I S S U E 0 1 | 2 2 CYBERGROUP SUSTA INAB I L I T Y REPORT OUR ENV I RONMENTAL GU I DEL I NES SUSTA INAB I L I T Y WHAT I T MEANS TO CYBERGROUP THE THREE P I LL ARS OF OUR POL I CY
SUSTAINABI L I TY REPORT | ISSUE 01 /22 CONTENT S U S TA I N A B I L I T Y R E P O R T - I S S U E 0 1 | 2 2 6 | 7 THIS IS US The company 4 | 5 WE TAKE CARE Foreword 10 | 11 SUSTAINABILITY What it means for us 12 | 13 ENVIRONMENT Our guidelines 14 | 21 SOCIETY Our social practices 22 | 31 ECONOMY Our economic practices 32 | 35 ECOLOGY Our ecological practices 36 | 37 GLOBAL THINKING Afterword 8 | 9 HUMAN RIGHTS Business Ethics
4 CYBERGROUP WE TAKE CARE - FOREWORD In recent years, the importance of sustainability and people’s awareness of our impact on the planet has grown into arguably the most important topic of our time. But what is sustainability and what does it explicitly mean for Cybergroup? Sustainability is a principle of action. It means a type of economic activity that corresponds to the three-pillar model of sustainable development. This is based on the idea that sustainable development can only be achieved through the simultaneous and equal implementation of environmental, economic and social goals. Only through equal implementation can the ecological, economic and social performance of a society be ensured and improved according to the model. The three elements are mutually dependent on one another. In their intersection, measures are sustainable and future-proof. To create jobs and to produce high-quality products, has long been insufficient. With the growing success of a company, its responsibility also becomes more and more focussed towards employees, suppliers, customers, the environment and natural resources. Partners and customers should be able to work with us with a feeling of security. We therefore attach great importance to the fact that the production of advertising material, textiles and merchandise takes place under fair social and ecological conditions. By adhering to self-imposed codes of conduct, we take responsibility for our actions and our products. As an international company, it goes without saying that we deal sensitively with and consider the different cultures in the most varied of countries. In addition, we are also aware of a general responsibility for society and see our success linked to managing and improving the environment of our locations.
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 This report gives you an insight into the processes and actions we take to measure our CSR. We have detailed and categorised our measures in terms of their significance for the respective building block that they represent. We are guided by the international UN Sustainable Development Goals SDGs, whereby economic, ecological and social topics are examined in our report. History shows that sustainability is not a fashion trend or an advertising campaign for us, but a self-image and part of the company's DNA. According to the principle "we take care" we actively shape our future and this requires ideas, motivation and passion!
6 CYBERGROUP THE COMPANY - WHO WE ARE AND WHO ARE OUR STAKEHOLDERS Cybergroup International is a network with locations in Europe, the USA, the United Arab Emirates and Asia. Around 100 employees work in the headquarters in Mannheim, with additional facilities in Wipperfurth, near Colgne. Over 200 employees in administration and approximately 1,250 in production throughout our worldwide network of 15 branches. Cybergroup is the German point of contact for all questions relating to advertising material, merchandise and corporate fashion. Founded in 1994 by Steven Baumgaertner and Roman Weiss, we have over 25 years of experience and are specialists in providing “full-service” solutions to our multinational clients. Cybergroup partner with number of major global brands who require the support of skilled professionals who have the industry know-how and the drive to provide fast, flexible and solutions-based support. Add to this the skills to provide this support across multiple continents. Our German quality standards are valued all over the world. We are committed to looking after your company’s most precious assets - your image. We deliver high quality products and services that are unique and individual to our client’s brand. When we talk about service, we do not just mean competent advice or delivering on time, but also delivering clever ideas, the latest trends, engaging concepts and dedicated customer focused employees. The Cybergroup team combine the design skills, creativity and unconventional thinking of an agency, the flexibility of a service provider, the product and branding knowledge of a promotional material retailer, the procurement skills of a global importer, the transport, storage and handling expertise of a logistics specialist and the global expertise of an online shop developer. We believe that it is essential that we represent our clients and provide services with the highest level of integrity, quality and independence. As part of this process, we commit that our suppliers demonstrate sustainable responsibility throughout the supply chain. We look at the challenges that we face both internally (Cybergroup's own business activities) as well as externally (in the upstream value chain) throughout the supply chain management. The following is intended to demonstrate the Cybergroup stakeholders, the key topics and how we approach them.
CLIENTS Compliance Independence Integrity Privacy Quality Customer satisfaction Innovative services Value-based culture Corporate citizenship Environmental impact through services Social media presence Information security Interaction in day-to-day business Debrief meetings Feedback on offers and tenders Framework agreements Professional events Client review meetings Complaint management DELIVERY Economic performance Compliance Resource consumption / environmental aspects Transparency regarding opportunities and risks Terms and Conditions Delivery guidelines Communication in change processes Supplier Code of Conduct Tenders Contract negotiations Supplier evaluations Supplier audits Supplier information sheet Certifications Framework agreements Delivery guidelines Annual discussions Supplier appointments / CG Live Talk THE PUPLIC Quality Compliance Transparency for the capital market Value-based culture Corporate citizenship Environmental activities Certificates and awards Social media presence Networking Cybergroup as a responsible company Answering enquiries Opinions Publications Interviews Networking LEGISLATION/POLITICS Transparency and trust in the capital market Risk and Quality Management Compliance Anti-corruption Independence Integrity Compliance with legal requirements Participation in associations and chambers Constant updating of a Legal cadastre. Legal advice Training of employees EMPLOYEES Employee engagement compensation Work-life balance Flexible working time models Home working Career and development Feedback and development planning Additional professional qualifications On-the-job development Learning culture Mindfulness Resilience Citizenship engagement Health and prevention, ergonomics Mobility Resource consumption Coaching / leadership culture Staff interviews Development talks Employee surveys Feedback culture Exchange with employee and business representatives Knowledge management Internal and external training Flat management hierarchy ASSOCIATIONS, CHAMBERS AND REGULATORS Compliance Independence Integrity Privacy Quality Customer satisfaction Innovative service Value-based culture Corporate citizenship Environmental activities Company reputation Certificates and awards Social media presence Interaction in day-to-day business Professional events Internal and external audits STAKEHOLDER THE KEY TOPICS TO DO
8 CYBERGROUP BUSINESS ETHICS (HUMAN RIGHTS) All the values that cyber-Wear stands for are set out in our business ethics. We are committed to upholding the highest ethical standards in all areas of our business. For example, to maintain integrity, we have an employee representative elected by employees. This is to encourage our employees to report any unethical or illegal conduct at work. Furthermore, cyber-Wear prohibits retaliation against anyone who raises any concerns about business practices or who participates in an internal investigation. This is to encourage employees to raise serious concerns within the company without fear of retaliation. cyber-Wear prohibits any form of corruption. Furthermore, we are committed to participating in fair, vigorous competition and to complying with anti-trust laws and economic competition rules worldwide. Employees and third parties must not be faced with any conflicts of interest that could negatively impact their decision-making ability or objectivity when conducting business on behalf of cyber-Wear. Within the company, we respect the right of all employees to form and join trade unions of their own choosing. cyber-Wear is committed to creating a corporate culture in which the internationally recognised human rights laid down in the UN Charter of Human Rights are implemented and that avoids any complicity in any violation of these rights. On the basis of this, we offer equal opportunities to all employees, regardless of colour, religion or belief, gender etc. We compensate our employees fairly and offer them benefits packages. Our salaries are in line with the market average and ensure a decent standard of living for our employees and their families. We guarantee that our products are 100% free from child labour. Compliance with this guarantee is mandatory for all our suppliers.
SUSTAINABI L I TY REPORT | ISSUE 01 / 22
10 CYBERGROUP AT CYBERGROUP WE UNDERSTAND SUSTAINABILITY IN ACCORDANCE WITH A THREE PILLAR MODEL This is based on the idea that sustainable development combines and delivers on environmental, economic and social goals. Delivered at the same time and in equal measure. We recognise that these three pillars are only truly sustainable and future-proof when they are applied at the same time and intersect with one another. In this model there are various areas in which responsible entrepreneurial action can be implemented to great effect. We strive to make a positive impact in the world and look to take on the challenges we all face in terms of social, economic und ecological issues. The following report is based on this understanding. The purpose of this report is to demonstrate how and where we take responsibility and initiate change, to achieve ever larger intersections. We know that as one company we cannot change the world. But we have a duty to act responsibly, identify where we have the power and ability to make change and then adapt our actions and business practices for the better. Finally we must be transparent about our actions which is we present this detailed report.
SUSTAINABI L I TY REPORT | ISSUE 01 / 22
12 CYBERGROUP ENVIRONMENTAL PRODUCTS When we develop, manufacture and supply products we consider what impact they are going to have on the environment. We look to minimise the impact that they have during their intended lifespan and consider if and how they can be recycled. All businesses want to do the right thing and clients look to us as a leader in our field to make sure that we lead the way in researching and implementing sustainable, recyclable products to represent their brands and be included in their product ranges. With our employees and especially with our trend scouts, we analyze our products not only with regard to topicality and modernity but also with regard to innovation in terms of sustainable materiality. PROTECTION OF THE ENVIRONMENT AND CONTINUOUS IMPROVEMENT We use key performance indicators to evaluate the impact that delivering our services has on the natural environment and take appropriate steps to reduce it. Thereby pursuing the goal of protecting the environment for future generations to come and to continuously improve environmental performance. ECONOMICAL USE OF RESOURCES AND ENERGY EFFICIENCY We use natural resources conservatively and look to utilise the most up to date and environmentally conscious manufacturing and branding techniques wherever possible. We continually strive to increase the energy efficiency of our services as part of our company CIP policy (continuous improvement process). Our impact on the local environment has been the major consideration and focus when building our new company headquarters in Mannheim. It has allowed us to set new higher standards for ourselves and not be constrained by the past. The ecological footprint should ideally go hand in hand with CO2 neutrality. ENVIRONMENTAL LAW AS THE MINIMUM STANDARD We are committed to be fully compliant with all legal environmental requirements and consider this the absolute minimum standard we should achieve. As a leader in our field we strive to hold ourselves to the highest possible standards. The control of compliance takes place via the legal cadastre. IMPLEMENTATION AND UPDATING OUR PROCESSES We regularly monitor and refine our internal and external processes as well as our organisational structures to further developed our business in an environmentally conscious manner. EMPLOYEE INVOLVEMENT Consideration of the environment and the impact of our decisions is the responsibility of every employee in the business from the CEO’s, to the management team and the team packing the orders as they leave our logistics centre. We believe that the key to this is transparency, open mindedness and engagement with all employees across the business. This is why we regularly meet to inform our employees about environmental protection measures that we are taking as a group. We also host regular environmentally-oriented training courses to demonstrate how small changes that they make can have an impact and have also implemented a company wide operational, environmentally-focussed suggestion scheme. INVOLVEMENT OF EXTERNAL INTERESTED PARTIES We encourage involvement and open communication with our business partners, the authorities, neighbours and the wider public on how we can all improve the environmental. CONSIDERATION OF THE SUPPLY CHAIN We have invested in the development of detailed compliance standards and have set clear guidelines which suppliers must adhere to in order to work with us. Making sure that our supply chain adopt the same high standards that we demand of ourselves is an absolute priority. For this reason, we regularly carry out environmentally-oriented supplier evaluations and inspections and make our product and process information available to our clients. Mannheim, 22.08.2022
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 Cybergroup International has clear rules for environmentally friendly business practices. We have environmental guidelines that have been created and ratified by the management team. These practices are clearly communicated to and adopted by our employees, service providers and members of our supply chain.
14 CYBERGROUP SOCIAL RESPONSIBILITY As our business has grown into an international organisation we have traded with many supply chain partners and employed people from across the many different countries we have learnt to embrace and respect the different cultures that exist as well as learn the many different approaches to doing business around the world. We also recognise that we have an underlying responsibility to society and see our success directly linked to an intact environment at our locations. Cybergroup is a privately owner-managed, global company. Maybe it's because of this that cooperation and partnership are particularly important to us. Not just at our offices, but also with all the people we come into contact with professionally: be it our customers through our partners to our suppliers. Cybergroup are regularly involved in many social projects: Alliance for the Heidelberg family www.familie-heidelberg.de Help for Chernobyl victims www.hilfe-tschernobyl.de Forest pirate camp of the German Childhood Cancer Foundation, Heidelberg www.waldpiraten.de House of Youth, Heidelberg www.hausderjugend-hd.de Blind workshops-Schlich, Hürtgenwald-Horm www.arbeitsring.de St. Antonius children's home, Karlsruhe www.st-antoniusheim.de Refugee aid, Dossenheim www.asylkreis-dossenheim.de The Heidelberg Project, Detroit, Michigan, USA www.heidelberg.org Felix baby ambulance www.steiger-stiftung.de Climate project - CO² neutral homepage www.natureoffice.com/ klimaschutzprojekte/project-togo
SUSTAINABI L I TY REPORT | ISSUE 01 / 22
COVID-19. TAKING RESPONSIBILITY IN CHALLENGING TIMES – How do you deal with the unprecedented situation of a global pandemic? For us, the response to the pandemic was to consistently move employees over to working from home. And this independent of the relevant legal guidelines in place. As we had already begun to implement the Future Desk principle, we had fewer technical problems with this than other companies. We also ensured that free lateral flow tests were available for our employees at all times, so that they could test themselves as and when necessary, quickly and easily. For optimal protection against the virus, we also ensured a constant supply of fresh face masks. As the pandemic progressed, our hygiene concepts were also constantly updated. This enabled us to respond to the ever-changing legal and social requirements accordingly. Of course, even in a pandemic, it is not possible to do all work remotely. In order to protect as best as possible those employees who needed to be on site to do their work, segregated workstations were set up. Particular attention was paid to this in the warehouse, because working from home is unfortunately not an option for warehouse workers. A great deal of compromises and solutions had to be found to deal with the various problems we encountered along the way during the pandemic. In particular, we communicated far more closely and far more frequently with suppliers during this time. We had to use other shipping methods, which, in some cases, led to huge cost increases, which in turn had to be passed on to our customers. As a result of reduced working hours or full-on lockdowns in production plants, the quality of the articles delivered unfortunately often left much to be desired. Here, it was important to be understanding, especially when dealing with suppliers who were normally known for their reliability. So as not to burden suppliers with major complaints, we instead got creative and included products that had not been produced correctly in line with their design in our range under a different item number. This meant that we only had to pass on the costs for the additional personnel outlay incurred. 16 CYBERGROUP
In order to help suppliers at a time when orders were sometimes more than scarce, we distributed our orders among several suppliers, to save them from a production standstill. Other means of communication were also heavily used. For example, we found that contact via video call strengthened our personal bond with suppliers and customers. This is another reason why more communication took place via Microsoft Teams than via e-mail during the pandemic. Particularly because issues were often complex. This more personal interaction in business dealings can even be seen as a positive outcome of the pandemic. All these measures contributed to making cyber-Wear’s entire business pandemic-proof. WORKPLACE CONCEPTS Innovative, free and independent, these are the core values of a new work concept which is called "New Work". We have launched completely new structures on a digital and spatial level which have changed the way we work in the office. Initial studies show that this modern form of working has many advantages offering lots of opportunities for better interaction and networking, faster implementation of joint projects and higher levels of employee motivation. In addition, this new way of working has had a positive impact on the well-being of employees. 70% feel healthier than in their previous job and 90% feel more confident in the new working atmosphere and company positioning of: MAKE IT HAPPEN.SHOCK EVERYONE. 1 www.startplatz.de/startup-wiki/coworking/ For Cybergroup, we see this approach as an opportunity to answer our questions. We know that we perform at our best when we communicate with one another, share ideas, experiences and learnings. We have always looked to encourage our teams to network and socialise together and tried to breakdown barriers that exist and prevent this from happening. We have always worked hard to make sure that there are no barriers, that doors are always open, that we adopt flat hierarchies, flexible working hours and deliver a good infrastructure to provide the sound basis for a sustainable one business concept. When we built the new Head Office it enabled us to come up with a complete redesign of how we see co-working space. Our new offices are totally open plan, with a modern design and feel. As a result, they offer a lot of space for creative work and allow employees to interact and exchange ideas quickly on joint projects. For example at the custom built meeting counters or in the new, modern lounge. All areas are equipped with the latest technology. In addition to this within these SUSTAINABI L I TY REPORT | ISSUE 01 / 22
meeting areas we have provided ergonomically shaped chairs for comfort during work, relieve stress on your back and invite you to actively change your perspective.Focussed work and concetration in peace and quiet, we placed a special focus on noise reduction. The flooring, ceilings and walls were designed to absorb sound, even work tools such as pin and magnetic walls were included in the concept. These are not just meant to be used for collecting ideas and making mood boards, but they also feature sound-absorbing properties. Employees can retreat to one of our small comfortable lounges for a bit of peace and quiet should they wish. In addition our open plan kitchen and lounge area promotes team spirit and comradery. We have found that this new environment has helped to further promote an atmosphere that fuels employee motivation, leadership and constructive working atmosphere. We have seen the level of employee engagement and stimulation of new ideas and questions increase significantly. From simple ideas such as offering a free a fruit basket, to new product ideas and the implementation of new social and environmental measures. The employees are more empowered and actively participate in the development of new business ideas. The attractive design and open plan of the building clearly stimulates more ideas and creative thinking. WORKING GREAT TOGETHER One of the things that makes Cybergroup what it is today is team spirit and co-operation. Working together is one of the things that allows us to stand out from our competition and delivers the extra mile for our customers. We are very proud of our team which is why we host many company events as well as our annual beach volleyball event for our staff and supply chain partners, “the Beach Cup” hosted in Mannheim. We continually strive to promote this co-operation and the team spirit and passion that is part of the DNA of Cybergroup. FUTURE DESK 2.0 Working from home! What used to seem rather absurd to us has become the norm during the pandemic. This flexible way of working is modern and fulfils employees’ desire for greater flexibility. The sustainability aspect is also evident here: no commute necessary. We have set ourselves the goal of accelerating this trend for innovative, digital working opportunities. It brings a wealth of advantages when it comes to onboarding, too, as the qualified employee no longer necessarily needs to be based in the Rhine-Neckar district. For these reasons, we would like to continue to allow our employees to work from home for one or two days a week after the pandemic. However, we still believe that it is important that employees come into the office to work at least two days a week, because one thing the pandemic has shown us is that social interaction is crucial for our well-being. Like many things in life – a happy medium will work best here, too. EDUCATION AND INTEGRATION - LIVING TOGETHER Employee cohesion and a sense of belonging to a team is the cornerstone of healthy and socially responsible business growth. At Cybergroup we started to work with the Chamber of Industry and Commerce back in 2004. Since then we have developed members of our team to become specialists in logistics, warehousing and experts both in wholesale overseas trade. 2021 has seen us form a new partnership with the IUBH of the International University in Mannheim. In this relationship Cybergroup has become 18 CYBERGROUP
a case study working with students studying degrees in Marketing Management. We are committed to being a responsible employer and encourage diversity and integration amongst our workforce. We currently employ people with ethnic backgrounds including; from Germany, England, the USA, Gambia, Ethiopia, Portugal, Croatia, Italy, Turkey and China. We have many employees from very varied backgrounds who have joined our team and are fundamental in making our business what it is today. Employing migrant workers places responsibilities on us as employers to ensure that we help employees the challenges that can exist. This is why we are committed to helping our staff to integrate and be part of one team. We support them both personally and professionally so that they can fully benefit from the Cybergroup team spirit and the can do culture that we live by. We recognise the benefits that they bring and are committed to working in conjunction with local employment offices to grow the diversity within our business. ERGONOMICS AND HEALTH PROMOTION We conduct an annual health and safety review throughout the business to ensure that we are compliant with all applicable standards and legal requirements. We also carry out individual assessments of every employee’s workstation to ensure that they have the necessary equipment and support to carry out their work without the risk of injury. We work closely with our health insurance provider to offer a wide range of offers to employees. Whether it’s providing ergonomic chairs, or soft floor mats at packing stations in the warehouse, safety equipment or targeted relaxation exercises in the break times, we offer a broad range of facilities to our employees. We encourage a continual flow of ideas from our employees in ways that we can further improve and support them. As a result of this interaction with employees we have introduced many new initiatives including in-house massage appointments, a regular supply of free from local regional farmers and the addition of water dispensers throughout the business. In 2020 we have also implemented a new program of ideas to help employees to work remotely but maintain a healthy balance, we have also introduced a program to help employees wishing to quit smoking. We also actively encourage employees to take exercise during the day they have the opportunity to have flexible lunch hours / breaks should they wish to go for a walk. EEL GOOD Within our new global head office we have invested in creating a spacious social area for our staff. In addition to this we have created a gaming room, a relaxation room and an impressive open plan dining area. With a modern equipped kitchenette, our employees regularly use this area to interact and relax during breaks and at lunch time. The upstairs lounge area is a perfect space for enjoying a coffee and is ideal for informal team meetings and supplier appointments. In the warehouse we have built modern changing facilities with showers and a stock of fresh towels for staff who run or cycle to work or in case of private functions after work or the need to freshen up between appointments. When creating these communal areas careful consideration was given to the design and layout in order to create a calm space in which our employees can relax and unwind. We considered the environment in every aspect of the build from using sustainable building materials and electricity generated from newly installed solar panels down to avoiding the use of plastic in the kitchen utensils in the dining room area. SUSTAINABI L I TY REPORT | ISSUE 01 / 22
OUR EMPLOYEE STATISTICS DEMONSTRATE: FUTURE - NEWWAYS, NEWGOALS AND HONESTY Understanding the lessons learnt in the last 25 years is essential when planning for the future. As with any business we are looking to evolve and to set and deliver on new goals. We are committed to achieving this with the utmost honesty and integrity. We are committed to being a reliable partner for all of our stakeholders be they clients, suppliers, the environment, our employees and their families. Cybergroup is company that leads through vision and creates one thing above all - trust. Throughout the challenging times that we have recently experienced trust and the ability to be reliable is an essential foundation for the future of any business. The landscape of the market in which we operate continues to change, becoming more complex with an increased demand for partners to have the ability to react quickly. Without a doubt this trend will continue and the ability to be a trusted partner who is able to adapt and support our clients will be a fundamental requirement for the further growth of our company. As with most businesses our employees are our most important asset. They are the team of professionals who are committed to representing Cybergroup and both establishing and maintaining that trust. Every employee helps to shape how our business is viewed. Cybergroup is only as good as the people within the business and the partners we select to work with. We are committed to holding ourselves to the highest standards and levels of accountability as we continue to work together for a successful future. 20 CYBERGROUP
SUSTAINABI L I TY REPORT | ISSUE 01 / 22
22 CYBERGROUP CREATING JOBS AND PRODUCING HIGH-QUALITY PRODUCTS IS NO LONGER ENOUGH IN THIS DAY AND AGE. As the success of a business grows, so does its responsibilities. Responsibilities to employees, suppliers, customers and the environment. At Cybergroup we look to take a proactive approach to these challenges. Partners and customers are able to work with us with a feeling of security. It is therefore of the utmost importance that we manage our supply chain to insure that the items that we produce are done so responsibly, paying particular attention to the social and environmental impact that they have. By adhering to strict self-imposed codes of conduct we are able to commit that our products achieve the highest possible quality standards. As a business we are committed to achieving continuous improvement, therefore when we develop products we work in close co-operation with our suppliers and in accordance with the quality standard standard DIN ISO 9001: 2015, the UN Global Compact and quality check our products according to the AQL standard. We conduct regular factory visits and have both products and facilities inspected by our own quality control experts. Our organic cotton products are sourced and manufactured in accordance with the GOTS standard and we ensure that there is no use of single use plastic in the product packaging. In terms of the packaging that we use when shipping goods from our facilities we make sure that everything is FSC-certified. We have adopted a practice of utilising recycled cardboard in our boxes and grass paper mailing bags. We are continuing to make substantial improvements throughout the business via a combination of the materials used in the products themselves, the use of recycled cardboard and the avoidance of unnecessary waste. We measure and report % material efficiency by way of outbound recyclable cardboard. In 2020 we achieved a rate of 49% which was slightly down on the 2019 performance of 56%, this reduction was the direct result of large individual mailing campaigns we undertook at the end of the year as a result of client requirements to deliver to employees working remotely. ISO-CERTIFIED QUALITY MANAGEMENT IN ACCORDANCE WITH DIN ISO 9001: 2015 In 2009, Cybergroup achieved accreditation for our products and services in accordance with DIN ISO 9001: 2008, this has subsequently been updated to be DIN ISO 9001: 2015 and are made available to our clients and business partners.
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 ISO 9001:2015 is the internationally recognized Quality Management System (QMS) standard that can benefit any size organization. Designed to be a powerful business improvement tool, ISO 9001 Quality Management certification helps businesses to: • Continually improve, streamline operations and reduce costs • Be more resilient and build a sustainable business • Maintain strong corporate governance • Work effectively with stakeholders and your supply chain All aspects of the processes and structures that have been put in place are independently audited by TÜV Süd and must be compliant with their exacting standards and strict requirements. These details are under-go an annual inspections prior to re-certification. UN GLOBAL COMPACT Cybergroup joined the United Nations Global Compact in 2007, this is globally recognised as the largest and most important initiative for responsible corporate governance. To date more than 13,000 organisations have come together to align strategies guided by 10 universal principles on the key subjects of human rights, labour, the environment and anti- corruption. Using business as a force for good to achieve a better world. At Cybergroup we adhere to these principles with every order we place. FSC- SIMPLY GOOD WOOD FSC® stands for Forest Stewardship Council, they are German based body that is recognised to be the world leaders in Sustainable Forest Management solutions. For the last 25 years they have worked with governments, forest owners, the indigenous people and manufacturers to ensure that decisions made today will not impact negatively on the world. To ensure that forest and wildlife habitats continue to be maintained and protected for the future. Any product that is FSC® certified means that the farming of the materials and the natural habitat have been subject to and compliant with strict regulation. Cybergroup have registered with FSC® as a promotional license holder allowing us to resell and advertise items that carry the FSC® seal in accordance with their guidelines. ORGANIC PRODUCTS We supply significant amounts of food and confectionary products and work extensively with our supply chain to promote and supply products that carry the organic seal. The hexagonal symbol was created in 2001 by Federal Ministry of Food and Agriculture. It is regarded as the reliable symbol with which consumers can instantly recognise as organic food. For organic companies the use of this well-known logo is free of charge and unbureaucratic. However, you must be careful to ensure that the product supply chain also meets the legal requirements. As a reseller Cybergroup is obliged to manage this process and is registered with the responsible organic inspection body accordingly.
24 CYBERGROUP PSI SUSTAINABILITY AWARDS The PSI Sustainability Awards examine the three pillars of sustainability, namely economy, environment and social responsibility. They are judged according to demonstrating specific criteria either as a business in relation to their practices, specific initiatives, products and their participation in marketing campaigns as part of the marketing mix. Due to the complexity of the subject, the number of awards for different skills and qualities we felt there was the risk of "greenwashing". Sustainability is a necessity not a fashion statement and transparency is the key. In 2015, Cybergroup were among the finalists in three categories of award. As part of our ongoing commitment to the subject in 2020 we decided to partner with the PSI to create a new category and a new Sustainability Award for both suppliers and partners. SPECIAL CATEGORY “INNOVATOR OF THE YEAR” - INNOVATED BY CYBERGROUP After five seasons the PSI Sustainability Awards has evolved to a new level and in 2020 Cybergroup decided to get actively involved. The most important innovations: the creation of a new category with its own independent judging panel as part of the existing awards as well as a new evening event at a new location are based on our conceptual Proposals and elaborations. The “Innovator of the Year” is a specialist category in which the consumer should learn about the history of the product, from its components and the material composition. There should be detailed documentation about the production facilities and the lives of the employees involved in the manufacturing process, as well as the impact on the environment and the carbon footprint of the product and its journey to the recipient. The awareness and focus on the production process of sustainable products and the (development) story behind it. As a result this new special award category “Innovator of the Year” is not just about the sustainable product, but all the details and the context in which is conceived. SUSTAINABILITY IS NOT A FASHION, IT IS OUR COMMITMENT To give the whole project and our award even more emphasis, is cyber-Wear is since 01.06.2022 System Partner and Brand Ambassador of bluesign® and develops together with bluesign® the promotional merchandise and corporate fashion market.
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 THE APPLICATION PROCESS AND THE JURY Competitors have to register separately for this new category. They have to demonstrate valid certification in the areas of quality management (economy), environmental management (ecology) and social responsibility (social / ethical). The application must also consist of a sustainable product with a detailed history of the products creation as well as the sustainable innovations achieved through the supply chain. All corresponding partnerships throughout the supply chain also have to demonstrate all relevant documentation in the areas of economy, ecology and social responsibility. The judging panel consists of 7 people including the chairman and representatives from Industry and Advertising professionals. The “Innovator of the Year” adjudication panel is totally independent from the judges of the other award categories to ensure impartiality and guarantee a focus on these specific awards.
26 CYBERGROUP PROCESS-CONTROLLED DEVELOPMENT As part of our product development, we work in accordance with DIN ISO 9001: 2015. The entire process from brainstorming a concept to the initial sample and then the finished product is defined according to defined processes. Our global quality management provides our clients with confidence due to the assurance that their products meet all the necessary legal requirements such as REACH, ProdSG or the toy directive 2009/48 / EC as well as compliance with the standards defined by Cybergroup regarding quality and materials. Always keeping in mind the end goal: to deliver great high quality, ethically sourced products that deliver for you brand. PRODUCT DEVELOPMENT All of our suppliers work in accordance with the UN Global Compact guidelines, the leading social standards for humane working conditions and adequate occupational health and safety. All supplier production facilities are regularly audited by members of our team from purchasing and quality management. The aim being to develop and support our suppliers and production sites. In doing so, we check all working conditions, labour records, waste management and are on hand to provide advice via a constant exchange of communication. In addition to these steps, we conduct extensive quality control goods inspections via our own team of trained quality management staff. OUR PRODUCT RANGE As a consumer, you rarely choose an advertising medium yourself. More often than not you receive it as a bonus or a gift. It is almost impossible to know where it comes from and how it has been made. At Cybergroup it as our duty to bring products onto the market that are of high quality, professionally sourced and that are manufactured according to the highest social and ecological standards. To this end, we continue to refine and work with our supplier portfolio under sustainable aspects and enable our customers to have access to high-quality and, above all, sustainable advertising materials at an attractive price. We are continually challenged by our clients to go beyond producing just great looking products. The focus is on value, the customer's brand should be conveyed credibly. This is where the topic of sustainability is a key factor, it is no longer simply a case of price. The ongoing lifecycle and reuse of materials also plays a role. Both the use of processed materials (upcycling) and the use of secondary raw materials are part of our philosophy. So far, these materials have mainly been used in the context of individual customer productions. Whether old banners, old seat covers or leather scraps from production: If the material is suitable and available, what was going to be discarded as waste has been turned into a new merchandise favourite. TEXTILIEN Textiles occupy a large part of our product range. Our main concern is to convince the customer to dress him/herself mainly with natural raw materials. We favor the most used cotton according to Ökotex standards, or GOTS certified natural fibers. Again it should be mentioned that we want to have a positive impact on the chemicals used, especially in the area of corporate fashion, with the partnership that we have entered into with bluesign® since June 1, 2022. UPCYCLING Reduce, reuse, recycle – cyber-Wear is also committed to following the 3Rs of recycling. And we now have our own catalogue of upcycled products. Our goal is to constantly reduce the number of new products that are thrown away despite the fact that they have not yet reached the end of their life cycle. This is in particular a major
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 issue for us in the textile sector. And the solution is upcycling. For example, we are collaborating with one of our customers to sell fashion made by a start-up from fabric from old garments. As exclusively existing material is used here, without the need for any new raw materials, this is particularly sustainable. For Deutsche Bahn railway fans, we offer shoulder bags made from old train seat moquette. Here, too, old material is given a new, second lease of life as a product. In the coming years, we expect that all companies will come under increasing pressure to up their share of sustainable (upcycled) products. While today companies tend to do this out of self-interest or for marketing purposes, i.e. to enhance their image, statutory regulations are increasingly anticipated to come into force over the next few years. The European Commission’s Green Deal, for example, incorporates a proposal to “boost circular business models and empower consumers for the green transition”. A strategy is presented to make textiles more durable and easier to recycle, with the aim of preventing fast fashion, textile waste and the destruction of unsold textiles. In the foreseeable future, these proposals will be reflected in legislative texts, which is why we would all do well to make a start today. We are currently in the process of defining new sustainability goals. One such goal could be to produce a certain percentage of sustainable products, and another to develop new, sustainable certification options that go far beyond DIN ISO 14001. We are also trying to raise our suppliers’ awareness of the issue of sustainability. At present, we are attempting to reduce the amount of individual packaging used for our orders. In particular the individual packaging of products in plastic bags in a cardboard box, for example, produces needless waste. When requesting new products from our suppliers, we therefore automatically specify our desire for waste-reducing, sustainable deliveries. Sustainability therefore starts even before the order is placed. In 2021, we thereby saved around 70,000 bags in one month alone.
28 CYBERGROUP CUSTOMER SATISFACTION Our business can only continue to be secure when our customers confirm that they are happy with the service levels that they receive. For this reason, we analyse the customer satisfaction of our key customers every six months. In a complex evaluation process, we take into account not only the data collected from complaints database, but also reports from client meetings, order analysis and evaluations from our controlling team. We have revised the customer satisfaction analysis process in 2021 with a view to make sure that we continually put the customer relationship first and central to our thinking. We also use the data from this analysis for further innovative new developments across our business, assortment checks or digital process adjustments, which allows us to work continuously for our customer and guarantees ongoing proactivity. Throughout this evaluation, we are our harshest critic and always consider how we can help clients to maximise their potential. It is impossible to achieve 100% satisfaction because we always strive for continual improvement: In 2021, customer satisfaction was rated at 2.78 from a maximum index value of 3. Overall, we managed to retain all of our clients and with Audi collection, another major new key customer. INTEGRITY AND QUALITY In accordance with our self-image, we place the highest demands on the professionalism and quality of our work. We strive to meet these demands on ourselves every day, to create added value for our clients and always maintain the necessary independence and impartiality. Our goal is to be the Clear Choice for our clients. In order to ensure this, we have regular training sessions. At least once a year, we conduct mandatory training on compliance with laws and regulations, professional standards and the Code of Conduct. In the case of new hires, this training takes place for the first time immediately after joining the organisation. Annual independence checks and a Compliance Audit are further measures to ensure our integrity and quality. We also actively request mission-specific declarations of independence from our employees. Entrepreneurial responsible action requires quality and integrity - this also makes it a driver for sustainable development in companies. Our services and products can also do more! They are durable, versatile and create sustainable value for our customers. Before a product is sold, we carry out a process that focuses on the customer's needs, the trend, the general conditions of production and the impact on people and the environment. Our current range of services and products is the consistent result of a sequence of professional expertise and the associated continuous, sustainable steps. These include a process-driven design and product development process, a quality assurance system, as well as logistics and disposal concepts that take sustainable aspects into account. DATA PROTECTIONAND INFORMATION SECURITY We have implemented a number of measure to keep the personal data that we collect secure. These measures include, risk-assessments, organizational structures, contractual regulations, guidelines, control processes and technical system safeguards. To ensure that we compliant with increased requirements of the European General Data Protection Regulation (EU GDPR) with regard to compliance revealed, we have implemented the following further measures. In accordance with legal requirements Cybergroup has appointed an external data protection officer. The data protection officer acts as an internal audit to ensure that we are fully compliant with all same as previous national
SUSTAINABI L I TY REPORT | ISSUE 01 / 22 and international data protection regulations. As an economic operator, we are also subject to legal requirements for data security. In order to be compliant are legally obliged to disclose all facts and circumstances that have been entrusted to us in the course of our work or become known (including any personal data), particularly to protect and to treat secretly. Our employees therefore have to begin their work to submit a corresponding declaration of commitment for the Cybergroup. One that takes place annually data protection training is one of the compulsory training courses. Employees who work in areas of particular sensitivity also receive regular training and updates about information security. Given the high profile clients that we operate with and the importance and regulation surrounding personal data protection we took the decision to invest in becoming TISAX accredited. We achieved certification in 2020 so that our clients can be re-assured that we operate to an internationally recognised standard to protect personal data
30 CYBERGROUP LOGISTICS We have operated a number of logistics centers for over 20 years, when we built our new head office and logistics center in Mannheim starting from the ground up provided the perfect platform on which we are able to invest in the future. The continuous increase in our ability to deliver with a current value of 90.45% (May 2022) shows that unnecessary shipping routes are avoided. 2020 has seen the launch of our latest investment in operational automation and the future proofing of our business through the introduction of Autostore. AutoStore is the market leader of warehouse space efficiency offering the best storage density ratio of any container storage system. It enables us to optimise our stock holding and increase capacity by four times past levels in the same floor space. Its flexible design allows us to maximise all the available space in the building. For example, we can build around building supports and make optimal use of irregular floor plans. It has allowed us to eliminate rows of shelving and wasted aisle space as there is no longer a need for picking carts or forklifts. The picking bins are stacked directly on top of each other allowing us to save around 75% of the storage space previously used. Above the stack of picking bins there is a rail system (grid) where high-speed robots operate. They can operate 24 hours a day, openings bins, rearranging them and transporting them to the directly connected ports for incoming goods and the packing line. In the 3rd quarter of 2022, the existing AutoStore was expanded by 50% and thus an enormous increase in effectiveness was achieved. In addition, after 2 years of commissioning AutoStore, we can only record wear of 2 boxes (with 9000 in the system). The robot lowers its gripper plate into the stack which can be lowered to any level within the stack. It is programmed to identify the correct storage bin and to raise it up to the top of the grid. If the robot needs to collect a bin from level nine, it is able to move the other eight bins and place them on other nearby stacks to gain access to the correct bin, leaving blocks of free space. When it is working on delivering the storage bin to the packing line another robot is tasked to clean up and replace the bins in the original order. After a bin is presented at the port, it will open again placed in a bin stack. The system is designed to identify how often a bin is required and automatically adjusts the order of the storage so that the bins with the highest levels of demand are positioned closer to the top of the stack all the time increasing the speed and efficiency of the operation. This means task which used to require hours of analysis and manual labour are happening continually without any human input at all. WHY AUTOSTORE? This state-of-the-art systemhas enabled us to achieve unbeatable operating times and efficiency, in the future this will lead to cost savings and significant cost avoidance. The new system of bring the goods to the person instead of the person going to locate the goods makes the process far quicker. Thanks to AutoStore, our ability to process high volumes of small orders (up to three lines) is far faster and more cost-effective. In addition to the unbelievable space efficiency, the robots are very energy efficient. A system that operates ten robots uses roughly the same amount of energy as a vacuum cleaner. This is achieved by utlising a “hybrid” style of energy regeneration. Where once the robot lowers a bin or reduces speed, electricity is generated by regenerative energy functions and fed back to the batteries submitted. In addition to this the robots do not require any light inside the building to operate,