Sustainability Report 2012

SILKA

HEBEL

STAFF

MARKET

PRODUCTS

COMPLIANCE

PROCESSES

YTONg

FERMACELL

FELS

ProTeCTProTeCT

1 Field of Action: Market) Energy Efficiency) Environmental Protection ) Quality of Life

2 Field of Action: Processes) Resource Conservation) Reduction of Energy Consumption ) Emissions Reduction ) Occupational Health, Safety and

Environmental Protection

3 Field of Action: Staff ) Training and Further Education ) Support

4 Field of Action: Compliance) Compliance and Overcompliance

with Legal Standards) Occupational Health and Safety) Corporate governance

Page 36 Sustainability Strategy http://nachhaltigkeit.xella.com

XELL

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group operating figures2009 2010 2011

Turnover in € million 1,181 1,146 1,271

EBITDA norm. in € million 219 193 208

EBITDA margin norm. in percent 18.5 16.8 16.4

Staff expenses in €  million –286 –284 –299

Taxes in € million –21 –14 5

Annual net income/ loss in € million –11 –27 –23

Investments in € million 97 59 86

StaffFTE 6,813 6,747 6,946

Headcount 7,196 7,107 7,297

Energy consumption

Fuel in gWh 3,3241) 3,926 4,233

Electrical energy in gWh 3351) 399 415

C02 emissions2) in million tons 2.04 2.28 2.47

1) 2009 energy consumption does not include all plants (namely, those that were currently under construction or acquisitions).2) CO2 emission figures are only valid for Fels.

2009 2010 2011

BU Building materials

Sales volume in thousand m³ 8,444 8,473 9,205

Sales in € million 836 769 848

Staff FTE 5,296 5,216 5,332

Headcount 5,564 5,460 5,568

BU Lime

Sales volume in thousand tons 4,694 4,919 5,489

Sales in € million 216 240 268

StaffFTE 974 976 1,014

Headcount 1,061 1,062 1,094

BU Dry lining

Sales volume in thousand m2 29,820 31,279 33,627

Sales in € million 169 185 208

Staff FTE 543 555 600

Headcount 571 585 635

Management 2 Prolog

Brands 8 Xella10 Ytong12 Silka14 Hebel16 Fermacell18 Fels

Protect20 Reports

Strategy and Management36 Sustainability Strategy

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Use the key figures search at http://nachhaltigkeit.xella.com to retrieve all articles in this report as well as to find out additional information.

Contents

The Protect info boxes contain additional information about Xella’s sustainability strategy, covering topics such as protagonists, projects, or products. The Protect info boxes can be found on the title page as well as in the Sustainability Report starting from page 20.

Sustainability Program

ProTeCT

Fields of Action42 Market50 Processes60 Staff68 Compliance70 Corporate Citizenship

74 GRI Index

80 glossary82 Company Information

XELL

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UP

Building Materials

) Autoclaved aerated concrete (AAC)) Calcium silicate blocks ) Mineral insulation boards) Panels (Prefabricated compound units)

Business Units

About the Xella GroupXella produces and sells building materials, gypsum-bonded and cement-bonded dry lining boards as well as lime and limestone. Our company was founded in 2002 with the merger of Duisburg’s Haniel Bau Industrie gmbH, Munich’s Ytong Holding Ag, and goslar’s Fels-Werke gmbH. Since 2008 PAI Partners and goldman Sachs Capital Partners have shared equal ownership of the Xella group, with an additional 92 managers holding shares in the company as of December 31, 2011, thanks to a management partnership program.

With its Ytong, Hebel, and Silka brands, Xella is the world’s largest manufacturer of autoclaved aerated concrete and calcium silicate blocks. Fermacell is among the leaders in high-quality dry lining solutions and Xella’s Fels brand is one of Europe’s major providers of lime and limestone. By playing an important role in the construction of energy-efficient, high-quality buildings, Xella products make a contribution to environmental protection and resource conservation. As one of the few building materials companies in Europe, Xella has its own Research and Development Center. The center focuses on the areas of product and process research, applied research, and construction physics.

In 2011, the company and its 7,297 employees generated total turnover of EUR 1.3 billion. Our 90 company-owned plants and 30 sales and marketing organizations extend from germany to Mexico, and China.

Page 10

www.ytong-silka.de | www.hebel.de

Dry Lining

) gypsum fiber boards) Cement-bonded dry lining boards) Fire protection boards

Lime

) Lime) Limestone

Page 18

www.fels.de

Page 16

www.fermacell.de | www.aestuver.de

7 Xella Sustainability Report 2012Xella Sustainability Report 2012 8Management PrologManagement Prolog

A Solid Foundation Sustainability in the Xella group

Dear readers,

You have in front of you the Xella group’s very first sustainability report. In this report we will introduce you to our understanding of sustainability practices as well as tell you about our endeavors and achievements in the fields of resource conservation, energy saving, and climate protection. Our commitment to our staff and society will also be explained.

Business success isn’t possible without responsible corporate governance. For us, sustainability isn’t a merely buzzword. For decades, we have been dedicated to climate and environmental protection – as a manufacturer of natural and energy-efficient building materials; as a producer of lime (traditionally used in large quanti-ties in environmental protection); and as a research-based company that keeps setting itself new, high goals for developing better methods and materials.

Although Xella itself may be a young company, which was founded in 2002 with the merger of Duisburg’s Haniel Bau Industrie gmbH, Munich’s Ytong Holding Ag, and goslar’s Fels-Werke gmbH, the companies belonging to the Xella group can look back on decades of tradition and experience: The manufacture of calcium silicate blocks, Ytong autoclaved aerated concrete, and Hebel assembly components date back to the early twentieth century, the production of Fermacell gypsum fiber-boards began in seventies, and the Fels-Werke roots go back to the thirties. Since then, a constant string of new, innovative developments and breakthroughs has formed the backbone of the Xellas’ success.

Over the past few years, we’ve set our business focus on the following areas: For one, we have increased the insulating properties of our products, especially of AAC, which can be easily used to build energy-efficient buildings. We have optimized our processes and taken steps to ensure more efficient use of energy. At the same time, the improvement of the quality of life which can be achieved in the field of housing through our products, has been an integral part of our business activities. With our products and methods, we want to contribute to a sustainable way of living. For us, this means we have to continuously optimize our manufactur-ing processes in terms of their energy consumption and raw materials use, while also ensuring that our products are made to be increasingly sustainable in their application.

| 1Oliver Esper (CTO)Heiko Karschti (CFO)

Jan Buck-Emden (CEO)

ProLoG

Positioning

When it comes to sustainability, Xella is committed to target-driven innovations and permanent process optimization, especially in terms of resource con-servation, energy consumption, and emissions reduction. Our understanding of sustainability also includes occupa-tional health, safety and environmental protection.

Jan Buck-Emden

“Through our products, we create values for our customers that last for generations. For us, acting in a sustainable manner means assuming responsibility.”

Heiko Karschti

“Our sustainable corporate focus is a decisive contribution towards securing the future and the company’s profitable growth.”

Oliver Esper

“We will continue to optimize our production processes in terms of minimum resource consumption, energy efficiency, occupational safety, and environmental protection.”

4 Xella Sustainability Report 2012Xella Sustainability Report 2012 5

New buildings made from Xella building materials, e.g. with the innovative Ytong Energy+ block in Denmark, are leading the way in energy efficiency. Build-ing refurbishment and interior construction with Xella products, such as Ytong Multipor mineral insulation boards or toxin-eliminating Fermacell greenline gypsum fiberboards, make a valuable contribution to healthy living and have been proven to increase residents’ well-being. For highly specialized applications, such as fire protection, we also have a wide range of solutions on offer. Fermacell Aestuver fire protection boards which are well suited for securing evacuation and escape routes as well as for the construction of tunnels are just one example to be named.

In the field of environmental applications, we help restore nature to an intact state and return essential living and recreational space to humans and animals with the natural raw material lime, which can be used, for instance, to neutralize wastewater in sewage plants or remediate polluted soil. Fels lime also helps capture acidic corrosive gases during the power plant and industrial emissions scrubbing process. In this one area alone, Fels delivers well over one million tons of high-quality lime products annually to flue gas desulfurization installations in power plants, waste incineration plants, and industrial enterprises. As a result, nature is spared approxi-mately 450 million cubic meters of acid rain every year.

Instead of simply following trends and new tendencies, we strive to create momentum for new technologies and improved standards in our areas of business. Xella is one of the few german building materials manufacturers to perform basic research. To do so, we operate our own Research and Development Center and support several research projects, all of which bolster our company’s long-term focus.

One of Xella’s noteworthy accolades includes the 2011 Deutscher Innovationspreis für Klima und Umwelt (IKU): The german Innovation Award for Climate and Environment awarded by the german Federal Ministry for the Environment, Nature Conservation and Nuclear Security and the Federation of german Industries (BDI). We received this prize for Ecoloop: A new method of producing synthesis gas from various fuels that allows energy-intensive industries to reduce their use of fossil fuels, cut energy costs, and improve their CO2 balance. The IKU is awarded for innovations that con-tribute to improving environmental protection, limiting global warming, and helping preserve the climate and the environment. Scientific evaluation was performed by the Fraunhofer Institute for Systems and Innovation Research ISI in Karlsruhe, germany.

The professional and personal development of staff members is very important for us. In addition to having a wide variety of training measures available on a decentral-ized basis, we developed the “Xella Campus” education model to offer our employees systematic, customized seminars, training events, and global development programs. All measures are combined and coordinated on an operative and strategic basis in the “Xella Campus” program. In 2011, we focused on promoting young executive talents.

Through its membership in different initiatives, we influences current discussions on the topics of energy efficiency and climate protection. We are a member of the Deutsche Unternehmensinitiative Energieeffizienz (german Industry Initiative for Energy Efficiency, or DENEFF). DENEFF is the first independent, cross-sector net-work of companies that play a pioneering role in the field of energy efficiency. As part of this initiative, we advocate the implementation of ambitious, effective policies to promote and encourage energy-efficient products and methods. Additionally, we are

involved in the Stiftung 2° foundation, which consists of different well-known german companies that have banded together to pursue long-term corporate commitment to climate protection. Our involvement here includes cooperating with members of science, society, and politics to find concrete solutions for ambitious, efficient climate protection.

We highly value the importance of operating our production locations near raw material sources and in places easily accessible and close to our customers. We produce locally in many countries around the world. This helps us keep transporta-tion distances as short as possible, thereby reducing our environmental impact. In germany, we profit from excellent conditions and a favorable legal framework that allow us to act in a sustainable manner – and require us to do so. Expanding and establishing our experiences and our high standards on an international level, particularly in emerging and developing countries, is a matter of particular concern to us. Right now, we have the unique opportunity to participate in the economic growth of the boom regions of our planet and sustainably shape fast-growing cities. Especially in the new building sector, there’s enormous potential that must be used for environmental and climate protection. We encourage our colleagues abroad to set high standards for sustainable growth and greatly value the exchange of ideas and expertise within the global Xella group. The way we see it, this is our contribution to sustainable economic and environmental development and enhancing sites in our respective countries.

Thinking and acting in a sustainable and responsible manner is essential to our industry and is the basis of our corporate policy. After all, buildings made from Xella building materials last for several generations and greatly influence human health and well-being. Our tradition and corporate culture stand for the simultaneous preservation of values and the pursuit of environmental and social progress. Since 2010, we’ve increasingly dedicated ourselves to the topic of sustainability in an even more structured manner, for example, with a wide range of internal projects, a new organizational structure that raises our sustainability efforts to a whole new level, and this first-ever sustainability report. In the future, we will fulfill our stakeholders’ wish for more transparent communication of our goals, successes, activities, and advances in the field of sustainability.

Xella owes its corporate success to its staff’s expertise and commitment. Every day, they contribute to Xella’s ability to master the challenges of the future. We would like to take this opportunity to thank them from the bottom of our hearts!

We hope you enjoy reading this report and look forward to a constructive dialog with you.

Jan Buck-Emden Heiko Karschti Oliver Esper

Management PrologManagement Prolog

6 Xella Sustainability Report 2012Xella Sustainability Report 2012 7BrandsBrands

Brands

All brands under one roof: Xella building materials were convinc-ingly used in the construction of the new headquarters building. Apart from Silka calcium silicate blocks, Ytong Multipor and Fermacell gypsum fiber board were also installed.

8 Xella Sustainability Report 2012Xella Sustainability Report 2012 9Brands Xella Brands Xella

International Activities

Xella is represented worldwide by 7,297 employees. The group has a total of 90 factories in 19 countries and has sales and marketing organizations (see map) in approximately 30 countries. With the worldwide awareness of sustainability increasing dramatically, Xella is doing its part, especially in the fast-growing economies of Eastern Europe and developing countries, to encourage responsible, sustainable growth with its highly developed, yet completely natural building materials and environmental technologies.

Factory Locations

Austria

Belgium

Bosnia and Herzegovina

Bulgaria

China

Czech Republic

germany

France

Hungary

Italy

Kosovo

Mexico

The Netherlands

Poland

Romania

Russia

Serbia

Slovakia

Slovenia

www.xella.com

www.xella.com

Silk

a

Heb

el

Ferm

acel

l

Fels

Xella

Organized in three business units, the Xella group produces and sells building materials, gypsum fiberboards and cement-bonded drywall system boards as well as lime and limestone. With its Ytong, Hebel, and Silka brands, Xella is one of the world’s largest manufacturers of autoclaved aerated concrete and calcium silicate blocks. Xella’s Fermacell brand leads the way in high-quality dry lining construction solutions, while its Fels brand is among Europe’s leading providers of lime and lime-stone. Combining know-how and experience, the Xella group continues to advance both its expertise and its products.

Innovative concepts and new system approaches propel the development of sustain-able building materials. Xella products are sustainable both in manufacture and use. By playing an important role in the construction of energy-efficient, high-quality buildings, they make a valid contribution to environmental protection and resource conservation. Thanks to these valuable qualities, our products have been bestowed with numerous awards and certifications from renowned testing institutes, trade associations, and initiatives. Xella’s commitment isn’t limited to products and processes. It goes further to include the promotion of young professionals – such as with our student competition, training center sponsorships, and continued em-ployee training – as well as supporting social projects in germany and worldwide.

At Xella’s Research and Development Center, we carry out in-depth research of innovative, sustainable products and processes. Our training centers offer Xella’s staff and external experts a wide range of seminars and training sessions with a focus on energy efficiency and sustainable building.

7,297 employees

worldwide, including 5,568 in building

materials, 1,094 in lime, and 635 in dry

lining.

90 factories

in 19 countries and sales and marketing

organizations in approx. 30 countries.

EUR 1.3 billion

in total sales in 2011.

40 employees

involved in research in the fields of con-

struction physics, applications, products,

and processes.

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10 Xella Sustainability Report 2012Xella Sustainability Report 2012 11Brands YtongBrands Ytong

Ytong

Ytong is a classic among building materials and is today synonymous with autoclaved aerated concrete. For 80 years, Ytong AAC has been manufactured industrially. All along, we’ve been able to continually improve this building mate-rial’s quality and outstanding properties. Ytong stands for highly efficient thermal insulation, optimal fire protection, and masonry with excellent load-bearing abilities. Lime, sand, cement, and water – mineral and natural raw materials – form the main ingredients of AAC. Millions of air entertainments within the white block’s interior provide it with excellent thermal insulation properities. In addition to the classic Ytong building block, we now offer Ytong Energy+ – an innovative block with outstanding thermal insulation properties – as well as the Ytong Multipor mineral insulation board for use in insulating new buildings and energy modernization. All Ytong products are 100 percent recyclable.

In the building industry, large-scale blocks made from Ytong AAC are increasingly replacing well-known small brick formats. Today, Ytong AAC can be found in a wide range of products for all sorts of walls, from easy-to-handle blocks to story-high partitioning and system wall elements.

Xella has 13 autoclaved aerated concrete factories in germany as well as 31 pro-duction facilities in 17 additional countries including Austria, Belgium, Bosnia and Herzegovina, Bulgaria, China, Czech Republic, France, Hungary, Italy, Mexico, the Netherlands, Poland, Romania, Russia, Serbia, Slovakia, and Slovenia.

0.15 W/(m2K)

is the U-value of a 40 cm-thick wall made

from Ytong Energy+ – a total of 47 percent

less than requirements set forth in

the 2009 EnEV.

1.0 l of heating oil

per m2 of wall and heating period: The

amount of energy needed to heat a building

made of Ytong Energy+, a total of 12.1 liters

less than the german average.

1m3 of raw materials

is needed to manufacture approx. 5 m3 of

AAC – an excellent raw material balance for

manufacturing building materials.

Protecting and Preserving Historic Value with Ytong Multipor

Many buildings have beautiful facades which are worth protecting. Although there might be a need to undergo energy-efficient modernization, building ex-teriors can’t just disappear under thermal insulation panels, due to building protection laws or other visual reasons. A dilemma which can be easily and discreetly solved: Ytong Multipor thermal insulation boards are mounted on the inside of the external walls and are so thin that they hardly decrease the size of rooms. Thanks to Ytong Multipor, builders can preserve valuable archi-tectural details while making an outstanding contribution to saving energy.

Ytong Energy+ Sets New Standards

The topic of energy efficiency is becoming increasingly important in the new build-ing sector. However, it’s not all just about saving money, but also about protecting the climate. One of the latest innovations, Ytong Energy+ is making a contribution to saving energy and reducing emissions that could harm our climate. In 2011, Ytong Energy+ was first launched in Denmark with much success.

Ytong Building Block System Improves Insulation

The new Ytong building block hit the market in 1960 and fundamentally changed traditional masonry techniques: The large-size blocks were more precisely measured than any other block before and, with thin bed mortar, could be used to build a nearly seamless wall. This new system improved insulation by 20 percent, made construction quicker, and reduced both subsequent energy use and construction costs.

Find out more about Ytong, Ytong Energy+, and Ytong Multipor starting on page 22.

An Invention that Paved the Way for Sustainable Building

Dramatic energy and raw material shortages in Sweden following World War I prompted the Swedish govern-ment to raise standards for thermal insulation. Its reasoning: Using less energy would free the country from its dependence on expensive imports and lead it out of the crisis. In 1923, researchers made a breakthrough when they invented a new material with excellent insulating properties – autoclaved aerated concrete. Shortly thereafter industrial production of au-toclaved aerated concrete began in the southern Swedish town of Yxhult and the innovative product was marketed globally under the brand name Ytong.

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12 Xella Sustainability Report 2012Xella Sustainability Report 2012 13Brands SilkaBrands Silka

Silka

Silka is the leading brand worldwide for calcium silicate blocks. Silka calcium silicate blocks make it possible to build slim walls that are both extremely stable and highly sound absorbent. In addition, Silka is excellent at storing heat and fulfills all current requirements for environmental protection and economy of modern buildings. The traditional and very dense, highly massive building material consists solely of natural raw materials: Lime, sand, and water.

Xella has 16 calcium silicate block factories in germany as well as 15 additional Silka factories in Belgium, China, Hungary, Kosovo, the Netherlands, and Poland. Silka calcium silicate blocks are available in various forms, from small formats to facing bricks and various ready-made large formats for fast, efficient use without the accumulation of waste material at the building sites.

For more than 110 years,

calcium silicate blocks have been industrially

manufactured and used to build homes – the

foundation of trust.

Xella’s oldest factory has been producing

calcium silicate blocks for the Berlin area for

more than 100 years.

In 2011, Silka received the Dutch Dubokeur

certificate, confirming that Silka calcium

silicate blocks are among the most

environmentally friendly building materials.

Living Healthy in Calcium Silicate Block Buildings

Sound in the form of noise is one of the few elements of structural physics occupants can directly sense. Thanks to high bulk density, Silka calcium silicate blocks are exceptionally sound-absorbent, guaranteeing a quiet, relaxing living environment.

Extensive Stability and Safety

Thanks to high pressure resistance, even the thinnest walls made of Silka calcium silicate blocks are highly resilient. Non-combustible, frost-resistant, weatherproof Silka calcium silicate blocks offer an optimal solution to ensure the stability and longevity of buildings.

Excellent Environmental Properties

Thanks to their environmental attributes and sophistication, Xella products have been awarded internationally recognized environmental certificates. One such product: Silka calcium silicate blocks. In its environmental product declaration (EPD) in accordance with ISO 14025, germany’s Institute Construction and Environment confirms that Silka calcium silicate blocks are non-toxic, release no emissions hazardous to health, and possess an excellent ecological balance.

Economical, Envi-ronmentally Friendly Manufacturing

Manufacturing calcium silicate blocks requires comparatively little energy. The production process is environmentally friendly, causes no noise pollution, and is not otherwise hazardous to health. Sand and gravel pits can be recultivated after mining or used as natural habitats or recreational areas.

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14 Xella Sustainability Report 2012Xella Sustainability Report 2012 15Brands HebelBrands Hebel

Hebel

Hebel stands for large-format prefabricated compound units and AAC panels. Hebel products are used in large-scale business construction projects such as logistics centers, warehouses, and production facilities, as well as event centers and sports halls. Building elements are delivered as modules and assembled on site. Safety is our guiding principle when it comes to business construction, as the safety of people and products is of paramount importance in this field. That’s why Hebel building ele-ments offer maximum fire protection. With 98 percent brand awareness in the target group, Hebel is, in addition to Ytong and Fermacell, one of the Xella group’s best-known brands as well as one of the strongest building material brands on the market.

Xella manufactures Hebel in germany, as well as in the Netherlands, Belgium, and Mexico.

360 minutes

and longer: The fire-resistance rating of

Hebel wall panels – an unrivaled value.

Hebel participates in projects sponsored

by the international foundation known

as myclimate – The Climate Protection

Partnership. In keeping with the principle

of “avoid – reduce – compensate”, the

foundation offers CO2 producers the

opportunity to get involved in climate

protection projects and make a contribution

to offsetting their emissions.

DgNB Member

Xella Aircrete Systems is a member of the

german Sustainable Building Council

(Deutsche gesellschaft für Nachhaltiges

Bauen, DgNB), which offers a comprehen-

sive certification system for sustainable

building in germany and abroad. One of the

first DgNB certificates went to a high-bay

ware house made from Hebel AAC.

Explosion Prevention

Large fires are often caused by explosions or can cause buildings or goods to explode, thereby increasing the risk of damage to people, the environment, and property. Explosion blast waves possess enormous destructive power and are a threat to neighbouring buildings. Massive Hebel roof panels with explosion hatches absorb explosions, protecting neighbouring buildings. AAC firewalls not only protect occupants in the event of fire or explosion inside the building, they also prevent external fires and explosions from spreading to interiors or compromising building stability – an often overlooked danger.

Summertime Insulation

A pleasant indoor climate is created through the interaction of thermal insulation, thermal storage, and permeability. Hebel building elements, with their balanced thermal storage capabilities, create a pleasant atmosphere without the need for refrigeration. Cooling buildings uses up to four times more energy than heating. Massive building materials such as AAC help save energy and protect resources by combining high temperature moderation with the ability to store both heat and cold. Up to 80 percent of heat finds its way into buildings through the roof, an effect that is often underestimated. A massive roof made from Hebel panels reduces heat and can absorb large thermal loads, which then no longer need to be conducted away with energy-consuming cooling techniques.

School gyms in Residential Neighbourhoods

Not a problem if they’re built with sound-absorbent Hebel building elements! With Hebel assembly components, it’s easy to reliably comply with require-ments for permanent airtightness of the building envelope as set forth in the 2009 EnEV, resulting in lower energy costs throughout the building’s use.

Maximum Fire Protection

Fires that start outside buildings can quickly spread to interiors. AAC external walls from Hebel protect interiors from the spread of fire. They have the same fire-resistance rating as firewalls and therefore offer the highest-possible level of protection. Complex dividing walls made from Hebel building components separate fire compartments inside the building for 360 minutes and longer. With the highest standards in fire protection and proven mounting systems, Hebel roof panels also ensure a maximum possible degree of building safety.

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16 Xella Sustainability Report 2012Xella Sustainability Report 2012 17Brands FermacellBrands Fermacell

Fermacell

For over 40 years, the Fermacell brand has stood for high-quality, environmentally friendly dry lining. As environmental awareness continues to increase, the envi-ronmental properties of gypsum building materials move more and more into the spotlight. Fermacell gypsum fiberboards are made from gypsum and fibers from recycled paper. Both these natural raw materials are mixed with water, pressed into stable boards, dried, and cut. Fermacell gypsum fiberboards are available in various forms for a wide range of uses. Whether it’s modernization or new, interior or complete wood construction: Fermacell gypsum fiberboards can be used as build-ing, wet room, or fire protection boards, making it easy to individually plan and realize every wall, ceiling, and floor project.

Fermacell also offers gypsum fiberboard innovations: Fermacell greenline, a board that binds toxins in indoor air and permanently converts them into non-toxic sub-stances, and Fermacell Firepanel A1, a fire protection board with all the well-known properties of traditional Fermacell gypsum fiberboards plus even better fire protec-tion qualities for building materials and elements.

Special for wet rooms, Fermacell has developed the cement-bonded Powerpanel product line, opening new doors for dry lining. The special material composition provides for stable construction in all areas with high waterproofing demands.

Fermacell Aestuver, one of the leading brands in glass fiber reinforced concrete (gFRC) technology, offers a wide choice of solutions for fire protection, for example, in subterranean traffic infrastructure. Aestuver fire protection boards are non-combustible, cement-bonded, lightweight gFRC boards for highly specialized applications. They are waterproof and frost-resistant, as well as extremely pressure-resistant, bend-proof, and abrasion-resistant.

All Fermacell products have been awarded

the eco-INSTITUT’s coveted seal of approval

for their high environmental sustainability

and toxicological safety.

Fermacell Line Surface Treatment and

Fermacell Powerpanel Fine Filler bear the

gEV Emicode EC1 Plus®/Emicode EC1®

seal for “very low emission” products.

Building materials with this gEV seal offer

the highest possible degree of protection

from inside air pollution.

97% supported brand awareness

in the target group in germany: Fermacell is

one of the industry’s best-known building

material brands – and nearly synonymous

with gypsum fiberboards.

Climate-Regulating Properties

In today’s day and age, environmentally friendly product composition is an important criterion for builders and architects. All Fermacell gypsum fiberboards have been tested and approved according to their building biology. These boards make an im-portant contribution to environmentally safety and healthy living. Fermacell gypsum fiberboard products are not only entirely harmless to health, but they also help create a good indoor climate. Thanks to a high proportion of macropores in the gypsum’s core, excess humidity is absorbed and released at a later time when indoor air is dry.

Neutralizing Toxins In Indoor Air

Fermacell also offers solutions for active healthy living. Toxins such as formal-dehyde and other aldehydes can frequently be found in everyday living and work-ing environments. They bear a serious risk to human health. However, there’s a surprisingly simple solution: The Fermacell greenline gypsum fiberboard with a double-sided, keratin-based coating. Easy to apply to walls, Fermacell greenline uses its air-cleaning properties to absorb toxins and neutralize them permanently.

Find out more about Fermacell greenline starting on page 26.

A Sentinel-Haus Institut Partner

Fermacell is a partner of the Sentinel-Haus Institut (SHI) in Freiburg, germany. The institute sees itself as a “sentinel” watching over buildings to protect them from undesired toxins, and stands for safe indoor air. SHI educates those in the building industry and helps them to find certified partners for healthy building and living – such as Fermacell. The Sentinel standard makes optimal indoor air quality possible with contractually agreed-upon safety for optimum healthy living.

Used Worldwide

Fermacell’s product line of boards and accompanying products are used in germany and abroad to build and modernize a wide range of objects. Builders, architects, and processors can find flexible construction solutions at more than 20 sales offices and sales partners worldwide. Fermacell gypsum fiberboards are made in germany in two factories: One in Münchehof and one in Siglingen. A further production facility is located in Wijchen, The Netherlands. Fire protection boards from Fermacell Aestuver are made in a german factory in Calbe.

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18 Xella Sustainability Report 2012Xella Sustainability Report 2012 19Brands FelsBrands Fels

Fels

Fels is the second-largest german lime producer, operating eight lime factories, one dolomite factory, and one mortar factory in germany. The company also operates one lime factory each in Vitosov, Czech Republic and Tovarkovo, Russia. From its own raw material deposits, Fels mines lime of high purity, quality, and homogeneity, which is then refined into high-quality lime, lime hydrate, limestone, and lime compounds. Fels employs approximately 1,100 people.

Industrial manufacturers need lime and limestone products for numerous applica-tions, including steel, glass, building materials, agriculture, forestry, water treatment, and environmental protection. Fels is also an important raw material supplier for the Xella group companies and provides high-quality lime for the manufacture of AAC or Silka calcium silicate blocks.

As a natural raw material, lime makes a decisive contribution to building materials’ durability and sustainability. Thanks to its excellent binding capacity and basicity, it is also effectively used in a wide range of environmental applications.

An Essential Part of Environmental Protection

Lime is an essential part of protecting our environment – and is particularly easy to use for everything from scrubbing waste gases in power plants and neutralizing wastewater in sewage plants, to treating drinking water, and remediating polluted soil. In fact, over 60 million people in germany drink premium water treated by lime.

Continual Improvement

As one of the first companies in the german lime industry, Fels introduced quality management in accordance with DIN EN ISO 9001 in 1993. To this day, our lime fac-tories are still certified according to this international norm. Our quality management system is subject to constant improvement and is inspected annually by independent auditors.

Raw Material Cycle Protects Resources

The raw material cycle at Fels is an example of acting in an environmentally friendly, sustainable manner. Our lime products are used in flue gas desulfurizati-on facilities at power plants. The flue gas scrubbing process creates FgD gypsum, which we reclaim and make into stucco. Among other things, we use this highly pure gypsum to make our Fermacell gypsum fiberboards.

Find out more about Fels starting on page 30.

Rübelandbahn: Fels Refurbishes Historic Harz Railroad

In 2006, the Rübelandbahn – a historic, 30 kilometer-long stretch of railway line running through germany’s Harz Moun-tains and the lifeline of the limestone industry for over 125 years – was on the brink of closure. The Fels-Werke gmbH, which uses this railroad for the majority of transportation to and from its Rübe-land site, bought the line from previous owner DB Netz Ag and invested about EUR 10 million in railway electrification and modernization of the historic route. Since then, the Fels-Werke gmbH has run the Rübelandbahn itself, creating a beneficial transport solution for both local residents and the environment alike, thanks to close cooperation with the community and financial support of the state of Saxony-Anhalt.

Today, the Fels-Werke gmbH uses the Rübelandbahn to transport nearly two million tons of lime and limestone – more than 60 percent of all transports. By doing so, Fels continues to empha-size rail transportation as an environ-mentally friendly alternative to road transportation.

5 million tons

the amount of lime and limestone Fels

produces annualy in germany for a wide

variety of industrial uses.

1  million tons

the amount of high-quality Fels lime

products used to purify waste gas emissions

from flue gas desulfurization installations in

power plants, waste incineration plants, and

industrial enterprises annualy.

50,000 tons

the amount of lime used annually to

recultivate mines. Among other things,

approximately 300 million cubic meters

of water are treated.

EUR10 million

was invested by the Fels-Werke gmbH in the

environmentally sustainable refurbishment

of the Rübelandbahn (Rübeland Railway).

Find out more about the Rübelandbahn

(Rübeland Railway) on page 19.

| 7

20 Xella Sustainability Report 2012Xella Sustainability Report 2012 21ReportsReports

Reports

The elaborate rotunda of Innsbruck’s Bergisel Museum houses a historic, giant circular painting showing the Battles of Bergisel during the Tyrolean Rebellion of 1809. The building’s interior was insulated with Ytong Multipor mineral insulation boards.

22 Xella Sustainability Report 2012Xella Sustainability Report 2012 23Reports Ytong Energy+Reports Ytong Energy+

Ytong – the Original in Thermal InsulationInnovation Right From the Start

Ytong autoclaved aerated concrete is a classic among modern building materials. Thanks to its superior thermal insulation properties, it makes a unique contribution to sustainable building, the reduction of CO2 emissions, and the creation of a healthy living environment. With its eye-catching yellow packaging, Ytong has been known for decades all over the world. The industrially produced block’s roots can be traced back to the energy crisis in Sweden after World War I, when saving energy became a matter of vital importance.

Industrial production of Ytong blocks began more than 80 years ago in a small Swedish village. For five years, architect Dr. Axel Erikson carried out research to find a new, energy-saving building material, until in 1923 he finally succeeded. He produced a new form of building block by placing a mixture of slate, lime, and metal powder under high pressure, and thereby invented aerated concrete: A building material with millions of tiny air entrainments and the exact insulating properties for which Dr. Erikson had been searching so long. In 1928, the visionary entrepreneur Karl August Carlèn bought a production license, courageously invested his entire fortune in the construction of an autoclaved aerated concrete factory, and started industrial production one year later. Demand was huge. New producers entered the market and became serious competitors. But Carlèn knew what to do. In 1940, he applied for trademark protection of his product, marking the birth of the world’s first trademarked building material. Using the words Yxhult (the company’s location) and anghärdade Gasbetong (the Swedish product name), he created the brand known around the world today as Ytong.

Always Been Better

The idea behind the Ytong block is as ingenious as it is obvious: Countless air entrainments inside the block give the material an extremely low thermal con-ductivity. While ordinary building materials allow a great deal of precious heat produced inside the building to escape through the masonry, Ytong has a powerful insulating effect – thanks to the trapped air pockets – that helps save valuable energy. Thermal conductivity is measured in Lambda. The lower this value is, the better. Even back in 1952, walls made of Ytong had a K-value (today called a U-value) of less than the statutory maximum from 1990. And with its compara-tively low weight, Ytong is a pleasure to use, making life on building sites easier.

Ahead of its time

Ytong – better than required

* binding EnEV reference value for 2012 unknown at time of printing

A wall made of Ytong blocks had a U-value

below statutory maximums back in 1952 –

and still does today.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

λ = 0.21 W/[mK]

λ = 0.16 W/[mK]

λ = 0.09 W/[mK]

λ = 0.08 W/[mK]

U-V

alue

s W

/[m

2 K]

1952 1977 1994 2009 2012

XX%*25%

54%

66%

66%

λ = 0.07 W/[mK]

Statutory maximum value (Germany)

U-value of a wall made with Ytong blocks, wall thickness: 36.5 cm

U-value: Heat transfer coefficient

Lambda (λ)-value: Thermal conductivity value

Amount below statutory maximum in percent%

better than statutory requirements

Xella closely accompanied the construction of a child day care center near Copenhagen that was built using Ytong Energy+.

Convincing thanks to its inner qualities and easy, flexible handling.

Like a sandwich, Ytong Multipor’s mineral insulation is sur-rounded by two layers of AAC, each of varying thickness.

ProJeCT

Convincing Performance

Denmark may be a small market, but for innovative building materials it truly packs a punch! Danish build-ers are very interested in environmental protection. At the same time, Denmark has tough guidelines for the energy efficiency of buildings that even go beyond those in germany. All in all, Denmark is a challenge – and a perfect test market for the new Ytong Energy+!

Falling short – but not on expectations!Ytong Energy+ has made it. Niels-Jørgen Pallesen, managing director of Xella Danmark A/S, is happy:

“The interest in Ytong Energy+ is amazing. Everywhere in Denmark, people are building both single-family homes and public buildings with our new product.”

Some are even calling the new product a “mineral one-liter block”, as a house built with Ytong Energy+ only uses one liter of heating oil per square meter of exter-nal wall each heating period. The 40 cm-thick Ytong Energy+ block helps building owners achieve a U-value of 0.15 W/(m2 K). As a result, this block fulfills passive house standards without any additional insulation.

Masonry and insulation in one The secret of Ytong Energy+ is its structure. Similar to a sandwich, the block contains a core made of Ytong Multipor between two layers of autoclaved aerated concrete. “It means a lot for a building’s indoor climate that we don’t have to seal bare masonry with artificial insulation, but can use insulation made completely from mineral materials that actively influence indoor climate,” says Hennig gudnitz, architect and partner at the offices of gudnitz Tegnstue in Denmark. Masonry and insulation in one block – that saves materials, time, and money.

Innovation in record time From the first sketch to the finished block, development only took three months.

“The Xella Research and Develop-ment Center performed final inten-sive tests on the product and solved all specific, use-related questions. This was a decisive contribution towards getting the product ready for the market,”

says Jörg Kochan, CTO at Xella Deutschland gmbH. One thing is already sure: Ytong Energy+ will sustainably shape environmentally friendly building – and not just in Denmark!

Ytong Energy+

24 Xella Sustainability Report 2012Xella Sustainability Report 2012 25Reports Ytong Energy+Reports Ytong Energy+

Ytong Energy+ Sets New Standards

Ytong hasn’t simply been resting on its laurels. For decades, dedicated experts from the fields of production, technology, research and development have been work-ing non-stop to improve the Ytong block and its thermal conductivity. Now, they have made a major breakthrough: The innovative new Ytong Energy+, a block that redefines energy-efficient building with a low Lambda value, thanks to its ingenious sandwich-like construction. The new block first hit the market in Denmark in 2011 to the delight of local architects, planners, and builders. Ytong Energy+ is a sustain-able, environmentally friendly product: From production to shipment and disposal, Ytong Energy+ is part of a closed cycle. We manufacture the block using mineral raw materials, reuse all waste, circulate dust and condensation back into the production process, and convert production waste into granulate for use, for instance, as an oil binding agent or leveling compound. If properly separated following building demoli-tion, Ytong building materials are 100 percent recyclable.

Cradle to Cradle Certified

Due to its outstanding sustainability, Ytong Energy+ received the coveted Cradle to Cradle certificate from the Environmental Protection Encouragement Agency (EPEA) gmbH in August 2011. Cradle to Cradle products are the opposite of “cradle to grave” products, which completely lose their value by the end of their life cycle. Starting in production, Cradle to Cradle products produce no waste when they are manufactured and – like nature itself – never become waste. Their value remains intact, no matter where they are in the life cycle.

Into the Future with Ytong

We plan on remaining a pioneer in energy efficiency, ecology, and sustainability well into the future. Ytong has always been better than statutory regulations and will always be better thanks to extensive research and development!

Closed Cycle

From cradle to cradle

p Ytong Energy+ received the Cradle to

Cradle certificate in August 2011.

p Proven sustainability.

p Minimal environmental impact during

production, shipping, and disposal thanks

to a closed cycle.

www.epea-hamburg.org

BASIC

CO2

Products made from Ytong are part of a closed cycle throughout their life cycles.

Life cycle

recyclingReuse of products in the production process

resourcesOpen-face mining of lime and sand

ProductionContinual development of the production process and reduction of CO2 emissions

Finished buildingsConstruction of energy efficient buildings

Production of blocks1m3 needed to make 5–8m3 of finished blocks

U=0.15 W/(m2K)

Load-bearing layer P2–0.35λ=0.09W/(mK)

40 cm

18 cm

15.5 cm

6.5 cm

YTONG Multipor insulating layer λ=0.045W/(mK)

Visible layer P2–0.35λ=0.09W/(mK)

Thermal conductivity of the Ytong energy+ block

The block’s structure guarantees extremely low thermal conductivity.

Uses for recycled material include oil binding agents and leveling compounds.

Ytong’s main components: Sand, lime, cement, and water – mineral and natural raw materials.

| 8

26 Xella Sustainability Report 2012Xella Sustainability Report 2012 27Reports Fermacell greenlineReports Fermacell greenline

Fermacell greenlineThe Air Is Clean!

We are a stay-at-home society. People living in industrialized nations spend most of their time in closed spaces. While that might be cozy, it isn’t always healthy. Air quality in many buildings is often poor, and sometimes even harmful to people’s health. Building material sins of the past still haunt many residential occupants, and allergies to house dust and other substances are on the rise. In the seven-ties, almost every prefabricated house was installed with wood panels laced with formaldehyde. As a result, many of these houses are still plagued by high levels of formaldehyde in the air. Although urgent renovation is desperately needed to prevent serious health problems, it is often too difficult or costly to replace entire building parts, and demolition usually is not an option.

Sheep’s Wool: A Magic Bullet?

This is where Fermacell greenline enters into the equation. These specially coated gypsum fiberboards pull off what can only be described as a small miracle: They remove damaging substances such as aldehyde and ketone from the air and trap them. As is so often the case, nature lends a hand here – providing a “magic bullet” known as keratin. Keratin is a primary component of sheep’s wool which pos-sesses the astounding ability to absorb contaminants and incorporate them into its molecular structure. Fermacell greenline gypsum fiberboards are treated with a specially developed, keratin-based active ingredient, and can be used as wall and roof finishing boards. A special dry flooring element comprised of gypsum fiberboards also exists for use on floors. Via an organic process, the boards absorb contaminant molecules and permanently transform them into benign substances. This process remains effective after wallpapering, and the substances remain bound in the panels – even in the face of extreme heat, high humidity, or rapid air circulation. Subsequent disposal of the materials is completely harmless to the environment.

Contaminant Levels Below Official Limits

Just a short time after installing Fermacell greenline, customers can once again breathe easy. Readings before and after renovation confirm that contaminant concentrations drop to levels far below the limits set by the WHO, and lab results suggest that these values may even continue to fall as time passes. But it’s not just field trials that confirm the effectiveness of Fermacell greenline: Independent testing institutes such as Cologne’s eco-INSTITUT also approved the results. So the air at home is clean again.

Danger averted

Using Fermacell greenline means measurably fewer contaminants

www.fermacell-greenline.de

A little help from nature

Cologne’s eco-INSTITUT has given Fermacell

products their much-coveted eco-Label,

acknowledging the products’ positive

environmental impact. Only well-engineered

products, whose components are non-toxic

and environmentally friendly, are awarded

this special seal of approval.

| 9

Contaminant levels in indoor air

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anal

Remaining contaminant levels with Fermacell greenline

1% 0% 17% 13% 14%e.

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n fu

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. in

ciga

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. in

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. in

solve

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in p

aint

s/va

rnis

hes

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

Fermacell greenline gypsum fiberboards contain a specially developed keratin-based coating. Keratin is a principal com-ponent of sheep’s wool.

Breathe easy! Renovating with Fermacell greenline makes an active contribution to healthy living.

The keratin-based coating is applied to both sides of the boards.

ProJeCT

A Healthy Future Ahead

The Kaiser family is finally home:

“We feel absolutely terrific: We’re not worried about our health anymore”. But that wasn’t always the case.

Something isn’t right here ...The Kaisers already suspected something wasn’t right when they bought their 1975 prefabricated bungalow. They had heard and read a lot about building materials that were carelessly used for many years before it was discovered that they were hazardous and can cause serious risks to occupants’ health decades later. As it turned out, readings showed that formaldehyde concen-trations in their bungalow’s indoor air were extremely high, at levels that were around two-and-a-half times the maximum value recommended by the World Health Organization (WHO). It quickly became clear that the noxious chemical was seeping out of the walls and the roof of the bungalow’s interior. The house had to be renovated urgently: Prolonged exposure to formaldehyde can cause serious health problems.

Time to renovate – but how?Since the bungalow’s polluted walls were mostly load-bearing walls which could not be replaced, the Kaiser family decided to renovate with Fermacell greenline. The boards could be directly attached and grouted to the building’s interior walls: Dismantling and disposing of the hazardous building materials were not necessary.

Readings taken directly after renovations caused a minor sensation: Levels of formaldehyde were a mere one-fifth of the first readings, placing them 50 percent below the maximum level set by the WHO. As time went on, the levels of formaldehyde diminished even further.

A noticeable effect – not just in the lab Do falling levels really mean that residents’ quality of life is also improved? Does eye irritation and constant sneezing diminish? Do unpleasant smell disappear? Dr. Hans-Ulrich Krieg from the eco-INSTITUT:

“Residents really notice the effects of Fermacell. The reduction in con-taminants is not just observed in the laboratory; it also produces noticeable improvements for residents under everyday conditions.“

www.fermacell-greenline.de

Fermacell greenline

28 Xella Sustainability Report 2012Xella Sustainability Report 2012 29Reports Ytong MultiporReports Ytong Multipor

Ytong MultiporA Tradition with Modern Values

Living in a listed historic home that has been preserved in its original state can be very charming. Old houses have personalities; they tell the stories of times past. But as much as we love them, every owner of a historic property eventually gets to the point where energetic modernization is inevitable, as too much precious warmth seeps out through old walls, placing a burden on the environment – and on residents’ wallets.

germans expect their homes to be cozy and warm. Around three-quarters of germany’s total energy consumption is used to produce comfortable indoor tem-peratures. An unnecessarily high amount of energy is lost due to the inadequate or nonexistent thermal insulation of old buildings. With 37 million old homes in need of renovation in germany alone, a huge potential for saving energy is waiting to be tapped.

The Solution: Interior Insulation

But can you really renovate a historic facade? Conventional insulation materials cannot be used as they are typically attached to a building’s facade and thus damage a look worth protecting. Ytong Multipor mineral insulation boards offer a modern solution to this dilemma. By affixing the insulation boards to the external walls from the inside, historic buildings worth preserving can be transformed into state-of-the-art homes. The effects of Ytong Multipor’s insulation boards stem from millions of delicate air entrainments inside the boards. These entrainments make heat transfer more difficult and function similar to a mineral air-conditioning system, allowing building rooms to stay cool in summer and warm in winter. The boards also function like capillary systems: They absorb moisture produced inside building rooms or external walls, trap it, and evenly release it later on. Old homes that have been insu-lated with Ytong Multipor boards meet the requirements of germany’s Energy Saving Ordinance in its current version – and they’re just as energy efficient as modern buildings.

100 Percent Recyclable

Even at the point of manufacture, Ytong Multipor mineral insulation boards save energy and are in tune with the environment. They are mostly made up of the natural raw materials lime, sand, and water. Ytong Multipor mineral insulation boards do not contain fibers, plastics, or contaminants. All waste material is 100 percent reusable. And if future owners decide to renovate again, they won’t face waste-disposal prob-lems – something that certainly can’t be said for many other insulation materials.

Health, environment, functionality: All certified

Ytong Multipor awarded natureplus® seal

The International Association for Future-

oriented Building and Accommodation

natureplus e. V. has awarded Ytong

Multipor’s mineral insulation boards the

natureplus® seal of quality, recognizing

their outstanding environmental features.

Ytong Multipor insulation boards can be effortlessly cut to size and adapted to fit the required dimensions.

Historic preservation regulations prevent the exterior insulation of this building’s facade.

Ytong Multipor absorbs moisture, stores it, and releases it again later on.

| 10

ProJeCT

A Second Life for Schwetzingen’s Train StationSchwetzingen’s train station, which dates back to the era of German industrialization in the mid to late nineteenth century, had seen better days by the time an investor took it over in 2007.

For decades, the station – constructed in 1870 in an elegant Renaissance Revival design – connected the peaceful town of Baden-Württemberg with the rest of the world. But with the triumph of the automobile, many train stations located outside urban areas faded into obscurity. And so did Schwetzingen’s station. The building was decommissioned in 2000 and became derelict.

resetting the courseWhether it was a railway museum, artists’ colony, or bike workshop, there was certainly no shortage of ideas on how to revitalize the railway station. Unfortunately there was just one problem: None of the ideas was financially viable. Ultimately, the local Institut Innovatives Bauen (iib or “Institute of Innovative Building”) took over the deterio-rated building, thoroughly renovating it and fitting out an “office hotel”, complete with central facilities such as a kitchen, washroom facilities, staffrooms, etc. Since 2008, eight companies have shared the 1,200 square meters office space.

Preserving the station’s beautyFirst, the building had to be completely renovated. given the facade’s historic status, insulating the external walls posed a particular challenge.

“Interior insulation was the only way to improve the building’s thermal insulation,”

explained Dr. Ing. Peter Hettenbach, managing director and owner of ibb. “Our chief concern was preventing moisture from forming in the structure’s walls.”

The institute chose Ytong Multipor insulation boards, a building material that, according to Dr. Ing. Hettenbach, “absorbs moisture, traps it, and then releases it later on.” The boards’ environmentally friendly features also won over the station owner: “They are entirely made from natural raw materials and are 100 percent recyclable.” But that’s not all, Ytong Multipor insulation boards have another positive side effect: They provide a high level of soundproofing: An added advantage for a build-ing located directly along a high-speed train line.

Ytong Multipor

30 Xella Sustainability Report 2012Xella Sustainability Report 2012 31Reports FelsReports Fels

Fels – Lime for Life Boats, not Excavators

For decades, lignite mining was a big business in the Lower Lusatia region in the German state of Brandenburg. Now, both the lignite and the excavating machines are gone. What remains is an uninhabitable, cratered landscape with enormous open-pit mines. How can these stretches of land be given back to people and nature?

It’s an ambitious environmental project and one of the largest in Europe. Strip mines are to be flooded and connected together to form a vast lake region in order to create a whole new habitat. Once completed, animals and plants will be able to reestablish themselves here – and humans will benefit from a livable environment that offers recreational opportunities and a new economic basis.

Neutralizing Acidic Water

The water table, which had been artificially lowered for lignite mining, is gradually being restored to its original level as part of the renaturation process. Additionally, water from surrounding rivers – such as the Spree, Neisse, and Black Elster – is being diverted into the lakes. However, in almost every new lake, the groundwater in the flooded strip mines reacts with minerals, such as pyrite and marcasite, which are present due to former mining. While the water in the newly formed lake region may be crystal clear, it’s also highly overacidified – and therefore unsuit-able for animals and plants. Before new habitats and an intact landscape can emerge here, humans must provide intensive support. The effects of the alkaline lime supplied by Fels is central to water treatment. In a natural process, lime neutralizes the acidic water and ensures a biologically balanced water supply.

How does the Lime get into the Water?

How can lime be evenly distributed in this seemingly endless mass of water? After all, more than 100 million cubic meters of water are to be regularly treated with lime – and all that in an environmentally friendly and economical manner for many years. Remediation boats and sprinkler systems are already in use, and new alter-native methods are being tested. Fels sees its duty as going beyond just supplying special lime. The company is also busy successfully developing new methods of getting lime right where it is needed most: In the newly created lake regions of the former german mining regions in Lusatia and Central germany.

Innovative neutralizationprocedure

Submerged floating pipeline with nozzles (german: gSD, getauchte Schwimmleitung mit Düsen)*

Land-based storage, mixing, and distributor unit

Distribution system (submerged pipeline) with an actuator for anchoring the system

A pontoon for anchoring the submerged pipe

Injection system with nozzles arranged

on both sides and in different designs

Prevailing wind direction

A lime mixture that neutralizes the water’s

pH value is pumped under high pressure

into the lake via a pipeline (gSD) that runs

beneath the surface of the water.

* Patented approach developed by gMB mbH and Fels-Werke gmbH.

By flooding the cavities left behind by lignite strip mining, a large-scale lake district has been created in the Lower Lusatia region.

In a mixing unit located on the lake’s bank, water from the lake is combined with a special lime mixture, before being pumped back into the lake via the gSD.

Lime is an important component of the neutralization procedure.

| 11

ProJeCT

FelsIn Action Under Water

The “gSD” pilot project’s new neutralization unit, which is located at Scheibesee lake in Lower Lusatia, is so unobtrusive that you might just walk on by without noticing it. A 250-meter-long pipe runs 50 cm beneath the surface of the water; defined nozzles integrated in the submerged pipeline gush lime slurry into the lake. The innovative procedure, known as a “submerged floating pipeline with nozzles” (german abb.: gSD), was developed by BTU Cottbus (Brandenburg University of Technology) in cooperation with the Fels-Werke gmbH and the gesell-schaft für Montan- und Bautechnik (gMB or the “Mining and Construction Engineering Development Company”). Regular operation commenced on October 1, 2011.

Why develop a new procedure?What advantages does gSD have compared to more conventional methods, such as remediation boats or helicopter sprayings? Dipl. Ing. Heiko Zillig and head of the Fels Werke gmbH’s environmental division explains:

”A free jet develops when lime slurry is pumped into water. This jet disperses the lime through a much larger body of water than compared to other methods, where the water surface typically has to be penetrated first.“

Professor Koch from the BTU Cottbus elaborates even further:

“The procedure is very efficient and economical. Wind and rain cannot disrupt it, nor can it really be visually noticed.”

With a water volume of more than 110 million cubic meters and a very low, hostile pH value of 2.9, Scheibe-see lake is regarded as one of the biggest challenges of the Lower Lusatia renaturalization project. The Fels-Werke gmbH developed the special lime formula and came up with an environmentally friendly logisti-cal solution. Professor Koch from BTU Cottbus:

”We collaborated with our partners in a way that was both innovative and creative. The Fels-Werke gmbH didn’t just come up with the perfect lime mixture which would have the greatest effect on the slurry; it also made sure that the environmental impact of transporting materials to and from the work site was kept as low as possible.“

32 Xella Sustainability Report 2012Xella Sustainability Report 2012 33Reports Energy ConsultantReports Energy Consultant

Training To Be an Energy Advisor Know-How for People and the Environment

Around 40 percent of Europe energy consumption can be traced back to the building sector, which is a major field of action for energy consultants, who receive comprehensive training at Xella.

Today, on the fourth day of instruction, participants in Xella’s training program for energy advisors have the chance to apply the knowledge they have learned in the program thus far. Their task: To rigorously examine one of Xella Research and Development’s training hubs, which is located in Emstal in the german state of Brandenburg. They are to answer questions such as: Where are the building’s thermal bridges located, and how can I calculate them? How can I evaluate whether or not the building is airtight and appraise its thermal properties? The five-day training program will conclude with a comprehensive final exam the following day. After passing the exam, graduates are able to call themselves “Energy Advisors as per the European Energy Efficiency Directive.” Pavel Pancek, a Xella sales consultant working in the southern Bulgaria, is convinced: “Questions on energy efficiency are becoming more and more important for our professional life on a day-to-day basis. Thanks to this hands-on training course, I will be able to provide more extensive information to my customers about the environmentally friendly, resource-saving features of Xella products.”

Alongside practical training, participants deal with all the other questions surround-ing energy consulting: What does the current European Energy Saving Ordinance require planners and owners to do? Can alternative energy sources be used? Which retrofitting measures result in energy savings? What funding programs are available to customers?

Saving Money, Protecting the Environment

The training program for energy advisors at Xella Research and Development Center has been around since 2009; its first participants were german employees working in the building material sales unit. The training sessions were expanded to include international staff in 2010. External participants such as building experts or architects, construction engineers, or builders merchants also receive customized training.

External building expert Bertram Augustin completed the course: “As a certified energy advisor, I work with my customers to explore the quickest and most fruitful option for them to carry out modernization – from an environmental perspective, as well.” After having been advised in regards to power consumption, owners of buildings are generally ready to make higher investments that don’t weigh on their wallets – but make a measurable contribution to environmental protection as well as to climate change mitigation.

Certified expertise

Energy efficiency advisor

Xella Research and Development’s new

energy consultant training course was

introduced in 2009. Since then,

p 117 Xella employees from germany,

p 151 Xella employees working

internationally and

p 75 external participants

have received the coveted energy consultant

certificate.

graduates who have earned the right to the title “Energy Advisor as per the European Energy Efficiency Directive”.

The Xella Research and Development’s training center is located in Emstal, germany.

Torsten Schoch is the managing director of the Xella Research and Development Center. | 12

ProTAGoNIST

Energy Advisor Training A Successful Training Concept

Torsten Schoch, managing director of the Xella Research and Development, and his team developed a master plan for the training program on energy efficiency issues.

Why does Xella offer the training program for energy consultants?The issue of energy-efficient construction has always been a top priority for Xella. That’s why we decided to train our staff members so they can provide expert advice on energy-saving measures and sustainable construction to our customers, no matter if they’re architects, con-struction engineers, building-material merchants, or do-it-yourself builders.

How was the training program adapted to international participants? Don’t the rules and regulations vary in different places?This was relatively uncomplicated process. The European Energy Efficiency Directive, published in 2002, stipulates that buildings constructed in EU countries have to reach a certain level of energy efficiency by 2020. All new constructions built after 2020 have to be “zero-energy houses”, for instance. Although the responsibility for implementing the directive rests with the individual nations, the knowledge does not – it can be transferred across national boundaries.

Is the qualification also recognized outside of Germany?From the very start, we didn’t just develop the training program for germany, but created a concept that could work across the whole of Europe. That is why we have been working with DEKRA – a testing organization authorized with the right to issue the course qualification “Energy Advisor as per the European Efficiency Directive”. Partici-pants, who come from all over Europe to be trained by us, are examined by DEKRA, so that when they receive qualification it is internationally recognized.

What does the training program for energy consultants have to do with the Xella Group’s sustainability strategy?Xella continuously works on developing innovative products that make sustainable construction possible. Included in our understanding of how to act sustainably is the idea that our employees should be excellent advisors on issues relating to energy efficiency. The energy consultants we train help ensure that our building materials are used in an optimal manner and in doing so, they make sure that our customers can achieve the largest possible energy savings. It is also important that we train competent employees so we can secure our company’s future, as well as make a valid contribution to sustainability.

www.forschung.xella.com

34 Xella Sustainability Report 2012Xella Sustainability Report 2012 35Strategy and ManagementStrategy and Management

Strategy and Management

Behind the scenes and invisible to visitors, interior insulation using Ytong Multipor keeps moisture levels balanced at the Bergisel Museum.

36 Xella Sustainability Report 2012Xella Sustainability Report 2012 37Strategy and Management Sustainability StrategyStrategy and Management Sustainability Strategy

Sustainability as Part of Xella’s Corporate Strategy

As a manufacturer, we are committed to upholding our responsibility towards people, society, and the environment. We’ve made acting in a sustainable, responsible man-ner an integral part of our corporate philosophy. For years now, our philosophy has emphasized the following: “We support social and cultural projects, particularly in our local communities, and are committed to environmental protection.” The building material industry has an especially wide range of opportunities to advance climate and environmental protection. From an early stage, Xella assumed a pioneering role: With targeted innovations and constant process optimization, we’ve spent decades increasing our products’ thermal protection and energy efficiency, making a contri-bution towards the conservation of natural resources, and reducing energy consump-tion and emissions. Our products stand for improving the quality of life and offer our customers sustainable benefits.

Skilled, motivated employees ensure the success of our company. We promote our employees’ professional and personal growth, and strive to be an attractive and reliable employer. The way we see it, health and safety on the job is an important element of sustainability.

Consistent Thinking...

The quest for sustainability has a firm place in our business operations. And now we’re making this commitment official by publishing our own binding sustainability strategy for the Xella group. Heinrich Rohlfs, Head of Products and Systems for Fermacell and member of the “Sustainability at Xella” project team, nicely sums up, the basic questions with which we were confronted: “What does sustainability really mean for our business, and how do we define sustainability for the Xella group?”

In order to develop our strategy, the first step we had to take was to determine what sustainability means for the Xella group and identify the special challenges and characteristics for each of our three business units. We asked 25 employees from every division, over 900 builders, nearly 450 sales reps, and 20 additional stakeholders from the fields of science, research, politics, and society what they thought the relevant sustainability issues for Xella were. We then evaluated the results of our survey and asked ourselves: What are our challenges, opportuni-ties, and risks? What measures have we already taken? And where does work still need to be done? We linked these topics to our corporate strategy and defined four fields of action: Market, processes, staff, and compliance.

Based on our sustainability guidelines, we outlined specific, ambitious, and feasible objectives and mea-sures and established deadlines and responsibilities for each field of action. With our sustainable and socially responsible corporate strategy, we at Xella are not merely looking to secure our own future. We also envi-sion using our entrepreneurial expertise to actively con-tribute to a new way of looking at the challenges of our time and coming up with concrete solutions for existing problems. Our principles reflect this global approach.

The main pillar of our “Market“ field of action is to focus our products and services on the principles of energy efficiency and quality of life. Our aim is to create permanent benefits for our customers.

Ongoing improvement and innovation within the scope of business processes are at the core of the field of action “Processes“. In this area, we want to reduce energy consumption and optimize our processes in terms of resource conservation and recycling efforts.

Employee qualification, commitment, and performance are deciding factors for the success of the Xella group. They take center stage in the field of action “Staff“.

In the field of action “Compliance“, we look to establish a sustainable corporate culture and promote the further development of a compliance management system, including a new code of conduct for the Xella group. These measures constitute a valuable contribution towards securing the success of our company. Fulfilling legal standards and gearing our company towards sus-tainability is our “license to operate” – and something we see as a matter of course.

… and Acting!

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38 Xella Sustainability Report 2012Xella Sustainability Report 2012 39

gas emissions caused by manufacturing, using, and disposing of a product – as an important indicator of corporate responsibility. The survey also pointed out that people particularly value sustainability measures in connection with an individually measurable benefit – such as saving energy, creating a healthy living environment, or preserving property value – that promises financial advantages, instead of being a significant burden on builders’ budgets.

Clear Structures

To implement our sustainability strategy, Xella has created an organizational structure that makes it possible for different functions to work hand in hand as efficiently as possible. The Sustainability Council consists of members of management and senior executives from the group. It is responsible for setting the sustainability strategy, resolving key issues, and monitoring compliance with the guidelines. Additionally, the Sustainability Council keeps in close contact with the Working Group Sustain-ability, whose task includes gathering information, collecting data, and compiling key figures on sustainability. The Working group consists of employees from each of our three business units – building materials, dry lining, and lime – and central divisions, such as Human Resources, Purchasing, Research and Development (R&D), Finance, Legal and Insurance, and Environmental, Health and Safety (EHS). Meanwhile, the Sustain ability Coordination and Communication Team – consisting of the head of sustainability and his team – takes care of coordinating, planning, and communicating the various sustainability measures, including preparing internal and external reports. Responsible persons are appointed by management to ensure the implementation of each specific measurement. A controlling process monitors and steers the progress. Every four to six months, those in charge report to the Sustainability Council on their initiatives’ status. Together, everyone involved suggests and develops new initiatives.

Working as oneIn order for a sustainability strategy to be successful, all employees have to stand behind it and make it a vital part of the corporate culture. That’s why good com-munication is a definite must. We keep our employees informed via events (e. g. division and management meetings) and media (e. g. staff magazine “Milestones”, the sustainability report, or our Internet and Intranet sites).

Setting higher standardsWhen it comes to sustainability awareness, you can still feel the divide between the West and East – China, Russia, parts of Eastern Europe – and between industrial and developing countries. We are trying to bring Western ideals of sustainability and specific concepts for success to these countries in order to set higher standards and improve the situation on a global basis. This exchange of ideas and expertise means the world to us.

Diverse Stakeholder Communication

For Xella, sustainable entrepreneurship and transparency go hand in hand. In the public eye, Corporate Social Responsibility (CSR) is becoming more important and awareness of sustainability has increased dramatically. All of this is good news for Xella. Even today, our products lead the way in energy efficiency, resource conserva-tion, and environmental protection.

We rely on active, constructive dialogue with our stakeholders, who all observe the Xella group’s business activities with different demands and expectations. In addi-tion, we analyze and identify our customers’ needs and keep in touch with them, for example, through regular training sessions for architects and planners or through close contact with Ytong Bausatz-Haus franchise partners. We offer our partners important information about corporate measures and positions. This dialogue manifests itself in many different ways, for example, through this first sustainability report, our Web sites, publications such as the Baubuch reference book, or our training program for sales reps to become certified energy consultants.

Sustainability even more important in the futureIn 2010, we conducted a large-scale survey of our stakeholders to find out what they expect from Xella (see above). All participants saw sustainability as an important topic – and the majority even considered it a very important topic. Sustainability has often been called a key issue for the future, especially in the next three to five years. However, it also became clear that few of the surveyed respondents could truly assess Xella’s achievements in the field of sustainability. Those capable of doing so usually classified Xella’s achievements as good or very good. A lack of commu-nication was usually given as the main reason for respondents’ inability to offer an opinion. This sustainability report is a direct reaction to our findings.

Stakeholder survey yields important insights Survey respondents saw a special opportunity for Xella to be a pioneer in sustain-ability and use this position to positively influence standards and regulations. They considered research and development particularly important, along with the manufacture of innovative, environmentally friendly, resource-efficient, and non-toxic products. According to one respondent from the science and research stakeholder group: “Product quality is also always a sustainability issue. The focus should therefore be on research and development to create a reliable, high-quality prod-uct.” Furthermore, a building’s durability and stability of value are an integral part of sustainability. Respondents also named “carbon footprint” – the sum of greenhouse

Strategy and Management Sustainability StrategyStrategy and Management Sustainability Strategy

Sustainability vision

Sustainability definition

Sustainability goals, initiatives, and measures

1. Market

– Energy efficiency– Environmental

protection– Quality of life

3. Staff

– Training and further education

– Funding

2. Processes

– Resource conservation– Reduction of energy

consumption– Emissions reduction– Occupational

health, safety and environmental protection

4. Compliance

– Compliance and overcompliance with legal standards

– Occupational health and safety

– Corporate governance

Sustainability guidelines (fields of action)

Our stakeholders

p Customers

p Architects

p Staff

p Policy makers and organizations

p Suppliers

p NgOs

p Science and research

40 Xella Sustainability Report 2012Xella Sustainability Report 2012 41Fields of ActionFields of Action

Fields of Action

germany’s Lausitzer Seenland was formed by flooding decommissioned lignite mines. Lime plays an important role in neutralizing the lakes’ acidic water.

42 Xella Sustainability Report 2012Xella Sustainability Report 2012 43

MarketBuilding on the Future Sustainability

Climate change, resource shortages, and environmental damage are putting our way of life to the test on a global scale. A livable future depends on acting in a responsible, sustainable manner. Products from the Xella Group stand for sustainable concepts and responsible use of our planet’s resources in the building and environmental protection fields.

Xella products are sustainable: They are mainly made from natural raw materials (some of which have been reused), create almost no waste and are recyclable. Xella building materials are used for energy-efficient buildings and contribute to reducing wasted energy and CO2 emissions thanks to their specific product features. Fermacell gypsum fiberboards make healthy living even healthier and improve indoor air quality. Lime from the Fels-Werke gmbH is used in a variety of environmental engineering applications and offers significant support in protecting the nature.

Research and development at XellaXella is one of the few European companies in the building material industry to run its own Research and Development Center. Located near Berlin (germany), the Xella Research and Development Center is responsible for basic research and product development. This is the place where new momentum for the development of sustainable products and efficient building technologies starts – and where new climate protection and healthy living ideas are born. More and more people all over the world need – and want – a sustainable way of life. That’s why the Xella Research and Development Center is driven by the desire to develop high-quality, energy-saving, environmentally-friendly, sustainable, and resource-friendly products.

The Xella Research and Development Center focuses its work on three main areas: Applied research, construction physics, and product and process research. It is outfitted with state-of-the-art equipment, including various testing stations, measuring and detection devices, and simulation technologies. Here’s where we subject building elements, plasters, mortar, and exterior insulation and finishing systems (EIFS) to intensive testing. At our Research and Development Center we can simulate earthquakes, wind, and soil pressure loads as well as test factors such as load-bearing capacity and flexibility. Our acoustic testing facilities, climatic chamber, and rain simulation systems provide valuable information about the products’ practicality. In our outdoor area, we subject roofs and walls to natural weathering conditions and test their durability. A wide range of experiments

serves to promote the development of new solutions in construction physics for energy conservation, the use of alternative energy, acoustic insulation, protection against moisture, and mold prevention. Many projects are devoted to healthy build-ing, living and indoor climate.

Innovation at Xella

International, interdisciplinary: Xella’s innovation managementNew ideas, a spirit of progress, and trend-setting building materials make Xella an innovative company that sets itself apart from the competition with high-quality, energy-saving products. Xella’s Innovation Management Team takes care of system-atically planning and specifically evaluating innovation processes.

Our staff members’ creativity is the driving force behind Xella innovations. In our national group companies, we have created Local Innovation Teams with three to six employees from various areas, such as Production, Technology, Marketing, and Sales. They collect and evaluate ideas, and put them into action. A total of 38 staff members from 24 countries are actively involved in Local Innovation Teams and support the spirit of innovation in their national group companies. The teams form the Xella Innovation Circle, whose members meet annually to take a look at the future of building and discuss various innovation projects from national Xella group companies. Xella IdeaFactory is a great way to facilitate communication between teams.

Xella Innovation AwardSince 2008, Xella has organized the annual group-wide “Xella Innovation Award”. As a symbol of Xella’s commitment to innovation, this award is presented to teams who start an outstanding innovation. The competition is open to all Xella employees worldwide. Fermacell greenline received the 2010 Xella Innovation Award. In 2011, the award went by a large margin to Ytong Energy+, the composite block with an integrated insulating core made from Ytong Multipor mineral insulation. Fels took second place with hydroxide pellets for reducing marine sulfur emissions. Xella Baustoffe Alpe-Adria came in third out of seven finalists with the develop-ment of a milling device for autoclave closures. In 2011, additional special prize was awarded to the Ytong Energy+ development team for its exemplary team commitment and excellent cooperation between all involved: The technical team, the Xella Research and Development Center, and the Danish sales company. In just seven months, the team managed to get Ytong Energy+ on the market.

Find out more about Xella IdeaFactory

starting on page 63.

Xella Innovation Award

The annual award honors outstanding

innovations within the Xella group.

Increasing qualifications

Xella Research and Development Center

offers staff members and external partici-

pants qualified training towards becoming

“Energy Advisors as per the European Energy

Efficiency Directive.”

Field of Action Market Field of Action Market

44 Xella Sustainability Report 2012Xella Sustainability Report 2012 45

Intelligent Concepts for Efficient Buildings

Indoor heating accounts for the largest amount of residential energy consumption. In 2009, 71 percent of residential energy consumption went towards heating. This is where Xella comes in: As the market leader in environmentally friendly building materials, we are constantly working on optimizing our products to protect the envi-ronment and conserve resources. Building materials’ thermal insulation properties make a particularly significant contribution to a building’s energy balance. To meet today’s minimum requirements as set forth in germany’s 2009 Energieeinsparver-ordnung (Energy Savings Ordinance) EnEV, building envelopes must have a thermal insulation value (U-value) of 0.28 W/(m2K). Nearly zero-energy houses must fulfill even stricter criteria according to EU guidelines. In the future, requirements for U-value will be around 0.15 W/(m2K).

Today, Xella already offers customers a variety of products and product combinations to help to make U-values of 0.15 W/(m2K) reality with a reasonable amount of effort, such as Ytong blocks with a thermal conductivity of 0.07 W/(mK) or Ytong Energy+ with a thermal conductivity of 0.06 W/(mK).

Xella offers courses on low-energy building at Ytong Silka forums in germany, the Silka Ytong Building Academy in Poland, and elsewhere.

EnergieWertHaus – minimum consumption, maximum resource conservationIn early 2010, Ytong, Vaillant, and DEKRA presented the Energiewerthaus, or energy-value house: A sustainable, high-quality house concept. The building envelope is made of ecologically sound Ytong building material, and heating technology provider Vaillant delivers environmentally-friendly, resource-saving heat with technology based on regenerative energy. Independent testing service provider DEKRA certifies newly built EnergieWertHaus structures, document-ing their minimal energy needs. Today, these buildings already exceed planned requirements set forth in the Energieeinsparverordnung (Energy Savings Ordi-nance) 2012 EnEV, qualifying them for the highest level of financial support from the KfW (Kreditanstalt für Wiederaufbau, or Reconstruction Credit Institute). A number of EnergieWertHaus structures built with Xella products can be found in germany. Passive houses in Italy and Slovenia or low-energy objects in Bosnia are examples of energy-efficient building with Xella products throughout Europe.

Energieplushaus – an active contribution to climate protectionToday, it’s possible to build houses that not only save energy, but also produce more energy than their occupants need. Ytong Bausatzhaus introduces this innovative house concept with its Energieplushaus. Three components – low heat transfer coefficient, low energy use, and maximum energy production – form the basis of this new house concept. The house combines a massive Ytong exterior wall structure with an Ytong solid roof, in addition to a heating and ventilation system with heat recovery and a photovoltaic installation for producing electricity. A four-member family’s annual energy consumption (including household electricity) falls to approximately 6,700 kWh in an Energieplushaus house – while the house itself produces roughly 9,000 kWh of solar energy every year. As a result, approximately 2,300 kWh can be fed into the public power grid.

Our goal is to further promote the building of Energieplushaus houses.

Ytong Blocks – building for the futureTaking decisive action against climate change is an EU-wide mission that also includes significant reduction of buildings’ energy consumption on a long-term basis. As a result, stricter energy guidelines for buildings will take effect at the end of 2020. Starting then, new buildings will have to demonstrate a very high level of energy efficiency and cover a large portion of their energy needs from renew-able sources. Their need for primary energy should be nearly none. Today, Xella’s new Ytong block already offers a solid building material that makes additional insulation of external walls completely unnecessary, with a low Lambda value of just 0.07 W/ (mK). In fact, values with the new Ytong block fall below the requirements set forth in the current 2009 EnEV by 35 percent.

Ytong Energy+ achieves an even better Lambda value of 0.06 W/(mK). This solid, purely mineral block contains a core of Ytong Multipor surrounded by Ytong layer. In 2011, the block was successfully introduced in Denmark, where high require-ments for energy-efficient buildings are already a reality. Despite its extremely low thermal conductivity, the innovative block is very stable and can therefore be used in multistory residential construction.

Ytong Multipor – enhancing the value of older buildingsBringing older buildings to a modern energetic state is a valuable aspect of sus-tainability – not only in terms of climate and resource conservation, but also in terms of preserving precious cultural assets. The best way to preserve historic buildings is to make them usable and adapt them to fit modern standards. It’s possible to both energetically modernize buildings and protect historic facades by insulating exterior walls from the inside with Ytong Multipor. After refurbishment with Ytong Multipor, even historic buildings conform with today’s EnEV standards. These purely mineral insulation boards don’t just insulate, they’re also permeable and breathable, and work much like a mineral air conditioner. In public build-ings, such as churches and museums, they absorb any moisture created during use and later slowly release it back into indoor air. Both residents and occasional visitors can enjoy a healthy, pleasant climate within old walls. Development of Multipor desalinizing boards for saline-polluted masonry will be complete by 2013.

Hebel prefabricated compound units – economical and environmentally friendly Wall and roof panels from Hebel stand for fast and economical, yet sustainable building, especially in the high-value commercial construction field. The precisely fitted, ready-made autoclaved aerated concrete assembly components are delivered to building sites just in time. With Hebel panels, it is possible to build single-sheet walls that both fulfill EnEV requirements and offer the maximum level of fire protection. AAC combines temperature moderation properties and the ability to store both heat and cold, making energy-intensive climate control measures in buildings a thing of the past.

Find out more about Ytong Energy+

starting on page 22.

Find out more about building renova-

tion with Ytong Multipor starting on

page 28.

Energy efficiency

The focus of our products and services:

Energy efficiency – to create permanent

benefits for customers.

IBU certificate for Ytong Multipor

Ytong Multipor has been certified by the

Institute Construction and Environment e. V.

(IBU) in accordance with environmental

declaration ISO 14023. This certification can

be useful for the overall evaluation of

building projects’ sustainability.

Field of Action Market Field of Action Market

46 Xella Sustainability Report 2012Xella Sustainability Report 2012 47

Fermacell gypsum fiberboards made from water, gypsum, paper – that’s it! Back in 1971, Fermacell started offering gypsum fiberboards made from water, recycled paper, and gypsum – and without any added binders. Their resource-saving production process is subject to strict quality controls and produces no waste. The Institut für Baubiologie Rosenheim (Institute for Building Biology in Rosenheim) has confirmed the environmental friendliness of Fermacell gypsum fiberboards by awarding its IBR seal of approval. Additionally, Fermacell has received an environ-mental product declaration (EPD) based on the internationally accepted ISO 14125 norm. Fermacell gypsum fiberboards can be used for floors, walls, and ceilings, and offer protection thanks to their high fire resistance. They absorb excess humidity and release it at a later time when indoor air is dry, and create an optimum balance between thermal insulation and thermal storage. As a result, they help maintain a constant, balanced indoor climate.

Fermacell loft insulation elements were developed especially for insulating at-tics which are responsible for roughly 20 percent of heat losses. Fitted to top-story ceilings, they help save up to 50 percent of the energy used in heating. Fermacell flooring systems guarantee thermal insulation and impact noise insulation for lower residential floors. In addition, Fermacell wet-room flooring systems are mold-resistant and highly durable. A further highly successful development: Fermacell greenline. These boards contain a special keratin-based coating that absorbs toxins, such as formaldehyde, and unpleasant odors and permanently transforms them into non-toxic substances.

Energy efficiency goes to ChinaXella is present in the rapidly growing market of China, where its products contrib-ute greatly to energy-efficient and sustainable building for a better quality of life in China’s booming cities. Since 2009, Xella has been a member of the “Energy Ef-ficiency in Building – Made in germany” initiative, organized by the german Federal Ministry of Economics and Technology. This initiative involves companies from the building, industrial, and transportation sectors and aims to support countries that have set ambitious energy-saving goals, such as China, through targeted measures. Xella has been represented at the annual “International Conference on Intelligent, green and Energy-Efficient Building and New Technologies and Products Expo” in Beijing since 2009.

In China, Xella runs Ytong factories in Shanghai, Changxing, and Tianjin, as well as a Silka factory in Baoding.

Safe Buildings for more Protection from the Forces of Nature

Unique fire protection expertiseFire doesn’t only threaten human lives – it also damages the environment and destroys personal as well as financial assets. Xella is developing better build-ing materials to reduce the risk fire poses to people and the environment to the greatest extent possible. Hebel wall and roof panels, made from non-combustible autoclaved aerated concrete, distinguish themselves with a proven fire resistance rating of at least 360 minutes, offering industrial and commercial buildings excellent fire protection.

Solutions from Fermacell complement Xella’s fire protection expertise. Fermacell Aestuver fire protection boards made from lightweight gFRC belong to material cat-egory A1 – the highest level of fire protection available. For years, they’ve been used in subterranean traffic infrastructure, such as subway stations and tunnels. Right now, they’re being used to build the train station at the new Berlin Brandenburg International Airport, where custom-made cable tunnels, inspection shafts, and fire main lining will protect sophisticated technical installations in the event of fire. Another example: The german city of Essen modernized the evacuation and escape routes in its subway system with Fermacell Aestuver in early 2011 using a special, highly slip-proof version of the fire protection board.

The new Fermacell Firepanel A1 offers all the well-known properties of the Fermacell gypsum fiberboard for dry lining. It can be used in interiors and has even more powerful fire protection properties for the building material and building unit. All Fermacell fire protection products have been tested according to national and Euro-pean guidelines and come with the necessary certifications and where-used lists.

Both Ytong Multipor mineral insulation boards and Ytong Multipor light mortar are also non-combustible and emit non-toxic fumes the event of fire. As a result, the entire Ytong Multipor system fulfills building code requirements for non-combusti-ble building materials.

Instead of looking at an insulating material’s fire resistance rating on its own, it’s always best to see it in connection with the structure to be insulated. Ytong Multipor mineral insulation boards often contribute to improving buildings’ fire protection classification.

Tests performed at the Materialprüfanstalt für das Bauwesen Braunschweig (Civil Engineering Materials Testing Institute in Braunschweig, germany) show that clad-ding with Ytong Multipor mineral insulation boards can improve the fire protection properties of steel and prestressed concrete. In a single measure, subterranean garage and basement ceilings in older buildings can be both insulated and provided with better fire protection. In new buildings, using Ytong Multipor mineral insulation boards can reduce the weight of ceilings and save concrete while fulfilling high fire protection requirements.

Find out more about Fermacell

greenline starting on page 26.

Quality of life

Quality of life and healthy living form the

focus of our products and services.

Energy efficiency – made in germany

This initiative supports projects in the field of

energy efficiency and establishes relevant

local networks.

Field of Action Market Field of Action Market

48 Xella Sustainability Report 2012Xella Sustainability Report 2012 49

High seismic stabilitySouthern and Southeastern Europe, as well as large portions of Asia and Central America are among the areas of the planet at highest risk for strong earthquakes. In these places, special structural measures are necessary to secure the stability of buildings and the safety of occupants in the event of an earthquake. “Force is mass times acceleration” – the force an earthquake exerts upon buildings according to this rule of physics can be reduced by using low-net weight Ytong autoclaved aerated concrete blocks.

In areas affected by strong earthquakes, seismic forces are so strong that load-bearing masonry cannot be used. Load-bearing construction in these areas normally consists of a reinforced concrete skeleton frame. gaps are sealed with a non-load-bearing infill wall of Ytong AAC blocks. Additionally, the building material’s low net weight saves energy during transport, and the material’s low thermal conductivity makes it possible to pass on further insulation measures.

Fermacell gypsum fiberboards can be used in all earthquake zones in germany to build single-story and multistory timber panel buildings, as documented in the expanded national material approval certificate for Fermacell gypsum fiberboards in german earthquake zones, such as the Swabian Jura. Its low weight in timber construction creates less inertia in the event of an earthquake. Paneling with gypsum fiberboards prevents wooden boards from buckling or tipping over.

Soundproofing Increases Quality of Life

good soundproofing in buildings means a great deal for residents’ quality of life. Permanent noise, such as in multistory buildings with poorly insulated floors, can even make residents ill. For this reason, effective soundproofing has become a basic feature of modern buildings. Sound is transmitted when sound causes building elements such as walls and ceilings or the air in between to vibrate. The heavier the building materials are, the less sound is transmitted. Silka calcium silicate blocks’ high bulk density guarantees a high level of sound insulation that can even be compared to reinforced concrete. At the Xella Research and Development Center, we continue to research possibilities of increasing the bulk density of Silka products to improve their sound protection properties.

In comparison to conventional timber roofs, Ytong solid roofs offer significantly better sound protection properties. As a result, they decrease the level of noise pollution to which residents living in top-floor apartments near high-traffic roads or airport approach paths, etc.

The Fermacell flooring system offers construction solutions to improve the impact noise insulation of separating ceilings in multi-family houses. Fermacell also of-fers a honeycomb-patterned insulating system that contributes to effective sound insulation of wooden beamed ceilings.

High-Power Hydrates for Environmental Protection

Protection and restoration of an intact environment belong to the most impor-tant areas of use of Fels lime products today. For instance, the renaturation of lakes is a continuously important application of Fels limes. Even polluted soil can be remediated with Fels lime hydrates and the accompanying tech-nologies developed by Fels. Special Fels lime products serve to neutralize acids, fixate heavy metals, and support decomposition of toxins, such as those in waste from mineral oil refineries or mud from drilling holes.

Neutralizing waste gas emissions and wastewater with Fels lime productsWastewater from industry and waste gas emissions from incineration plants must also be treated with lime. For example, industrial water can be reintroduced to the water cycle following treatment with limewash. Even in sewage plants, lime provides valuable services by stabilizing the biological treatment process. Fels ap-plication technicians lead the way in Europe in adjusting sewage plant pH values. In waste incineration plants or in substitute fuel power plants, such as those in which energy is produced from garbage, highly active Fels lime hydrate removes toxins from waste gases. It is extremely powerful at separating acid-forming toxins such as sulfur oxides and chlorine water, and absorbs mercury, dioxines, and furans. With small amounts of hydrate, plant operators achieve outstanding scrub-bing results, and only a very minimal amount of residues remain to be disposed.

Customer Survey for more Satisfaction

Since 2008, Xella has conducted a regular survey on customer satisfaction and loyalty among customers of all important national divisions. In 2010, we used a follow-up measurement to perform the first evaluations of measures we had taken in Poland in response to the first wave of customer surveys. The results showed significant improvements between 2008 and 2010, especially in the field of com-plaint management, which respondents now rate as “very good”. In 2011, we were able to repeat this evaluation in further countries in order to early identify trends, for example, in the area of training offers.

Cooperation on national and international levelsCooperation with german and international external partners is very important to us. The goal: Exchanging ideas, expertise, and knowledge – and promoting sustainable building. We cooperate, for example, with the german Energy Agency (dena) in China. Examples of our cooperation with international institutes include agreements with France’s effinergie institute, Casa Clima agency in Italy’s South Tirol region, or the iepd passive house institute in Slovenia. In the Netherlands, we work with the Dutch Mirror Committee on developing European sustainability standards.

Find out more about renaturation of

post-mining lakes with Fels limes

starting on page 30.

Fermacell has earthquake expertise

As the first gypsum-based fiberboard manu-

facturer, building authorities have author-

ized Fermacell to perform dimensioning

activities in german seismic zones.

Field of Action Market Field of Action Market

| 14

50 Xella Sustainability Report 2012Xella Sustainability Report 2012 51

ProcessesResource Conservation in the Manufacturing Process

For Xella, sustainable building for the future means taking an all-encompassing look at questions of ecology and social compatibility. This means more than just making it possible to build energy-efficient buildings with our building materials. Right from raw material sourcing and to the manufacture of our products, we pay close attention to resource conservation and environmentally friendly, energy-saving processes.

Natural Raw Materials as the Basis for Sustainability

The most important components of all Xella products are natural raw materials. Sand, lime, and water form the basis of Ytong autoclaved aerated concrete, Silka calcium silicate blocks, Ytong Multipor mineral insulation boards, and Hebel compound units. Fermacell uses gypsum, one of the oldest raw materials for manu-facturing building materials. These basic materials can be found everywhere in nature. They are mined naturally, without disturbing nature’s balance. We use raw materials economically and draw on secondary raw materials whenever possible.

Environmentally-friendly building materials productionActing in an environmentally conscious manner is the utmost priority in the produc-tion of all Xella building materials. For example, white Ytong and Silka blocks are hardened at temperatures of 190°C in hardening chambers (autoclaves). Creating the necessary steam for this process requires a large amount of energy. For this reason, steam is used multiple times by being directly channeled from autoclave to autoclave or temporarily stored for use as required. Additional by-product heat from autoclaves is conveyed via heat exchangers and employed to heat process water, helping to save energy and avoid wastewater. If the energy level is not sufficient enough for production, by-product heat is used for indoor heating purposes. By doing so, just in germany we are able to achieve annual savings of approximately 3.0 million kWh of primary energy. That corresponds to the amount of energy required to heat 100 single-family homes for one year. At the same time, this approach helps to avoid approximately 600 tons of CO2 emissions resulting from natural gas use.

Water needed to manufacture autoclaved aerated concrete mostly comes from well systems located directly on-site. We use this water both to mix raw materials and create the steam needed for steam pressure hardening. A great deal of this steam condenses and is channeled back into the mixer. Our production equipment makes it possible to capture and reuse condensation, in part even completely. Additionally, we rely on condensed water in our sanitary facilities and all other areas where well water can be used. In some factories, this water is directly fed into the local wastewater disposal system. Even rainwater, as well as ground and fissure water from quarries, is employed in production or for washing processes. Water needed for saws is also always recycled.

Aerated concrete and calcium silicate block factories are always designed to make it possible to reuse all waste materials in production. Waste material remaining from the modeling process and other production leftovers are returned to the mixing process. In this respect, it’s a lot like making cookies: You simply knead and roll out whatever remains. Hardened AAC production waste is made into granulate (e. g. cat litter) or placed back in the mixer in ground form along with any dust produced in the process.

Manufacturing gypsum fiberboards without wasteFermacell gypsum fiberboards are made from gypsum, recycled paper, and water – and without any added binders – in a resource-saving process subject to strict quality controls. Within this manufacturing process, no waste is produced, raw materials remain in a practically infinite cycle of use, and production leftovers and wastewater are completely returned to production.

Another interesting environmental aspect: Although the gypsum needed to manufacture Fermacell boards does occur naturally, it also arises as an industrial by-product, such as in coal-fired power plants. During the coal burning process, flue gases form that are desulfurized using Fels lime. In the process, highly pure FgD gypsum is formed, which is used in the production of Fermacell. The material cycle is ideally rounded out by using recycled paper from Fels Recycling to manu-facture Fermacell gypsum fiberboards. Coal fly ash, also a secondary raw material from other production processes, replaces part of the energy-intensive cement in Fermacell Aestuver fire protection boards. Recovered glass is also used as foam glass, reducing product weight and transport costs.

Waste from gypsum fiberboards left over at building sites can be reintegrated into the production process if properly separated.

Optimized processes for processing limestoneBefore stones are mined, Fels performs geological surveys and plans optimal mining execution based on mineral deposit models. The result is the eco-logically and economically optimized exploitation of mineral deposits.

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A patented innovation project aims to continuously improve value creation associated with mined stones. Water in limestone washing systems is circulated, freeing smaller limestone grains from cohesive components such as silt. During the process, only five percent of the water used is lost because it adheres to stones – and only ten percent is lost by evaporation. The small amount of additional fresh water needed comes either from natural streams or company-owned deep wells. Filter cakes resulting from water treatment have so far been used for renaturation measures. In keeping with the project concept, a part of the filter cake is now being refined with lime and pressed into small pieces in the Hornberg lime factory. The resulting material is burned into a new product for the autoclaved aerated concrete industry in the Rübeland lime works’ kilns. This measure increases the degree to which we are able to exploit mineral deposits and the use of valuable resources.

Burned lime products are manufactured in large industrial kilns. Thanks to fuel process optimization and good heat recovery, these kilns achieve up to 85 percent thermal efficiency rates.

We have performed systematic noise reduction programs at all Fels production sites to decrease noise immissions in the immediate vicinity. With the help of digital models, we were able to identify and reduce the main sources of noise affecting our neighbours.

Quality assurance thanks to strict raw material controlsThe Xella Research and Development Center tests all raw materials needed in production for their suitability and purity. By doing so, we ensure that no toxic or unhealthy substances can contaminate processes or products.

Amounts of raw materials used In our three business units – building materials, lime, and dry lining – raw material consumption has increased alongside the amount produced. However, the amounts used, for instance, in building materials unit in 2011 lagged behind the increase in production year-on-year. This can be attributed both to a change in the product line-up as well as efficiency in raw materials use.

Finding and using resource conservation possibilitiesAt Xella, we’re currently working on a number of projects concerning resource conservation and recycling, such as our project in Chlumcany, Czech Republic – where we are able to save 5,000 tons of natural gypsum annually by using FgD gypsum from flue gas desulfurization. Another example: The Fermacell factory in Wijchen, the Netherlands. Since early 2012, this site has used recycled gypsum and the factory will likely save 16,000 tons of natural gypsum per year.

Saving Energy and CO2

Energy use data While production volume in the building materials segment increased in 2011 by approx. 6.9 percent over 2010, the amount of energy used grew by only approx. 4.2 percent. A number of individual measures – such as staff sensitization (e. g. Eni – energy-saving campaign), steps to reduce energy dissipation (e. g. addi-tional insulation of pipes and valves), more efficient use of steam, heat recovery, and investment in energy-efficient machines and installation – have all contributed to this result. Additionally, increased efficiency resulting from better capacity utilization in many production facilities has boosted success. Fermacell was also able to further optimize its specific fuel consumption via measures such as additional heat recovery systems and dryers.

Reusing steamFor decades, we’ve been reusing steam in the manufacture of Ytong and Silka blocks as part of a proven and optimized process. With vapor jets, we are trying to further improve energy yield from stored steam. Thanks to this technology, we have already been able to reduce energy consumption by more than three percent in our aerated concrete factory in Brück. We are currently investigating whether vapor jets can also be used in other production facilities.

Ecoloop receives Deutschen Innovationspreis für Klima und UmweltEcoloop is the name of the largest research project in company history and one of the largest publicly founded projects in the field of energy conversion in germany.

In January 2012, the Ecoloop received the Deutschen Innovationspreis für Klima und Umwelt (IKU, Innovation Award for Climate and Environment), which was awarded by the german Federal Ministry for the Environment, Nature Conservation and Nuclear Security and the Federation of german Industries (BDI) for the third time. Scientific evaluation was performed by the Fraunhofer Institute for Systems and Innovation Research ISI in Karlsruhe, germany.

The innovative process makes it possible to convert carbon carriers into highly pure synthesis gas. These substances include solid biomasses or problematic carbon carriers, such as plastics and deadwood. Thanks to this groundbreaking method, energy-intensive industries will be able to reduce their use of fossil fuels and improve their CO2 balance on a long-term basis.

Ecoloop benefits from lime’s high ability to bind toxins. Acidic toxins, such as hydrogen chloride, are bound to excess lime during their creation. This way, toxic substances such as dioxines and furans are avoided from the outset. These dangerous toxins only form when carbon carriers are burned in the presence of oxygen, which would make sophisticated scrubbing of flue gases necessary. Since no oxygen is available during the stage of produc-tion in question, the creation of these toxic substances isn’t possible.

2009

2010

2011

Building Materials Raw Materials Usein millions of tons

0 1 2 3 4

5.07

5.30 1.45

5.65 1.55

1.35

Sand

Binders

2009

2010

2011

6.9

7.6

8.4

Limestone Extractionin millions of tons

Fermacell Raw Materials Use

Binders in kilotons Light concrete aggregatesin thousand m³

Fibersin kilotons

of which paperin kilotons

of which alternative fibersin kilotons

0

404.1

73.6 80.7 86.5

12.3 20.0 22.7

67.3 72.0 77.8

6.3 8.7 8.7

345.5 367.2

20102009

2011

Energy Consumption in gWh

2009 2010 2011

Building materials

Fuel 862* 1,265 1,320

Electrical energy 139* 188 194

FelsFuel 2,253 2,437 2,674

Electrical energy 146 158 165

FermacellFuel 209 224 239

Electrical energy 50 53 56

* does not include all production facilities (i. e. in construction or acquisitions).

Innovation award for climate and environment

On January 17, 2012, Ecoloop received the

Deutschen Innovationspreis für Klima und

Umwelt.

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The advantages for climate and environment are convincing: The entire process is a closed system without any additional emissions being released into the environ-ment or the soil and water being negatively affected. Problematic substances are converted economically into valuable energy and resources are conserved.

During 2012, the Ecoloop facility in germany’s Upper Harz region will start producing synthesis gas and make a contribution to one lime factory’s fuel needs.

Increasing energy efficiency on the large and small scaleAt Xella, we’re working on a number of large and small projects surrounding energy efficiency and climate protection. A few examples: At various Eastern European operating sites, we have optimized our autoclaves and the use of steam. Thanks to these measures, we are saving nearly 9,000 tons of CO2 an-nually. Optimization of compressed air systems in the Fels factories in 2010 and 2011 resulted electric energy savings of five percent. Better insulation of heat-carrying installation parts, elimination of leaks in auxiliary equipment, as well as organizational improvements helped the calcium silicate block factory in Nievenheim (germany) reduce its specific energy use by 25 percent. The installa-tion of an energy-saving fluidized bed dryer instead of an energy-intensive drum dryer in the Loosdorf (germany) aerated concrete factory resulted in fuel savings of 15 percent. This project is being continued in further factories worldwide.

Fels-Werke participates in emissions trading Until now, Xella building materials and Fermacell factories were not required to report balance over their greenhouse gases. Only Fels, who participates in the EU Emissions Trading System, has to prepare annual emissions reports. For this reason, only figures for Fels-Werke are listed here.

The Fels-Werke, and starting in 2013, the Fermacell factory in Münchehof (germany), are required to participate in emissions trading. Both facilities must therefore disclose their CO2 emissions to government agencies and the public. In 2011, the CO2 emissions of the Fels-Werke totaled 2.5 million tons, of which approx. 2.38 mil-lion tons resulted from the fuel process (sum of CO2 generation from both fuel and limestone deacidification) and 0.095 million tons resulted indirectly from use of electricity.

Developing a waste reporting system at XellaCurrently, we are working on developing a waste reporting system across all Xella factories. The aim is to establish relevant concepts in all Xella production facilities and reduce the annual amount of waste. Even today, some of our factories are already able to use a great deal of their waste. Fels was able to reuse 904 tons out of 1,676 tons of its material and thermal waste. Licensed waste management compa-nies dispose other waste products, such as motor oil, gear oil, and batteries.

Internal and external certifications provide securityAll Xella group factories have an EHS management system or a quality manage-ment system. Corresponding audits or benchmarks can be found at all production facilities. Some factories additionally have external certifications. 23 percent of our production facilities have external environmental certification in accordance with DIN EN ISO 14001, and 96 percent have quality certification in accordance with DIN  EN ISO 9001. Currently, two percent of our factories have occupation safety certification in accordance with DIN ISO 18001 or other local regulations.

In August 2010, the Xella production facility in Shanghai was the first in China to receive environmental certification in accordance with DIN EN ISO 14001.

Many Xella products have been awarded a wide range of seals of approval and certificates for their environmentally friendly and health protecting properties as well as for the sustainability of their production processes.

Due diligence analysis creates clarityIn 2008, all Xella group factories were subject to a due diligence audit. For the most part, this audit dealt with compliance topics and examined the environmental quality of each site and its buildings and equipment. This audit’s objective was to identify critical environmental topics in production sites as well as to examine whether pro-duction facilities have all necessary approvals and fully comply with environmental and labor laws. Since then, these inspections have taken place on a continuous basis. The first control check took place in 2010 and showed significant improvement.

Defects resulting from faulty calcium silicate blocksIn 2011, following a first report in 2007, the media reported on faulty buildings and properties made from calcium silicate blocks manufactured between 1987 and 1996 in the three factories in Issum, Kalscheuren, and Ratingen. All three factories were closed in the late nineties due to declining building activity. The defects, which appear as cracks or deformations, can occur when blocks are subject to permanent moisture penetration. Independent evaluations have confirmed that occupants do not face danger from buildings made from the faulty blocks. According to existing evalua-tions, it is possible to rule out the risk ofsudden structural collapse.

Following the sale of Xella in 2008, former owner Haniel bears financial responsibility for defects resulting from these faulty calcium silicate blocks. However, we are aware of our responsibility as the Haniel factories’ legal successor and support Haniel in settling damages on a goodwill basis. By the end of 2011, around 1,300 property own-ers had requested home inspection regarding possible defects or reported damages to their homes via a special hotline or e-mail.

2009

2010

2011

Emissionsin millions of tons of CO2

0

0.085

0.091

0.095

1.96

2.38

2.19

Indirectly via electricity

Directly via fuel process

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green Logistics

Getting tons of raw materials from A to BThousands of tons of sand, lime and cement are processed every year in our aerated concrete and calcium silicate block factories, not to mention the consump-tion of gypsum and paper at Fermacell. Transporting these raw materials in an environmentally friendly and economical manner is a great challenge. We strive to keep transportation distances as short as possible for environmental and economi-cal reasons and therefore prefer local suppliers. Starting with the selection of a future production site, we make sure that we can source the necessary raw materials at a close distance from local suppliers. Lime and cement usually have to be transported 50 to 150 kilo meters to each Xella production facility. Sand should be available close to each factory. But even the finished products shouldn’t have to go too far. For example, in bulding materials unit transportation distances from Xella production facilities to customers is usually approx. 50 to 200 kilometers. Whenever possible and reasonable, we ship per rail or inland waterways, such as for transport from the Fermacell factory in the Netherlands.

Optimizing routes, avoiding deadheads There’s often no way to avoid shipping per truck, for example, by transportation to building sites. In these cases, we make sure to load trucks to the max and optimize routes to keep the number of trips as low as possible. For inner-german orders with just a few tons of material, we try to combine routes to include several delivery sites. We use our Tysis logistics system for all Fermacell customer orders to assist optimal route planning.

Since 2011, Fermacell has had set delivery dates for certain regions of germany. As a result, we can simultaneously make prompt deliveries and use trucking capacities better, thereby helping to reduce the strain on the environment. Our goal is to increase load use in 2012 by at least ten percent, eliminating the need for nearly every fifth truck journey with partial load. To reduce deadheads, Fermacell operates the “Transporeon” logistics platform to offer our shipping companies transports for which there are no specific contractual partners.

From the roads to the railsSince 2005, 40 percent of all lime transports from Fels to the customer have been done by rail – and the trend points upwards. Reliability plays an elementary role, especially in relevant sectors such as the steel and energy industries, which need lime for flue gas desulfurization. Thanks to tracking systems, it is possible to deliver the quantities customers need directly into the production process, providing for efficient shipping and resource conservation.

Ytong products have been transported from germany to Scandinavia by rail since 2009. As a result, we’ve been able to significantly reduce transportation-related primary energy use for all deliveries transferred to rail transportation and improve our carbon footprint. One impressive example: Shipping by rail from Rotenburg, germany to Norrköping, Sweden saves 79 percent primary energy and reduces CO2 emissions by 88 percent in comparison to shipping by road.

Due to lack of side tracks, complete rail transport for Fermacell is only possible in one of the four factories. Starting in 2012, the Fermacell factory in Münchehof (germany) will be able to completely supply the Danish warehouse in Vandrup by rail. As a result, 500 truck runs per year will be diverted from the roads to the rails, reducing CO2 emissions from 250 to 100 tons and cutting particulate emission in half.

Since 2011, Fermacell deliveries to Northern Italy have been carried out using mixed transportation on a test basis. Only the first leg to the terminal in Neuss and the usually short stretch from Milan to the delivery site are still done via road transport. Most of the transportation distance is bridged via rail. In 2012, it will already be possible to shift around 8,000 tons – or 50 percent of all sales to Italy – to the rails, saving 300 tons of CO2.

Code of conduct for suppliersXella group’s Central Purchasing Department is currently working on a global Xella code of conduct for suppliers. As part of the project, suppliers are asked about their active sustainability policies, ongoing projects, and activities for environmental protection, as well as their handling of human rights issues. Suppliers are then evaluated based on their answers. The code of conduct for suppliers is set to become an established part of the Xella organization by mid-2013.

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Recycling on the building siteFor Xella, protecting the environment doesn’t stop once our products have left the factory. Even on the building site, recycling options are used to the greatest extent possible. In germany, Xella has signed a recycling contract with Interseroh for the disposal of Ytong and Ytong Multipor packaging film. At the customer’s request, Interseroh supplies recycling containers for packaging disposal directly to the building site. Thanks to this measure, 437.76 tons of CO2 were saved in 2010 alone. Interseroh is the only packaging take-back service provider with the premium service seal of approval from TÜV Rheinland. Packaging materials from hardware stores are recycled as part of “Der grüne Punkt – Duales System Deutschland” program.

If properly gathered and separated, AAC waste left over at building sites as cut-ting scraps or following demolition can be further processed in Xella’s granulate factories. The undersized grains created in this process are then used, for example, in our aerated concrete factories as a substitute for sand, saving around 50,000 tons of sand annually. Recycling leftovers can also be used in other applications, such as insulating and leveling compounds.

As part of the “Depositing and Recycling Autoclaved Aerated Concrete” project, we are currently investigating how recycled materials from AAC can be used as an additive in ongoing production. The quality of AAC recycling products is a decisive criterion and will be examined carefully before the material is reintroduced into the production process.

Resource conservation in administration and salesWe are working on optimizing our vehicle fleet to the greatest extent possible. Our goal is to use the most environmentally friendly drive technologies and fuels possible, and to educate our employees how to drive economically. Currently, we are reworking our company car scheme with an emphasis on reducing CO2 emissions. Consistent application of these new guidelines starting in 2012 will markedly reduce CO2 emissions for our 425 german company cars which are mainly fueled by diesel. At present, these cars emit 155 g/km of CO2 on average.

Investing in occupational safety and environmental protectionAnnual expenditures for EHS are greatly dependent on individual projects and are therefore subject to great fluctuation. These projects range from continued develop-ment of products and methods to replacements due to wear and tear or changes in law. Acquisitions and new constructions with different investment volumes must also be taken into consideration. Investments in EHS in the Xella group in 2011 totaled EUR 1.742 million (2010: EUR 2.650 million). Investments are set to increase significantly again in 2012.

Punctual customer delivery of the Fels-Werke gmbH’s natural products is a challenge of its own.

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StaffThe Key to Success

guiding Principles

As innovative and unique as our products may be, no company can succeed without committed, competent people to work for it. Our staff’s dedication and qualification is critical for the success of the Xella Group. Human Resources Management (HRM) therefore has the important task of creating organizational and staff structures to help our employees develop on a personal and professional level so they can live up to their potential.

We strive to be an attractive employer that not only has the right people in the right place at the right time, but also manages to employ its staff members according to their personal abilities and offer them long-term development opportunities. To do so, our HRM offers employees tailored continuing education and training courses, as well as a wide range of measures designed to promote employee satisfaction and loyalty.

HR Management throughout the group

Staff figures*

Our staff figures differentiate between business units, functional areas, and regions.

As of December 31, 2011, Xella employed 7,297 people worldwide, an increase of 190 staff members or 2.7 percent compared to the previous year. Since 2009, staff numbers within the group have remained nearly constant.

Number of Staff Members by Business Unit

2009 2010 2011Change

2011/2010 in %

Building materials 5,564 5,460 5,568 +2.0

Lime 1,061 1,062 1,094 +3.0

Dry lining 571 585 635 +8.5

Xella Group 7,196 7,107 7,297 +2.7

* The following overviews are based on actual staff numbers (headcount) and have not been converted for full-time staff members.

According to these figures, 76.3 percent of staff members worked for Xella building materials, 15.0 percent for Fels, and 8.7 percent for Fermacell at the end of 2011. Both 2010 and 2009 saw similar percentages.

The ratio of full-time to part-time staff members in the Xella group has remained nearly unchanged throughout the past three years. At the end of 2011, we employed 6,970 full-time and 327 part-time staff members, corresponding to 95.5 percent and 4.5 percent respectively.

Number of Staff Members by Functional Area

2009 2010 2011Change

2011/2010 in %

Production 4,790 4,820 5,000 +3.7

Sales 1,404 1,448 1,473 +1.7

Administration 1,002 839 824 –1.8

Xella Group 7,196 7,107 7,297 +2.7

At the end of 2011, 68.5 percent of our employees worked in production, whereas 11.3 percent were employed in administration. This ratio has changed slightly in the past three years: While the percentage of staff members employed in produc-tion has increased somewhat since 2009 (2010 = 67.8 percent, 2009 = 66.6 percent), the share of staff members fulfilling administrative duties fell during the same period (2010 = 11.8 percent, 2009 = 13.9 percent). The percentage of staff members employed in sales has remained nearly constant at 20 percent.

Number of Staff Members by Region

2009 2010 2011Change

2011/2010 in %

germany 2,885 2,854 2,923 +2.4

Rest of Europe 3,554 3,535 3,662 +3.6

Asia 522 561 560 –0.2

North and Central America 235 157 152 –3.2

Xella Group 7,196 7,107 7,297 +2.7

Xella has factories as well as sales and marketing organizations in approximately 30 countries. The majority of our staff is employed in Europe, with approximately 40 percent of our employees working in germany. Around 50 percent of our staff is in the rest of Europe, eight percent is in Asia, and two percent is in North and Central America. These ratios are valid for 2011 and both previous years.

Staff Fluctuation and Average Period of Employment

2009 2010 2011

Fluctuation in %

Avg. period of employment in

yearsFluctuation

in %

Avg. period of employment in

yearsFluctuation

in %

Avg. period of employment in

years

Building materials 14.8 13.3 9.0 13.4 7.0 13.6

Lime 3.0 19.7 5.4 19.9 4.7 19.7

Dry lining 2.4 11.3 3.6 11.5 3.4 11.6

Xella Group 12.3 14.1 8.1 14.2 6.4 14.3

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In 2011, the group-wide fluctuation rate was 6.4 percent, representing a constant decrease when compared to the two previous years. The fluctuation rate is the ratio of the number of employees leaving the company (excluding retirements) to the average number of full-time staff members with permanent working contracts. Per-manent working contracts accounted for 94.5 percent of employment relationships in the Xella group by the end of 2011 (2010 = 93.9 percent, 2009 = 95.5 percent).

As of December 31, 2011, the average period of employment for Xella group staff members was 14.3 years.

Equal opportunitiesAs an internationally active company, we offer staff members of different national and ethnic backgrounds, skin colors, and genders equal opportunities. Our goal is achieve success together: We can only achieve this goal by treating each other with trust, fairness, and respect that go beyond all borders.

As of December 31, 2011, the Xella group employed 160 people with disabilities, corresponding to 2.2 percent of its staff (2010 = 1.8 percent, 2009 = 1.9 percent).

On a group-wide basis, the proportion of female staff members has remained con-stant over the past three years at approximately 17 percent, due mainly to the fact that the majority of staff members in production – the area with the largest number of employees – are men, as is usual in the building materials industry.

By the end of 2011, the proportion of women in executive positions throughout the group was approximately six percent (2010 = approx. six percent, 2009 = approx. five percent). Although we decided not to set a target of a minimum percentage of women in executive positions, we intend to increase this proportion on a long-term basis and are already working on appropriate measures to achieve this goal. One specific measure is the goal-oriented preparation of women for executive responsi-bility via our management development programs. In our currently ongoing Junior Management program, women make up 28.9 percent of participants.

Age Structure as of December 31, 2011

Age in years 20 and under 21–30 31–40 41–50 51–60 Over 60 Total

Xella Group 98 1,058 1,683 2,301 1,861 296 7,297

At the end of 2011, 31.5 percent of all staff members – the largest percentage – were between 41 and 50 years old. The proportion of staff members over the age of 50 was 29.6 percent. Careful succession planning is particularly necessary for this age segment. We continue to work on giving younger staff members the necessary qualifications so that they can effortlessly take over important functions within the group at a later point in time.

Knowledge Management

Knowledge is power In a globalized world, knowledge is a decisive competitive factor. With our specialized knowledge and innovative power, we stand out from our international competitors. “Xella IdeaFactory”, a software tool for structured brainstorming, supports us in staying one step ahead. Behind this innovation platform is the belief that the knowledge and ideas we need for innovations can be found within our company – in the hearts and minds of our employees. IdeaFactory is available to all Xella staff members and external partners worldwide. “IdeaFactory is a fun-to-use tool that motivates participants,” says Antal Szabó, Head of International Innovation Manage-ment. “The platform is a place to collect, share, evaluate, and develop ideas.”

Sales training for Ytong Multipor sales staff is a fascinating new instrument we introduced in germany and Austria in mid-2011. Under the name “Digital Sales Training”, this e-learning tool currently offers four modules with basic knowledge for sales staff and expert knowledge for specialists.

Transferring knowledge from employee to employee Since 2011, staff members have been training other staff members in various subjects under the motto “Xellanians train Xellanians”. “SAP HR – Tips and Tricks” or “Project Management” are just two of the many seminars in which employees share their Xella-specific knowledge with their colleagues. Workshops are organized to provide tutors with optimal preparation for their job as multipliers of knowledge. The transfer of knowledge from employee to employee doesn’t just make good business sense, it’s also enjoyable and strengthens identification with the company. Plans are on hand to expand these tutorial offerings for all Xella staff.

We also communicate with employees via our Intranet portal, newsletter, circulars, and our staff magazine “Milestones”.

Education

Education secures the futureEducating young staff members is an important aspect of sustainability. Besides covering short-term and mid-term demands for qualified workers, Xella also takes long-term succession into account. A lack of qualified workers on the job market and imminent demographic changes demand forward-looking HR planning today. At Xella Deutschland gmbH, for instance, the average employee is roughly 45 years old and has been with the company for approximately 16 years. On the one hand, this means extensive experience, a high degree of expertise, and strong identification with the company. On the other hand, this also means that we face the challenge of having to change generations step-by-step without losing the know-how of long-time, experienced staff members.

Field of Action StaffField of Action Staff

17.2 17.417.3

XXXX

XXXX

XXXX

XXXXXX

Female Staff Membersin %

Xella Group

201120102009

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To meet this challenge, we developed a system for determining training and suc-cession planning demands in 2010. Based on our findings, we introduced annual HR planning rounds in 2011 to evaluate factors such as quantitative HR needs for different locations, qualification demands, age structure, and overtime factors. We then use these results to determine our HR measures.

HR Development and further Education

Talent management at every levelIn 2011, Xella started a systematic HR development plan based on objectives set in HR planning rounds. Xella Campus, the framework for our company’s own advanced training concept, serves as the foundation for organizing talent management. It is where seminars, training sessions, and worldwide development programs are coor-dinated both operatively and strategically. In 2011, the special focus of Xella Campus was young management professionals: At 14 assessment centers, we systematically analyzed and evaluated the management abilities of 90 high-potential individuals from 23 countries. Based on the results, we were able to determine the participants’ career paths as well as their eligibility to participate in the Junior Management or Management programs. Both programs start in May 2012 in cooperation with inter-nationally recognized educational partners and business schools.

Specialist excellenceWe are very interested in offering our specialists opportunities for advancement, even if they aren’t looking to take over leadership positions with personnel respon-sibility. For us, executive and specialist careers are of equal value and deserve the same amount of recognition.

In 2011, we identified 70 specialists who will participate in the first courses of our new Specialist Excellence program in 2012.

Determining individual training needsSince 2010, Xella has been conducting planning discussions in germany to deter-mine HR development needs. Department heads and the HR department meet to determine training needs for each team. On this basis, Xella’s HR development can plan and book seminars, especially from the Xella Campus’ seminar offerings. HR development meetings will continue to expand in 2012.

Successful training conceptsIn addition to seminars (“Auditorium”) for improving soft skills – such as com-munication, presentation, leadership, or conflict management – and Xella-relevant specialized topics, we placed a special focus on developing customized product and sales trainings (“Sales Excellence”) in 2011.

Our energy advisor training has been enjoying great success since the Xella Research and Development Center started offering Xella sales staff in germany and other European countries as well as external specialists this unique opportunity in 2009.

We continue to work on improving the quality of our HR development. To do so, we are currently developing an evaluation system to serve as a long-term feedback instrument for our training concept, ensuring constant quality control.

Pilot project in ChinaThe ongoing trainee program in cooperation with our Chinese subsidiary is a challenging pilot project. As part of a project, local participants receive the opportunity to work both in germany and China, giving them a deeper understanding of intercultural connections and country-specific processes. Following the trainee program, these young employees will continue to work for Xella in China and use their experiences to influence local business practices in a constructive manner.

Field of Action StaffField of Action Staff

We offer the following types of vocational training:

Office administrator, industrial clerk,

management assistant in office communica-

tion, industrial electronics technician,

industrial mechanic, mechatronic technician,

process mechanic, machine and equipment

operator.

Combinations of college education and

vocational training, such as a Bachelor of

Arts degree in Business Administration.

At the end of 2011, 124 young people were

receiving their vocational training in the Xella

group’s german companies.

AC – Junior Managers

Here’s how staff development works at Xella

Management ExcellenceAdvanced Management Skillsp Development of leadership skillsp Developing and realizing

strategiesp Value-oriented management

Specialist ExcellenceExpert specialization seminars p Platform for exchanging

experiences with other Xella group experts

p Development of specialist knowledge

AC – Managers

Performance MatrixNomination of high potential individuals for

managerial or specialist positions

Individual Training Measures

Auditoriuminternal /external

specialist seminars

Kolloquim(team) coaching

TutoriumXellanians train

Xellanians

SalesExcellence

Employee Assessment

Round Table Specialist Careers

Xella Campus

Our staff advancement program

At regular intervals, staff members meet

with supervisors to devise a tailored plan

for their further education and training.

These meetings can lead to special training

measures or nomination for executive or

specialist positions.

Training measures build upon each other

systematically and promote each staff

member according to their level of develop-

ment.

Junior ManagementBasic Management Skillsp Preparation for first

leadership dutiesp Development of communicative

and project management skills

Executive Excellence

Senior Management Excellence

Sales EXcellence@Xella is the initiative that

offers individual seminars and workshops for

Xella group sales departments on a

worldwide basis.

Find out more about our energy advisor

training program starting on page 32.

European job rotation

Our 2011 employee exchange program

between germany and the Czech Republic

was a great success. The pilot project

made an important contribution towards

shaping our future Job Rotation Program,

and the participants brought valuable

impulses into their exchange departments.

All parties involved acquired extensive

knowledge and insights.

66 Xella Sustainability Report 2012Xella Sustainability Report 2012 67

Health and Safety on the Job

The entire Xella group is committed to health and safety at work. Besides fulfilling all legal requirements, we take a wide range of voluntary measures to guarantee safe and environmentally friendly processes, especially in production.

Taking responsibilityMany of our facilities employ the same or similar technology. Even though there’s no way to completely rule out the possibility of on-the-job accidents ever occurring, we’re making a contribution towards reducing the number of accidents with me-ticulous analysis. Worldwide, safety specialists regularly inspect all our facilities, and we continue to refine the methods of recording and appraising accidents.

Additionally, we regularly perform exhaustive environmental and safety audits at all Xella facilities to prevent harm to individuals and the environment. Our commit-ment to health and safety on the job also includes specific measures – such as driver training for external trucking companies on loading safety, fire drills, and fire prevention exercises.

Our efforts are bearing fruit: The number of on-the-job accidents has continually decreased in the last ten years. To support health protection, we are currently working with health insurance providers to develop a company health manage-ment concept to be implemented in Xella’s offices and factories in germany. The program includes exercise and relaxation programs, as well as medical checkups that staff members can take advantage on a preventative basis. Fels and Fermacell both have work agreements on workplace health promotion.

Company Benefits

Company benefits are usually regulated by wage agreements. Xella also offers its staff members additional attractive benefits, such as a deferred compensation option available to employees throughout germany since 2007. With the deferred compensation plan, a portion of an employee’s pay is set aside to build up pension capital for their retirement. Xella pays these employees an additional 20 percent contribution on the deferred amount.

Since 2011, the Xella group in germany has been making employees yet another great offer: The employee bonus loan. This loan is an employee investment that staff members can make. The investment has a fixed six-year term and is rewarded with a one-time asset-formation benefit payment. Xella also pays six percent annual interest on the entire sum throughout its term.

To offer employees professional assistance with child care, caring for family mem-bers, or just coping with tough times, Xella began cooperating with pme Familien-service in 2011. As part of an overall concept, staff members can get support in a wide range of life situations without their employer having to know about it.

Field of Action StaffField of Action Staff

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Since 2011, Xella has offered seminars and tutorials led by staff members for staff members.| 16

68 Xella Sustainability Report 2012Xella Sustainability Report 2012 69Field of Action ComplianceField of Action Compliance

Compliance means more than just playing by the rules. The term compliance goes much further and also means creating organizational structures within the company that ensure taking the right steps and fulfilling stakeholder expectations. With this in mind, Xella is revising its entire compliance organization and structure to better live up to increased standards.

New Compliance Organization Structure

In 2011, we started completely reworking Xella’s existing Code of Conduct to give the entire Xella group a uniform set of rules. While working on a revised code, we worked with business consultants of Ernst & Young on creating a structured compliance organization. To develop and implement our compliance organization, we established the Corporate Compliance Board, which involves the heads of Internal Audit as well as Legal and Insurance. A central Compliance Committee and local compliance officers support the process to help us implement an efficient system for monitoring the compliance structure. We started establishing the compliance organization in early 2012, a process that will likely take at least a year to complete.

Staff compliance trainingXella is active in a highly competitive market. Antitrust compliance plays a particularly important role in our business. For years, we’ve conducted regular staff training sessions about antitrust compliance to support secure handling of antitrust issues, such as the correct way to deal with competitors or suppliers. Anti-corruption training has been part of the curriculum since 2011.

The most recent compliance training series took place in 2011 and included anti-trust and anti-corruption compliance. Approximately 200 Xella employees from germany and around Europe took part. Although these training sessions usually take place face-to-face, we plan to use further training methods, such as computer-supported learning. We also aim to gradually expand our compliance training program to include further topics.

Dealing with compliance casesNeither Legal and Insurance nor Internal Audit are aware of any compliance- relevant events in 2010 and 2011. In the past few years, Xella has not been subject to penalties of notable value, such as fines for anti-trust violations or corruption. Xella paid small fines for violation of public law in certain countries such as in Russia. In isolated cases, Sales and Purchasing staff have turned to the Legal and Insurance or Internal Audit to ask questions about accepting or offering invitations or gifts. The Code of Conduct contains guidelines on dealing with compliance cases that can be supplemented in the coming years as required.

Protecting personal dataXella is aware of its responsibility and obligations to protect personal data and train its staff about data protection and dealing with sensitive data in a manner complying with legal requirements. The group has appointed a central data protection officer for all of its german companies with structures subject to data protection regulations. This data protection officer works within the group holding and has direct access to the CEO of the entire Xella group. He conducts regular training sessions for specific staff groups and serves as the main point of contact for all data protection topics across the holding.

Bearing national data protection guidelines in mind, the remaining regional Xella group companies have established similar structures within their own companies. However, a binding corporate rule on an international basis is not yet established.

Neither public nor private entities have so far filed complaints with our german data protection officer.

Securing value through risk managementThe aim of Xella group’s risk management system is to assess all risks in connection with overriding corporate goals – value orientation and growth – in a forward-looking manner. Xella group’s corporate management is responsible for recognizing, commu-nicating, and addressing risks early. The CFO bears responsibility for the risk manage-ment system and has the right to make decisions. Xella group has appointed the Head of Controlling as its risk management officer. The Risk Management Board – consisting of group management, the Head of Internal Audit, the Head of Legal and Insurance, and the risk management officer – addresses the most significant risks recorded in a group-wide risk identification process. All measures serve to uphold the success and corporate values of the Xella group.

Working in committees and organizationsAs a member of different national and European interest groups and platforms, not to mention various technical panels and committees, Xella is actively involved in political decision-making processes, both in germany and the rest of Europe. Further more, Xella works with well-known universities and research institutes, such as the Fraunhofer-gesellschaft.

Compliance More Than Just Sticking to Rules and Regulations

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70 Xella Sustainability Report 2012Xella Sustainability Report 2012 71

Xella supports a wide range of selected national and international social, educa-tional, and cultural projects, and assists humanitarian missions by donating materials and consulting services free of charge. As one of the founding members of the “Stiftung 2°” Foundation, we are directly involved in the climate protection debate and openly offer our know-how to help find solutions.

With their expertise and sense of social responsibility, german companies can be frontrunners in limiting global warming to 2 °C compared to pre-industrialization levels. Xella plays an active role in these efforts.

2° Initiative – german Coperations for Climate Protection

The 2° Initiative: 12 committed german companies from various business back-grounds, including Xella International, have united to give climate protection a common voice. Founded in the run-up to the 2007 g8 Summit in Heiligendamm , germany, the initiative‘s aim is to win german companies over for climate protection and to support political efforts towards creating the necessary free-enterprise conditions.

According to the 2° Initiative, climate protection is the main challenge of the 21st century. That’s why it calls for the reduction of greenhouse gas emissions, expansion of renewable energy, and increased energy and resource efficiency – all topics which Xella has been committed to for decades. german companies are technological pioneers in many different areas. There must be some way of adapting these technologies so that people in emerging and developing countries can also use them. To do so, business and politics will have to work closely together towards a common goal in an intelligent manner. Investing in infrastructure – power grids, mobility, buildings – is just as important as internationally financing climate protec-tion measures intended to create an environmentally conscious economy in both industrial and developing countries.

“Stiftung 2°” Foundation – taking steps towards sustainable solutionsBased on the 2° Initiative, CEOs and general managers from six german companies – Deutsche Bahn, EWE, M+W group, Otto group, PUMA, and Xella – established the non-profit “Stiftung 2°” Foundation in February 2011. The founders’ aim is to actively take on responsibility and develop – together with scientific, social, and political com-munities – long-term solutions for climate protection and sustainable use of natural resources and environmental systems. The foundation serves as a platform to support European and global policy making. Its intent is to highlight entrepreneurial problem-

Initiative for sustainability

Six german companies founded the

non-profit “Stiftung 2°” Foundation in

February 2011. The founding members are:

Deutsche Bahn, EWE, M+W group, Otto

group, Puma, and Xella.

Helping with a Plan

Xella supports Plan International

Deutschland e. V., one of the oldest and

largest children’s aid charities, with financial

donations. The goal: Sustainably ensuring

children’s survival in Africa, Asia, and Latin

America.

solving skills and contribute to making climate protection an elemental part of society. The founding team comes from various industries and therefore has extensive, cross-sector knowledge and experience. According to Xella group CEO Jan Buck Emden: “Climate protection can only be successful if businesses from all sectors contribute their expertise towards coming up with a solution. By pool-ing our climate protection expertise in the “Stiftung 2°” Foundation, we’re looking to point the way towards this goal.”

Local Charitable Commitment

Xella is financially involved in various local non-profit initiatives in Duisburg, Mülheim and Oberhausen, including the Kinder- und Jugendtisch (children’s food bank) – which supplies roughly 21,000 young people with regular meals and offers them educational, cultural, and counseling services – and the Telefonseelsorge Duisburg (Duisburg crisis line) with its 120 volunteers. We also support the Duisburger Tafel homeless charity and the St. Josef children’s home, which takes care of children, teenagers, and young adults from troubled families. Xella makes additional contri-butions to other organizations, including sport clubs and religious charities.

One example of Xella’s commitment to culture is our support of the Opekta associa-tion in Cologne, which created 15 new ateliers for german and international artists. Xella helped the organization with donations in kind and financial support. Since 2006, Xella has supported a unique project in Duisburg that aims to increase the safety of athletes, especially women and children: The Regattabahn running track. The track, one of Duisburg’s most popular places for jogging and walking, is kept lit until 10:00 p. m. in the dark time of the year, thanks to Xella’s substantial financial support.

Sustainably ensuring the survival of children in developing countries Since 2004, Xella Deutschland’s works councils have collected money for non-profit projects at their annual assembly. Company management then doubles the money collected for Plan International Deutschland e. V., which goes to benefit a wide range of projects, such as sponsorship of childrens by Xella. The organiza-tion uses donations to build schools and community centers, to finance educa-tion and scholarships, and to provide school supplies for sponsored children.

Helping in word and deed Xella supports many humanitarian and social projects with donations in kind and consulting services. Organizations can use our products, for example, to rebuild build-ings destroyed in environmental disasters, such as floods or forest fires. In 2010, Xella helped rebuild Russian villages that had been ravished by devastating forest fires by supplying Ytong building materials at especially low prices and by providing advice and free technical services. Xella offered similar support in Slovakia after wide areas of the country were destroyed by floods. In the Bosnian city of Tuzla, Xella gave materials free of charge to help build the day care center Hoffnungsschritte (Steps of hope) that offers children with disabilities various therapies.

Field of Action Corporate CitizenshipField of Action Corporate Citizenship

Corporate CitizenshipNational and International Activities

72 Xella Sustainability Report 2012Xella Sustainability Report 2012 73

Xella’s Commitment to Promoting Young People

Xella believes in supporting and promoting young people. For many years, we’ve strategically concentrated our commitment on training and supporting young specialists with money and knowledge. To realize this goal, Xella supports various educational institutes, stages competitions, and sponsors special projects.

Fermacell supports the Master’s Program in Timber Construction for architects at the Hochschule Rosenheim (Rosenheim University of Applied Sciences) Since the Rosenheim University of Applied Science launched the Master’s program in Timber Construction in 2007, Fermacell has been involved as a financial sponsor and has provided its specialists for lectures. Our mutual goal is to establish Timber Construction as an important educational focus point at the Rosenheim University of Applied Sciences on a long-term basis. The program is directed mainly at planners and architects. It seeks to impart extensive expertise about wood as a building material as well as current knowledge on structural physics, the possibilities of modern building technology, as well as energy efficiency and ecology assessment.

Supporting Stuttgart’s SteinbeisschuleFor years, Fermacell has supported the Steinbeisschule in Stuttgart, which offers a wide range of educational and qualification programs in the fields of structural engineering, environmental protection, and media. In their first school year trainees built a boat out of cement using Fermacell Powerpanel H2O boards, which they entered into the 2011 Betonbootregatta (cement boat regatta) in Magdeburg. As in prior years, Fermacell provided free materials needed to build the boat.

Competing with creativityIn 2011/2012, Xella Deutschland tendered its renowned student prize for the architects of tomorrow for the 26th time. This year’s theme: “In the heart of the city”. Twenty-three university chairs each submitted five concepts for redeveloping the area situated between Munich’s main train station and the Stachus square. Xella arranged a first-class board of specialists to secure the competition’s quality and make sure that important current debates and challenges are integrated into the competition’s tasks. Additionally, the board strengthens connections and communication between various faculties of architecture throughout germany.

The Xella group companies in the Czech Republic and Slovakia can also look back at a long tradition of prize patronage. For 16 years, both group companies have conducted architecture competitions – and for eight years, have organized a competition together, taking turns at the helm. In 2010/2011, 68 participants working in 48 projects designed a new concert hall to expand the existing Czech Radio Plzen building. The motto of this 16th student competition: “Talking about music is like dancing about architec-ture”. The jury consists of internationally known architects from the Czech Republic and Slovakia.

The goal of these competitions is to get architecture students excited about demanding and challenging construction projects while bridging the gap between practical experi-ence and theoretical knowledge.

First prize in the 2009/2010 student competition: Concept for a new museum for the “Old Masters” in Berlin.Prize recipient: Christoph Richter.

Field of Action Corporate CitizenshipField of Action Corporate Citizenship

Xella student competition

Xella gives young architects and civil

engineers the opportunity to get to know the

challenges that will face them later on in

their careers, as well as a chance to apply

and demonstrate their abilities under

realistic conditions with demanding and

practically oriented tasks. The winners are

awarded their prize at a public prize

ceremony.

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74 Xella Sustainability Report 2012Xella Sustainability Report 2012 75GRI Index GRI Index

GRI Index

AAC test specimen for determine thermal conductivity – tested and approved!

76 Xella Sustainability Report 2012Xella Sustainability Report 2012 77

gRI Indicator Status Reference/Comments

Profile

1 Strategy and Analysis

1.1 Statement from the most senior decision-maker

pp. 2–5

2 organizational Profile

2.1 Name of the organization p. 82

2.2 Primary brands, products, and/or services

K2, U2, pp. 6–19

2.3 Operational structure of the organization

K2, http://www.xella.com/de/content/geschichte.php

2.4 Location of the organization’s headquarters

p. 82

2.5 Countries where the organizati-on operates

K2, pp. 8–9, http://www.xella.com/de/content/ portrait.php

2.6 Nature of ownership and legal form

K2, http://www.xella.com/de/content/geschichte.php

2.7 Markets served pp. 8–9, http://www.xella.com/de/content/portrait.php

2.8 Scale of the reporting organization

K1

2.9 Significant changes during the reporting period

p. 76

2.10 Awards received in the reporting period

pp. 4, 53

3 report Parameters

3.1 Reporting period p. 76

3.2 Date of most previous report (if any)

First report

3.3 Reporting cycle Biennial

3.4 Contact point p. 82

3.5 Process for defining report content

pp. 36, 38–39The topics defined as important on page 36 form the basis for this report.

gRI Indicator Status Reference/Comments

3.6 Boundary of the report pp. 54, 76

3.7 Specific limitations on the scope of the report

p. 76

3.8 Joint ventures, subsidiaries, outsourced operations

p. 76

3.10 Re-statements of information provided in earlier reports

First report

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

First report

3.12 gRI Content Index p. 76

4Governance, Commitments, and engagement

4.1 governance structure pp. 68–69

4.2 Indicate whether the Chair of the highest governance body is also an executive officer

Legal requirements due to corporate form

4.3 Independent members of the highest governance body

As of December 31, 2011, 92 managers held shares in the company via a management partnership program.

4.4 Mechanisms to provide recom-mendations or direction to the highest governance body

Employees have the possi-bility to address their con-cerns as provided in local co-determination laws.

4.13 Memberships in associations pp. 49, 70

4.14 Stakeholder groups engaged by the organization

pp. 36, 38

4.15 Selection of stakeholders p. 36

4.16 Stakeholder engagement pp. 38–39

4.17 Key stakeholder topics and concerns

pp. 38–39

gRI Indicator Status Reference/Comments

Performance Indicators

economic

EC1 Direct economic value generated and distributed

K1

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

pp. 44–46, 70–71

EC4 Significant financial assistance received from government (e. g. subventions)

For Ecoloop, its largest research project, Xella received financial sub-ventions totaling EUR 2.0 million from 2009 to 2011. The public authorities hold no shares in Fels-Werke gmbH.

environmental

Management approach pp. 36–39

EN1 Materials used by weight or volume

p. 52

EN2 Percentage of materials used that are recycled input materials

pp. 52, 54

EN3 Direct energy consumption p. 53

EN4 Indirect energy consumption p. 53We obtain electricity from local public utility companies. Therefore, we assume that Xella’s fuel mix is not decidedly different than the fuel mix in germany.

EN5 Energy saved due to conservation and efficiency improvements

pp. 53–54

gRI Indicator Status Reference/Comments

EN6 Initiatives to provide energy- efficient or renewable energy based products and services

pp. 10–19, 22–29, 42–46

EN8 Total water withdrawal by source p. 50

EN16 Total direct and indirect green-house gas emissions by weight

p. 54

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

pp. 53–54

EN22 Total weight of waste by type and disposal method

p. 54

EN28 Fines None known during the reporting period

EN29 Significant environmental impacts of transportation

pp. 56–57

EN30 Total environmental protection expenditures and investments

p. 59

Labor Practices and Decent Work

Management approach pp. 36–39

LA1 Structure of total workforce pp. 60–61

LA2 Total number and rate of employee turnover by age group, gender, and region

pp. 62We list fluctuation by unit. For data protection purposes, we abstain from further breakdown.

LA8 Education and prevention programs regarding serious diseases

pp. 66–67

LA10 Employee training pp. 64–66

LA11 Programs for skills management and lifelong learning

pp. 63–66

LA13 Composition of governance bodies and breakdown of em-ployees per category according to gender, age group, minority group membership, and other indicators of diversity

p. 62Diversity is an important element of our corporate philosophy. For this reason, we do not define minority groups. We only list the proportion of women in leadership positions.

GRI Index GRI Index

About this Report

This sustainability report was created in accordance with version 3.0 (g3) of the currently valid global Reporting Initiative (gRI) guidelines. While compiling data, we adhered to the principles of balance, comparability, accuracy, timeliness, reliability, and clarity.

The following index illustrates all reported indicators. You can read the entire gRI guidelines at www.globalreporting.org.

The reporting period includes the years 2010 and 2011. Statements for other periods are clearly indicated. For easy comparison, we have included figures for 2009 whenever possible. HR key figures are valid for the entire group including all foreign companies. Statements on CSR management and compliance are also valid for the entire Xella group. Environmental figures include indicators for raw materials and energy use for individual business units worldwide. Statements on emissions are valid for the global lime unit.

Each table contains an exact specification. Unless otherwise noted, figures are valid for the Xella group on a worldwide basis. We plan to successively expand our data collection efforts in the coming years.

For the purpose of legibility, we use gender-neutral language throughout the report. All references to employees or customers are valid both for men and women.

This report corresponds to Application Level C as determined by an audit performed by gRI.

| 19

fully reported partially reported

italics = additional indicator

Status

78 Xella Sustainability Report 2012Xella Sustainability Report 2012 79

gRI Indicator Status Reference/Comments

LA14 Ratio of basic salary of men to women

Salaries and wages at Xella are based on laws and bargaining agree-ments, job descriptions, and employee qualification and experience. We do not make unobjective distinc-tions, e. g. on the basis of gender.

Human rights

HR4 Total number of incidents of discrimination and actions taken

None known during the reporting period

Society

Management approach pp. 68–69

SO2 Business units analyzed for risks related to corruption

pp. 68–69

SO3 Employees trained in organization’s anti-corruption policies and procedures

p. 68

SO5 Public policy positions and participation in public policy development and lobbying

p. 69

SO8 Fines p. 55

gRI Indicator Status Reference/Comments

Product responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed

pp. 10–19

PR2 Incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts by type of outcomes

pp. 55

PR5 Customer satisfaction p. 49

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing commu-nications

Unconditional adherence to laws forms the basis for our actions. This is also true for advertising and product marketing.

PR8 Complaints regarding breaches of customer privacy and losses of customer data

p. 69

fully reported partially reported

italics = additional indicator

GRI Index GRI Index

Status

80 Xella Sustainability Report 2012Xella Sustainability Report 2012 81GlossaryGlossary

Glossary

DEKRAAbbreviation for Deutscher Kraftfahrzeug-Überwach- ungsverein, a german organization specialized in damage reports, technical and analytic reports, building surveys, and material testing, as well as safety inspections and certifica-tions of motor vehicles and technical equipment.

eco-INSTITUTAn independent, privately owned company based in Cologne whose activities include certification of low-pollutant and low-emission products.

Energy efficiencyEnergy efficiency is the correspondence between benefit achieved and energy expended. A high level of energy effi-ciency makes it possible to achieve a certain benefit (such as a warm house in winter) with minimal energy expenditure.

Energy modernizationMeasures designed to save primary or end energy, use energy more efficiently, or otherwise protect the climate.

EnEV The Energieeinsparverordnung (EnEV – Energy Saving Or-dinance) is part of german construction law and mandates building standards for efficient energy use.

EPDEnvironmental product declaration: A systematic, compre-hensive description of the environmental performance of a product or service. The german EPD for building products (Umweltdeklaration Typ III) is issued by the Institute Con-struction and Environment e. V. (Institut Bauen und Umwelt e. V., IBU) in cooperation with the Federal Ministry of Trans-port, Building and Urban Development and the Umweltbun-desamt (Federal Environmental Agency).

Exterior insulation and finishing systemEIFS: A system for exterior insulation of external walls.

FGD gypsum gypsum made from waste gas from flue gas desulfuriza-tion plants. In the production process, the waste gas’ sulfur dioxide reacts with added limestone to make gypsum.

Fluctuation rateThe fluctuation rate is the annual ratio of employees leaving the company to the average number of employees, excluding retirements.

Formaldehyde valueThe formaldehyde value shows the concentration of formal-dehyde in the air.

Formaldehyde is a colorless substance that is a gas at room temperature. Due to its germ-killing and preserva-tive properties, it is used in a wide range of products, such as disinfectants, household cleaners, cosmetics, paints, varnishes, and building products. Even in low concentra-tions, formaldehyde can pose a danger to health. It has been classified as a harmful working material and is suspected of causing cancer.

IBUInstitute Construction and Development e. V. (Institut Bauen und Umwelt e. V.); an initiative by building product manu-facturers whose goal is to promote more sustainability in the construction sector. As a manufacturers’ association, it offers a unified set of german Typ III environmental product declarations (EPD) in accordance with ISO and CEN norms.

iibInstitut Innovatives Bauen (Institute of Innovative Building): An independent initiative by the Hettenbach family for a better future with real estate, real estate markets, and real estate companies.

IKUInnovationspreis für Klima und Umwelt (Innovation Award for Climate and Environment): A prize for technological in-novations in climate and environmental protection awarded by the german Federal Ministry for the Environment, Nature Conservation and Nuclear Security together with the Fed-eration of german Industries.

Lambda valueThermal conductivity is the material-specific ability of a solid body, liquid, or gas to conduct thermal energy (heat).

A material’s thermal conductivity indicates the heat flow in watts (W) per hour through one square meter of a one meter-thick layer.

Low-energy building A newly constructed or renovated building that uses a low amount of energy for heating and hot water. A low-energy building is characterized by excellent insulation, nearly draftproof and thermal bridge-free construction, modern ventilation, improved glazing, and highly efficient heating system.

PermeabilityThe ability of a building material to allow moisture to pass through.

Secondary raw materialsRaw materials produced from waste recycling that serve as source materials for new products and are therefore different than primary raw materials.

U-valueA measure of the rate of heat flow through one or several layers of material when both sides are subject to different temperatures.

Zero-energy buildingAn energy standard for buildings that is fulfilled when a building is able to produce enough energy to balance out its average annual external energy consumption, such as by using photovoltaic.

82 Xella Sustainability Report 2012Xella Sustainability Report 2012 Kapitel Unterkapitel 83Company Information

Company Information

Publisher

Xella International gmbHDüsseldorfer Landstrasse 39547259 DuisburggermanyPhone +49 203 60880 0Fax +49 203 60880 9195www.xella.com

Concept, design, and consultationKirchhoff Consult Ag, Hamburgwww.kirchhoff.de

Copywriting and editingBeate Krenz, Berlin

Picture creditsStephan Brendgen (p. 3), Ansgar Maria van Treeck (pp. 6 –7),Bernhard Heinze (p. 59)LMBV, photographer: Peter Radke (p. 31, pp. 40–41)Plan International (p. 71)Xella groupiStockphoto (p. 25, p. 27)Corbis Images (p. 67)

PrintDruckerei Fritz Kriechbaumer, Taufkirchen

Comments, criticism, feedback? We value your opinion!Get in touch with us at kommunikation@xella.com.

This report is available in german and English. You can order both versions at kommunikation@xella.com or download them at http://nachhaltigkeit.xella.com.

Last updated: April 27, 2012

This entire report was printed on FSC recycled paper.

Note:For the purpose of legibility, gender-neutral language has been used throughout this report.

Contact

Xella International gmbHDüsseldorfer Landstrasse 39547259 Duisburggermany

Phone +49 203 60880 0Fax +49 203 60880 9195

kommunikation@ xella.comwww.xella.com