Environmental, Social and Governance Practices at Phoenix Contact Middle East

Phoenix Contact has been active in the market for almost 100 years. The framework for sustainable management and corporate responsibility is formed by the harmonization of economic, ecological, and social issues. The Corporate Principles are the guidelines for the daily business dealings of all Phoenix Contact employees around the world. Our customers and partners can trust in our commitment to the Global Compact of the United Nations (since 2005), the Code of Conduct of the ZVEI (since 2009), and the “Verband der Klimaschutz-Unternehmen” association of companies that play a pioneering role in climate protection (since 2011).

As part of maintaining a sustainable business, we meet the relevant environmental protection standards and regulations. Environmental compatibility, the efficient use of resources, and climate protection are given high priority in our considerations and activities. We aim to make our entire value-added chain climate-neutral before 2030. As we support the global UN commitment to sustainability, 5 SDGs (7, 8, 9, 11, and 12) are directly supported by the Phoenix Contact product and innovation portfolio.

Social responsibility is indicated in our Group Code of Conduct – which the entire management team at Phoenix Contact Middle East has committed to. The management team collectively influenced major decisions related to the development of the sustainability framework and lead CSR achievements in their individual areas of responsibility that are tracked against the company’s vision and long-term strategy.

Economic issues

A new futuristic vision 'Empowering the All Electric Society’ has been adopted by Phoenix Contact and is a model which describes a world in which renewable energies are available worldwide as the primary type of energy in sufficient quantities and in an entirely economical way. For us, a pathway to this world is through empowering and preparing the way to the All Electric Society, which represents a sustainable world.

Ecological Issues

Energy efficiency

Efficient use of resources has always been central to corporate responsibility at Phoenix Contact. Below are some projects we implemented in our locations in Dubai, United Arab Emirates to become more energy efficient.

• Cooling of all our premises is carried out using chilled water from district cooling plants

• Energy-efficient LED lighting is installed in our office and the warehouses

• Insulating material is used in the main office fit-out

In 2020, we have joined a sustainable program in partnership with HSBC called 'Living Business Middle East' which calls on all businesses especially manufacturers to reduce their environmental impact as part of their sustainability commitments and supports them in transitioning towards a more sustainable way of operation. We have been committed with them and their partners ever since and have initiated multiple sustainable projects. We got selected among 70 candidate companies from across the GCC as a runner-up in the mid-size category at the Living Business Program 2021 Finals.

Waste Management

Environmentally friendly production also means ensuring that resources are not wasted, in terms of both management and operating technology. We implement waste management practices in the office and at the warehouse. Carboard management is one practice that we regularly do to reduce the number of cartons we hand over for recycling. All material scrapping, and the recycling of paper, plastic and e-waste is carried out through licensed recycling companies.

Automation of paper-based processes is also vital, not only for environmental benefits but also to streamline business processes and enhance productivity and accuracy. We automated many of the routine HR processes in the organization by installing an HRMS.

Carbon Footprint

In 2021, with the help of Emirates nature-WWF’s 'Target Climate Initiative', we carried out a Greenhouse Gas inventory for the years 2018-2020 to understand the sources of CO2 emissions in our local operations and identified key actions necessary to reduce them. At the end of 2021, we have reduced our GHG footprint by 50% mostly because of converting our shipments from air freight to sea freight mode.

Social issues

Employee Welfare

Protecting the environment and looking after employees’ health and wellness are not mutually exclusive objectives for Phoenix Contact, they represent a double incentive. At Phoenix Contact, employees can expect fair working conditions, a strong focus on occupational safety and data protection, and respect from those around them. The basis for this is our Corporate Principles and is ensured through convenient working conditions and environment at the workplace, flexible working hours, and remote working wherever possible.

In 2020, the company did the 'Great Place to Work' employee survey which records the workplace culture in five different categories on an aggregated level. In contrast to 360° feedback, conclusions can be drawn about the culture but not about the leadership behavior of individual people. In the Middle East, we have managed to achieve 100% participation rate which is an important element of trust.

Employee Wellbeing

Since the beginning of 2020, we have been consistently implementing health management and corporate wellness practices. We included psychiatric treatment and psychotherapy as part of our Group Medical Insurance Policy that is fully covered, and we joined a Corporate Wellness Program called 'Steppi' to encourage employees to increase their levels of activity to stay fit and healthy.

In 2021, we partnered with 'Safe Space' – a company that provides employers and employees with the tools they need to manage their mental health. We started with a survey to assess the state of mental health of our employees and eventually joined their program which provides access to unlimited virtual sessions delivered by professional coaches and counselors.

Diversity and Inclusion

We have participated at the Dubai Chamber Sustainability Week 2021 campaign ‘Let's Create an Inclusive Workplace' and became more aware of the essential role of inclusiveness and sustainable development at the workplace.

Training and Development

Learning and growth is a journey and a life-long process. Phoenix Contact is committed to its professional and personal development and has offered all its employees, access to LinkedIn Learning since 2021. Employees are also provided with access to a cloud Software from SAP for training administration purposes to plan and track their own qualifications.

Charity and Volunteering

Just before in-person events came to a standstill due to the global pandemic; we had an ongoing partnership with a local charity organization 'Action Care' who held a variety of charitable events and programs for children from low-income families. Over the past years, we sponsored many of their initiatives and had volunteers from the team assist the children to explore and experience a series of fun-filled interactive sessions and educational programs. We also had volunteers at Career Days at the National Charity School in Dubai to help prepare young adults for working life by introducing them to the Electrical Engineering field and by giving tips on how to build and improve their CVs.

Certifications

For the second year in a row at the end of 2021, Phoenix Contact Middle East has been able to meet the requirements of the new SMART individual Dubai Chamber CSR Labels 2021 and has been awarded the Dubai Chamber CSR Label - Workplace and Dubai Chamber CSR Label – Environment.

Phoenix Contact Middle East · Marketing Communications · Dania Liswi email:dliswi@phoenixcontact.com · Tel. (04) 437 0324 · Fax (04) 437 0323