The latest reports of the Intergovernmental Panel on Climate Change (IPCC) have made it impossible to ignore that our climate is changing and we must explore all possibilities to mitigate global warming. Three principles of the UN Global Compact address environmental issues:

10 principles of the UN Global Compact

Principle 7:
Businesses should support a precautionary approach to environmental challenges;

Principle 8:
undertake initiatives to promote greater environmental responsibility; and

Principle 9:
encourage the development and diffusion of environmentally friendly technologies.

Progress
"As one of the world's largest lighting manufacturers, we recognize that an intelligent, conscientious approach to the environment is not just the right thing to do. It is the only thing to do."
OSRAM CEO Martin Goetzeler"

This statement sums up OSRAM's company philosophy. Concern for the environment is formally reflected in the Mission for our "Global Care" program. To ensure that this mission is implemented in all aspects of our business, we have established a sustainability council devoted specifically to this task and increased the allocation of manpower to our efforts towards creating an even more sustainable company.

Initiative
As an initiative to promote greater environmental responsibility, we are beginning to audit suppliers regarding their environmental performance. Last year, we introduced an Environmental, Health and Safety (EHS) Audit for our suppliers or subcontractors as a pilot in our plant in Penang, Malaysia. See the questionnaire. In keeping with our policy of a comprehensive approach to corporate responsibility, societal questions are also covered with this audit. If requirements are not met, suppliers are asked to improve the unsatisfactory conditions as a basis for continued business relations. So far six audits have been conducted, with 20 more to follow in 2007. We will expand this auditing process to other sites in the next few years.

Innovation
Innovative products are our major contribution to environmental protection. Here are some recent highlights: