Communication on Progress Submission Template This template shows the information you will be asked to provide when submitting a link to your Communication on Progress to the Global Compact website: Company name: EPCOS AG Title of the submission (70 characters limit): Communicating Our Progress (2007) Global Compact principle(s)/issue(s) addressed in the example (select from the list i.e. 1,2,3 etc, and/or HIV/AIDS, water management etc): Communication on progress 1. What actions has your company taken to implement the Global Compact inside its business? (2500 characters limit) EPCOS has communicated its progress to stakeholders in various corporate publications. The Annual Report 2006 devoted a complete chapter to corporate responsibility. The EPCOS corporate website provides detailed information on the company’s commitment to the Global Compact. The Corporate Responsibility pages present EPCOS’ Corporate Principles, which coincide with the principles of the Global Compact. Addressing corporate citizenship and corporate governance, they provide ethical guidelines binding on all employees. Details are also available on environmental management, employee safety and security, and various community involvements. EPCOS’ dedication to the environment is summarized in seven environmental protection principles. These include assessing the environmental impact of new products and processes right from the design stage, and regular monitoring and updating of technological and organizational procedures to ensure environmental protection. The RoHS directive also requires lead-free soldering processes to be used in production of electronic components. EPCOS has therefore made the necessary technical adaptations to large numbers of its components. The entire relevant product range is compatible with European Union’s Restrictions on Hazardous Substances. EPCOS now offers its customers an online service to help them comply with the requirements of China’s new law on hazardous substances in electronic products, »Administration on the Control of Pollution Caused by Electronic Information Products« (ACPEIP). Based on the company’s extensive experience with EU RoHS, EPCOS aims to provide customers with reliable orientation in this complex field. Progress has also been made in efforts to cut water consumption. At the plant in Deutschlandsberg, Austria, for example, migration to a closed-loop cooling system slashed water consumption by about half. Charity efforts are one of our contributions toward a better community. For example, in 2006 EPCOS PTE Ltd. in Singapore adopted Grace Haven for its charity drive. Grace Haven is a residential home operated by the Salvation Army that provides guidance and protection for up to 150 young persons. EPCOS conducted fundraising events with employee participation, including the EPCOS Market Bazaar and the EPCOS Charity Bowl 2006. With the drive EPCOS made a contribution of $30,000 to Grace Haven. [The following example relates directly to the principles of the Global Compact:] Through proactive communication on coming China RoHS regulations, EPCOS is striving to help Global Compact January 2007 its customers comply with environmental legislation. 2. What was the outcome/result of the actions described above? (2500 characters limit) Please describe such things as: the response you have received to your efforts to communicate progress; plans for future communications on progress to stakeholders on the company’s performance on sustainability issues etc. The EPCOS Group operates an environmental management system that conforms to the requirements of ISO 14001. Currently, our locations in Europe and the Americas, as well as most of our locations in Asia are certified to this standard; certification of the remaining facilities in Asia is scheduled for completion in the course of 2007. EPCOS already complies with the strict environmental protection guidelines drawn up by the Sony Group, for example. Today, the Japanese enterprise only sources components from suppliers and dealers that are accredited as »green partners«. Samsung Electronics, the world's third-largest maker of mobile phones, likewise certified us as an ecologically sound partner at an early stage. The Korean electronics group requires its suppliers not only to deliver environmentfriendly components, but also to use environment-friendly packaging materials. What have been some other milestones related to EPCOS’ social responsibility initiatives? What are some of the company’s CSR goals for 2007? In connection with the ten Global Compact principles, EPCOS has not set any new milestones because its goals remain the same. EPCOS’ commitment to human rights, labor standards and the environment date back to its establishment in 1999 and can be traced back even further to its predecessor companies. Does EPCOS have a formal report that details the above initiatives? No, but chapters on corporate responsibility, corporate governance and the environment are integral parts of our Annual Report, which is also available at our website. Country (ies) where the internal company change took place (global is also an option): -Global 5 search words (keywords) describing the submission: CSR reporting, environmental protection, community, social responsibility, education Contact information of company representative: Name: Mark Dietrich Email: mark.dietrich@epcos.com Direct URL links to the communication on progress e.g. annual report/CSR report, pages on website etc.: Annual Report 2006: http://ir3.quartalflife.com/data/epcos/igb_html/index.php?bericht_id=1000002&lang=ENG Corporate responsibility: http://www.epcos.com/web/generator/Web/Sections/InvestorRelations/CorporateResponsibility/O verview/Page,locale=en.html Global Compact: Global Compact January 2007 http://www.epcos.com/web/generator/Web/Sections/InvestorRelations/CorporateResponsibility/G lobalCompact/Page__Global_20Compact,templateId=render,locale=en.html Environmental protection: http://www.epcos.com/web/generator/Web/Sections/Environment/Page,locale=en.html Commitment to sustainability: http://www.epcos.com/web/generator/Web/Sections/InvestorRelations/CorporateResponsibility/R esponsibility/Page,locale=en.html Environmental management: http://www.epcos.com/web/generator/Web/Sections/Environment/EManagement/Page,locale=en. html Environmental report: http://www.epcos.com/web/generator/Web/Sections/Environment/FactSheet/Page,locale=en.html RoHS Directive of the European Union: www.epcos.com/rohs China RoHS: www.epcos.com/china_rohs Global Compact January 2007