OSRAM products. The methodology used for these analyses was based on the international ISO 14040 and ISO 14044 standards.

Aspect: Product and Service Labeling

Aspect-specific DMA guidance for Product and Service Labeling

OSRAM's success is closely linked to the satisfaction of our customers. Our sales function represents OSRAM’s

face to the customer. Global sales management is centralized, whereas implementation takes place at local

level. This positioning allows us to meet our customers’ varied demands, leverage the full potential of our

brands, and react flexibly to market developments.

We use numerous measures to improve sales efficiency. For example, we have a digital CRM (customer

relationship management) system, which optimizes the customer service provided to OEMs and project

business customers in particular. In addition, we held numerous training sessions for our employees and

customers to inform them about the shift in the lighting market, familiarize them with our products, and thus

foster their long-term loyalty to OSRAM.

We have also established a global key account management team for our customer relations. In addition,

members of the Managing Board are in direct two-way contact with our customers to understand their

requirements even better.

Please see www.osram.com/crm

G4-PR5 Results of surveys measuring customer satisfaction.

Our relationships with many of our customers go back many years, and we use our Key Account Management system to systematically and continuously maintain them. OSRAM uses the Net Promoter Score (NPS), to measure customer satisfaction with our sales performance. Based on an annual survey of a representative group of customers, it reveals how likely customers are to recommend OSRAM as a supplier to other companies. In fiscal 2014, we successfully maintained our NPS results compared with our competitors at the same high level as in previous years. Please see our > Annual Report 2014, “Customer relationships and sales”, p. 90 et. seq. (153 in whole pdf).

http://www.osram.com/lca




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III. GRI Content Index 2014

Our GRI Index is based on version G4 “Core” of the international guidelines published by the Global Reporting Initiative. The table of contents below provides an overview of the reported categories.


General Standard Disclosures

Indicator Description Page Number

Strategy and Analysis

G4-1 Statement from the most senior decision-maker 03

Organizational Profile

G4-3 Name of the organization 03

G4-4 Primary brands, products, and services 03

G4-5 Location of the organization’s headquarters 03

G4-6 Number and names of countries with significant operations 04

G4-7 Nature of ownership and legal form 04

G4-8 Markets served 04

G4-9 Scale of the organization 05

G4-10 Employee breakdown 06

G4-11 Percentage of total employees covered by collective bargaining agreements 06

G4-12 Organization’s supply chain 07

G4-13 Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain

07

G4-14 Precautionary approach or principle 08

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses

09

G4-16 List memberships of associations (such as industry associations) and national or international advocacy

09

Identified Material Aspects and Boundaries

G4-17 List of entities included in the organization’s consolidated financial statements 10

G4-18 Process for defining the report content and the Aspect Boundaries and how the organization has implemented the Reporting Principles for Defining Report Content

10

G4-19 Material Aspects identified in the process for defining report content 10-11

G4-20 Aspect Boundary within the organization for each Material Aspect 10-11

G4-21 Aspect Boundary outside the organization for each Material Aspect 10-11

G4-22 Restatements of information provided in previous reports 12

G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries

12


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Stakeholder Engagement

G4-24 List of stakeholder groups engaged by the organization 12

G4-25 Basis for identification and selection of stakeholders with whom to engage 12

G4-26 Organization’s approach to stakeholder engagement 13

G4-27 Key topics and concerns that have been raised through stakeholder engagement 13

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided 13

G4-29 Date of most recent previous report 13

G4-30 Reporting cycle 13

G4-31 Contact point for questions regarding the report or its contents 14

G4-32 ‘In accordance’ option 14

G4-33 External assurance for the report 14

Governance

G4-34 Governance structure of the organization 14

Ethics and Integrity

G4-56 Organization’s values, principles, standards and norms of behavior 15

Specific Standard Disclosure

Disclosures on Management Approach (DMA) and Indicators

Description Page Number

Category: Economic (EC)

G4-DMA EC Disclosures on Management Approach for Economic 16

Material Aspect: Economic Performance

G4-EC1 Direct economic value generated and distributed 16

G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change

16-17

Indicators added by OSRAM

Innovation Management, Quality 17

Category: Environmental (EN)

G4-DMA EN Disclosures on Management Approach for Environmental 17-18

Material Aspect: Materials

G4-DMA Aspect-specific DMA guidance for Materials 18

G4-EN2 Percentage of materials used that are recycled input materials 18


30

Material Aspect: Energy

G4-DMA Aspect-specific DMA guidance for Energy 19

G4-EN3 Energy consumption within the organization 19

G4-EN6 Reduction of energy consumption 19

Material Aspect: Water

G4-DMA Aspect-specific DMA guidance for Water 19

G4-EN10 Percentage and total volume of water recycled and reused 19

Material Aspect: Emissions

G4-DMA Aspect-specific DMA guidance for Emissions 20

G4-EN15 Direct Greenhouse Gas (GHG) emissions (Scope 1) 20

G4-EN16 Energy indirect Greenhouse Gas (GHG) emissions (Scope 2) 20

G4-EN19 Reduction of Greenhouse Gas (GHG) emissions 20

Material Aspect: Effluents and Waste

G4-DMA Aspect-specific DMA guidance for Effluents and Waste 20

G4-EN23 Total weight of waste by type and disposal method 20

Material Aspect: Products and Services

G4-DMA Aspect-specific DMA guidance for Products and Services 20

G4-EN27 Extent of impact mitigation of environmental impacts of products and services 21

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category

21

Material Aspect: Supplier Environmental Assessment

G4-EN32 Percentage of new suppliers that were screened using environmental criteria 21

Category: Social

Sub-Category: Labor Practices and Decent Work (LA)

G4-DMA LA Disclosures on Management Approach for Labor Practices and Decent Work (LA) 22

Material Aspect: Occupational Health and Safety

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

23

Material Aspect: Supplier Assessment for Labor Practices

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria 24

Sub-Category: Human Rights (HR)

G4-DMA HR Disclosures on Management Approach for Human Rights (HR) 24

Material Aspect: Supplier Human Rights Assessment

G4-HR10 Percentage of new suppliers that were screened using labor practices criteria 24

G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken

25

Sub-Category: Society (SO)

G4-DMA SO Disclosures on Management Approach for Society 25


31

Material Aspect: Compliance

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

26

G4-SO4 Communication and training on anti-corruption policies and procedures 26

G4-SO5 Confirmed incidents of corruption and actions taken 26

Sub-Category: Product Responsibility (PR)

G4-DMA PR Disclosures on Management Approach for Product Responsibility (PR) 27

Material Aspect: Customer Health and Safety

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

27

Material Aspect: Product and Service Labeling

G4-DMA Aspect-specific DMA guidance for Product and Service Labeling 27

G4-PR5 Results of surveys measuring customer satisfaction 27


32

Date: September 2015

Contact Sustainability

OSRAM Licht AG Corporate Sustainability Office Marcel-Breuer-Str. 6 80807 Munich Germany

Mail [email protected] Internet www.osram.com/sustainability

OSRAM Licht AG

Germany Supervisory Board Chairman: Peter Bauer

Chairman of the Managing Directors: Dr. Olaf Berlien

Responsible acc. to German Interstate Broadcasting Agreement (§ 55 para. 2): Jan-Peter Schwartz Head Offices: Munich

Commercial Register, Munich Registration Court: HRB 201526

Tax ID number: DE 811148275

mailto:[email protected]

http://www.osram.com/sustainability-report

osram sustainability report 2014 (gri g4) - final_secured for

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