sustainability thinking pays off; new framework drives game-changing ideas

Sustainability thinking pays offNew framework drives game-changing ideas

Michael Huthart, June 17, 2015

© 2015 ADVA Optical Networking. All rights reserved. Confidential.2

Content

• Who is AVDA Optical Networking?

• CSR in ADVA pre-2014

• Get in the game ADVA!

• New Way of thinking – 10 dimension model Baseline

• Post-mortem after Baseline

• Fixing the weak spots - Stakeholders Engagement Example

• Fixing the weak spots – Circular Economy Example

• The Game Changing Challenge

• So where did we take it?

• Public recognition - rewards


ADVA Optical Networking

Richardson Atlanta Munich Meiningen Berlin Singapore Shenzhen

Headquarter

Office

Representative

Mobility Data Centers Cloud

ADVA is a global provider of fiber optic infrastructure products and services


Culture of Continuous Improvement & Growth

Our History

• Public company (FSE: ADV, TecDAX)

• Founded in 1994

Our Performance

• 19% revenue CAGR since 1994

• 2015 revenue to exceed 350M EUR

Our CIP Culture

• Rooted in TL9000 framework

• Global ISO9001 Certification (2006)

• Global TL9000 Certification (2009)

• Global TL9000 Re-Cert (annually)

• We’re constantly optimizing internally via ADVA Efficiency Engine, Lean, 6-sigma, etc

Our People

• 1498 person team at year-end 2014

Our Innovation Strength

• 700 R&D engineers (50% of staff) at year-end 2014

• up 15% per year on average over the last 4 years

Your trusted partner for speed and innovation


CSR in ADVA 2010

• We had a mix of good and bad

• We had no cohesive framework

• We had to learn to share

• We had great programs hidden

• We had no public ‘face’

wandering

no ‘face’


CSR in ADVA 2010

• By end 2010 we had a pretty good idea of what we needed to build

• It was a BIG list!

• Things like…

Building cross-functional teams

Nurture Local Volunteer’s

Developing Supplier Code of Conduct


Fast Forward to 2013 – the 5 pillars• By then our house had a foundation – the 5 pillars


Fast Forward to 2013 – huge momentum


Get in the game ADVA!

• But still, at the end of 2013 we were told to get serious about Sustainability or potentially be replaced

• While our program had matured, it still lacked structure and cohesiveness

• It was a wake-up call for ADVA – we needed a more comprehensive approach


New Way of Thinking - 10 dimension model BASELINE

• We opened our doors.

• We engaged and learned a more comprehensive approach.

• We received clear feedback on strengths and gaps.


Post-Mortem after baseline

• We didn’t have the right team – needed more horsepower and wider reach

• We had complete blind-spots

• We had to recommit ourselves to learning about blind spots and developing programs around them.


Stakeholder Engagement Example


Who are ADVA Stakeholders?

• ADVA Stakeholders

customer community employeesuppliershareholder analyst

+


How do we typically engage them?

customer

community

employee

supplier

shareholder

analyst

Customer QBR’s, Regional ADVA Symposiums, Industry Symposiums, Trade Shows, Annual CSAT Survey administered in-person, GRI Index

Local focused outreach to preferred charities, ADVA open house events at bigger sites, ADVA-driven involvement in regional environmental topics

Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, GRI Index

Supplier Lifecycle Management Process, Quarterly Business Reviews, Process Quality Audits, CSR & Sustainability Audits, GRI Index

Global Management Meeting, Quarterly Vorstand Town Hall Meetings, Workers Council, Monthly Executive Reports, Employee Sat Survey

Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, Analysts Day, GRI Index


But, Sustainability dialog has been limited

customer

community

employee

supplier

shareholder

analyst

Customer QBR’s, Regional ADVA Symposiums, Industry Symposiums, Trade Shows, Annual CSAT Survey administered in-person, GRI Index

Local focused outreach to preferred charities, ADVA open house events at bigger sites, ADVA-driven involvement in regional environmental topics

Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, GRI Index

Supplier Lifecycle Management Process, Quarterly Business Reviews, Process Quality Audits, CSR & Sustainability Audits, GRI Index

Global Management Meeting, Quarterly Vorstand Town Hall Meetings, Workers Council, Monthly Executive Reports, Employee Sat Survey

Shareholder meetings, Annual Report, Quarterly Investor Roadshow, Regional ADVA Symposiums, Analysts Day, GRI Index


Let’s change that going forward

• Develop a Strategy

• Move away from top-down towards collective voice

• Institutionalize dialog – collect the inputs and feed back


• Stakeholder announcement and Survey on Sustainability.

• Feedback to Stakeholders of aggregated results.

• Annual GRI reporting.

• External GRI assurance.

• Annual standalone Sustainability Report.

• Frequent public website updates on ‘About Us’.

Develop a Strategy on Stakeholder Engagement

• Let stakeholders know Sustainability is a strategic initiative for ADVA.

• Collect stakeholder direction how they want us to progress the topic.

• Return a readout of the consensus direction we aggregate from them.

• Show them how their direction results in future goals.

• Institutionalize collecting stakeholder direction.

• Institutionalize reporting of our results.

Stay in constant dialog with ADVA Stakeholders on how we should drive Sustainability in ADVA.

Mission

Key Objectives

Key Initiatives

Set strategic direction with the voice of the Stakeholders


Move away from top-down

customer

community

employee

supplier

shareholderanalyst

Survey 1

Survey 1a

Long-standingCSAT Survey

Long-standingEmployee Survey

Continue 1a annually

Integrate in ESS annually

Integrate in CSAT annually

Continue 1 annually


Institutionalize Dialog

• Annual CEO Statement

• Annual GRI Index

• Every-other-year GRI External Assurance

• Annual Standalone Sustainability Report

• Constant updates to public website About Us


Circular Economy Example


ADVA’s first full LCA - 2012


CE Best Practices Exposure

• ADVA sought and received training on CE Best Practices


CPMR’sRouters

Bringing to light what we were already doing

Refurbishment

• We’re taking back the BT Routers that have either been cancelled or ceased from BT.

• We wipe off circuit information, test and check operating status.

• Approx 200 units per year from one BT stock location alone.

Re-Use Olympic Refurb Project

• Program in place for the kit used in the Olympics. CPMRs and SFPs. The process offers BT…

• CPMR – Test, replace accessories, clean and test, accessories clean and/or replace.

• ADVA supplied the packaging to BT to return these units to ADVA.

• To-date we have completed 152 x CPMRs and 201 x SFPs.

• Creative Customer Programs bring value to customer and environment


Game Changing Challenge - Pitches

• Pitch 2 Radical ideas:

• 1) Network Design 2) ADVAnced Logistics

• Saw Long-term benefit Oh, let’s go do this NOW!

x-Haul

X

Y


Game Changing Challenge – Real Benefits

Real Customer Benefits

• Saves 300,000 miles/year

• Saves 13,000 hours/year

• Cuts 750 tons CO2 /year

• 300% ROI

• New chapter in our relationship


So where did we take it?

We moved from high Bronze (Red line) to high Silver (Blue line)

• Major improvements in 1 year

• Won Game Changing Challenge


Don’t be afraid to jump in – there can be a payoff!

[email protected]

Thank you

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sustainability thinking pays off; new framework drives game-changing ideas

Technology

game adva

adva pre

avda optical networking

adva efficiency engine

global tl9000 certification

blind spots

new framework drives

new way of thinking