SuStainabiLityrEPortGrowing together.

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Sustainable Development

The crucial Issues

Carbon Management at PE

It’s all about People

Get back to us

Business Transformation

The Sustainability Strategy

The PE Solution Portfolio

report’s scope and purposethisinitialSDreportprovidesanoverviewofPEintErnationaLGroupincludingitsmajoritycontrolledworldwideofficesfortheyear1Januaryto31December2009.itdoessoonasummarybasisandispublishedsep-aratelyofourFinancialStatements.Com-parabilityislimitedduetothediversityoftheservicesector.

ongo

Welcome to SuStainabLEGrowtH

Sustainabilityisseenasanoverarchingmega-trend,encompassingmanyissuessuchascarbon,water,socialgood,anddevelopingeconomies.asweallhadtolearnduringtheyears2008and2009,non-transparentbusinessactivityisalsoun-sustainableandthreatensthewholeworld’seconomy.

PEintErnationaLisacatalystandenablerofholisticimprovementsinsustainabilityperform-ance–evensustainablebusinesstransformation.beingproudoftheleadingroleandpositionwehaveinthismarket,thisreportpresentssomeexamplesofthepositiveimpactsourprojectsandsolutionshavehadforourclients.

butwhataboutourselves?beingtheavant-gardeinsustainability,andbeingmadeupofpeoplewhoarekeentoadvancesustainabilitywithinPEitself,howdoweperformandhowdoweimprovesustainabilityinourownorganization?

webelievethatourclientsandprospectiveclients,oursuppliersandourpartners,shouldknowaboutwhattargetswesetourselvesandhowweperforminwhatwethinkarethemostsignificantaspectsofsustainablepractice.

in2009,weworkedintensivelyondefiningthecorevaluesandprincipleswhichcapturethespiritandenergyofPE.Everyonewhoentersourofficesfeelsthatthereissomethingspecialhere.itwasbothdemandingandenjoyableworktocomeupwiththosewordswhichtrulyreflectourvaluesandcanbesubscribedtobyallPEstaff,nomatterwheretheyare.

oneofourcorevalues,ofcourse,issustainabilityitselfandalogicaloutcomeofthisisthereportinfrontofyou.Sustainabilityasacorevaluesignifi-cantlyimpactsleadershipandmanagementprinciplesinanorganization.itmeansfullylever-agingemployees’potentialsuchastheircreativity,engagementandinnovativecapacity.itdriveshighperformanceinourorganization.Ethicsandsuccessgohandinhand.

wearedelightedtoalsoreportthatoutcomesfromourprojectsoutweigh–throughtheirpositiveimpact–thecarbonfootprintofourorganizationbyconsiderableordersofmagni-tude,asyouwillreadinthefollowingpages.

althoughweare100%carbonneutralbyoff-settingouremissions,webelievethisisfarfrombeingsufficient:weapproachourclientswiththestrategy“reduce,replaceandoffset”.inthespiritofthis,wehaveincreasedtheuseofgreenelectricityatourofficesandourhostingservicesandhavesetdownadditionalgoalsfordirectreductionofourenvironmentalimpact.

inclosingiwouldliketoreiteratethepurposeofthisreport.throughit,weatPEwanttocommenceasuperior,moretransparentlevelofengagementwithourstakeholdersthatwillinturn,allowustoaddgreatervaluetoourclient’sbusinessesaswellasourown.

wewelcomeyourfullandfrankfeedback!

Michael Betz CEo·PEintErnationaL

sustainability at pe

» We encourage the adoption of sustainable practices in business. We lead by example by practicing sustainability as individuals and as a company. We strive to incite a ripple effect creating an impact much larger than what we are capable of alone. We also encourage a healthy balance between all aspects of our lives for our sustainable happiness.

PE Constitution, 2009

Dearreader!

Business transformation.

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06Business Transformation

0506The Sustainability Strategy

The PE Solution Portfolio

Business Transformation. The Sustainability Strategy.Business Transformation. The Sustainability Strategy.

pe international at a glance

PEistheleadingglobalsustainabilityservicesproviderfocusingonstrategicconsultancyandintegratedsoftwaresolutions.theGrouporiginatedover20yearsagofromaspinoffoftheuniversityStuttgart.ourtechnicalbase,whichisbuiltonLifeCycleassessment(LCa)andsustainabilitymanagementsolutions,todayishometothelargestgroupofseniorLCaexpertsintheworld.wehavedevelopeduniqueexperienceandexpertiseonsustainabilityissuesinawiderangeofindustries.

wepresentlyemploymorethan130permanentand25contractstaff,manyofwhomhavebeenworkingforPEsinceitsinception.incombinationwithourglobalreach–wehaveofficesthroughoutEuropeandinnorthamerica,australia,newZealand,Malaysia,China,india,Southafrica,brazilandJapan–PEoffersin-depthtechnicalexpertiseinmanymarketsectorswithanunder-standingoflocalissuesandconcernsaffectingourclientsindifferentpartsoftheworld.thislocalexpertiseanddirectcontactcanbesupplementedbyworldclassspecialistexpertisefromanyofourglobaloffices.

ourclientbasecomprisesbusinessesandinstitutesfromawiderangeofmarketsectorsincluding:construction,automotive,agriculture,consumergoods,electronics,foodanddrink,chemicals,primarymaterialproducers(metals,plastics,etc.),tradeassociations,governmentbodies,

bankingandinsurance,amongothers.wedeveloplongtermrelationshipswithourclientsandactivelyparticipateinstandardizationbodiesandotherinfluentialorgan-izations(e.g.SEtaC,CarbonCouncil,etc.)tohelpshapetheagenda.

PEintErnationaLhasasatisfiedclientcommunityinover70countriesandmorethan1,000multinationalcompaniesuseourservicesandsoftwaresolutions.Manyoftheseareleadingcompaniesdrivingthesustain-abilityagendaintheirsectors.

wehavegainedouruniqueexperiencefrommorethan4,000projectscoveringfieldssuchasGHGemissioninventorystudies,carbonfootprintanalysis,lifecycleassessment,environmentalandsustainabilitymanage-ment,auditingandreporting.withourlargeclientbasewearethemarketleaderinproductsustainabilityandenterprisecarbonaccountingsolutionsandvalueaddedservices.

our corporate sustainability strategy and mission

webelievethatsustainabilityisnotashort-livedtrend.Sustainabilitywillbeacornerstoneoffuturecompetitive-nessofbusinesses,andthekeyfortheirlong-termsuccessinthemarketplace.wearealsoconvincedthatsocialandenvironmentalresponsibilityisamissionthatcannotbeaccomplishedbyaddingend-of-pipesolutionstoexistingprocesses.

businessneedsastrategicapproachtosustainability,andtointegratesustainabilityintocorebusinessareas.Products,processesandbusinessactivities–allhavetofulfillsustainabilityrequirementsandprinciples.intheend,thismeansnotonlyachangeinthewaywethinkaboutbusiness,butalsoatransformationofexistingbusinessmodels.

PEintErnationaL’sowncorporatesustainabilitystrategyisbuiltaroundourmissiontohelpclientsunderstandtheimpactofclimatechangeandsustainabilityontheirbusiness,guidetheminimprovingexistingprocessesandhelptheminnovate.wewanttoprovideourclientswiththetoolsandservicesforcreatingnewproducts,businessmodelsandprocessesandempowerthemtotransformtheirbusinesstobesuccessfulandcompetitiveinthelongrun.

Germany

EMEA (excl. GER)

Americas

APAC

Revenue share by region in 2009

33 %29 %

24 % 14 %

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the focus areas1 Sustainable Development at PE. We are ensuring

sustainable development of our company and in the way we work by empowering our employees, managing our organizational environmental footprint and the footprint of our products and services, as well as communicating progress and challenges transparently internally and externally.

2 Business Transformation. We are enabling business to transform their own organizations through the delivery of innovative products and services, and by facilitating the exchange of knowledge between organizations, and the implementation of best practices.

3 Stakeholder Engagement. We know that we can only drive transformation through the engagement of our stakeholders. Therefore, we take an active role in the development of sustainability standards and frameworks, and are involved in leading innovative organizations and industry associations around the world.

AMERICASStaff # 12

PE AMERICASBoston, San Francisco (since 2006)

GERMANYStaff # 60

PE INTERNATIONALStuttgart (since 1991)

EMEAexkl. Germany

Staff # 11

PE Central & Eastern EuropeVienna (since 2006)

PE North West Europe Manchester, Copenhagen (since 2008)

PE Office TurkeyIstanbul (since 2009)

PE INTERNATIONAL (South Africa)Johannesburg (since 2009)

APACStaff # 12

PE Australia/AustralasiaPerth, AUS/Wellington, NZ(since 2006/2009)

PE AsiaTokyo (since 2007)

PE INTERNATIONAL (Malaysia) Petaling Jaya (since 2008)

PE Sustainable Solutions IndiaBhilai (since 2009)

PE Office ChinaNingbo (since 2008)

Ningbo (since 2008)

PE Subsidiaries & Offi ces

Software Sales Partners

Business Transformation. The PE Solution Portfolio.Business Transformation. The PE Solution Portfolio.

our business approach

Sustainabilityisaboutbalanceandaboutholistic,long-termsolutions.PEhasneverbeenabelieverinshort-termsustainabilityfadsorpusheditscustomerstowardsthem.ratherwehavebuiltonourcorecompetenciesintheareasofProductandCorporateSustainabilityandintegratedsoftwaresolutions,andsupportedthiswithvalueaddedservicesforourcustomers.

wehavebuiltsubstantialrelationshipswithourcustomersthatempowerthemtomakeinformedchoicesforbetterenvironmental,socialandeconomicoutcomesforthelongterm.

wehaveanoutstandingtrackrecordandreputation,enrichedbyourglobalnetworkofspecialistswithextensiveexperienceofindustrysectorsasdiverseasautomotive,building&Construction,FinancialServices,variousmanufacturingsectorsandMining&Metals.

ourspecialistcapacityallowsustounderstandtheindustry-specifictechnicalandsocialcontext,andmatchthemwiththebestsustainabilitypracticesfromaroundtheworld.thisiscomplementedbyourlocalmarketexpert-isethatcanintegratelocalrequirementsandregulationsintotheproposedsolutionswhileprovidingonthegroundface-to-facesupport.

towards a scalable platform

thePEsolutionportfoliotodayencompassessoftwareproducts,consultingservicesandsustainabilitydata-bases.inourdailyworkwithbusinesseswhoareseekingsolutionsforproductandcorporatesustainabilitychallenges,weareseeingthefollowingdevelopments:

1 Products and services are having to address the full scope of sustainability including environ mental, social and economic aspects;

2 Software solutions needing to support both management of operational and product sustain ability aspects.

inaddition,weseeaclearmarketneedforcomprehensivesolutionstocustomerproblemswhichincludesoft-ware,consultingservicesinthesustainabilitydomainandcontent.Sustainablebusinessmanagementneedsascalableplatform.

one-stop shop for enterprise sustainability

ourSustainabilityconsultantsbringhighlevelsofex-pertiseandconsiderableexperiencetotheirworkonSustainabilityStrategies,ManagementSystems,Eco-Design,LifeCycleassessment,Carbon&waterfoot-prints,training,workshopsandStakeholderengagement.todayPE’sconsultingdominatesthemarketforprod-uctsustainability,i.e.LCa,EPDandPCFservices.

throughcontinuedre-investmentinourcoresolutionportfolio,andtheexpansionofcomplementaryvalue-addedserviceswewillcontinuetoleadthefieldassmallernew-comersandlargersystemsintegratorsenterthemarket.asamarketleaderinenterprisecarbonaccounting,weareinauniquepositiontocontinueourfocusonenviron-mentalandsocialindicators.alreadyourcapabilitiesincludetoxicity,ozonedepletionpotential,socialaspects,waterandlanduse,andrecyclability.

This platform interfaces with existing legacy systems, allows partners to develop add-on applications for specific sectors and use cases, and is a central in-formation exchange for all stakeholders within and outside the organization. With our platform partners we provide services that we can’t even imagine today! thOMaS ODeNWalD, ctO Pe iNteRNatiONal

»Our goal is to provide a platform

for business trans formation that

enables customers to innovate on the

operati0nal and product level.

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the business value of pe solutions

Muchofourworkwithclientsisfocussedonhelpingthemacquireobjective,qualitydataonwhichtobasesounddecision-making.Forexample,baosteelGroupinChinahasbeenabletoselectthebesttechnologyoptionsforreducingenergyconsumptionandcostwiththehelpofPEintErnationaL’ssolution.thePEsolutionanalyzescurrentmetereddata,showspotentialsforeffi-ciencyimprovementsanddeliversbenchmarkswithbestavailabletechnologyoptionsfordecisionsupport.

usingsounddatatoinformdecision-makingforbetterenvironmentaloutcomesoftenleadstoimprovementofexistingsystemsandpracticesinawaythatyieldsimprovedresourceefficienciesandreducedcosts.ourworkwithGermany’sDekabankonimprovingitsiSo-certifiedenvironmentalmanagementsystemhasresultedinsub-stantialresourceefficiencyimprovementsandsavings.Forexample,papersavingsof207tonsperannumaloneamountedtoEuro170,000notincludingenergy,waterandotherresources.theefficiencygainsareexpectedtoincreaseaswemovefromthisfirstphaseoftheprojectandcontinuetoworkwiththebank.

thiscombinationofbusinessvalueandbeneficialen-vironmentaloutcomeisatthecoreofhowweworkjointlywithourclients.Forexample,ourworkwiththesportsapparelmanufacturerPuMasawususeLCascenariosasamajordecision-makingtoolindetermin-ingthemanufacturer’snewdirectionsinpackagingitsproducts.thisgavePuMatheabilitytorejectenviron-mentallylessdesirableoptionsatanearlystageofthedecisionmakingprocess.theywerethenabletore-ducethefootprintofthefinalproductanddevelopanewpackagingconcept–“theCleverLittlebag”.thisisexpectedtoincreasesalesthroughitsinnovativemarketingappeal,whileatthesametimeusing65%lessmaterialandgenerating66%(10,000tCo2)lessgreenhousegasemissionsinthemanufacturingprocess.

the core of our work in Product Sustainability is our GaBi Software and related sustainability databases, one of the strongest brands in the market and established in all industries. launched in 1989, today GaBi Software is the globally recognized solution for life cycle assessment, Product carbon Footprint, and Design for environment and Green Building. Supporting applications such as GaBi DfX, a tool for compliance and sustainable product development, and GaBi i-report, a desktop and web based solution for efficient and reliable internal and external communication of lca results, enable ‘what if’ questions to be answered as a support for decision making.

SoFi Software is the platform for our work in corporate Sustainability. launched in 2004, today SoFi Soft-ware is an all-in-one solution for Sustainability Management and Reporting Needs. the solution excels at the organization of large amounts of data for carbon & energy Management, environmental Management and Sustainability & Supply chain Management. With its modular approach, it is in the pole position in the fast growing eca markets and will be further extended through continuous development.

Sustainable Development.

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12Sustainable Development

0512The crucial Issues

Carbon Management at PE

It’s all about People

Get back to us

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governance, compliance and risk management

PEintErnationaLisownedbytwogroupsofshareholders.thefirstgroupisthePEManagement,ledbyManagingDirectorMichaelbetz.thesevenmembersofthisgrouphold84%ofthecompanyshares.theremaining16 %ofthesharesareheldbyformerPEemployeesorfriendsofthecompany.in2009,PEstartedanemployeeparticipationprogramme,transferringtherightto7 %oftheexistingsharestomorethan50 %ofcurrentPEemployeesworldwide.

PEintErnationaLisheadquarteredinStuttgart/Echter-dingenandhas14subsidiariesworldwide,whichareallmajority-ownedbyPE.thesubsidiariesarerunasstart-upcompaniesandareresponsibleforsales,recruitmentanddevelopingtheirlocalmarket,supportedbytheglobalPEexpertworkforce.

riskmanagementandcompliancearepartofourcurrentmanagementandstrategydevelopmentapproach.wearealsoinverycloseanddailyinteractionwithourmanagingdirectorsofthePEcompanies,peoplewhomwehaveknownthroughournetworkformanyyearsbeforetheyjoined.withthegrowthofPE,wewillfurtherdevelopourformalriskmanagementandcomplianceprocessesasnecessary.

Sustainable Development. thecrucialissues.

For all our colleagues at PE INTERNATIONAL – globally and across all cultural differences. The guiding coalition represents all the employee stake holders of PE, encourages buy-in, and promotes integration and communication of all stakeholders. Facilitating and building teams and initiating change projects will be our next major tasks along our path to change. cOPPelia MaRiNcOvic, Pe aMeRicaS, cONSultaNt aND StakehOlDeR RePReSeNtative iN the GuiDiNG cOalitiON

»The main purpose for our work in the guiding coalition was and is

to create and preserve a common understanding of our values.

The DNA of PE INTERNATIONAL

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what is material to our business?

inthisfirstreport,wehavedecidedtofocusonthesustainabilityaspectsthatarethemostmaterialtoourbusinessandhavethegreatestimpact.inassessingwhatismostimportanttothesustainabilityofourorg-anizationweconsideredtwoviewpoints:ourseniormanagementassessmentofbusinessrelevance,andourstakeholders’assessment.

inthisfirststep,thestakeholderviewpointwasprovidedbythePE‘guidingcoalition’(seesection“it’sallaboutPeople”),whichinvolvesallemployees.inthefuture,weplantoopenupthisprocessforbroaderstakeholderdialogueandincludeourclients,investors,suppliersandbusinesspartnersinastructuredapproach.

baseduponthisbroaderinput,weplantorefineourunderstanding,andreportbackintheformofamorestructured‘materialitymatrix’inforthcomingreports.

social issuesinrelationtothesocialdimensionofsustainability,bothPEseniormanagementandthe‘guidingcoalition’seethesustainabledevelopmentofourhumancapitalasthemostpertinentsustainabilityaspect.

asPEcurrentlyoperatesmainlyinindustrializedcountriesandhasaverylimitedsupplychain,issuessuchaschildlabourandworksafetyareseenaslessmaterial.Clientsatisfactionisseenasaveryimportantissue,anditisaddressedinthestakeholderengagementsectionofthisreport.Corruptionmaybecomeanissuewithfutureglobalgrowth.

environmental and economic dimensions

withregardstoPE’senvironmentalfootprint,usingcur-rentdefinitionsandapplyingsectorstandardsforadministrativeunitsclearlyshowsthatthemostimpor-tantissuescanbereducedtoasmallnumberoftopics.basedonourexpertiseintheLifeCycleapproachtoSus-tainability,weareconfidentthatthetypicalareasofconcernsuchaspaperuse,wateruseandwastegener-ationareeclipsedbyotherconcernsthatimpacttheenvironmentmoreprofoundly.

theseareasincludestationaryenergyusewithinouroffices,businesstravel,commutingandleasingofitequipment,andweintendtofocusontheseaspectstoreducetheorganizationalfootprint.inordertomeasuretheseaspectsinonedimension,wehavere-presentedtheirimpactintermsofGHGemissions,wheretheyaccountformorethan93%ofPE’soverallScope1-3footprint.

basedonthePEbusinessmodel,helpingourbroadclientbasetoimprovetheirsustainabilityperformance,itisclearthatourproductsandservicesaddressclimatechangeindimensionswayaboveourownfootprint.

today,wearedirectlyinvolvedinCDMprojectsthatwillreducetheglobalGHGemissionsbymorethan1,000,000tCo2eperyear,whichismorethan2,000timesourownfootprint.theseprojectshaveadditionalpositiveeffectsforthelocalpopulationinthesocialandeconomicdimension.withourservicesandsolutions,wearehelpingclientstomanagetheGHGemissionsofmorethan50%ofthewordwidesteelproduction,ordesignhundredsofmillionsofcarsthatareinusetoday(morethanamilliontimesthesizeofourownfootprint).weunderstandtheimportanceofmanagingourownfootprint,butwillputmoreemphasisonmeasuringtheimpactofoursolutionsandservicesinthefutureaswell.

intermsofeconomicsustainability,webelievethatourstronggrowthisthekeyareaoffocus.weoperateinafastgrowingmarket,wherestaticorganizationsarelosingmarketshareandarequicklymarginalized.SecuringourfuturethroughprofitabilityandahealthyfinancialbasisareotherimportantaimsinordertoensurePE’scurrentandfuturegrowthpathforthelongterm.

Sustainable Development. CarbonManagementatPE.

our corporate footprint

PEintErnationaLhasbeentrackingandevaluatingitscarbonfootprintsince2004.For2009,weadoptedthemethodologyusedinthedraftGreenhouseGasProtocolScope3Standard.Scope1and2emissionsamountto63 tCo2e.Scope3emissionsamountto426 tCo2e,or87%ofthetotalcarbonfootprintof489 tCo2e.businesstravelandcommutingarethebiggestcontributorstoScope3emissions.

regardingthestrategiccontextweconsiderourselvesleadersintheprovisionofsoftware,databasesandconsultingforcarbonaccountingandmanagement.ouroriginsareinLifeCycleassessment(LCa)andcarbonaccountingisanintegralpartofLCaandhenceacorecompetencyofPEfor20years.

atPEweareengagedinanumberofinitiativesaimedatsettingandfurtherdevelopingstandardsintheareasofcarbonaccountingandreporting,bothforproductandcorporateapplications.SeniorstaffareinvolvedinthedevelopmentofthetwonewstandardsintheGreen-houseGasProtocolinitiative.wewerethefirstcarboncalculationpartnerintheCarbonDisclosureProject(CDP),havinghadoursoftwareindependentlycertifiedtoconformtothecorporatereportingrequirementsoftheCDP.asa‘goldpartner’,weareproudtobeengagedinthedevelopmentoffutureCDPreportingrequirements.apartfromtheaboveactivities,weareactiveinanumberofothercarbonaccountingandreportinginitiativesandprogramsonaregionaland/orcountrylevel.

PEintErnationaLhasbeencarbonneutralsince2006.thishasbeenachievedbyapplyingthesustainabilityprinciplesofavoidanceandreductionpriortooffsettinganyremainingemissionswithhighqualitycertificates.thisapproachisalsoconformtotheprinciplesofthenewcarbonneutralitystandardPaS2060.wearestronglymotivatedtofurtherimproveourownperformance.

key drivers for our carbon efforts

carbon initiatives

thelatestcarbonfigureshavebeenpreparedinconfor-mancewiththenew(draft)Scope3StandardandarethereforenotdirectlycomparablewithpreviousGHGemissionprofiles.PEiscurrentlyworkingonharmo-nizingthedifferentfinancialyears,developingkeyper-formanceindicatorsandsettingnewreductiontargets.

ourcarbonfootprintisbeinganalyzed,reportedandmonitoredthroughourownsustainabilitysoftwareSoFi.ourmostrecentresultsandthewaywehaveimplementedourcarbonreportingandmanagementsystemwillbeshowcasedinaninteractivedisplayonourwebpage.

thecarbonfootprintsofindividualPEofficesarebeinginternallybenchmarkedtostimulatereductioninitiativesandshareideasonoptionsforimprovement

inselectingnewPEoffices,sustainabilitycriteriaarebeingconsideredincludinglocation(e.g.,accesstopublictransport),construction,maintenanceandoperation.GHGminimizationisoneofthekeycriteria.

Mostofthevalueofourproductsandservicesisgeneratedfromwithinourownorganization.However,wedohaveanumberofsuppliersfromwhowepurchase–pre-dominantlyequipmentandservices.inthefuture,wewillengagewithallkeysuppliersintermsoftheirGHGperformance.wehaveinplaceapurchasingpolicythatconsidersthecarbonfootprintofproductsandservicesonabroadscale.wearecurrentlyworkingonamoreformalpolicyofincorporatingtheGHGperformanceofsuppliersandtheirproductsintoourpurchasingdecisions.

a cOMMitMeNt toadheretothesustainabilityprincipleofintergenerationalequity.

a DeSi Re tobeattheforefrontofcarbonreductionandprovidearolemodeltoclientsandpeers.

a DeteRMi NatiON tomeettheexpectationsofourownpeopleandcontinuetoattracttalentintothefuture.

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PEalsohasapolicyofcontinuallyincreasingthepropor-tionofrenewableenergyused.inourheadquarters,morethan50%oftheelectricitypurchasedis–guaranteedviacontract–alreadygeneratedfromrenewableresources.tospeeduptheprocesswehavenowcommittedour-selvestorunningallofourofficesgloballywithmorethan3staffon100%renewableelectricitybytheendof2011.

Mindfulthatinternationaltravelconstitutes90%ofourbusinesstravelemissions,PEhasoverthepastfiveyearsincreasinglysubstitutedface-to-facemeetings(bothbetweensubsidiariesandwithclients)withnetmeetingsandwebinars,makinguseofhundredsofhoursofvirtualmeetingsamonthtocontrolemissions.itisPEpolicytousetheseformsofelectroniccommunicationwhereverandwheneverpossibleifitdoesnotimpactonbusinessperformanceforourclients.PEisservingclientsbasedinover70countriesworldwide.inordertoprovidelocalsupport,localcontextandlocalunderstanding,PEhasastrategyofimplementinglocalnetworksandsubsidiarieswhereverpossible.thiswillreducetheneedforlongdistancetravelfromourheadquartersinthelongerterm

Emissionsfromemployeecommutingarebeingcon-trolledthroughacombinationofongoingpersonalcommitmentofindividualsatPEbywalkingorusingpublictransport,theactualaccountingofemissionswithassociatedraisedawareness,andotherongoinginitiativessuchasofficelocationsadjacenttopublictransportandtheprovisionofpushbikestandsatadedicatedsecurelocationatourheadoffice.

future targetsourextendedcorporatecarbonfootprint(incl.SCoPE3)isrelativelysmallwhencomparedtoothersforofficebasedconsultancycompanies,bothonaFtEandaperturnoverbasis(4.9t /FtE;54kg/e 1,000).thismeansthatitwillbemoredifficulttoachievesignificantandconstantemissionreductionsoverthecomingyears.inaddition,weseethatwithourdynamicbusinessgrowthandtheincreasinglyglobalbuild-upofcapacityanddeliveryofservicestheneedforbusinesstravelmayfurtherincrease.nevertheless,weremaincommittedtostriveforanother15 %reductioninoverallemissionsperemployeeoverthenextfiveyears.

witheveryprojectweundertakeandeverysolutionweimplementforourclients,wecontributetoareductioninGHGemissionswherepossiblewithoutcompromisingotherenvironmentalimpactcategories.ourworkleadstoareductionincarbonemissionsthatismanyordersofmagnitudegreaterthanourownemissions.anotherofouraimsistomakethesebenefitsmoremeasurable,bothforourselvesandforourclients.

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teamwork, passion, and empowerment

atPE,asforanyconsultancy,ourpeoplearethecorner-stoneofoursuccess.thisisparticularlyvalidinphasesofstronggrowthsuchastheonewehaveexperiencedoverthelasttenyears.weempowerpeopletoinnovate,tobeflexibleandcreativeineveryrespect.inreturn,weofferorganizationalflexibilityandalimitedbureaucracy.thisapproachhasitsrootsinouruniversity-basedoriginsandthelargepersonalshareholdingthefoundershaveretainedinthebusinessandwhichhasshapedourculture.

respectforeachotherhasalwaysbeenanimportantpartofthisculture.Despitethesustainedorganizationalgrowthoverthepastyears,ourrelianceonflexibleworkinghours,individualizedout-ofofficeworkingarrangements,andinnovativeusesoftechnologygiveustheabilitytoprovideacreativeandproductiveenviron-mentfromwhichourcustomersandemployeesbenefit.ourlowstaffturnoverratesaretestamenttoanapproachtohumancapitalthatworks.

afteritsinitialspinofffromtheuniversityStuttgart,PEwasanemployee-ownedbusinesswhichgreworganicallyinordertobuilditshumanandintellectualcapital.Partofourrecruitmentstrategyhasalwaysbeenaheavyrelianceonuniversitystudentswho,empoweredthroughtheirpracticalexperienceatPE,oftentendtojoinusasmoreexperiencedstaff.PEtodayemploysmorethan130permanentand25contractorstafffrom27nationalitiesin14countries.

thisinternalsuccessisreflectedinourglobalgrowth.EvenattheGermanheadquarters,EnglishisPE’sbusinesslanguage.Despitethechallengesthatcombiningmembersofdifferentculturalandprofessionalbackgroundsdoespose,weareseeingthedevelopmentofcommonvalues.thisallowsusto‘thinkglobalandactlocal‘aswedeployevermorediversesetsofskillsandexperiencetothechallengesourclientsface.tocontinuesuccessfullyalongthispathwaywhilecontinuingtointegratenewstafffromdifferentregionsandculturesintothePEintErnationaLfamily,wehaveadoptedaConstitutionwhichenshrinesthecorevaluesandprinciplestowhichourstaffcommit.

These values are Open Communication, Transparency, Respect, Fairness, Sustainability, Continuous Develop ment, Creativity & Innovation, Integrity, Teamwork, Passion, Empowerment, Honesty, Diversity, and Account ability.

SupportingthisConstitutionisaChangeManifestowhichsetsoutwhyeachvalueisimportanttoPEandtheproposedactionstoimproveourperformanceineacharea.the‘guidingcoalition’,ateamofrepresentativesofallidentifiedPEstakeholdergroupsfacilitatestheseprocessesandworksasacontactpointforissuesassociatedwithprotectingourcultureandimplementingourvaluesandprinciplesindaytodaywork.

Sustainable Development. it’sallaboutPeople.

The flexible part-time engagement with PE enables my wife and me to stay fully integrated in working life and spend as much time as possible with our kids. Our current model allows working at flexible hours at different locations and I am thank ful that PE offers this opportunity, to the benefit of both sides. aleXaNDeR StOFFReGeN, SeNiOR cONSultaNt, Pe iNteRNatiONal

»Today, it is still a challenge to combine

two jobs with having a family.

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92Employees (FTE) 2005-2009

PE INTERNATIONAL Germany

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stakeholder engagement

webelieveinthedevelopmentoflong-term,mutuallybeneficialpartnershipsandextendthistoallourstake-holders.themostimportantstakeholdergroupsareourglobalcustomers,ouremployees,ourbusinessandtechnologypartnersaswellasoursuppliers.Forallgroups,wehaveestablishedcommunicationschannelsandthisreportisdesignedtofurtherinvolveourclients,partnersandsuppliersintheassessmentofimportantsustainabilityfociinthefuture.

ManyofourclientshavebeenputtingtheirtrustinPEformorethan10yearsnow,contributingtonewproductdevelopmentsandengagingwithPEonavarietyofsustainabilityprojectstoaddresstheirchangingbusinesschallenges.CustomersatisfactiontakeshighestpriorityatPEandourgoalistodemonstratereliability,trans-parencyandresponsivenessineachandeveryclientengagement.wehaveinitiatedacustomersatisfactionsurveytofurtherimprovecommunication.

weareworkingwithbusinessandtechnologypartnerswhoshareourvalues.anexampleisourpartnershipwiththeManagementConsultingfirmFive Winds Inter­nationalsince1998,whichledtotheformationoftheJointVenturePEamericasin2006.wearealsodevelopingapartnershipwithTATA Consultancy ServiceswhohastakenaleadingroleintheTATA Grouptonotonlymakeenvironmentalstewardshipapriorityfortheirbusinessbutalsoextendsupporttoclientsandthecommunityatlarge.

whilePEasaserviceproviderisnotaconsumeroflargequantitiesofphysicalproducts,weneverthelesshavesoughttoengagewithkeysupplierstoensurethatwelightenourownfootprint.wecurrentlyhaveasustainablepurchasingpolicyinplacethatconsidersenvironmentalfootprintofproductsandservices.weareworkingonamoreformalassessment,whichincludesbroadsustain-abilitycriteriaintoourpurchasingdecisions.weexpecttoreportbackonthequantitativeimpactsofthisinthenextreportingcycle.

baseduponouracademicoriginsandouruniquetrackrecordincarbonfootprintdevelopmentandsustainabilitymethodologieswearerepresentedonallleadingindustryandpublicbodiesconcernedwiththestandardizationofcarbonfootprintcalculationandsustainabilitystandards.

n weareanactivememberoftheLCaadvisoryGroupSteeringCommitteeofSEtaC.KeytotheLCaadvisoryGroupSteeringCommittee’sactivitiesisthepromotionoftheSEtaC-unEPLife-cycleinitiative

n wehavebeencontributingtotheiSo14000standardfamilyandarecurrentlyinvolvedintheiSo14064standarddefinitionprocessthroughourofficialmandatefromunEPSEtaC.

n PEisafoundingmemberofDGnbandtodaywearerepresentedasmemberoftheboardandExecutiveDirectorofDGnb.PEparticipatesintheworldGbCboardofdirectorssinceSeptember2010.

additionally,wepartnerwithindustryassociationssuchasworldsteel,PlasticsEurope,Eurofer,uitPandGlassPackaginginstituteaswellasinternationalorganizationsincludingunGlobalCompact,waterFootprintnetwork,worldresourceinstitute,Globalreportinginitiative,CarbonDisclosureProject,Zerowinandmanyothers.

And are delighted that our development work and hosting services contribute to the reduction of the environmental and social impacts of the many organizations using the SoFi Software Solution. Regarding our own footprint, we established a green IT policy 3 years ago, and we use renewable electricity to power our own office and IT infrastructure. Our supplier for hosting services, Hetzner Online, has been exclusively using renewable energy sources to power the servers in its data centers since 1st January 2008. OliveR MülleR, ceO teQNeeRS

»We have been developing

software solutions together with

PE INTERNATIONAL for 8 years now.

Pe iNteRNatiONal Getbacktous.

giving back

20yearsago,fewwerethinkingaboutsustainabilityandPEintErnationaLwasoneofthefirstconsultingandsoftwarecompanieswhosesolutionsdeliverpositiveen-vironmentalandsocialoutcomes.nevertheless,weremainconsciousoftheneedtomakeourown,directpositivecontributions.recognizingthatcombatingclimatechangerequiresabroadbasedresponseweseektobuildcapacityamongpractitioners.Sincelate2008wehavedistributedover2,800freecopiesofourGabiEducationSoftwaretoeducationalinstitutionsandnon-profitorganizationsinordertoallowthemtoen-gageontheissueofcarbonemissionsaccountingandreductions.

PEsupportsanumberofprojectsandactivitiesthroughaidorganizationsaroundtheworld.Forexample,wesponsor12childrenthroughChildFundGermany,whichsupportslocallyledinitiativesthatstrengthenfamiliesandcommunities,helpingthemtoovercomepoverty.www.ccf­kinderhilfswerk.de

inlieuofourannualprintedChristmasletter,wearechoosingtosendourgreetingsbyemail.thisreducescostsandpreservesresourcesenablingustodonatetotheaidorganization“breadfortheworld”whichsupportspeopleinSouthernbangladeshwhoareseverelyaffect-edbytherisingnumberofstormsandfloodinginthisregionduetoclimatechange. www.bread.org

Finally,wehavecontractedthetaskofcollating,folding,enveloping,andlabellingourmailingstotheStuttgartCentreforthePhysicallyDisabled(bhz),whichemploys300peoplewithvariousdisabilities. www.bhz.de

We believe that for these topics, we are on a sustainable path. Our ‘guiding coalition’ represents an innovative and empowering management approach; we have a clear carbon neutral strategy since 2006 and aim at further reducing our footprint per employee by 15 % over the next five years; and our recent customer satisfaction survey shows that 98 % of our clients would recommend our services. Going forward, we will broaden our stakeholder engagement with clients, partners, suppliers, and investors. And we will commit to a more detailed sustainability action plan. This report is made for you as our stakeholders. Help us make it address your information need even better! DR. ROBeRt GaBRiel, DiRectOR cORPORate SuStaiNaBilitY, Pe iNteRNatiONal

We look forward to receiving your feedback: r.gabriel@pe-international.com

»In our first sustainability report, we have intentionally focused on the most significant sustainability impacts.

glossaryEuro Asia Pacific (East Asia, Southeast Asia, Oceania)Behindertenzentrum Stuttgart e.V (Stuttgart Centre for the Physically Disabled)British Standards InstitutionCorporate Carbon FootprintClean Development MechanismCarbon Disclosure ProjectChief Executive OfficerCarbon dioxideCarbon dioxide equivalentCorporate Social ResponsibilityChief Technology Officer Deutsche Gesellschaft für Nachhaltiges Bauen e. V. (German Sustainable Building Council)Eastern Europe and Central AsiaEurope, Middle East, AfricaEnvironmental Product DeclarationEuropean UnionForest Stewardship CouncilFull-time equivalentGreenhouse gasGlobal Reporting InitiativeInternational Organization for StandardizationInformation TechnologyKilogramLife Cycle Assessment Managing DirectorPublicly Available SpecificationProduct Carbon FootprintPE INTERNATIONALGHG emissions from sources that are owned or controlled by the companyGHG emissions from the generation of purchased electricityIndirect GHG emissions from sources not owned or controlled by the companySustainable Development ReportSociety of Environmental Toxicology and ChemistrytonInternational Organization of Public TransportUnited Nations Environment ProgrammeUnited States of AmericaWorld Green Building CouncilWorld Resources Institute

glossary

€

APAC bhz

BSI CCF

CDM CDPCEOCO2

CO2eCSRCTO

DGNB

ECAEMEA

EPDEU

FSC FTE

GHGGRIISO

ITkg

LCA MDPASPCF

PEScope 1

Scope 2

Scope 3

SD ReportSETAC

tUITP

UNEPUS

WorldGBCWRIFSC certified paper (www.fsc.org)

Phone: +49[0]711341817-0Fax: +49[0]711341817-25

info@pe-international.comwww.pe-international.com

PE INTERNATIONAL GMBH

Hauptstraße111-11370771Leinfelden-EchterdingenGermany

www.dartw

ork.de

Information in brief Further Information

Strategy and Analysis

1.1 CEO statement See front page

Organizational Profile

2.1 Name of the organisation PE INTERNATIONAL Group

2.2 Primary brands, products, and/or services Sustainability consulting services, GaBi Software, SoFi Software

See p. 8/9

2.3 Operational structure of the organization CEO supported by Business Line Directors and Managing Directors of PE subsidiaries

See p. 12

2.4 Location of organization’s headquarters Leinfelden-Echterdingen, Germany

2.5 Countries of operation Headquarter/subsidiaries/offices in 13 countries

See p. 7

2.6 Nature of ownership and legal form GmbH and respective local legal forms at subsidiaries

2.7 Markets served World-wide operations in almost all sectors

See p. 6

2.8 Scale of the reporting organization SME, 130 employees See p. 6/7 and 16

2.9 Significant changes during the reporting period

7 % of shares transferred to employees See p. 12

2.10 Awards received in the reporting period None

Report Parameters

3.1 Reporting period 1 Jan – 31 Dec 2009

3.2 Date of most recent previous report First report

3.3 Reporting cycle Annually

3.4 Contact point Dr. Robert Gabriel See p. 18

3.5 Process for defining report content Senior management assessment of busi-ness relevance, stakeholders’ assessment

See p. 13

3.6 Boundary of the report PE INTERNATIONAL Group (PE INTERNATIONAL GmbH and majority controlled worldwide offices)

3.7 Specific limitations on the scope or boundary of the report

None

3.8 Basis for reporting on entities that can sig-nificantly affect comparability from period to period and/or between organizations

None

3.10 Re-statements of information provided in earlier reports

None (first report)

3.11 Significant changes from previous reporting periods

None (first report)

3.12 GRI content index Bookmark

Governance, Commitments and Engagement

4.1 Governance structure of the organization Partly N/A See p. 12

4.2 Is the Chair of the highest governance body also an executive officer?

N/A

4.3 Number of members of the highest gover-nance body that are independent and/or non-executive members

N/A

4.4 Shareholders’ and employees’ mechanisms to provide recommendations or direction to the highest governance body

Regular shareholder meetings, employees can approach management via the Guiding Coalition

See p. 12

4.14 List of stakeholder groups engaged by the organization

Employees, customers, partners, suppliers See p. 17

4.15 Identification and selection of stakeholders with whom to engage

Customer satisfaction survey, sustainable purchasing policy

See p. 17

Growing together. Sustainability Report ’09Profile

Indicators Information in brief Further Information

GRI UN GC* CDP Environmental

Energy

EN3 P8 12.3 Direct energy consumption by primary energy source

90 MWh (for all sources)

EN4 P8 13.6 Indirect energy consumption by primary energy source

251 MWh (for all sources)

Emissions, Effluents and Waste

EN16 P8 11, 12, 13 Total direct and indirect GHG emissions by weight

63 t CO2-e Break-down see p. 15

EN17 P8 15.1 Other relevant indirect GHG emissions by weight

426 t CO2-e Break-down see p. 15

EN18 P7, P8, P9 9.7 Initiatives to reduce GHG emissions/reductions achieved

First report Initiatives and future targets see p. 14/15

Compliance

EN28 3 Fines and number of sanctions for noncompliance with environ-mental laws and regulations

0 €, 0 cases

Labor Practices and decent Work

Employment

LA1 Total workforce 130 employees (92 FTE) Break-down see p. 16

LA2 P6 Employee turnover 1,6 %  Not broken down due to low value; see p. 16

Occupational Health and Safety

LA7 P1 Rates of injury, occupational diseases, lost days, and absenteism, and number of workrelated fatalities by region

1 accident

Training and Education

LA10 Training 21 hours per employee

Product Responsibility

Customer Privacy

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

0 complaints

Society

Public Policy

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

Memberships in standardization and sector organizations

For explanations and names of organizations see p. 17

Compliance

SO8 Fines and total number of sanctions for noncompliance with laws and regulations

0 €, 0 cases

Economic

Economic Performance

EC2 P7 Financial implications/risks and opportunities for activities due to climate change

Biggest driver for PE busines model. 7.735 € paid for CO2 certificates to achieve carbon neutral operations

Risks see p. 13/14 Opportunities see p. 8/9

Performance Indicators

* United Nations Global Compact